Document and Entity Information
Document and Entity Information | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | REVLON CONSUMER PRODUCTS CORP | REVLON CONSUMER PRODUCTS CORP |
Entity Central Index Key | 890,547 | 890,547 |
Entity Filer Category | Non-accelerated Filer | Non-accelerated Filer |
Document Type | S4 | S4 |
Document Period End Date | Jun. 30, 2016 | Dec. 31, 2015 |
Document Fiscal Year Focus | 2,016 | 2,015 |
Document Fiscal Period Focus | Q2 | FY |
Amendment Flag | false | false |
CONSOLIDATED BALANCE SHEETS - 1
CONSOLIDATED BALANCE SHEETS - 10K - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | ||
Current assets: | ||||
Cash and cash equivalents | [1] | $ 326.9 | $ 275.3 | |
Trade receivables, less allowance for doubtful accounts of $10.5 and $9.3 as of December 31, 2015 and December 31, 2014, respectively | 244.9 | [1] | 238.9 | |
Inventories | 183.8 | [1] | 156.6 | |
Deferred income taxes - current | 58 | 58.4 | ||
Prepaid expenses and other | 53.3 | [1] | 44.6 | |
Receivable from Revlon, Inc. | 117.4 | [1] | 105.4 | |
Total current assets | 926.3 | [1] | 879.2 | |
Property, plant and equipment, net of accumulated depreciation of $271.7 and $250.5 as of December 31, 2015 and December 31, 2014, respectively | 215.3 | [1] | 212 | |
Deferred income taxes - noncurrent | 49.8 | [1] | 34.8 | |
Goodwill | 469.7 | [1] | 464.1 | |
Intangible assets, net of accumulated amortization of $61.1 and $39.3 as of December 31, 2015 and December 31, 2014, respectively | 318 | [1] | 327.8 | |
Other assets | 84.1 | [1] | 113.3 | |
Total assets | 2,063.2 | [1] | 2,031.2 | |
Current liabilities: | ||||
Short-term borrowings | 11.3 | [1] | 6.6 | |
Current portion of long-term debt | 30 | [1] | 31.5 | |
Accounts payable | 201.3 | [1] | 153.5 | |
Accrued expenses and other | 272.4 | [1] | 273.3 | |
Total current liabilities | 515 | [1] | 464.9 | |
Long-term debt | 1,783.7 | [1] | 1,832.4 | |
Long-term pension and other post-retirement plan liabilities | 185.3 | [1] | 200.9 | |
Other long-term liabilities | 70.8 | [1] | 90 | |
Stockholders' deficiency: | ||||
RCPC Preferred stock, par value $1.00 per share; 1,000 shares authorized; 546 shares issued as of December 31, 2015 and December 31, 2014, respectively | 54.6 | [1] | 54.6 | |
Common Stock, par value $1.00 per share; 10,000 shares authorized; 5,260 shares issued and outstanding as of December 31, 2015 and 2014 | 0 | [1] | 0 | |
Additional paid-in capital | 957.5 | 952.1 | ||
Accumulated deficit | (1,258.4) | [1] | (1,320.5) | |
Accumulated other comprehensive loss | (245.3) | [1] | (243.2) | |
Total stockholder's deficiency | (491.6) | [1] | (557) | |
Total liabilities and stockholder's deficiency | 2,063.2 | [1] | $ 2,031.2 | |
Previously Reported [Member] | ||||
Current assets: | ||||
Total current assets | 984.3 | |||
Deferred income taxes - noncurrent | 38.5 | |||
Other assets | 104.1 | |||
Total assets | 2,129.9 | |||
Current liabilities: | ||||
Long-term debt | 1,803.7 | |||
Other long-term liabilities | 117.5 | |||
Stockholders' deficiency: | ||||
Total liabilities and stockholder's deficiency | $ 2,129.9 | |||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
CONSOLIDATED BALANCE SHEETS - 3
CONSOLIDATED BALANCE SHEETS - 10K (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 08, 2013 |
Statement of Financial Position [Abstract] | ||||
Allowance for doubtful accounts on trade receivables | $ 10.7 | $ 10.5 | $ 9.3 | |
Accumulated depreciation on property, plant and equipment | 286.3 | 271.7 | 250.5 | |
Accumulated amortization on intangible assets | $ 72.8 | $ 61.1 | $ 39.3 | |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | $ 0.01 |
Preferred stock, shares authorized (shares) | 1,000 | 1,000 | 1,000 | |
Preferred stock, shares issued (shares) | 546 | 546 | 546 | |
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | |
Common stock, shares authorized (shares) | 10,000 | 10,000 | 10,000 | |
Common stock, shares issued (shares) | 5,260 | 5,260 | 5,260 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE (LOSS) INCOME - 10K - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||
Income Statement [Abstract] | ||||||||||||||||||||||
Net sales | $ 488.9 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 501 | $ 472.3 | $ 497.9 | $ 469.8 | $ 928.5 | $ 920.9 | $ 1,914.3 | $ 1,941 | $ 1,494.7 | ||||||||
Cost of sales | 171.5 | 161.3 | 325.4 | 303.6 | 667.8 | 668.3 | 545.1 | |||||||||||||||
Gross profit | 317.4 | 325.5 | 303.7 | 321.1 | 296.2 | 328 | 307.7 | 330.7 | 306.3 | 603.1 | 617.3 | 1,246.5 | 1,272.7 | 949.6 | ||||||||
Selling, general and administrative expenses | 256.8 | 256.9 | 502.6 | 503.8 | 993.5 | 999.7 | 723.6 | |||||||||||||||
Acquisition and integration costs | 5.5 | 4.7 | 6 | 5.9 | 8 | 6.4 | 25.4 | |||||||||||||||
Restructuring charges and other, net | 0.5 | (3.6) | 1.8 | (3.1) | 10.5 | 21.3 | 3.5 | |||||||||||||||
Goodwill impairment charge | 9.7 | 9.7 | 0 | 0 | ||||||||||||||||||
Operating income | 54.6 | 63.1 | 92.7 | 110.7 | 224.8 | 245.3 | 197.1 | |||||||||||||||
Other expenses, net: | ||||||||||||||||||||||
Interest expense | 20.9 | 20.5 | 41.9 | 40.5 | 83.3 | 84.4 | 78.6 | |||||||||||||||
Amortization of debt issuance costs | 1.4 | 1.4 | 2.9 | 2.8 | [1] | 5.7 | 5.5 | 3.5 | ||||||||||||||
Loss on early extinguishment of debt | 1.9 | 0 | 2 | 29.7 | ||||||||||||||||||
Foreign currency losses, net | 8.5 | (7.9) | 5.1 | 8 | 15.7 | 25 | 3.7 | |||||||||||||||
Miscellaneous, net | 0.2 | 0.2 | 0.5 | 0.2 | 0.4 | 1.2 | 1 | |||||||||||||||
Other expenses, net | 31 | 14.2 | 50.4 | 51.5 | 105.1 | 118.1 | 116.5 | |||||||||||||||
Income from continuing operations before income taxes | 23.6 | 48.9 | 42.3 | 59.2 | 119.7 | 127.2 | 80.6 | |||||||||||||||
Provision for income taxes | 11.8 | 21.4 | 17.9 | 31 | 54.4 | 81.2 | 48.6 | |||||||||||||||
Income from continuing operations, net of taxes | 11.8 | 27.7 | 9.4 | 27.5 | 0.7 | 4.1 | 15.8 | 15.9 | 10.2 | 24.4 | 28.2 | 65.3 | 46 | 32 | ||||||||
(Loss) income from discontinued operations, net of taxes | (2.5) | (1.4) | (1.7) | 0 | (0.1) | 0.4 | 0.4 | 3.7 | (3.2) | (2.1) | (0.1) | (3.2) | 1.3 | (30.4) | ||||||||
Net income | 9.3 | $ 26.3 | $ 7.7 | 27.5 | $ 0.6 | $ 4.5 | $ 16.2 | $ 19.6 | $ 7 | 22.3 | 28.1 | [1] | 62.1 | 47.3 | 1.6 | |||||||
Other comprehensive income (loss): | ||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | 2.6 | [2] | 0.8 | [2] | 5.3 | [2] | (12.6) | [2] | (18.1) | [3] | (24.6) | [3] | (4.1) | [3] | ||||||||
Amortization of pension related costs, net of tax | 2 | [4],[5] | 1.8 | [4],[5] | 3.8 | [4],[5] | 3.5 | [4],[5] | 7.2 | [6],[7] | 4.5 | [6],[7] | 7.7 | [6],[7] | ||||||||
Pension re-measurement, net of tax | [8] | (6.9) | (69.6) | 53.3 | ||||||||||||||||||
Pension settlement, net of tax | [9] | 17.3 | 0 | 0 | ||||||||||||||||||
Revaluation of derivative financial instruments, net of reclassifications into earnings | 0.2 | [10] | (0.1) | [10] | (0.7) | [10] | (2) | [10] | (1.6) | [11] | (3.7) | [11] | 1.5 | [11] | ||||||||
Other comprehensive (loss) income | 4.8 | 2.5 | 8.4 | [12] | (11.1) | (2.1) | [13] | (93.4) | [13] | 58.4 | ||||||||||||
Total comprehensive income (loss) | $ 14.1 | $ 30 | $ 30.7 | $ 17 | $ 60 | $ (46.1) | $ 60 | |||||||||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. | |||||||||||||||||||||
[2] | Net of tax expense (benefit) of $0.5 million and $0.2 million for the three months ended June 30, 2016 and 2015, respectively, and $0.6 million and $(2.8) million for the six months ended June 30, 2016 and 2015, respectively. | |||||||||||||||||||||
[3] | Net of tax benefit of $5.1 million, $2.1 million and $3.3 million for 2015, 2014 and 2013, respectively. | |||||||||||||||||||||
[4] | Net of tax expense of $0.4 million for each of the three months ended June 30, 2016 and 2015, respectively, and $0.7 million for each of the six months ended June 30, 2016 and 2015. | |||||||||||||||||||||
[5] | This other comprehensive income component is included in the computation of net periodic benefit (income) costs. See Note 11, "Pension and Post-Retirement Benefits," for additional information regarding net periodic benefit (income) costs. | |||||||||||||||||||||
[6] | Net of tax expense of $1.3 million, $0.1 million and $1.2 million for 2015, 2014 and 2013, respectively. | |||||||||||||||||||||
[7] | This other comprehensive income component is included in the computation of net periodic benefit (income) costs. See Note 14, "Savings Plan, Pension and Post-Retirement Benefits," for additional information regarding net periodic benefit (income) costs. | |||||||||||||||||||||
[8] | Net of tax (benefit) expense of $(3.3) million, $(42.0) million and $33.5 million for 2015, 2014 and 2013, respectively. | |||||||||||||||||||||
[9] | Net of tax expense of $3.7 million. | |||||||||||||||||||||
[10] | Net of tax expense (benefit) of $0.1 million and nil for the three months ended June 30, 2016 and 2015, respectively, and $(0.4) million and $(1.2) million for the six months ended June 30, 2016 and 2015, respectively. | |||||||||||||||||||||
[11] | Net of tax (benefit) expense of $(1.0) million, $(2.3) million and $1.0 million for 2015, 2014 and 2013, respectively. | |||||||||||||||||||||
[12] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive income during the six months ended June 30, 2016. | |||||||||||||||||||||
[13] | See Note 17, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during each of 2015, 2014 and 2013. |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE (LOSS) INCOME - 10K (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||||||
Currency translation adjustment, tax expense (benefit) | $ 0.5 | $ 0.2 | $ 0.6 | $ (2.8) | $ (5.1) | $ (2.1) | $ (3.3) |
Amortization of pension related costs, tax expense (benefit) | 0.4 | 0.4 | 0.7 | 0.7 | 1.3 | 0.1 | 1.2 |
Pension re-measurement, tax expense (benefit) | (3.3) | (42) | 33.5 | ||||
Pension settlement, tax expense (benefit) | 3.7 | ||||||
Revaluation of derivative financial instrument, tax expense (benefit) | $ 0.1 | $ 0 | $ (0.4) | $ (1.2) | $ (1) | $ (2.3) | $ 1 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDER'S DEFICIENCY - 10K - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Beginning balance | $ (557) | $ (516.5) | $ (491.6) | [1] | $ (557) | $ (557) | $ (516.5) | $ (576.7) | |||||||
Stock-based compensation amortization | 3.3 | 5.1 | 5.5 | 0.2 | |||||||||||
Excess tax benefits from stock-based compensation | 0.1 | 0.3 | 0.1 | ||||||||||||
Net income | $ 26.3 | 0.6 | $ 4.5 | 7 | 22.3 | 28.1 | [1] | 62.1 | 47.3 | 1.6 | |||||
Other comprehensive loss, net | 8.4 | [2] | (11.1) | (2.1) | [3] | (93.4) | [3] | 58.4 | |||||||
Ending balance | (491.6) | [1] | (557) | (457.5) | (491.6) | [1] | (557) | (516.5) | |||||||
Common Stock [Member] | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Beginning balance | 54.6 | 54.6 | 54.6 | 54.6 | 54.6 | 54.6 | 54.6 | ||||||||
Ending balance | 54.6 | 54.6 | 54.6 | 54.6 | 54.6 | ||||||||||
Additional Paid-In-Capital [Member] | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Beginning balance | 952.1 | 946.5 | 957.5 | 952.1 | 952.1 | 946.5 | 946.3 | ||||||||
Stock-based compensation amortization | 3.3 | 5.1 | 5.5 | 0.2 | |||||||||||
Excess tax benefits from stock-based compensation | 0.1 | 0.3 | 0.1 | ||||||||||||
Ending balance | 957.5 | 952.1 | 960.9 | 957.5 | 952.1 | 946.5 | |||||||||
Accumulated Deficit [Member] | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Beginning balance | (1,320.5) | (1,367.8) | (1,258.4) | (1,320.5) | (1,320.5) | (1,367.8) | (1,369.4) | ||||||||
Net income | 22.3 | 62.1 | 47.3 | 1.6 | |||||||||||
Ending balance | (1,258.4) | (1,320.5) | (1,236.1) | (1,258.4) | (1,320.5) | (1,367.8) | |||||||||
Accumulated Other Comprehensive Loss [Member] | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Beginning balance | $ (243.2) | $ (149.8) | (245.3) | $ (243.2) | (243.2) | (149.8) | (208.2) | ||||||||
Other comprehensive loss, net | 8.4 | [2] | (2.1) | [3] | (93.4) | [3] | 58.4 | [3] | |||||||
Ending balance | $ (245.3) | $ (243.2) | $ (236.9) | $ (245.3) | $ (243.2) | $ (149.8) | |||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. | ||||||||||||||
[2] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive income during the six months ended June 30, 2016. | ||||||||||||||
[3] | See Note 17, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during each of 2015, 2014 and 2013. |
CONSOLIDATED STATEMENT OF STOC7
CONSOLIDATED STATEMENT OF STOCKHOLDER'S DEFICIENCY - 10K (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Shares withheld for withholding taxes (in shares) | 82,740 | 22,328 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - 10K - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net income | $ 62.1 | $ 47.3 | $ 1.6 | ||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||
Depreciation and amortization | 103.2 | 102.6 | 76.7 | ||
Foreign currency losses from re-measurement | 19.5 | 25.5 | 5.9 | ||
Amortization of debt discount | 1.4 | 1.4 | 1.3 | ||
Stock-based compensation amortization | 5.1 | 5.5 | 0.2 | ||
Goodwill impairment charge | 9.7 | 0 | 0 | ||
Provision for deferred income taxes | 31.5 | 67.9 | 33.4 | ||
Loss on early extinguishment of debt | 0 | 2 | 29.7 | ||
Amortization of debt issuance costs | 5.7 | 5.5 | 3.5 | ||
Insurance proceeds for property, plant and equipment | 0 | 0 | (13.1) | ||
Gain on sale of certain assets | (6.4) | (2.1) | (2.9) | ||
Pension and other post-retirement cost (income) | 19 | (5.3) | (0.2) | ||
Change in assets and liabilities: | |||||
(Increase) decrease in trade receivables | (18.5) | (5.5) | 40.1 | ||
(Increase) decrease in inventories | (30.6) | 9.2 | 10.2 | ||
(Increase) decrease in prepaid expenses and other current assets | (32.6) | 4.5 | (12.3) | ||
Increase in accounts payable | 34.9 | 0.2 | 19.1 | ||
Increase (decrease) in accrued expenses and other current liabilities | 10.2 | (21.5) | (4.5) | ||
Pension and other post-retirement plan contributions | (18.1) | (19) | (18.5) | ||
Purchases of permanent displays | (47.4) | (45.3) | (44.5) | ||
Other, net | 6.6 | 1.1 | (2.4) | ||
Net cash (used in) provided by operating activities | 155.3 | 174 | 123.3 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Capital expenditures | (48.3) | (55.5) | (28.6) | ||
Business acquisitions, net of cash acquired | (41.7) | 0 | (627.6) | ||
Insurance proceeds for property, plant and equipment | 0 | 0 | 13.1 | ||
Proceeds from the sale of certain assets | 6.2 | 3.4 | 3.7 | ||
Net cash used in investing activities | (83.8) | (52.1) | (639.4) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Net increase (decrease) in short-term borrowings and overdraft | 23 | (4.7) | (6.3) | ||
Repayment of Contributed Loan | 0 | 0 | (48.6) | ||
Payment of financing costs | 0 | (1.8) | (48.8) | ||
Other financing activities | (3.7) | (3.2) | (2.6) | ||
Net cash (used in) provided by financing activities | (12.1) | (75.1) | 649 | ||
Effect of exchange rate changes on cash and cash equivalents | (7.8) | (15.6) | (5.1) | ||
Net increase (decrease) in cash and cash equivalents | 51.6 | 31.2 | 127.8 | ||
Cash and cash equivalents at beginning of period | 275.3 | [1] | 244.1 | 116.3 | |
Cash and cash equivalents at end of period | 326.9 | [1] | 275.3 | [1] | 244.1 |
Cash paid during the period for: | |||||
Interest | 79.9 | 85.6 | 78.7 | ||
Income taxes, net of refunds | 25.2 | 20.9 | 12.5 | ||
Amended and Restated Senior Subordinated Term Loan [Member] | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Repayments of long-term debt | 0 | (58.4) | 0 | ||
Acquisition Term Loan [Member] | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Repayments of long-term debt | (19.3) | (7) | 0 | ||
Proceeds from issuance of long-term debt | 0 | 0 | 698.3 | ||
5 3/4% Senior Notes Due 2021 [Member] | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds from issuance of long-term debt | 0 | 0 | 500 | ||
2011 Term Loan [Member] | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Repayments of long-term debt | 0 | 0 | (113) | ||
Prepayments under the 2011 Term Loan | (12.1) | 0 | 0 | ||
9.75% Senior Secured Notes Due 2015 [Member] | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Repayments of long-term debt | $ 0 | $ 0 | $ (330) | ||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
CONSOLIDATED BALANCE SHEETS - Q
CONSOLIDATED BALANCE SHEETS - Q2 - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 185.8 | $ 326.9 | |
Trade receivables, less allowance for doubtful accounts of $10.7 and $10.5 as of June 30, 2016 and December 31, 2015, respectively | 268.4 | 244.9 | |
Inventories | 209.6 | 183.8 | |
Prepaid expenses and other | 74.3 | 53.3 | |
Receivable from Revlon, Inc. | 127.2 | 117.4 | |
Total current assets | 865.3 | 926.3 | |
Property, plant and equipment, net of accumulated depreciation of $286.3 and $271.7 as of June 30, 2016 and December 31, 2015, respectively | 216.8 | 215.3 | |
Deferred income taxes | 41.7 | 49.8 | |
Goodwill | 476.7 | 469.7 | |
Intangible assets, net of accumulated amortization of $72.8 and $61.1 as of June 30, 2016 and December 31, 2015, respectively | 328.9 | 318 | |
Other assets | 89.4 | 84.1 | |
Total assets | 2,018.8 | 2,063.2 | |
Current liabilities: | |||
Short-term borrowings | 14.1 | 11.3 | |
Current portion of long-term debt | 6.8 | 30 | |
Accounts payable | 187.6 | 201.3 | |
Accrued expenses and other | 233.2 | 272.4 | |
Total current liabilities | 441.7 | 515 | |
Long-term debt | 1,783.6 | 1,783.7 | |
Long-term pension and other post-retirement plan liabilities | 178.2 | 185.3 | |
Other long-term liabilities | 72.8 | 70.8 | |
Stockholder's deficiency: | |||
RCPC Preferred Stock, par value $1.00 per share; 1,000 shares authorized and 546 shares issued as of June 30, 2016 and December 31, 2015, respectively | 54.6 | 54.6 | |
Common Stock, par value $1.00 per share; 10,000 shares authorized and 5,260 shares issued as of June 30, 2016 and December 31, 2015 respectively | 0 | 0 | |
Additional paid-in-capital | 960.9 | 957.5 | |
Accumulated deficit | (1,236.1) | (1,258.4) | |
Accumulated other comprehensive loss | (236.9) | (245.3) | |
Total stockholder's deficiency | (457.5) | (491.6) | |
Total liabilities and stockholder's deficiency | $ 2,018.8 | $ 2,063.2 | |
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
CONSOLIDATED BALANCE SHEETS -10
CONSOLIDATED BALANCE SHEETS - Q2 (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 08, 2013 |
Statement of Financial Position [Abstract] | ||||
Allowance for doubtful accounts on trade receivables | $ 10.7 | $ 10.5 | $ 9.3 | |
Accumulated depreciation on property, plant and equipment | 286.3 | 271.7 | 250.5 | |
Accumulated amortization on intangible assets | $ 72.8 | $ 61.1 | $ 39.3 | |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | $ 0.01 |
Preferred stock, shares authorized (shares) | 1,000 | 1,000 | 1,000 | |
Preferred stock, shares issued (shares) | 546 | 546 | 546 | |
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | |
Common stock, shares authorized (shares) | 10,000 | 10,000 | 10,000 | |
Common stock, shares issued (shares) | 5,260 | 5,260 | 5,260 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - Q2 - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||
Income Statement [Abstract] | |||||||||||||||||||||
Net sales | $ 488.9 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 501 | $ 472.3 | $ 497.9 | $ 469.8 | $ 928.5 | $ 920.9 | $ 1,914.3 | $ 1,941 | $ 1,494.7 | |||||||
Cost of sales | 171.5 | 161.3 | 325.4 | 303.6 | 667.8 | 668.3 | 545.1 | ||||||||||||||
Gross profit | 317.4 | 325.5 | 303.7 | 321.1 | 296.2 | 328 | 307.7 | 330.7 | 306.3 | 603.1 | 617.3 | 1,246.5 | 1,272.7 | 949.6 | |||||||
Selling, general and administrative expenses | 256.8 | 256.9 | 502.6 | 503.8 | 993.5 | 999.7 | 723.6 | ||||||||||||||
Acquisition and integration costs | 5.5 | 4.7 | 6 | 5.9 | 8 | 6.4 | 25.4 | ||||||||||||||
Restructuring charges and other, net | 0.5 | (3.6) | 1.8 | (3.1) | 10.5 | 21.3 | 3.5 | ||||||||||||||
Operating income | 54.6 | 63.1 | 92.7 | 110.7 | 224.8 | 245.3 | 197.1 | ||||||||||||||
Other expenses, net: | |||||||||||||||||||||
Interest expense | 20.9 | 20.5 | 41.9 | 40.5 | 83.3 | 84.4 | 78.6 | ||||||||||||||
Amortization of debt issuance costs | 1.4 | 1.4 | 2.9 | 2.8 | [1] | 5.7 | 5.5 | 3.5 | |||||||||||||
Foreign currency losses (gains), net | 8.5 | (7.9) | 5.1 | 8 | 15.7 | 25 | 3.7 | ||||||||||||||
Miscellaneous, net | 0.2 | 0.2 | 0.5 | 0.2 | 0.4 | 1.2 | 1 | ||||||||||||||
Other expenses, net | 31 | 14.2 | 50.4 | 51.5 | 105.1 | 118.1 | 116.5 | ||||||||||||||
Income from continuing operations before income taxes | 23.6 | 48.9 | 42.3 | 59.2 | 119.7 | 127.2 | 80.6 | ||||||||||||||
Provision for income taxes | 11.8 | 21.4 | 17.9 | 31 | 54.4 | 81.2 | 48.6 | ||||||||||||||
Income from continuing operations, net of taxes | 11.8 | 27.7 | 9.4 | 27.5 | 0.7 | 4.1 | 15.8 | 15.9 | 10.2 | 24.4 | 28.2 | 65.3 | 46 | 32 | |||||||
Loss from discontinued operations, net of taxes | (2.5) | (1.4) | (1.7) | 0 | (0.1) | 0.4 | 0.4 | 3.7 | (3.2) | (2.1) | (0.1) | (3.2) | 1.3 | (30.4) | |||||||
Net income | 9.3 | $ 26.3 | $ 7.7 | 27.5 | $ 0.6 | $ 4.5 | $ 16.2 | $ 19.6 | $ 7 | 22.3 | 28.1 | [1] | 62.1 | 47.3 | 1.6 | ||||||
Other comprehensive income (loss): | |||||||||||||||||||||
Foreign currency translation adjustment, net of tax | 2.6 | [2] | 0.8 | [2] | 5.3 | [2] | (12.6) | [2] | (18.1) | [3] | (24.6) | [3] | (4.1) | [3] | |||||||
Amortization of pension related costs, net of tax | 2 | [4],[5] | 1.8 | [4],[5] | 3.8 | [4],[5] | 3.5 | [4],[5] | 7.2 | [6],[7] | 4.5 | [6],[7] | 7.7 | [6],[7] | |||||||
Revaluation of derivative financial instruments, net of reclassifications into earnings | 0.2 | [8] | (0.1) | [8] | (0.7) | [8] | (2) | [8] | (1.6) | [9] | (3.7) | [9] | 1.5 | [9] | |||||||
Other comprehensive (loss) income | 4.8 | 2.5 | 8.4 | [10] | (11.1) | (2.1) | [11] | (93.4) | [11] | 58.4 | |||||||||||
Total comprehensive income (loss) | $ 14.1 | $ 30 | $ 30.7 | $ 17 | $ 60 | $ (46.1) | $ 60 | ||||||||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. | ||||||||||||||||||||
[2] | Net of tax expense (benefit) of $0.5 million and $0.2 million for the three months ended June 30, 2016 and 2015, respectively, and $0.6 million and $(2.8) million for the six months ended June 30, 2016 and 2015, respectively. | ||||||||||||||||||||
[3] | Net of tax benefit of $5.1 million, $2.1 million and $3.3 million for 2015, 2014 and 2013, respectively. | ||||||||||||||||||||
[4] | Net of tax expense of $0.4 million for each of the three months ended June 30, 2016 and 2015, respectively, and $0.7 million for each of the six months ended June 30, 2016 and 2015. | ||||||||||||||||||||
[5] | This other comprehensive income component is included in the computation of net periodic benefit (income) costs. See Note 11, "Pension and Post-Retirement Benefits," for additional information regarding net periodic benefit (income) costs. | ||||||||||||||||||||
[6] | Net of tax expense of $1.3 million, $0.1 million and $1.2 million for 2015, 2014 and 2013, respectively. | ||||||||||||||||||||
[7] | This other comprehensive income component is included in the computation of net periodic benefit (income) costs. See Note 14, "Savings Plan, Pension and Post-Retirement Benefits," for additional information regarding net periodic benefit (income) costs. | ||||||||||||||||||||
[8] | Net of tax expense (benefit) of $0.1 million and nil for the three months ended June 30, 2016 and 2015, respectively, and $(0.4) million and $(1.2) million for the six months ended June 30, 2016 and 2015, respectively. | ||||||||||||||||||||
[9] | Net of tax (benefit) expense of $(1.0) million, $(2.3) million and $1.0 million for 2015, 2014 and 2013, respectively. | ||||||||||||||||||||
[10] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive income during the six months ended June 30, 2016. | ||||||||||||||||||||
[11] | See Note 17, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during each of 2015, 2014 and 2013. |
UNAUDITED CONSOLIDATED STATEM12
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - Q2 (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||||||
Currency translation adjustment, tax expense (benefit) | $ 0.5 | $ 0.2 | $ 0.6 | $ (2.8) | $ (5.1) | $ (2.1) | $ (3.3) |
Amortization of pension related costs, tax expense (benefit) | 0.4 | 0.4 | 0.7 | 0.7 | 1.3 | 0.1 | 1.2 |
Revaluation of derivative financial instrument, tax expense (benefit) | $ 0.1 | $ 0 | $ (0.4) | $ (1.2) | $ (1) | $ (2.3) | $ 1 |
UNAUDITED CONSOLIDATED STATEM13
UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDER'S DEFICIENCY - Q2 - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | $ (491.6) | [1] | $ (557) | ||||
Stock-based compensation amortization | 3.3 | 5.1 | |||||
Excess tax benefits from stock-based compensation | 0.1 | 0.3 | |||||
Net income | $ 9.3 | $ 26.3 | 22.3 | 62.1 | |||
Other comprehensive loss, net | 4.8 | 8.4 | [2] | (2.1) | [3] | ||
Ending balance | (457.5) | (491.6) | [1] | (457.5) | (491.6) | [1] | |
Preferred Stock [Member] | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | 54.6 | ||||||
Ending balance | 54.6 | 54.6 | 54.6 | 54.6 | |||
Additional Paid-In-Capital [Member] | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | 957.5 | 952.1 | |||||
Stock-based compensation amortization | 3.3 | 5.1 | |||||
Excess tax benefits from stock-based compensation | 0.1 | 0.3 | |||||
Ending balance | 960.9 | 957.5 | 960.9 | 957.5 | |||
Accumulated Deficit [Member] | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | (1,258.4) | (1,320.5) | |||||
Net income | 22.3 | 62.1 | |||||
Ending balance | (1,236.1) | (1,258.4) | (1,236.1) | (1,258.4) | |||
Accumulated Other Comprehensive Loss [Member] | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | (245.3) | (243.2) | |||||
Other comprehensive loss, net | 8.4 | [2] | (2.1) | [3] | |||
Ending balance | $ (236.9) | $ (245.3) | $ (236.9) | $ (245.3) | |||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. | ||||||
[2] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive income during the six months ended June 30, 2016. | ||||||
[3] | See Note 17, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during each of 2015, 2014 and 2013. |
UNAUDITED CONSOLIDATED STATEM14
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - Q2 - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2016 | Jun. 30, 2015 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net income | $ 22.3 | $ 28.1 | $ 62.1 | $ 47.3 | $ 1.6 | ||||
Adjustments to reconcile net income to net cash used in by operating activities: | |||||||||
Depreciation and amortization | 52.2 | 50.8 | 103.2 | 102.6 | 76.7 | ||||
Foreign currency losses from re-measurement | 4.2 | 8.8 | 19.5 | 25.5 | 5.9 | ||||
Amortization of debt discount | 0.7 | 0.7 | 1.4 | 1.4 | 1.3 | ||||
Stock-based compensation amortization | 3.3 | 2.8 | 5.1 | 5.5 | 0.2 | ||||
Provision for deferred income taxes | 7.1 | 19.5 | 31.5 | 67.9 | 33.4 | ||||
Amortization of debt issuance costs | 2.9 | 2.8 | 5.7 | 5.5 | 3.5 | ||||
Loss (gain) on sale of certain assets | 0.3 | (3) | (6.4) | (2.1) | (2.9) | ||||
Pension and other post-retirement income | (0.3) | (1.3) | 19 | (5.3) | (0.2) | ||||
Change in assets and liabilities: | |||||||||
Increase in trade receivables | (24.7) | (18.7) | (18.5) | (5.5) | 40.1 | ||||
Increase in inventories | (25.6) | (36.1) | (30.6) | 9.2 | 10.2 | ||||
Increase in prepaid expenses and other current assets | (31) | (25.1) | (32.6) | 4.5 | (12.3) | ||||
(Decrease) increase in accounts payable | (0.7) | 29.6 | 34.9 | 0.2 | 19.1 | ||||
Decrease in accrued expenses and other current liabilities | (43.1) | (25.5) | 10.2 | (21.5) | (4.5) | ||||
Pension and other post-retirement plan contributions | (3.6) | (5.2) | (18.1) | (19) | (18.5) | ||||
Purchases of permanent displays | (17.5) | (22) | (47.4) | (45.3) | (44.5) | ||||
Other, net | (3.7) | (3.7) | 6.6 | 1.1 | (2.4) | ||||
Net cash (used in) provided by operating activities | (57.2) | 2.5 | 155.3 | 174 | 123.3 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
Capital expenditures | (18.6) | (17.2) | (48.3) | (55.5) | (28.6) | ||||
Business acquisitions | (29.2) | (34.2) | (41.7) | 0 | (627.6) | ||||
Proceeds from the sale of certain assets | 0.4 | 2 | 6.2 | 3.4 | 3.7 | ||||
Net cash used in investing activities | (47.4) | (49.4) | (83.8) | (52.1) | (639.4) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
Net (decrease) increase in short-term borrowings and overdraft | (8.4) | 6.6 | 23 | (4.7) | (6.3) | ||||
Repayments under the Acquisition Term Loan | (15.1) | (15.9) | |||||||
Prepayments under the 2011 Term Loan | (11.5) | (12.1) | |||||||
Other financing activities | (1.6) | (2.1) | (3.7) | (3.2) | (2.6) | ||||
Net cash used in financing activities | (36.6) | (23.5) | (12.1) | (75.1) | 649 | ||||
Effect of exchange rate changes on cash and cash equivalents | 0.1 | (5.9) | (7.8) | (15.6) | (5.1) | ||||
Net increase (decrease) in cash and cash equivalents | (141.1) | (76.3) | 51.6 | 31.2 | 127.8 | ||||
Cash and cash equivalents at beginning of period | 326.9 | [1] | 275.3 | 275.3 | [1] | 244.1 | 116.3 | ||
Cash and cash equivalents at end of period | 185.8 | 199 | 326.9 | [1] | 275.3 | [1] | 244.1 | ||
Cash paid during the period for: | |||||||||
Interest | 41.2 | 37.9 | 79.9 | 85.6 | 78.7 | ||||
Income taxes, net of refunds | $ 12.9 | $ 10.8 | $ 25.2 | $ 20.9 | $ 12.5 | ||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revlon Consumer Products Corporation ("Products Corporation" and together with its subsidiaries, the "Company") is the direct wholly-owned operating subsidiary of Revlon, Inc., which is an indirect majority-owned subsidiary of MacAndrews & Forbes Incorporated (together with certain of its affiliates other than the Company and Revlon, Inc., "MacAndrews & Forbes"), a corporation wholly-owned by Ronald O. Perelman. The Company’s vision is to establish Revlon as the quintessential and most innovative beauty company in the world by offering products that make consumers feel attractive and beautiful. The Company wants to inspire its consumers to express themselves boldly and confidently. The Company operates in three reporting segments: the consumer division (“Consumer”); the professional division (“Professional”); and Other. The Company manufactures, markets and sells worldwide an extensive array of beauty and personal care products, including color cosmetics, hair color, hair care and hair treatments, beauty tools, men's grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products. The Company’s principal customers for its products in the Consumer segment include large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, the Internet/e-commerce, television shopping, department stores, one-stop shopping beauty retailers, specialty cosmetics stores and perfumeries in the U.S. and internationally. The Company's principal customers for its products in the Professional segment include hair and nail salons and distributors to professional salons in the U.S. and internationally. The Other segment primarily includes the operating results of the CBBeauty Group and certain of its related entities (collectively "CBB" and such transaction, the "CBB Acquisition"). CBB develops, manufactures, markets and distributes fragrances and other beauty products under a variety of celebrity, lifestyle and fashion brands licensed from third parties, principally through department stores and selective distribution in international territories. The results included within the Other segment are not material to the Company’s consolidated results of operations. The accompanying Consolidated Financial Statements are unaudited. In management's opinion, all adjustments necessary for a fair presentation have been made. The Consolidated Financial Statements include the accounts of the Company after the elimination of all material intercompany balances and transactions. The preparation of the Company's Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Consolidated Financial Statements include, but are not limited to, allowances for doubtful accounts, inventory valuation reserves, expected sales returns and allowances, trade support costs, certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets, income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities, restructuring costs, certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. The Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 26, 2016 (the "2015 Form 10-K"). The Company's results of operations and financial position for interim periods are not necessarily indicative of those to be expected for a full year. Certain prior year amounts in the Consolidated Financial Statements have been reclassified to conform to the current period's presentation. Recently Adopted Accounting Pronouncements In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," which requires deferred income tax assets and liabilities to be classified as noncurrent within a company's balance sheet. Under previous guidance, the Company was required to separate deferred income tax assets and liabilities into current and noncurrent amounts. Netting deferred tax assets and deferred tax liabilities by tax jurisdiction is still required under ASU 2015-17. The Company adopted ASU No. 2015-17 beginning on January 1, 2016 and the Company's previously recorded deferred tax assets were adjusted to reflect the adoption of ASU No. 2015-17. The adoption of ASU No. 2015-17 resulted in no adjustment to the Company’s results of operations and stockholder's deficiency and had the following impact on the previously reported Consolidated Balance Sheets for the fiscal year ended December 31, 2015 and the Consolidated Statements of Cash Flows for the fiscal period ended June 30, 2015: Consolidated Balance Sheets Total as reported at 12/31/2015 Adjustment Total as adjusted at 12/31/2015 Deferred income taxes - current 58.0 (58.0 ) — Deferred income taxes - noncurrent 38.5 11.3 49.8 Other long-term liabilities 117.5 (46.7 ) 70.8 Consolidated Statements of Cash Flows Total as reported at 6/30/2015 Adjustment Total as adjusted at 6/30/2015 Increase in prepaid expense and other current assets (25.2 ) 0.1 (25.1 ) Decrease in accrued expenses and other current liabilities (25.4 ) (0.1 ) (25.5 ) In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments," which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU No. 2015-16 beginning on January 1, 2016 and the adoption of the new guidance did not have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. Consolidated Balance Sheets Total as reported at 12/31/2015 Adjustment Total as adjusted at 12/31/2015 Long-Term Debt 1,803.7 (20.0 ) 1,783.7 Other Assets 104.1 (20.0 ) 84.1 In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," that will explicitly require management to assess an entity's ability to continue as a going concern and to provide related footnote disclosures if conditions give rise to substantial doubt. According to ASU No. 2014-15, substantial doubt exists if it is probable that the entity will be unable to meet its obligations within one year after the issuance date. The likelihood threshold of "probable," similar to its current use in U.S. GAAP for loss contingencies, will be used to define substantial doubt. Disclosures will be required under ASU No. 2014-15 if conditions give rise to substantial doubt, including whether and how management's plans will alleviate the substantial doubt. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption prohibited. The Company adopted ASU No. 2014-15 beginning January 1, 2016 and the adoption of the new guidance did not have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. Recently Issued Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which simplifies certain aspects of accounting for share-based payment transactions including transactions in which an employee uses shares to satisfy the employer’s minimum statutory income tax withholding obligation, forfeitures and income taxes when awards vest or are settled. The guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company expects to adopt ASU No. 2016-09 beginning on January 1, 2017 and is in the process of assessing the impact that the new guidance will have on the Company’s results of operations, financial condition and financial statement disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" which requires lessees to recognize a right-of-use asset and a liability on the balance sheet for all leases, with the exception of short-term leases. The lease liability will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to adjustment such as for initial direct costs. Leases will continue to be classified as either operating or finance leases in the income statement. The guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company expects to adopt ASU No. 2016-02 beginning on January 1, 2019 and is in the process of assessing the impact that the new guidance will have on the Company’s results of operations, financial condition and financial statement disclosures. | 1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revlon Consumer Products Corporation ("Products Corporation" and together with its subsidiaries, the "Company") is the direct wholly-owned operating subsidiary of Revlon, Inc., which is an indirect majority-owned operating subsidiary of MacAndrews & Forbes Incorporated (together with certain of its affiliates other than the Company, "MacAndrews & Forbes"), a corporation wholly-owned by Ronald O. Perelman. The Company’s vision is to establish Revlon as the quintessential and most innovative beauty company in the world by offering products that make consumers feel attractive and beautiful. We want to inspire our consumers to express themselves boldly and confidently. The Company operates in three reporting segments: the consumer division (“Consumer”); the professional division (“Professional”); and Other (as described below). The Company manufactures, markets and sells worldwide an extensive array of beauty and personal care products, including color cosmetics, hair color, hair care and hair treatments, beauty tools, men's grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products. The Company’s principal customers for its products in the Consumer segment include large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, the Internet/e-commerce, television shopping, department stores, one-stop shopping beauty retailers, specialty cosmetics stores and perfumeries in the U.S. and internationally. The Company's principal customers for its products in the Professional segment include hair and nail salons and distributors to professional salons in the U.S. and internationally. Effective in the second quarter of 2015, the Company has a third reporting segment, Other, which includes the operating results of certain brands that our chief operating decision maker reviews on a stand-alone basis. The results included within the Other segment include the operating results and purchase accounting for the Company's April 2015 acquisition of the CBBeauty Group and certain of its related entities (collectively "CBB" and such transaction, the "CBB Acquisition"). CBB develops, manufactures, markets and distributes fragrances and other beauty products under various celebrity, lifestyle and fashion brands licensed from third parties, principally through department stores and selective distribution in international territories. The results included within the Other segment are not material to the Company's consolidated results of operations. Refer to Note 2, "Business Combinations," for further details related to the CBB Acquisition. The accompanying Consolidated Financial Statements include the Company's accounts after the elimination of all material intercompany balances and transactions. Certain prior year amounts have been reclassified to conform to the current year presentation. The preparation of the Company's Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Consolidated Financial Statements include, but are not limited to, allowances for doubtful accounts, inventory valuation reserves, expected sales returns and allowances, trade support costs, certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets, income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities, restructuring costs, certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. Discontinued Operations Presentation As a result of the Company's decision on December 30, 2013 to exit its direct manufacturing, warehousing and sales business operations in mainland China, the Company has reported the results of its former China operations within (loss) income from discontinued operations, net of taxes in the Company's Consolidated Statements of Income and Comprehensive Income (Loss) for all periods presented. See Note 4, "Discontinued Operations," for further discussion. Cash and Cash Equivalents: Cash equivalents are primarily investments in high-quality, short-term money market instruments with original maturities of three months or less and are carried at cost, which approximates fair value. Cash equivalents were $1.6 million and $6.3 million as of December 31, 2015 and 2014 , respectively. Accounts payable includes $19.5 million and $2.2 million of outstanding checks not yet presented for payment at December 31, 2015 and 2014 , respectively. Trade Receivables: Trade receivables represent payments due to the Company for previously recognized net sales, reduced by an allowance for doubtful accounts for balances which are estimated to be uncollectible at December 31, 2015 and 2014 , respectively. The Company grants credit terms in the normal course of business to its customers. Trade credit is extended based upon periodically updated evaluations of each customer's ability to perform its payment obligations. The Company does not normally require collateral or other security to support credit sales. The allowance for doubtful accounts is determined based on historical experience and ongoing evaluations of the Company's receivables and evaluations of the risks of payment. The allowance for doubtful accounts is recorded against trade receivable balances when they are deemed uncollectible. Recoveries of trade receivables previously reserved are recorded in the consolidated statements of income and comprehensive income (loss) when received. At December 31, 2015 and 2014 , the Company's three largest customers accounted for an aggregate of approximately 27% and 31% , respectively, of the Company's outstanding trade receivables. Inventories: Inventories are stated at the lower of cost or market value. Cost is based on standard cost and production variances, which approximates actual cost on the first-in, first-out method. Cost components include direct materials, direct labor and direct overhead, as well as in-bound freight. The Company records adjustments to the value of inventory based upon its forecasted plans to sell products included in inventory, as well as planned product discontinuances. The physical condition (e.g., age and quality) of the inventories is also considered in establishing its valuation. These adjustments are estimates, which could vary significantly, either favorably or unfavorably, from the amounts that the Company may ultimately realize upon the disposition of inventories if future economic conditions, customer inventory levels, product discontinuances, sales return levels or competitive conditions differ from the Company's estimates and expectations. Property, Plant and Equipment and Other Assets: Property, plant and equipment is recorded at cost and is depreciated on a straight-line basis over the estimated useful lives of such assets as follows: land improvements, 20 to 30 years; buildings and improvements, 5 to 50 years; machinery and equipment, 3 to 15 years; office furniture and fixtures, 3 to 15 years; and capitalized software, 2 to 10 years. Leasehold improvements and building improvements are amortized over their estimated useful lives or the terms of the leases or remaining life of the original structure, respectively, whichever is shorter. Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements are capitalized. See Note 7, “Property, Plant and Equipment" for further discussion. Included in other assets are permanent wall displays amounting to $65.6 million and $63.3 million as of December 31, 2015 and 2014 , respectively, which are amortized generally over a period of 1 to 3 years. In the event of product discontinuances, from time to time the Company may accelerate the amortization of related permanent wall displays based on the estimated remaining useful life of the asset. Amortization expense for permanent wall displays was $41.3 million , $42.5 million and $39.2 million for 2015 , 2014 and 2013 , respectively. The Company has also included, in other assets, net deferred financing costs related to the issuance of the Company’s debt instruments amounting to $21.3 million and $26.9 million as of December 31, 2015 and 2014 , respectively, which are amortized over the terms of the related debt instruments using the effective-interest method. Long-lived assets, including property, plant and equipment and finite-lived intangibles, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, the Company estimates the undiscounted future cash flows (excluding interest) resulting from the use of the asset and its ultimate disposition. If the sum of the undiscounted cash flows (excluding interest) is less than the carrying value, the Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the fair value of the asset. In connection with integrating Colomer into the Company's business, the Company determined it would implement a company-wide, SAP enterprise resource planning system. As a result, the Company recognized a $5.9 million impairment charge related to in-progress capitalized software development costs during the year ended December 31, 2013 which was included as a component of acquisition and integration costs for 2013 in the Company's Consolidated Statements of Income and Comprehensive Income (Loss). There were no significant impairment to long-lived assets during the years ended December 31, 2015 and 2014 . Goodwill: Goodwill represents the excess purchase price for businesses acquired over the fair value of net assets acquired. Goodwill is not amortized, but rather is reviewed annually for impairment at the reporting unit level using September 30th carrying values, or when there is evidence that events or changes in circumstances indicate that the Company’s carrying amount may not be recovered. For 2015, in assessing whether goodwill was impaired in connection with its annual impairment test performed as of September 30th, the Company utilized the two-step process as prescribed by Accounting Standards Codification ("ASC") 350, Intangibles - Goodwill and Other . In the first step of this test, the Company compared the fair value of each of the Company's four reporting units, determined based upon discounted estimated future cash flows, to the carrying amount of such reporting unit, including goodwill. Where the fair value of such reporting unit exceeded the carrying amount, no further work was required and no impairment loss was recognized. Where the carrying amount of the reporting unit exceeded the fair value, the goodwill of the reporting unit was considered potentially impaired and the Company performed step two of the goodwill impairment test to measure the amount of the impairment loss. As a result of the annual impairment test, the Company recognized a $9.7 million non-cash goodwill impairment charge in the fourth quarter of 2015. For 2014 and 2013, the Company performed qualitative assessments to determine whether it would be necessary to perform the two-step goodwill impairment test and to assess the Company's indefinite-lived intangible assets for indicators of impairment, and in each case determined that it is more likely than not that the fair value of each of the Company's reporting units and indefinite-lived intangible assets exceeded their carrying amounts for such reporting years. The Company did not record any impairment of goodwill during the years ended December 31, 2014 or 2013 as a result of its annual impairment test. See Note 2, “Business Combinations” and Note 8, “Goodwill and Intangible Assets, Net” for further discussion of the Company's goodwill and annual impairment test. Intangible Assets, net: Intangible Assets, net, include trade names and trademarks, customer relationships, patents and internally developed intellectual property ("IP") and acquired licenses. Indefinite-lived intangible assets, consisting of certain trade names, are not amortized, but rather are tested for impairment annually on September 30th, similar to goodwill, and the Company recognizes an impairment if the carrying amount of its intangible assets exceeds its fair value. Intangible assets with finite useful lives are amortized over their respective estimated useful lives to their estimated residual values. The Company writes off the gross carrying amount and accumulated amortization for intangible assets in the year in which the asset becomes fully amortized. Finite-lived intangible assets are considered for impairment upon the occurrence of certain “triggering events” and the Company recognizes an impairment if the carrying amount of the asset group intangible asset exceeds the Company's estimate of its undiscounted future cash flows. There was no impairment of intangible assets in 2015, 2014 or 2013. See Note 2, “Business Combinations” and Note 8, “Goodwill and Intangible Assets, Net” for further discussion of the Company's intangible assets, including a summary of finite-lived and indefinite-lived intangible assets. Revenue Recognition and Sales Returns: The Company's policy is to recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection is probable. The Company records revenue from the sale of its products when risk of loss and title to the product transfers to the customer. Net sales are comprised of gross revenues less expected product returns, trade discounts and customer allowances, which include costs associated with off-invoice mark-downs and other price reductions, as well as trade promotions and coupons. These incentive costs are recognized at the later of the date on which the Company recognizes the related revenue or the date on which the Company offers the incentive. The Company allows customers to return their unsold products if and when they meet certain Company-established criteria as set forth in the Company's trade terms. The Company regularly reviews and revises, when deemed necessary, its estimates of sales returns based primarily upon the historical rate of actual product returns, planned product discontinuances, new product launches and estimates of customer inventory and promotional sales. The Company records sales returns as a reduction to sales and cost of sales, and an increase to accrued liabilities and inventories. Returned products, which are recorded as inventories, are valued based upon the amount that the Company expects to realize upon their subsequent disposition. The physical condition and marketability of the returned products are the major factors considered by the Company in estimating their realizable value. Revenues derived from licensing arrangements, including any pre-payments, are recognized in the period in which they are earned, but not before the initial license term commences. Cost of Sales: Cost of sales includes all of the costs to manufacture the Company's products. For products manufactured in the Company's own facilities, such costs include raw materials and supplies, direct labor and factory overhead. For products manufactured for the Company by third-party contractors, such cost represents the amounts invoiced by the contractors. Cost of sales also includes the cost of refurbishing products returned by customers that will be offered for resale and the cost of inventory write-downs associated with adjustments of held inventories to their net realizable value. These costs are reflected in the Company’s consolidated statements of income (loss) and comprehensive income (loss) when the product is sold and net sales revenues are recognized or, in the case of inventory write-downs, when circumstances indicate that the carrying value of inventories is in excess of their recoverable value. Additionally, cost of sales reflects the costs associated with any free products included as sales and promotional incentives. These incentive costs are recognized on the later of the date that the Company recognizes the related revenue or the date on which the Company offers the incentive. Selling, General and Administrative Expenses: Selling, general and administrative (“SG&A”) expenses include expenses to advertise the Company's products, such as television advertising production costs and air-time costs, print advertising costs, digital marketing costs, promotional displays and consumer promotions. SG&A expenses also include the amortization of permanent wall displays and finite-lived intangible assets, depreciation of certain fixed assets, distribution costs (such as freight and handling), non-manufacturing overhead (principally personnel and related expenses), selling and trade educations fees, insurance and professional service fees. Advertising: Advertising within SG&A expenses includes television, print, digital marketing and other advertising production costs which are expensed the first time the advertising takes place. The costs of promotional displays are expensed in the period in which they are shipped to customers. Advertising expenses were $375.1 million , $383.2 million and $278.5 million for 2015 , 2014 and 2013 , respectively, and were included in SG&A expenses in the Company's Consolidated Statements of Income and Comprehensive Income (Loss). The Company also has various arrangements with customers pursuant to its trade terms to reimburse them for a portion of their advertising costs, which provide advertising benefits to the Company. Additionally, from time to time the Company may pay fees to customers in order to expand or maintain shelf space for its products. The costs that the Company incurs for "cooperative" advertising programs, end cap placement, shelf placement costs, slotting fees and marketing development funds, if any, are expensed as incurred and are recorded as a reduction within net sales. Distribution Costs: Costs associated with product distribution, such as freight and handling costs, are recorded within SG&A expenses when incurred. Distribution costs were $80.2 million , $84.9 million and $66.5 million for 2015 , 2014 and 2013 , respectively. Income Taxes: Income taxes are calculated using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, as well as for operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes the effect of a change in income tax rates on deferred tax assets and liabilities in income in the period that includes the enactment date. The Company records valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company recognizes a tax position in its financial statements when it is more likely than not that the position will be sustained upon examination, based on the merits of such position. The Company recognizes liabilities for unrecognized tax positions in the U.S. and other tax jurisdictions based on an estimate of whether and the extent to which additional taxes will be due. If payment of these amounts is ultimately not required, the reversal of the liabilities would result in additional tax benefits recognized in the period in which the Company determines that the liabilities are no longer required. If the estimate of tax liabilities is ultimately less than the final assessment, this will result in a further charge to expense. The Company recognizes interest and penalties related to income tax matters in income tax expense. Research and Development: Research and development expenditures are expensed as incurred and included within SG&A expenses. The amounts charged in 2015 , 2014 and 2013 for research and development expenditures were $31.2 million , $31.6 million and $26.9 million , respectively. Foreign Currency Translation: Assets and liabilities of foreign operations, whose functional currency is the local currency, are translated into U.S. Dollars at the rates of exchange in effect at the balance sheet date. Income and expense items are translated at the weighted average exchange rates prevailing during each period presented. Gains and losses resulting from foreign currency transactions are included in the results of operations. Gains and losses resulting from translation of financial statements of foreign subsidiaries and branches operating in non-hyperinflationary economies are recorded as a component of accumulated other comprehensive loss until either the sale or upon the complete or substantially complete liquidation by the Company of its investment in a foreign entity. To the extent that foreign subsidiaries and branches operate in hyperinflationary economies, non-monetary assets and liabilities are translated at historical rates and translation adjustments are included in the Company's results of operations. Venezuela - Highly-Inflationary Economy : Effective January 1, 2010, Venezuela was designated as a highly inflationary economy under U.S. GAAP. As a result, beginning January 1, 2010, the U.S. Dollar is the functional currency for the Company’s subsidiary in Venezuela (“Revlon Venezuela”). As Venezuela is designated as highly inflationary, foreign currency translation adjustments of Revlon Venezuela’s balance sheet have been reflected in the Company's earnings. Venezuela - Foreign Currency Restrictions : Foreign currency restrictions enacted by the Venezuelan government since 2003 have become more restrictive and have had an impact on Revlon Venezuela’s ability to obtain U.S. Dollars in exchange for Venezuelan Bolivars ("Bolivars") at the official foreign exchange rates from the Venezuelan government and its foreign exchange commission, the Comisión de Administracion de Divisas (“CADIVI”). In May 2010, the Venezuelan government took control over the previously freely-traded foreign currency exchange market and, in June 2010, replaced it with a new foreign currency exchange system, the Sistema de Transacciones en Moneda Extranjera (“SITME”). In the second quarter of 2011, the Company began using a SITME rate of 5.5 Bolivars per U.S. Dollar (the "SITME Rate") to translate Revlon Venezuela’s financial statements, as this was the rate at which the Company accessed U.S. Dollars in the SITME market during this period. Through December 31, 2012, the Company continued using the SITME Rate to translate Revlon Venezuela’s financial statements. Venezuela - 2013 Foreign Currency Devaluation : In February 2013, the Venezuelan government announced the devaluation of Bolivars relative to the U.S. Dollar, changing the official exchange rate to 6.3 Bolivars per U.S. Dollar (the "Official Rate"). The Venezuelan government also announced that the SITME currency market administered by the central bank would be eliminated, and as a result, the Company began using the Official Rate to translate Revlon Venezuela’s financial statements beginning in 2013 . To reflect the impact of the foreign currency devaluation, the Company recorded a foreign currency loss of $0.6 million in earnings in the first quarter of 2013 as a result of the required re-measurement of Revlon Venezuela’s monetary assets and liabilities. Venezuela - 2014 Foreign Currency Devaluation : In January 2014, the Venezuela government announced that the CADIVI would be replaced by the government-operated National Center of Foreign Commerce (the "CENCOEX"), and indicated that the Sistema Complementario de Administración de Divisas (“SICAD”) market would continue to be offered as an alternative foreign currency exchange. Additionally, a parallel foreign currency exchange system, SICAD II, started functioning in March 2014 and allowed companies to apply for the purchase of foreign currency and foreign currency denominated securities for any legal use or purpose. Throughout 2014, the Company exchanged Bolivars for U.S. Dollars to the extent permitted through the various foreign currency markets available based on its ability to participate in those markets. Prior to June 30, 2014, the Company utilized the Official Rate. Following a consideration of the Company's specific facts and circumstances, which included its legal ability and intent to participate in the SICAD II exchange market to import finished goods into Venezuela, the Company determined that it was appropriate to utilize the SICAD II rate of 53 Bolivars per U.S. Dollar (the "SICAD II Rate") to translate Revlon Venezuela’s financial statements beginning on June 30, 2014. As a result, the Company recorded a foreign currency loss of $6.0 million in the second quarter of 2014 related to the required re-measurement of Revlon Venezuela’s monetary assets and liabilities. Venezuela - 2015 Foreign Currency Devaluation : In February 2015, the Venezuela government introduced a new foreign currency exchange platform, the Marginal Currency System ("SIMADI"), which created a third new mechanism to exchange Bolivars for U.S. Dollars through private brokers. SIMADI replaced the SICAD II system and started operating on February 12, 2015. As a result, the Company considered its specific facts and circumstances in order to determine the appropriate rate of exchange to translate Revlon Venezuela’s financial statements. Through December 31, 2015, the Company has not participated in the SIMADI exchange market; however, given the elimination of the SICAD II system, the Company determined that it was appropriate to use the SIMADI rate of 193 Bolivars per U.S. Dollar (the "SIMADI Rate") to translate Revlon Venezuela’s balance sheet beginning on March 31, 2015. As a result of the change from the SICAD II Rate to the SIMADI Rate, on March 31, 2015 the Company was required to re-measure all of Revlon Venezuela’s monetary assets and liabilities at the SIMADI Rate. The Company recorded a foreign currency loss of $1.9 million in the first quarter of 2015 as a result of the required re-measurement of Revlon Venezuela’s balance sheet. During the second quarter of 2015, the Company exited its business operations in Venezuela and changed to a distributor model. Classes of Stock: Products Corporation designated 1,000 shares of preferred stock as the "RCPC Preferred Stock", of which 546 shares were outstanding as of December 31, 2015 and all of which are held by Revlon, Inc. The holder of the RCPC Preferred Stock is not entitled to receive any dividends. The RCPC Preferred Stock is entitled to a liquidation preference of $100,000 per share before any distribution is made to the holder of Products Corporation's common stock. The holder of the RCPC Preferred Stock does not have any voting rights, except as required by law. The RCPC Preferred Stock may be redeemed at any time by Products Corporation, as its option, for $100,000 per share. However, the terms of Products Corporation's various debt agreements currently restrict Products Corporation's ability to effect such redemption. Stock-Based Compensation: The Company recognizes stock-based compensation costs for its restricted stock, measured at the fair value of each award at the time of grant, as an expense over the period during which an employee is required to provide service. Upon the vesting of restricted stock, any resulting tax benefits are recognized in additional paid-in-capital. Any resulting tax deficiencies are recognized in the consolidated statements of income and comprehensive income (loss) as tax expense to the extent that the tax deficiency amount exceeds any existing additional paid-in-capital resulting from previously realized excess tax benefits from previous awards. The Company reflects such excess tax benefits as cash flows from financing activities in the consolidated statements of cash flows. Derivative Financial Instruments: The Company is exposed to certain risks relating to its ongoing business operations. The Company uses derivative financial instruments, including: (i) foreign currency forward exchange contracts (“FX Contracts”) intended for the purpose of managing foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on the Company’s net cash flows; and (ii) interest rate hedging transactions intended for the purpose of managing interest rate risk associated with Products Corporation’s variable rate indebtedness. Foreign Currency Forward Exchange Contracts Products Corporation enters into FX Contracts primarily to hedge the anticipated net cash flows resulting from inventory purchases and intercompany payments denominated in currencies other than the local currencies of the Company’s foreign and domestic operations and generally have maturities of less than one year. The Company does not apply hedge accounting to its FX Contracts. The Company records FX Contracts in its consolidated balance sheet at fair value and immediately recognizes changes in fair value in earnings. Fair value of the Company’s FX Contracts is determined by using observable market transactions of spot and forward rates. See Note 13, “Financial Instruments” for further discussion of the Company's FX Contracts. Interest Rate Swap In November 2013, Products Corporation executed the 2013 Interest Rate Swap (as hereinafter defined), which has been designated as a cash flow hedge of the variability of the forecasted three-month LIBOR interest rate payments related to its Acquisition Term Loan (as hereinafter defined). The Company records changes in the fair value of cash flow hedges that are designated as effective instruments as a component of accumulated other comprehensive loss. The Company immediately recognizes any ineffectiveness in such cash flow hedges in earnings. The Company recognizes gains and losses deferred in accumulated other comprehensive loss in current-period earnings when earnings are affected by the variability of cash flows of the hedged forecasted transaction. See Note 13, “Financial Instruments” for further discussion of the Company's 2013 Interest Rate Swap. Recently Adopted Accounting Pronouncements In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which changes the requirements for reporting discontinued operations under Accounting Standards Codification Topic 205. Under ASU No. 2014-08, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The standard states that a strategic shift could include a disposal of: (i) a major geographical area of operations; (ii) a major line of business; (iii) a major equity method investment; or (iv) other major parts of an entity. ASU No. 2014-08 no longer precludes presentation as a discontinued operation if: (i) there are operations and cash flows of the component that have not been eliminated from the reporting entity’s ongoing operations; or (ii) there is significant continuing involvement with a component after its disposal. Additional disclosures about discontinued operations are al |
BUSINESS COMBINATIONS - 10K
BUSINESS COMBINATIONS - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Business Combinations [Abstract] | ||
BUSINESS COMBINATIONS | 2. BUSINESS COMBINATIONS The Cutex International Acquisition On May 31, 2016 (the "Cutex International Acquisition Date"), the Company completed the acquisition of certain international Cutex businesses ("Cutex International") from Coty Inc. (the "Cutex International Acquisition"), which primarily operate in Australia and the U.K., and related assets for total cash consideration of $29.1 million . Following the Company's October 2015 acquisition of the Cutex business and related assets in the U.S. from Cutex Brands, LLC, the Cutex International Acquisition completed the Company's global consolidation of the Cutex brand and enhances and complements the Company's existing brand portfolio of nail care products. Cutex International's results of operations are included in the Company’s Consolidated Financial Statements commencing on the Cutex International Acquisition Date. Pro forma results of operations have not been presented, as the impact of the Cutex International Acquisition on the Company’s consolidated financial results is not material. The Company accounted for the Cutex International Acquisition as a business combination in the second quarter of 2016. The table below summarizes the allocation of the total consideration of $29.1 million paid on the Cutex International Acquisition Date: Fair Value at May 31, 2016 Inventory $ 0.8 Purchased Intangible Assets (a) 19.7 Goodwill 8.6 Total consideration transferred $ 29.1 (a) Purchased intangible assets include customer networks fair valued at $14.0 million , intellectual property fair valued at $0.9 million , which are amortized over useful lives of 15 and 10 years, respectively, and indefinite lived trade names fair valued at $4.8 million . The Company reacquired the Cutex trade name, which had previously provided Coty with an exclusive right to manufacture, market and sell Cutex branded products for an initial term and perpetual automatic 20 -year renewals. Based on the terms and conditions of the existing license agreements and other factors, the Cutex trade name was assigned an indefinite-life and, therefore, will not be amortized. The fair values of the net assets acquired in the Cutex International Acquisition were based on management’s preliminary estimate of the respective fair values. The estimated fair values of net assets and resulting goodwill are subject to the Company finalizing its analysis of the fair value of Cutex International's assets as of the Cutex International Acquisition Date and may be adjusted upon completion of such analysis. In addition, information unknown at the time of the Cutex International Acquisition Date could result in adjustments to the respective fair values and resulting goodwill within the year following the Cutex International Acquisition Date. In determining the estimated fair values of net assets acquired and resulting goodwill related to the Cutex International Acquisition, the Company considered, among other factors, the analysis of Cutex International's historical financial performance and an estimate of the future performance of the acquired business, as well as market participants' intended use of the acquired assets. Factors contributing to the purchase price resulting in the recognition of goodwill include the anticipated benefits the Company expects to achieve through the expansion of its nail product portfolio. Both the intangible assets acquired and goodwill are not deductible for income tax purposes. | 2. BUSINESS COMBINATIONS The CBBeauty Group Acquisition On April 21, 2015 (the "CBB Acquisition Date"), the Company completed the CBB Acquisition for a total cash consideration of $48.6 million . CBB develops, manufactures, markets and distributes fragrances and other beauty products under various celebrity, lifestyle and fashion brands licensed from third parties, principally through department stores and selective distribution in international territories. On the CBB Acquisition Date, the Company used cash on hand to pay approximately 70% of the total cash consideration, or $34.6 million . The remaining $14.0 million of the total cash consideration is payable in equal annual installments over 4 years from the CBB Acquisition Date, subject to the selling shareholders' compliance with certain service conditions. These remaining installments are recorded as a component of SG&A expenses ratably over the 4-year installment The Company accounted for the CBB Acquisition as a business combination during the second quarter of 2015. The table below summarizes the allocation of the total consideration of $34.6 million paid on the CBB Acquisition Date, as well as adjustments for changes in working capital during the third quarter of 2015, with resulting goodwill, as follows: Amounts recognized at April 21, 2015 (Provisional) (a) Measurement Period Adjustments Amounts recognized at April 21, 2015 (Adjusted) Total Tangible Net Assets Acquired (b) $ 3.9 $ (1.6 ) $ 2.3 Purchased Intangible Assets (c) 11.9 0.2 12.1 Goodwill 18.8 0.7 19.5 Total consideration transferred $ 34.6 $ (0.7 ) $ 33.9 (a) As previously reported in Revlon, Inc.'s second quarter 2015 Form 10-Q. (b) Total net assets acquired in the CBB Acquisition are comprised primarily of inventory, trade receivables and accounts payable. (c) Purchased intangible assets include customer networks valued at $7.0 million , distribution rights valued at $3.5 million and trade names valued at $1.6 million , with weighted average remaining useful lives of 14 , 5 and 8 years, respectively. In determining the estimated fair values of net assets acquired and resulting goodwill related to the CBB Acquisition, the Company considered, among other factors, the analysis of CBB's historical financial performance and an estimate of the future performance of the acquired business, as well as market participants' intended use of the acquired assets. Both the intangible assets acquired and goodwill are not deductible for income tax purposes. Other Acquisitions Completed in 2015 The Company also completed the following acquisitions during 2015: Purchase Consideration Total Net Assets Acquired Purchased Intangible Assets Goodwill American Crew and Revlon Professional Distribution Rights - Australia (1) $ 4.4 $ 1.4 $ 2.9 $ — Cutex U.S. (2) 8.1 1.0 5.2 1.9 Total $ 12.5 $ 2.4 $ 8.1 $ 1.9 (1) In March 2015, the Company re-acquired rights to distribute its American Crew and Revlon Professional brands in Australia. The Company acquired customer relationships valued at $2.9 million , with weighted average remaining useful lives of 10 years . (2) In October 2015, the Company acquired the U.S. Cutex business and related assets from Cutex Brands, LLC (the "Cutex Acquisition"). The Company acquired inventory at fair value of approximately $1.0 million , trade names valued at $3.6 million and customer relationships valued at $1.6 million , with weighted average remaining useful lives of 10 years . The results of operations of these acquisitions are included in the Company's statement of income (loss) commencing on each respective acquisition date. The American Crew and Revlon Professional distribution rights acquisition is included within the Company's Professional segment and the Cutex U.S. acquisition is included within the Company's Consumer segment. The results of operations of these acquisitions did not have a material impact on the Company's results of operations for 2015. The Colomer Acquisition On October 9, 2013 (the "Colomer Acquisition Date"), Products Corporation completed its acquisition of The Colomer Group Participations, S.L. ("Colomer" and the "Colomer Acquisition"), a Spanish company now known as Beautyge Participations, S.L., which primarily manufactures, markets and sells professional products to hair and nail salons and distributors to professional salons under brands such as Revlon Professional , CND , including CND Shellac , and American Crew , as well as retail and multi-cultural product lines, including under the Creme of Nature brand. The cash purchase price for the Colomer Acquisition was $664.5 million , which Products Corporation financed with proceeds from the Acquisition Term Loan under the Amended Term Loan Facility (both as hereinafter defined). The Colomer Acquisition provides the Company with broad brand, geographic and retailer diversification and substantially expands the Company's business, providing both distribution into new retailers and cost synergy opportunities. The results of operations of the Colomer business have been included, in the Company’s Consolidated Financial Statements, commencing on the Colomer Acquisition Date. For 2015, 2014 and 2013, respectively, the Company incurred acquisition and integration costs related to the Colomer Acquisition, summarized as follows: Year Ended December 31, 2015 2014 2013 Acquisition costs $ — $ 0.5 $ 12.9 Integration costs 2.1 5.9 12.5 Total acquisition and integration costs $ 2.1 $ 6.4 $ 25.4 There were no acquisition costs in 2015 related to the Colomer Acquisition. Acquisition costs in 2014 and 2013 primarily included legal fees related to the Colomer Acquisition. Integration costs consist of non-restructuring costs related to integrating Colomer's operations into the Company's business. Integration costs incurred during 2015 primarily included legal and professional fees. Integration costs incurred during 2014 primarily included employee-related costs related to management changes and audit-related fees. For 2013, integration costs primarily related to an impairment of in-progress capitalized software development costs, as well as employee-related costs due to management changes. Purchase Price Allocation The Company accounted for the Colomer Acquisition as a business combination during the fourth quarter of 2013. The table below summarizes the amounts recognized for assets acquired and liabilities assumed as of the Colomer Acquisition Date, as well as adjustments made in 2014 after the Colomer Acquisition Date to the amounts initially recorded in 2013 (the "Measurement Period Adjustments"). Accordingly, the Company retrospectively adjusted its consolidated balance sheet as of December 31, 2013 to reflect these Measurement Period Adjustments. The Measurement Period Adjustments did not have a material impact on the Company's Consolidated Statements of Income and Comprehensive Income (Loss) for 2014. The Company recorded the total consideration of $664.5 million based on the respective estimated fair values of the net assets acquired on the Colomer Acquisition Date with resulting goodwill, as follows: Amounts Previously Recognized as of October 9, 2013 (Provisional) (a) Measurement Period Adjustments Amounts Recognized as of Colomer Acquisition Date (Adjusted) Cash and cash equivalents $ 36.9 $ — $ 36.9 Trade receivables 83.9 — 83.9 Inventories 75.1 — 75.1 Prepaid expenses and other 31.3 — 31.3 Property, plant and equipment 96.7 — 96.7 Intangible assets (b) 292.7 5.4 298.1 Goodwill (b)(c) 255.7 (2.4 ) 253.3 Deferred tax asset - noncurrent 53.1 — 53.1 Other assets (c) 1.9 3.9 5.8 Total assets acquired 927.3 6.9 934.2 Accounts payable 48.0 — 48.0 Accrued expenses and other 65.6 — 65.6 Long-term debt 0.9 — 0.9 Long-term pension and other benefit plan liabilities 4.5 — 4.5 Deferred tax liability (b) 123.3 2.1 125.4 Other long-term liabilities (c) 20.5 4.8 25.3 Total liabilities assumed 262.8 6.9 269.7 Total consideration $ 664.5 $ — $ 664.5 (a) As previously reported in Revlon, Inc.'s 2013 and 2014 Annual Reports on Form 10-K. (b) The Measurement Period Adjustments to intangible assets, deferred tax liability and goodwill in the first quarter of 2014 related to a change in assumptions used to calculate the fair value of an acquired customer relationship intangible asset, which increased the intangible asset by $5.4 million and extended the life of the asset from 10 to 20 years, increased deferred tax liabilities by $2.1 million and resulted in a net decrease to goodwill of $3.3 million . (c) The Company recorded a $3.9 million income tax adjustment to the beginning tax balance within other assets and a $4.8 million adjustment to other long-term liabilities, resulting in a net increase to goodwill of $0.9 million . In determining the fair values of net assets acquired in the Colomer Acquisition and resulting goodwill, the Company considered, among other factors, an analysis of Colomer's historical financial performance and an estimate of the future performance of the acquired business, as well as market participants' intended use of the acquired assets. The intangible assets acquired in the Colomer Acquisition, based on the fair values of the identifiable intangible assets, were as follows: Fair Values at October 9, 2013 Weighted Average Useful Life (in years) Trade names, indefinite-lived $ 108.6 Indefinite Trade names, finite-lived 109.4 5 - 20 Customer relationships 62.4 15 - 20 License agreement 4.1 10 Internally-developed IP 13.6 10 Total acquired intangible assets $ 298.1 Unaudited Pro Forma Results The unaudited pro forma results include the historical consolidated statements of operations of the Company and Colomer, giving effect to the Colomer Acquisition and related financing transactions as if they had occurred on January 1, 2013. The Company's pro forma consolidated net sales and income from continuing operations, before income taxes for 2013, are presented in the following table: Unaudited Pro Forma Results Year Ended December 31, 2013 Net sales $ 1,908.9 Income from continuing operations, before income taxes 135.2 The pro forma results, prepared in accordance with U.S. GAAP, include the following pro forma adjustments related to the Colomer Acquisition: (i) as a result of an $11.1 million fair value adjustment to acquired inventory at the Colomer Acquisition Date, the Company recognized $8.5 million of the increase in cost of sales in its historical 2013 consolidated financial statements. The pro forma adjustments included an adjustment to reverse the $8.5 million recognized in 2013 cost of sales and recognize the full $11.1 million in 2012 cost of sales; (ii) the pro forma increase in depreciation and amortization expense based on the $14.3 million of fair value adjustments to property, plant and equipment and acquired finite-lived intangible assets recorded in connection with the Colomer Acquisition in 2013; (iii) the elimination of $9.0 million of goodwill impairment charges recognized by Colomer in 2013; (iv) the elimination of $25.8 million of acquisition and integration costs recognized by the Company and Colomer in 2013; (v) the elimination of $3.6 million of Colomer's debt facility fees recognized in 2013, as the debt facility was closed on the Colomer Acquisition Date; and (vi) the $19.4 million pro forma increase in interest expense and amortization of debt issuance costs in 2013, resulting from the issuance of the Acquisition Term Loan used by Products Corporation to finance the Colomer Acquisition. The unaudited pro forma results do not include: (1) any revenue or cost reductions that may be achieved through the business combination; or (2) the impact of non-recurring items directly related to the business combination. The unaudited pro forma results are not necessarily indicative of the operating results that would have occurred if the Colomer Acquisition had been completed as of the date for which the pro forma financial information is presented. In addition, the unaudited pro forma results do not purport to project the future consolidated operating results of the combined company. |
RESTRUCTURING CHARGES - 10K
RESTRUCTURING CHARGES - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Restructuring Charges [Abstract] | ||
RESTRUCTURING CHARGES | 3. RESTRUCTURING CHARGES 2015 Efficiency Program In September 2015, the Company initiated certain restructuring actions to drive certain organizational efficiencies across the Company's Consumer and Professional segments (the "2015 Efficiency Program"). These actions, which commenced during 2015 and are planned to occur through 2017, are expected to reduce general and administrative expenses within the Consumer and Professional segments. Of the $1.2 million of restructuring and related charges recognized in the first six months of 2016 for the 2015 Efficiency Program, $0.5 million related to the Consumer segment and $0.6 million related to the Professional segment, with the remaining charges included within unallocated corporate expenses. The Company expects to recognize total restructuring and related charges for the 2015 Efficiency Program of $11.7 million by the end of 2017, of which $6.9 million is expected to relate to the Consumer segment, $4.4 million is expected to relate to the Professional segment and the remaining charge relates to unallocated corporate expenses. A summary of the restructuring and related charges incurred through June 30, 2016 in connection with the 2015 Efficiency Program is presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Charges incurred through December 31, 2015 $ 9.4 $ 0.1 $ 9.5 Charges incurred in the six months ended June 30, 2016 $ 0.6 $ 0.6 $ 1.2 Cumulative charges incurred through June 30, 2016 $ 10.0 $ 0.7 $ 10.7 Total expected charges $ 10.0 $ 1.7 $ 11.7 Of the cumulative $10.7 million of restructuring and related charges recognized through the second quarter of 2016 related to the 2015 Efficiency Program, $6.5 million related to the Consumer segment, $3.8 million related to the Professional segment and the remaining charges related to unallocated corporate expenses. The Company expects that cash payments will total approximately $12 million in connection with the 2015 Efficiency Program, including $0.2 million for capital expenditures (which capital expenditures are excluded from total restructuring and related charges expected to be recognized for the 2015 Efficiency Program), of which $1.6 million was paid in the six months ended June 30, 2016 and $2.8 million was paid in 2015. A total of $6.2 million is expected to be paid during the remainder of 2016, with the remaining balance expected to be paid in 2017. Restructuring Reserve The related liability balance and activity for each of the Company's restructuring programs are presented in the following table: Utilized, Net Balance Beginning of Year (Income) Expense, Net Foreign Currency Translation Cash Non-cash Balance End of Period 2015 Efficiency Program: Employee severance and other personnel benefits $ 6.6 $ 0.6 $ — $ (1.2 ) $ — $ 6.0 Other 0.1 0.6 — (0.4 ) (0.1 ) 0.2 Integration Program: (a) Employee severance and other personnel benefits 0.8 — — (0.8 ) — — Other 0.1 — — — — 0.1 December 2013 Program: (b) Employee severance and other personnel benefits 1.2 — — — — 1.2 Other — — — — — — Other immaterial actions: Employee severance and other personnel benefits 2.3 0.3 — (1.0 ) — 1.6 Other 0.7 0.3 — (0.3 ) — 0.7 Total restructuring reserve $ 11.8 $ 1.8 $ — $ (3.7 ) $ (0.1 ) $ 9.8 ( a) Following Products Corporation's October 2013 acquisition of The Colomer Group Participations, S.L. ("Colomer" and the "Colomer Acquisition"), the Company implemented actions to integrate Colomer's operations into the Company's business which reduced costs across the Company's businesses and generated synergies and operating efficiencies within the Company's global supply chain and consolidated offices and back office support (all such actions, together, the "Integration Program"). The Integration Program was substantially completed as of December 31, 2015. (b) In December 2013, the Company announced restructuring actions that primarily included exiting its direct manufacturing, warehousing and sales business operations in mainland China (the "December 2013 Program"). The December 2013 Program resulted in the elimination of approximately 1,100 positions in 2014, primarily in China. At June 30, 2016 , $9.8 million of the restructuring reserve balance was included within accrued expenses and other in the Company's Consolidated Balance Sheet. At December 31, 2015, $11.8 million of the restructuring reserve balance was included within accrued expenses in the Company's Consolidated Balance Sheet. | 3. RESTRUCTURING CHARGES 2015 Efficiency Program In September 2015, the Company initiated certain restructuring actions to drive certain organizational efficiencies across the Company's Consumer and Professional segments (the "2015 Efficiency Program"). These actions, which occurred during 2015 and are planned to occur through 2017, are expected to reduce general and administrative expenses within the Consumer and Professional segments. Of the $9.5 million of restructuring and related charges recognized in 2015 for the 2015 Efficiency Program, $6.0 million related to the Consumer segment and $3.2 million related to the Professional segment, with the remaining charges included within unallocated corporate expenses. The Company expects to recognize total restructuring and related charges for the 2015 Efficiency Program of $10.1 million by the end of 2017, of which $6.1 million relates to the Consumer segment, $3.7 million relates to the Professional segment and the remaining charge relates to unallocated corporate expenses. A summary of the restructuring and related charges incurred through December 31, 2015 in connection with the 2015 Efficiency Program is presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Charges incurred through December 31, 2015 $ 9.4 $ 0.1 $ 9.5 Total expected charges $ 9.5 $ 0.6 $ 10.1 The Company expects that cash payments will total approximately $10.3 million in connection with the 2015 Efficiency Program, including $0.2 million for capital expenditures (which capital expenditures are excluded from total restructuring and related charges expected to be recognized for the 2015 Efficiency Program), of which $2.8 million was paid in 2015, $5.8 million is expected to be paid in 2016, and the remaining balance expected to be paid in 2017. Integration Program Following Products Corporation's October 2013 Colomer Acquisition, the Company announced in January 2014 that it was implementing actions to integrate Colomer’s operations into the Company’s business, as well as additional restructuring actions identified to reduce costs across the Company’s businesses (all such actions, together, the “Integration Program”). The Company recognized total restructuring charges, capital expenditures and related non-restructuring costs under the Integration Program of approximately $45 million in the aggregate over the periods described below. The Integration Program was designed to deliver cost reductions throughout the combined organization by generating synergies and operating efficiencies within the Company’s global supply chain and consolidating offices and back office support, and other actions which were designed to reduce selling, general and administrative ("SG&A") expenses. The Company completed the Integration Program as of December 31, 2015. The approximately $45 million of total non-restructuring costs, capital expenditures and restructuring charges under the Integration Program referred to above consisted of the following: 1. $2.1 million , $5.9 million and $12.5 million of non-restructuring integration costs recognized in 2015, 2014 and 2013, respectively. Such costs were reflected within acquisition and integration costs in the Company's Consolidated Statements of Income and Comprehensive Income (Loss) and are related to combining Colomer’s operations into the Company’s business; 2. Total integration-related capital expenditures of $5.3 million , of which $0.9 million and $4.4 million were paid during 2015 and 2014, respectively; and 3. Total restructuring and related charges of $18.3 million , of which $(1.8) million and $20.1 million were recognized during 2015 and 2014, respectively. A summary of the restructuring and related charges for the Integration Program incurred through December 31, 2015 are as follows: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Inventory Write-offs and Other Manufacturing-Related Costs (a) Other Charges (b) Total Restructuring and Related Charges Charges incurred through December 31, 2014 $ 17.3 $ 1.6 $ 18.9 $ 0.6 $ 0.6 $ 20.1 Charges incurred through December 31, 2015 $ (3.4 ) $ 0.6 $ (2.8 ) $ 0.7 $ 0.3 $ (1.8 ) Total charges $ 13.9 $ 2.2 $ 16.1 $ 1.3 $ 0.9 $ 18.3 (a) Inventory write-offs and other manufacturing-related costs are recorded within cost of sales within the Company’s Consolidated Statements of Income and Comprehensive Income (Loss). (b) Other charges are recorded within SG&A expenses within the Company’s Consolidated Statements of Income and Comprehensive Income (Loss). During 2015, the Company recorded a $1.8 million benefit related to a change in estimate in connection with the Integration Program, of which $3.1 million is related to the Consumer segment, partially offset by additional charges of $1.3 million related to the Professional segment. During 2014, the Company recorded $20.1 million of charges related to the Integration Program, of which $10.2 million related to the Consumer segment and $9.9 million related to the Professional segment. The Company expects that cash payments related to the restructuring and related charges in connection with the Integration Program will total approximately $18 million , of which $6.7 million was paid during 2015 and $9.6 million was paid during 2014. The remaining balance is expected to be paid in 2016. December 2013 Program In December 2013, the Company announced restructuring actions that included exiting its direct manufacturing, warehousing and sales business operations in mainland China, as well as implementing other immaterial restructuring actions outside the U.S. that are expected to generate operating efficiencies (the "December 2013 Program"). These restructuring actions resulted in the Company eliminating approximately 1,100 positions in 2014, primarily in China, which included eliminating in the first quarter of 2014 approximately 940 beauty advisors retained indirectly through a third-party agency. The charges incurred for the December 2013 Program relate entirely to the Consumer segment. A summary of the restructuring and related charges incurred through 2015 in connection with the December 2013 Program are presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Allowances and Returns Inventory Write-offs Other Charges Total Restructuring and Related Charges Charges incurred through December 31, 2014 $ 8.6 $ 0.3 $ 8.9 $ 6.5 $ 3.1 $ 0.4 $ 18.9 Charges incurred through December 31, 2015 $ — $ — $ — $ — $ — $ — $ — Total expected charges $ 8.6 $ 0.3 $ 8.9 $ 6.5 $ 3.1 $ 0.4 $ 18.9 The Company expects net cash payments related to the December 2013 Program to total approximately $17 million , of which nil was paid in 2015, $15.5 million was paid during 2014 and $0.1 million was paid in 2013. The remaining balance is expected to be paid in 2016. Other Immaterial Actions In 2015, the Company recorded $3.9 million of restructuring and related charges for other immaterial restructuring actions within both the Consumer and Professional segments, primarily related to exit and disposal costs associated with the Company's Hong Kong subsidiary. In 2014, the Company recorded net charges totaling $2.7 million of restructuring and related charges, for other immaterial restructuring actions within both the Consumer and Professional segments, due to $5.3 million of charges primarily related to employee-related costs, partially offset by a $ 2.6 million gain related to the sale of property, plant and equipment. Restructuring Reserve The related liability balance and activity for each of the Company's restructuring programs, as summarized above, are presented in the following table: Utilized, Net Balance Beginning of Year (Income) Expense, Net Foreign Currency Translation Cash Non-cash Balance End of Year 2015 2015 Efficiency Program: Employee severance and other personnel benefits $ — $ 9.4 $ — $ (2.8 ) $ — $ 6.6 Other — 0.1 — — — 0.1 Integration Program: Employee severance and other personnel benefits 9.6 (3.4 ) (0.2 ) (5.2 ) — 0.8 Other 0.1 0.6 — (0.6 ) — 0.1 December 2013 Program: Employee severance and other personnel benefits 1.2 — — — — 1.2 Other — — — — — — Other immaterial actions: Employee severance and other personnel benefits 3.1 1.7 (0.1 ) (2.4 ) — 2.3 Other — 2.1 — (1.4 ) — 0.7 Total restructuring reserve $ 14.0 $ 10.5 $ (0.3 ) $ (12.4 ) $ — $ 11.8 2014 Integration Program: Employee severance and other personnel benefits $ — $ 17.3 $ (0.1 ) $ (7.6 ) $ — $ 9.6 Other — 1.6 — (1.2 ) (0.3 ) 0.1 December 2013 Program: Employee severance and other personnel benefits 9.0 (0.5 ) (0.2 ) (7.3 ) 0.2 1.2 Other 0.5 (0.2 ) — (0.3 ) — — Other immaterial actions: Employee severance and other personnel benefits (a) 2.7 5.0 (0.2 ) (4.5 ) 0.1 3.1 Other (a) 1.5 0.2 — (1.7 ) — — Total restructuring reserve $ 13.7 $ 23.4 $ (0.5 ) $ (22.6 ) $ — $ 14.0 Gain on sale of property, plant and equipment for 2014 other immaterial actions (2.6 ) Portion of restructuring benefits recorded within (loss) income from discontinued operations (b) 0.5 Total restructuring charges and other, net, from continuing operations $ 21.3 (a) Includes reserve of $4.2 million remaining at the end of 2013 related to the Company's exit of its then-owned manufacturing facility in France and its then-leased manufacturing facility in Maryland; rightsizing its organizations in France and Italy; and realigning its operations in Latin America and Canada, or the "September 2012 Program." (b) Refer to Note 4, "Discontinued Operations" for additional information regarding the Company's exit of its direct manufacturing, warehousing and sales business operations in mainland China. As of December 31, 2015 , $11.8 million of the restructuring reserve balance was included within accrued expenses and other in the Company's Consolidated Balance Sheet. At December 31, 2014, $13.7 million of the restructuring reserve balance was included within accrued expenses and other and $0.3 million was included within other long-term liabilities in the Company's Consolidated Balance Sheet. |
DISCONTINUED OPERATIONS - 10K
DISCONTINUED OPERATIONS - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Discontinued Operations [Abstract] | ||
DISCONTINUED OPERATIONS | 4. DISCONTINUED OPERATIONS On December 30, 2013, the Company announced that it was implementing the December 2013 Program, which primarily included exiting its direct manufacturing, warehousing and sales business operations in mainland China. The results of the China discontinued operations are included within Loss from discontinued operations, net of taxes, and relate entirely to the Consumer segment. The summary comparative financial results of discontinued operations are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net sales $ — $ — $ — $ — Loss from discontinued operations, before taxes (2.5 ) — (2.1 ) (0.1 ) Provision for income taxes — — — — Loss from discontinued operations, net of taxes (2.5 ) — (2.1 ) (0.1 ) Assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consist of the following: June 30, 2016 December 31, 2015 Cash and cash equivalents $ 1.8 $ 2.0 Trade receivables, net 0.2 0.2 Total current assets 2.0 2.2 Total assets $ 2.0 $ 2.2 Accounts payable $ 0.6 $ 0.7 Accrued expenses and other 3.5 3.6 Total current liabilities 4.1 4.3 Total liabilities $ 4.1 $ 4.3 | 4. DISCONTINUED OPERATIONS On December 30, 2013, the Company announced that it was implementing the December 2013 Program, which primarily included exiting its direct manufacturing, warehousing and sales business operations in mainland China (refer to Note 3, "Restructuring Charges - December 2013 Program"). The results of the China discontinued operations are included within (loss) income from discontinued operations, net of taxes, and relate entirely to the Consumer segment. The summary comparative financial results of discontinued operations are as follows: Year Ended December 31, 2015 2014 2013 Net sales $ — $ 2.6 $ 13.8 (Loss) income from discontinued operations, before taxes (3.2 ) 1.5 (30.8 ) Provision for income taxes — 0.2 (0.4 ) (Loss) income from discontinued operations, net of taxes (3.2 ) 1.3 (30.4 ) (a) Net sales during 2014 include favorable adjustments to sales returns related to the Company's exit of its direct manufacturing, warehousing and sales business operations in mainland China. (b) Included in loss from discontinued operations, before taxes for 2013 are $20.0 million of restructuring and related charges related to the December 2013 Program. Refer to Note 3, "Restructuring Charges - December 2013 Program," for related disclosures. Assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consist of the following: December 31, 2015 December 31, 2014 Cash and cash equivalents $ 2.0 $ 2.4 Trade receivables, net 0.2 0.2 Total current assets 2.2 2.6 Total assets $ 2.2 $ 2.6 Accounts payable $ 0.7 $ 0.2 Accrued expenses and other 3.6 3.9 Total current liabilities 4.3 4.1 Total liabilities $ 4.3 $ 4.1 |
INVENTORIES - 10K
INVENTORIES - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Inventories [Abstract] | ||
INVENTORIES | 5. INVENTORIES June 30, 2016 December 31, 2015 Raw materials and supplies $ 61.9 $ 58.2 Work-in-process 12.0 8.3 Finished goods 135.7 117.3 $ 209.6 $ 183.8 | 5. INVENTORIES December 31, 2015 2014 Raw materials and supplies $ 58.2 $ 47.2 Work-in-process 8.3 9.0 Finished goods 117.3 100.4 $ 183.8 $ 156.6 |
PREPAID EXPENSES AND OTHER - 10
PREPAID EXPENSES AND OTHER - 10K | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expenses and Other [Abstract] | |
PREPAID EXPENSES AND OTHER | 6. PREPAID EXPENSES AND OTHER December 31, 2015 2014 Prepaid expenses $ 18.2 $ 17.3 Other 35.1 27.3 $ 53.3 $ 44.6 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - 10K | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 7. PROPERTY, PLANT AND EQUIPMENT December 31, 2015 2014 Land and improvements $ 10.7 $ 11.7 Building and improvements 84.7 83.9 Machinery, equipment and capital leases 213.0 198.7 Office furniture, fixtures and capitalized software 118.1 104.2 Leasehold improvements 29.0 28.1 Construction-in-progress 31.5 35.9 Property, plant and equipment, gross 487.0 462.5 Accumulated depreciation and amortization (271.7 ) (250.5 ) Property, plant and equipment, net $ 215.3 $ 212.0 Depreciation and amortization expense for 2015 , 2014 and 2013 was $37.0 million , $36.9 million and $25.2 million , respectively. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets, Net [Abstract] | ||
GOODWILL AND INTANGIBLE ASSETS, NET | 6. GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The following table presents the changes in goodwill by segment during the six months ended June 30, 2016: Consumer Professional Other Total Balance at January 1, 2016 $ 210.1 $ 240.7 $ 18.9 $ 469.7 Goodwill acquired (a) 8.6 — — 8.6 Foreign currency translation adjustment — 0.2 (1.8 ) (1.6 ) Balance at June 30, 2016 $ 218.7 $ 240.9 $ 17.1 $ 476.7 (a) On May 31, 2016, the Company completed the Cutex International Acquisition. See Note 2, "Business Combinations," to the Unaudited Consolidated Financial Statements in this Form 10-Q for details related to the Cutex International Acquisition. Intangible Assets, Net The following tables present details of the Company's total intangible assets: June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Trademarks and Licenses $ 147.2 $ (42.3 ) $ 104.9 Customer relationships 132.5 (24.4 ) 108.1 Patents and Internally-Developed IP 17.9 (5.2 ) 12.7 Distribution rights 3.1 (0.9 ) 2.2 Total finite-lived intangible assets $ 300.7 $ (72.8 ) $ 227.9 Indefinite-lived intangible assets: Trade Names $ 101.0 $ — $ 101.0 Total indefinite-lived intangible assets $ 101.0 $ — $ 101.0 Total intangible assets $ 401.7 $ (72.8 ) $ 328.9 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Trademarks and Licenses $ 145.0 $ (36.0 ) $ 109.0 Customer relationships 118.8 (20.5 ) 98.3 Patents and Internally-Developed IP 16.8 (4.0 ) 12.8 Distribution rights 3.5 (0.6 ) 2.9 Total finite-lived intangible assets $ 284.1 $ (61.1 ) $ 223.0 Indefinite-lived intangible assets: Trade Names $ 95.0 $ — $ 95.0 Total indefinite-lived intangible assets $ 95.0 $ — $ 95.0 Total intangible assets $ 379.1 $ (61.1 ) $ 318.0 Amortization expense for finite-lived intangible assets was $6.1 million and $5.3 million for the three months ended June 30, 2016 and 2015, respectively. Amortization expense for finite-lived intangible assets was $12.0 million and $10.4 million for the six months ended June 30, 2016 and 2015, respectively. Estimated Amortization Expense 2016 $ 11.5 2017 23.6 2018 22.7 2019 20.1 2020 19.5 Thereafter 130.5 Total $ 227.9 | 8. GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The following table presents the changes in goodwill by segment during each of 2015 and 2014: Consumer Professional Other Total Balance at January 1, 2014 $ 217.9 $ 254.4 $ — $ 472.3 Foreign currency translation adjustment — (8.2 ) — (8.2 ) Balance at December 31, 2014 $ 217.9 $ 246.2 $ — $ 464.1 Goodwill acquired 1.9 — 19.5 21.4 Foreign currency translation adjustment — (5.5 ) (0.6 ) (6.1 ) Goodwill impairment charge $ (9.7 ) $ — $ — $ (9.7 ) Balance at December 31, 2015 $ 210.1 $ 240.7 $ 18.9 $ 469.7 The goodwill acquired during 2015 relates to: (i) $19.5 million of goodwill acquired in the CBB Acquisition, which was assigned to the Company's Other segment; and (ii) $1.9 million of goodwill acquired in the Cutex Acquisition. See Note 1, "Description of the Business and Summary of Significant Accounting Policies," for further discussion of the "Other" segment and Note 2, "Business Combinations," for further discussion of the CBB Acquisition. For 2015, the Company utilized the two-step process as prescribed by ASC 350, Intangibles - Goodwill and Other, in order to identify potential impairment for each of its reporting units. In the first step of this test, the Company compared the fair value of each of the Company's reporting units, determined based upon discounted estimated future cash flows, to the respective carrying amount, including goodwill. Where the fair value of such reporting unit exceeded the carrying amount, no further work was required and no impairment loss was recognized. The results of the step one test concluded that impairment indicators may have existed within the Global Color Brands reporting unit as a result of the observed decline in sales of the Pure Ice nail enamel brand, primarily driven by the effects of declines in the promotional activity for the Pure Ice brand at retailers and, accordingly, the Company performed step two of the goodwill impairment test for this reporting unit. In the second step, the Company measured the potential impairment by comparing the implied fair value of the Global Color Brands reporting unit’s goodwill with the carrying amount of the goodwill at September 30, 2015. The implied fair value of goodwill was determined in the same manner as the amount of goodwill recognized in a business combination, where the estimated fair value of the reporting unit was allocated to all the assets and liabilities of that reporting unit (including both recognized and unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the estimated fair value of the reporting unit was the purchase price paid. When the carrying amount of the reporting unit's goodwill is greater than the implied fair value of that reporting unit's goodwill, an impairment loss is recognized within operations. The Company determined the fair value of the Global Color Brands reporting unit using discounted estimated future cash flows. The weighted average cost of capital in testing the Global Color Brands reporting unit for impairment was 13.0% with a perpetual growth rate of 2.0% . As a result of this annual impairment test, the Company recognized a $9.7 million non-cash goodwill impairment charge related to the Global Color Brands reporting unit in the fourth quarter of 2015. Intangible Assets, Net The following tables present details of the Company's total intangible assets: December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and Licenses $ 145.0 $ (36.0 ) $ 109.0 15 Customer relationships 118.8 (20.5 ) 98.3 16 Patents and Internally-Developed IP 16.8 (4.0 ) 12.8 10 Distribution rights 3.5 (0.6 ) 2.9 5 Total finite-lived intangible assets $ 284.1 $ (61.1 ) $ 223.0 Indefinite-lived intangible assets: Trade Names $ 95.0 $ — $ 95.0 Total indefinite-lived intangible assets $ 95.0 $ — $ 95.0 Total intangible assets $ 379.1 $ (61.1 ) $ 318.0 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and Licenses $ 140.5 $ (23.5 ) $ 117.0 14 Customer relationships 109.1 (13.4 ) 95.7 17 Patents and Internally-Developed IP 16.2 (2.4 ) 13.8 10 Total finite-lived intangible assets $ 265.8 $ (39.3 ) $ 226.5 Indefinite-lived intangible assets: Trade Names $ 101.3 $ — $ 101.3 Total indefinite-lived intangible assets $ 101.3 $ — $ 101.3 Total intangible assets $ 367.1 $ (39.3 ) $ 327.8 Amortization expense for finite-lived intangible assets was $22.4 million , $21.3 million and $10.4 million for 2015, 2014 and 2013, respectively. The following table reflects the estimated future amortization expense, a portion of which is subject to exchange rate fluctuations, for the Company's finite-lived intangible assets as of December 31, 2015: Estimated Amortization Expense 2016 $ 22.7 2017 22.3 2018 21.4 2019 18.9 2020 18.2 Thereafter 119.5 Total $ 223.0 |
ACCRUED EXPENSES AND OTHER - 10
ACCRUED EXPENSES AND OTHER - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Accrued Expenses and Other [Abstract] | ||
ACCRUED EXPENSES AND OTHER | 7. ACCRUED EXPENSES AND OTHER June 30, 2016 December 31, 2015 Sales returns and allowances $ 50.8 $ 61.1 Compensation and related benefits 49.4 75.6 Advertising and promotional costs 37.0 38.4 Taxes 23.4 20.8 Interest 12.3 12.4 Restructuring reserve 9.8 11.8 Other 50.5 52.3 $ 233.2 $ 272.4 | 9. ACCRUED EXPENSES AND OTHER December 31, 2015 2014 Sales returns and allowances $ 61.1 $ 70.6 Compensation and related benefits 75.6 66.8 Advertising and promotional costs 38.4 44.9 Taxes 20.8 23.4 Interest 12.4 11.0 Restructuring reserve 11.8 13.7 Other 52.3 42.9 $ 272.4 $ 273.3 |
SHORT TERM BORROWINGS - 10K
SHORT TERM BORROWINGS - 10K | 12 Months Ended |
Dec. 31, 2015 | |
Short Term Borrowings [Abstract] | |
SHORT-TERM BORROWINGS | 10. SHORT-TERM BORROWINGS Products Corporation had outstanding short-term borrowings (excluding borrowings under the Amended Credit Agreements or 2011 Credit Agreements (as hereinafter defined), which are reflected in Note 11, "Long-Term Debt"), aggregating $11.3 million and $6.6 million at December 31, 2015 and 2014, respectively. The weighted average interest rate on these short-term borrowings outstanding at December 31, 2015 and 2014 was 4.9% and 6.2% , respectively. |
LONG-TERM DEBT - 10K
LONG-TERM DEBT - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Long-Term Debt [Abstract] | ||
LONG-TERM DEBT | 8. LONG-TERM DEBT June 30, 2016 December 31, 2015 Amended Term Loan Facility: Acquisition Term Loan due 2019, net of discounts and debt issuance costs (a) $ 648.5 $ 662.1 Amended Term Loan Facility: 2011 Term Loan due 2017, net of discounts and debt issuance costs (a) 648.2 658.5 Amended Revolving Credit Facility (b) — — 5¾% Senior Notes due 2021, net of debt issuance costs (c) 493.1 492.5 Spanish Government Loan due 2025 (d) 0.6 0.6 1,790.4 1,813.7 Less current portion (*) (6.8 ) (30.0 ) $ 1,783.6 $ 1,783.7 (*) At December 31, 2015, the Company classified $30.0 million as the current portion of long-term debt, which was comprised of a $23.2 million required “excess cash flow” prepayment (as defined under the Amended Term Loan Agreement, as hereinafter defined) that was paid on February 29, 2016, and the Company’s regularly scheduled $1.7 million quarterly principal amortization payments (after giving effect to such prepayment) due in 2016. (a) See Note 17, "Subsequent Events," to the Unaudited Consolidated Financial Statements in this Form 10-Q for debt-related matters that occurred subsequent to the second quarter of 2016 and see Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding Products Corporation's Amended Term Loan Agreement, which facility is comprised of: (i) the term loan due November 19, 2017 in the original aggregate amount of $675.0 million (the "2011 Term Loan"); and (ii) the term loan due October 8, 2019 in the original aggregate amount of $700.0 million (the "Acquisition Term Loan") which, respectively, had $651.4 million and $658.6 million in aggregate principal balance outstanding at June 30, 2016 (together, the "Amended Term Loan Agreement"). (b) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding Products Corporation's existing $175.0 million asset-based, multi-currency revolving credit facility (the "Amended Revolving Credit Facility") which matures on the earlier of August 14, 2018 and the date that is 90 days prior to the earliest maturity date of any term loans then outstanding under the Amended Term Loan Agreement. (c) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding Products Corporation's 5¾% Senior Notes that mature on February 15, 2021. The aggregate principal amount outstanding at June 30, 2016 was $500 million . (d) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding the euro-denominated loan payable to the Spanish government that matures on June 30, 2025. 2016 Debt Related Transaction Amended Term Loan Facility - Excess Cash Flow Payment On February 29, 2016, Products Corporation prepaid $23.2 million of indebtedness, representing 50% of its 2015 “excess cash flow” as defined under the Amended Term Loan Agreement, in accordance with the terms of its Amended Term Loan Facility. The prepayment was applied on a ratable basis between the principal amounts outstanding under the 2011 Term Loan and the Acquisition Term Loan. The amount of the prepayment that was applied to the 2011 Term Loan reduced the principal amount outstanding by $11.5 million to $651.4 million (as all amortization payments under the 2011 Term Loan had been paid). The $11.7 million that was applied to the Acquisition Term Loan reduced Products Corporation's future annual amortization payments under the Acquisition Term Loan on a ratable basis from $6.9 million prior to the prepayment to $6.8 million after giving effect to the prepayment and through its maturity on October 8, 2019. See Note 17, "Subsequent Events," to the Unaudited Consolidated Financial Statements in this Form 10-Q for debt-related transaction details that occurred subsequent to the second quarter of 2016. Covenants Products Corporation was in compliance with all applicable covenants under the Amended Term Loan Agreement and the Amended Revolving Credit Facility as of June 30, 2016. At June 30, 2016, the aggregate principal amounts outstanding under the Acquisition Term Loan and the 2011 Term Loan were $658.6 million and $651.4 million , respectively, and availability under the $175.0 million Amended Revolving Credit Facility, based upon the calculated borrowing base less $8.3 million of outstanding undrawn letters of credit and nil then drawn on the Amended Revolving Credit Facility, was $166.7 million . Products Corporation was in compliance with all applicable covenants under its 5¾% Senior Notes Indenture as of June 30, 2016 and December 31, 2015. | 11. LONG-TERM DEBT December 31, 2015 December 31, 2014 Amended Term Loan Facility: Acquisition Term Loan due 2019, net of discounts (see (a) below) $ 672.5 $ 691.6 Amended Term Loan Facility: 2011 Term Loan due 2017, net of discounts (see (a) below) 660.6 671.6 Amended Revolving Credit Facility (see (a) below) — — 5¾% Senior Notes due 2021 (see (b) below) 500.0 500.0 Spanish Government Loan due 2025 (see (c) below) 0.6 0.7 1,833.7 1,863.9 Less current portion (*) (30.0 ) (31.5 ) $ 1,803.7 $ 1,832.4 (*) At December 31, 2015 and 2014, the Company classified $30.0 million and $31.5 million , respectively, of long-term debt as a current liability, which was primarily comprised of $23.2 million and $24.6 million of required “excess cash flow” prepayments (as defined under the Amended Term Loan Agreement, as hereinafter defined). The excess cash flow prepayment for 2015 will be paid on or prior to April 9, 2016. The 2014 excess cash flow prepayment was paid on March 12, 2015. The current portion of long-term debt also includes the Company’s annual principal amortization payments (payable in equal quarterly installments and after giving effect to such prepayments) of $6.8 million and $6.9 million due in 2016 and 2015, respectively. The Company completed the following debt transactions during 2015 and 2014. 2015 Debt Related Transaction Amended Term Loan Facility - Excess Cash Flow Payment In March 2015, Products Corporation prepaid $24.6 million of indebtedness, representing 50% of its 2014 “excess cash flow” as defined under the Amended Term Loan Agreement, in accordance with the terms of its Amended Term Loan Facility. The prepayment was applied on a ratable basis between the principal amounts outstanding under the 2011 Term Loan and the Acquisition Term Loan. The amount of the prepayment that was applied to the 2011 Term Loan reduced the principal amount outstanding by $12.1 million to $662.9 million (as all amortization payments under the 2011 Term Loan had been paid). The $12.5 million that was applied to the Acquisition Term Loan reduced Products Corporation's future regularly scheduled quarterly amortization payments under the Acquisition Term Loan on a ratable basis from $1.8 million prior to the prepayment to $1.7 million after giving effect to 2014 Debt Related Transactions February 2014 Term Loan Amendment In February 2014, Products Corporation entered into an amendment (the “February 2014 Term Loan Amendment”) to its amended term loan agreement among Products Corporation, as borrower, a syndicate of lenders and Citicorp USA, Inc. (“CUSA”), as administrative agent and collateral agent. The amended term loan agreement is comprised of: (i) the term loan due November 19, 2017, in the original aggregate principal amount of $675.0 million , which had $662.9 million in aggregate principal balance outstanding as of December 31, 2015 (the "2011 Term Loan" or the “2011 Term Loan Facility”); and (ii) the term loan due October 8, 2019, in the original aggregate principal amount of $700 million , which had $673.7 million in aggregate principal balance outstanding as of December 31, 2015 (the "Acquisition Term Loan") (together, the "Amended Term Loan Agreement" and the "Amended Term Loan Facility"). Pursuant to the February 2014 Term Loan Amendment, the interest rates applicable to Eurodollar Loans under the 2011 Term Loan bear interest at the Eurodollar Rate plus 2.5% per annum, with the Eurodollar Rate not to be less than 0.75% (compared to 3.0% and 1.0% , respectively, prior to the February 2014 Term Loan Amendment), while Alternate Base Rate Loans under the 2011 Term Loan bear interest at the Alternate Base Rate plus 1.5% , with the Alternate Base Rate not to be less than 1.75% (compared to 2.0% in each case prior to the February 2014 Term Loan Amendment) (and as each such term is defined in the Amended Term Loan Agreement). Products Corporation's Acquisition Term Loan and Products Corporation's $175.0 million asset-based, multi-currency revolving credit facility (the "Amended Revolving Credit Facility") were not amended in connection with the February 2014 Term Loan Amendment. During 2014, the Company incurred approximately $1.1 million of fees and expenses in connection with the February 2014 Term Loan Amendment, which were expensed as incurred, and wrote-off $0.8 million of unamortized debt discount and deferred financing costs as a result of the February 2014 Term Loan Amendment. These amounts, totaling $ 1.9 million , were recognized within loss on early extinguishment of debt in the Company’s Consolidated Statements of Income and Comprehensive Income (Loss) for the year ended December 31, 2014. Repayment of Non-Contributed Loan On May 1, 2014, Products Corporation used available cash on hand to optionally prepay in full the remaining $58.4 million principal amount outstanding under the non-contributed loan portion of Product Corporation's amended and restated senior subordinated term loan agreement with MacAndrews & Forbes (the "Non-Contributed Loan") that remained owing from Products Corporation to various third parties. The Non-Contributed Loan would have otherwise matured on October 8, 2014. In connection with such prepayment, the Company wrote-off $0.1 million of deferred financing costs, which were recognized within loss on early extinguishment of debt in the Company's Consolidated Statements of Income and Comprehensive Income (Loss) for 2014. Long-Term Debt Agreements (a) Amended Credit Agreements The following is a summary description of the Amended Term Loan Facility, which includes the 2011 Term Loan and the Acquisition Term Loan, and the Amended Revolving Credit Facility. Unless otherwise indicated, capitalized terms have the meanings given to them in the Amended Term Loan Agreement and/or the Amended Revolving Credit Agreement (the "Amended Credit Agreements"), as applicable. Investors should refer to the Amended Revolving Credit Agreement and/or the Amended Term Loan Agreement for complete terms and conditions, as these summary descriptions are subject to a number of qualifications and exceptions. Amended Revolving Credit Facility Availability under the Amended Revolving Credit Facility varies based on a borrowing base that is determined by the value of eligible trade receivables and eligible inventory in the U.S. and the U.K. and eligible real property and equipment in the U.S. from time to time. In January 2014, certain of Products Corporation’s U.S.-domiciled subsidiaries acquired in the Colomer Acquisition (the “Colomer U.S. Subsidiaries”) became additional guarantors under Products Corporation’s Amended Term Loan Facility and Amended Revolving Credit Facility and the 5¾% Senior Notes Indenture. In January and May 2015, certain of Product Corporation’s newly-formed U.S.-domiciled subsidiaries in the Professional segment and formed in connection with the CBB Acquisition (collectively, the “New U.S. Subsidiaries”) became additional guarantors under such debt instruments. In connection with becoming guarantors, substantially all of the assets of such subsidiaries were pledged as collateral under Products Corporation’s Amended Term Loan Facility and Amended Revolving Credit Facility, thereby increasing the value of the assets supporting the borrowing base under the Amended Revolving Credit Facility. If the value of the eligible assets is not sufficient to support the $175.0 million borrowing base under the Amended Revolving Credit Facility, Products Corporation will not have full access to the Amended Revolving Credit Facility. Products Corporation’s ability to borrow under the Amended Revolving Credit Facility is also conditioned upon the satisfaction of certain conditions precedent and Products Corporation’s compliance with other covenants in the Amended Revolving Credit Agreement. In each case subject to borrowing base availability, the Amended Revolving Credit Facility is available to: (i) Products Corporation in revolving credit loans denominated in U.S. Dollars; (ii) Products Corporation in swing line loans denominated in U.S. Dollars up to $30.0 million ; (iii) Products Corporation in standby and commercial letters of credit denominated in U.S. Dollars and other currencies up to $60.0 million ; and (iv) Products Corporation and certain of its international subsidiaries designated from time to time in revolving credit loans and bankers’ acceptances denominated in U.S. Dollars and other currencies. Under the Amended Revolving Credit Facility, borrowings (other than loans in foreign currencies) bear interest, if made as Eurodollar Loans, at the Eurodollar Rate plus the applicable margin set forth in the grid below and, if made as Alternate Base Rate Loans, at the Alternate Base Rate plus the applicable margin set forth in the grid below. Excess Availability Alternate Base Rate Loans Eurodollar Loans, Eurocurrency Loan or Local Rate Loans Greater than or equal to $92,000,000 0.50% 1.50% Less than $92,000,000 but greater than or equal to $46,000,000 0.75% 1.75% Less than $46,000,000 1.00% 2.00% Local Loans (as defined in the Amended Revolving Credit Agreement) bear interest, if mutually acceptable to Products Corporation and the relevant foreign lenders, at the Local Rate, and otherwise (i) if in foreign currencies or in U.S. Dollars at the Eurodollar Rate or the Eurocurrency Rate plus the applicable margin set forth in the grid above or (ii) if in U.S. Dollars at the Alternate Base Rate plus the applicable margin set forth in the grid above. Prior to the termination date of the Amended Revolving Credit Facility, revolving loans are required to be prepaid (without any permanent reduction in commitment) with: (i) the net cash proceeds from sales of Revolving Credit First Lien Collateral by Products Corporation or any of Products Corporation’s subsidiary guarantors (other than dispositions in the ordinary course of business and certain other exceptions); and (ii) the net proceeds from the issuance by Products Corporation or any of its subsidiaries of certain additional debt, to the extent there remains any such proceeds after satisfying Products Corporation’s repayment obligations under the Amended Term Loan Facility. Products Corporation pays to the lenders under the Amended Revolving Credit Facility a commitment fee of 0.25% of the average daily unused portion of the Amended Revolving Credit Facility, which fee is payable quarterly in arrears. Under the Amended Revolving Credit Facility, Products Corporation also pays: (i) to foreign lenders a fronting fee of 0.25% per annum on the aggregate principal amount of specified Local Loans (which fee is retained by foreign lenders out of the portion of the Applicable Margin payable to such foreign lender); (ii) to foreign lenders an administrative fee of 0.25% per annum on the aggregate principal amount of specified Local Loans; (iii) to the multi-currency lenders a letter of credit commission equal to the product of (a) the Applicable Margin for revolving credit loans that are Eurodollar Rate loans (adjusted for the term that the letter of credit is outstanding) and (b) the aggregate undrawn face amount of letters of credit; and (iv) to the issuing lender, a letter of credit fronting fee of 0.25% per annum of the aggregate undrawn face amount of letters of credit, which fee is a portion of the Applicable Margin. Under certain circumstances, Products Corporation has the right to request that the Amended Revolving Credit Facility be increased by up to $100.0 million , provided that the lenders are not committed to provide any such increase. Under certain circumstances, if and when the difference between (i) the borrowing base under the Amended Revolving Credit Facility and (ii) the amounts outstanding under the Amended Revolving Credit Facility is less than $20.0 million for a period of two consecutive days or more, and until such difference is equal to or greater than $20.0 million for a period of 30 consecutive business days, the Amended Revolving Credit Facility requires Products Corporation to maintain a consolidated fixed charge coverage ratio (the ratio of EBITDA minus Capital Expenditures to Cash Interest Expense for such period) of a minimum of 1.0 to 1.0. The Amended Revolving Credit Facility matures on the earlier of August 14, 2018 and the date that is 90 days prior to the earliest maturity date of any term loans then outstanding under the Amended Term Loan Facility, but not earlier than June 16, 2016. Amended Term Loan Facility Term loans under the Amended Term Loan Facility bear interest at the following interest rates: Eurodollar Loans Alternate Base Rate Loans 2011 Term Loans Eurodollar Rate plus 2.50% per annum (with the Eurodollar Rate not to be less than 0.75%) Alternate Base Rate plus 1.50% (with the Alternate Base Rate not to be less than 1.75%) Acquisition Term Loans Eurodollar Rate plus 3.00% per annum (with the Eurodollar Rate not to be less than 1.00%) Alternate Base Rate plus 2.00% (with the Alternate Base Rate not to be less than 2.00%) The term loans under the Amended Term Loan Facility are required to be prepaid with: (i) the net cash proceeds in excess of $10 million for each 12-month period ending on March 31 received during such period from sales of Term Loan First Lien Collateral by Products Corporation or any of its subsidiary guarantors, with carryover of unused annual basket amounts up to a maximum of $25 million and with respect to certain specified dispositions up to an additional $25 million in the aggregate (subject to a reinvestment right for 365 days, or 545 days if the Company has within such 365 -day period entered into a legally binding commitment to invest such funds); (ii) the net proceeds from the issuance by Products Corporation or any of its subsidiaries of certain additional debt; and (iii) 50% of Products Corporation’s “excess cash flow” (as defined under the Amended Term Loan Agreement). As of December 31, 2015, Products Corporation is required to prepay, on or before 100 days following the last day of its fiscal year (i.e., by April 9, 2016), $23.2 million of indebtedness under the Amended Term Loan Facility, representing 50% of its 2015 "excess cash flow" (as defined under the Amended Term Loan Agreement). The prepayment will be applied on a ratable basis between the principal amounts outstanding under the 2011 Term Loan and the Acquisition Term Loan. The amount of the prepayment to be applied to the 2011 Term Loan will be used to reduce the aggregate principal amount outstanding (as all amortization payments under the 2011 Term Loan have been paid), while the amount to be applied to the Acquisition Term Loan will be used to reduce Products Corporation's future annual amortization payments (which are payable in equal quarterly installments) on a ratable basis from $6.9 million prior to the prepayment to $6.8 million after giving effect to the prepayment and through its maturity on October 8, 2019. The Amended Term Loan Facility contains a financial covenant limiting Products Corporation’s first lien senior secured leverage ratio (the ratio of Products Corporation’s senior secured debt that has a lien on the collateral which secures the Amended Term Loan Facility that is not junior or subordinated to the liens securing the Amended Term Loan Facility (excluding debt outstanding under the Amended Revolving Credit Facility)) to EBITDA, as each such term is defined in the Amended Term Loan Facility, to no more than 4.25 to 1.0 for each period of four consecutive fiscal quarters ending through the maturity date of the Amended Term Loan Facility. Products Corporation, under certain circumstances, also has the right to request the Amended Term Loan Facility to be increased by up to the greater of: (i) $300 million ; and (ii) an amount such that Products Corporation’s First Lien Secured Leverage Ratio (as defined in the Amended Term Loan Agreement) does not exceed 3.50 :1.00. The lenders are not committed to provide any such increase. Any such increase would be in addition to the Acquisition Term Loan. The 2011 Term Loan outstanding under the Amended Term Loan Facility matures on November 19, 2017. The Acquisition Term Loan under the Amended Term Loan Facility has the same terms as the 2011 Term Loans, except that: (i) it matures on the sixth anniversary of the closing of the Acquisition Term Loan (or October 8, 2019); and (ii) it amortizes on March 31, June 30, September 30 and December 31 of each year (which commenced March 31, 2014), in an amount equal to 0.25% of the aggregate principal amount of the Acquisition Term Loan. Provisions Applicable to the Amended Term Loan Facility and the Amended Revolving Credit Facility The Amended Credit Agreements are supported by, among other things, guarantees from Revlon, Inc. and, subject to certain limited exceptions, Products Corporation’s domestic subsidiaries. Products Corporation’s obligations under the Amended Term Loan Agreement and the Amended Revolving Credit Agreement and the obligations under such guarantees are secured by, subject to certain limited exceptions, substantially all of Products Corporation’s assets and the assets of the guarantors, including: (i) a mortgage on certain material owned real property, including Products Corporation’s facility in Oxford, North Carolina; (ii) Products Corporation’s capital stock and the capital stock of the subsidiary guarantors and 66% of the voting capital stock and 100% of the non-voting capital stock of Products Corporation’s and the subsidiary guarantors’ first-tier, non-U.S. subsidiaries; (iii) Products Corporation’s and the subsidiary guarantors’ intellectual property and other intangible property; and (iv) Products Corporation’s and the subsidiary guarantors’ inventory, trade receivables, equipment, investment property and deposit accounts. The liens on, among other things, inventory, trade receivables, deposit accounts, investment property (other than Products Corporation’s capital stock and the capital stock of Products Corporation’s subsidiaries), real property, equipment, fixtures and certain intangible property secure the Amended Revolving Credit Facility on a first priority basis and the Amended Term Loan Facility on a second priority basis. The liens on Products Corporation’s capital stock and the capital stock of Products Corporation’s subsidiaries and intellectual property and certain other intangible property secure the Amended Term Loan Facility on a first priority basis and the Amended Revolving Credit Facility on a second priority basis. Such arrangements are set forth in the Third Amended and Restated Intercreditor and Collateral Agency Agreement, dated as of March 11, 2010, by and among Products Corporation and CUSA, as administrative agent and as collateral agent for the benefit of the secured parties for the Amended Term Loan Facility and Amended Revolving Credit Facility (the “2010 Intercreditor Agreement”). The 2010 Intercreditor Agreement also provides that the liens referred to above may be shared from time to time, subject to certain limitations, with specified types of other obligations incurred or guaranteed by Products Corporation, such as foreign exchange and interest rate hedging obligations and foreign working capital lines. The Amended Credit Agreements contain various restrictive covenants prohibiting Products Corporation and its subsidiaries from: (i) incurring additional indebtedness or guarantees, with certain exceptions; (ii) making dividend and other payments or loans to Revlon, Inc. or other affiliates, with certain exceptions, including among others: (a) exceptions permitting Products Corporation to pay dividends or make other payments to Revlon, Inc. to enable it to, among other things, pay expenses incidental to being a public holding company, including, among other things, professional fees such as legal, accounting and insurance fees, regulatory fees, such as SEC filing fees and NYSE listing fees, and other expenses related to being a public holding company; (b) subject to certain circumstances, to finance the purchase by Revlon, Inc. of its Class A Common Stock in connection with the delivery of such Class A Common Stock to grantees under the Fourth Amended and Restated Revlon, Inc. Stock Plan and/or the payment of withholding taxes in connection with the vesting of restricted stock awards under such plan; (c) subject to certain limitations, to pay dividends or make other payments to finance the purchase, redemption or other retirement for value by Revlon, Inc. of stock or other equity interests or equivalents in Revlon, Inc. held by any current or former director, employee or consultant in his or her capacity as such; and (d) subject to certain limitations, to make other restricted payments to Products Corporation’s affiliates in an amount up to $10 million per year (plus $10 million for each calendar year commencing with 2011), other restricted payments in an aggregate amount not to exceed $35 million and certain other restricted payments, including without limitation those based upon certain financial tests; (iii) creating liens or other encumbrances on Products Corporation’s or its subsidiaries’ assets or revenues, granting negative pledges or selling or transferring any of Products Corporation’s or its subsidiaries’ assets, all subject to certain limited exceptions; (iv) with certain exceptions, engaging in merger or acquisition transactions; (v) prepaying indebtedness and modifying the terms of certain indebtedness and specified material contractual obligations, subject to certain exceptions; (vi) making investments, subject to certain exceptions; and (vii) entering into transactions with Products Corporation’s affiliates involving aggregate payments or consideration in excess of $10 million other than upon terms that are not materially less favorable when taken as a whole to Products Corporation or its subsidiaries as terms that would be obtainable at the time for a comparable transaction or series of similar transactions in arm’s length dealings with an unrelated third person and where such payments or consideration exceed $20 million , unless such transaction has been approved by all of Products Corporation’s independent directors, subject to certain exceptions. The events of default under the Amended Credit Agreements include customary events of default for such types of agreements, including, among others: (i) nonpayment of any principal, interest or other fees when due, subject in the case of interest and fees to a grace period; (ii) non-compliance with the covenants in the Amended Term Loan Agreement, the Amended Revolving Credit Agreement or the ancillary security documents, subject in certain instances to grace periods; (iii) the institution of any bankruptcy, insolvency or similar proceedings by or against Products Corporation, any of its subsidiaries or Revlon, Inc., subject in certain instances to grace periods; (iv) default by Revlon, Inc. or any of its subsidiaries (A) in the payment of certain indebtedness when due (whether at maturity or by acceleration) in excess of $50.0 million in aggregate principal amount or (B) in the observance or performance of any other agreement or condition relating to such debt, provided that the amount of debt involved is in excess of $50.0 million in aggregate principal amount, or the occurrence of any other event, the effect of which default referred to in this subclause (iv) is to cause or permit the holders of such debt to cause the acceleration of payment of such debt; (v) in the case of the Amended Term Loan Facility, a cross default under the Amended Revolving Credit Facility, and in the case of the Amended Revolving Credit Facility, a cross default under the Amended Term Loan Facility; (vi) the failure by Products Corporation, certain of Products Corporation’s subsidiaries or Revlon, Inc. to pay certain material judgments; (vii) a change of control such that: (A) Revlon, Inc. shall cease to be the beneficial and record owner of 100% of Products Corporation’s capital stock; (B) Ronald O. Perelman (or his estate, heirs, executors, administrator or other personal representative) and his or their controlled affiliates shall cease to “control” Products Corporation, and any other person or group of persons owns, directly or indirectly, more than 35% of Products Corporation’s total voting power; (C) any person or group of persons other than Ronald O. Perelman (or his estate, heirs, executors, administrator or other personal representative) and his or their controlled affiliates shall “control” Products Corporation; or (D) during any period of two consecutive years, the directors serving on Products Corporation’s Board of Directors at the beginning of such period (or other directors nominated by at least a majority of such continuing directors) shall cease to be a majority of the directors; (viii) Revlon, Inc. shall have any meaningful assets or indebtedness or shall conduct any meaningful business other than its ownership of Products Corporation and such activities as are customary for a publicly traded holding company which is not itself an operating company, in each case subject to limited exceptions; and (ix) the failure of certain affiliates which hold Products Corporation’s or its subsidiaries’ indebtedness to be party to a valid and enforceable agreement prohibiting such affiliate from demanding or retaining payments in respect of such indebtedness, subject to certain exceptions. If Products Corporation is in default under the senior secured leverage ratio under the Amended Term Loan Facility or the consolidated fixed charge coverage ratio under the Amended Revolving Credit Agreement, Products Corporation may cure such default by issuing certain equity securities to, or receiving capital contributions from, Revlon, Inc. and applying such cash which is deemed to increase EBITDA for the purpose of calculating the applicable ratio. Products Corporation may exercise this cure right two times in any four-quarter period. Covenants Products Corporation was in compliance with all applicable covenants under the Amended Term Loan Agreement and the Amended Revolving Credit Facility as of December 31, 2015 and 2014. At December 31, 2015, the aggregate principal amounts outstanding under the Acquisition Term Loan and the 2011 Term Loan were $673.7 million and $662.9 million , respectively, and availability under the $175.0 million Amended Revolving Credit Facility, based upon the calculated borrowing base less $8.8 million of outstanding undrawn letters of credit and nil then drawn on the Amended Revolving Credit Facility, was $166.2 million . (b) 5¾% Senior Notes On February 8, 2013, Products Corporation completed its offering (the "2013 Senior Notes Refinancing"), pursuant to an exemption from registration under the Securities Act of 1933 (as amended, the "Securities Act"), of $500.0 million aggregate principal amount of the 5¾% Senior Notes. The 5¾% Senior Notes are unsecured and were issued to investors at par. The 5¾% Senior Notes mature on February 15, 2021. Interest on the 5¾% Senior Notes accrues at 5¾% per annum, paid every six months on February 15 th and August 15 th . (See "Registration Rights" below). The 5¾% Senior Notes were issued pursuant to the 5¾% Senior Notes Indenture, dated as of February 8, 2013 (the “Notes Closing Date”), by and among Products Corporation, Products Corporation’s domestic subsidiaries (the “Guarantors”), which also currently guarantee Products Corporation’s Amended Term Loan Facility and Amended Revolving Credit Facility, and U.S. Bank National Association, as trustee. The Guarantors issued guarantees (the “Guarantees”) of Products Corporation’s obligations under the 5¾% Senior Notes and the 5¾% Senior Notes Indenture on a joint and several, senior unsecured basis. The Colomer U.S. Subsidiaries became additional guarantors in January 2014 and the New U.S. Subsidiaries became additional guarantors in January and May 2015, in each case under Products Corporation's Amended Term Loan Facility and Amended Revolving Credit Facility and the 5¾% Senior Notes Indenture. In December 2013, Products Corporation consummated an offer to exchange the original 5¾% Senior Notes for $500 million of new 5¾% Senior Notes, which have substantially the same terms as the original 5¾% Senior Notes, except that they are registered under the Securities Act (such registered new notes being the “5¾% Senior Notes”). See "Registration Rights" below for further discussion. Products Corporation used a portion of the $491.2 million of net proceeds from the issuance of the 5¾% Senior Notes (net of underwriters' fees) to repay and redeem all of the $330.0 million outstanding aggregate principal amount of its 9¾% Senior Secured Notes, as well as to pay $8.6 million of accrued interest. Products Corporation incurred an aggregate of $19.4 million of fees for the applicable redemption and tender offer premiums, related fees and expenses in connection with redemption and repayment of the 9¾% Senior Secured Notes and other fees and expenses in connection with the issuance of the 5¾% Senior Notes. Products Corporation used a portion of the remaining proceeds from the issuance of the 5¾% Senior Notes, together with existing cash, to pay approximately $113.0 million of principal on its 2011 Term Loan in conjunction with the February 2013 Term Loan Amendments. Products Corporation used the remaining balance available from the issuance of the 5¾% Senior Notes for general corporate purposes, including, without limitation, debt reduction transactions, such as repaying to Revlon, Inc. at maturity on October 8, 2013 the Contributed Loan, which Revlon, Inc. used to pay the liquidation preference of Revlon, Inc.'s then outstanding Series A Preferred Stock, with a par value of $0.01 per share (the "Series A Preferred Stock") in connection with its mandatory redemption on such date. Ranking The 5¾% Senior Notes are Products Corporation’s unsubordinated, unsecured obligations and rank senior in right of payment to any future subordinated obligations of Products Corporation and rank pari passu in right of payment with all existing and future senior debt of Products Corporation. Similarly, each Guarantee is the relevant Guarantor’s joint and several, unsubordinated and unsecured obligation and ranks senior in right of payment to any future subordinated obligations of such Guarantor and ranks pari passu in right of payment with all existing and future senior debt of such Guarantor. The Guarantees were issued on a joint and several basis. The 5¾% Senior Notes and the Guarantees rank effectively junior to Products Corporation’s Amended Term Loan Facility and Amended Revolving Credit Facility, which are secured, as well as indebtedness and preferred stock of Products Corporation’s foreign and immaterial subsidiaries (the “Non-Guarantor Subsidiaries”), none of which guarantee the 5¾% Senior Notes. Optional Redemption The 5¾% Senior Notes may be redeemed at Products Corporation's option, at any time as a whole, or from time to time in part, at the following redemption prices (expressed as percentages of principal amount), plus accrued interest to the date of redemption, if redeemed during the 12-month period beginning on February 15 th of the years indicated below: Year Percentage 2016 104.313 % 2017 102.875 % 2018 101.438 % 2019 and thereafter 100.000 % Change of Control Upon the occurrence of specified change of control events, Products Corporation is required to make an offer to purchase all of the 5¾% Senior Notes at a purchase price of 101% of the outstanding principal amount of the 5¾% Senior Notes as of the date of any such repurchase, plus accrued and unpaid interest to the date of repurchase. Certain Covenants The 5¾% Senior Notes Indenture limits Products Corporation’s and the Guarantors’ ability, and the ability of certain other subsidiaries, to: • incur or guarantee additional indebtedness (“Limitation on Debt”); • pay dividends, make repayments on indebtedness that is subordinated in right of payment to the 5¾% Senior Notes and make other “restricted payments” (“Limitation on Restricted Payments”); • make certain investments; • create liens on their assets to secure debt; • enter into transactions with affiliates; • merge, consolidate or amalgamate with another company (“Successor Company”); • transfer and sell assets (“Limitation on Asset Sales”); and • permit restrictions on the payment of dividends by Products Corporation’s subsidiaries (“Limitation on Dividends from Subsidiaries”). These covenants are subject to important qualifications and excep |
FAIR VALUE MEASUREMENTS - 10K
FAIR VALUE MEASUREMENTS - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | ||
FAIR VALUE MEASUREMENTS | 9. FAIR VALUE MEASUREMENTS Assets and liabilities are required to be categorized into three levels of fair value based upon the assumptions used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing the fair value measurement of assets and liabilities are as follows: • Level 1: Fair valuing the asset or liability using observable inputs, such as quoted prices in active markets for identical assets or liabilities; • Level 2: Fair valuing the asset or liability using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and • Level 3: Fair valuing the asset or liability using unobservable inputs that reflect the Company’s own assumptions regarding the applicable asset or liability. As of June 30, 2016 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 1.1 $ — $ 1.1 $ — Total assets at fair value $ 1.1 $ — $ 1.1 $ — Liabilities: Derivatives: FX Contracts (a) $ 1.8 $ — $ 1.8 $ — 2013 Interest Rate Swap (b) 7.6 — 7.6 — Total liabilities at fair value $ 9.4 $ — $ 9.4 $ — As of December 31, 2015 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 2.0 $ — $ 2.0 $ — Total assets at fair value $ 2.0 $ — $ 2.0 $ — Liabilities: Derivatives: FX Contracts (a) $ 0.6 $ — $ 0.6 $ — 2013 Interest Rate Swap (b) $ 6.5 $ — $ 6.5 $ — Total liabilities at fair value $ 7.1 $ — $ 7.1 $ — (a) The fair value of the Company’s foreign currency forward exchange contracts ("FX Contracts") was measured based on observable market transactions for similar transactions in actively quoted markets of spot and forward rates on the respective dates. See Note 10, “Financial Instruments," to the Unaudited Consolidated Financial Statements in this Form 10-Q. (b) The fair value of the Company's 2013 Interest Rate Swap (as hereinafter defined) was measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve on the respective dates. See Note 10, “Financial Instruments.” As of June 30, 2016 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,793.2 $ — $ 1,793.2 $ 1,790.4 As of December 31, 2015 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,818.0 $ — $ 1,818.0 $ 1,813.7 The fair value of the Company's long-term debt, including the current portion of long-term debt, is based on quoted market prices for similar issues and maturities. The carrying amounts of cash and cash equivalents, trade receivables, notes receivable, accounts payable and short-term borrowings approximate their respective fair values. | 12. FAIR VALUE MEASUREMENTS Assets and liabilities are required to be categorized into three levels of fair value based upon the assumptions used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing the fair value measurement of assets and liabilities are as follows: • Level 1: Fair valuing the asset or liability using observable inputs, such as quoted prices in active markets for identical assets or liabilities; • Level 2: Fair valuing the asset or liability using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and • Level 3: Fair valuing the asset or liability using unobservable inputs that reflect the Company’s own assumptions regarding the applicable asset or liability. As of December 31, 2015 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 2.0 $ — $ 2.0 $ — Total assets at fair value $ 2.0 $ — $ 2.0 $ — Liabilities: Derivatives: FX Contracts (a) $ 0.6 $ — $ 0.6 $ — 2013 Interest Rate Swap (b) 6.5 — 6.5 — Total liabilities at fair value $ 7.1 $ — $ 7.1 $ — As of December 31, 2014 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 0.2 $ — $ 0.2 $ — Total assets at fair value $ 0.2 $ — $ 0.2 $ — Liabilities: Derivatives: 2013 Interest Rate Swap (b) $ 3.5 $ — $ 3.5 $ — Total liabilities at fair value $ 3.5 $ — $ 3.5 $ — (a) The fair value of the Company’s foreign currency forward exchange contracts ("FX Contracts") was measured based on observable market transactions for similar transactions in actively quoted markets of spot and forward rates on the respective dates. See Note 13, “Financial Instruments.” (b) The fair value of the Company's 2013 Interest Rate Swap was measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve on the respective dates. See Note 13, “Financial Instruments.” As of December 31, 2015 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,818.0 $ — $ 1,818.0 $ 1,833.7 As of December 31, 2014 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,844.0 $ — $ 1,844.0 $ 1,863.9 The fair value of the Company's long-term debt, including the current portion of long-term debt, is based on quoted market prices for similar issues and maturities. The carrying amounts of cash and cash equivalents, trade receivables, notes receivable, accounts payable and short-term borrowings approximate their respective fair values. |
FINANCIAL INSTRUMENTS - 10K
FINANCIAL INSTRUMENTS - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Financial Instruments [Abstract] | ||
FINANCIAL INSTRUMENTS | 10. FINANCIAL INSTRUMENTS Products Corporation maintains standby and trade letters of credit for various corporate purposes under which Products Corporation is obligated, of which $8.3 million and $8.8 million (including amounts available under credit agreements in effect at that time) were maintained at June 30, 2016 and December 31, 2015 , respectively. Included in these amounts are approximately $7.2 million and $7.5 million at June 30, 2016 and December 31, 2015 , respectively, in standby letters of credit that support Products Corporation’s self-insurance programs. The estimated liability under such programs is accrued by Products Corporation. Derivative Financial Instruments The Company uses derivative financial instruments, primarily: (i) FX Contracts, intended for the purpose of managing foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on the Company’s net cash flows; and (ii) interest rate hedging transactions, such as the 2013 Interest Rate Swap referred to below, intended for the purpose of managing interest rate risk associated with Products Corporation’s variable rate indebtedness. Foreign Currency Forward Exchange Contracts The FX Contracts are entered into primarily to hedge the anticipated net cash flows resulting from inventory purchases and intercompany payments denominated in currencies other than the local currencies of the Company’s foreign and domestic operations and generally have maturities of less than one year. The U.S. Dollar notional amount of the FX Contracts outstanding at June 30, 2016 and December 31, 2015 was $74.2 million and $76.3 million , respectively. Interest Rate Swap Transaction In November 2013, Products Corporation executed a forward-starting floating-to-fixed interest rate swap transaction with a 1.00% floor, based on a notional amount of $400 million in respect of indebtedness under the Acquisition Term Loan over a period of three years (the "2013 Interest Rate Swap"). The Company designated the 2013 Interest Rate Swap as a cash flow hedge of the variability of the forecasted three-month LIBOR interest rate payments related to the $400 million notional amount under the Acquisition Term Loan over the three -year term of the 2013 Interest Rate Swap. Products Corporation receives from the counterparty a floating interest rate based on the higher of three-month USD LIBOR or 1.00% , while paying a fixed interest rate payment to the counterparty equal to 2.0709% (which effectively fixes the interest rate on such notional amount at 5.0709% over the three -year term of the 2013 Interest Rate Swap). For the six months ended June 30, 2016 , the 2013 Interest Rate Swap was deemed effective and therefore the changes in fair value related to the 2013 Interest Rate Swap have been recorded in Other Comprehensive Loss. As of June 30, 2016 , the balance of deferred net losses on derivatives included in accumulated other comprehensive loss was $4.5 million after-tax. (See " Quantitative Information – Derivative Financial Instruments " below). The Company expects that $2.6 million of the after-tax deferred net losses related to the 2013 Interest Rate Swap will be reclassified into earnings over the next 12 months as a result of transactions that are expected to occur over that period. The amount ultimately realized in earnings may differ, as LIBOR is subject to change. Realized gains and losses are ultimately determined by actual rates at maturity of the derivative. Credit Risk Exposure to credit risk in the event of nonperformance by any of the counterparties is limited to the gross fair value of the derivative instruments in asset positions, which totaled $1.1 million and $2.0 million as of June 30, 2016 and December 31, 2015, respectively. The Company attempts to minimize exposure to credit risk by generally entering into derivative contracts with counterparties that have investment-grade credit ratings and are major financial institutions. The Company also periodically monitors any changes in the credit ratings of its counterparties. Given the current credit standing of the Company's counterparties to its derivative instruments, the Company believes that the risk of loss under these derivative instruments arising from any non-performance by any of the counterparties is remote. Quantitative Information – Derivative Financial Instruments The effects of the Company’s derivative instruments on its Consolidated Financial Statements were as follows: (a) Fair Values of Derivative Financial Instruments in the Consolidated Balance Sheets: Fair Values of Derivative Instruments Assets Liabilities Balance Sheet June 30, December 31, Balance Sheet June 30, December 31, Classification Fair Value Fair Value Classification Fair Value Fair Value Derivatives designated as hedging instruments: 2013 Interest Rate Swap (i) Prepaid expenses and other $ — $ — Accrued expenses and other $ 4.2 $ 4.0 Other assets — — Other long-term liabilities 3.4 2.5 Derivatives not designated as hedging instruments: FX Contracts (ii) Prepaid expenses and other $ 1.1 $ 2.0 Accrued Expenses $ 1.8 $ 0.6 (i) The fair values of the 2013 Interest Rate Swap at June 30, 2016 and December 31, 2015 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at June 30, 2016 and December 31, 2015 , respectively. (ii) The fair values of the FX Contracts at June 30, 2016 and December 31, 2015 were measured based on observable market transactions of spot and forward rates at June 30, 2016 and December 31, 2015 , respectively. (b) Effects of Derivative Financial Instruments on the Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2016 and 2015 : Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Derivatives designated as hedging instruments: 2013 Interest Rate Swap, net of tax (a) $ 0.2 $ (0.1 ) $ (0.7 ) $ (2.0 ) (a) Net of tax expense (benefit) of $0.1 million and nil for the three months ended June 30, 2016 and 2015, respectively, and $(0.4) million and $(1.2) million for the six months ended June 30, 2016 and 2015, respectively. Income Statement Classification Amount of Gain (Loss) Recognized in Net Income Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Derivatives designated as hedging instruments: 2013 Interest Rate Swap Interest Expense $ (1.1 ) $ (0.5 ) $ (2.2 ) $ (0.5 ) Derivatives not designated as hedging instruments: FX Contracts Foreign currency gain (loss), net $ 0.3 $ 0.4 $ (0.5 ) $ 0.9 | 13. FINANCIAL INSTRUMENTS Products Corporation maintains standby and trade letters of credit for various corporate purposes under which Products Corporation is obligated, of which $8.8 million and $9.0 million (including amounts available under credit agreements in effect at that time) were maintained at December 31, 2015 and December 31, 2014 , respectively. Included in these amounts are approximately $7.5 million and $7.7 million at December 31, 2015 and December 31, 2014 , respectively, in standby letters of credit that support Products Corporation’s self-insurance programs. The estimated liability under such programs is accrued by Products Corporation. Derivative Financial Instruments The Company uses derivative financial instruments, primarily: (i) FX Contracts, intended for the purpose of managing foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on the Company’s net cash flows; and (ii) interest rate hedging transactions, such as the 2013 Interest Rate Swap referred to below, intended for the purpose of managing interest rate risk associated with Products Corporation’s variable rate indebtedness. Foreign Currency Forward Exchange Contracts The FX Contracts are entered into primarily to hedge the anticipated net cash flows resulting from inventory purchases and intercompany payments denominated in currencies other than the local currencies of the Company’s foreign and domestic operations and generally have maturities of less than one year. The U.S. Dollar notional amount of the FX Contracts outstanding at December 31, 2015 and December 31, 2014 was $76.3 million and $7.6 million , respectively. Interest Rate Swap Transaction In November 2013, Products Corporation executed a forward-starting floating-to-fixed interest rate swap transaction with a 1.00% floor, based on a notional amount of $400 million in respect of indebtedness under the Acquisition Term Loan over a period of three years (the "2013 Interest Rate Swap"). The Company designated the 2013 Interest Rate Swap as a cash flow hedge of the variability of the forecasted three-month LIBOR interest rate payments related to the $400 million notional amount under the Acquisition Term Loan over the three -year term of the 2013 Interest Rate Swap. Commencing in May 2015, Products Corporation receives from the counterparty a floating interest rate based on the higher of three-month USD LIBOR or 1.00% , while paying a fixed interest rate payment to the counterparty equal to 2.0709% (which effectively fixes the interest rate on such notional amount at 5.0709% over the three -year term of the 2013 Interest Rate Swap). For 2015, the 2013 Interest Rate Swap was deemed effective and therefore the changes in fair value related to the 2013 Interest Rate Swap have been recorded in Other Comprehensive Loss. As of December 31, 2015 , the balance of deferred net losses on derivatives included in accumulated other comprehensive loss was $3.8 million after-tax. (See " Quantitative Information – Derivative Financial Instruments " below). The Company expects that $2.4 million of the after-tax deferred net losses related to the 2013 Interest Rate Swap will be reclassified into earnings over the next 12 months as a result of transactions that are expected to occur over that period. The amount ultimately realized in earnings may differ, as LIBOR is subject to change. Realized gains and losses are ultimately determined by actual rates at maturity of the derivative. Credit Risk Exposure to credit risk in the event of nonperformance by any of the counterparties is limited to the gross fair value of the derivative instruments in asset positions, which totaled $2.0 million and $0.2 million as of December 31, 2015 and December 31, 2014, respectively. The Company attempts to minimize exposure to credit risk by generally entering into derivative contracts with counterparties that have investment-grade credit ratings and are major financial institutions. The Company also periodically monitors any changes in the credit ratings of its counterparties. Given the current credit standing of the Company's counterparties to its derivative instruments, the Company believes that the risk of loss under these derivative instruments arising from any non-performance by any of the counterparties is remote. Quantitative Information – Derivative Financial Instruments The effects of the Company’s derivative instruments on its Consolidated Financial Statements were as follows: (a) Fair Values of Derivative Financial Instruments in the Consolidated Balance Sheets: Fair Values of Derivative Instruments Assets Liabilities Balance Sheet December 31, December 31, Balance Sheet December 31, December 31, Classification Fair Value Fair Value Classification Fair Value Fair Value Derivatives designated as hedging instruments: 2013 Interest Rate Swap (i) Prepaid expenses and other $ — $ — Accrued expenses and other $ 4.0 $ 2.1 Other assets — — Other long-term liabilities 2.5 1.4 Derivatives not designated as hedging instruments: FX Contracts (ii) Prepaid expenses and other $ 2.0 $ 0.2 Accrued Expenses $ 0.6 $ — (i) The fair values of the 2013 Interest Rate Swap at December 31, 2015 and December 31, 2014 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at December 31, 2015 and December 31, 2014 , respectively. (ii) The fair values of the FX Contracts at December 31, 2015 and December 31, 2014 were measured based on observable market transactions of spot and forward rates at December 31, 2015 and December 31, 2014 , respectively. (b) Effects of Derivative Financial Instruments on the Consolidated Statements of Income and Comprehensive Income (Loss) for each of 2015, 2014 and 2013: Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Year Ended December 31, 2015 2014 2013 Derivatives designated as hedging instruments: 2013 Interest Rate Swap, net of tax (a) $ (1.6 ) $ (3.7 ) $ 1.5 (a) Net of tax (benefit) expense of $(1.0) million , $(2.3) million and $1.0 million for each of 2015, 2014 and 2013, respectively. Income Statement Classification Amount of Gain (Loss) Recognized in Net Income Year Ended December 31, 2015 2014 2013 Derivatives designated as hedging instruments: 2013 Interest Rate Swap Interest Expense $ (2.6 ) $ — $ — Derivatives not designated as hedging instruments: FX Contracts Foreign currency gain, net $ 3.8 $ 0.5 $ 2.2 |
SAVINGS PLAN, PENSION AND POST-
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Pension and Post-Retirement Benefits [Abstract] | ||
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS | 11. PENSION AND POST-RETIREMENT BENEFITS The components of net periodic benefit (income) costs for the Company’s pension and the other post-retirement benefit plans for the second quarter of 2016 and 2015 are as follows: Other Three Months Ended June 30, 2016 2015 2016 2015 Net periodic benefit (income) costs: Service cost $ 0.2 $ 0.2 $ — $ — Interest cost 5.1 7.1 0.1 0.1 Expected return on plan assets (7.8 ) (10.2 ) — — Amortization of actuarial loss 2.3 2.1 0.1 0.1 (0.2 ) (0.8 ) 0.2 0.2 Portion allocated to Revlon Holdings (0.1 ) (0.1 ) — — $ (0.3 ) $ (0.9 ) $ 0.2 $ 0.2 The components of net periodic benefit (income) costs for the Company's pension and the other post-retirement benefit plans for the first six months of 2016 and 2015 are as follows: Other Six Months Ended June 30, 2016 2015 2016 2015 Net periodic benefit (income) costs: Service cost $ 0.3 $ 0.4 $ — $ — Interest cost 10.3 14.3 0.2 0.2 Expected return on plan assets (15.6 ) (20.3 ) — — Amortization of actuarial loss 4.4 4.1 0.1 0.1 (0.6 ) (1.5 ) 0.3 0.3 Portion allocated to Revlon Holdings (0.1 ) (0.1 ) — — $ (0.7 ) $ (1.6 ) $ 0.3 $ 0.3 In the three and six months ended June 30, 2016, the Company recognized net periodic benefit income of $0.1 million and $0.4 million , respectively, compared to net periodic benefit income of $0.7 million and $1.3 million in the three and six months ended June 30, 2015, primarily due to the lower expected return on plan assets, partially offset by lower interest cost as a result of the Company's adoption of the alternative approach to calculating the service and interest components of net periodic benefit cost for pension and other post-retirement benefits (the “full yield curve” approach) which was adopted by the Company at December 31, 2015. Net periodic benefit costs (income) are reflected in the Company's Consolidated Financial Statements as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net periodic benefit (income) costs: Cost of sales $ (0.5 ) $ (1.0 ) $ (1.3 ) $ (2.0 ) Selling, general and administrative expense 0.4 0.3 0.9 0.7 $ (0.1 ) $ (0.7 ) $ (0.4 ) $ (1.3 ) The Company expects that it will have net periodic benefit income of approximately $ 1 million for its pension and other post-retirement benefit plans for all of 2016, compared with net periodic benefit cost of $ 18.8 million in 2015. During the second quarter of 2016 , $1.4 million and $0.3 million were contributed to the Company’s pension plans and other post-retirement benefit plans, respectively. During the first six months of 2016 , $ 3.1 million and $ 0.5 million were contributed to the Company’s pension plans and other post-retirement benefit plans, respectively. During 2016, the Company expects to contribute approximately $10 million in the aggregate to its pension and other post-retirement benefit plans. Relevant aspects of the qualified defined benefit pension plans, nonqualified pension plans and other post-retirement benefit plans sponsored by Products Corporation are disclosed in Note 14, "Savings Plan, Pension and Post-Retirement Benefits," to the Consolidated Financial Statements in the Company's 2015 Form 10-K. | 14. SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS Savings Plan: The Company offers a qualified defined contribution plan for its U.S.-based employees, the Revlon Employees' Savings, Investment and Profit Sharing Plan (as amended, the "Savings Plan"), which allows eligible participants to contribute up to 25% , and highly compensated participants to contribute up to 6% , of eligible compensation through payroll deductions, subject to certain annual dollar limitations imposed by the Internal Revenue Service (the "IRS"). The Company matches employee contributions at fifty cents for each dollar contributed up to the first 6% of eligible compensation. The Company made cash matching contributions to the Savings Plan of $2.5 million during 2015 and $2.4 million during each of 2014 and 2013, respectively. The Company also offers a non-qualified defined contribution plan (the “Excess Savings Plan”) providing benefits for certain U.S. employees who are in excess of IRS limitations. These non-qualified defined contribution benefits are funded from the Company's general assets. The Company’s qualified and non-qualified defined contribution savings plans for its U.S.-based employees contain a discretionary profit sharing component that enables the Company, should it elect to do so, to make discretionary profit sharing contributions. For 2015, the Company made discretionary profit sharing contributions to the Savings Plan and Excess Savings Plan of $4.8 million (of which $3.7 million was paid in 2015 and $1.1 million was paid in January 2016), or 3% of eligible compensation, which was credited on a quarterly basis. For 2014, the Company made discretionary profit sharing contributions to the Savings Plan and Excess Savings Plan of $4.0 million (of which $3.1 million was paid in 2014 and $0.9 million was paid in January 2015), or 3% of eligible compensation, which was credited on a quarterly basis. In 2013, the Company made discretionary profit sharing contributions to the Savings Plan and Excess Savings Plan of $4.1 million (of which $3.2 million was paid in 2013 and $0.9 million was paid in January 2014), or 3% of eligible compensation, which was credited on a quarterly basis. Pension Benefits: In 2009, Products Corporation’s U.S. qualified defined benefit pension plan (the Revlon Employees’ Retirement Plan, which covered a substantial portion of the Company's employees in the U.S.) and its non-qualified pension plan (the Revlon Pension Equalization Plan) were amended to cease future benefit accruals under such plans after December 31, 2009. No additional benefits have accrued since December 31, 2009, other than interest credits on participant account balances under the cash balance program of the Company’s U.S. pension plans. Also, service credits for vesting and early retirement eligibility will continue to accrue in accordance with the terms of the respective plans. In 2010, the Company amended its Canadian defined benefit pension plan (the Affiliated Revlon Companies Employment Plan) to reduce future benefit accruals under such plan after December 31, 2010. Additionally, while the Company closed its U.K. defined pension plan to new entrants in 2002, then-existing participants continue to accrue pension benefits. Effective December 31, 2012, Products Corporation merged two of its U.S. qualified defined benefit pension plans; therefore, as of December 31, 2012, Products Corporation sponsors two U.S. qualified defined benefit pension plans. The Company also has non-qualified pension plans that provide benefits for certain U.S. and non-U.S. employees, and for U.S. employees in excess of IRS limitations in the U.S. and in certain limited cases contractual benefits for certain former officers of the Company. These non-qualified plans are funded from the Company's general assets. In the fourth quarter of 2015, the Company offered certain former employees who had vested benefits in the Revlon Employees’ Retirement Plan the option of receiving the present value of the participant’s pension benefit in a one-time cash lump sum payment, an annuity form of benefit or the ability to maintain their deferred vested status in the pension plan. Based upon the participants' acceptance of that offer, $53.4 million was paid from the plan's assets in December 2015, with a corresponding decrease in the plan's benefit obligation. As a result of such program, the Company recorded a $20.7 million charge as a result of the pension lump sum settlement in the fourth quarter of 2015. This charge was included in cost of sales and SG&A expenses. Other Post-retirement Benefits: The Company previously sponsored an unfunded retiree benefit plan, which provides death benefits payable to beneficiaries of a very limited number of former employees. Participation in this plan was limited to participants enrolled as of December 31, 1993. The Company also administers an unfunded medical insurance plan on behalf of Revlon Holdings, certain costs of which have been apportioned to Revlon Holdings under the transfer agreements among Revlon, Inc., Products Corporation and MacAndrews & Forbes. (See Note 20, “Related Party Transactions - Transfer Agreements”). The following table provides an aggregate reconciliation of the projected benefit obligations, plan assets, funded status and amounts recognized in the Company’s Consolidated Financial Statements related to the Company's significant pension and other post-retirement benefit plans. Pension Plans Other Post-Retirement Benefit Plans December 31, 2015 2014 2015 2014 Change in Benefit Obligation: Benefit obligation - beginning of year $ (761.7 ) $ (668.2 ) $ (12.9 ) $ (14.4 ) Service cost (0.7 ) (0.8 ) — — Interest cost (28.6 ) (30.1 ) (0.5 ) (0.5 ) Actuarial gain (loss) 44.4 (108.0 ) (0.4 ) (0.2 ) Lump sum settlement 53.4 — — — Other pension settlements 0.8 — — — Benefits paid 38.3 41.0 0.8 0.7 Foreign currency translation adjustments 4.7 4.4 — — Other — — — 1.5 Benefit obligation - end of year $ (649.4 ) $ (761.7 ) $ (13.0 ) $ (12.9 ) Change in Plan Assets: Fair value of plan assets - beginning of year $ 567.7 $ 557.6 $ — $ — Actual return on plan assets (13.9 ) 37.6 — — Employer contributions 17.3 18.2 0.8 0.7 Lump sum settlement (53.4 ) — — — Other pension settlements (0.8 ) — — — Benefits paid (38.3 ) (41.0 ) (0.8 ) (0.7 ) Foreign currency translation adjustments (4.7 ) (4.7 ) — — Fair value of plan assets - end of year $ 473.9 $ 567.7 $ — $ — Unfunded status of plans at December 31, $ (175.5 ) $ (194.0 ) $ (13.0 ) $ (12.9 ) In respect of the Company's pension plans and other post-retirement benefit plans, amounts recognized in the Company’s Consolidated Balance Sheets at December 31, 2015 and 2014 consist of the following: Pension Plans Other Post-Retirement Benefit Plans December 31, 2015 2014 2015 2014 Other long-term assets $ 3.6 $ 0.8 $ — $ — Accrued expenses and other $ (6.0 ) $ (6.1 ) $ (0.8 ) $ (0.7 ) Pension and other post-retirement benefit liabilities (173.1 ) (188.7 ) (12.2 ) (12.2 ) Total liability (175.5 ) (194.0 ) (13.0 ) (12.9 ) Accumulated other comprehensive loss, gross 258.0 277.6 2.8 2.5 Income tax (benefit) expense (41.9 ) (43.7 ) (0.1 ) 0.1 Portion allocated to Revlon Holdings (0.9 ) (1.0 ) (0.2 ) (0.2 ) Accumulated other comprehensive loss, net $ 215.2 $ 232.9 $ 2.5 $ 2.4 With respect to the above accrued expenses and other, the Company has recorded receivables from affiliates of $3.0 million and $3.1 million at December 31, 2015 and 2014, respectively, relating to pension plan liabilities retained by such affiliates. The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the Company's pension plans are as follows: December 31, 2015 2014 Projected benefit obligation $ 649.4 $ 761.7 Accumulated benefit obligation 649.0 761.0 Fair value of plan assets 473.9 567.7 Net Periodic Benefit Cost: The components of net periodic benefit (income) costs for the Company’s pension and the other post-retirement benefit plans are as follows: Other Year Ended December 31, 2015 2014 2013 2015 2014 2013 Net periodic benefit (income) costs: Service cost $ 0.7 $ 0.8 $ 0.9 $ — $ — $ — Interest cost 28.6 30.1 27.6 0.5 0.5 0.6 Expected return on plan assets (40.3 ) (41.3 ) (38.3 ) — — — Amortization of actuarial loss 8.4 4.5 8.6 0.1 0.1 0.4 Lump sum settlement charge 20.7 — — — — — Other pension settlements charge 0.3 — — — — — 18.4 (5.9 ) (1.2 ) 0.6 0.6 1.0 Portion allocated to Revlon Holdings (0.1 ) (0.1 ) (0.1 ) (0.1 ) — (0.1 ) $ 18.3 $ (6.0 ) $ (1.3 ) $ 0.5 $ 0.6 $ 0.9 For 2015, the Company recognized net periodic benefit cost of $18.8 million , compared to net periodic benefit income of $(5.4) million in 2014, primarily due to the pension lump sum settlement charge recorded in the fourth quarter of 2015 and higher amortization of actuarial losses. For 2014, the Company recognized net periodic benefit income of $(5.4) million , as compared to $(0.4) million in 2013, primarily due to an increase in the fair value of pension plan assets at December 31, 2014, as well as lower amortization of actuarial losses. Net periodic benefit costs (income) are reflected in the Company's Consolidated Financial Statements as follows: Year Ended December 31, 2015 2014 Net periodic benefit (income) costs: Cost of sales $ 6.1 $ (4.2 ) Selling, general and administrative expense 12.7 (0.7 ) Inventories — (0.5 ) $ 18.8 $ (5.4 ) Amounts recognized in accumulated other comprehensive loss at December 31, 2015 in respect of the Company’s pension plans and other post-retirement plans, which have not yet been recognized as a component of net periodic benefit cost, are as follows: Pension Benefits Post-Retirement Benefits Total Net actuarial loss $ 258.0 $ 2.8 $ 260.8 Prior service cost — — — Accumulated Other Comprehensive Loss, Gross 258.0 2.8 260.8 Income tax (benefit) expense (41.9 ) (0.1 ) (42.0 ) Portion allocated to Revlon Holdings (0.9 ) (0.2 ) (1.1 ) Accumulated Other Comprehensive Loss, Net $ 215.2 $ 2.5 $ 217.7 The total actuarial losses and prior service costs in respect of the Company’s pension plans and other post-retirement plans included in accumulated other comprehensive loss at December 31, 2015 and expected to be recognized in net periodic benefit cost during the fiscal year ended December 31, 2016, is $8.5 million and $0.2 million , respectively. Pension Plan Assumptions: The following weighted average assumptions were used to determine the Company’s projected benefit obligation of the Company’s U.S. and International pension plans at the end of the respective years: U.S. Plans International Plans 2015 2014 2015 2014 Discount rate 4.15 % 3.89 % 3.68 % 3.74 % Rate of future compensation increases 3.50 % 3.00 % 2.22 % 2.33 % The following weighted average assumptions were used to determine the Company’s net periodic benefit (income) cost of the Company’s U.S. and International pension plans during the respective years: U.S. Plans International Plans 2015 2014 2013 2015 2014 2013 Discount rate 3.89 % 4.68 % 3.78 % 3.74 % 4.48 % 4.33 % Expected long-term return on plan assets 7.50 % 7.75 % 7.75 % 6.00 % 6.00 % 6.00 % Rate of future compensation increases 3.00 % 3.00 % 3.00 % 2.33 % 3.40 % 2.97 % As of December 31, 2015, the Company adopted the “full yield curve” method as an alternative approach to calculating the service and interest components of net periodic benefit cost for the Company's pension and other post-retirement benefits. Under the "full yield curve" method, the discount rate assumption was built through the application of specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows for each of the Company's pension and other post-retirement plans. Prior to December 31, 2015, the Company estimated the service and interest cost components utilizing a single weighted average discount rate derived from the yield curve used to measure the projected benefit obligation at the beginning of the period. This change does not affect the measurement of the Company's total projected benefit obligations, as the change in service and interest costs is exactly offset in the actuarial loss (gain) recognized for each year. The Company made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. The change to the "full yield curve" method was accounted for as a change in accounting estimate that is inseparable from a change in accounting principle, and accordingly, has been accounted for prospectively. In selecting its expected long-term rate of return on its pension plan assets, the Company considers a number of factors, including, without limitation, recent and historical performance of pension plan assets, the pension plan portfolios' asset allocations over a variety of time periods compared with third-party studies, the performance of the capital markets in recent years and other factors, as well as advice from various third parties, such as the pension plans' advisors, investment managers and actuaries. While the Company considered both the recent performance and the historical performance of pension plan assets, the Company’s assumptions are based primarily on its estimates of long-term, prospective rates of return. Using the aforementioned methodologies, the Company selected a 7.50% and 6.00% weighted average long-term rate of return on plan assets assumption during 2015 for the U.S. and International pension plans, respectively. Differences between actual and expected asset returns are recognized in the net periodic benefit cost over the remaining service period of the active participating employees. The rate of future compensation increases is an assumption used by the actuarial consultants for pension accounting and is determined based on the Company’s current expectation for such increases. Investment Policy: The Investment Committee for the Company's U.S. pension plans (the “Investment Committee”) has adopted (and revises from time to time) an investment policy for the Company's U.S. pension plans with the objective of realizing a long-term rate of return on pension plan assets that meets or exceeds, over time, the expected long-term rate of return on plan assets assumption, weighed against a reasonable risk level. In connection with this objective, the Investment Committee retains a professional investment advisor who recommends investment managers that invest plan assets in the following asset classes: common and preferred stock, mutual funds, fixed income securities, common and collective funds, hedge funds, group annuity contracts and cash and other investments. The Company’s international plans follow a similar methodology in conjunction with local actuarial consultants and asset managers. The investment policy adopted by the Investment Committee provides for investments in a broad range of publicly-traded securities, among other things. The investments are in domestic and international stocks, ranging from small to large capitalization stocks, debt securities ranging from domestic and international treasury issues, corporate debt securities, mortgages and asset-backed issues. Other investments may include cash and cash equivalents and hedge funds. The investment policy also allows for investments in private equity funds that are not covered in investments described above, provided that the Investment Committee approves any such investments prior to their selection. Also, global balanced strategies are utilized to provide for investments in a broad range of publicly-traded stocks and bonds in both domestic and international markets, as described above. In addition, the global balanced strategies can include commodities, provided that the Investment Committee approves any such investments prior to their selection. The Investment Committee’s investment policy does not allow the use of derivatives for speculative purposes, but such policy does allow its investment managers to use derivatives for the purpose of reducing risk exposures or to replicate exposures of a particular asset class. The Company’s U.S. and international pension plans have target asset allocation ranges which are intended to be flexible guidelines for allocating the plans’ assets among various classes of assets. These target ranges are reviewed periodically and considered for readjustment when an asset class weighting is outside of its target range (recognizing that these are flexible target ranges that may vary from time to time) with the objective of meeting or exceeding the expected long-term rate of return on plan assets assumption, weighed against a reasonable risk level. The target ranges per asset class are as follows: Target Ranges U.S. Plans International Plans Asset Class: Common and preferred stock 0% - 10% — Mutual funds 20% - 30% — Fixed income securities 10% - 30% — Common and collective funds 25% - 55% 100% Hedge funds 0% - 15% — Group annuity contract 0% - 5% — Cash and other investments 0% - 10% — Fair Value of Pension Plan Assets: The following table presents information on the fair value of the Company's U.S. and international pension plan assets at December 31, 2015 and 2014: U.S. Plans International Plans 2015 2014 2015 2014 Fair value of plan assets $ 407.2 $ 496.1 $ 66.7 $ 71.6 The Company determines the fair values of the Company’s U.S. and international pension plan assets as follows: • Common and preferred stock: The fair values of investments included in the common and preferred stock asset class generally reflect the closing price reported on the major market where the individual securities are traded. The Company classifies common and preferred stock investments within Level 1 of the fair value hierarchy. • Mutual funds: The fair values of investments included in the mutual funds asset class are determined using net asset value (“NAV”) provided by the applicable fund administrators. The NAV is based on the closing price reported on the major market where the individual securities within the mutual fund are traded. The Company classifies mutual fund investments within Level 1 of the fair value hierarchy. • Fixed income securities: The fair values of investments included in the fixed income securities asset class are based on a compilation of primarily observable market information and/or broker quotes. The Company classifies fixed income securities investments primarily within Level 2 of the fair value hierarchy. • Common and collective funds: The fair values of investments included in the common and collective funds asset class are determined using NAV provided by the applicable fund administrators. The NAV is based on the value of the underlying assets owned by the common and collective fund, minus its liabilities, and then divided by the number of shares outstanding. The Company classifies common and collective fund investments within Level 2 of the fair value hierarchy. • Hedge funds: The hedge fund asset class includes investments in hedge funds that, in turn, primarily invest in a grouping of equities, fixed income instruments, currencies, derivatives and/or commodities. The fair values of investments included in the hedge funds class are determined using NAV provided by the applicable fund administrators. The NAV is based on securities listed or quoted on a national securities exchange or market, or traded in the over-the-counter market, and is valued at the closing quotation posted by that exchange or trading system. Securities not listed or quoted on a national securities exchange or market are valued primarily through observable market information or broker quotes. The hedge fund investments generally can be sold on a quarterly or monthly basis and may employ leverage. The Company classifies hedge fund investments within Level 2 of the fair value hierarchy. • Group annuity contract: The group annuity contract asset class primarily invests in equities, corporate bonds and government bonds. The fair values of securities listed or quoted on a national securities exchange or market, or traded in the over-the-counter market, are valued at the closing quotation posted by that exchange or trading system. Securities not listed or quoted on a national securities exchange or market are valued primarily through observable market information or broker quotes. The Company classifies group annuity contract investments within Level 2 of the fair value hierarchy. • Cash and cash equivalents: Cash and cash equivalents are measured at cost, which approximates fair value. The Company classifies cash and cash equivalents within Level 1 of the fair value hierarchy. The fair values of the Company's U.S. and International pension plan assets at December 31, 2015 by asset category were as follows: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common and Preferred Stock: U.S. small/mid cap equity $ 14.6 $ 14.6 $ — $ — Mutual Funds (a) : Corporate bonds 14.9 14.9 — — Government bonds 12.9 12.9 — — U.S. large cap equity 0.7 0.7 — — International equities 3.0 3.0 — — Emerging markets international equity 5.1 5.1 — — Other 2.0 2.0 — — Fixed Income Securities: Corporate bonds 41.7 — 41.7 — Government bonds 6.9 — 6.9 — Common and Collective Funds (a) : Corporate bonds 61.5 — 61.5 — Government bonds 56.8 — 56.8 — U.S. large cap equity 71.9 — 71.9 — U.S. small/mid cap equity 15.5 — 15.5 — International equities 77.8 — 77.8 — Emerging markets international equity 14.5 — 14.5 — Cash and cash equivalents (0.8 ) 0.3 (1.1 ) — Other 5.5 — 5.5 — Hedge Funds (a) : Corporate bonds 3.8 — 3.8 — Government bonds 8.6 — 8.6 — U.S. large cap equity 3.8 — 3.8 — Cash and cash equivalents 4.6 — 4.6 — Other 32.1 — 32.1 — Group Annuity Contract 2.8 — 2.8 — Cash and cash equivalents 13.7 13.7 — — Fair value of plan assets at December 31, 2015 $ 473.9 $ 67.2 $ 406.7 $ — (a) The investments in mutual funds, common and collective funds and hedge funds are disclosed above within the respective underlying investments’ class (i.e., various equities, corporate bonds, government bonds and other investment classes), while the fair value hierarchy levels of the investments are based on the Company’s direct ownership unit of account. The fair values of the Company's U.S. and International pension plan assets at December 31, 2014 by asset category were as follows: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common and Preferred Stock: U.S. small/mid cap equity $ 20.5 $ 20.5 $ — $ — Mutual Funds (a) : Corporate bonds 17.5 17.5 — — Government bonds 13.6 13.6 — — U.S. large cap equity 68.5 68.5 — — International equities 7.3 7.3 — — Emerging markets international equity 6.1 6.1 — — Other 3.1 3.1 — — Fixed Income Securities: Corporate bonds 55.0 — 55.0 — Government bonds 10.9 — 10.9 — Common and Collective Funds (a) : Corporate bonds 75.4 — 75.4 — Government bonds 60.0 — 60.0 — U.S. large cap equity 24.3 — 24.3 — U.S. small/mid cap equity 21.0 — 21.0 — International equities 89.9 — 89.9 — Emerging markets international equity 17.6 — 17.6 — Cash and cash equivalents 3.7 — 3.7 — Other 3.1 — 3.1 — Hedge Funds (a) : Corporate bonds 6.8 — 6.8 — Government bonds (8.8 ) — (8.8 ) — U.S. large cap equity 9.1 — 9.1 — International equities 15.9 — 15.9 — Emerging markets international equity 4.1 — 4.1 — Cash and cash equivalents 26.8 — 26.8 — Other 4.2 — 4.2 — Group Annuity Contract 2.8 — 2.8 — Cash and cash equivalents 9.3 9.3 — — Fair value of plan assets at December 31, 2014 $ 567.7 $ 145.9 $ 421.8 $ — (a) The investments in mutual funds, common and collective funds and hedge funds are disclosed above within the respective underlying investments’ class (i.e., various equities, corporate bonds, government bonds and other investment classes), while the fair value hierarchy levels of the investments are based on the Company’s direct ownership unit of account. There were no transfers into Level 3 assets in the Company's U.S. and International pension plan's fair value hierarchy during 2015. The following table sets forth a summary of changes in the fair values of the Company's U.S. and International pension plans’ Level 3 assets for 2014: Total Fixed Income Securities Hedge Funds Balance, January 1, 2014 $ 1.9 $ 1.9 $ — Purchases, sales, and settlements, net (0.5 ) (0.5 ) — Transfers out of Level 3 (1.4 ) (1.4 ) — Balance, December 31, 2014 $ — $ — $ — The amount transferred out of Level 3 in the fair value hierarchy during 2014 relates to certain U.S. pension plan investments in South American government bonds. During 2014, observable market information became available for these plan assets and as a result, the assets have been categorized as Level 2 within the hierarchy. The U.S. pension plan did not realize any material gains or losses related to these investments during 2014 Contributions: The Company’s intent is to fund at least the minimum contributions required to meet applicable federal employee benefit laws and local laws, or to directly pay benefit payments where appropriate. During 2015 , $ 17.3 million and $ 0.8 million were contributed to the Company’s pension plans and other post-retirement benefit plans, respectively. During 2016, the Company expects to contribute approximately $20 million in the aggregate to its pension and other post-retirement benefit plans. Estimated Future Benefit Payments: The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid out of the Company’s pension and other post-retirement benefit plans: Total Pension Benefits Total Other Benefits 2016 $ 41.7 $ 1.0 2017 41.6 1.0 2018 42.1 1.0 2019 42.4 1.0 2020 42.9 1.0 Years 2021 to 2025 212.4 4.9 |
STOCK COMPENSATION PLAN - 10K
STOCK COMPENSATION PLAN - 10K | 12 Months Ended |
Dec. 31, 2015 | |
Stock Compensation Plan [Abstract] | |
STOCK COMPENSATION PLAN | 15. STOCK COMPENSATION PLAN Revlon, Inc. maintains the Fourth Amended and Restated Revlon, Inc. Stock Plan (the "Stock Plan"), which provides for awards of stock options, stock appreciation rights, restricted or unrestricted stock and restricted stock units to eligible employees and directors of Revlon, Inc. and its affiliates, including Products Corporation. An aggregate of 6,565,000 shares are reserved for issuance as Awards under the Stock Plan, subject to the adjustment provisions of the Stock Plan. As of December 31, 2015, there were approximately 3.8 million shares remaining available under the Stock Plan for grant as stock options, stock appreciation rights, restricted or unrestricted stock and/or restricted stock units. In July 2014, the Stock Plan was amended to renew the Stock Plan for a 7 -year renewal term expiring on April 14, 2021. Stock options: Non-qualified stock options granted under the Stock Plan are granted at prices that equal or exceed the fair market value of Revlon, Inc.'s Class A Common Stock on the grant date and have a term of 7 years. Option grants generally vest over service periods that range from 1 year to 4 years. At December 31, 2015 and 2014, there were no options exercisable under the Stock Plan, and 800 exercisable at December 31, 2013. There was no stock option activity for 2015. A summary of stock option activity for each of 2014 and 2013 is presented below: Stock Options (000's) Weighted Average Exercise Price Outstanding at January 1, 2013 8.1 $ 29.91 Forfeited and expired (7.3 ) 30.17 Outstanding at January 1, 2014 0.8 27.50 Forfeited and expired (0.8 ) 27.50 Outstanding at December 31, 2014 — — Restricted stock awards and restricted stock units: The Stock Plan allows for awards of restricted stock and restricted stock units to employees and directors of Revlon, Inc. and its affiliates, including Products Corporation. The restricted stock awards granted under the Stock Plan vest over service periods that generally range from 3 years to 5 years. The Company granted 75,551 and 145,084 shares of restricted stock to certain executives in February 2015 and December 2015, respectively, which vest over a 5 -year and 4 -year period, respectively, with the first tranche vesting in March 2016. In 2014, the Company granted 693,378 shares of restricted stock to certain executives that vest over a 5 -year period, which commenced in March 2015. In October 2013, the Company granted 120,000 shares of restricted common stock with a 3 -year vesting period to an executive who ceased employment with the Company during 2014, with the final 40,000 shares vesting in October 2016. A summary of the restricted stock and restricted stock unit activity for each of 2015, 2014 and 2013 is presented in the following table: Restricted Stock (000's) Weighted Average Grant Date Fair Value Outstanding at January 1, 2013 — $ — Granted 120.0 24.80 Outstanding at December 31, 2013 120.0 24.80 Granted 693.4 31.01 Vested (a) (40.0 ) 24.80 Outstanding at December 31, 2014 773.4 30.37 Granted 220.6 29.46 Vested (a) (171.7 ) 29.09 Forfeited (57.5 ) 30.44 Outstanding at December 31, 2015 764.8 30.39 (a) Of the amounts vested during 2015 and 2014, 82,740 and 22,328 shares, respectively, were withheld by the Company to satisfy certain grantees’ minimum withholding tax requirements, which withheld shares became Revlon, Inc. treasury stock and are not sold on the open market. The Company recognizes non-cash compensation expense related to restricted stock awards and restricted stock units under the Stock Plan using the straight-line method over the remaining service period. The Company recorded compensation expense related to restricted stock awards under the Stock Plan of $5.1 million , $5.5 million and $ 0.2 million during 2015, 2014 and 2013, respectively. The total fair value of restricted stock and restricted stock units that vested during 2015 and 2014 was $5.0 million and $1.0 million , respectively. The deferred stock-based compensation related to restricted stock awards was $18.4 million at December 31, 2015 and will be amortized ratably to compensation expense over the remaining vesting period of 3.4 years. |
INCOME TAXES - 10K
INCOME TAXES - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | ||
INCOME TAXES | 12. INCOME TAXES The provision for income taxes represents federal, foreign, state and local income taxes. The effective tax rate differs from the applicable federal statutory rate due to the effect of state and local income taxes, tax rates and income in foreign jurisdictions, utilization of tax loss carryforwards, foreign earnings taxable in the U.S., non-deductible expenses and other items. The Company’s tax provision changes quarterly based on various factors including, but not limited to, the geographical mix of earnings, enacted tax legislation, foreign, state and local income taxes, tax audit settlements and the interaction of various global tax strategies. In addition, changes in judgment from the evaluation of new information resulting in the recognition, derecognition and/or remeasurement of a tax position taken in a prior period are recognized in the quarter in which any such change occurs. For the second quarter of 2016 and 2015, the Company recorded a provision for income taxes of $11.8 million and $21.4 million , respectively. The $9.6 million decrease in the provision for income taxes was primarily due to lower pre-tax income and the phasing of the recognition of income taxes. For the first six months of 2016 and 2015 , the Company recorded a provision for income taxes of $17.9 million and $ 31.0 million , respectively. The $ 13.1 million decrease in the provision for income taxes was primarily due to lower pre-tax income and the phasing of the recognition of income taxes. The Company's effective tax rate for the three months ended June 30, 2016 was higher than the federal statutory rate of 35% as a result of foreign and U.S. tax effects attributable to operations outside the U.S. and foreign dividends and earnings taxable in the U.S. The Company's effective tax rate for the six months ended June 30, 2016 was higher than the federal statutory rate of 35% as a result of certain foreign dividends and earnings taxable in the U.S. The Company remains subject to examination of its income tax returns in various jurisdictions including, without limitation: Australia and Spain for tax years ended December 31, 2011 through December 31, 2014; South Africa, the U.K. and the U.S. (federal) for tax years ended December 31, 2012 through December 31, 2014; and Canada for tax years ended December 31, 2012 through December 31, 2015. | 16. INCOME TAXES The Company's income before income taxes and the applicable provision for income taxes are as follows: Year Ended December 31, 2015 2014 2013 Income (loss) from continuing operations before income taxes: United States $ 123.4 $ 146.9 $ 36.0 Foreign (3.7 ) (19.7 ) 44.6 $ 119.7 $ 127.2 $ 80.6 Provision for (benefit from) income taxes: United States federal $ 40.9 $ 58.2 $ 27.4 State and local 16.7 17.9 13.8 Foreign (3.2 ) 5.1 7.4 $ 54.4 $ 81.2 $ 48.6 Current: United States federal $ (2.7 ) $ 2.6 $ 3.2 State and local 3.9 3.5 0.7 Foreign 21.7 7.2 11.3 22.9 13.3 15.2 Deferred: United States federal 43.6 55.6 24.2 State and local 12.8 14.4 13.1 Foreign (24.9 ) (2.1 ) (3.9 ) 31.5 67.9 33.4 Total provision for income taxes $ 54.4 $ 81.2 $ 48.6 The actual tax on income before income taxes is reconciled to the applicable statutory federal income tax rate in the following table: Year Ended December 31, 2015 2014 2013 Computed income tax expense $ 41.9 $ 44.5 $ 28.2 State and local taxes, net of U.S. federal income tax benefit 10.9 20.5 8.9 Foreign and U.S. tax effects attributable to operations outside the U.S. 13.6 5.8 (6.2 ) Net establishment (release) of valuation allowance (15.5 ) 6.4 — Foreign dividends and earnings taxable in the U.S. 3.2 5.4 11.0 Acquisition costs for which there is no tax benefit — — 2.7 Other 0.3 (1.4 ) 4.0 Tax expense $ 54.4 $ 81.2 $ 48.6 Deferred taxes are the result of temporary differences between the bases of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities at December 31, 2015 and 2014 were comprised of the following: December 31, 2015 2014 Deferred tax assets: Inventories $ 7.3 $ 7.6 Net operating loss carryforwards - U.S. 27.6 77.6 Net operating loss carryforwards - foreign 51.4 57.9 Employee benefits 96.7 100.7 State and local taxes — 2.7 Sales related reserves 25.8 26.2 Foreign currency translation adjustment 11.0 3.9 Other 52.7 46.1 Total gross deferred tax assets 272.5 322.7 Less valuation allowance (47.1 ) (57.1 ) Total deferred tax assets, net of valuation allowance 225.4 265.6 Deferred tax liabilities: Plant, equipment and other assets (29.9 ) (30.0 ) Intangibles (82.4 ) (88.0 ) Other (63.2 ) (55.2 ) Total gross deferred tax liabilities (175.5 ) (173.2 ) Net deferred tax assets $ 49.9 $ 92.4 In assessing the recoverability of its deferred tax assets, management regularly considers whether some portion or all of the deferred tax assets will not be realized based on the recognition threshold and measurement of a tax position. The ultimate realization of deferred tax assets is generally dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A valuation allowance has been provided for those deferred tax assets for which, in the opinion of the Company's management, it is more likely than not that the deferred tax assets will not be realized. At December 31, 2015, the deferred tax valuation allowance primarily represented amounts for foreign tax loss carryforwards and certain U.S. state and local tax loss carryforwards. The deferred tax valuation allowance decreased by $10.0 million and $4.6 million during 2015 and 2014, respectively. The decrease in the deferred tax valuation allowance during 2015 was primarily due to a reduction of the Company's valuation allowance on deferred tax assets of jurisdictions outside of the U.S., offset by additional valuation allowances on losses incurred in certain jurisdictions. The decrease in the deferred tax valuation allowance during 2014 was primarily due to foreign currency translation and the amalgamation of certain foreign subsidiaries, partially offset by the establishment of a valuation allowance against certain deferred tax assets in the Professional segment during 2014. As of December 31, 2015, the Company has tax loss carryforwards of approximately $232.9 million , of which $219.4 million are foreign and $13.4 million are domestic (federal). The losses expire in future years as follows: 2016- $2.1 million ; 2017- $8.2 million ; 2018- $26.1 million ; 2019 and beyond- $28.3 million ; and unlimited- $168.2 million . The Company could receive the benefit of such tax loss carryforwards only to the extent it has taxable income during the carryforward periods in the applicable tax jurisdictions. As of December 31, 2015, there were no consolidated federal net operating losses available from the MacAndrews & Forbes Group (as hereinafter defined) from periods prior to the March 25, 2004 deconsolidation (as described below). The Company remains subject to examination of its income tax returns in various jurisdictions including, without limitation: Australia, Canada and Spain for tax years ended December 31, 2011 through December 31, 2014; South Africa, the U.K. and the U.S. (federal) for tax years ended December 31, 2012 through December 31, 2014. The Company classifies interest and penalties as a component of the provision for income taxes. During 2015 and 2014, the Company recognized in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) decreases of $1.0 million and $0.9 million , respectively, in accrued interest and penalties. At December 31, 2015 and 2014, the Company had unrecognized tax benefits of $65.0 million and $62.0 million , respectively, including $10.3 million and $11.3 million , respectively, of accrued interest and penalties. The unrecognized tax benefits, to the extent reduced and unutilized in future periods, would generally affect the Company’s effective tax rate. A reconciliation of the beginning and ending amount of the unrecognized tax benefits is provided in the following table: Balance at January 1, 2014 $ 74.5 Increase based on tax positions taken in a prior year 12.6 Decrease based on tax positions taken in a prior year (22.8 ) Increase based on tax positions taken in the current year 8.0 Decrease resulting from the lapse of statutes of limitations (10.3 ) Balance at December 31, 2014 62.0 Increase based on tax positions taken in a prior year 5.6 Decrease based on tax positions taken in a prior year (5.8 ) Increase based on tax positions taken in the current year 8.5 Decrease resulting from the lapse of statutes of limitations (5.3 ) Balance at December 31, 2015 $ 65.0 In addition, the Company believes that it is reasonably possible that its unrecognized tax benefits during 2016 will decrease by approximately $1.1 million as a result of changes in various tax positions, each of which is individually insignificant. The Company has not provided for U.S. federal income taxes and foreign withholding taxes on $52.5 million of foreign subsidiaries' cumulative undistributed earnings as of December 31, 2015 because such earnings are intended to be indefinitely reinvested overseas. If these future earnings are repatriated to the U.S., or if the Company determines that such earnings will be remitted in a future period, additional tax provisions may be required. Due to the complexities in the tax laws and the assumptions that would have to be made, it is not practicable to estimate the amounts of income tax provisions that may be required. As a result of the closing of the 2004 Revlon Exchange Transactions (as hereinafter defined in Note 20, “Related Party Transactions - Tax Sharing Agreements”), as of March 25, 2004, Revlon, Inc., Products Corporation and their U.S. subsidiaries were no longer included in the affiliated group of which MacAndrews & Forbes was the common parent (the “MacAndrews & Forbes Group”) for federal income tax purposes. Revlon Holdings (as hereinafter defined in Note 20, “Related Party Transactions - Transfer Agreements”), Revlon, Inc., Products Corporation and certain of its subsidiaries, and MacAndrews & Forbes Incorporated entered into a tax sharing agreement (as subsequently amended and restated, the "MacAndrews & Forbes Tax Sharing Agreement"), for taxable periods beginning on or after January 1, 1992 through and including March 25, 2004, during which Revlon, Inc. and Products Corporation or a subsidiary of Products Corporation was a member of the MacAndrews & Forbes Group. In these taxable periods, Revlon, Inc.'s and Products Corporation's federal taxable income and loss were included in such group's consolidated tax return filed by MacAndrews & Forbes Incorporated. Revlon, Inc. and Products Corporation were also included in certain state and local tax returns of MacAndrews & Forbes Incorporated or its subsidiaries. Revlon, Inc. and Products Corporation remain liable under the MacAndrews & Forbes Tax Sharing Agreement for all such taxable periods through and including March 25, 2004 for amounts determined to be due as a result of a redetermination arising from an audit or otherwise, equal to the taxes that Revlon, Inc. or Products Corporation would otherwise have had to pay if it were to have filed separate federal, state or local income tax returns for such periods. Following the closing of the 2004 Revlon Exchange Transactions, Revlon, Inc. became the parent of a new consolidated group for federal income tax purposes and Products Corporation's federal taxable income and loss are included in such group's consolidated tax returns. Accordingly, Revlon, Inc. and Products Corporation entered into a tax sharing agreement (the "Revlon Tax Sharing Agreement") pursuant to which Products Corporation is required to pay to Revlon, Inc. amounts equal to the taxes that Products Corporation would otherwise have had to pay if Products Corporation were to file separate federal, state or local income tax returns, limited to the amount, and payable only at such times, as Revlon, Inc. will be required to make payments to the applicable taxing authorities. There were no federal tax payments or payments in lieu of taxes from Revlon, Inc. to Revlon Holdings pursuant to the MacAndrews & Forbes Tax Sharing Agreement in 2015 or 2014 with respect to periods covered by the MacAndrews & Forbes Tax Sharing Agreement, and the Company expects that there will not be any such payments in 2016. During 2015, there were no federal tax payments from Products Corporation to Revlon, Inc. pursuant to the Revlon Tax Sharing Agreement with respect to 2015 or 2014. During 2014, there was $0.3 million in federal tax payments from Products Corporation to Revlon, Inc. pursuant to the Revlon Tax Sharing Agreement with respect to 2014. The Company expects that there will be no federal tax payments from Products Corporation to Revlon, Inc. pursuant to the Revlon Tax Sharing Agreement during 2016 with respect to 2015. Pursuant to the asset transfer agreement referred to in Note 20, “Related Party Transactions - Transfer Agreements,” Products Corporation assumed all tax liabilities of Revlon Holdings other than (i) certain income tax liabilities arising prior to January 1, 1992 to the extent such liabilities exceeded the reserves on Revlon Holdings' books as of January 1, 1992 or were not of the nature reserved for and (ii) other tax liabilities to the extent such liabilities are related to the business and assets retained by Revlon Holdings. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Loss [Abstract] | ||
ACCUMULATED OTHER COMPREHENSIVE LOSS | 13. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss as of June 30, 2016 are as follows: Foreign Currency Translation Actuarial (Loss) Gain on Post-retirement Benefits Deferred Gain (Loss) - Hedging Other Accumulated Other Comprehensive Loss Balance at January 1, 2016 $ (23.5 ) $ (217.7 ) $ (3.8 ) $ (0.3 ) $ (245.3 ) Currency translation adjustment, net of tax of $0.6 million 5.3 5.3 Amortization of pension related costs, net of tax of $0.7 million (a) 3.8 3.8 Revaluation of derivative financial instrument, net of amounts reclassified into earnings and tax benefit of $0.4 million (b) $ (0.7 ) (0.7 ) Other comprehensive income (loss) 5.3 3.8 (0.7 ) — 8.4 Balance at June 30, 2016 $ (18.2 ) $ (213.9 ) $ (4.5 ) $ (0.3 ) $ (236.9 ) (a) Amounts represent the change in accumulated other comprehensive loss as a result of the amortization of actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 11, “Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. (b) For the six months ended June 30, 2016 , the Company's 2013 Interest Rate Swap was deemed effective and therefore, the changes in fair value related to the 2013 Interest Rate Swap were recorded in other comprehensive income (loss). See Note 10, "Financial Instruments," for further discussion of the 2013 Interest Rate Swap. As shown above, comprehensive loss includes changes in the fair value of the 2013 Interest Rate Swap, which qualifies for hedge accounting. A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of June 30, 2016 are as follows: 2013 Interest Rate Swap Beginning accumulated losses at March 31, 2016 (4.7 ) Reclassifications into earnings (net of $0.4 million tax expense) (a) 0.7 Change in fair value (net of $0.3 million tax benefit) (0.5 ) Ending accumulated losses at June 30, 2016 $ (4.5 ) 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2015 (3.8 ) Reclassifications into earnings (net of $0.8 million tax expense) (a) 1.3 Change in fair value (net of $1.2 million tax benefit) (2.0 ) Ending accumulated losses at June 30, 2016 $ (4.5 ) (a) Reclassified to interest expense. A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of June 30, 2015 are as follows: 2013 Interest Rate Swap Beginning accumulated losses at March 31, 2015 (4.1 ) Reclassifications into earnings (net of $0.2 million tax expense) (a) 0.3 Change in fair value (net of $0.2 million tax benefit) (0.4 ) Ending accumulated losses at June 30, 2015 $ (4.2 ) 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2014 (2.2 ) Reclassifications into earnings (net of $0.2 million tax expense) (a) 0.3 Change in fair value (net of $1.4 million tax benefit) (2.3 ) Ending accumulated losses at June 30, 2015 $ (4.2 ) (a) Reclassified to interest expense. | 17. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss as of December 31, 2015 , 2014 and 2013 are as follows: Foreign Currency Translation Actuarial (Loss) Gain on Post-retirement Benefits Deferred Gain (Loss) - Hedging Other Accumulated Other Comprehensive Loss Balance at January 1, 2013 $ 23.3 $ (231.5 ) $ — $ — $ (208.2 ) Currency translation adjustment, net of tax of $3.3 million (4.1 ) — — — (4.1 ) Amortization of pension related costs, net of tax of $(1.2) million (a) — 7.7 — — 7.7 Pension re-measurement, net of tax of $(33.5) million — 53.3 — — 53.3 Revaluation of derivative financial instrument, net of tax of $(1.0) million (b) — — 1.5 — 1.5 Balance at December 31, 2013 $ 19.2 $ (170.5 ) $ 1.5 $ — $ (149.8 ) Currency translation adjustment, net of tax of $2.1 million (24.6 ) — — — (24.6 ) Amortization of pension related costs, net of tax of $(0.1) million (a) — 4.5 — — 4.5 Pension re-measurement, net of tax of $42.0 million — (69.6 ) — — (69.6 ) Revaluation of derivative financial instrument, net of tax of $2.3 million (b) — — (3.7 ) — (3.7 ) Other — 0.3 — (0.3 ) — Balance at December 31, 2014 $ (5.4 ) $ (235.3 ) $ (2.2 ) $ (0.3 ) $ (243.2 ) Currency translation adjustment, net of tax of $5.1 million $ (18.1 ) (18.1 ) Amortization of pension related costs, net of tax of $(1.3) million (a) $ 7.2 7.2 Pension re-measurement, net of tax of $3.3 million $ (6.9 ) (6.9 ) Settlement of certain pension liabilities, net of tax of $(3.7) million (b) $ 17.3 $ — 17.3 Revaluation of derivative financial instrument, net of amounts reclassified into earnings and tax benefit of $1.0 million (c) $ (1.6 ) (1.6 ) Other comprehensive loss (18.1 ) 17.6 (1.6 ) — (2.1 ) Balance at December 31, 2015 $ (23.5 ) $ (217.7 ) $ (3.8 ) $ (0.3 ) $ (245.3 ) (a) Amounts represent the change in Accumulated Other Comprehensive Loss as a result of the amortization of actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 14, “Savings Plan, Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. (b) Amount primarily consists of the pension lump sum settlement charge, net of taxes, recorded during the fourth quarter of 2015. See Note 14, “Savings Plan, Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. (c) For the 2015, 2014 and 2013, the Company's 2013 Interest Rate Swap was deemed effective and therefore, the changes in fair value related to the 2013 Interest Rate Swap were recorded in other comprehensive income (loss). See Note 13, "Financial Instruments," for further discussion of the 2013 Interest Rate Swap. As shown above, comprehensive loss includes changes in the fair value of the 2013 Interest Rate Swap, which qualifies for hedge accounting. A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of December 31, 2015 are as follows: 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2014 (2.2 ) Reclassifications into earnings (net of $1.0 million tax expense) (a) 1.6 Change in fair value (net of $2.0 million tax benefit) (3.2 ) Ending accumulated losses at December 31, 2015 $ (3.8 ) (a) Reclassified to interest expense. There were no amounts reclassified into earnings during 2014 or 2013. |
SEGMENT DATA AND RELATED INFORM
SEGMENT DATA AND RELATED INFORMATION - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Segment Data and Related Information [Abstract] | ||
SEGMENT DATA AND RELATED INFORMATION | 14. SEGMENT DATA AND RELATED INFORMATION Operating segments include components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the Company's “Chief Executive Officer”) in deciding how to allocate resources and in assessing the Company's performance. As a result of the similarities in the procurement, manufacturing and distribution processes for the Company’s products, much of the information provided in the Consolidated Financial Statements, and provided in the segment table below, is similar to, or the same as, that reviewed on a regular basis by the Company's Chief Executive Officer. At June 30, 2016 , the Company’s operations are organized into the following reportable segments: • Consumer - The Consumer segment is comprised of the Company's consumer brands, which primarily include Revlon , Almay , SinfulColors and Pure Ice in color cosmetics; Revlon ColorSilk in women’s hair color; Revlon in beauty tools; and Mitchum in anti-perspirant deodorants. The Company’s principal customers for its consumer products include large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, the Internet/e-commerce, television shopping, department stores, one-stop shopping beauty retailers, specialty cosmetics stores and perfumeries in the U.S. and internationally. The Consumer segment also includes a skincare line under the Natural Honey brand and a hair color line under the Llongueras brand sold to large volume retailers and other retailers, primarily in Spain, which were acquired as part of the Colomer Acquisition. In October 2015 and in May 2016, the Company acquired the U.S. Cutex business and Cutex International business and related assets, respectively. The results of operations relating to the sales of Cutex nail care products are included within the Consumer segment. • Professional - The Professional segment is comprised primarily of the brands which the Company acquired in the Colomer Acquisition, which include Revlon Professional in hair color and hair care; CND -branded products in nail polishes and nail enhancements; and American Crew in men’s grooming products, all of which are sold worldwide to professional salons. The Company’s principal customers for its professional products include hair and nail salons and distributors to professional salons in the U.S. and internationally. The Professional segment also includes a multi-cultural line consisting of Creme of Nature hair care products sold to large volume retailers, other retailers and professional salons, primarily in the U.S. • Other - The Other segment primarily includes the operating results of the CBB business and related purchase accounting for the CBB Acquisition. CBB develops, manufactures, markets and distributes fragrances and other beauty products under various celebrity, lifestyle and fashion brands licensed from third parties, principally through department stores and selective distribution in international territories. The results included within the Other segment are not material to the Company’s consolidated results of operations. The Company's management evaluates segment profit, which is defined as income from continuing operations before interest, taxes, depreciation, amortization, stock-based compensation expense, gains/losses on foreign currency fluctuations, gains/losses on the early extinguishment of debt and miscellaneous expenses, for each of the Company's reportable segments. Segment profit also excludes unallocated corporate expenses and the impact of certain items that are not directly attributable to the reportable segments' underlying operating performance, which includes the impacts of: (i) restructuring and related charges; (ii) acquisition and integration costs; (iii) deferred compensation related to the accounting for the CBB Acquisition; and (iv) costs of sales resulting from a fair value adjustment in the second quarter of 2016 and 2015 to inventory acquired in the Cutex International Acquisition and CBB Acquisition, respectively. Such items are shown below in the table reconciling segment profit to consolidated income from continuing operations before income taxes. Unallocated corporate expenses primarily include general and administrative expenses related to the corporate organization. These expenses are recorded in unallocated corporate expenses, as these items are centrally directed and controlled and are not included in internal measures of segment operating performance. The Company does not have any material inter-segment sales. The accounting policies for each of the reportable segments are the same as those described in Note 1, “Description of Business and Summary of Significant Accounting Policies” in the Company's 2015 Form 10-K. The Company's assets and liabilities are managed centrally and are reported internally in the same manner as the Consolidated Financial Statements; thus, no additional information regarding assets and liabilities of the Company’s reportable segments is produced for the Company's Chief Executive Officer or included in these Consolidated Financial Statements. The following table is a comparative summary of the Company’s net sales and segment profit by reportable segment for the three and six months ended June 30, 2016 and 2015 . Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Segment Net Sales: Consumer $ 359.5 $ 354.7 $ 679.5 $ 679.0 Professional 123.3 123.4 238.4 237.6 Other $ 6.1 $ 4.3 10.6 4.3 Total $ 488.9 $ 482.4 $ 928.5 $ 920.9 Segment Profit: Consumer $ 81.0 $ 83.8 $ 139.4 $ 146.0 Professional 24.1 24.3 49.7 53.5 Other $ 0.1 $ 0.2 (0.8 ) 0.2 Total $ 105.2 $ 108.3 $ 188.3 $ 199.7 Reconciliation: Segment Profit $ 105.2 $ 108.3 $ 188.3 $ 199.7 Less: Unallocated corporate expenses 16.2 15.8 30.4 30.5 Depreciation and amortization 26.3 25.2 52.2 50.8 Non-cash stock compensation expense 1.1 1.2 3.3 2.8 Non-Operating items: Restructuring and related charges 0.5 (3.0 ) 1.8 (2.3 ) Acquisition and integration costs 5.5 4.7 6.0 5.9 Deferred compensation related to CBB acquisition 0.9 0.7 1.8 — 0.7 Inventory purchase accounting adjustment, cost of sales 0.1 0.6 0.1 0.6 Operating Income 54.6 63.1 92.7 110.7 Less: Interest Expense 20.9 20.5 41.9 40.5 Amortization of debt issuance costs 1.4 1.4 2.9 2.8 Foreign currency losses (gains), net 8.5 (7.9 ) 5.1 8.0 Miscellaneous, net 0.2 0.2 0.5 0.2 Income from continuing operations before income taxes $ 23.6 $ 48.9 $ 42.3 $ 59.2 As of June 30, 2016 , the Company had operations established in 23 countries outside of the U.S. and its products are sold throughout the world. Generally, net sales by geographic area are presented by attributing revenues from external customers on the basis of where the products are sold. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Geographic area: Net sales: United States $ 263.0 54% $ 267.0 55% $ 510.7 55% $ 511.4 56% Outside of the United States 225.9 46% 215.4 45% 417.8 45% 409.5 44% $ 488.9 $ 482.4 $ 928.5 $ 920.9 June 30, 2016 December 31, 2015 Long-lived assets, net: United States $ 853.0 77% $ 854.7 79% Outside of the United States 258.8 23% 232.4 21% $ 1,111.8 $ 1,087.1 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Classes of similar products: Net sales: Color cosmetics $ 263.4 54% $ 266.0 55% $ 487.7 52% $ 505.5 55% Hair care 134.7 27% 130.0 27% 266.8 29% 256.9 28% Beauty care and fragrance 90.8 19% 86.4 18% 174.0 19% 158.5 17% $ 488.9 $ 482.4 $ 928.5 $ 920.9 | 18. SEGMENT DATA AND RELATED INFORMATION Operating segments include components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the Company's “Chief Executive Officer”) in deciding how to allocate resources and in assessing the Company's performance. As a result of the similarities in the procurement, manufacturing and distribution processes for the Company’s products, much of the information provided in the Consolidated Financial Statements, and provided in the segment table below, is similar to, or the same as, that reviewed on a regular basis by the Company's Chief Executive Officer. At December 31, 2015 , the Company’s operations are organized into the following reportable segments: • Consumer - The Consumer segment is comprised of the Company's consumer brands, which primarily include Revlon , Almay , SinfulColors and Pure Ice in color cosmetics; Revlon ColorSilk in women’s hair color; Revlon in beauty tools; and Mitchum in anti-perspirant deodorants. The Company’s principal customers for its consumer products include large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, the Internet/e-commerce, television shopping, department stores, one-stop shopping beauty retailers, specialty cosmetics stores and perfumeries in the U.S. and internationally. The Consumer segment also includes a skincare line under the Natural Honey brand and hair color line under the Llongueras brand sold to large volume retailers and other retailers, primarily in Spain, which were acquired as part of the Colomer Acquisition. • Professional - The Professional segment is comprised primarily of the brands which the Company acquired in the Colomer Acquisition, which include Revlon Professional in hair color and hair care; CND -branded products in nail polishes and nail enhancements; and American Crew in men’s grooming products, all of which are sold worldwide to professional salons. The Company’s principal customers for its professional products include hair and nail salons and distributors to professional salons in the U.S. and internationally. The Professional segment also includes a multi-cultural line consisting of Creme of Nature hair care products sold to large volume retailers, other retailers and professional salons, primarily in the U.S. • Other - The Other segment primarily includes the operating results of the CBB business and related purchase accounting for the Company's April 2015 CBB Acquisition. CBB develops, manufactures, markets and distributes fragrances and other beauty products under various celebrity, lifestyle and fashion brands licensed from third parties, principally through department stores and selective distribution in international territories. The results included within the Other segment are not material to the Company's consolidated results of operations. The Company's management evaluates segment profit, which is defined as income from continuing operations before interest, taxes, depreciation, amortization, stock-based compensation expense, gains/losses on foreign currency fluctuations, gains/losses on the early extinguishment of debt and miscellaneous expenses, for each of the Company's reportable segments. Segment profit also excludes unallocated corporate expenses and the impact of certain items that are not directly attributable to the reportable segments' underlying operating performance, which includes the impacts of: (i) restructuring and related charges; (ii) acquisition and integration costs; (iii) goodwill impairment charge; (iv) pension lump sum settlement charges; (v) costs of sales resulting from a fair value adjustment to inventory acquired in acquisitions; (vi) deferred compensation related to the CBB Acquisition; (vii) insurance proceeds received in 2013 related to the 2011 fire that destroyed the Company's facility in Venezuela; and (viii) an accrual for estimated clean-up costs related to the Company's facility in Venezuela. Such items are shown below in the table reconciling segment profit to consolidated income from continuing operations before income taxes. Unallocated corporate expenses primarily include general and administrative expenses related to the corporate organization. These expenses are recorded in unallocated corporate expenses, as these items are centrally directed and controlled and are not included in internal measures of segment operating performance. During the second quarter of 2015, the Company removed pension-related costs for its U.S. qualified defined benefit pension plans from the measurement of its operating segment results. As a result, $8.2 million and $4.9 million in pension-related costs were reclassified from the measurement of Consumer segment profit and included as a component of unallocated corporate expenses for 2014 and 2013, respectively. The Company does not have any material inter-segment sales. The accounting policies for each of the reportable segments are the same as those described in Note 1, “Description of Business and Summary of Significant Accounting Policies.” The Company's assets and liabilities are managed centrally and are reported internally in the same manner as the Consolidated Financial Statements; thus, no additional information regarding assets and liabilities of the Company’s reportable segments is produced for the Company's Chief Executive Officer or included in these Consolidated Financial Statements. The following table is a comparative summary of the Company’s net sales and segment profit by reportable segment for each of 2015, 2014 , and 2013. In the table below, certain prior period amounts have been reclassified to conform to the presentation for 2015. Twelve Months Ended December 31, 2015 2014 2013 Segment Net Sales: Consumer $ 1,414.8 $ 1,438.3 $ 1,394.2 Professional 471.1 502.7 100.5 Other $ 28.4 $ — $ — Total $ 1,914.3 $ 1,941.0 $ 1,494.7 Segment Profit: Consumer (a) $ 360.2 $ 339.4 $ 342.3 Professional 103.9 104.8 5.1 Other $ 1.4 $ — $ — Total $ 465.5 $ 444.2 $ 347.4 Reconciliation: Segment Profit $ 465.5 $ 444.2 $ 347.4 Less: Unallocated corporate expenses (a) 79.0 59.2 53.8 Depreciation and amortization 103.2 102.6 — 76.7 Non-cash stock compensation expense 5.1 5.5 0.2 Non-Operating items: Restructuring and related charges 11.6 22.6 4.5 Acquisition and integration costs 8.0 6.4 25.4 Inventory purchase accounting adjustment, cost of sales 0.9 2.6 8.5 Pension Lump sum settlement 20.7 — — Goodwill impairment charge 9.7 — — Deferred Compensation related to CBB Acquisition 2.5 — — Gain from insurance proceeds related to Venezuela fire — — (26.4 ) Accrual for clean-up costs related to destroyed facility in Venezuela — — 7.6 Operating Income 224.8 245.3 197.1 Less: Interest Expense 83.3 84.4 78.6 Amortization of debt issuance costs 5.7 5.5 3.5 Loss on early extinguishment of debt — 2.0 29.7 Foreign currency losses (gains), net 15.7 25.0 3.7 Miscellaneous, net 0.4 1.2 1.0 Income from continuing operations before income taxes $ 119.7 $ 127.2 $ 80.6 (a) During the second quarter of 2015, the Company removed pension-related costs for its U.S. qualified defined benefit pension plans from the measurement of its operating segment results. As a result, $8.2 million and $4.9 million of pension-related costs were reclassified from the measurement of Consumer segment profit and included as a component of unallocated corporate expenses for 2014 and 2013, respectively. As of December 31, 2015 , the Company had operations established in 22 countries outside of the U.S. and its products are sold throughout the world. Generally, net sales by geographic area are presented by attributing revenues from external customers on the basis of where the products are sold. Walmart and its affiliates worldwide accounted for approximately 18% , 16% and 20% of the Company’s worldwide net sales in 2015, 2014 and 2013, respectively, and such sales are primarily included within the net sales of the Consumer segment. The Company expects that Walmart and a small number of other customers will, in the aggregate, continue to account for a large portion of the Company’s net sales. As is customary in the consumer products industry, none of the Company’s customers is under an obligation to continue purchasing products from the Company in the future. In the tables below, certain prior year amounts have been reclassified to conform to the current period’s presentation. Year Ended December 31, 2015 2014 2013 Geographic area: Net sales: United States $ 1,043.7 55% $ 1,021.9 53% $ 832.8 56% Outside of the United States 870.6 45% 919.1 47% $ 661.9 44% $ 1,914.3 $ 1,941.0 $ 1,494.7 December 31, 2015 December 31, 2014 Long-lived assets, net: United States $ 874.7 79% $ 845.5 76% Outside of the United States 232.4 21% 271.7 24% $ 1,107.1 $ 1,117.2 Year Ended December 31, 2015 2014 2013 Classes of similar products: Net sales: Color cosmetics $ 1,026.4 54% $ 1,032.4 53% $ 926.4 62% Hair care 522.1 27% 545.0 28% 263.9 18% Beauty care and fragrance 365.8 19% 363.6 19% 304.4 20% $ 1,914.3 $ 1,941.0 $ 1,494.7 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | ||
COMMITMENTS AND CONTINGENCIES | 15. CONTINGENCIES The Company is involved in various routine legal proceedings incidental to the ordinary course of its business. The Company believes that the outcome of all pending legal proceedings in the aggregate is not reasonably likely to have a material adverse effect on the Company’s business, financial condition and/or its results of operations. However, in light of the uncertainties involved in legal proceedings generally, the ultimate outcome of a particular matter could be material to the Company’s operating results for a particular period depending on, among other things, the size of the loss or the nature of the liability imposed and the level of the Company’s income for that particular period. | 19. COMMITMENTS AND CONTINGENCIES Products Corporation currently leases facilities for executive offices, warehousing, research and development and sales operations and leases various types of equipment under operating and capital lease agreements. Rental expense was $18.6 million , $26.6 million and $19.8 million for 2015, 2014 and 2013, respectively. Minimum rental commitments under all non-cancelable leases, including those pertaining to idled facilities, are presented in the following table: Minimum Rental Commitments Total 2016 2017 2018 2019 2020 Thereafter Capital leases $ 5.4 $ 3.1 $ 1.4 $ 0.6 $ 0.3 $ — $ — Operating leases 127.1 22.6 17.7 14.4 12.8 7.7 51.9 The Company is involved in various routine legal proceedings incidental to the ordinary course of its business. The Company believes that the outcome of all pending legal proceedings in the aggregate is not reasonably likely to have a material adverse effect on the Company’s business, financial condition and/or its results of operations. However, in light of the uncertainties involved in legal proceedings generally, the ultimate outcome of a particular matter could be material to the Company’s operating results for a particular period depending on, among other things, the size of the loss or the nature of the liability imposed and the level of the Company’s income for that particular period. |
RELATED PARTY TRANSACTIONS - 10
RELATED PARTY TRANSACTIONS - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | 16. RELATED PARTY TRANSACTIONS Reimbursement Agreements As previously disclosed in the Company's 2015 Form 10-K, Revlon, Inc., Products Corporation and MacAndrews & Forbes have entered into reimbursement agreements (the "Reimbursement Agreements") pursuant to which: (i) MacAndrews & Forbes is obligated to provide (directly or through its affiliates) certain professional and administrative services, including, without limitation, employees, to the Company, and to purchase services from third party providers, such as insurance, legal, accounting and air transportation services, on behalf of the Company, to the extent requested by Products Corporation; and (ii) Products Corporation is obligated to provide certain professional and administrative services, including, without limitation, employees, to MacAndrews & Forbes and to purchase services from third party providers, such as insurance, legal and accounting services, on behalf of MacAndrews & Forbes, to the extent requested by MacAndrews & Forbes, provided that in each case the performance of such services does not cause an unreasonable burden to MacAndrews & Forbes or Products Corporation, as the case may be. The Company reimburses MacAndrews & Forbes for the allocable costs of the services that MacAndrews & Forbes purchases for or provides to the Company and for the reasonable out-of-pocket expenses that MacAndrews & Forbes incurs in connection with the provision of such services. MacAndrews & Forbes reimburses Products Corporation for the allocable costs of the services that Products Corporation purchases for or provides to MacAndrews & Forbes and for the reasonable out-of-pocket expenses incurred by Products Corporation in connection with the purchase or provision of such services. Each of the Company, on the one hand, and MacAndrews & Forbes, on the other, has agreed to indemnify the other party for losses arising out of the services provided by it under the Reimbursement Agreements, other than losses resulting from its willful misconduct or gross negligence. The Reimbursement Agreements may be terminated by either party on 90 days' notice. The Company does not intend to request services under the Reimbursement Agreements unless their costs would be at least as favorable to the Company as could be obtained from unaffiliated third parties. The Company participates in MacAndrews & Forbes' directors and officers liability insurance program (the “D&O Insurance Program”), as well as its other insurance coverages, such as property damage, business interruption, liability and other coverages, which cover the Company, as well as MacAndrews & Forbes and its subsidiaries. The limits of coverage for certain of the policies are available on an aggregate basis for losses to any or all of the participating companies and their respective directors and officers. The Company reimburses MacAndrews & Forbes from time to time for their allocable portion of the premiums for such coverage or the Company pays the insurers directly, which premiums the Company believes are more favorable than the premiums that the Company would pay were it to secure stand-alone coverage. Any amounts paid by the Company directly to MacAndrews & Forbes in respect of premiums are included in the amounts paid under the Reimbursement Agreements. The net activity related to services provided and/or purchased under the Reimbursement Agreements during the six months ended June 30, 2016 and 2015 was $1.4 million and $2.3 million , respectively, which primarily includes partial payments made by the Company to MacAndrews & Forbes during the first quarter of 2016 and 2015 for premiums related to the Company's allocable portion of the 5 -year renewal of the D&O Insurance Program for the period from January 31, 2012 through January 31, 2017 . As of June 30, 2016 and December 31, 2015 , a receivable balance of nil and $0.1 million , respectively, from MacAndrews & Forbes were included in the Company's Balance Sheets for transactions subject to the Reimbursement Agreements. Other During the six months ended June 30, 2016 and 2015, the Company engaged several companies in which MacAndrews & Forbes had a controlling interest to provide the Company with various ordinary course business services. These services included processing approximately $24.8 million and $16.1 million of coupon redemptions for the Company's retail customers for the six months ended June 30, 2016 and 2015, respectively, for which the Company paid fees of approximately $0.2 million and $0.2 million during the six months ended June 30, 2016 and 2015, respectively, and other similar advertising, coupon redemption and raw material supply services, for which the Company paid fees aggregating to less than $0.2 million during the six months ended June 30, 2016 and 2015, respectively. The Company believes that its engagement of each of these affiliates was on arm's length terms, taking into account each firm's expertise in its respective field, and that the fees paid were at least as favorable as those available from unaffiliated parties. | 20. RELATED PARTY TRANSACTIONS As of December 31, 2015 , MacAndrews & Forbes beneficially owned approximately 78% of Revlon, Inc.'s Class A Common Stock representing approximately 78% of Revlon, Inc.’s outstanding shares of voting capital stock. Revlon, Inc. in turn directly owns all 5,260 outstanding shares of Products Corporation's common stock. As a result, MacAndrews & Forbes is able to elect the entire Board of Directors of Revlon, Inc. and Products Corporation and control the vote on all matters submitted to a vote of Revlon, Inc.'s and Products Corporation's stockholders. MacAndrews & Forbes is wholly-owned by Ronald O. Perelman, Chairman of Revlon, Inc.’s and Products Corporation's Board of Directors. Transfer Agreements In June 1992, Revlon, Inc. and Products Corporation entered into an asset transfer agreement with Revlon Holdings LLC, a Delaware limited liability company and formerly a Delaware corporation known as Revlon Holdings Inc. ("Revlon Holdings"), and which is an affiliate and an indirect wholly-owned subsidiary of MacAndrews & Forbes, and certain of Revlon Holdings’ wholly-owned subsidiaries. Revlon, Inc. and Products Corporation also entered into a real property asset transfer agreement with Revlon Holdings. Pursuant to such agreements, in June 1992, Revlon Holdings transferred certain assets to Products Corporation and Products Corporation assumed all of the liabilities of Revlon Holdings, other than certain specifically excluded assets and liabilities (the liabilities excluded are referred to as the "Excluded Liabilities"). Certain consumer products lines sold in demonstrator-assisted retailers considered not integral to the Company's business and that historically had not been profitable and certain other assets and liabilities were retained by Revlon Holdings. Revlon Holdings agreed to indemnify Revlon, Inc. and Products Corporation against losses arising from the Excluded Liabilities, and Revlon, Inc. and Products Corporation agreed to indemnify Revlon Holdings against losses arising from the liabilities assumed by Products Corporation. The amounts reimbursed by Revlon Holdings to Products Corporation for the Excluded Liabilities was $0.3 million for 2015 and $0.2 million for each of 2014 and 2013. A $0.2 million and $0.1 million receivable balance from MacAndrews & Forbes was included within prepaid expenses and other in the Company’s Consolidated Balance Sheets for transactions subject to the Transfer Agreements, at December 31, 2015 and 2014, respectively. Reimbursement Agreements Revlon, Inc., Products Corporation and MacAndrews & Forbes Inc. (a wholly-owned subsidiary of MacAndrews & Forbes) have entered into reimbursement agreements (the "Reimbursement Agreements") pursuant to which: (i) MacAndrews & Forbes Inc. is obligated to provide (directly or through its affiliates) certain professional and administrative services, including, without limitation, employees, to the Company, and to purchase services from third party providers, such as insurance, legal, accounting and air transportation services, on behalf of the Company, to the extent requested by Products Corporation; and (ii) Products Corporation is obligated to provide certain professional and administrative services, including, without limitation, employees, to MacAndrews & Forbes and to purchase services from third party providers, such as insurance, legal and accounting services, on behalf of MacAndrews & Forbes, to the extent requested by MacAndrews & Forbes, provided that in each case the performance of such services does not cause an unreasonable burden to MacAndrews & Forbes or Products Corporation, as the case may be. The Company reimburses MacAndrews & Forbes for the allocable costs of the services that MacAndrews & Forbes purchases for or provides to the Company and for the reasonable out-of-pocket expenses that MacAndrews & Forbes incurs in connection with the provision of such services. MacAndrews & Forbes reimburses Products Corporation for the allocable costs of the services that Products Corporation purchases for or provides to MacAndrews & Forbes and for the reasonable out-of-pocket expenses incurred by Products Corporation in connection with the purchase or provision of such services. Each of the Company, on the one hand, and MacAndrews & Forbes Inc., on the other, has agreed to indemnify the other party for losses arising out of the services provided by it under the Reimbursement Agreements, other than losses resulting from its willful misconduct or gross negligence. The Reimbursement Agreements may be terminated by either party on 90 days' notice. The Company does not intend to request services under the Reimbursement Agreements unless their costs would be at least as favorable to the Company as could be obtained from unaffiliated third parties. Revlon Inc., and the Company participate in MacAndrews & Forbes' directors and officers liability insurance program (the “D&O Insurance Program”), as well as its other insurance coverages, such as property damage, business interruption, liability and other coverages, which cover Revlon, Inc. and the Company, as well as MacAndrews & Forbes and its subsidiaries. The limits of coverage for certain of the policies are available on an aggregate basis for losses to any or all of the participating companies and their respective directors and officers. The Company reimburses MacAndrews & Forbes from time to time for their allocable portion of the premiums for such coverage or the Company pays the insurers directly, which premiums the Company believes are more favorable than the premiums that the Company would pay were it to secure stand-alone coverage. Any amounts paid by the Company directly to MacAndrews & Forbes in respect of premiums are included in the amounts paid under the Reimbursement Agreements. The net activity related to services provided and/or (purchased) under the Reimbursement Agreements during 2015 was $(2.1) million , which primarily included partial payments made by the Company to MacAndrews & Forbes during 2015 for premiums related to the Company's allocable portion of the 5-year renewal of the D&O Insurance Program for the period from January 31, 2012 through January 31, 2017 . The net activity related to services provided and/or (purchased) under the Reimbursement Agreements during 2014 was $(3.8) million , which primarily included partial payments made by the Company to MacAndrews & Forbes during 2014 for premiums related to the Company's allocable portion of the 5 -year renewal of the D&O Insurance Program for the period from January 31, 2012 through January 31, 2017 . The net activity related to services provided and/or (purchased) under the Reimbursement Agreements during 2013 was $(6.1) million , which primarily included a $6.1 million partial payment made by the Company to MacAndrews & Forbes during 2013 for premiums related to the Company's allocable portion of the 5 -year renewal of the D&O Insurance Program for the period from January 31, 2012 through January 31, 2017 , . The receivable balances from MacAndrews & Forbes were $0.1 million at December 31, 2015 and nil December 31, 2014 for transactions subject to the Reimbursement Agreements. Tax Sharing Agreements As a result of a debt-for-equity exchange transaction completed in March 2004 (the “2004 Revlon Exchange Transactions”), as of March 25, 2004, Revlon, Inc., Products Corporation and their U.S. subsidiaries were no longer included in the MacAndrews & Forbes Group for U.S. federal income tax purposes. See Note 16, “Income Taxes,” for further discussion on these agreements and related transactions in 2015, 2014 and 2013. Other Certain of Products Corporation’s debt obligations, including the Amended Credit Agreements and Products Corporation's 5¾% Senior Notes, have been, and may in the future be, supported by, among other things, guarantees from all of Products Corporation's domestic subsidiaries (subject to certain limited exceptions) and, for the Amended Credit Agreements, guarantees from Revlon, Inc. The obligations under such guarantees are secured by, among other things, all of the capital stock of Products Corporation and, its domestic subsidiaries (subject to certain limited exceptions) and 66% of the capital stock of Products Corporation's and its domestic subsidiaries' first-tier foreign subsidiaries. See Note 11, “Long Term Debt,” for a discussion of the terms of the Amended Credit Agreements and 5¾% Senior Notes. During 2015 and 2014, the Company engaged several companies in which MacAndrews & Forbes had a controlling interest to provide the Company with various ordinary course business services. These services included: (i) advertising inserts, for which the Company paid fees of approximately $0.2 million during 2015; (ii) processing approximately $32.9 million and $35.8 million of coupon redemptions for the Company's retail customers for 2015 and 2014, respectively, for which the Company paid fees of approximately $0.4 million and $0.4 million during 2015 and 2014, respectively; and (iii) other similar advertising, coupon redemption and raw material supply services, for which the Company paid fees aggregating to less than $0.1 million during 2015. The Company believes that its engagement of each of these affiliates was on arm's length terms, taking into account each firm's expertise in its respective field, and that the fees paid were at least as favorable as those available from unaffiliated parties. |
QUARTERLY RESULTS OF OPERATIONS
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) - 10K | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Results of Operations [Abstract] | |
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 21. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following is a summary of the Company’s unaudited quarterly results of operations for each of 2015 and 2014: Year Ended December 31, 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 438.5 $ 482.4 $ 471.5 $ 521.9 Gross profit 296.2 321.1 303.7 325.5 (Loss) income from continuing operations, net of taxes (a)(b) 0.7 27.5 9.4 27.7 (Loss) income from discontinued operations, net of taxes (e) (0.1 ) — (1.7 ) (1.4 ) Net (loss) income (a)(b) 0.6 27.5 7.7 26.3 Year Ended December 31, 2014 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 469.8 $ 497.9 $ 472.3 $ 501.0 Gross profit 306.3 330.7 307.7 328.0 Income from continuing operations, net of taxes (c)(d) 10.2 15.9 15.8 4.1 (Loss) income from discontinued operations, net of taxes (e) (3.2 ) 3.7 0.4 0.4 Net income (d)(e) 7.0 19.6 16.2 4.5 (a) Income from continuing operations and net income for the first quarter of 2015 were unfavorably impacted by foreign currency losses, net, of $15.9 million , primarily due to the unfavorable impacts of the revaluation of certain U.S. Dollar denominated intercompany payables, as well as a $1.9 million foreign currency loss recognized in the first quarter of 2015 as a result of the re-measurement of Revlon Venezuela's balance sheet during the first quarter of 2015. (b) Income from continuing operations and net income for the fourth quarter of 2015 were impacted by: (i) a $20.7 million pension lump sum settlement charge related to the accounting for a one-time cash lump sum payment, which requires that a portion of pension losses within accumulated other comprehensive loss be realized in the period that related pension liabilities are settled (see Note 14, "Savings Plan, Pension and Post-retirement Benefits"); (ii) an increase in net income driven by the net reduction of the Company's deferred tax valuation allowance on its net deferred tax assets for certain foreign jurisdictions, which has been reflected in the provision for income taxes for 2015 (See Note 16, "Income Taxes"); (iii) a $9.7 million non-cash goodwill impairment charge related to the Global Color Brands reporting unit (see Note 8, "Goodwill and Intangible Assets"); and (iv) $9.5 million in restructuring charges related to the 2015 Efficiency Program (see Note 3, "Restructuring Charges"). (c) Income from continuing operations and net income for the first quarter of 2014 were unfavorably impacted by restructuring charges of $13.5 million related to the Integration Program, as well as $3.8 million of acquisition and integration costs related to the Colomer Acquisition. (See Note 2, "Business Combinations," and Note 3, “Restructuring Charges”). Additionally, in the first quarter of 2014, the Company incurred a $1.9 million aggregate loss on early extinguishment of debt due to the February 2014 Term Loan Amendment. (See Note 11, “Long-Term Debt”). (d) Income from continuing operations and net income for the second and third quarter of 2014 were unfavorably impacted by foreign currency losses, net, of $7.2 million and $9.3 million , respectively, related to the required re-measurement of Revlon Venezuela's monetary assets and liabilities at June 30, 2014, and the results of unfavorable impacts of the revaluation of certain U.S. Dollar denominated intercompany payables during the third quarter of 2014. (See Note 1, "Description of Business and Summary of Significant Accounting Policies - Foreign Currency Translation" for further discussion on Venezuela foreign currency restrictions and related devaluation). (e) (Loss) income from discontinued operations includes the results of the Company's former China operations (See Note 4, "Discontinued Operations"). |
GUARANTOR FINANCIAL INFORMATION
GUARANTOR FINANCIAL INFORMATION - 10K | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
GUARANTOR FINANCIAL INFORMATION | 18. GUARANTOR FINANCIAL INFORMATION Products Corporation’s 5¾% Senior Notes are fully and unconditionally guaranteed on a senior basis by Products Corporation’s domestic subsidiaries (other than certain immaterial subsidiaries) that also guarantee Products Corporation’s obligations under its Amended Credit Agreements (the “Guarantor Subsidiaries”). The following Condensed Consolidating Financial Statements present the financial information as of June 30, 2016 and December 31, 2015, and for each of the three and six months ended June 30, 2016 and 2015 for: (i) Products Corporation on a stand-alone basis; (ii) the Guarantor Subsidiaries on a stand-alone basis; (iii) the subsidiaries of Products Corporation that do not guarantee Products Corporation’s 5¾% Senior Notes (the “Non-Guarantor Subsidiaries”) on a stand-alone basis; and (iv) Products Corporation, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis. The Condensed Consolidating Financial Statements are presented on the equity method, under which the investments in subsidiaries are recorded at cost and adjusted for the applicable share of the subsidiary’s cumulative results of operations, capital contributions, distributions and other equity changes. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Condensed Consolidating Balance Sheets As of June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 61.9 $ 71.4 $ 52.5 $ — $ 185.8 Trade receivables, less allowances for doubtful accounts 93.9 45.3 129.2 — 268.4 Inventories 92.5 38.0 79.1 — 209.6 Prepaid expenses and other 154.6 6.8 40.1 — 201.5 Intercompany receivables 778.9 451.2 79.2 (1,309.3 ) — Investment in subsidiaries 576.4 (6.2 ) — (570.2 ) — Property, plant and equipment, net 127.4 26.7 62.7 — 216.8 Deferred income taxes 7.2 — 34.5 — 41.7 Goodwill 182.4 30.0 264.3 — 476.7 Intangible assets, net 53.8 152.8 122.3 — 328.9 Other assets 50.6 13.4 25.4 — 89.4 Total assets $ 2,179.6 $ 829.4 $ 889.3 $ (1,879.5 ) $ 2,018.8 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 14.1 $ — $ 14.1 Current portion of long-term debt 6.7 — 0.1 — 6.8 Accounts payable 74.2 28.7 84.7 — 187.6 Accrued expenses and other 134.4 16.5 82.3 — 233.2 Intercompany payables 427.6 461.3 420.4 (1,309.3 ) — Long-term debt 1,783.1 — 0.5 — 1,783.6 Other long-term liabilities 211.1 5.9 34.0 — 251.0 Total liabilities 2,637.1 512.4 636.1 (1,309.3 ) 2,476.3 Stockholder’s deficiency (457.5 ) 317.0 253.2 (570.2 ) (457.5 ) Total liabilities and stockholder’s deficiency $ 2,179.6 $ 829.4 $ 889.3 $ (1,879.5 ) $ 2,018.8 Condensed Consolidating Balance Sheets As of December 31, 2015 (as adjusted) Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 Trade receivables, less allowances for doubtful accounts 79.7 44.5 120.7 — 244.9 Inventories 88.1 34.5 61.2 — 183.8 Prepaid expenses and other 136.9 3.3 30.5 — 170.7 Intercompany receivables 692.1 366.5 95.2 (1,153.8 ) — Investment in subsidiaries 591.0 16.3 — (607.3 ) — Property, plant and equipment, net 124.8 28.1 62.4 — 215.3 Deferred income taxes 5.8 — 44.0 — 49.8 Goodwill 182.4 30.0 257.3 — 469.7 Intangible assets, net 56.6 156.7 104.7 — 318.0 Other assets 49.4 9.6 25.1 — 84.1 Total assets $ 2,148.3 $ 782.5 $ 893.5 $ (1,761.1 ) $ 2,063.2 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 11.3 $ — $ 11.3 Current portion of long-term debt 29.9 — 0.1 — 30.0 Accounts payable 85.3 29.2 86.8 — 201.3 Accrued expenses and other 175.1 18.9 78.4 — 272.4 Intercompany payables 360.4 401.0 392.4 (1,153.8 ) — Long-term debt 1,783.2 — 0.5 — 1,783.7 Other long-term liabilities 206.0 0.8 49.3 — 256.1 Total liabilities 2,639.9 449.9 618.8 (1,153.8 ) 2,554.8 Stockholder's deficiency (491.6 ) 332.6 274.7 (607.3 ) (491.6 ) Total liabilities and stockholder’s deficiency 2,148.3 782.5 893.5 (1,761.1 ) 2,063.2 Condensed Consolidating Statements of Income and Comprehensive Income For the Three Months Ended June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 229.4 $ 85.6 $ 187.8 $ (13.9 ) $ 488.9 Cost of sales 83.0 31.8 70.6 (13.9 ) 171.5 Gross profit 146.4 53.8 117.2 — 317.4 Selling, general and administrative expenses 123.7 37.2 95.9 — 256.8 Acquisition and integration costs 5.2 — 0.3 — 5.5 Restructuring charges and other, net (0.2 ) 0.1 0.6 — 0.5 Operating income 17.7 16.5 20.4 — 54.6 Other expenses (income): Intercompany interest, net (2.0 ) (0.2 ) 2.2 — — Interest expense 20.7 — 0.2 — 20.9 Amortization of debt issuance costs 1.4 — — — 1.4 Foreign currency losses (gains), net 1.8 (0.6 ) 7.3 — 8.5 Miscellaneous, net (12.5 ) (3.2 ) 15.9 — 0.2 Other expenses (income), net 9.4 (4.0 ) 25.6 — 31.0 Income (loss) from continuing operations before income taxes 8.3 20.5 (5.2 ) — 23.6 (Benefit from) provision for income taxes (3.8 ) 12.8 2.8 — 11.8 Income (loss) from continuing operations 12.1 7.7 (8.0 ) — 11.8 Loss from discontinued operations, net of taxes — — (2.5 ) — (2.5 ) Equity in loss of subsidiaries (2.8 ) (6.2 ) — 9.0 — Net income (loss) $ 9.3 $ 1.5 $ (10.5 ) $ 9.0 $ 9.3 Other comprehensive income (loss) 4.8 (3.1 ) (5.4 ) 8.5 4.8 Total comprehensive income (loss) $ 14.1 $ (1.6 ) $ (15.9 ) $ 17.5 $ 14.1 Condensed Consolidating Statements of Income and Comprehensive Income For the Three Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 268.4 $ 85.3 $ 178.6 $ (49.9 ) $ 482.4 Cost of sales 114.4 33.0 63.8 (49.9 ) 161.3 Gross profit 154.0 52.3 114.8 — 321.1 Selling, general and administrative expenses 119.3 40.2 97.4 — 256.9 Acquisition and integration costs 4.7 — — — 4.7 Restructuring charges and other, net (0.7 ) 0.6 — (3.5 ) — (3.6 ) Operating income 30.7 11.5 20.9 — 63.1 Other expenses (income): Intercompany interest, net (2.1 ) — 2.1 — — Interest expense 20.3 — 0.2 — 20.5 Amortization of debt issuance costs 1.4 — — — 1.4 Foreign currency (gains), net (1.4 ) — (6.5 ) — (7.9 ) Miscellaneous, net 11.4 (2.9 ) (8.3 ) — 0.2 Other expenses (income), net 29.6 (2.9 ) (12.5 ) — 14.2 Income from continuing operations before income taxes 1.1 14.4 33.4 — 48.9 Provision for income taxes 9.5 9.5 2.4 — 21.4 Loss (income) from continuing operations (8.4 ) 4.9 31.0 — 27.5 Income from discontinued operations, net of taxes — — — — — Equity in loss of subsidiaries 35.9 22.6 — (58.5 ) — Net income $ 27.5 $ 27.5 $ 31.0 $ (58.5 ) $ 27.5 Other comprehensive income (loss) 2.5 (1.8 ) 1.8 — 2.5 Total comprehensive income $ 30.0 $ 25.7 $ 32.8 $ (58.5 ) $ 30.0 Condensed Consolidating Statements of Income and Comprehensive Income For the Six Months Ended June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 428.1 $ 168.6 $ 346.0 $ (14.2 ) $ 928.5 Cost of sales 145.2 62.2 132.2 (14.2 ) 325.4 Gross profit 282.9 106.4 213.8 — 603.1 Selling, general and administrative expenses 247.7 72.8 182.1 — 502.6 Acquisition and integration costs 5.6 — 0.4 — 6.0 Restructuring charges and other, net — 0.7 1.1 — 1.8 Operating income 29.6 32.9 30.2 — 92.7 Other expenses (income): Intercompany interest, net (4.3 ) 0.1 4.2 — — Interest expense 41.6 — 0.3 — 41.9 Amortization of debt issuance costs 2.9 — — — 2.9 Foreign currency losses (gains), net 2.1 (0.3 ) 3.3 — 5.1 Miscellaneous, net (34.7 ) 3.8 31.4 — 0.5 Other expenses, net 7.6 3.6 39.2 — 50.4 Income (loss) from continuing operations before income taxes 22.0 29.3 (9.0 ) — 42.3 (Benefit from) provision for income taxes (8.5 ) 26.2 0.2 — 17.9 Income (loss) from continuing operations 30.5 3.1 (9.2 ) — 24.4 Loss from discontinued operations, net of taxes — — (2.1 ) — (2.1 ) Equity in loss of subsidiaries (8.2 ) (12.1 ) — 20.3 — Net income (loss) $ 22.3 $ (9.0 ) $ (11.3 ) $ 20.3 $ 22.3 Other comprehensive income (loss) 8.4 (7.5 ) (8.2 ) 15.7 8.4 Total comprehensive income (loss) $ 30.7 $ (16.5 ) $ (19.5 ) $ 36.0 $ 30.7 Condensed Consolidating Statements of Income and Comprehensive Income For the Six Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 511.8 $ 166.3 $ 334.8 $ (92.0 ) $ 920.9 Cost of sales 215.6 60.7 119.3 (92.0 ) 303.6 Gross profit 296.2 105.6 215.5 — 617.3 Selling, general and administrative expenses 245.8 68.8 189.2 — 503.8 Acquisition and integration costs 5.9 — — — 5.9 Restructuring charges and other, net (0.5 ) 0.7 (3.3 ) — (3.1 ) Operating income 45.0 36.1 29.6 — 110.7 Other expenses (income): Intercompany interest, net (4.1 ) (0.1 ) 4.2 — — Interest expense 40.3 — 0.2 — 40.5 Amortization of debt issuance costs 2.8 — — — 2.8 Foreign currency (gains) losses, net (1.2 ) (0.5 ) 9.7 — 8.0 Miscellaneous, net (6.2 ) (1.4 ) 7.8 — 0.2 Other expenses (income), net 31.6 (2.0 ) 21.9 — 51.5 Income from continuing operations before income taxes 13.4 38.1 7.7 — 59.2 Provision for income taxes 11.0 18.1 1.9 — 31.0 Income from continuing operations 2.4 20.0 5.8 — 28.2 Loss from discontinued operations, net of taxes — — (0.1 ) — (0.1 ) Equity in loss of subsidiaries 25.7 12.4 — (38.1 ) — Net income $ 28.1 $ 32.4 $ 5.7 $ (38.1 ) $ 28.1 Other comprehensive loss (11.1 ) (2.8 ) (13.3 ) 16.1 (11.1 ) Total comprehensive income (loss) $ 17.0 $ 29.6 $ (7.6 ) $ (22.0 ) $ 17.0 Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash used in operating activities $ (27.2 ) $ (20.4 ) $ (9.6 ) $ — $ (57.2 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (13.2 ) (1.2 ) (4.2 ) — (18.6 ) Business acquisition — — (29.2 ) — (29.2 ) Proceeds from the sale of certain assets — 0.4 — — 0.4 Net cash used in investing activities (13.2 ) (0.8 ) (33.4 ) — (47.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net (decrease) increase in short-term borrowings and overdraft (11.2 ) — 2.8 — (8.4 ) Repayments under the Acquisition Term Loan (15.1 ) — — — (15.1 ) Prepayments under the 2011 Term Loan (11.5 ) — — — (11.5 ) Other financing activities (1.4 ) — (0.2 ) — (1.6 ) Net cash (used in) provided by financing activities (39.2 ) — 2.6 — (36.6 ) Effect of exchange rate changes on cash and cash equivalents — (0.4 ) 0.5 — 0.1 Net decrease in cash and cash equivalents (79.6 ) (21.6 ) (39.9 ) — (141.1 ) Cash and cash equivalents at beginning of period $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 Cash and cash equivalents at end of period $ 61.9 $ 71.4 $ 52.5 $ — $ 185.8 Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash (used in) provided by operating activities $ (1.7 ) $ (0.3 ) $ 4.5 $ — $ 2.5 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (10.6 ) (2.5 ) (4.1 ) — (17.2 ) Business acquisition, net of cash acquired — — (34.2 ) — (34.2 ) Proceeds from the sale of certain assets 0.4 1.5 0.1 — 2.0 Net cash used in investing activities (10.2 ) (1.0 ) (38.2 ) — (49.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase in short-term borrowings and overdraft 4.0 — 2.6 — 6.6 Repayments under the Acquisition Term Loan (15.9 ) — — — (15.9 ) Prepayments under the 2011 Term Loan (12.1 ) — — — (12.1 ) Other financing activities (1.9 ) — (0.2 ) — (2.1 ) Net cash (used in) provided by financing activities (25.9 ) — 2.4 — (23.5 ) Effect of exchange rate changes on cash and cash equivalents — — (5.9 ) — (5.9 ) Net decrease in cash and cash equivalents (37.8 ) (1.3 ) (37.2 ) — (76.3 ) Cash and cash equivalents at beginning of period $ 104.2 $ 88.1 $ 83.0 $ — $ 275.3 Cash and cash equivalents at end of period $ 66.4 $ 86.8 $ 45.8 $ — $ 199.0 | 22. GUARANTOR FINANCIAL INFORMATION Products Corporation's 5¾% Senior Notes are fully and unconditionally guaranteed on a senior basis by Products Corporation's domestic subsidiaries (other than certain immaterial subsidiaries) that guarantee Products Corporation's obligations under its Amended Credit Agreements (the "Guarantor Subsidiaries"). The following Condensed Consolidating Financial Statements present the financial information as of December 31, 2015 and December 31, 2014, and for the years ended December 31, 2015, 2014 and 2013 for (i) Products Corporation on a stand-alone basis, (ii) the Guarantor Subsidiaries on a stand-alone basis (iii) the subsidiaries of Products Corporation that do not guarantee Products Corporation's 5¾% Senior Notes (the "Non-Guarantor Subsidiaries") on a stand-alone basis; and (iv) Products Corporation, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis. The Condensed Consolidating Financial Statements are presented on the equity method, under which the investments in subsidiaries are recorded at cost and adjusted to the applicable share of the subsidiary's cumulative results of operations, capital contributions, distributions and other equity changes. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Condensed Consolidating Balance Sheets As of December 31, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 Trade receivables, less allowances for doubtful accounts 79.7 44.5 120.7 — 244.9 Inventories 88.1 34.5 61.2 — 183.8 Deferred income taxes - current 49.4 — 8.6 — 58.0 Prepaid expenses and other 136.9 3.3 30.5 — 170.7 Intercompany receivables 692.1 366.5 95.2 (1,153.8 ) — Investment in subsidiaries 591.0 16.3 — (607.3 ) — Property, plant and equipment, net 124.8 28.1 62.4 — 215.3 Deferred income taxes - noncurrent 3.1 — 35.4 — 38.5 Goodwill 182.4 30.0 257.3 — 469.7 Intangible assets, net 56.6 156.7 104.7 — 318.0 Other assets 69.4 9.6 25.1 — 104.1 Total assets $ 2,215.0 $ 782.5 $ 893.5 $ (1,761.1 ) $ 2,129.9 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 11.3 $ — $ 11.3 Current portion of long-term debt 29.9 — 0.1 — 30.0 Accounts payable 85.3 29.2 86.8 — 201.3 Accrued expenses and other 175.1 18.9 78.4 — 272.4 Intercompany payables 360.4 401.0 392.4 (1,153.8 ) — Long-term debt 1,803.2 — 0.5 — 1,803.7 Other long-term liabilities 252.7 0.8 49.3 — 302.8 Total liabilities 2,706.6 449.9 618.8 (1,153.8 ) 2,621.5 Stockholder’s deficiency (491.6 ) 332.6 274.7 (607.3 ) (491.6 ) Total liabilities and stockholder’s deficiency $ 2,215.0 $ 782.5 $ 893.5 $ (1,761.1 ) $ 2,129.9 (a) In January 2015, a newly-formed U.S.-domiciled entity in the Professional segment became an additional guarantor under Products Corporation’s Amended Term Loan Facility, Amended Revolving Credit Facility and the indenture for Products Corporation’s 5¾% Senior Notes. In connection with the CBB Acquisition, in May 2015 the Company’s newly-formed U.S.-domiciled subsidiary, RML, LLC, also became an additional guarantor under such debt instruments. Condensed Consolidating Balance Sheets As of December 31, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 104.2 $ 88.1 $ 83.0 $ — $ 275.3 Trade receivables, less allowances for doubtful accounts 87.8 39.7 111.4 — 238.9 Inventories 75.5 30.6 50.5 — 156.6 Deferred income taxes - current 46.2 — 12.2 — 58.4 Prepaid expenses and other 119.0 6.2 24.8 — 150.0 Intercompany receivables 992.5 630.0 129.6 (1,752.1 ) — Investment in subsidiaries 562.8 (161.4 ) — (401.4 ) — Property, plant and equipment, net 112.4 28.0 71.6 — 212.0 Deferred income taxes - noncurrent 22.6 — 12.2 — 34.8 Goodwill 185.8 30.0 248.3 — 464.1 Intangible assets, net 53.2 164.6 110.0 — 327.8 Other assets 83.2 2.9 27.2 — 113.3 Total assets $ 2,445.2 $ 858.7 $ 880.8 $ (2,153.5 ) $ 2,031.2 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 6.6 $ — $ 6.6 Current portion of long-term debt 31.5 — — — 31.5 Accounts payable 68.3 19.0 66.2 — 153.5 Accrued expenses and other 159.0 24.5 89.8 — 273.3 Intercompany payables 672.9 703.6 375.6 (1,752.1 ) — Long-term debt 1,831.7 — 0.7 — 1,832.4 Other long-term liabilities 238.8 4.4 47.7 — 290.9 Total liabilities 3,002.2 751.5 586.6 (1,752.1 ) 2,588.2 Stockholder’s deficiency (557.0 ) 107.2 294.2 (401.4 ) (557.0 ) Total liabilities and stockholder’s deficiency $ 2,445.2 $ 858.7 $ 880.8 $ (2,153.5 ) $ 2,031.2 Condensed Consolidating Statements of Income and Comprehensive Income Twelve Months Ended December 31, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 1,049.4 $ 340.4 $ 730.7 $ (206.2 ) $ 1,914.3 Cost of sales 466.0 129.4 278.6 (206.2 ) 667.8 Gross profit 583.4 211.0 452.1 — 1,246.5 Selling, general and administrative expenses 495.0 131.2 367.3 — 993.5 Acquisition and integration costs 7.1 — 0.9 — 8.0 Restructuring charges and other, net 6.6 0.4 3.5 — 10.5 Impairment Charge 9.7 — — — 9.7 Operating income 65.0 79.4 80.4 — 224.8 Other expenses (income): Intercompany interest, net (8.2 ) (0.1 ) 8.3 — — Interest expense 82.5 — 0.8 — 83.3 Amortization of debt issuance costs 5.7 — — — 5.7 Foreign currency (gains) losses, net 0.4 (0.6 ) 15.9 — 15.7 Miscellaneous, net (54.2 ) (0.1 ) 54.7 — 0.4 Other expenses (income), net 26.2 (0.8 ) 79.7 — 105.1 Income (loss) from continuing operations before income taxes 38.8 80.2 0.7 — 119.7 Provision for income taxes 16.0 36.2 2.2 — 54.4 (Loss) income from continuing operations 22.8 44.0 (1.5 ) — 65.3 Income (loss) from discontinued operations, net of taxes — — (3.2 ) — (3.2 ) Equity in income of subsidiaries 39.3 43.1 — (82.4 ) — Net income (loss) $ 62.1 $ 87.1 $ (4.7 ) $ (82.4 ) $ 62.1 Other comprehensive (loss) income (2.1 ) (1.5 ) (18.8 ) 20.3 (2.1 ) Total comprehensive (loss) income $ 60.0 $ 85.6 $ (23.5 ) $ (62.1 ) $ 60.0 (a) In January 2015, a newly-formed U.S.-domiciled entity in the Professional segment became an additional guarantor under Products Corporation’s Amended Term Loan Facility, Amended Revolving Credit Facility and the indenture for Products Corporation’s 5¾% Senior Notes. In connection with the CBB Acquisition, in May 2015 the Company’s newly-formed U.S.-domiciled subsidiary, RML, LLC, also became an additional guarantor under such debt instruments. Condensed Consolidating Statements of Income and Comprehensive Income Twelve Months Ended December 31, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 1,001.1 $ 356.8 $ 771.5 $ (188.4 ) $ 1,941.0 Cost of sales 430.5 146.9 279.3 (188.4 ) 668.3 Gross profit 570.6 209.9 492.2 — 1,272.7 Selling, general and administrative expenses 466.6 133.3 399.8 — 999.7 Acquisition and integration costs 6.4 — — — 6.4 Restructuring charges and other, net 2.9 3.3 15.1 — 21.3 Operating income 94.7 73.3 77.3 — 245.3 Other expenses (income): Intercompany interest, net (8.0 ) (0.4 ) 8.4 — — Interest expense 83.6 0.1 0.7 — 84.4 Amortization of debt issuance costs 5.5 — — — 5.5 Loss on extinguishment of debt, net 2.0 — — — 2.0 Foreign currency (gains) losses, net (3.1 ) (0.1 ) 28.2 — 25.0 Miscellaneous, net (48.0 ) (8.2 ) 57.4 — 1.2 Other expenses (income), net 32.0 (8.6 ) 94.7 — 118.1 Income (loss) from continuing operations before income taxes 62.7 81.9 (17.4 ) — 127.2 Provision for income taxes 85.8 (8.4 ) 3.8 — 81.2 (Loss) income from continuing operations (23.1 ) 90.3 (21.2 ) — 46.0 Income (loss) from discontinued operations, net of taxes 0.2 — 1.1 — 1.3 Equity in income of subsidiaries 70.2 1.5 — (71.7 ) — Net income (loss) $ 47.3 $ 91.8 $ (20.1 ) $ (71.7 ) $ 47.3 Other comprehensive (loss) income (93.4 ) 9.3 (15.8 ) 6.5 (93.4 ) Total comprehensive (loss) income $ (46.1 ) $ 101.1 $ (35.9 ) $ (65.2 ) $ (46.1 ) Condensed Consolidating Statements of Income and Comprehensive Income Twelve Months Ended December 31, 2013 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 972.8 $ 90.5 $ 626.6 $ (195.2 ) $ 1,494.7 Cost of sales 438.4 45.6 256.3 (195.2 ) 545.1 Gross profit 534.4 44.9 370.3 — 949.6 Selling, general and administrative expenses 418.1 37.8 267.7 — 723.6 Acquisition and integration costs 24.2 — 1.2 — 25.4 Restructuring charges and other, net — 0.4 3.1 — 3.5 Operating income 92.1 6.7 98.3 — 197.1 Other expenses (income): Intercompany interest, net (0.8 ) (0.6 ) 6.2 — 4.8 Interest expense 72.9 0.3 0.6 — 73.8 Amortization of debt issuance costs 3.5 — — — 3.5 Loss on extinguishment of debt, net 29.7 — — — 29.7 Foreign currency losses (gains), net 3.2 1.3 (0.8 ) — 3.7 Miscellaneous, net (2.4 ) (11.5 ) 14.9 — 1.0 Other expenses (income), net 106.1 (10.5 ) 20.9 — 116.5 (Loss) income from continuing operations before income taxes (14.0 ) 17.2 77.4 — 80.6 Provision for income taxes 39.9 0.3 8.4 — 48.6 (Loss) Income from continuing operations (53.9 ) 16.9 69.0 — 32.0 Income (loss) from discontinued operations, net of taxes 0.3 — (30.7 ) — (30.4 ) Equity in income of subsidiaries 55.2 24.6 — (79.8 ) — Net income (loss) $ 1.6 $ 41.5 $ 38.3 $ (79.8 ) $ 1.6 Other comprehensive income (loss) 58.4 16.7 10.2 (26.9 ) 58.4 Total comprehensive income (loss) $ 60.0 $ 58.2 $ 48.5 $ (106.7 ) $ 60.0 Condensed Consolidating Statements of Cash Flows Twelve Months Ended December 31, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 89.1 $ 7.9 $ 58.3 $ — $ 155.3 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (29.5 ) (5.5 ) (13.3 ) — (48.3 ) Business acquisitions, net of cash and cash required (8.1 ) — (33.6 ) — (41.7 ) Proceeds from the sale of certain assets 3.5 2.7 — — 6.2 Net cash used in investing activities (34.1 ) (2.8 ) (46.9 ) — (83.8 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase in short-term borrowings and overdraft 17.3 — 5.7 — 23.0 Repayments under the Acquisition Term Loan (19.3 ) — — — (19.3 ) Prepayments under the 2011 Term Loan (12.1 ) — — — (12.1 ) Other financing activities (3.6 ) — (0.1 ) — (3.7 ) Net cash (used in) provided by financing activities (17.7 ) — 5.6 — (12.1 ) Effect of exchange rate changes on cash and cash equivalents — (0.2 ) (7.6 ) — (7.8 ) Net increase in cash and cash equivalents 37.3 4.9 9.4 — 51.6 Cash and cash equivalents at beginning of period 104.2 88.1 83.0 — 275.3 Cash and cash equivalents at end of period $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 (a) In January 2015, a newly-formed U.S.-domiciled entity in the Professional segment became an additional guarantor under Products Corporation’s Amended Term Loan Facility, Amended Revolving Credit Facility and the indenture for Products Corporation’s 5¾% Senior Notes. In connection with the CBB Acquisition, in May 2015 the Company’s newly-formed U.S.-domiciled subsidiary, RML, LLC, also became an additional guarantor under such debt instruments. Condensed Consolidating Statements of Cash Flows Twelve Months Ended December 31, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 77.3 $ 78.0 $ 18.7 $ — $ 174.0 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (40.3 ) (2.4 ) (12.8 ) — (55.5 ) Proceeds from the sale of certain assets — — 3.4 — 3.4 Net cash used in investing activities (40.3 ) (2.4 ) (9.4 ) — (52.1 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net (decrease) increase in short-term borrowings and overdraft (4.2 ) (1.9 ) 1.4 — (4.7 ) Repayment of Non-Contributed Loan (58.4 ) — — — (58.4 ) Repayments under the Acquisition Term Loan (7.0 ) — — — (7.0 ) Payment of financing costs (1.8 ) — — — (1.8 ) Other financing activities (2.7 ) — (0.5 ) — (3.2 ) Net cash (used in) provided by financing activities (74.1 ) (1.9 ) 0.9 — (75.1 ) Effect of exchange rate changes on cash and cash equivalents — (0.1 ) (15.5 ) — (15.6 ) Net (decrease) increase in cash and cash equivalents (37.1 ) 73.6 (5.3 ) — 31.2 Cash and cash equivalents at beginning of period (a) 141.3 14.5 88.3 — 244.1 Cash and cash equivalents at end of period $ 104.2 $ 88.1 $ 83.0 $ — $ 275.3 (a) In January 2014, Colomer's U.S. subsidiaries became additional guarantors under Products Corporation's Amended Credit Agreements and 5¾% Senior Notes. Accordingly, for cash flow presentation purposes, the cash and cash equivalents at the beginning of the period associated with Colomer's U.S. subsidiaries have been reported under Guarantor Subsidiaries. Condensed Consolidating Statements of Cash Flows Twelve Months Ended December 31, 2013 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 76.9 $ 4.6 $ 41.8 $ — 123.3 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (21.1 ) (0.6 ) — (6.9 ) — (28.6 ) Business acquisition, net of cash and cash equivalents acquired (627.6 ) — — — (627.6 ) Insurance proceeds for property, plant and equipment — — 13.1 — 13.1 Proceeds from the sale of certain assets 0.3 — 3.4 — 3.7 Net cash (used in) provided by investing activities (648.4 ) (0.6 ) 9.6 — (639.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net (decrease) increase in short-term borrowings and overdraft (2.0 ) (3.2 ) (1.1 ) — (6.3 ) Borrowings under the Acquisition Term Loan 698.3 — — — 698.3 Proceeds from the issuance of the 5¾% Senior Notes 500.0 — — — 500.0 Repayment of the 9¾% Senior Secured Notes (330.0 ) — — — (330.0 ) Repayment under the 2011 Term Loan Facility (113.0 ) — — — (113.0 ) Repayment of the Contributed Loan (48.6 ) — — — (48.6 ) Payment of financing costs (48.8 ) — — — (48.8 ) Other financing activities (2.2 ) — (0.4 ) — (2.6 ) Net cash provided by (used in) financing activities 653.7 (3.2 ) — (1.5 ) — — — 649.0 Effect of exchange rate changes on cash and cash equivalents — — (5.1 ) — (5.1 ) Net increase in cash and cash equivalents 82.2 0.8 — 44.8 — — — 127.8 Cash and cash equivalents at beginning of period 59.1 — 57.2 — 116.3 Cash and cash equivalents at end of period 141.3 0.8 — 102.0 — — — 244.1 |
DESCRIPTION OF BUSINESS AND S37
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revlon Consumer Products Corporation ("Products Corporation" and together with its subsidiaries, the "Company") is the direct wholly-owned operating subsidiary of Revlon, Inc., which is an indirect majority-owned subsidiary of MacAndrews & Forbes Incorporated (together with certain of its affiliates other than the Company and Revlon, Inc., "MacAndrews & Forbes"), a corporation wholly-owned by Ronald O. Perelman. The Company’s vision is to establish Revlon as the quintessential and most innovative beauty company in the world by offering products that make consumers feel attractive and beautiful. The Company wants to inspire its consumers to express themselves boldly and confidently. The Company operates in three reporting segments: the consumer division (“Consumer”); the professional division (“Professional”); and Other. The Company manufactures, markets and sells worldwide an extensive array of beauty and personal care products, including color cosmetics, hair color, hair care and hair treatments, beauty tools, men's grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products. The Company’s principal customers for its products in the Consumer segment include large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, the Internet/e-commerce, television shopping, department stores, one-stop shopping beauty retailers, specialty cosmetics stores and perfumeries in the U.S. and internationally. The Company's principal customers for its products in the Professional segment include hair and nail salons and distributors to professional salons in the U.S. and internationally. The Other segment primarily includes the operating results of the CBBeauty Group and certain of its related entities (collectively "CBB" and such transaction, the "CBB Acquisition"). CBB develops, manufactures, markets and distributes fragrances and other beauty products under a variety of celebrity, lifestyle and fashion brands licensed from third parties, principally through department stores and selective distribution in international territories. The results included within the Other segment are not material to the Company’s consolidated results of operations. The accompanying Consolidated Financial Statements are unaudited. In management's opinion, all adjustments necessary for a fair presentation have been made. The Consolidated Financial Statements include the accounts of the Company after the elimination of all material intercompany balances and transactions. The preparation of the Company's Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Consolidated Financial Statements include, but are not limited to, allowances for doubtful accounts, inventory valuation reserves, expected sales returns and allowances, trade support costs, certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets, income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities, restructuring costs, certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. The Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 26, 2016 (the "2015 Form 10-K"). The Company's results of operations and financial position for interim periods are not necessarily indicative of those to be expected for a full year. Certain prior year amounts in the Consolidated Financial Statements have been reclassified to conform to the current period's presentation. Recently Adopted Accounting Pronouncements In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," which requires deferred income tax assets and liabilities to be classified as noncurrent within a company's balance sheet. Under previous guidance, the Company was required to separate deferred income tax assets and liabilities into current and noncurrent amounts. Netting deferred tax assets and deferred tax liabilities by tax jurisdiction is still required under ASU 2015-17. The Company adopted ASU No. 2015-17 beginning on January 1, 2016 and the Company's previously recorded deferred tax assets were adjusted to reflect the adoption of ASU No. 2015-17. The adoption of ASU No. 2015-17 resulted in no adjustment to the Company’s results of operations and stockholder's deficiency and had the following impact on the previously reported Consolidated Balance Sheets for the fiscal year ended December 31, 2015 and the Consolidated Statements of Cash Flows for the fiscal period ended June 30, 2015: Consolidated Balance Sheets Total as reported at 12/31/2015 Adjustment Total as adjusted at 12/31/2015 Deferred income taxes - current 58.0 (58.0 ) — Deferred income taxes - noncurrent 38.5 11.3 49.8 Other long-term liabilities 117.5 (46.7 ) 70.8 Consolidated Statements of Cash Flows Total as reported at 6/30/2015 Adjustment Total as adjusted at 6/30/2015 Increase in prepaid expense and other current assets (25.2 ) 0.1 (25.1 ) Decrease in accrued expenses and other current liabilities (25.4 ) (0.1 ) (25.5 ) In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments," which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU No. 2015-16 beginning on January 1, 2016 and the adoption of the new guidance did not have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. Consolidated Balance Sheets Total as reported at 12/31/2015 Adjustment Total as adjusted at 12/31/2015 Long-Term Debt 1,803.7 (20.0 ) 1,783.7 Other Assets 104.1 (20.0 ) 84.1 In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," that will explicitly require management to assess an entity's ability to continue as a going concern and to provide related footnote disclosures if conditions give rise to substantial doubt. According to ASU No. 2014-15, substantial doubt exists if it is probable that the entity will be unable to meet its obligations within one year after the issuance date. The likelihood threshold of "probable," similar to its current use in U.S. GAAP for loss contingencies, will be used to define substantial doubt. Disclosures will be required under ASU No. 2014-15 if conditions give rise to substantial doubt, including whether and how management's plans will alleviate the substantial doubt. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption prohibited. The Company adopted ASU No. 2014-15 beginning January 1, 2016 and the adoption of the new guidance did not have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. Recently Issued Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which simplifies certain aspects of accounting for share-based payment transactions including transactions in which an employee uses shares to satisfy the employer’s minimum statutory income tax withholding obligation, forfeitures and income taxes when awards vest or are settled. The guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company expects to adopt ASU No. 2016-09 beginning on January 1, 2017 and is in the process of assessing the impact that the new guidance will have on the Company’s results of operations, financial condition and financial statement disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" which requires lessees to recognize a right-of-use asset and a liability on the balance sheet for all leases, with the exception of short-term leases. The lease liability will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to adjustment such as for initial direct costs. Leases will continue to be classified as either operating or finance leases in the income statement. The guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company expects to adopt ASU No. 2016-02 beginning on January 1, 2019 and is in the process of assessing the impact that the new guidance will have on the Company’s results of operations, financial condition and financial statement disclosures. | 1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revlon Consumer Products Corporation ("Products Corporation" and together with its subsidiaries, the "Company") is the direct wholly-owned operating subsidiary of Revlon, Inc., which is an indirect majority-owned operating subsidiary of MacAndrews & Forbes Incorporated (together with certain of its affiliates other than the Company, "MacAndrews & Forbes"), a corporation wholly-owned by Ronald O. Perelman. The Company’s vision is to establish Revlon as the quintessential and most innovative beauty company in the world by offering products that make consumers feel attractive and beautiful. We want to inspire our consumers to express themselves boldly and confidently. The Company operates in three reporting segments: the consumer division (“Consumer”); the professional division (“Professional”); and Other (as described below). The Company manufactures, markets and sells worldwide an extensive array of beauty and personal care products, including color cosmetics, hair color, hair care and hair treatments, beauty tools, men's grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products. The Company’s principal customers for its products in the Consumer segment include large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, the Internet/e-commerce, television shopping, department stores, one-stop shopping beauty retailers, specialty cosmetics stores and perfumeries in the U.S. and internationally. The Company's principal customers for its products in the Professional segment include hair and nail salons and distributors to professional salons in the U.S. and internationally. Effective in the second quarter of 2015, the Company has a third reporting segment, Other, which includes the operating results of certain brands that our chief operating decision maker reviews on a stand-alone basis. The results included within the Other segment include the operating results and purchase accounting for the Company's April 2015 acquisition of the CBBeauty Group and certain of its related entities (collectively "CBB" and such transaction, the "CBB Acquisition"). CBB develops, manufactures, markets and distributes fragrances and other beauty products under various celebrity, lifestyle and fashion brands licensed from third parties, principally through department stores and selective distribution in international territories. The results included within the Other segment are not material to the Company's consolidated results of operations. Refer to Note 2, "Business Combinations," for further details related to the CBB Acquisition. The accompanying Consolidated Financial Statements include the Company's accounts after the elimination of all material intercompany balances and transactions. Certain prior year amounts have been reclassified to conform to the current year presentation. The preparation of the Company's Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Consolidated Financial Statements include, but are not limited to, allowances for doubtful accounts, inventory valuation reserves, expected sales returns and allowances, trade support costs, certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets, income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities, restructuring costs, certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. Discontinued Operations Presentation As a result of the Company's decision on December 30, 2013 to exit its direct manufacturing, warehousing and sales business operations in mainland China, the Company has reported the results of its former China operations within (loss) income from discontinued operations, net of taxes in the Company's Consolidated Statements of Income and Comprehensive Income (Loss) for all periods presented. See Note 4, "Discontinued Operations," for further discussion. Cash and Cash Equivalents: Cash equivalents are primarily investments in high-quality, short-term money market instruments with original maturities of three months or less and are carried at cost, which approximates fair value. Cash equivalents were $1.6 million and $6.3 million as of December 31, 2015 and 2014 , respectively. Accounts payable includes $19.5 million and $2.2 million of outstanding checks not yet presented for payment at December 31, 2015 and 2014 , respectively. Trade Receivables: Trade receivables represent payments due to the Company for previously recognized net sales, reduced by an allowance for doubtful accounts for balances which are estimated to be uncollectible at December 31, 2015 and 2014 , respectively. The Company grants credit terms in the normal course of business to its customers. Trade credit is extended based upon periodically updated evaluations of each customer's ability to perform its payment obligations. The Company does not normally require collateral or other security to support credit sales. The allowance for doubtful accounts is determined based on historical experience and ongoing evaluations of the Company's receivables and evaluations of the risks of payment. The allowance for doubtful accounts is recorded against trade receivable balances when they are deemed uncollectible. Recoveries of trade receivables previously reserved are recorded in the consolidated statements of income and comprehensive income (loss) when received. At December 31, 2015 and 2014 , the Company's three largest customers accounted for an aggregate of approximately 27% and 31% , respectively, of the Company's outstanding trade receivables. Inventories: Inventories are stated at the lower of cost or market value. Cost is based on standard cost and production variances, which approximates actual cost on the first-in, first-out method. Cost components include direct materials, direct labor and direct overhead, as well as in-bound freight. The Company records adjustments to the value of inventory based upon its forecasted plans to sell products included in inventory, as well as planned product discontinuances. The physical condition (e.g., age and quality) of the inventories is also considered in establishing its valuation. These adjustments are estimates, which could vary significantly, either favorably or unfavorably, from the amounts that the Company may ultimately realize upon the disposition of inventories if future economic conditions, customer inventory levels, product discontinuances, sales return levels or competitive conditions differ from the Company's estimates and expectations. Property, Plant and Equipment and Other Assets: Property, plant and equipment is recorded at cost and is depreciated on a straight-line basis over the estimated useful lives of such assets as follows: land improvements, 20 to 30 years; buildings and improvements, 5 to 50 years; machinery and equipment, 3 to 15 years; office furniture and fixtures, 3 to 15 years; and capitalized software, 2 to 10 years. Leasehold improvements and building improvements are amortized over their estimated useful lives or the terms of the leases or remaining life of the original structure, respectively, whichever is shorter. Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements are capitalized. See Note 7, “Property, Plant and Equipment" for further discussion. Included in other assets are permanent wall displays amounting to $65.6 million and $63.3 million as of December 31, 2015 and 2014 , respectively, which are amortized generally over a period of 1 to 3 years. In the event of product discontinuances, from time to time the Company may accelerate the amortization of related permanent wall displays based on the estimated remaining useful life of the asset. Amortization expense for permanent wall displays was $41.3 million , $42.5 million and $39.2 million for 2015 , 2014 and 2013 , respectively. The Company has also included, in other assets, net deferred financing costs related to the issuance of the Company’s debt instruments amounting to $21.3 million and $26.9 million as of December 31, 2015 and 2014 , respectively, which are amortized over the terms of the related debt instruments using the effective-interest method. Long-lived assets, including property, plant and equipment and finite-lived intangibles, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, the Company estimates the undiscounted future cash flows (excluding interest) resulting from the use of the asset and its ultimate disposition. If the sum of the undiscounted cash flows (excluding interest) is less than the carrying value, the Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the fair value of the asset. In connection with integrating Colomer into the Company's business, the Company determined it would implement a company-wide, SAP enterprise resource planning system. As a result, the Company recognized a $5.9 million impairment charge related to in-progress capitalized software development costs during the year ended December 31, 2013 which was included as a component of acquisition and integration costs for 2013 in the Company's Consolidated Statements of Income and Comprehensive Income (Loss). There were no significant impairment to long-lived assets during the years ended December 31, 2015 and 2014 . Goodwill: Goodwill represents the excess purchase price for businesses acquired over the fair value of net assets acquired. Goodwill is not amortized, but rather is reviewed annually for impairment at the reporting unit level using September 30th carrying values, or when there is evidence that events or changes in circumstances indicate that the Company’s carrying amount may not be recovered. For 2015, in assessing whether goodwill was impaired in connection with its annual impairment test performed as of September 30th, the Company utilized the two-step process as prescribed by Accounting Standards Codification ("ASC") 350, Intangibles - Goodwill and Other . In the first step of this test, the Company compared the fair value of each of the Company's four reporting units, determined based upon discounted estimated future cash flows, to the carrying amount of such reporting unit, including goodwill. Where the fair value of such reporting unit exceeded the carrying amount, no further work was required and no impairment loss was recognized. Where the carrying amount of the reporting unit exceeded the fair value, the goodwill of the reporting unit was considered potentially impaired and the Company performed step two of the goodwill impairment test to measure the amount of the impairment loss. As a result of the annual impairment test, the Company recognized a $9.7 million non-cash goodwill impairment charge in the fourth quarter of 2015. For 2014 and 2013, the Company performed qualitative assessments to determine whether it would be necessary to perform the two-step goodwill impairment test and to assess the Company's indefinite-lived intangible assets for indicators of impairment, and in each case determined that it is more likely than not that the fair value of each of the Company's reporting units and indefinite-lived intangible assets exceeded their carrying amounts for such reporting years. The Company did not record any impairment of goodwill during the years ended December 31, 2014 or 2013 as a result of its annual impairment test. See Note 2, “Business Combinations” and Note 8, “Goodwill and Intangible Assets, Net” for further discussion of the Company's goodwill and annual impairment test. Intangible Assets, net: Intangible Assets, net, include trade names and trademarks, customer relationships, patents and internally developed intellectual property ("IP") and acquired licenses. Indefinite-lived intangible assets, consisting of certain trade names, are not amortized, but rather are tested for impairment annually on September 30th, similar to goodwill, and the Company recognizes an impairment if the carrying amount of its intangible assets exceeds its fair value. Intangible assets with finite useful lives are amortized over their respective estimated useful lives to their estimated residual values. The Company writes off the gross carrying amount and accumulated amortization for intangible assets in the year in which the asset becomes fully amortized. Finite-lived intangible assets are considered for impairment upon the occurrence of certain “triggering events” and the Company recognizes an impairment if the carrying amount of the asset group intangible asset exceeds the Company's estimate of its undiscounted future cash flows. There was no impairment of intangible assets in 2015, 2014 or 2013. See Note 2, “Business Combinations” and Note 8, “Goodwill and Intangible Assets, Net” for further discussion of the Company's intangible assets, including a summary of finite-lived and indefinite-lived intangible assets. Revenue Recognition and Sales Returns: The Company's policy is to recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection is probable. The Company records revenue from the sale of its products when risk of loss and title to the product transfers to the customer. Net sales are comprised of gross revenues less expected product returns, trade discounts and customer allowances, which include costs associated with off-invoice mark-downs and other price reductions, as well as trade promotions and coupons. These incentive costs are recognized at the later of the date on which the Company recognizes the related revenue or the date on which the Company offers the incentive. The Company allows customers to return their unsold products if and when they meet certain Company-established criteria as set forth in the Company's trade terms. The Company regularly reviews and revises, when deemed necessary, its estimates of sales returns based primarily upon the historical rate of actual product returns, planned product discontinuances, new product launches and estimates of customer inventory and promotional sales. The Company records sales returns as a reduction to sales and cost of sales, and an increase to accrued liabilities and inventories. Returned products, which are recorded as inventories, are valued based upon the amount that the Company expects to realize upon their subsequent disposition. The physical condition and marketability of the returned products are the major factors considered by the Company in estimating their realizable value. Revenues derived from licensing arrangements, including any pre-payments, are recognized in the period in which they are earned, but not before the initial license term commences. Cost of Sales: Cost of sales includes all of the costs to manufacture the Company's products. For products manufactured in the Company's own facilities, such costs include raw materials and supplies, direct labor and factory overhead. For products manufactured for the Company by third-party contractors, such cost represents the amounts invoiced by the contractors. Cost of sales also includes the cost of refurbishing products returned by customers that will be offered for resale and the cost of inventory write-downs associated with adjustments of held inventories to their net realizable value. These costs are reflected in the Company’s consolidated statements of income (loss) and comprehensive income (loss) when the product is sold and net sales revenues are recognized or, in the case of inventory write-downs, when circumstances indicate that the carrying value of inventories is in excess of their recoverable value. Additionally, cost of sales reflects the costs associated with any free products included as sales and promotional incentives. These incentive costs are recognized on the later of the date that the Company recognizes the related revenue or the date on which the Company offers the incentive. Selling, General and Administrative Expenses: Selling, general and administrative (“SG&A”) expenses include expenses to advertise the Company's products, such as television advertising production costs and air-time costs, print advertising costs, digital marketing costs, promotional displays and consumer promotions. SG&A expenses also include the amortization of permanent wall displays and finite-lived intangible assets, depreciation of certain fixed assets, distribution costs (such as freight and handling), non-manufacturing overhead (principally personnel and related expenses), selling and trade educations fees, insurance and professional service fees. Advertising: Advertising within SG&A expenses includes television, print, digital marketing and other advertising production costs which are expensed the first time the advertising takes place. The costs of promotional displays are expensed in the period in which they are shipped to customers. Advertising expenses were $375.1 million , $383.2 million and $278.5 million for 2015 , 2014 and 2013 , respectively, and were included in SG&A expenses in the Company's Consolidated Statements of Income and Comprehensive Income (Loss). The Company also has various arrangements with customers pursuant to its trade terms to reimburse them for a portion of their advertising costs, which provide advertising benefits to the Company. Additionally, from time to time the Company may pay fees to customers in order to expand or maintain shelf space for its products. The costs that the Company incurs for "cooperative" advertising programs, end cap placement, shelf placement costs, slotting fees and marketing development funds, if any, are expensed as incurred and are recorded as a reduction within net sales. Distribution Costs: Costs associated with product distribution, such as freight and handling costs, are recorded within SG&A expenses when incurred. Distribution costs were $80.2 million , $84.9 million and $66.5 million for 2015 , 2014 and 2013 , respectively. Income Taxes: Income taxes are calculated using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, as well as for operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes the effect of a change in income tax rates on deferred tax assets and liabilities in income in the period that includes the enactment date. The Company records valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company recognizes a tax position in its financial statements when it is more likely than not that the position will be sustained upon examination, based on the merits of such position. The Company recognizes liabilities for unrecognized tax positions in the U.S. and other tax jurisdictions based on an estimate of whether and the extent to which additional taxes will be due. If payment of these amounts is ultimately not required, the reversal of the liabilities would result in additional tax benefits recognized in the period in which the Company determines that the liabilities are no longer required. If the estimate of tax liabilities is ultimately less than the final assessment, this will result in a further charge to expense. The Company recognizes interest and penalties related to income tax matters in income tax expense. Research and Development: Research and development expenditures are expensed as incurred and included within SG&A expenses. The amounts charged in 2015 , 2014 and 2013 for research and development expenditures were $31.2 million , $31.6 million and $26.9 million , respectively. Foreign Currency Translation: Assets and liabilities of foreign operations, whose functional currency is the local currency, are translated into U.S. Dollars at the rates of exchange in effect at the balance sheet date. Income and expense items are translated at the weighted average exchange rates prevailing during each period presented. Gains and losses resulting from foreign currency transactions are included in the results of operations. Gains and losses resulting from translation of financial statements of foreign subsidiaries and branches operating in non-hyperinflationary economies are recorded as a component of accumulated other comprehensive loss until either the sale or upon the complete or substantially complete liquidation by the Company of its investment in a foreign entity. To the extent that foreign subsidiaries and branches operate in hyperinflationary economies, non-monetary assets and liabilities are translated at historical rates and translation adjustments are included in the Company's results of operations. Venezuela - Highly-Inflationary Economy : Effective January 1, 2010, Venezuela was designated as a highly inflationary economy under U.S. GAAP. As a result, beginning January 1, 2010, the U.S. Dollar is the functional currency for the Company’s subsidiary in Venezuela (“Revlon Venezuela”). As Venezuela is designated as highly inflationary, foreign currency translation adjustments of Revlon Venezuela’s balance sheet have been reflected in the Company's earnings. Venezuela - Foreign Currency Restrictions : Foreign currency restrictions enacted by the Venezuelan government since 2003 have become more restrictive and have had an impact on Revlon Venezuela’s ability to obtain U.S. Dollars in exchange for Venezuelan Bolivars ("Bolivars") at the official foreign exchange rates from the Venezuelan government and its foreign exchange commission, the Comisión de Administracion de Divisas (“CADIVI”). In May 2010, the Venezuelan government took control over the previously freely-traded foreign currency exchange market and, in June 2010, replaced it with a new foreign currency exchange system, the Sistema de Transacciones en Moneda Extranjera (“SITME”). In the second quarter of 2011, the Company began using a SITME rate of 5.5 Bolivars per U.S. Dollar (the "SITME Rate") to translate Revlon Venezuela’s financial statements, as this was the rate at which the Company accessed U.S. Dollars in the SITME market during this period. Through December 31, 2012, the Company continued using the SITME Rate to translate Revlon Venezuela’s financial statements. Venezuela - 2013 Foreign Currency Devaluation : In February 2013, the Venezuelan government announced the devaluation of Bolivars relative to the U.S. Dollar, changing the official exchange rate to 6.3 Bolivars per U.S. Dollar (the "Official Rate"). The Venezuelan government also announced that the SITME currency market administered by the central bank would be eliminated, and as a result, the Company began using the Official Rate to translate Revlon Venezuela’s financial statements beginning in 2013 . To reflect the impact of the foreign currency devaluation, the Company recorded a foreign currency loss of $0.6 million in earnings in the first quarter of 2013 as a result of the required re-measurement of Revlon Venezuela’s monetary assets and liabilities. Venezuela - 2014 Foreign Currency Devaluation : In January 2014, the Venezuela government announced that the CADIVI would be replaced by the government-operated National Center of Foreign Commerce (the "CENCOEX"), and indicated that the Sistema Complementario de Administración de Divisas (“SICAD”) market would continue to be offered as an alternative foreign currency exchange. Additionally, a parallel foreign currency exchange system, SICAD II, started functioning in March 2014 and allowed companies to apply for the purchase of foreign currency and foreign currency denominated securities for any legal use or purpose. Throughout 2014, the Company exchanged Bolivars for U.S. Dollars to the extent permitted through the various foreign currency markets available based on its ability to participate in those markets. Prior to June 30, 2014, the Company utilized the Official Rate. Following a consideration of the Company's specific facts and circumstances, which included its legal ability and intent to participate in the SICAD II exchange market to import finished goods into Venezuela, the Company determined that it was appropriate to utilize the SICAD II rate of 53 Bolivars per U.S. Dollar (the "SICAD II Rate") to translate Revlon Venezuela’s financial statements beginning on June 30, 2014. As a result, the Company recorded a foreign currency loss of $6.0 million in the second quarter of 2014 related to the required re-measurement of Revlon Venezuela’s monetary assets and liabilities. Venezuela - 2015 Foreign Currency Devaluation : In February 2015, the Venezuela government introduced a new foreign currency exchange platform, the Marginal Currency System ("SIMADI"), which created a third new mechanism to exchange Bolivars for U.S. Dollars through private brokers. SIMADI replaced the SICAD II system and started operating on February 12, 2015. As a result, the Company considered its specific facts and circumstances in order to determine the appropriate rate of exchange to translate Revlon Venezuela’s financial statements. Through December 31, 2015, the Company has not participated in the SIMADI exchange market; however, given the elimination of the SICAD II system, the Company determined that it was appropriate to use the SIMADI rate of 193 Bolivars per U.S. Dollar (the "SIMADI Rate") to translate Revlon Venezuela’s balance sheet beginning on March 31, 2015. As a result of the change from the SICAD II Rate to the SIMADI Rate, on March 31, 2015 the Company was required to re-measure all of Revlon Venezuela’s monetary assets and liabilities at the SIMADI Rate. The Company recorded a foreign currency loss of $1.9 million in the first quarter of 2015 as a result of the required re-measurement of Revlon Venezuela’s balance sheet. During the second quarter of 2015, the Company exited its business operations in Venezuela and changed to a distributor model. Classes of Stock: Products Corporation designated 1,000 shares of preferred stock as the "RCPC Preferred Stock", of which 546 shares were outstanding as of December 31, 2015 and all of which are held by Revlon, Inc. The holder of the RCPC Preferred Stock is not entitled to receive any dividends. The RCPC Preferred Stock is entitled to a liquidation preference of $100,000 per share before any distribution is made to the holder of Products Corporation's common stock. The holder of the RCPC Preferred Stock does not have any voting rights, except as required by law. The RCPC Preferred Stock may be redeemed at any time by Products Corporation, as its option, for $100,000 per share. However, the terms of Products Corporation's various debt agreements currently restrict Products Corporation's ability to effect such redemption. Stock-Based Compensation: The Company recognizes stock-based compensation costs for its restricted stock, measured at the fair value of each award at the time of grant, as an expense over the period during which an employee is required to provide service. Upon the vesting of restricted stock, any resulting tax benefits are recognized in additional paid-in-capital. Any resulting tax deficiencies are recognized in the consolidated statements of income and comprehensive income (loss) as tax expense to the extent that the tax deficiency amount exceeds any existing additional paid-in-capital resulting from previously realized excess tax benefits from previous awards. The Company reflects such excess tax benefits as cash flows from financing activities in the consolidated statements of cash flows. Derivative Financial Instruments: The Company is exposed to certain risks relating to its ongoing business operations. The Company uses derivative financial instruments, including: (i) foreign currency forward exchange contracts (“FX Contracts”) intended for the purpose of managing foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on the Company’s net cash flows; and (ii) interest rate hedging transactions intended for the purpose of managing interest rate risk associated with Products Corporation’s variable rate indebtedness. Foreign Currency Forward Exchange Contracts Products Corporation enters into FX Contracts primarily to hedge the anticipated net cash flows resulting from inventory purchases and intercompany payments denominated in currencies other than the local currencies of the Company’s foreign and domestic operations and generally have maturities of less than one year. The Company does not apply hedge accounting to its FX Contracts. The Company records FX Contracts in its consolidated balance sheet at fair value and immediately recognizes changes in fair value in earnings. Fair value of the Company’s FX Contracts is determined by using observable market transactions of spot and forward rates. See Note 13, “Financial Instruments” for further discussion of the Company's FX Contracts. Interest Rate Swap In November 2013, Products Corporation executed the 2013 Interest Rate Swap (as hereinafter defined), which has been designated as a cash flow hedge of the variability of the forecasted three-month LIBOR interest rate payments related to its Acquisition Term Loan (as hereinafter defined). The Company records changes in the fair value of cash flow hedges that are designated as effective instruments as a component of accumulated other comprehensive loss. The Company immediately recognizes any ineffectiveness in such cash flow hedges in earnings. The Company recognizes gains and losses deferred in accumulated other comprehensive loss in current-period earnings when earnings are affected by the variability of cash flows of the hedged forecasted transaction. See Note 13, “Financial Instruments” for further discussion of the Company's 2013 Interest Rate Swap. Recently Adopted Accounting Pronouncements In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which changes the requirements for reporting discontinued operations under Accounting Standards Codification Topic 205. Under ASU No. 2014-08, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The standard states that a strategic shift could include a disposal of: (i) a major geographical area of operations; (ii) a major line of business; (iii) a major equity method investment; or (iv) other major parts of an entity. ASU No. 2014-08 no longer precludes presentation as a discontinued operation if: (i) there are operations and cash flows of the component that have not been eliminated from the reporting entity’s ongoing operations; or (ii) there is significant continuing involvement with a component after its disposal. Additional disclosures about discontinued operations are al |
BUSINESS COMBINATIONS - Q2
BUSINESS COMBINATIONS - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Business Combinations [Abstract] | ||
BUSINESS COMBINATIONS | 2. BUSINESS COMBINATIONS The Cutex International Acquisition On May 31, 2016 (the "Cutex International Acquisition Date"), the Company completed the acquisition of certain international Cutex businesses ("Cutex International") from Coty Inc. (the "Cutex International Acquisition"), which primarily operate in Australia and the U.K., and related assets for total cash consideration of $29.1 million . Following the Company's October 2015 acquisition of the Cutex business and related assets in the U.S. from Cutex Brands, LLC, the Cutex International Acquisition completed the Company's global consolidation of the Cutex brand and enhances and complements the Company's existing brand portfolio of nail care products. Cutex International's results of operations are included in the Company’s Consolidated Financial Statements commencing on the Cutex International Acquisition Date. Pro forma results of operations have not been presented, as the impact of the Cutex International Acquisition on the Company’s consolidated financial results is not material. The Company accounted for the Cutex International Acquisition as a business combination in the second quarter of 2016. The table below summarizes the allocation of the total consideration of $29.1 million paid on the Cutex International Acquisition Date: Fair Value at May 31, 2016 Inventory $ 0.8 Purchased Intangible Assets (a) 19.7 Goodwill 8.6 Total consideration transferred $ 29.1 (a) Purchased intangible assets include customer networks fair valued at $14.0 million , intellectual property fair valued at $0.9 million , which are amortized over useful lives of 15 and 10 years, respectively, and indefinite lived trade names fair valued at $4.8 million . The Company reacquired the Cutex trade name, which had previously provided Coty with an exclusive right to manufacture, market and sell Cutex branded products for an initial term and perpetual automatic 20 -year renewals. Based on the terms and conditions of the existing license agreements and other factors, the Cutex trade name was assigned an indefinite-life and, therefore, will not be amortized. The fair values of the net assets acquired in the Cutex International Acquisition were based on management’s preliminary estimate of the respective fair values. The estimated fair values of net assets and resulting goodwill are subject to the Company finalizing its analysis of the fair value of Cutex International's assets as of the Cutex International Acquisition Date and may be adjusted upon completion of such analysis. In addition, information unknown at the time of the Cutex International Acquisition Date could result in adjustments to the respective fair values and resulting goodwill within the year following the Cutex International Acquisition Date. In determining the estimated fair values of net assets acquired and resulting goodwill related to the Cutex International Acquisition, the Company considered, among other factors, the analysis of Cutex International's historical financial performance and an estimate of the future performance of the acquired business, as well as market participants' intended use of the acquired assets. Factors contributing to the purchase price resulting in the recognition of goodwill include the anticipated benefits the Company expects to achieve through the expansion of its nail product portfolio. Both the intangible assets acquired and goodwill are not deductible for income tax purposes. | 2. BUSINESS COMBINATIONS The CBBeauty Group Acquisition On April 21, 2015 (the "CBB Acquisition Date"), the Company completed the CBB Acquisition for a total cash consideration of $48.6 million . CBB develops, manufactures, markets and distributes fragrances and other beauty products under various celebrity, lifestyle and fashion brands licensed from third parties, principally through department stores and selective distribution in international territories. On the CBB Acquisition Date, the Company used cash on hand to pay approximately 70% of the total cash consideration, or $34.6 million . The remaining $14.0 million of the total cash consideration is payable in equal annual installments over 4 years from the CBB Acquisition Date, subject to the selling shareholders' compliance with certain service conditions. These remaining installments are recorded as a component of SG&A expenses ratably over the 4-year installment The Company accounted for the CBB Acquisition as a business combination during the second quarter of 2015. The table below summarizes the allocation of the total consideration of $34.6 million paid on the CBB Acquisition Date, as well as adjustments for changes in working capital during the third quarter of 2015, with resulting goodwill, as follows: Amounts recognized at April 21, 2015 (Provisional) (a) Measurement Period Adjustments Amounts recognized at April 21, 2015 (Adjusted) Total Tangible Net Assets Acquired (b) $ 3.9 $ (1.6 ) $ 2.3 Purchased Intangible Assets (c) 11.9 0.2 12.1 Goodwill 18.8 0.7 19.5 Total consideration transferred $ 34.6 $ (0.7 ) $ 33.9 (a) As previously reported in Revlon, Inc.'s second quarter 2015 Form 10-Q. (b) Total net assets acquired in the CBB Acquisition are comprised primarily of inventory, trade receivables and accounts payable. (c) Purchased intangible assets include customer networks valued at $7.0 million , distribution rights valued at $3.5 million and trade names valued at $1.6 million , with weighted average remaining useful lives of 14 , 5 and 8 years, respectively. In determining the estimated fair values of net assets acquired and resulting goodwill related to the CBB Acquisition, the Company considered, among other factors, the analysis of CBB's historical financial performance and an estimate of the future performance of the acquired business, as well as market participants' intended use of the acquired assets. Both the intangible assets acquired and goodwill are not deductible for income tax purposes. Other Acquisitions Completed in 2015 The Company also completed the following acquisitions during 2015: Purchase Consideration Total Net Assets Acquired Purchased Intangible Assets Goodwill American Crew and Revlon Professional Distribution Rights - Australia (1) $ 4.4 $ 1.4 $ 2.9 $ — Cutex U.S. (2) 8.1 1.0 5.2 1.9 Total $ 12.5 $ 2.4 $ 8.1 $ 1.9 (1) In March 2015, the Company re-acquired rights to distribute its American Crew and Revlon Professional brands in Australia. The Company acquired customer relationships valued at $2.9 million , with weighted average remaining useful lives of 10 years . (2) In October 2015, the Company acquired the U.S. Cutex business and related assets from Cutex Brands, LLC (the "Cutex Acquisition"). The Company acquired inventory at fair value of approximately $1.0 million , trade names valued at $3.6 million and customer relationships valued at $1.6 million , with weighted average remaining useful lives of 10 years . The results of operations of these acquisitions are included in the Company's statement of income (loss) commencing on each respective acquisition date. The American Crew and Revlon Professional distribution rights acquisition is included within the Company's Professional segment and the Cutex U.S. acquisition is included within the Company's Consumer segment. The results of operations of these acquisitions did not have a material impact on the Company's results of operations for 2015. The Colomer Acquisition On October 9, 2013 (the "Colomer Acquisition Date"), Products Corporation completed its acquisition of The Colomer Group Participations, S.L. ("Colomer" and the "Colomer Acquisition"), a Spanish company now known as Beautyge Participations, S.L., which primarily manufactures, markets and sells professional products to hair and nail salons and distributors to professional salons under brands such as Revlon Professional , CND , including CND Shellac , and American Crew , as well as retail and multi-cultural product lines, including under the Creme of Nature brand. The cash purchase price for the Colomer Acquisition was $664.5 million , which Products Corporation financed with proceeds from the Acquisition Term Loan under the Amended Term Loan Facility (both as hereinafter defined). The Colomer Acquisition provides the Company with broad brand, geographic and retailer diversification and substantially expands the Company's business, providing both distribution into new retailers and cost synergy opportunities. The results of operations of the Colomer business have been included, in the Company’s Consolidated Financial Statements, commencing on the Colomer Acquisition Date. For 2015, 2014 and 2013, respectively, the Company incurred acquisition and integration costs related to the Colomer Acquisition, summarized as follows: Year Ended December 31, 2015 2014 2013 Acquisition costs $ — $ 0.5 $ 12.9 Integration costs 2.1 5.9 12.5 Total acquisition and integration costs $ 2.1 $ 6.4 $ 25.4 There were no acquisition costs in 2015 related to the Colomer Acquisition. Acquisition costs in 2014 and 2013 primarily included legal fees related to the Colomer Acquisition. Integration costs consist of non-restructuring costs related to integrating Colomer's operations into the Company's business. Integration costs incurred during 2015 primarily included legal and professional fees. Integration costs incurred during 2014 primarily included employee-related costs related to management changes and audit-related fees. For 2013, integration costs primarily related to an impairment of in-progress capitalized software development costs, as well as employee-related costs due to management changes. Purchase Price Allocation The Company accounted for the Colomer Acquisition as a business combination during the fourth quarter of 2013. The table below summarizes the amounts recognized for assets acquired and liabilities assumed as of the Colomer Acquisition Date, as well as adjustments made in 2014 after the Colomer Acquisition Date to the amounts initially recorded in 2013 (the "Measurement Period Adjustments"). Accordingly, the Company retrospectively adjusted its consolidated balance sheet as of December 31, 2013 to reflect these Measurement Period Adjustments. The Measurement Period Adjustments did not have a material impact on the Company's Consolidated Statements of Income and Comprehensive Income (Loss) for 2014. The Company recorded the total consideration of $664.5 million based on the respective estimated fair values of the net assets acquired on the Colomer Acquisition Date with resulting goodwill, as follows: Amounts Previously Recognized as of October 9, 2013 (Provisional) (a) Measurement Period Adjustments Amounts Recognized as of Colomer Acquisition Date (Adjusted) Cash and cash equivalents $ 36.9 $ — $ 36.9 Trade receivables 83.9 — 83.9 Inventories 75.1 — 75.1 Prepaid expenses and other 31.3 — 31.3 Property, plant and equipment 96.7 — 96.7 Intangible assets (b) 292.7 5.4 298.1 Goodwill (b)(c) 255.7 (2.4 ) 253.3 Deferred tax asset - noncurrent 53.1 — 53.1 Other assets (c) 1.9 3.9 5.8 Total assets acquired 927.3 6.9 934.2 Accounts payable 48.0 — 48.0 Accrued expenses and other 65.6 — 65.6 Long-term debt 0.9 — 0.9 Long-term pension and other benefit plan liabilities 4.5 — 4.5 Deferred tax liability (b) 123.3 2.1 125.4 Other long-term liabilities (c) 20.5 4.8 25.3 Total liabilities assumed 262.8 6.9 269.7 Total consideration $ 664.5 $ — $ 664.5 (a) As previously reported in Revlon, Inc.'s 2013 and 2014 Annual Reports on Form 10-K. (b) The Measurement Period Adjustments to intangible assets, deferred tax liability and goodwill in the first quarter of 2014 related to a change in assumptions used to calculate the fair value of an acquired customer relationship intangible asset, which increased the intangible asset by $5.4 million and extended the life of the asset from 10 to 20 years, increased deferred tax liabilities by $2.1 million and resulted in a net decrease to goodwill of $3.3 million . (c) The Company recorded a $3.9 million income tax adjustment to the beginning tax balance within other assets and a $4.8 million adjustment to other long-term liabilities, resulting in a net increase to goodwill of $0.9 million . In determining the fair values of net assets acquired in the Colomer Acquisition and resulting goodwill, the Company considered, among other factors, an analysis of Colomer's historical financial performance and an estimate of the future performance of the acquired business, as well as market participants' intended use of the acquired assets. The intangible assets acquired in the Colomer Acquisition, based on the fair values of the identifiable intangible assets, were as follows: Fair Values at October 9, 2013 Weighted Average Useful Life (in years) Trade names, indefinite-lived $ 108.6 Indefinite Trade names, finite-lived 109.4 5 - 20 Customer relationships 62.4 15 - 20 License agreement 4.1 10 Internally-developed IP 13.6 10 Total acquired intangible assets $ 298.1 Unaudited Pro Forma Results The unaudited pro forma results include the historical consolidated statements of operations of the Company and Colomer, giving effect to the Colomer Acquisition and related financing transactions as if they had occurred on January 1, 2013. The Company's pro forma consolidated net sales and income from continuing operations, before income taxes for 2013, are presented in the following table: Unaudited Pro Forma Results Year Ended December 31, 2013 Net sales $ 1,908.9 Income from continuing operations, before income taxes 135.2 The pro forma results, prepared in accordance with U.S. GAAP, include the following pro forma adjustments related to the Colomer Acquisition: (i) as a result of an $11.1 million fair value adjustment to acquired inventory at the Colomer Acquisition Date, the Company recognized $8.5 million of the increase in cost of sales in its historical 2013 consolidated financial statements. The pro forma adjustments included an adjustment to reverse the $8.5 million recognized in 2013 cost of sales and recognize the full $11.1 million in 2012 cost of sales; (ii) the pro forma increase in depreciation and amortization expense based on the $14.3 million of fair value adjustments to property, plant and equipment and acquired finite-lived intangible assets recorded in connection with the Colomer Acquisition in 2013; (iii) the elimination of $9.0 million of goodwill impairment charges recognized by Colomer in 2013; (iv) the elimination of $25.8 million of acquisition and integration costs recognized by the Company and Colomer in 2013; (v) the elimination of $3.6 million of Colomer's debt facility fees recognized in 2013, as the debt facility was closed on the Colomer Acquisition Date; and (vi) the $19.4 million pro forma increase in interest expense and amortization of debt issuance costs in 2013, resulting from the issuance of the Acquisition Term Loan used by Products Corporation to finance the Colomer Acquisition. The unaudited pro forma results do not include: (1) any revenue or cost reductions that may be achieved through the business combination; or (2) the impact of non-recurring items directly related to the business combination. The unaudited pro forma results are not necessarily indicative of the operating results that would have occurred if the Colomer Acquisition had been completed as of the date for which the pro forma financial information is presented. In addition, the unaudited pro forma results do not purport to project the future consolidated operating results of the combined company. |
RESTRUCTURING CHARGES - Q2
RESTRUCTURING CHARGES - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Restructuring Charges [Abstract] | ||
RESTRUCTURING CHARGES | 3. RESTRUCTURING CHARGES 2015 Efficiency Program In September 2015, the Company initiated certain restructuring actions to drive certain organizational efficiencies across the Company's Consumer and Professional segments (the "2015 Efficiency Program"). These actions, which commenced during 2015 and are planned to occur through 2017, are expected to reduce general and administrative expenses within the Consumer and Professional segments. Of the $1.2 million of restructuring and related charges recognized in the first six months of 2016 for the 2015 Efficiency Program, $0.5 million related to the Consumer segment and $0.6 million related to the Professional segment, with the remaining charges included within unallocated corporate expenses. The Company expects to recognize total restructuring and related charges for the 2015 Efficiency Program of $11.7 million by the end of 2017, of which $6.9 million is expected to relate to the Consumer segment, $4.4 million is expected to relate to the Professional segment and the remaining charge relates to unallocated corporate expenses. A summary of the restructuring and related charges incurred through June 30, 2016 in connection with the 2015 Efficiency Program is presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Charges incurred through December 31, 2015 $ 9.4 $ 0.1 $ 9.5 Charges incurred in the six months ended June 30, 2016 $ 0.6 $ 0.6 $ 1.2 Cumulative charges incurred through June 30, 2016 $ 10.0 $ 0.7 $ 10.7 Total expected charges $ 10.0 $ 1.7 $ 11.7 Of the cumulative $10.7 million of restructuring and related charges recognized through the second quarter of 2016 related to the 2015 Efficiency Program, $6.5 million related to the Consumer segment, $3.8 million related to the Professional segment and the remaining charges related to unallocated corporate expenses. The Company expects that cash payments will total approximately $12 million in connection with the 2015 Efficiency Program, including $0.2 million for capital expenditures (which capital expenditures are excluded from total restructuring and related charges expected to be recognized for the 2015 Efficiency Program), of which $1.6 million was paid in the six months ended June 30, 2016 and $2.8 million was paid in 2015. A total of $6.2 million is expected to be paid during the remainder of 2016, with the remaining balance expected to be paid in 2017. Restructuring Reserve The related liability balance and activity for each of the Company's restructuring programs are presented in the following table: Utilized, Net Balance Beginning of Year (Income) Expense, Net Foreign Currency Translation Cash Non-cash Balance End of Period 2015 Efficiency Program: Employee severance and other personnel benefits $ 6.6 $ 0.6 $ — $ (1.2 ) $ — $ 6.0 Other 0.1 0.6 — (0.4 ) (0.1 ) 0.2 Integration Program: (a) Employee severance and other personnel benefits 0.8 — — (0.8 ) — — Other 0.1 — — — — 0.1 December 2013 Program: (b) Employee severance and other personnel benefits 1.2 — — — — 1.2 Other — — — — — — Other immaterial actions: Employee severance and other personnel benefits 2.3 0.3 — (1.0 ) — 1.6 Other 0.7 0.3 — (0.3 ) — 0.7 Total restructuring reserve $ 11.8 $ 1.8 $ — $ (3.7 ) $ (0.1 ) $ 9.8 ( a) Following Products Corporation's October 2013 acquisition of The Colomer Group Participations, S.L. ("Colomer" and the "Colomer Acquisition"), the Company implemented actions to integrate Colomer's operations into the Company's business which reduced costs across the Company's businesses and generated synergies and operating efficiencies within the Company's global supply chain and consolidated offices and back office support (all such actions, together, the "Integration Program"). The Integration Program was substantially completed as of December 31, 2015. (b) In December 2013, the Company announced restructuring actions that primarily included exiting its direct manufacturing, warehousing and sales business operations in mainland China (the "December 2013 Program"). The December 2013 Program resulted in the elimination of approximately 1,100 positions in 2014, primarily in China. At June 30, 2016 , $9.8 million of the restructuring reserve balance was included within accrued expenses and other in the Company's Consolidated Balance Sheet. At December 31, 2015, $11.8 million of the restructuring reserve balance was included within accrued expenses in the Company's Consolidated Balance Sheet. | 3. RESTRUCTURING CHARGES 2015 Efficiency Program In September 2015, the Company initiated certain restructuring actions to drive certain organizational efficiencies across the Company's Consumer and Professional segments (the "2015 Efficiency Program"). These actions, which occurred during 2015 and are planned to occur through 2017, are expected to reduce general and administrative expenses within the Consumer and Professional segments. Of the $9.5 million of restructuring and related charges recognized in 2015 for the 2015 Efficiency Program, $6.0 million related to the Consumer segment and $3.2 million related to the Professional segment, with the remaining charges included within unallocated corporate expenses. The Company expects to recognize total restructuring and related charges for the 2015 Efficiency Program of $10.1 million by the end of 2017, of which $6.1 million relates to the Consumer segment, $3.7 million relates to the Professional segment and the remaining charge relates to unallocated corporate expenses. A summary of the restructuring and related charges incurred through December 31, 2015 in connection with the 2015 Efficiency Program is presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Charges incurred through December 31, 2015 $ 9.4 $ 0.1 $ 9.5 Total expected charges $ 9.5 $ 0.6 $ 10.1 The Company expects that cash payments will total approximately $10.3 million in connection with the 2015 Efficiency Program, including $0.2 million for capital expenditures (which capital expenditures are excluded from total restructuring and related charges expected to be recognized for the 2015 Efficiency Program), of which $2.8 million was paid in 2015, $5.8 million is expected to be paid in 2016, and the remaining balance expected to be paid in 2017. Integration Program Following Products Corporation's October 2013 Colomer Acquisition, the Company announced in January 2014 that it was implementing actions to integrate Colomer’s operations into the Company’s business, as well as additional restructuring actions identified to reduce costs across the Company’s businesses (all such actions, together, the “Integration Program”). The Company recognized total restructuring charges, capital expenditures and related non-restructuring costs under the Integration Program of approximately $45 million in the aggregate over the periods described below. The Integration Program was designed to deliver cost reductions throughout the combined organization by generating synergies and operating efficiencies within the Company’s global supply chain and consolidating offices and back office support, and other actions which were designed to reduce selling, general and administrative ("SG&A") expenses. The Company completed the Integration Program as of December 31, 2015. The approximately $45 million of total non-restructuring costs, capital expenditures and restructuring charges under the Integration Program referred to above consisted of the following: 1. $2.1 million , $5.9 million and $12.5 million of non-restructuring integration costs recognized in 2015, 2014 and 2013, respectively. Such costs were reflected within acquisition and integration costs in the Company's Consolidated Statements of Income and Comprehensive Income (Loss) and are related to combining Colomer’s operations into the Company’s business; 2. Total integration-related capital expenditures of $5.3 million , of which $0.9 million and $4.4 million were paid during 2015 and 2014, respectively; and 3. Total restructuring and related charges of $18.3 million , of which $(1.8) million and $20.1 million were recognized during 2015 and 2014, respectively. A summary of the restructuring and related charges for the Integration Program incurred through December 31, 2015 are as follows: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Inventory Write-offs and Other Manufacturing-Related Costs (a) Other Charges (b) Total Restructuring and Related Charges Charges incurred through December 31, 2014 $ 17.3 $ 1.6 $ 18.9 $ 0.6 $ 0.6 $ 20.1 Charges incurred through December 31, 2015 $ (3.4 ) $ 0.6 $ (2.8 ) $ 0.7 $ 0.3 $ (1.8 ) Total charges $ 13.9 $ 2.2 $ 16.1 $ 1.3 $ 0.9 $ 18.3 (a) Inventory write-offs and other manufacturing-related costs are recorded within cost of sales within the Company’s Consolidated Statements of Income and Comprehensive Income (Loss). (b) Other charges are recorded within SG&A expenses within the Company’s Consolidated Statements of Income and Comprehensive Income (Loss). During 2015, the Company recorded a $1.8 million benefit related to a change in estimate in connection with the Integration Program, of which $3.1 million is related to the Consumer segment, partially offset by additional charges of $1.3 million related to the Professional segment. During 2014, the Company recorded $20.1 million of charges related to the Integration Program, of which $10.2 million related to the Consumer segment and $9.9 million related to the Professional segment. The Company expects that cash payments related to the restructuring and related charges in connection with the Integration Program will total approximately $18 million , of which $6.7 million was paid during 2015 and $9.6 million was paid during 2014. The remaining balance is expected to be paid in 2016. December 2013 Program In December 2013, the Company announced restructuring actions that included exiting its direct manufacturing, warehousing and sales business operations in mainland China, as well as implementing other immaterial restructuring actions outside the U.S. that are expected to generate operating efficiencies (the "December 2013 Program"). These restructuring actions resulted in the Company eliminating approximately 1,100 positions in 2014, primarily in China, which included eliminating in the first quarter of 2014 approximately 940 beauty advisors retained indirectly through a third-party agency. The charges incurred for the December 2013 Program relate entirely to the Consumer segment. A summary of the restructuring and related charges incurred through 2015 in connection with the December 2013 Program are presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Allowances and Returns Inventory Write-offs Other Charges Total Restructuring and Related Charges Charges incurred through December 31, 2014 $ 8.6 $ 0.3 $ 8.9 $ 6.5 $ 3.1 $ 0.4 $ 18.9 Charges incurred through December 31, 2015 $ — $ — $ — $ — $ — $ — $ — Total expected charges $ 8.6 $ 0.3 $ 8.9 $ 6.5 $ 3.1 $ 0.4 $ 18.9 The Company expects net cash payments related to the December 2013 Program to total approximately $17 million , of which nil was paid in 2015, $15.5 million was paid during 2014 and $0.1 million was paid in 2013. The remaining balance is expected to be paid in 2016. Other Immaterial Actions In 2015, the Company recorded $3.9 million of restructuring and related charges for other immaterial restructuring actions within both the Consumer and Professional segments, primarily related to exit and disposal costs associated with the Company's Hong Kong subsidiary. In 2014, the Company recorded net charges totaling $2.7 million of restructuring and related charges, for other immaterial restructuring actions within both the Consumer and Professional segments, due to $5.3 million of charges primarily related to employee-related costs, partially offset by a $ 2.6 million gain related to the sale of property, plant and equipment. Restructuring Reserve The related liability balance and activity for each of the Company's restructuring programs, as summarized above, are presented in the following table: Utilized, Net Balance Beginning of Year (Income) Expense, Net Foreign Currency Translation Cash Non-cash Balance End of Year 2015 2015 Efficiency Program: Employee severance and other personnel benefits $ — $ 9.4 $ — $ (2.8 ) $ — $ 6.6 Other — 0.1 — — — 0.1 Integration Program: Employee severance and other personnel benefits 9.6 (3.4 ) (0.2 ) (5.2 ) — 0.8 Other 0.1 0.6 — (0.6 ) — 0.1 December 2013 Program: Employee severance and other personnel benefits 1.2 — — — — 1.2 Other — — — — — — Other immaterial actions: Employee severance and other personnel benefits 3.1 1.7 (0.1 ) (2.4 ) — 2.3 Other — 2.1 — (1.4 ) — 0.7 Total restructuring reserve $ 14.0 $ 10.5 $ (0.3 ) $ (12.4 ) $ — $ 11.8 2014 Integration Program: Employee severance and other personnel benefits $ — $ 17.3 $ (0.1 ) $ (7.6 ) $ — $ 9.6 Other — 1.6 — (1.2 ) (0.3 ) 0.1 December 2013 Program: Employee severance and other personnel benefits 9.0 (0.5 ) (0.2 ) (7.3 ) 0.2 1.2 Other 0.5 (0.2 ) — (0.3 ) — — Other immaterial actions: Employee severance and other personnel benefits (a) 2.7 5.0 (0.2 ) (4.5 ) 0.1 3.1 Other (a) 1.5 0.2 — (1.7 ) — — Total restructuring reserve $ 13.7 $ 23.4 $ (0.5 ) $ (22.6 ) $ — $ 14.0 Gain on sale of property, plant and equipment for 2014 other immaterial actions (2.6 ) Portion of restructuring benefits recorded within (loss) income from discontinued operations (b) 0.5 Total restructuring charges and other, net, from continuing operations $ 21.3 (a) Includes reserve of $4.2 million remaining at the end of 2013 related to the Company's exit of its then-owned manufacturing facility in France and its then-leased manufacturing facility in Maryland; rightsizing its organizations in France and Italy; and realigning its operations in Latin America and Canada, or the "September 2012 Program." (b) Refer to Note 4, "Discontinued Operations" for additional information regarding the Company's exit of its direct manufacturing, warehousing and sales business operations in mainland China. As of December 31, 2015 , $11.8 million of the restructuring reserve balance was included within accrued expenses and other in the Company's Consolidated Balance Sheet. At December 31, 2014, $13.7 million of the restructuring reserve balance was included within accrued expenses and other and $0.3 million was included within other long-term liabilities in the Company's Consolidated Balance Sheet. |
DISCONTINUED OPERATIONS - Q2
DISCONTINUED OPERATIONS - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Discontinued Operations [Abstract] | ||
DISCONTINUED OPERATIONS | 4. DISCONTINUED OPERATIONS On December 30, 2013, the Company announced that it was implementing the December 2013 Program, which primarily included exiting its direct manufacturing, warehousing and sales business operations in mainland China. The results of the China discontinued operations are included within Loss from discontinued operations, net of taxes, and relate entirely to the Consumer segment. The summary comparative financial results of discontinued operations are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net sales $ — $ — $ — $ — Loss from discontinued operations, before taxes (2.5 ) — (2.1 ) (0.1 ) Provision for income taxes — — — — Loss from discontinued operations, net of taxes (2.5 ) — (2.1 ) (0.1 ) Assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consist of the following: June 30, 2016 December 31, 2015 Cash and cash equivalents $ 1.8 $ 2.0 Trade receivables, net 0.2 0.2 Total current assets 2.0 2.2 Total assets $ 2.0 $ 2.2 Accounts payable $ 0.6 $ 0.7 Accrued expenses and other 3.5 3.6 Total current liabilities 4.1 4.3 Total liabilities $ 4.1 $ 4.3 | 4. DISCONTINUED OPERATIONS On December 30, 2013, the Company announced that it was implementing the December 2013 Program, which primarily included exiting its direct manufacturing, warehousing and sales business operations in mainland China (refer to Note 3, "Restructuring Charges - December 2013 Program"). The results of the China discontinued operations are included within (loss) income from discontinued operations, net of taxes, and relate entirely to the Consumer segment. The summary comparative financial results of discontinued operations are as follows: Year Ended December 31, 2015 2014 2013 Net sales $ — $ 2.6 $ 13.8 (Loss) income from discontinued operations, before taxes (3.2 ) 1.5 (30.8 ) Provision for income taxes — 0.2 (0.4 ) (Loss) income from discontinued operations, net of taxes (3.2 ) 1.3 (30.4 ) (a) Net sales during 2014 include favorable adjustments to sales returns related to the Company's exit of its direct manufacturing, warehousing and sales business operations in mainland China. (b) Included in loss from discontinued operations, before taxes for 2013 are $20.0 million of restructuring and related charges related to the December 2013 Program. Refer to Note 3, "Restructuring Charges - December 2013 Program," for related disclosures. Assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consist of the following: December 31, 2015 December 31, 2014 Cash and cash equivalents $ 2.0 $ 2.4 Trade receivables, net 0.2 0.2 Total current assets 2.2 2.6 Total assets $ 2.2 $ 2.6 Accounts payable $ 0.7 $ 0.2 Accrued expenses and other 3.6 3.9 Total current liabilities 4.3 4.1 Total liabilities $ 4.3 $ 4.1 |
INVENTORIES - Q2
INVENTORIES - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Inventories [Abstract] | ||
INVENTORIES | 5. INVENTORIES June 30, 2016 December 31, 2015 Raw materials and supplies $ 61.9 $ 58.2 Work-in-process 12.0 8.3 Finished goods 135.7 117.3 $ 209.6 $ 183.8 | 5. INVENTORIES December 31, 2015 2014 Raw materials and supplies $ 58.2 $ 47.2 Work-in-process 8.3 9.0 Finished goods 117.3 100.4 $ 183.8 $ 156.6 |
GOODWILL AND INTANGIBLE ASSET42
GOODWILL AND INTANGIBLE ASSETS, NET - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets, Net [Abstract] | ||
GOODWILL AND INTANGIBLE ASSETS, NET | 6. GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The following table presents the changes in goodwill by segment during the six months ended June 30, 2016: Consumer Professional Other Total Balance at January 1, 2016 $ 210.1 $ 240.7 $ 18.9 $ 469.7 Goodwill acquired (a) 8.6 — — 8.6 Foreign currency translation adjustment — 0.2 (1.8 ) (1.6 ) Balance at June 30, 2016 $ 218.7 $ 240.9 $ 17.1 $ 476.7 (a) On May 31, 2016, the Company completed the Cutex International Acquisition. See Note 2, "Business Combinations," to the Unaudited Consolidated Financial Statements in this Form 10-Q for details related to the Cutex International Acquisition. Intangible Assets, Net The following tables present details of the Company's total intangible assets: June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Trademarks and Licenses $ 147.2 $ (42.3 ) $ 104.9 Customer relationships 132.5 (24.4 ) 108.1 Patents and Internally-Developed IP 17.9 (5.2 ) 12.7 Distribution rights 3.1 (0.9 ) 2.2 Total finite-lived intangible assets $ 300.7 $ (72.8 ) $ 227.9 Indefinite-lived intangible assets: Trade Names $ 101.0 $ — $ 101.0 Total indefinite-lived intangible assets $ 101.0 $ — $ 101.0 Total intangible assets $ 401.7 $ (72.8 ) $ 328.9 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Trademarks and Licenses $ 145.0 $ (36.0 ) $ 109.0 Customer relationships 118.8 (20.5 ) 98.3 Patents and Internally-Developed IP 16.8 (4.0 ) 12.8 Distribution rights 3.5 (0.6 ) 2.9 Total finite-lived intangible assets $ 284.1 $ (61.1 ) $ 223.0 Indefinite-lived intangible assets: Trade Names $ 95.0 $ — $ 95.0 Total indefinite-lived intangible assets $ 95.0 $ — $ 95.0 Total intangible assets $ 379.1 $ (61.1 ) $ 318.0 Amortization expense for finite-lived intangible assets was $6.1 million and $5.3 million for the three months ended June 30, 2016 and 2015, respectively. Amortization expense for finite-lived intangible assets was $12.0 million and $10.4 million for the six months ended June 30, 2016 and 2015, respectively. Estimated Amortization Expense 2016 $ 11.5 2017 23.6 2018 22.7 2019 20.1 2020 19.5 Thereafter 130.5 Total $ 227.9 | 8. GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The following table presents the changes in goodwill by segment during each of 2015 and 2014: Consumer Professional Other Total Balance at January 1, 2014 $ 217.9 $ 254.4 $ — $ 472.3 Foreign currency translation adjustment — (8.2 ) — (8.2 ) Balance at December 31, 2014 $ 217.9 $ 246.2 $ — $ 464.1 Goodwill acquired 1.9 — 19.5 21.4 Foreign currency translation adjustment — (5.5 ) (0.6 ) (6.1 ) Goodwill impairment charge $ (9.7 ) $ — $ — $ (9.7 ) Balance at December 31, 2015 $ 210.1 $ 240.7 $ 18.9 $ 469.7 The goodwill acquired during 2015 relates to: (i) $19.5 million of goodwill acquired in the CBB Acquisition, which was assigned to the Company's Other segment; and (ii) $1.9 million of goodwill acquired in the Cutex Acquisition. See Note 1, "Description of the Business and Summary of Significant Accounting Policies," for further discussion of the "Other" segment and Note 2, "Business Combinations," for further discussion of the CBB Acquisition. For 2015, the Company utilized the two-step process as prescribed by ASC 350, Intangibles - Goodwill and Other, in order to identify potential impairment for each of its reporting units. In the first step of this test, the Company compared the fair value of each of the Company's reporting units, determined based upon discounted estimated future cash flows, to the respective carrying amount, including goodwill. Where the fair value of such reporting unit exceeded the carrying amount, no further work was required and no impairment loss was recognized. The results of the step one test concluded that impairment indicators may have existed within the Global Color Brands reporting unit as a result of the observed decline in sales of the Pure Ice nail enamel brand, primarily driven by the effects of declines in the promotional activity for the Pure Ice brand at retailers and, accordingly, the Company performed step two of the goodwill impairment test for this reporting unit. In the second step, the Company measured the potential impairment by comparing the implied fair value of the Global Color Brands reporting unit’s goodwill with the carrying amount of the goodwill at September 30, 2015. The implied fair value of goodwill was determined in the same manner as the amount of goodwill recognized in a business combination, where the estimated fair value of the reporting unit was allocated to all the assets and liabilities of that reporting unit (including both recognized and unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the estimated fair value of the reporting unit was the purchase price paid. When the carrying amount of the reporting unit's goodwill is greater than the implied fair value of that reporting unit's goodwill, an impairment loss is recognized within operations. The Company determined the fair value of the Global Color Brands reporting unit using discounted estimated future cash flows. The weighted average cost of capital in testing the Global Color Brands reporting unit for impairment was 13.0% with a perpetual growth rate of 2.0% . As a result of this annual impairment test, the Company recognized a $9.7 million non-cash goodwill impairment charge related to the Global Color Brands reporting unit in the fourth quarter of 2015. Intangible Assets, Net The following tables present details of the Company's total intangible assets: December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and Licenses $ 145.0 $ (36.0 ) $ 109.0 15 Customer relationships 118.8 (20.5 ) 98.3 16 Patents and Internally-Developed IP 16.8 (4.0 ) 12.8 10 Distribution rights 3.5 (0.6 ) 2.9 5 Total finite-lived intangible assets $ 284.1 $ (61.1 ) $ 223.0 Indefinite-lived intangible assets: Trade Names $ 95.0 $ — $ 95.0 Total indefinite-lived intangible assets $ 95.0 $ — $ 95.0 Total intangible assets $ 379.1 $ (61.1 ) $ 318.0 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and Licenses $ 140.5 $ (23.5 ) $ 117.0 14 Customer relationships 109.1 (13.4 ) 95.7 17 Patents and Internally-Developed IP 16.2 (2.4 ) 13.8 10 Total finite-lived intangible assets $ 265.8 $ (39.3 ) $ 226.5 Indefinite-lived intangible assets: Trade Names $ 101.3 $ — $ 101.3 Total indefinite-lived intangible assets $ 101.3 $ — $ 101.3 Total intangible assets $ 367.1 $ (39.3 ) $ 327.8 Amortization expense for finite-lived intangible assets was $22.4 million , $21.3 million and $10.4 million for 2015, 2014 and 2013, respectively. The following table reflects the estimated future amortization expense, a portion of which is subject to exchange rate fluctuations, for the Company's finite-lived intangible assets as of December 31, 2015: Estimated Amortization Expense 2016 $ 22.7 2017 22.3 2018 21.4 2019 18.9 2020 18.2 Thereafter 119.5 Total $ 223.0 |
ACCRUED EXPENSES AND OTHER - Q2
ACCRUED EXPENSES AND OTHER - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Accrued Expenses and Other [Abstract] | ||
ACCRUED EXPENSES AND OTHER | 7. ACCRUED EXPENSES AND OTHER June 30, 2016 December 31, 2015 Sales returns and allowances $ 50.8 $ 61.1 Compensation and related benefits 49.4 75.6 Advertising and promotional costs 37.0 38.4 Taxes 23.4 20.8 Interest 12.3 12.4 Restructuring reserve 9.8 11.8 Other 50.5 52.3 $ 233.2 $ 272.4 | 9. ACCRUED EXPENSES AND OTHER December 31, 2015 2014 Sales returns and allowances $ 61.1 $ 70.6 Compensation and related benefits 75.6 66.8 Advertising and promotional costs 38.4 44.9 Taxes 20.8 23.4 Interest 12.4 11.0 Restructuring reserve 11.8 13.7 Other 52.3 42.9 $ 272.4 $ 273.3 |
LONG-TERM DEBT - Q2
LONG-TERM DEBT - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Long-Term Debt [Abstract] | ||
LONG-TERM DEBT | 8. LONG-TERM DEBT June 30, 2016 December 31, 2015 Amended Term Loan Facility: Acquisition Term Loan due 2019, net of discounts and debt issuance costs (a) $ 648.5 $ 662.1 Amended Term Loan Facility: 2011 Term Loan due 2017, net of discounts and debt issuance costs (a) 648.2 658.5 Amended Revolving Credit Facility (b) — — 5¾% Senior Notes due 2021, net of debt issuance costs (c) 493.1 492.5 Spanish Government Loan due 2025 (d) 0.6 0.6 1,790.4 1,813.7 Less current portion (*) (6.8 ) (30.0 ) $ 1,783.6 $ 1,783.7 (*) At December 31, 2015, the Company classified $30.0 million as the current portion of long-term debt, which was comprised of a $23.2 million required “excess cash flow” prepayment (as defined under the Amended Term Loan Agreement, as hereinafter defined) that was paid on February 29, 2016, and the Company’s regularly scheduled $1.7 million quarterly principal amortization payments (after giving effect to such prepayment) due in 2016. (a) See Note 17, "Subsequent Events," to the Unaudited Consolidated Financial Statements in this Form 10-Q for debt-related matters that occurred subsequent to the second quarter of 2016 and see Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding Products Corporation's Amended Term Loan Agreement, which facility is comprised of: (i) the term loan due November 19, 2017 in the original aggregate amount of $675.0 million (the "2011 Term Loan"); and (ii) the term loan due October 8, 2019 in the original aggregate amount of $700.0 million (the "Acquisition Term Loan") which, respectively, had $651.4 million and $658.6 million in aggregate principal balance outstanding at June 30, 2016 (together, the "Amended Term Loan Agreement"). (b) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding Products Corporation's existing $175.0 million asset-based, multi-currency revolving credit facility (the "Amended Revolving Credit Facility") which matures on the earlier of August 14, 2018 and the date that is 90 days prior to the earliest maturity date of any term loans then outstanding under the Amended Term Loan Agreement. (c) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding Products Corporation's 5¾% Senior Notes that mature on February 15, 2021. The aggregate principal amount outstanding at June 30, 2016 was $500 million . (d) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding the euro-denominated loan payable to the Spanish government that matures on June 30, 2025. 2016 Debt Related Transaction Amended Term Loan Facility - Excess Cash Flow Payment On February 29, 2016, Products Corporation prepaid $23.2 million of indebtedness, representing 50% of its 2015 “excess cash flow” as defined under the Amended Term Loan Agreement, in accordance with the terms of its Amended Term Loan Facility. The prepayment was applied on a ratable basis between the principal amounts outstanding under the 2011 Term Loan and the Acquisition Term Loan. The amount of the prepayment that was applied to the 2011 Term Loan reduced the principal amount outstanding by $11.5 million to $651.4 million (as all amortization payments under the 2011 Term Loan had been paid). The $11.7 million that was applied to the Acquisition Term Loan reduced Products Corporation's future annual amortization payments under the Acquisition Term Loan on a ratable basis from $6.9 million prior to the prepayment to $6.8 million after giving effect to the prepayment and through its maturity on October 8, 2019. See Note 17, "Subsequent Events," to the Unaudited Consolidated Financial Statements in this Form 10-Q for debt-related transaction details that occurred subsequent to the second quarter of 2016. Covenants Products Corporation was in compliance with all applicable covenants under the Amended Term Loan Agreement and the Amended Revolving Credit Facility as of June 30, 2016. At June 30, 2016, the aggregate principal amounts outstanding under the Acquisition Term Loan and the 2011 Term Loan were $658.6 million and $651.4 million , respectively, and availability under the $175.0 million Amended Revolving Credit Facility, based upon the calculated borrowing base less $8.3 million of outstanding undrawn letters of credit and nil then drawn on the Amended Revolving Credit Facility, was $166.7 million . Products Corporation was in compliance with all applicable covenants under its 5¾% Senior Notes Indenture as of June 30, 2016 and December 31, 2015. | 11. LONG-TERM DEBT December 31, 2015 December 31, 2014 Amended Term Loan Facility: Acquisition Term Loan due 2019, net of discounts (see (a) below) $ 672.5 $ 691.6 Amended Term Loan Facility: 2011 Term Loan due 2017, net of discounts (see (a) below) 660.6 671.6 Amended Revolving Credit Facility (see (a) below) — — 5¾% Senior Notes due 2021 (see (b) below) 500.0 500.0 Spanish Government Loan due 2025 (see (c) below) 0.6 0.7 1,833.7 1,863.9 Less current portion (*) (30.0 ) (31.5 ) $ 1,803.7 $ 1,832.4 (*) At December 31, 2015 and 2014, the Company classified $30.0 million and $31.5 million , respectively, of long-term debt as a current liability, which was primarily comprised of $23.2 million and $24.6 million of required “excess cash flow” prepayments (as defined under the Amended Term Loan Agreement, as hereinafter defined). The excess cash flow prepayment for 2015 will be paid on or prior to April 9, 2016. The 2014 excess cash flow prepayment was paid on March 12, 2015. The current portion of long-term debt also includes the Company’s annual principal amortization payments (payable in equal quarterly installments and after giving effect to such prepayments) of $6.8 million and $6.9 million due in 2016 and 2015, respectively. The Company completed the following debt transactions during 2015 and 2014. 2015 Debt Related Transaction Amended Term Loan Facility - Excess Cash Flow Payment In March 2015, Products Corporation prepaid $24.6 million of indebtedness, representing 50% of its 2014 “excess cash flow” as defined under the Amended Term Loan Agreement, in accordance with the terms of its Amended Term Loan Facility. The prepayment was applied on a ratable basis between the principal amounts outstanding under the 2011 Term Loan and the Acquisition Term Loan. The amount of the prepayment that was applied to the 2011 Term Loan reduced the principal amount outstanding by $12.1 million to $662.9 million (as all amortization payments under the 2011 Term Loan had been paid). The $12.5 million that was applied to the Acquisition Term Loan reduced Products Corporation's future regularly scheduled quarterly amortization payments under the Acquisition Term Loan on a ratable basis from $1.8 million prior to the prepayment to $1.7 million after giving effect to 2014 Debt Related Transactions February 2014 Term Loan Amendment In February 2014, Products Corporation entered into an amendment (the “February 2014 Term Loan Amendment”) to its amended term loan agreement among Products Corporation, as borrower, a syndicate of lenders and Citicorp USA, Inc. (“CUSA”), as administrative agent and collateral agent. The amended term loan agreement is comprised of: (i) the term loan due November 19, 2017, in the original aggregate principal amount of $675.0 million , which had $662.9 million in aggregate principal balance outstanding as of December 31, 2015 (the "2011 Term Loan" or the “2011 Term Loan Facility”); and (ii) the term loan due October 8, 2019, in the original aggregate principal amount of $700 million , which had $673.7 million in aggregate principal balance outstanding as of December 31, 2015 (the "Acquisition Term Loan") (together, the "Amended Term Loan Agreement" and the "Amended Term Loan Facility"). Pursuant to the February 2014 Term Loan Amendment, the interest rates applicable to Eurodollar Loans under the 2011 Term Loan bear interest at the Eurodollar Rate plus 2.5% per annum, with the Eurodollar Rate not to be less than 0.75% (compared to 3.0% and 1.0% , respectively, prior to the February 2014 Term Loan Amendment), while Alternate Base Rate Loans under the 2011 Term Loan bear interest at the Alternate Base Rate plus 1.5% , with the Alternate Base Rate not to be less than 1.75% (compared to 2.0% in each case prior to the February 2014 Term Loan Amendment) (and as each such term is defined in the Amended Term Loan Agreement). Products Corporation's Acquisition Term Loan and Products Corporation's $175.0 million asset-based, multi-currency revolving credit facility (the "Amended Revolving Credit Facility") were not amended in connection with the February 2014 Term Loan Amendment. During 2014, the Company incurred approximately $1.1 million of fees and expenses in connection with the February 2014 Term Loan Amendment, which were expensed as incurred, and wrote-off $0.8 million of unamortized debt discount and deferred financing costs as a result of the February 2014 Term Loan Amendment. These amounts, totaling $ 1.9 million , were recognized within loss on early extinguishment of debt in the Company’s Consolidated Statements of Income and Comprehensive Income (Loss) for the year ended December 31, 2014. Repayment of Non-Contributed Loan On May 1, 2014, Products Corporation used available cash on hand to optionally prepay in full the remaining $58.4 million principal amount outstanding under the non-contributed loan portion of Product Corporation's amended and restated senior subordinated term loan agreement with MacAndrews & Forbes (the "Non-Contributed Loan") that remained owing from Products Corporation to various third parties. The Non-Contributed Loan would have otherwise matured on October 8, 2014. In connection with such prepayment, the Company wrote-off $0.1 million of deferred financing costs, which were recognized within loss on early extinguishment of debt in the Company's Consolidated Statements of Income and Comprehensive Income (Loss) for 2014. Long-Term Debt Agreements (a) Amended Credit Agreements The following is a summary description of the Amended Term Loan Facility, which includes the 2011 Term Loan and the Acquisition Term Loan, and the Amended Revolving Credit Facility. Unless otherwise indicated, capitalized terms have the meanings given to them in the Amended Term Loan Agreement and/or the Amended Revolving Credit Agreement (the "Amended Credit Agreements"), as applicable. Investors should refer to the Amended Revolving Credit Agreement and/or the Amended Term Loan Agreement for complete terms and conditions, as these summary descriptions are subject to a number of qualifications and exceptions. Amended Revolving Credit Facility Availability under the Amended Revolving Credit Facility varies based on a borrowing base that is determined by the value of eligible trade receivables and eligible inventory in the U.S. and the U.K. and eligible real property and equipment in the U.S. from time to time. In January 2014, certain of Products Corporation’s U.S.-domiciled subsidiaries acquired in the Colomer Acquisition (the “Colomer U.S. Subsidiaries”) became additional guarantors under Products Corporation’s Amended Term Loan Facility and Amended Revolving Credit Facility and the 5¾% Senior Notes Indenture. In January and May 2015, certain of Product Corporation’s newly-formed U.S.-domiciled subsidiaries in the Professional segment and formed in connection with the CBB Acquisition (collectively, the “New U.S. Subsidiaries”) became additional guarantors under such debt instruments. In connection with becoming guarantors, substantially all of the assets of such subsidiaries were pledged as collateral under Products Corporation’s Amended Term Loan Facility and Amended Revolving Credit Facility, thereby increasing the value of the assets supporting the borrowing base under the Amended Revolving Credit Facility. If the value of the eligible assets is not sufficient to support the $175.0 million borrowing base under the Amended Revolving Credit Facility, Products Corporation will not have full access to the Amended Revolving Credit Facility. Products Corporation’s ability to borrow under the Amended Revolving Credit Facility is also conditioned upon the satisfaction of certain conditions precedent and Products Corporation’s compliance with other covenants in the Amended Revolving Credit Agreement. In each case subject to borrowing base availability, the Amended Revolving Credit Facility is available to: (i) Products Corporation in revolving credit loans denominated in U.S. Dollars; (ii) Products Corporation in swing line loans denominated in U.S. Dollars up to $30.0 million ; (iii) Products Corporation in standby and commercial letters of credit denominated in U.S. Dollars and other currencies up to $60.0 million ; and (iv) Products Corporation and certain of its international subsidiaries designated from time to time in revolving credit loans and bankers’ acceptances denominated in U.S. Dollars and other currencies. Under the Amended Revolving Credit Facility, borrowings (other than loans in foreign currencies) bear interest, if made as Eurodollar Loans, at the Eurodollar Rate plus the applicable margin set forth in the grid below and, if made as Alternate Base Rate Loans, at the Alternate Base Rate plus the applicable margin set forth in the grid below. Excess Availability Alternate Base Rate Loans Eurodollar Loans, Eurocurrency Loan or Local Rate Loans Greater than or equal to $92,000,000 0.50% 1.50% Less than $92,000,000 but greater than or equal to $46,000,000 0.75% 1.75% Less than $46,000,000 1.00% 2.00% Local Loans (as defined in the Amended Revolving Credit Agreement) bear interest, if mutually acceptable to Products Corporation and the relevant foreign lenders, at the Local Rate, and otherwise (i) if in foreign currencies or in U.S. Dollars at the Eurodollar Rate or the Eurocurrency Rate plus the applicable margin set forth in the grid above or (ii) if in U.S. Dollars at the Alternate Base Rate plus the applicable margin set forth in the grid above. Prior to the termination date of the Amended Revolving Credit Facility, revolving loans are required to be prepaid (without any permanent reduction in commitment) with: (i) the net cash proceeds from sales of Revolving Credit First Lien Collateral by Products Corporation or any of Products Corporation’s subsidiary guarantors (other than dispositions in the ordinary course of business and certain other exceptions); and (ii) the net proceeds from the issuance by Products Corporation or any of its subsidiaries of certain additional debt, to the extent there remains any such proceeds after satisfying Products Corporation’s repayment obligations under the Amended Term Loan Facility. Products Corporation pays to the lenders under the Amended Revolving Credit Facility a commitment fee of 0.25% of the average daily unused portion of the Amended Revolving Credit Facility, which fee is payable quarterly in arrears. Under the Amended Revolving Credit Facility, Products Corporation also pays: (i) to foreign lenders a fronting fee of 0.25% per annum on the aggregate principal amount of specified Local Loans (which fee is retained by foreign lenders out of the portion of the Applicable Margin payable to such foreign lender); (ii) to foreign lenders an administrative fee of 0.25% per annum on the aggregate principal amount of specified Local Loans; (iii) to the multi-currency lenders a letter of credit commission equal to the product of (a) the Applicable Margin for revolving credit loans that are Eurodollar Rate loans (adjusted for the term that the letter of credit is outstanding) and (b) the aggregate undrawn face amount of letters of credit; and (iv) to the issuing lender, a letter of credit fronting fee of 0.25% per annum of the aggregate undrawn face amount of letters of credit, which fee is a portion of the Applicable Margin. Under certain circumstances, Products Corporation has the right to request that the Amended Revolving Credit Facility be increased by up to $100.0 million , provided that the lenders are not committed to provide any such increase. Under certain circumstances, if and when the difference between (i) the borrowing base under the Amended Revolving Credit Facility and (ii) the amounts outstanding under the Amended Revolving Credit Facility is less than $20.0 million for a period of two consecutive days or more, and until such difference is equal to or greater than $20.0 million for a period of 30 consecutive business days, the Amended Revolving Credit Facility requires Products Corporation to maintain a consolidated fixed charge coverage ratio (the ratio of EBITDA minus Capital Expenditures to Cash Interest Expense for such period) of a minimum of 1.0 to 1.0. The Amended Revolving Credit Facility matures on the earlier of August 14, 2018 and the date that is 90 days prior to the earliest maturity date of any term loans then outstanding under the Amended Term Loan Facility, but not earlier than June 16, 2016. Amended Term Loan Facility Term loans under the Amended Term Loan Facility bear interest at the following interest rates: Eurodollar Loans Alternate Base Rate Loans 2011 Term Loans Eurodollar Rate plus 2.50% per annum (with the Eurodollar Rate not to be less than 0.75%) Alternate Base Rate plus 1.50% (with the Alternate Base Rate not to be less than 1.75%) Acquisition Term Loans Eurodollar Rate plus 3.00% per annum (with the Eurodollar Rate not to be less than 1.00%) Alternate Base Rate plus 2.00% (with the Alternate Base Rate not to be less than 2.00%) The term loans under the Amended Term Loan Facility are required to be prepaid with: (i) the net cash proceeds in excess of $10 million for each 12-month period ending on March 31 received during such period from sales of Term Loan First Lien Collateral by Products Corporation or any of its subsidiary guarantors, with carryover of unused annual basket amounts up to a maximum of $25 million and with respect to certain specified dispositions up to an additional $25 million in the aggregate (subject to a reinvestment right for 365 days, or 545 days if the Company has within such 365 -day period entered into a legally binding commitment to invest such funds); (ii) the net proceeds from the issuance by Products Corporation or any of its subsidiaries of certain additional debt; and (iii) 50% of Products Corporation’s “excess cash flow” (as defined under the Amended Term Loan Agreement). As of December 31, 2015, Products Corporation is required to prepay, on or before 100 days following the last day of its fiscal year (i.e., by April 9, 2016), $23.2 million of indebtedness under the Amended Term Loan Facility, representing 50% of its 2015 "excess cash flow" (as defined under the Amended Term Loan Agreement). The prepayment will be applied on a ratable basis between the principal amounts outstanding under the 2011 Term Loan and the Acquisition Term Loan. The amount of the prepayment to be applied to the 2011 Term Loan will be used to reduce the aggregate principal amount outstanding (as all amortization payments under the 2011 Term Loan have been paid), while the amount to be applied to the Acquisition Term Loan will be used to reduce Products Corporation's future annual amortization payments (which are payable in equal quarterly installments) on a ratable basis from $6.9 million prior to the prepayment to $6.8 million after giving effect to the prepayment and through its maturity on October 8, 2019. The Amended Term Loan Facility contains a financial covenant limiting Products Corporation’s first lien senior secured leverage ratio (the ratio of Products Corporation’s senior secured debt that has a lien on the collateral which secures the Amended Term Loan Facility that is not junior or subordinated to the liens securing the Amended Term Loan Facility (excluding debt outstanding under the Amended Revolving Credit Facility)) to EBITDA, as each such term is defined in the Amended Term Loan Facility, to no more than 4.25 to 1.0 for each period of four consecutive fiscal quarters ending through the maturity date of the Amended Term Loan Facility. Products Corporation, under certain circumstances, also has the right to request the Amended Term Loan Facility to be increased by up to the greater of: (i) $300 million ; and (ii) an amount such that Products Corporation’s First Lien Secured Leverage Ratio (as defined in the Amended Term Loan Agreement) does not exceed 3.50 :1.00. The lenders are not committed to provide any such increase. Any such increase would be in addition to the Acquisition Term Loan. The 2011 Term Loan outstanding under the Amended Term Loan Facility matures on November 19, 2017. The Acquisition Term Loan under the Amended Term Loan Facility has the same terms as the 2011 Term Loans, except that: (i) it matures on the sixth anniversary of the closing of the Acquisition Term Loan (or October 8, 2019); and (ii) it amortizes on March 31, June 30, September 30 and December 31 of each year (which commenced March 31, 2014), in an amount equal to 0.25% of the aggregate principal amount of the Acquisition Term Loan. Provisions Applicable to the Amended Term Loan Facility and the Amended Revolving Credit Facility The Amended Credit Agreements are supported by, among other things, guarantees from Revlon, Inc. and, subject to certain limited exceptions, Products Corporation’s domestic subsidiaries. Products Corporation’s obligations under the Amended Term Loan Agreement and the Amended Revolving Credit Agreement and the obligations under such guarantees are secured by, subject to certain limited exceptions, substantially all of Products Corporation’s assets and the assets of the guarantors, including: (i) a mortgage on certain material owned real property, including Products Corporation’s facility in Oxford, North Carolina; (ii) Products Corporation’s capital stock and the capital stock of the subsidiary guarantors and 66% of the voting capital stock and 100% of the non-voting capital stock of Products Corporation’s and the subsidiary guarantors’ first-tier, non-U.S. subsidiaries; (iii) Products Corporation’s and the subsidiary guarantors’ intellectual property and other intangible property; and (iv) Products Corporation’s and the subsidiary guarantors’ inventory, trade receivables, equipment, investment property and deposit accounts. The liens on, among other things, inventory, trade receivables, deposit accounts, investment property (other than Products Corporation’s capital stock and the capital stock of Products Corporation’s subsidiaries), real property, equipment, fixtures and certain intangible property secure the Amended Revolving Credit Facility on a first priority basis and the Amended Term Loan Facility on a second priority basis. The liens on Products Corporation’s capital stock and the capital stock of Products Corporation’s subsidiaries and intellectual property and certain other intangible property secure the Amended Term Loan Facility on a first priority basis and the Amended Revolving Credit Facility on a second priority basis. Such arrangements are set forth in the Third Amended and Restated Intercreditor and Collateral Agency Agreement, dated as of March 11, 2010, by and among Products Corporation and CUSA, as administrative agent and as collateral agent for the benefit of the secured parties for the Amended Term Loan Facility and Amended Revolving Credit Facility (the “2010 Intercreditor Agreement”). The 2010 Intercreditor Agreement also provides that the liens referred to above may be shared from time to time, subject to certain limitations, with specified types of other obligations incurred or guaranteed by Products Corporation, such as foreign exchange and interest rate hedging obligations and foreign working capital lines. The Amended Credit Agreements contain various restrictive covenants prohibiting Products Corporation and its subsidiaries from: (i) incurring additional indebtedness or guarantees, with certain exceptions; (ii) making dividend and other payments or loans to Revlon, Inc. or other affiliates, with certain exceptions, including among others: (a) exceptions permitting Products Corporation to pay dividends or make other payments to Revlon, Inc. to enable it to, among other things, pay expenses incidental to being a public holding company, including, among other things, professional fees such as legal, accounting and insurance fees, regulatory fees, such as SEC filing fees and NYSE listing fees, and other expenses related to being a public holding company; (b) subject to certain circumstances, to finance the purchase by Revlon, Inc. of its Class A Common Stock in connection with the delivery of such Class A Common Stock to grantees under the Fourth Amended and Restated Revlon, Inc. Stock Plan and/or the payment of withholding taxes in connection with the vesting of restricted stock awards under such plan; (c) subject to certain limitations, to pay dividends or make other payments to finance the purchase, redemption or other retirement for value by Revlon, Inc. of stock or other equity interests or equivalents in Revlon, Inc. held by any current or former director, employee or consultant in his or her capacity as such; and (d) subject to certain limitations, to make other restricted payments to Products Corporation’s affiliates in an amount up to $10 million per year (plus $10 million for each calendar year commencing with 2011), other restricted payments in an aggregate amount not to exceed $35 million and certain other restricted payments, including without limitation those based upon certain financial tests; (iii) creating liens or other encumbrances on Products Corporation’s or its subsidiaries’ assets or revenues, granting negative pledges or selling or transferring any of Products Corporation’s or its subsidiaries’ assets, all subject to certain limited exceptions; (iv) with certain exceptions, engaging in merger or acquisition transactions; (v) prepaying indebtedness and modifying the terms of certain indebtedness and specified material contractual obligations, subject to certain exceptions; (vi) making investments, subject to certain exceptions; and (vii) entering into transactions with Products Corporation’s affiliates involving aggregate payments or consideration in excess of $10 million other than upon terms that are not materially less favorable when taken as a whole to Products Corporation or its subsidiaries as terms that would be obtainable at the time for a comparable transaction or series of similar transactions in arm’s length dealings with an unrelated third person and where such payments or consideration exceed $20 million , unless such transaction has been approved by all of Products Corporation’s independent directors, subject to certain exceptions. The events of default under the Amended Credit Agreements include customary events of default for such types of agreements, including, among others: (i) nonpayment of any principal, interest or other fees when due, subject in the case of interest and fees to a grace period; (ii) non-compliance with the covenants in the Amended Term Loan Agreement, the Amended Revolving Credit Agreement or the ancillary security documents, subject in certain instances to grace periods; (iii) the institution of any bankruptcy, insolvency or similar proceedings by or against Products Corporation, any of its subsidiaries or Revlon, Inc., subject in certain instances to grace periods; (iv) default by Revlon, Inc. or any of its subsidiaries (A) in the payment of certain indebtedness when due (whether at maturity or by acceleration) in excess of $50.0 million in aggregate principal amount or (B) in the observance or performance of any other agreement or condition relating to such debt, provided that the amount of debt involved is in excess of $50.0 million in aggregate principal amount, or the occurrence of any other event, the effect of which default referred to in this subclause (iv) is to cause or permit the holders of such debt to cause the acceleration of payment of such debt; (v) in the case of the Amended Term Loan Facility, a cross default under the Amended Revolving Credit Facility, and in the case of the Amended Revolving Credit Facility, a cross default under the Amended Term Loan Facility; (vi) the failure by Products Corporation, certain of Products Corporation’s subsidiaries or Revlon, Inc. to pay certain material judgments; (vii) a change of control such that: (A) Revlon, Inc. shall cease to be the beneficial and record owner of 100% of Products Corporation’s capital stock; (B) Ronald O. Perelman (or his estate, heirs, executors, administrator or other personal representative) and his or their controlled affiliates shall cease to “control” Products Corporation, and any other person or group of persons owns, directly or indirectly, more than 35% of Products Corporation’s total voting power; (C) any person or group of persons other than Ronald O. Perelman (or his estate, heirs, executors, administrator or other personal representative) and his or their controlled affiliates shall “control” Products Corporation; or (D) during any period of two consecutive years, the directors serving on Products Corporation’s Board of Directors at the beginning of such period (or other directors nominated by at least a majority of such continuing directors) shall cease to be a majority of the directors; (viii) Revlon, Inc. shall have any meaningful assets or indebtedness or shall conduct any meaningful business other than its ownership of Products Corporation and such activities as are customary for a publicly traded holding company which is not itself an operating company, in each case subject to limited exceptions; and (ix) the failure of certain affiliates which hold Products Corporation’s or its subsidiaries’ indebtedness to be party to a valid and enforceable agreement prohibiting such affiliate from demanding or retaining payments in respect of such indebtedness, subject to certain exceptions. If Products Corporation is in default under the senior secured leverage ratio under the Amended Term Loan Facility or the consolidated fixed charge coverage ratio under the Amended Revolving Credit Agreement, Products Corporation may cure such default by issuing certain equity securities to, or receiving capital contributions from, Revlon, Inc. and applying such cash which is deemed to increase EBITDA for the purpose of calculating the applicable ratio. Products Corporation may exercise this cure right two times in any four-quarter period. Covenants Products Corporation was in compliance with all applicable covenants under the Amended Term Loan Agreement and the Amended Revolving Credit Facility as of December 31, 2015 and 2014. At December 31, 2015, the aggregate principal amounts outstanding under the Acquisition Term Loan and the 2011 Term Loan were $673.7 million and $662.9 million , respectively, and availability under the $175.0 million Amended Revolving Credit Facility, based upon the calculated borrowing base less $8.8 million of outstanding undrawn letters of credit and nil then drawn on the Amended Revolving Credit Facility, was $166.2 million . (b) 5¾% Senior Notes On February 8, 2013, Products Corporation completed its offering (the "2013 Senior Notes Refinancing"), pursuant to an exemption from registration under the Securities Act of 1933 (as amended, the "Securities Act"), of $500.0 million aggregate principal amount of the 5¾% Senior Notes. The 5¾% Senior Notes are unsecured and were issued to investors at par. The 5¾% Senior Notes mature on February 15, 2021. Interest on the 5¾% Senior Notes accrues at 5¾% per annum, paid every six months on February 15 th and August 15 th . (See "Registration Rights" below). The 5¾% Senior Notes were issued pursuant to the 5¾% Senior Notes Indenture, dated as of February 8, 2013 (the “Notes Closing Date”), by and among Products Corporation, Products Corporation’s domestic subsidiaries (the “Guarantors”), which also currently guarantee Products Corporation’s Amended Term Loan Facility and Amended Revolving Credit Facility, and U.S. Bank National Association, as trustee. The Guarantors issued guarantees (the “Guarantees”) of Products Corporation’s obligations under the 5¾% Senior Notes and the 5¾% Senior Notes Indenture on a joint and several, senior unsecured basis. The Colomer U.S. Subsidiaries became additional guarantors in January 2014 and the New U.S. Subsidiaries became additional guarantors in January and May 2015, in each case under Products Corporation's Amended Term Loan Facility and Amended Revolving Credit Facility and the 5¾% Senior Notes Indenture. In December 2013, Products Corporation consummated an offer to exchange the original 5¾% Senior Notes for $500 million of new 5¾% Senior Notes, which have substantially the same terms as the original 5¾% Senior Notes, except that they are registered under the Securities Act (such registered new notes being the “5¾% Senior Notes”). See "Registration Rights" below for further discussion. Products Corporation used a portion of the $491.2 million of net proceeds from the issuance of the 5¾% Senior Notes (net of underwriters' fees) to repay and redeem all of the $330.0 million outstanding aggregate principal amount of its 9¾% Senior Secured Notes, as well as to pay $8.6 million of accrued interest. Products Corporation incurred an aggregate of $19.4 million of fees for the applicable redemption and tender offer premiums, related fees and expenses in connection with redemption and repayment of the 9¾% Senior Secured Notes and other fees and expenses in connection with the issuance of the 5¾% Senior Notes. Products Corporation used a portion of the remaining proceeds from the issuance of the 5¾% Senior Notes, together with existing cash, to pay approximately $113.0 million of principal on its 2011 Term Loan in conjunction with the February 2013 Term Loan Amendments. Products Corporation used the remaining balance available from the issuance of the 5¾% Senior Notes for general corporate purposes, including, without limitation, debt reduction transactions, such as repaying to Revlon, Inc. at maturity on October 8, 2013 the Contributed Loan, which Revlon, Inc. used to pay the liquidation preference of Revlon, Inc.'s then outstanding Series A Preferred Stock, with a par value of $0.01 per share (the "Series A Preferred Stock") in connection with its mandatory redemption on such date. Ranking The 5¾% Senior Notes are Products Corporation’s unsubordinated, unsecured obligations and rank senior in right of payment to any future subordinated obligations of Products Corporation and rank pari passu in right of payment with all existing and future senior debt of Products Corporation. Similarly, each Guarantee is the relevant Guarantor’s joint and several, unsubordinated and unsecured obligation and ranks senior in right of payment to any future subordinated obligations of such Guarantor and ranks pari passu in right of payment with all existing and future senior debt of such Guarantor. The Guarantees were issued on a joint and several basis. The 5¾% Senior Notes and the Guarantees rank effectively junior to Products Corporation’s Amended Term Loan Facility and Amended Revolving Credit Facility, which are secured, as well as indebtedness and preferred stock of Products Corporation’s foreign and immaterial subsidiaries (the “Non-Guarantor Subsidiaries”), none of which guarantee the 5¾% Senior Notes. Optional Redemption The 5¾% Senior Notes may be redeemed at Products Corporation's option, at any time as a whole, or from time to time in part, at the following redemption prices (expressed as percentages of principal amount), plus accrued interest to the date of redemption, if redeemed during the 12-month period beginning on February 15 th of the years indicated below: Year Percentage 2016 104.313 % 2017 102.875 % 2018 101.438 % 2019 and thereafter 100.000 % Change of Control Upon the occurrence of specified change of control events, Products Corporation is required to make an offer to purchase all of the 5¾% Senior Notes at a purchase price of 101% of the outstanding principal amount of the 5¾% Senior Notes as of the date of any such repurchase, plus accrued and unpaid interest to the date of repurchase. Certain Covenants The 5¾% Senior Notes Indenture limits Products Corporation’s and the Guarantors’ ability, and the ability of certain other subsidiaries, to: • incur or guarantee additional indebtedness (“Limitation on Debt”); • pay dividends, make repayments on indebtedness that is subordinated in right of payment to the 5¾% Senior Notes and make other “restricted payments” (“Limitation on Restricted Payments”); • make certain investments; • create liens on their assets to secure debt; • enter into transactions with affiliates; • merge, consolidate or amalgamate with another company (“Successor Company”); • transfer and sell assets (“Limitation on Asset Sales”); and • permit restrictions on the payment of dividends by Products Corporation’s subsidiaries (“Limitation on Dividends from Subsidiaries”). These covenants are subject to important qualifications and excep |
FAIR VALUE MEASUREMENTS - Q2
FAIR VALUE MEASUREMENTS - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | ||
FAIR VALUE MEASUREMENTS | 9. FAIR VALUE MEASUREMENTS Assets and liabilities are required to be categorized into three levels of fair value based upon the assumptions used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing the fair value measurement of assets and liabilities are as follows: • Level 1: Fair valuing the asset or liability using observable inputs, such as quoted prices in active markets for identical assets or liabilities; • Level 2: Fair valuing the asset or liability using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and • Level 3: Fair valuing the asset or liability using unobservable inputs that reflect the Company’s own assumptions regarding the applicable asset or liability. As of June 30, 2016 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 1.1 $ — $ 1.1 $ — Total assets at fair value $ 1.1 $ — $ 1.1 $ — Liabilities: Derivatives: FX Contracts (a) $ 1.8 $ — $ 1.8 $ — 2013 Interest Rate Swap (b) 7.6 — 7.6 — Total liabilities at fair value $ 9.4 $ — $ 9.4 $ — As of December 31, 2015 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 2.0 $ — $ 2.0 $ — Total assets at fair value $ 2.0 $ — $ 2.0 $ — Liabilities: Derivatives: FX Contracts (a) $ 0.6 $ — $ 0.6 $ — 2013 Interest Rate Swap (b) $ 6.5 $ — $ 6.5 $ — Total liabilities at fair value $ 7.1 $ — $ 7.1 $ — (a) The fair value of the Company’s foreign currency forward exchange contracts ("FX Contracts") was measured based on observable market transactions for similar transactions in actively quoted markets of spot and forward rates on the respective dates. See Note 10, “Financial Instruments," to the Unaudited Consolidated Financial Statements in this Form 10-Q. (b) The fair value of the Company's 2013 Interest Rate Swap (as hereinafter defined) was measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve on the respective dates. See Note 10, “Financial Instruments.” As of June 30, 2016 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,793.2 $ — $ 1,793.2 $ 1,790.4 As of December 31, 2015 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,818.0 $ — $ 1,818.0 $ 1,813.7 The fair value of the Company's long-term debt, including the current portion of long-term debt, is based on quoted market prices for similar issues and maturities. The carrying amounts of cash and cash equivalents, trade receivables, notes receivable, accounts payable and short-term borrowings approximate their respective fair values. | 12. FAIR VALUE MEASUREMENTS Assets and liabilities are required to be categorized into three levels of fair value based upon the assumptions used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing the fair value measurement of assets and liabilities are as follows: • Level 1: Fair valuing the asset or liability using observable inputs, such as quoted prices in active markets for identical assets or liabilities; • Level 2: Fair valuing the asset or liability using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and • Level 3: Fair valuing the asset or liability using unobservable inputs that reflect the Company’s own assumptions regarding the applicable asset or liability. As of December 31, 2015 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 2.0 $ — $ 2.0 $ — Total assets at fair value $ 2.0 $ — $ 2.0 $ — Liabilities: Derivatives: FX Contracts (a) $ 0.6 $ — $ 0.6 $ — 2013 Interest Rate Swap (b) 6.5 — 6.5 — Total liabilities at fair value $ 7.1 $ — $ 7.1 $ — As of December 31, 2014 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 0.2 $ — $ 0.2 $ — Total assets at fair value $ 0.2 $ — $ 0.2 $ — Liabilities: Derivatives: 2013 Interest Rate Swap (b) $ 3.5 $ — $ 3.5 $ — Total liabilities at fair value $ 3.5 $ — $ 3.5 $ — (a) The fair value of the Company’s foreign currency forward exchange contracts ("FX Contracts") was measured based on observable market transactions for similar transactions in actively quoted markets of spot and forward rates on the respective dates. See Note 13, “Financial Instruments.” (b) The fair value of the Company's 2013 Interest Rate Swap was measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve on the respective dates. See Note 13, “Financial Instruments.” As of December 31, 2015 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,818.0 $ — $ 1,818.0 $ 1,833.7 As of December 31, 2014 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,844.0 $ — $ 1,844.0 $ 1,863.9 The fair value of the Company's long-term debt, including the current portion of long-term debt, is based on quoted market prices for similar issues and maturities. The carrying amounts of cash and cash equivalents, trade receivables, notes receivable, accounts payable and short-term borrowings approximate their respective fair values. |
FINANCIAL INSTRUMENTS - Q2
FINANCIAL INSTRUMENTS - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Financial Instruments [Abstract] | ||
FINANCIAL INSTRUMENTS | 10. FINANCIAL INSTRUMENTS Products Corporation maintains standby and trade letters of credit for various corporate purposes under which Products Corporation is obligated, of which $8.3 million and $8.8 million (including amounts available under credit agreements in effect at that time) were maintained at June 30, 2016 and December 31, 2015 , respectively. Included in these amounts are approximately $7.2 million and $7.5 million at June 30, 2016 and December 31, 2015 , respectively, in standby letters of credit that support Products Corporation’s self-insurance programs. The estimated liability under such programs is accrued by Products Corporation. Derivative Financial Instruments The Company uses derivative financial instruments, primarily: (i) FX Contracts, intended for the purpose of managing foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on the Company’s net cash flows; and (ii) interest rate hedging transactions, such as the 2013 Interest Rate Swap referred to below, intended for the purpose of managing interest rate risk associated with Products Corporation’s variable rate indebtedness. Foreign Currency Forward Exchange Contracts The FX Contracts are entered into primarily to hedge the anticipated net cash flows resulting from inventory purchases and intercompany payments denominated in currencies other than the local currencies of the Company’s foreign and domestic operations and generally have maturities of less than one year. The U.S. Dollar notional amount of the FX Contracts outstanding at June 30, 2016 and December 31, 2015 was $74.2 million and $76.3 million , respectively. Interest Rate Swap Transaction In November 2013, Products Corporation executed a forward-starting floating-to-fixed interest rate swap transaction with a 1.00% floor, based on a notional amount of $400 million in respect of indebtedness under the Acquisition Term Loan over a period of three years (the "2013 Interest Rate Swap"). The Company designated the 2013 Interest Rate Swap as a cash flow hedge of the variability of the forecasted three-month LIBOR interest rate payments related to the $400 million notional amount under the Acquisition Term Loan over the three -year term of the 2013 Interest Rate Swap. Products Corporation receives from the counterparty a floating interest rate based on the higher of three-month USD LIBOR or 1.00% , while paying a fixed interest rate payment to the counterparty equal to 2.0709% (which effectively fixes the interest rate on such notional amount at 5.0709% over the three -year term of the 2013 Interest Rate Swap). For the six months ended June 30, 2016 , the 2013 Interest Rate Swap was deemed effective and therefore the changes in fair value related to the 2013 Interest Rate Swap have been recorded in Other Comprehensive Loss. As of June 30, 2016 , the balance of deferred net losses on derivatives included in accumulated other comprehensive loss was $4.5 million after-tax. (See " Quantitative Information – Derivative Financial Instruments " below). The Company expects that $2.6 million of the after-tax deferred net losses related to the 2013 Interest Rate Swap will be reclassified into earnings over the next 12 months as a result of transactions that are expected to occur over that period. The amount ultimately realized in earnings may differ, as LIBOR is subject to change. Realized gains and losses are ultimately determined by actual rates at maturity of the derivative. Credit Risk Exposure to credit risk in the event of nonperformance by any of the counterparties is limited to the gross fair value of the derivative instruments in asset positions, which totaled $1.1 million and $2.0 million as of June 30, 2016 and December 31, 2015, respectively. The Company attempts to minimize exposure to credit risk by generally entering into derivative contracts with counterparties that have investment-grade credit ratings and are major financial institutions. The Company also periodically monitors any changes in the credit ratings of its counterparties. Given the current credit standing of the Company's counterparties to its derivative instruments, the Company believes that the risk of loss under these derivative instruments arising from any non-performance by any of the counterparties is remote. Quantitative Information – Derivative Financial Instruments The effects of the Company’s derivative instruments on its Consolidated Financial Statements were as follows: (a) Fair Values of Derivative Financial Instruments in the Consolidated Balance Sheets: Fair Values of Derivative Instruments Assets Liabilities Balance Sheet June 30, December 31, Balance Sheet June 30, December 31, Classification Fair Value Fair Value Classification Fair Value Fair Value Derivatives designated as hedging instruments: 2013 Interest Rate Swap (i) Prepaid expenses and other $ — $ — Accrued expenses and other $ 4.2 $ 4.0 Other assets — — Other long-term liabilities 3.4 2.5 Derivatives not designated as hedging instruments: FX Contracts (ii) Prepaid expenses and other $ 1.1 $ 2.0 Accrued Expenses $ 1.8 $ 0.6 (i) The fair values of the 2013 Interest Rate Swap at June 30, 2016 and December 31, 2015 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at June 30, 2016 and December 31, 2015 , respectively. (ii) The fair values of the FX Contracts at June 30, 2016 and December 31, 2015 were measured based on observable market transactions of spot and forward rates at June 30, 2016 and December 31, 2015 , respectively. (b) Effects of Derivative Financial Instruments on the Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2016 and 2015 : Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Derivatives designated as hedging instruments: 2013 Interest Rate Swap, net of tax (a) $ 0.2 $ (0.1 ) $ (0.7 ) $ (2.0 ) (a) Net of tax expense (benefit) of $0.1 million and nil for the three months ended June 30, 2016 and 2015, respectively, and $(0.4) million and $(1.2) million for the six months ended June 30, 2016 and 2015, respectively. Income Statement Classification Amount of Gain (Loss) Recognized in Net Income Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Derivatives designated as hedging instruments: 2013 Interest Rate Swap Interest Expense $ (1.1 ) $ (0.5 ) $ (2.2 ) $ (0.5 ) Derivatives not designated as hedging instruments: FX Contracts Foreign currency gain (loss), net $ 0.3 $ 0.4 $ (0.5 ) $ 0.9 | 13. FINANCIAL INSTRUMENTS Products Corporation maintains standby and trade letters of credit for various corporate purposes under which Products Corporation is obligated, of which $8.8 million and $9.0 million (including amounts available under credit agreements in effect at that time) were maintained at December 31, 2015 and December 31, 2014 , respectively. Included in these amounts are approximately $7.5 million and $7.7 million at December 31, 2015 and December 31, 2014 , respectively, in standby letters of credit that support Products Corporation’s self-insurance programs. The estimated liability under such programs is accrued by Products Corporation. Derivative Financial Instruments The Company uses derivative financial instruments, primarily: (i) FX Contracts, intended for the purpose of managing foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on the Company’s net cash flows; and (ii) interest rate hedging transactions, such as the 2013 Interest Rate Swap referred to below, intended for the purpose of managing interest rate risk associated with Products Corporation’s variable rate indebtedness. Foreign Currency Forward Exchange Contracts The FX Contracts are entered into primarily to hedge the anticipated net cash flows resulting from inventory purchases and intercompany payments denominated in currencies other than the local currencies of the Company’s foreign and domestic operations and generally have maturities of less than one year. The U.S. Dollar notional amount of the FX Contracts outstanding at December 31, 2015 and December 31, 2014 was $76.3 million and $7.6 million , respectively. Interest Rate Swap Transaction In November 2013, Products Corporation executed a forward-starting floating-to-fixed interest rate swap transaction with a 1.00% floor, based on a notional amount of $400 million in respect of indebtedness under the Acquisition Term Loan over a period of three years (the "2013 Interest Rate Swap"). The Company designated the 2013 Interest Rate Swap as a cash flow hedge of the variability of the forecasted three-month LIBOR interest rate payments related to the $400 million notional amount under the Acquisition Term Loan over the three -year term of the 2013 Interest Rate Swap. Commencing in May 2015, Products Corporation receives from the counterparty a floating interest rate based on the higher of three-month USD LIBOR or 1.00% , while paying a fixed interest rate payment to the counterparty equal to 2.0709% (which effectively fixes the interest rate on such notional amount at 5.0709% over the three -year term of the 2013 Interest Rate Swap). For 2015, the 2013 Interest Rate Swap was deemed effective and therefore the changes in fair value related to the 2013 Interest Rate Swap have been recorded in Other Comprehensive Loss. As of December 31, 2015 , the balance of deferred net losses on derivatives included in accumulated other comprehensive loss was $3.8 million after-tax. (See " Quantitative Information – Derivative Financial Instruments " below). The Company expects that $2.4 million of the after-tax deferred net losses related to the 2013 Interest Rate Swap will be reclassified into earnings over the next 12 months as a result of transactions that are expected to occur over that period. The amount ultimately realized in earnings may differ, as LIBOR is subject to change. Realized gains and losses are ultimately determined by actual rates at maturity of the derivative. Credit Risk Exposure to credit risk in the event of nonperformance by any of the counterparties is limited to the gross fair value of the derivative instruments in asset positions, which totaled $2.0 million and $0.2 million as of December 31, 2015 and December 31, 2014, respectively. The Company attempts to minimize exposure to credit risk by generally entering into derivative contracts with counterparties that have investment-grade credit ratings and are major financial institutions. The Company also periodically monitors any changes in the credit ratings of its counterparties. Given the current credit standing of the Company's counterparties to its derivative instruments, the Company believes that the risk of loss under these derivative instruments arising from any non-performance by any of the counterparties is remote. Quantitative Information – Derivative Financial Instruments The effects of the Company’s derivative instruments on its Consolidated Financial Statements were as follows: (a) Fair Values of Derivative Financial Instruments in the Consolidated Balance Sheets: Fair Values of Derivative Instruments Assets Liabilities Balance Sheet December 31, December 31, Balance Sheet December 31, December 31, Classification Fair Value Fair Value Classification Fair Value Fair Value Derivatives designated as hedging instruments: 2013 Interest Rate Swap (i) Prepaid expenses and other $ — $ — Accrued expenses and other $ 4.0 $ 2.1 Other assets — — Other long-term liabilities 2.5 1.4 Derivatives not designated as hedging instruments: FX Contracts (ii) Prepaid expenses and other $ 2.0 $ 0.2 Accrued Expenses $ 0.6 $ — (i) The fair values of the 2013 Interest Rate Swap at December 31, 2015 and December 31, 2014 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at December 31, 2015 and December 31, 2014 , respectively. (ii) The fair values of the FX Contracts at December 31, 2015 and December 31, 2014 were measured based on observable market transactions of spot and forward rates at December 31, 2015 and December 31, 2014 , respectively. (b) Effects of Derivative Financial Instruments on the Consolidated Statements of Income and Comprehensive Income (Loss) for each of 2015, 2014 and 2013: Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Year Ended December 31, 2015 2014 2013 Derivatives designated as hedging instruments: 2013 Interest Rate Swap, net of tax (a) $ (1.6 ) $ (3.7 ) $ 1.5 (a) Net of tax (benefit) expense of $(1.0) million , $(2.3) million and $1.0 million for each of 2015, 2014 and 2013, respectively. Income Statement Classification Amount of Gain (Loss) Recognized in Net Income Year Ended December 31, 2015 2014 2013 Derivatives designated as hedging instruments: 2013 Interest Rate Swap Interest Expense $ (2.6 ) $ — $ — Derivatives not designated as hedging instruments: FX Contracts Foreign currency gain, net $ 3.8 $ 0.5 $ 2.2 |
PENSION AND POST-RETIREMENT BEN
PENSION AND POST-RETIREMENT BENEFITS - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Pension and Post-Retirement Benefits [Abstract] | ||
PENSION AND POST-RETIREMENT BENEFITS | 11. PENSION AND POST-RETIREMENT BENEFITS The components of net periodic benefit (income) costs for the Company’s pension and the other post-retirement benefit plans for the second quarter of 2016 and 2015 are as follows: Other Three Months Ended June 30, 2016 2015 2016 2015 Net periodic benefit (income) costs: Service cost $ 0.2 $ 0.2 $ — $ — Interest cost 5.1 7.1 0.1 0.1 Expected return on plan assets (7.8 ) (10.2 ) — — Amortization of actuarial loss 2.3 2.1 0.1 0.1 (0.2 ) (0.8 ) 0.2 0.2 Portion allocated to Revlon Holdings (0.1 ) (0.1 ) — — $ (0.3 ) $ (0.9 ) $ 0.2 $ 0.2 The components of net periodic benefit (income) costs for the Company's pension and the other post-retirement benefit plans for the first six months of 2016 and 2015 are as follows: Other Six Months Ended June 30, 2016 2015 2016 2015 Net periodic benefit (income) costs: Service cost $ 0.3 $ 0.4 $ — $ — Interest cost 10.3 14.3 0.2 0.2 Expected return on plan assets (15.6 ) (20.3 ) — — Amortization of actuarial loss 4.4 4.1 0.1 0.1 (0.6 ) (1.5 ) 0.3 0.3 Portion allocated to Revlon Holdings (0.1 ) (0.1 ) — — $ (0.7 ) $ (1.6 ) $ 0.3 $ 0.3 In the three and six months ended June 30, 2016, the Company recognized net periodic benefit income of $0.1 million and $0.4 million , respectively, compared to net periodic benefit income of $0.7 million and $1.3 million in the three and six months ended June 30, 2015, primarily due to the lower expected return on plan assets, partially offset by lower interest cost as a result of the Company's adoption of the alternative approach to calculating the service and interest components of net periodic benefit cost for pension and other post-retirement benefits (the “full yield curve” approach) which was adopted by the Company at December 31, 2015. Net periodic benefit costs (income) are reflected in the Company's Consolidated Financial Statements as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net periodic benefit (income) costs: Cost of sales $ (0.5 ) $ (1.0 ) $ (1.3 ) $ (2.0 ) Selling, general and administrative expense 0.4 0.3 0.9 0.7 $ (0.1 ) $ (0.7 ) $ (0.4 ) $ (1.3 ) The Company expects that it will have net periodic benefit income of approximately $ 1 million for its pension and other post-retirement benefit plans for all of 2016, compared with net periodic benefit cost of $ 18.8 million in 2015. During the second quarter of 2016 , $1.4 million and $0.3 million were contributed to the Company’s pension plans and other post-retirement benefit plans, respectively. During the first six months of 2016 , $ 3.1 million and $ 0.5 million were contributed to the Company’s pension plans and other post-retirement benefit plans, respectively. During 2016, the Company expects to contribute approximately $10 million in the aggregate to its pension and other post-retirement benefit plans. Relevant aspects of the qualified defined benefit pension plans, nonqualified pension plans and other post-retirement benefit plans sponsored by Products Corporation are disclosed in Note 14, "Savings Plan, Pension and Post-Retirement Benefits," to the Consolidated Financial Statements in the Company's 2015 Form 10-K. | 14. SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS Savings Plan: The Company offers a qualified defined contribution plan for its U.S.-based employees, the Revlon Employees' Savings, Investment and Profit Sharing Plan (as amended, the "Savings Plan"), which allows eligible participants to contribute up to 25% , and highly compensated participants to contribute up to 6% , of eligible compensation through payroll deductions, subject to certain annual dollar limitations imposed by the Internal Revenue Service (the "IRS"). The Company matches employee contributions at fifty cents for each dollar contributed up to the first 6% of eligible compensation. The Company made cash matching contributions to the Savings Plan of $2.5 million during 2015 and $2.4 million during each of 2014 and 2013, respectively. The Company also offers a non-qualified defined contribution plan (the “Excess Savings Plan”) providing benefits for certain U.S. employees who are in excess of IRS limitations. These non-qualified defined contribution benefits are funded from the Company's general assets. The Company’s qualified and non-qualified defined contribution savings plans for its U.S.-based employees contain a discretionary profit sharing component that enables the Company, should it elect to do so, to make discretionary profit sharing contributions. For 2015, the Company made discretionary profit sharing contributions to the Savings Plan and Excess Savings Plan of $4.8 million (of which $3.7 million was paid in 2015 and $1.1 million was paid in January 2016), or 3% of eligible compensation, which was credited on a quarterly basis. For 2014, the Company made discretionary profit sharing contributions to the Savings Plan and Excess Savings Plan of $4.0 million (of which $3.1 million was paid in 2014 and $0.9 million was paid in January 2015), or 3% of eligible compensation, which was credited on a quarterly basis. In 2013, the Company made discretionary profit sharing contributions to the Savings Plan and Excess Savings Plan of $4.1 million (of which $3.2 million was paid in 2013 and $0.9 million was paid in January 2014), or 3% of eligible compensation, which was credited on a quarterly basis. Pension Benefits: In 2009, Products Corporation’s U.S. qualified defined benefit pension plan (the Revlon Employees’ Retirement Plan, which covered a substantial portion of the Company's employees in the U.S.) and its non-qualified pension plan (the Revlon Pension Equalization Plan) were amended to cease future benefit accruals under such plans after December 31, 2009. No additional benefits have accrued since December 31, 2009, other than interest credits on participant account balances under the cash balance program of the Company’s U.S. pension plans. Also, service credits for vesting and early retirement eligibility will continue to accrue in accordance with the terms of the respective plans. In 2010, the Company amended its Canadian defined benefit pension plan (the Affiliated Revlon Companies Employment Plan) to reduce future benefit accruals under such plan after December 31, 2010. Additionally, while the Company closed its U.K. defined pension plan to new entrants in 2002, then-existing participants continue to accrue pension benefits. Effective December 31, 2012, Products Corporation merged two of its U.S. qualified defined benefit pension plans; therefore, as of December 31, 2012, Products Corporation sponsors two U.S. qualified defined benefit pension plans. The Company also has non-qualified pension plans that provide benefits for certain U.S. and non-U.S. employees, and for U.S. employees in excess of IRS limitations in the U.S. and in certain limited cases contractual benefits for certain former officers of the Company. These non-qualified plans are funded from the Company's general assets. In the fourth quarter of 2015, the Company offered certain former employees who had vested benefits in the Revlon Employees’ Retirement Plan the option of receiving the present value of the participant’s pension benefit in a one-time cash lump sum payment, an annuity form of benefit or the ability to maintain their deferred vested status in the pension plan. Based upon the participants' acceptance of that offer, $53.4 million was paid from the plan's assets in December 2015, with a corresponding decrease in the plan's benefit obligation. As a result of such program, the Company recorded a $20.7 million charge as a result of the pension lump sum settlement in the fourth quarter of 2015. This charge was included in cost of sales and SG&A expenses. Other Post-retirement Benefits: The Company previously sponsored an unfunded retiree benefit plan, which provides death benefits payable to beneficiaries of a very limited number of former employees. Participation in this plan was limited to participants enrolled as of December 31, 1993. The Company also administers an unfunded medical insurance plan on behalf of Revlon Holdings, certain costs of which have been apportioned to Revlon Holdings under the transfer agreements among Revlon, Inc., Products Corporation and MacAndrews & Forbes. (See Note 20, “Related Party Transactions - Transfer Agreements”). The following table provides an aggregate reconciliation of the projected benefit obligations, plan assets, funded status and amounts recognized in the Company’s Consolidated Financial Statements related to the Company's significant pension and other post-retirement benefit plans. Pension Plans Other Post-Retirement Benefit Plans December 31, 2015 2014 2015 2014 Change in Benefit Obligation: Benefit obligation - beginning of year $ (761.7 ) $ (668.2 ) $ (12.9 ) $ (14.4 ) Service cost (0.7 ) (0.8 ) — — Interest cost (28.6 ) (30.1 ) (0.5 ) (0.5 ) Actuarial gain (loss) 44.4 (108.0 ) (0.4 ) (0.2 ) Lump sum settlement 53.4 — — — Other pension settlements 0.8 — — — Benefits paid 38.3 41.0 0.8 0.7 Foreign currency translation adjustments 4.7 4.4 — — Other — — — 1.5 Benefit obligation - end of year $ (649.4 ) $ (761.7 ) $ (13.0 ) $ (12.9 ) Change in Plan Assets: Fair value of plan assets - beginning of year $ 567.7 $ 557.6 $ — $ — Actual return on plan assets (13.9 ) 37.6 — — Employer contributions 17.3 18.2 0.8 0.7 Lump sum settlement (53.4 ) — — — Other pension settlements (0.8 ) — — — Benefits paid (38.3 ) (41.0 ) (0.8 ) (0.7 ) Foreign currency translation adjustments (4.7 ) (4.7 ) — — Fair value of plan assets - end of year $ 473.9 $ 567.7 $ — $ — Unfunded status of plans at December 31, $ (175.5 ) $ (194.0 ) $ (13.0 ) $ (12.9 ) In respect of the Company's pension plans and other post-retirement benefit plans, amounts recognized in the Company’s Consolidated Balance Sheets at December 31, 2015 and 2014 consist of the following: Pension Plans Other Post-Retirement Benefit Plans December 31, 2015 2014 2015 2014 Other long-term assets $ 3.6 $ 0.8 $ — $ — Accrued expenses and other $ (6.0 ) $ (6.1 ) $ (0.8 ) $ (0.7 ) Pension and other post-retirement benefit liabilities (173.1 ) (188.7 ) (12.2 ) (12.2 ) Total liability (175.5 ) (194.0 ) (13.0 ) (12.9 ) Accumulated other comprehensive loss, gross 258.0 277.6 2.8 2.5 Income tax (benefit) expense (41.9 ) (43.7 ) (0.1 ) 0.1 Portion allocated to Revlon Holdings (0.9 ) (1.0 ) (0.2 ) (0.2 ) Accumulated other comprehensive loss, net $ 215.2 $ 232.9 $ 2.5 $ 2.4 With respect to the above accrued expenses and other, the Company has recorded receivables from affiliates of $3.0 million and $3.1 million at December 31, 2015 and 2014, respectively, relating to pension plan liabilities retained by such affiliates. The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the Company's pension plans are as follows: December 31, 2015 2014 Projected benefit obligation $ 649.4 $ 761.7 Accumulated benefit obligation 649.0 761.0 Fair value of plan assets 473.9 567.7 Net Periodic Benefit Cost: The components of net periodic benefit (income) costs for the Company’s pension and the other post-retirement benefit plans are as follows: Other Year Ended December 31, 2015 2014 2013 2015 2014 2013 Net periodic benefit (income) costs: Service cost $ 0.7 $ 0.8 $ 0.9 $ — $ — $ — Interest cost 28.6 30.1 27.6 0.5 0.5 0.6 Expected return on plan assets (40.3 ) (41.3 ) (38.3 ) — — — Amortization of actuarial loss 8.4 4.5 8.6 0.1 0.1 0.4 Lump sum settlement charge 20.7 — — — — — Other pension settlements charge 0.3 — — — — — 18.4 (5.9 ) (1.2 ) 0.6 0.6 1.0 Portion allocated to Revlon Holdings (0.1 ) (0.1 ) (0.1 ) (0.1 ) — (0.1 ) $ 18.3 $ (6.0 ) $ (1.3 ) $ 0.5 $ 0.6 $ 0.9 For 2015, the Company recognized net periodic benefit cost of $18.8 million , compared to net periodic benefit income of $(5.4) million in 2014, primarily due to the pension lump sum settlement charge recorded in the fourth quarter of 2015 and higher amortization of actuarial losses. For 2014, the Company recognized net periodic benefit income of $(5.4) million , as compared to $(0.4) million in 2013, primarily due to an increase in the fair value of pension plan assets at December 31, 2014, as well as lower amortization of actuarial losses. Net periodic benefit costs (income) are reflected in the Company's Consolidated Financial Statements as follows: Year Ended December 31, 2015 2014 Net periodic benefit (income) costs: Cost of sales $ 6.1 $ (4.2 ) Selling, general and administrative expense 12.7 (0.7 ) Inventories — (0.5 ) $ 18.8 $ (5.4 ) Amounts recognized in accumulated other comprehensive loss at December 31, 2015 in respect of the Company’s pension plans and other post-retirement plans, which have not yet been recognized as a component of net periodic benefit cost, are as follows: Pension Benefits Post-Retirement Benefits Total Net actuarial loss $ 258.0 $ 2.8 $ 260.8 Prior service cost — — — Accumulated Other Comprehensive Loss, Gross 258.0 2.8 260.8 Income tax (benefit) expense (41.9 ) (0.1 ) (42.0 ) Portion allocated to Revlon Holdings (0.9 ) (0.2 ) (1.1 ) Accumulated Other Comprehensive Loss, Net $ 215.2 $ 2.5 $ 217.7 The total actuarial losses and prior service costs in respect of the Company’s pension plans and other post-retirement plans included in accumulated other comprehensive loss at December 31, 2015 and expected to be recognized in net periodic benefit cost during the fiscal year ended December 31, 2016, is $8.5 million and $0.2 million , respectively. Pension Plan Assumptions: The following weighted average assumptions were used to determine the Company’s projected benefit obligation of the Company’s U.S. and International pension plans at the end of the respective years: U.S. Plans International Plans 2015 2014 2015 2014 Discount rate 4.15 % 3.89 % 3.68 % 3.74 % Rate of future compensation increases 3.50 % 3.00 % 2.22 % 2.33 % The following weighted average assumptions were used to determine the Company’s net periodic benefit (income) cost of the Company’s U.S. and International pension plans during the respective years: U.S. Plans International Plans 2015 2014 2013 2015 2014 2013 Discount rate 3.89 % 4.68 % 3.78 % 3.74 % 4.48 % 4.33 % Expected long-term return on plan assets 7.50 % 7.75 % 7.75 % 6.00 % 6.00 % 6.00 % Rate of future compensation increases 3.00 % 3.00 % 3.00 % 2.33 % 3.40 % 2.97 % As of December 31, 2015, the Company adopted the “full yield curve” method as an alternative approach to calculating the service and interest components of net periodic benefit cost for the Company's pension and other post-retirement benefits. Under the "full yield curve" method, the discount rate assumption was built through the application of specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows for each of the Company's pension and other post-retirement plans. Prior to December 31, 2015, the Company estimated the service and interest cost components utilizing a single weighted average discount rate derived from the yield curve used to measure the projected benefit obligation at the beginning of the period. This change does not affect the measurement of the Company's total projected benefit obligations, as the change in service and interest costs is exactly offset in the actuarial loss (gain) recognized for each year. The Company made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. The change to the "full yield curve" method was accounted for as a change in accounting estimate that is inseparable from a change in accounting principle, and accordingly, has been accounted for prospectively. In selecting its expected long-term rate of return on its pension plan assets, the Company considers a number of factors, including, without limitation, recent and historical performance of pension plan assets, the pension plan portfolios' asset allocations over a variety of time periods compared with third-party studies, the performance of the capital markets in recent years and other factors, as well as advice from various third parties, such as the pension plans' advisors, investment managers and actuaries. While the Company considered both the recent performance and the historical performance of pension plan assets, the Company’s assumptions are based primarily on its estimates of long-term, prospective rates of return. Using the aforementioned methodologies, the Company selected a 7.50% and 6.00% weighted average long-term rate of return on plan assets assumption during 2015 for the U.S. and International pension plans, respectively. Differences between actual and expected asset returns are recognized in the net periodic benefit cost over the remaining service period of the active participating employees. The rate of future compensation increases is an assumption used by the actuarial consultants for pension accounting and is determined based on the Company’s current expectation for such increases. Investment Policy: The Investment Committee for the Company's U.S. pension plans (the “Investment Committee”) has adopted (and revises from time to time) an investment policy for the Company's U.S. pension plans with the objective of realizing a long-term rate of return on pension plan assets that meets or exceeds, over time, the expected long-term rate of return on plan assets assumption, weighed against a reasonable risk level. In connection with this objective, the Investment Committee retains a professional investment advisor who recommends investment managers that invest plan assets in the following asset classes: common and preferred stock, mutual funds, fixed income securities, common and collective funds, hedge funds, group annuity contracts and cash and other investments. The Company’s international plans follow a similar methodology in conjunction with local actuarial consultants and asset managers. The investment policy adopted by the Investment Committee provides for investments in a broad range of publicly-traded securities, among other things. The investments are in domestic and international stocks, ranging from small to large capitalization stocks, debt securities ranging from domestic and international treasury issues, corporate debt securities, mortgages and asset-backed issues. Other investments may include cash and cash equivalents and hedge funds. The investment policy also allows for investments in private equity funds that are not covered in investments described above, provided that the Investment Committee approves any such investments prior to their selection. Also, global balanced strategies are utilized to provide for investments in a broad range of publicly-traded stocks and bonds in both domestic and international markets, as described above. In addition, the global balanced strategies can include commodities, provided that the Investment Committee approves any such investments prior to their selection. The Investment Committee’s investment policy does not allow the use of derivatives for speculative purposes, but such policy does allow its investment managers to use derivatives for the purpose of reducing risk exposures or to replicate exposures of a particular asset class. The Company’s U.S. and international pension plans have target asset allocation ranges which are intended to be flexible guidelines for allocating the plans’ assets among various classes of assets. These target ranges are reviewed periodically and considered for readjustment when an asset class weighting is outside of its target range (recognizing that these are flexible target ranges that may vary from time to time) with the objective of meeting or exceeding the expected long-term rate of return on plan assets assumption, weighed against a reasonable risk level. The target ranges per asset class are as follows: Target Ranges U.S. Plans International Plans Asset Class: Common and preferred stock 0% - 10% — Mutual funds 20% - 30% — Fixed income securities 10% - 30% — Common and collective funds 25% - 55% 100% Hedge funds 0% - 15% — Group annuity contract 0% - 5% — Cash and other investments 0% - 10% — Fair Value of Pension Plan Assets: The following table presents information on the fair value of the Company's U.S. and international pension plan assets at December 31, 2015 and 2014: U.S. Plans International Plans 2015 2014 2015 2014 Fair value of plan assets $ 407.2 $ 496.1 $ 66.7 $ 71.6 The Company determines the fair values of the Company’s U.S. and international pension plan assets as follows: • Common and preferred stock: The fair values of investments included in the common and preferred stock asset class generally reflect the closing price reported on the major market where the individual securities are traded. The Company classifies common and preferred stock investments within Level 1 of the fair value hierarchy. • Mutual funds: The fair values of investments included in the mutual funds asset class are determined using net asset value (“NAV”) provided by the applicable fund administrators. The NAV is based on the closing price reported on the major market where the individual securities within the mutual fund are traded. The Company classifies mutual fund investments within Level 1 of the fair value hierarchy. • Fixed income securities: The fair values of investments included in the fixed income securities asset class are based on a compilation of primarily observable market information and/or broker quotes. The Company classifies fixed income securities investments primarily within Level 2 of the fair value hierarchy. • Common and collective funds: The fair values of investments included in the common and collective funds asset class are determined using NAV provided by the applicable fund administrators. The NAV is based on the value of the underlying assets owned by the common and collective fund, minus its liabilities, and then divided by the number of shares outstanding. The Company classifies common and collective fund investments within Level 2 of the fair value hierarchy. • Hedge funds: The hedge fund asset class includes investments in hedge funds that, in turn, primarily invest in a grouping of equities, fixed income instruments, currencies, derivatives and/or commodities. The fair values of investments included in the hedge funds class are determined using NAV provided by the applicable fund administrators. The NAV is based on securities listed or quoted on a national securities exchange or market, or traded in the over-the-counter market, and is valued at the closing quotation posted by that exchange or trading system. Securities not listed or quoted on a national securities exchange or market are valued primarily through observable market information or broker quotes. The hedge fund investments generally can be sold on a quarterly or monthly basis and may employ leverage. The Company classifies hedge fund investments within Level 2 of the fair value hierarchy. • Group annuity contract: The group annuity contract asset class primarily invests in equities, corporate bonds and government bonds. The fair values of securities listed or quoted on a national securities exchange or market, or traded in the over-the-counter market, are valued at the closing quotation posted by that exchange or trading system. Securities not listed or quoted on a national securities exchange or market are valued primarily through observable market information or broker quotes. The Company classifies group annuity contract investments within Level 2 of the fair value hierarchy. • Cash and cash equivalents: Cash and cash equivalents are measured at cost, which approximates fair value. The Company classifies cash and cash equivalents within Level 1 of the fair value hierarchy. The fair values of the Company's U.S. and International pension plan assets at December 31, 2015 by asset category were as follows: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common and Preferred Stock: U.S. small/mid cap equity $ 14.6 $ 14.6 $ — $ — Mutual Funds (a) : Corporate bonds 14.9 14.9 — — Government bonds 12.9 12.9 — — U.S. large cap equity 0.7 0.7 — — International equities 3.0 3.0 — — Emerging markets international equity 5.1 5.1 — — Other 2.0 2.0 — — Fixed Income Securities: Corporate bonds 41.7 — 41.7 — Government bonds 6.9 — 6.9 — Common and Collective Funds (a) : Corporate bonds 61.5 — 61.5 — Government bonds 56.8 — 56.8 — U.S. large cap equity 71.9 — 71.9 — U.S. small/mid cap equity 15.5 — 15.5 — International equities 77.8 — 77.8 — Emerging markets international equity 14.5 — 14.5 — Cash and cash equivalents (0.8 ) 0.3 (1.1 ) — Other 5.5 — 5.5 — Hedge Funds (a) : Corporate bonds 3.8 — 3.8 — Government bonds 8.6 — 8.6 — U.S. large cap equity 3.8 — 3.8 — Cash and cash equivalents 4.6 — 4.6 — Other 32.1 — 32.1 — Group Annuity Contract 2.8 — 2.8 — Cash and cash equivalents 13.7 13.7 — — Fair value of plan assets at December 31, 2015 $ 473.9 $ 67.2 $ 406.7 $ — (a) The investments in mutual funds, common and collective funds and hedge funds are disclosed above within the respective underlying investments’ class (i.e., various equities, corporate bonds, government bonds and other investment classes), while the fair value hierarchy levels of the investments are based on the Company’s direct ownership unit of account. The fair values of the Company's U.S. and International pension plan assets at December 31, 2014 by asset category were as follows: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common and Preferred Stock: U.S. small/mid cap equity $ 20.5 $ 20.5 $ — $ — Mutual Funds (a) : Corporate bonds 17.5 17.5 — — Government bonds 13.6 13.6 — — U.S. large cap equity 68.5 68.5 — — International equities 7.3 7.3 — — Emerging markets international equity 6.1 6.1 — — Other 3.1 3.1 — — Fixed Income Securities: Corporate bonds 55.0 — 55.0 — Government bonds 10.9 — 10.9 — Common and Collective Funds (a) : Corporate bonds 75.4 — 75.4 — Government bonds 60.0 — 60.0 — U.S. large cap equity 24.3 — 24.3 — U.S. small/mid cap equity 21.0 — 21.0 — International equities 89.9 — 89.9 — Emerging markets international equity 17.6 — 17.6 — Cash and cash equivalents 3.7 — 3.7 — Other 3.1 — 3.1 — Hedge Funds (a) : Corporate bonds 6.8 — 6.8 — Government bonds (8.8 ) — (8.8 ) — U.S. large cap equity 9.1 — 9.1 — International equities 15.9 — 15.9 — Emerging markets international equity 4.1 — 4.1 — Cash and cash equivalents 26.8 — 26.8 — Other 4.2 — 4.2 — Group Annuity Contract 2.8 — 2.8 — Cash and cash equivalents 9.3 9.3 — — Fair value of plan assets at December 31, 2014 $ 567.7 $ 145.9 $ 421.8 $ — (a) The investments in mutual funds, common and collective funds and hedge funds are disclosed above within the respective underlying investments’ class (i.e., various equities, corporate bonds, government bonds and other investment classes), while the fair value hierarchy levels of the investments are based on the Company’s direct ownership unit of account. There were no transfers into Level 3 assets in the Company's U.S. and International pension plan's fair value hierarchy during 2015. The following table sets forth a summary of changes in the fair values of the Company's U.S. and International pension plans’ Level 3 assets for 2014: Total Fixed Income Securities Hedge Funds Balance, January 1, 2014 $ 1.9 $ 1.9 $ — Purchases, sales, and settlements, net (0.5 ) (0.5 ) — Transfers out of Level 3 (1.4 ) (1.4 ) — Balance, December 31, 2014 $ — $ — $ — The amount transferred out of Level 3 in the fair value hierarchy during 2014 relates to certain U.S. pension plan investments in South American government bonds. During 2014, observable market information became available for these plan assets and as a result, the assets have been categorized as Level 2 within the hierarchy. The U.S. pension plan did not realize any material gains or losses related to these investments during 2014 Contributions: The Company’s intent is to fund at least the minimum contributions required to meet applicable federal employee benefit laws and local laws, or to directly pay benefit payments where appropriate. During 2015 , $ 17.3 million and $ 0.8 million were contributed to the Company’s pension plans and other post-retirement benefit plans, respectively. During 2016, the Company expects to contribute approximately $20 million in the aggregate to its pension and other post-retirement benefit plans. Estimated Future Benefit Payments: The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid out of the Company’s pension and other post-retirement benefit plans: Total Pension Benefits Total Other Benefits 2016 $ 41.7 $ 1.0 2017 41.6 1.0 2018 42.1 1.0 2019 42.4 1.0 2020 42.9 1.0 Years 2021 to 2025 212.4 4.9 |
INCOME TAXES - Q2
INCOME TAXES - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | ||
INCOME TAXES | 12. INCOME TAXES The provision for income taxes represents federal, foreign, state and local income taxes. The effective tax rate differs from the applicable federal statutory rate due to the effect of state and local income taxes, tax rates and income in foreign jurisdictions, utilization of tax loss carryforwards, foreign earnings taxable in the U.S., non-deductible expenses and other items. The Company’s tax provision changes quarterly based on various factors including, but not limited to, the geographical mix of earnings, enacted tax legislation, foreign, state and local income taxes, tax audit settlements and the interaction of various global tax strategies. In addition, changes in judgment from the evaluation of new information resulting in the recognition, derecognition and/or remeasurement of a tax position taken in a prior period are recognized in the quarter in which any such change occurs. For the second quarter of 2016 and 2015, the Company recorded a provision for income taxes of $11.8 million and $21.4 million , respectively. The $9.6 million decrease in the provision for income taxes was primarily due to lower pre-tax income and the phasing of the recognition of income taxes. For the first six months of 2016 and 2015 , the Company recorded a provision for income taxes of $17.9 million and $ 31.0 million , respectively. The $ 13.1 million decrease in the provision for income taxes was primarily due to lower pre-tax income and the phasing of the recognition of income taxes. The Company's effective tax rate for the three months ended June 30, 2016 was higher than the federal statutory rate of 35% as a result of foreign and U.S. tax effects attributable to operations outside the U.S. and foreign dividends and earnings taxable in the U.S. The Company's effective tax rate for the six months ended June 30, 2016 was higher than the federal statutory rate of 35% as a result of certain foreign dividends and earnings taxable in the U.S. The Company remains subject to examination of its income tax returns in various jurisdictions including, without limitation: Australia and Spain for tax years ended December 31, 2011 through December 31, 2014; South Africa, the U.K. and the U.S. (federal) for tax years ended December 31, 2012 through December 31, 2014; and Canada for tax years ended December 31, 2012 through December 31, 2015. | 16. INCOME TAXES The Company's income before income taxes and the applicable provision for income taxes are as follows: Year Ended December 31, 2015 2014 2013 Income (loss) from continuing operations before income taxes: United States $ 123.4 $ 146.9 $ 36.0 Foreign (3.7 ) (19.7 ) 44.6 $ 119.7 $ 127.2 $ 80.6 Provision for (benefit from) income taxes: United States federal $ 40.9 $ 58.2 $ 27.4 State and local 16.7 17.9 13.8 Foreign (3.2 ) 5.1 7.4 $ 54.4 $ 81.2 $ 48.6 Current: United States federal $ (2.7 ) $ 2.6 $ 3.2 State and local 3.9 3.5 0.7 Foreign 21.7 7.2 11.3 22.9 13.3 15.2 Deferred: United States federal 43.6 55.6 24.2 State and local 12.8 14.4 13.1 Foreign (24.9 ) (2.1 ) (3.9 ) 31.5 67.9 33.4 Total provision for income taxes $ 54.4 $ 81.2 $ 48.6 The actual tax on income before income taxes is reconciled to the applicable statutory federal income tax rate in the following table: Year Ended December 31, 2015 2014 2013 Computed income tax expense $ 41.9 $ 44.5 $ 28.2 State and local taxes, net of U.S. federal income tax benefit 10.9 20.5 8.9 Foreign and U.S. tax effects attributable to operations outside the U.S. 13.6 5.8 (6.2 ) Net establishment (release) of valuation allowance (15.5 ) 6.4 — Foreign dividends and earnings taxable in the U.S. 3.2 5.4 11.0 Acquisition costs for which there is no tax benefit — — 2.7 Other 0.3 (1.4 ) 4.0 Tax expense $ 54.4 $ 81.2 $ 48.6 Deferred taxes are the result of temporary differences between the bases of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities at December 31, 2015 and 2014 were comprised of the following: December 31, 2015 2014 Deferred tax assets: Inventories $ 7.3 $ 7.6 Net operating loss carryforwards - U.S. 27.6 77.6 Net operating loss carryforwards - foreign 51.4 57.9 Employee benefits 96.7 100.7 State and local taxes — 2.7 Sales related reserves 25.8 26.2 Foreign currency translation adjustment 11.0 3.9 Other 52.7 46.1 Total gross deferred tax assets 272.5 322.7 Less valuation allowance (47.1 ) (57.1 ) Total deferred tax assets, net of valuation allowance 225.4 265.6 Deferred tax liabilities: Plant, equipment and other assets (29.9 ) (30.0 ) Intangibles (82.4 ) (88.0 ) Other (63.2 ) (55.2 ) Total gross deferred tax liabilities (175.5 ) (173.2 ) Net deferred tax assets $ 49.9 $ 92.4 In assessing the recoverability of its deferred tax assets, management regularly considers whether some portion or all of the deferred tax assets will not be realized based on the recognition threshold and measurement of a tax position. The ultimate realization of deferred tax assets is generally dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A valuation allowance has been provided for those deferred tax assets for which, in the opinion of the Company's management, it is more likely than not that the deferred tax assets will not be realized. At December 31, 2015, the deferred tax valuation allowance primarily represented amounts for foreign tax loss carryforwards and certain U.S. state and local tax loss carryforwards. The deferred tax valuation allowance decreased by $10.0 million and $4.6 million during 2015 and 2014, respectively. The decrease in the deferred tax valuation allowance during 2015 was primarily due to a reduction of the Company's valuation allowance on deferred tax assets of jurisdictions outside of the U.S., offset by additional valuation allowances on losses incurred in certain jurisdictions. The decrease in the deferred tax valuation allowance during 2014 was primarily due to foreign currency translation and the amalgamation of certain foreign subsidiaries, partially offset by the establishment of a valuation allowance against certain deferred tax assets in the Professional segment during 2014. As of December 31, 2015, the Company has tax loss carryforwards of approximately $232.9 million , of which $219.4 million are foreign and $13.4 million are domestic (federal). The losses expire in future years as follows: 2016- $2.1 million ; 2017- $8.2 million ; 2018- $26.1 million ; 2019 and beyond- $28.3 million ; and unlimited- $168.2 million . The Company could receive the benefit of such tax loss carryforwards only to the extent it has taxable income during the carryforward periods in the applicable tax jurisdictions. As of December 31, 2015, there were no consolidated federal net operating losses available from the MacAndrews & Forbes Group (as hereinafter defined) from periods prior to the March 25, 2004 deconsolidation (as described below). The Company remains subject to examination of its income tax returns in various jurisdictions including, without limitation: Australia, Canada and Spain for tax years ended December 31, 2011 through December 31, 2014; South Africa, the U.K. and the U.S. (federal) for tax years ended December 31, 2012 through December 31, 2014. The Company classifies interest and penalties as a component of the provision for income taxes. During 2015 and 2014, the Company recognized in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) decreases of $1.0 million and $0.9 million , respectively, in accrued interest and penalties. At December 31, 2015 and 2014, the Company had unrecognized tax benefits of $65.0 million and $62.0 million , respectively, including $10.3 million and $11.3 million , respectively, of accrued interest and penalties. The unrecognized tax benefits, to the extent reduced and unutilized in future periods, would generally affect the Company’s effective tax rate. A reconciliation of the beginning and ending amount of the unrecognized tax benefits is provided in the following table: Balance at January 1, 2014 $ 74.5 Increase based on tax positions taken in a prior year 12.6 Decrease based on tax positions taken in a prior year (22.8 ) Increase based on tax positions taken in the current year 8.0 Decrease resulting from the lapse of statutes of limitations (10.3 ) Balance at December 31, 2014 62.0 Increase based on tax positions taken in a prior year 5.6 Decrease based on tax positions taken in a prior year (5.8 ) Increase based on tax positions taken in the current year 8.5 Decrease resulting from the lapse of statutes of limitations (5.3 ) Balance at December 31, 2015 $ 65.0 In addition, the Company believes that it is reasonably possible that its unrecognized tax benefits during 2016 will decrease by approximately $1.1 million as a result of changes in various tax positions, each of which is individually insignificant. The Company has not provided for U.S. federal income taxes and foreign withholding taxes on $52.5 million of foreign subsidiaries' cumulative undistributed earnings as of December 31, 2015 because such earnings are intended to be indefinitely reinvested overseas. If these future earnings are repatriated to the U.S., or if the Company determines that such earnings will be remitted in a future period, additional tax provisions may be required. Due to the complexities in the tax laws and the assumptions that would have to be made, it is not practicable to estimate the amounts of income tax provisions that may be required. As a result of the closing of the 2004 Revlon Exchange Transactions (as hereinafter defined in Note 20, “Related Party Transactions - Tax Sharing Agreements”), as of March 25, 2004, Revlon, Inc., Products Corporation and their U.S. subsidiaries were no longer included in the affiliated group of which MacAndrews & Forbes was the common parent (the “MacAndrews & Forbes Group”) for federal income tax purposes. Revlon Holdings (as hereinafter defined in Note 20, “Related Party Transactions - Transfer Agreements”), Revlon, Inc., Products Corporation and certain of its subsidiaries, and MacAndrews & Forbes Incorporated entered into a tax sharing agreement (as subsequently amended and restated, the "MacAndrews & Forbes Tax Sharing Agreement"), for taxable periods beginning on or after January 1, 1992 through and including March 25, 2004, during which Revlon, Inc. and Products Corporation or a subsidiary of Products Corporation was a member of the MacAndrews & Forbes Group. In these taxable periods, Revlon, Inc.'s and Products Corporation's federal taxable income and loss were included in such group's consolidated tax return filed by MacAndrews & Forbes Incorporated. Revlon, Inc. and Products Corporation were also included in certain state and local tax returns of MacAndrews & Forbes Incorporated or its subsidiaries. Revlon, Inc. and Products Corporation remain liable under the MacAndrews & Forbes Tax Sharing Agreement for all such taxable periods through and including March 25, 2004 for amounts determined to be due as a result of a redetermination arising from an audit or otherwise, equal to the taxes that Revlon, Inc. or Products Corporation would otherwise have had to pay if it were to have filed separate federal, state or local income tax returns for such periods. Following the closing of the 2004 Revlon Exchange Transactions, Revlon, Inc. became the parent of a new consolidated group for federal income tax purposes and Products Corporation's federal taxable income and loss are included in such group's consolidated tax returns. Accordingly, Revlon, Inc. and Products Corporation entered into a tax sharing agreement (the "Revlon Tax Sharing Agreement") pursuant to which Products Corporation is required to pay to Revlon, Inc. amounts equal to the taxes that Products Corporation would otherwise have had to pay if Products Corporation were to file separate federal, state or local income tax returns, limited to the amount, and payable only at such times, as Revlon, Inc. will be required to make payments to the applicable taxing authorities. There were no federal tax payments or payments in lieu of taxes from Revlon, Inc. to Revlon Holdings pursuant to the MacAndrews & Forbes Tax Sharing Agreement in 2015 or 2014 with respect to periods covered by the MacAndrews & Forbes Tax Sharing Agreement, and the Company expects that there will not be any such payments in 2016. During 2015, there were no federal tax payments from Products Corporation to Revlon, Inc. pursuant to the Revlon Tax Sharing Agreement with respect to 2015 or 2014. During 2014, there was $0.3 million in federal tax payments from Products Corporation to Revlon, Inc. pursuant to the Revlon Tax Sharing Agreement with respect to 2014. The Company expects that there will be no federal tax payments from Products Corporation to Revlon, Inc. pursuant to the Revlon Tax Sharing Agreement during 2016 with respect to 2015. Pursuant to the asset transfer agreement referred to in Note 20, “Related Party Transactions - Transfer Agreements,” Products Corporation assumed all tax liabilities of Revlon Holdings other than (i) certain income tax liabilities arising prior to January 1, 1992 to the extent such liabilities exceeded the reserves on Revlon Holdings' books as of January 1, 1992 or were not of the nature reserved for and (ii) other tax liabilities to the extent such liabilities are related to the business and assets retained by Revlon Holdings. |
ACCUMULATED OTHER COMPREHENSI49
ACCUMULATED OTHER COMPREHENSIVE LOSS - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Loss [Abstract] | ||
ACCUMULATED OTHER COMPREHENSIVE LOSS | 13. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss as of June 30, 2016 are as follows: Foreign Currency Translation Actuarial (Loss) Gain on Post-retirement Benefits Deferred Gain (Loss) - Hedging Other Accumulated Other Comprehensive Loss Balance at January 1, 2016 $ (23.5 ) $ (217.7 ) $ (3.8 ) $ (0.3 ) $ (245.3 ) Currency translation adjustment, net of tax of $0.6 million 5.3 5.3 Amortization of pension related costs, net of tax of $0.7 million (a) 3.8 3.8 Revaluation of derivative financial instrument, net of amounts reclassified into earnings and tax benefit of $0.4 million (b) $ (0.7 ) (0.7 ) Other comprehensive income (loss) 5.3 3.8 (0.7 ) — 8.4 Balance at June 30, 2016 $ (18.2 ) $ (213.9 ) $ (4.5 ) $ (0.3 ) $ (236.9 ) (a) Amounts represent the change in accumulated other comprehensive loss as a result of the amortization of actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 11, “Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. (b) For the six months ended June 30, 2016 , the Company's 2013 Interest Rate Swap was deemed effective and therefore, the changes in fair value related to the 2013 Interest Rate Swap were recorded in other comprehensive income (loss). See Note 10, "Financial Instruments," for further discussion of the 2013 Interest Rate Swap. As shown above, comprehensive loss includes changes in the fair value of the 2013 Interest Rate Swap, which qualifies for hedge accounting. A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of June 30, 2016 are as follows: 2013 Interest Rate Swap Beginning accumulated losses at March 31, 2016 (4.7 ) Reclassifications into earnings (net of $0.4 million tax expense) (a) 0.7 Change in fair value (net of $0.3 million tax benefit) (0.5 ) Ending accumulated losses at June 30, 2016 $ (4.5 ) 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2015 (3.8 ) Reclassifications into earnings (net of $0.8 million tax expense) (a) 1.3 Change in fair value (net of $1.2 million tax benefit) (2.0 ) Ending accumulated losses at June 30, 2016 $ (4.5 ) (a) Reclassified to interest expense. A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of June 30, 2015 are as follows: 2013 Interest Rate Swap Beginning accumulated losses at March 31, 2015 (4.1 ) Reclassifications into earnings (net of $0.2 million tax expense) (a) 0.3 Change in fair value (net of $0.2 million tax benefit) (0.4 ) Ending accumulated losses at June 30, 2015 $ (4.2 ) 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2014 (2.2 ) Reclassifications into earnings (net of $0.2 million tax expense) (a) 0.3 Change in fair value (net of $1.4 million tax benefit) (2.3 ) Ending accumulated losses at June 30, 2015 $ (4.2 ) (a) Reclassified to interest expense. | 17. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss as of December 31, 2015 , 2014 and 2013 are as follows: Foreign Currency Translation Actuarial (Loss) Gain on Post-retirement Benefits Deferred Gain (Loss) - Hedging Other Accumulated Other Comprehensive Loss Balance at January 1, 2013 $ 23.3 $ (231.5 ) $ — $ — $ (208.2 ) Currency translation adjustment, net of tax of $3.3 million (4.1 ) — — — (4.1 ) Amortization of pension related costs, net of tax of $(1.2) million (a) — 7.7 — — 7.7 Pension re-measurement, net of tax of $(33.5) million — 53.3 — — 53.3 Revaluation of derivative financial instrument, net of tax of $(1.0) million (b) — — 1.5 — 1.5 Balance at December 31, 2013 $ 19.2 $ (170.5 ) $ 1.5 $ — $ (149.8 ) Currency translation adjustment, net of tax of $2.1 million (24.6 ) — — — (24.6 ) Amortization of pension related costs, net of tax of $(0.1) million (a) — 4.5 — — 4.5 Pension re-measurement, net of tax of $42.0 million — (69.6 ) — — (69.6 ) Revaluation of derivative financial instrument, net of tax of $2.3 million (b) — — (3.7 ) — (3.7 ) Other — 0.3 — (0.3 ) — Balance at December 31, 2014 $ (5.4 ) $ (235.3 ) $ (2.2 ) $ (0.3 ) $ (243.2 ) Currency translation adjustment, net of tax of $5.1 million $ (18.1 ) (18.1 ) Amortization of pension related costs, net of tax of $(1.3) million (a) $ 7.2 7.2 Pension re-measurement, net of tax of $3.3 million $ (6.9 ) (6.9 ) Settlement of certain pension liabilities, net of tax of $(3.7) million (b) $ 17.3 $ — 17.3 Revaluation of derivative financial instrument, net of amounts reclassified into earnings and tax benefit of $1.0 million (c) $ (1.6 ) (1.6 ) Other comprehensive loss (18.1 ) 17.6 (1.6 ) — (2.1 ) Balance at December 31, 2015 $ (23.5 ) $ (217.7 ) $ (3.8 ) $ (0.3 ) $ (245.3 ) (a) Amounts represent the change in Accumulated Other Comprehensive Loss as a result of the amortization of actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 14, “Savings Plan, Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. (b) Amount primarily consists of the pension lump sum settlement charge, net of taxes, recorded during the fourth quarter of 2015. See Note 14, “Savings Plan, Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. (c) For the 2015, 2014 and 2013, the Company's 2013 Interest Rate Swap was deemed effective and therefore, the changes in fair value related to the 2013 Interest Rate Swap were recorded in other comprehensive income (loss). See Note 13, "Financial Instruments," for further discussion of the 2013 Interest Rate Swap. As shown above, comprehensive loss includes changes in the fair value of the 2013 Interest Rate Swap, which qualifies for hedge accounting. A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of December 31, 2015 are as follows: 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2014 (2.2 ) Reclassifications into earnings (net of $1.0 million tax expense) (a) 1.6 Change in fair value (net of $2.0 million tax benefit) (3.2 ) Ending accumulated losses at December 31, 2015 $ (3.8 ) (a) Reclassified to interest expense. There were no amounts reclassified into earnings during 2014 or 2013. |
SEGMENT DATA AND RELATED INFO50
SEGMENT DATA AND RELATED INFORMATION - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Segment Data and Related Information [Abstract] | ||
SEGMENT DATA AND RELATED INFORMATION | 14. SEGMENT DATA AND RELATED INFORMATION Operating segments include components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the Company's “Chief Executive Officer”) in deciding how to allocate resources and in assessing the Company's performance. As a result of the similarities in the procurement, manufacturing and distribution processes for the Company’s products, much of the information provided in the Consolidated Financial Statements, and provided in the segment table below, is similar to, or the same as, that reviewed on a regular basis by the Company's Chief Executive Officer. At June 30, 2016 , the Company’s operations are organized into the following reportable segments: • Consumer - The Consumer segment is comprised of the Company's consumer brands, which primarily include Revlon , Almay , SinfulColors and Pure Ice in color cosmetics; Revlon ColorSilk in women’s hair color; Revlon in beauty tools; and Mitchum in anti-perspirant deodorants. The Company’s principal customers for its consumer products include large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, the Internet/e-commerce, television shopping, department stores, one-stop shopping beauty retailers, specialty cosmetics stores and perfumeries in the U.S. and internationally. The Consumer segment also includes a skincare line under the Natural Honey brand and a hair color line under the Llongueras brand sold to large volume retailers and other retailers, primarily in Spain, which were acquired as part of the Colomer Acquisition. In October 2015 and in May 2016, the Company acquired the U.S. Cutex business and Cutex International business and related assets, respectively. The results of operations relating to the sales of Cutex nail care products are included within the Consumer segment. • Professional - The Professional segment is comprised primarily of the brands which the Company acquired in the Colomer Acquisition, which include Revlon Professional in hair color and hair care; CND -branded products in nail polishes and nail enhancements; and American Crew in men’s grooming products, all of which are sold worldwide to professional salons. The Company’s principal customers for its professional products include hair and nail salons and distributors to professional salons in the U.S. and internationally. The Professional segment also includes a multi-cultural line consisting of Creme of Nature hair care products sold to large volume retailers, other retailers and professional salons, primarily in the U.S. • Other - The Other segment primarily includes the operating results of the CBB business and related purchase accounting for the CBB Acquisition. CBB develops, manufactures, markets and distributes fragrances and other beauty products under various celebrity, lifestyle and fashion brands licensed from third parties, principally through department stores and selective distribution in international territories. The results included within the Other segment are not material to the Company’s consolidated results of operations. The Company's management evaluates segment profit, which is defined as income from continuing operations before interest, taxes, depreciation, amortization, stock-based compensation expense, gains/losses on foreign currency fluctuations, gains/losses on the early extinguishment of debt and miscellaneous expenses, for each of the Company's reportable segments. Segment profit also excludes unallocated corporate expenses and the impact of certain items that are not directly attributable to the reportable segments' underlying operating performance, which includes the impacts of: (i) restructuring and related charges; (ii) acquisition and integration costs; (iii) deferred compensation related to the accounting for the CBB Acquisition; and (iv) costs of sales resulting from a fair value adjustment in the second quarter of 2016 and 2015 to inventory acquired in the Cutex International Acquisition and CBB Acquisition, respectively. Such items are shown below in the table reconciling segment profit to consolidated income from continuing operations before income taxes. Unallocated corporate expenses primarily include general and administrative expenses related to the corporate organization. These expenses are recorded in unallocated corporate expenses, as these items are centrally directed and controlled and are not included in internal measures of segment operating performance. The Company does not have any material inter-segment sales. The accounting policies for each of the reportable segments are the same as those described in Note 1, “Description of Business and Summary of Significant Accounting Policies” in the Company's 2015 Form 10-K. The Company's assets and liabilities are managed centrally and are reported internally in the same manner as the Consolidated Financial Statements; thus, no additional information regarding assets and liabilities of the Company’s reportable segments is produced for the Company's Chief Executive Officer or included in these Consolidated Financial Statements. The following table is a comparative summary of the Company’s net sales and segment profit by reportable segment for the three and six months ended June 30, 2016 and 2015 . Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Segment Net Sales: Consumer $ 359.5 $ 354.7 $ 679.5 $ 679.0 Professional 123.3 123.4 238.4 237.6 Other $ 6.1 $ 4.3 10.6 4.3 Total $ 488.9 $ 482.4 $ 928.5 $ 920.9 Segment Profit: Consumer $ 81.0 $ 83.8 $ 139.4 $ 146.0 Professional 24.1 24.3 49.7 53.5 Other $ 0.1 $ 0.2 (0.8 ) 0.2 Total $ 105.2 $ 108.3 $ 188.3 $ 199.7 Reconciliation: Segment Profit $ 105.2 $ 108.3 $ 188.3 $ 199.7 Less: Unallocated corporate expenses 16.2 15.8 30.4 30.5 Depreciation and amortization 26.3 25.2 52.2 50.8 Non-cash stock compensation expense 1.1 1.2 3.3 2.8 Non-Operating items: Restructuring and related charges 0.5 (3.0 ) 1.8 (2.3 ) Acquisition and integration costs 5.5 4.7 6.0 5.9 Deferred compensation related to CBB acquisition 0.9 0.7 1.8 — 0.7 Inventory purchase accounting adjustment, cost of sales 0.1 0.6 0.1 0.6 Operating Income 54.6 63.1 92.7 110.7 Less: Interest Expense 20.9 20.5 41.9 40.5 Amortization of debt issuance costs 1.4 1.4 2.9 2.8 Foreign currency losses (gains), net 8.5 (7.9 ) 5.1 8.0 Miscellaneous, net 0.2 0.2 0.5 0.2 Income from continuing operations before income taxes $ 23.6 $ 48.9 $ 42.3 $ 59.2 As of June 30, 2016 , the Company had operations established in 23 countries outside of the U.S. and its products are sold throughout the world. Generally, net sales by geographic area are presented by attributing revenues from external customers on the basis of where the products are sold. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Geographic area: Net sales: United States $ 263.0 54% $ 267.0 55% $ 510.7 55% $ 511.4 56% Outside of the United States 225.9 46% 215.4 45% 417.8 45% 409.5 44% $ 488.9 $ 482.4 $ 928.5 $ 920.9 June 30, 2016 December 31, 2015 Long-lived assets, net: United States $ 853.0 77% $ 854.7 79% Outside of the United States 258.8 23% 232.4 21% $ 1,111.8 $ 1,087.1 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Classes of similar products: Net sales: Color cosmetics $ 263.4 54% $ 266.0 55% $ 487.7 52% $ 505.5 55% Hair care 134.7 27% 130.0 27% 266.8 29% 256.9 28% Beauty care and fragrance 90.8 19% 86.4 18% 174.0 19% 158.5 17% $ 488.9 $ 482.4 $ 928.5 $ 920.9 | 18. SEGMENT DATA AND RELATED INFORMATION Operating segments include components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the Company's “Chief Executive Officer”) in deciding how to allocate resources and in assessing the Company's performance. As a result of the similarities in the procurement, manufacturing and distribution processes for the Company’s products, much of the information provided in the Consolidated Financial Statements, and provided in the segment table below, is similar to, or the same as, that reviewed on a regular basis by the Company's Chief Executive Officer. At December 31, 2015 , the Company’s operations are organized into the following reportable segments: • Consumer - The Consumer segment is comprised of the Company's consumer brands, which primarily include Revlon , Almay , SinfulColors and Pure Ice in color cosmetics; Revlon ColorSilk in women’s hair color; Revlon in beauty tools; and Mitchum in anti-perspirant deodorants. The Company’s principal customers for its consumer products include large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, the Internet/e-commerce, television shopping, department stores, one-stop shopping beauty retailers, specialty cosmetics stores and perfumeries in the U.S. and internationally. The Consumer segment also includes a skincare line under the Natural Honey brand and hair color line under the Llongueras brand sold to large volume retailers and other retailers, primarily in Spain, which were acquired as part of the Colomer Acquisition. • Professional - The Professional segment is comprised primarily of the brands which the Company acquired in the Colomer Acquisition, which include Revlon Professional in hair color and hair care; CND -branded products in nail polishes and nail enhancements; and American Crew in men’s grooming products, all of which are sold worldwide to professional salons. The Company’s principal customers for its professional products include hair and nail salons and distributors to professional salons in the U.S. and internationally. The Professional segment also includes a multi-cultural line consisting of Creme of Nature hair care products sold to large volume retailers, other retailers and professional salons, primarily in the U.S. • Other - The Other segment primarily includes the operating results of the CBB business and related purchase accounting for the Company's April 2015 CBB Acquisition. CBB develops, manufactures, markets and distributes fragrances and other beauty products under various celebrity, lifestyle and fashion brands licensed from third parties, principally through department stores and selective distribution in international territories. The results included within the Other segment are not material to the Company's consolidated results of operations. The Company's management evaluates segment profit, which is defined as income from continuing operations before interest, taxes, depreciation, amortization, stock-based compensation expense, gains/losses on foreign currency fluctuations, gains/losses on the early extinguishment of debt and miscellaneous expenses, for each of the Company's reportable segments. Segment profit also excludes unallocated corporate expenses and the impact of certain items that are not directly attributable to the reportable segments' underlying operating performance, which includes the impacts of: (i) restructuring and related charges; (ii) acquisition and integration costs; (iii) goodwill impairment charge; (iv) pension lump sum settlement charges; (v) costs of sales resulting from a fair value adjustment to inventory acquired in acquisitions; (vi) deferred compensation related to the CBB Acquisition; (vii) insurance proceeds received in 2013 related to the 2011 fire that destroyed the Company's facility in Venezuela; and (viii) an accrual for estimated clean-up costs related to the Company's facility in Venezuela. Such items are shown below in the table reconciling segment profit to consolidated income from continuing operations before income taxes. Unallocated corporate expenses primarily include general and administrative expenses related to the corporate organization. These expenses are recorded in unallocated corporate expenses, as these items are centrally directed and controlled and are not included in internal measures of segment operating performance. During the second quarter of 2015, the Company removed pension-related costs for its U.S. qualified defined benefit pension plans from the measurement of its operating segment results. As a result, $8.2 million and $4.9 million in pension-related costs were reclassified from the measurement of Consumer segment profit and included as a component of unallocated corporate expenses for 2014 and 2013, respectively. The Company does not have any material inter-segment sales. The accounting policies for each of the reportable segments are the same as those described in Note 1, “Description of Business and Summary of Significant Accounting Policies.” The Company's assets and liabilities are managed centrally and are reported internally in the same manner as the Consolidated Financial Statements; thus, no additional information regarding assets and liabilities of the Company’s reportable segments is produced for the Company's Chief Executive Officer or included in these Consolidated Financial Statements. The following table is a comparative summary of the Company’s net sales and segment profit by reportable segment for each of 2015, 2014 , and 2013. In the table below, certain prior period amounts have been reclassified to conform to the presentation for 2015. Twelve Months Ended December 31, 2015 2014 2013 Segment Net Sales: Consumer $ 1,414.8 $ 1,438.3 $ 1,394.2 Professional 471.1 502.7 100.5 Other $ 28.4 $ — $ — Total $ 1,914.3 $ 1,941.0 $ 1,494.7 Segment Profit: Consumer (a) $ 360.2 $ 339.4 $ 342.3 Professional 103.9 104.8 5.1 Other $ 1.4 $ — $ — Total $ 465.5 $ 444.2 $ 347.4 Reconciliation: Segment Profit $ 465.5 $ 444.2 $ 347.4 Less: Unallocated corporate expenses (a) 79.0 59.2 53.8 Depreciation and amortization 103.2 102.6 — 76.7 Non-cash stock compensation expense 5.1 5.5 0.2 Non-Operating items: Restructuring and related charges 11.6 22.6 4.5 Acquisition and integration costs 8.0 6.4 25.4 Inventory purchase accounting adjustment, cost of sales 0.9 2.6 8.5 Pension Lump sum settlement 20.7 — — Goodwill impairment charge 9.7 — — Deferred Compensation related to CBB Acquisition 2.5 — — Gain from insurance proceeds related to Venezuela fire — — (26.4 ) Accrual for clean-up costs related to destroyed facility in Venezuela — — 7.6 Operating Income 224.8 245.3 197.1 Less: Interest Expense 83.3 84.4 78.6 Amortization of debt issuance costs 5.7 5.5 3.5 Loss on early extinguishment of debt — 2.0 29.7 Foreign currency losses (gains), net 15.7 25.0 3.7 Miscellaneous, net 0.4 1.2 1.0 Income from continuing operations before income taxes $ 119.7 $ 127.2 $ 80.6 (a) During the second quarter of 2015, the Company removed pension-related costs for its U.S. qualified defined benefit pension plans from the measurement of its operating segment results. As a result, $8.2 million and $4.9 million of pension-related costs were reclassified from the measurement of Consumer segment profit and included as a component of unallocated corporate expenses for 2014 and 2013, respectively. As of December 31, 2015 , the Company had operations established in 22 countries outside of the U.S. and its products are sold throughout the world. Generally, net sales by geographic area are presented by attributing revenues from external customers on the basis of where the products are sold. Walmart and its affiliates worldwide accounted for approximately 18% , 16% and 20% of the Company’s worldwide net sales in 2015, 2014 and 2013, respectively, and such sales are primarily included within the net sales of the Consumer segment. The Company expects that Walmart and a small number of other customers will, in the aggregate, continue to account for a large portion of the Company’s net sales. As is customary in the consumer products industry, none of the Company’s customers is under an obligation to continue purchasing products from the Company in the future. In the tables below, certain prior year amounts have been reclassified to conform to the current period’s presentation. Year Ended December 31, 2015 2014 2013 Geographic area: Net sales: United States $ 1,043.7 55% $ 1,021.9 53% $ 832.8 56% Outside of the United States 870.6 45% 919.1 47% $ 661.9 44% $ 1,914.3 $ 1,941.0 $ 1,494.7 December 31, 2015 December 31, 2014 Long-lived assets, net: United States $ 874.7 79% $ 845.5 76% Outside of the United States 232.4 21% 271.7 24% $ 1,107.1 $ 1,117.2 Year Ended December 31, 2015 2014 2013 Classes of similar products: Net sales: Color cosmetics $ 1,026.4 54% $ 1,032.4 53% $ 926.4 62% Hair care 522.1 27% 545.0 28% 263.9 18% Beauty care and fragrance 365.8 19% 363.6 19% 304.4 20% $ 1,914.3 $ 1,941.0 $ 1,494.7 |
CONTINGENCIES - Q2
CONTINGENCIES - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | ||
CONTINGENCIES | 15. CONTINGENCIES The Company is involved in various routine legal proceedings incidental to the ordinary course of its business. The Company believes that the outcome of all pending legal proceedings in the aggregate is not reasonably likely to have a material adverse effect on the Company’s business, financial condition and/or its results of operations. However, in light of the uncertainties involved in legal proceedings generally, the ultimate outcome of a particular matter could be material to the Company’s operating results for a particular period depending on, among other things, the size of the loss or the nature of the liability imposed and the level of the Company’s income for that particular period. | 19. COMMITMENTS AND CONTINGENCIES Products Corporation currently leases facilities for executive offices, warehousing, research and development and sales operations and leases various types of equipment under operating and capital lease agreements. Rental expense was $18.6 million , $26.6 million and $19.8 million for 2015, 2014 and 2013, respectively. Minimum rental commitments under all non-cancelable leases, including those pertaining to idled facilities, are presented in the following table: Minimum Rental Commitments Total 2016 2017 2018 2019 2020 Thereafter Capital leases $ 5.4 $ 3.1 $ 1.4 $ 0.6 $ 0.3 $ — $ — Operating leases 127.1 22.6 17.7 14.4 12.8 7.7 51.9 The Company is involved in various routine legal proceedings incidental to the ordinary course of its business. The Company believes that the outcome of all pending legal proceedings in the aggregate is not reasonably likely to have a material adverse effect on the Company’s business, financial condition and/or its results of operations. However, in light of the uncertainties involved in legal proceedings generally, the ultimate outcome of a particular matter could be material to the Company’s operating results for a particular period depending on, among other things, the size of the loss or the nature of the liability imposed and the level of the Company’s income for that particular period. |
RELATED PARTY TRANSACTIONS - Q2
RELATED PARTY TRANSACTIONS - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | 16. RELATED PARTY TRANSACTIONS Reimbursement Agreements As previously disclosed in the Company's 2015 Form 10-K, Revlon, Inc., Products Corporation and MacAndrews & Forbes have entered into reimbursement agreements (the "Reimbursement Agreements") pursuant to which: (i) MacAndrews & Forbes is obligated to provide (directly or through its affiliates) certain professional and administrative services, including, without limitation, employees, to the Company, and to purchase services from third party providers, such as insurance, legal, accounting and air transportation services, on behalf of the Company, to the extent requested by Products Corporation; and (ii) Products Corporation is obligated to provide certain professional and administrative services, including, without limitation, employees, to MacAndrews & Forbes and to purchase services from third party providers, such as insurance, legal and accounting services, on behalf of MacAndrews & Forbes, to the extent requested by MacAndrews & Forbes, provided that in each case the performance of such services does not cause an unreasonable burden to MacAndrews & Forbes or Products Corporation, as the case may be. The Company reimburses MacAndrews & Forbes for the allocable costs of the services that MacAndrews & Forbes purchases for or provides to the Company and for the reasonable out-of-pocket expenses that MacAndrews & Forbes incurs in connection with the provision of such services. MacAndrews & Forbes reimburses Products Corporation for the allocable costs of the services that Products Corporation purchases for or provides to MacAndrews & Forbes and for the reasonable out-of-pocket expenses incurred by Products Corporation in connection with the purchase or provision of such services. Each of the Company, on the one hand, and MacAndrews & Forbes, on the other, has agreed to indemnify the other party for losses arising out of the services provided by it under the Reimbursement Agreements, other than losses resulting from its willful misconduct or gross negligence. The Reimbursement Agreements may be terminated by either party on 90 days' notice. The Company does not intend to request services under the Reimbursement Agreements unless their costs would be at least as favorable to the Company as could be obtained from unaffiliated third parties. The Company participates in MacAndrews & Forbes' directors and officers liability insurance program (the “D&O Insurance Program”), as well as its other insurance coverages, such as property damage, business interruption, liability and other coverages, which cover the Company, as well as MacAndrews & Forbes and its subsidiaries. The limits of coverage for certain of the policies are available on an aggregate basis for losses to any or all of the participating companies and their respective directors and officers. The Company reimburses MacAndrews & Forbes from time to time for their allocable portion of the premiums for such coverage or the Company pays the insurers directly, which premiums the Company believes are more favorable than the premiums that the Company would pay were it to secure stand-alone coverage. Any amounts paid by the Company directly to MacAndrews & Forbes in respect of premiums are included in the amounts paid under the Reimbursement Agreements. The net activity related to services provided and/or purchased under the Reimbursement Agreements during the six months ended June 30, 2016 and 2015 was $1.4 million and $2.3 million , respectively, which primarily includes partial payments made by the Company to MacAndrews & Forbes during the first quarter of 2016 and 2015 for premiums related to the Company's allocable portion of the 5 -year renewal of the D&O Insurance Program for the period from January 31, 2012 through January 31, 2017 . As of June 30, 2016 and December 31, 2015 , a receivable balance of nil and $0.1 million , respectively, from MacAndrews & Forbes were included in the Company's Balance Sheets for transactions subject to the Reimbursement Agreements. Other During the six months ended June 30, 2016 and 2015, the Company engaged several companies in which MacAndrews & Forbes had a controlling interest to provide the Company with various ordinary course business services. These services included processing approximately $24.8 million and $16.1 million of coupon redemptions for the Company's retail customers for the six months ended June 30, 2016 and 2015, respectively, for which the Company paid fees of approximately $0.2 million and $0.2 million during the six months ended June 30, 2016 and 2015, respectively, and other similar advertising, coupon redemption and raw material supply services, for which the Company paid fees aggregating to less than $0.2 million during the six months ended June 30, 2016 and 2015, respectively. The Company believes that its engagement of each of these affiliates was on arm's length terms, taking into account each firm's expertise in its respective field, and that the fees paid were at least as favorable as those available from unaffiliated parties. | 20. RELATED PARTY TRANSACTIONS As of December 31, 2015 , MacAndrews & Forbes beneficially owned approximately 78% of Revlon, Inc.'s Class A Common Stock representing approximately 78% of Revlon, Inc.’s outstanding shares of voting capital stock. Revlon, Inc. in turn directly owns all 5,260 outstanding shares of Products Corporation's common stock. As a result, MacAndrews & Forbes is able to elect the entire Board of Directors of Revlon, Inc. and Products Corporation and control the vote on all matters submitted to a vote of Revlon, Inc.'s and Products Corporation's stockholders. MacAndrews & Forbes is wholly-owned by Ronald O. Perelman, Chairman of Revlon, Inc.’s and Products Corporation's Board of Directors. Transfer Agreements In June 1992, Revlon, Inc. and Products Corporation entered into an asset transfer agreement with Revlon Holdings LLC, a Delaware limited liability company and formerly a Delaware corporation known as Revlon Holdings Inc. ("Revlon Holdings"), and which is an affiliate and an indirect wholly-owned subsidiary of MacAndrews & Forbes, and certain of Revlon Holdings’ wholly-owned subsidiaries. Revlon, Inc. and Products Corporation also entered into a real property asset transfer agreement with Revlon Holdings. Pursuant to such agreements, in June 1992, Revlon Holdings transferred certain assets to Products Corporation and Products Corporation assumed all of the liabilities of Revlon Holdings, other than certain specifically excluded assets and liabilities (the liabilities excluded are referred to as the "Excluded Liabilities"). Certain consumer products lines sold in demonstrator-assisted retailers considered not integral to the Company's business and that historically had not been profitable and certain other assets and liabilities were retained by Revlon Holdings. Revlon Holdings agreed to indemnify Revlon, Inc. and Products Corporation against losses arising from the Excluded Liabilities, and Revlon, Inc. and Products Corporation agreed to indemnify Revlon Holdings against losses arising from the liabilities assumed by Products Corporation. The amounts reimbursed by Revlon Holdings to Products Corporation for the Excluded Liabilities was $0.3 million for 2015 and $0.2 million for each of 2014 and 2013. A $0.2 million and $0.1 million receivable balance from MacAndrews & Forbes was included within prepaid expenses and other in the Company’s Consolidated Balance Sheets for transactions subject to the Transfer Agreements, at December 31, 2015 and 2014, respectively. Reimbursement Agreements Revlon, Inc., Products Corporation and MacAndrews & Forbes Inc. (a wholly-owned subsidiary of MacAndrews & Forbes) have entered into reimbursement agreements (the "Reimbursement Agreements") pursuant to which: (i) MacAndrews & Forbes Inc. is obligated to provide (directly or through its affiliates) certain professional and administrative services, including, without limitation, employees, to the Company, and to purchase services from third party providers, such as insurance, legal, accounting and air transportation services, on behalf of the Company, to the extent requested by Products Corporation; and (ii) Products Corporation is obligated to provide certain professional and administrative services, including, without limitation, employees, to MacAndrews & Forbes and to purchase services from third party providers, such as insurance, legal and accounting services, on behalf of MacAndrews & Forbes, to the extent requested by MacAndrews & Forbes, provided that in each case the performance of such services does not cause an unreasonable burden to MacAndrews & Forbes or Products Corporation, as the case may be. The Company reimburses MacAndrews & Forbes for the allocable costs of the services that MacAndrews & Forbes purchases for or provides to the Company and for the reasonable out-of-pocket expenses that MacAndrews & Forbes incurs in connection with the provision of such services. MacAndrews & Forbes reimburses Products Corporation for the allocable costs of the services that Products Corporation purchases for or provides to MacAndrews & Forbes and for the reasonable out-of-pocket expenses incurred by Products Corporation in connection with the purchase or provision of such services. Each of the Company, on the one hand, and MacAndrews & Forbes Inc., on the other, has agreed to indemnify the other party for losses arising out of the services provided by it under the Reimbursement Agreements, other than losses resulting from its willful misconduct or gross negligence. The Reimbursement Agreements may be terminated by either party on 90 days' notice. The Company does not intend to request services under the Reimbursement Agreements unless their costs would be at least as favorable to the Company as could be obtained from unaffiliated third parties. Revlon Inc., and the Company participate in MacAndrews & Forbes' directors and officers liability insurance program (the “D&O Insurance Program”), as well as its other insurance coverages, such as property damage, business interruption, liability and other coverages, which cover Revlon, Inc. and the Company, as well as MacAndrews & Forbes and its subsidiaries. The limits of coverage for certain of the policies are available on an aggregate basis for losses to any or all of the participating companies and their respective directors and officers. The Company reimburses MacAndrews & Forbes from time to time for their allocable portion of the premiums for such coverage or the Company pays the insurers directly, which premiums the Company believes are more favorable than the premiums that the Company would pay were it to secure stand-alone coverage. Any amounts paid by the Company directly to MacAndrews & Forbes in respect of premiums are included in the amounts paid under the Reimbursement Agreements. The net activity related to services provided and/or (purchased) under the Reimbursement Agreements during 2015 was $(2.1) million , which primarily included partial payments made by the Company to MacAndrews & Forbes during 2015 for premiums related to the Company's allocable portion of the 5-year renewal of the D&O Insurance Program for the period from January 31, 2012 through January 31, 2017 . The net activity related to services provided and/or (purchased) under the Reimbursement Agreements during 2014 was $(3.8) million , which primarily included partial payments made by the Company to MacAndrews & Forbes during 2014 for premiums related to the Company's allocable portion of the 5 -year renewal of the D&O Insurance Program for the period from January 31, 2012 through January 31, 2017 . The net activity related to services provided and/or (purchased) under the Reimbursement Agreements during 2013 was $(6.1) million , which primarily included a $6.1 million partial payment made by the Company to MacAndrews & Forbes during 2013 for premiums related to the Company's allocable portion of the 5 -year renewal of the D&O Insurance Program for the period from January 31, 2012 through January 31, 2017 , . The receivable balances from MacAndrews & Forbes were $0.1 million at December 31, 2015 and nil December 31, 2014 for transactions subject to the Reimbursement Agreements. Tax Sharing Agreements As a result of a debt-for-equity exchange transaction completed in March 2004 (the “2004 Revlon Exchange Transactions”), as of March 25, 2004, Revlon, Inc., Products Corporation and their U.S. subsidiaries were no longer included in the MacAndrews & Forbes Group for U.S. federal income tax purposes. See Note 16, “Income Taxes,” for further discussion on these agreements and related transactions in 2015, 2014 and 2013. Other Certain of Products Corporation’s debt obligations, including the Amended Credit Agreements and Products Corporation's 5¾% Senior Notes, have been, and may in the future be, supported by, among other things, guarantees from all of Products Corporation's domestic subsidiaries (subject to certain limited exceptions) and, for the Amended Credit Agreements, guarantees from Revlon, Inc. The obligations under such guarantees are secured by, among other things, all of the capital stock of Products Corporation and, its domestic subsidiaries (subject to certain limited exceptions) and 66% of the capital stock of Products Corporation's and its domestic subsidiaries' first-tier foreign subsidiaries. See Note 11, “Long Term Debt,” for a discussion of the terms of the Amended Credit Agreements and 5¾% Senior Notes. During 2015 and 2014, the Company engaged several companies in which MacAndrews & Forbes had a controlling interest to provide the Company with various ordinary course business services. These services included: (i) advertising inserts, for which the Company paid fees of approximately $0.2 million during 2015; (ii) processing approximately $32.9 million and $35.8 million of coupon redemptions for the Company's retail customers for 2015 and 2014, respectively, for which the Company paid fees of approximately $0.4 million and $0.4 million during 2015 and 2014, respectively; and (iii) other similar advertising, coupon redemption and raw material supply services, for which the Company paid fees aggregating to less than $0.1 million during 2015. The Company believes that its engagement of each of these affiliates was on arm's length terms, taking into account each firm's expertise in its respective field, and that the fees paid were at least as favorable as those available from unaffiliated parties. |
SUBSEQUENT EVENTS - Q2
SUBSEQUENT EVENTS - Q2 | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. SUBSEQUENT EVENTS On June 16, 2016, the Company and Revlon, Inc. entered into an agreement and plan of merger (the "Merger Agreement") by and among the Company, Revlon, Inc., RR Transaction Corp., a wholly-owned subsidiary of the Company (“Acquisition Sub”) and Elizabeth Arden, Inc. ("Elizabeth Arden") pursuant to which, among other things, Acquisition Sub will merge with and into Elizabeth Arden (the “Merger” or the “Pending Acquisition”), with Elizabeth Arden surviving the Merger as a wholly-owned subsidiary of the Company. The Company expects the Merger to close by the end of 2016, subject to receipt of regulatory approvals and satisfaction of other customary closing conditions. Elizabeth Arden is a global prestige beauty products company with an extensive portfolio of iconic beauty brands that are highly complementary to the Company's existing brand portfolio and are sold worldwide. In North America, Elizabeth Arden’s principal customers include prestige retailers, the mass retail channel and distributors, as well as direct sales to consumers via its branded retail outlet stores and e-commerce business. Elizabeth Arden products are also sold through the Elizabeth Arden Red Door Spa beauty salons and spas. Internationally, Elizabeth Arden’s portfolio of owned and licensed brands is sold to perfumeries, boutiques, department stores, travel retailers and distributors. In connection with the execution of the Merger Agreement, on June 16, 2016, the Company entered into a debt financing commitment letter (the “Debt Commitment Letter”) with Citigroup Global Markets Inc., Bank of America, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated (collectively, the “Lenders”). Pursuant to the Debt Commitment Letter, the Lenders have committed to arrange and provide the Company with: (i) a seven -year senior secured term loan facility in an aggregate principal amount of $1.8 billion (the "New Term Loan Facilities"); (ii) a five -year senior secured asset-based revolving credit facility in a principal amount of $400 million (the "New Revolving Credit Facility"); and (iii) to the extent that the proceeds of the Unsecured Notes (as defined below) are not available to consummate the transactions contemplated by the Merger Agreement, up to $400 million of senior unsecured bridge loans under a senior unsecured credit facility (the foregoing facilities collectively, the “Facilities”). The availability of the borrowings under the Facilities is subject to the satisfaction of certain customary conditions, including the consummation of the Merger. Additionally, the Company engaged affiliates of the Lenders to act as initial purchasers and placement agents for a private placement of up to $400 million of senior unsecured notes (the “Unsecured Notes”). The proceeds of the applicable Facilities and Unsecured Notes (to the extent borrowed or issued on the closing date of the Merger (the "Closing Date") will be used to: (x) finance the Merger; (y) pay the fees, costs and expenses incurred in connection with, among other things, the Merger and the Facilities; and (z) fund the refinancing of substantially all of the Company’s existing long-term debt and credit facilities (such transactions in clauses (x) through (z) being the "Transactions"); provided that the Company's existing 5¾% Senior Notes due 2021 will remain outstanding. On July 21, 2016, Revlon Escrow Corporation (the “Escrow Issuer”), a wholly owned subsidiary of the Company, priced an offering of $450.0 million aggregate principal amount of 6.25% Senior Notes due 2024 (the “Notes”), the proceeds of which Products Corporation expects will be used, together with $1.8 billion of borrowings under the New Term Loan Facility and $100.0 million of borrowings under the New Revolving Credit Facility, to finance the Transactions. The amount of borrowings under the New Revolving Credit Facility will be subject to changes in working capital requirements and other adjustments. The offering of the Notes is expected to close on August 4, 2016. The aggregate principal amount of Notes that will be issued represents an increase from the $400.0 million aggregate principal amount of Notes that Products Corporation had originally offered. The amount of cash on hand that the Company had planned to use to finance the Pending Acquisition will be reduced by the amount of additional net proceeds of the Notes, and any remaining net proceeds will be used for general corporate purposes. At the closing of the offering of the Notes, pursuant to an escrow agreement (the “Escrow Agreement”), the gross proceeds of the Notes, together with interest on the Notes, will be placed in an escrow account until the Closing Date of the Pending Acquisition. Under the Escrow Agreement, the Closing Date may be extended from time to time (subject to the Company or an affiliate funding additional interest through the extended Closing Date into the escrow account), but not later than six months after the initial issuance date of the Notes. The net proceeds of the Notes will be released from escrow upon the satisfaction of various customary conditions precedent, including completion of the Pending Acquisition. Upon the escrow release: (1) the Escrow Issuer will be merged with and into Products Corporation, with Products Corporation as the surviving corporation, and Products Corporation will assume the Escrow Issuer's obligations under the Notes and the related indenture, (2) Products Corporation's current subsidiaries that guarantee its existing 5¾% Senior Notes will guarantee the Notes and the related indenture (along with the New Term Loan Facility and the New Revolving Credit Facility); and (3) Elizabeth Arden and certain of its subsidiaries will guarantee the Notes and the related indenture (along with the New Term Loan Facility, the New Revolving Credit Facility and the 5¾% Senior Notes). |
GUARANTOR FINANCIAL INFORMATI54
GUARANTOR FINANCIAL INFORMATION - Q2 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
GUARANTOR FINANCIAL INFORMATION | 18. GUARANTOR FINANCIAL INFORMATION Products Corporation’s 5¾% Senior Notes are fully and unconditionally guaranteed on a senior basis by Products Corporation’s domestic subsidiaries (other than certain immaterial subsidiaries) that also guarantee Products Corporation’s obligations under its Amended Credit Agreements (the “Guarantor Subsidiaries”). The following Condensed Consolidating Financial Statements present the financial information as of June 30, 2016 and December 31, 2015, and for each of the three and six months ended June 30, 2016 and 2015 for: (i) Products Corporation on a stand-alone basis; (ii) the Guarantor Subsidiaries on a stand-alone basis; (iii) the subsidiaries of Products Corporation that do not guarantee Products Corporation’s 5¾% Senior Notes (the “Non-Guarantor Subsidiaries”) on a stand-alone basis; and (iv) Products Corporation, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis. The Condensed Consolidating Financial Statements are presented on the equity method, under which the investments in subsidiaries are recorded at cost and adjusted for the applicable share of the subsidiary’s cumulative results of operations, capital contributions, distributions and other equity changes. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Condensed Consolidating Balance Sheets As of June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 61.9 $ 71.4 $ 52.5 $ — $ 185.8 Trade receivables, less allowances for doubtful accounts 93.9 45.3 129.2 — 268.4 Inventories 92.5 38.0 79.1 — 209.6 Prepaid expenses and other 154.6 6.8 40.1 — 201.5 Intercompany receivables 778.9 451.2 79.2 (1,309.3 ) — Investment in subsidiaries 576.4 (6.2 ) — (570.2 ) — Property, plant and equipment, net 127.4 26.7 62.7 — 216.8 Deferred income taxes 7.2 — 34.5 — 41.7 Goodwill 182.4 30.0 264.3 — 476.7 Intangible assets, net 53.8 152.8 122.3 — 328.9 Other assets 50.6 13.4 25.4 — 89.4 Total assets $ 2,179.6 $ 829.4 $ 889.3 $ (1,879.5 ) $ 2,018.8 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 14.1 $ — $ 14.1 Current portion of long-term debt 6.7 — 0.1 — 6.8 Accounts payable 74.2 28.7 84.7 — 187.6 Accrued expenses and other 134.4 16.5 82.3 — 233.2 Intercompany payables 427.6 461.3 420.4 (1,309.3 ) — Long-term debt 1,783.1 — 0.5 — 1,783.6 Other long-term liabilities 211.1 5.9 34.0 — 251.0 Total liabilities 2,637.1 512.4 636.1 (1,309.3 ) 2,476.3 Stockholder’s deficiency (457.5 ) 317.0 253.2 (570.2 ) (457.5 ) Total liabilities and stockholder’s deficiency $ 2,179.6 $ 829.4 $ 889.3 $ (1,879.5 ) $ 2,018.8 Condensed Consolidating Balance Sheets As of December 31, 2015 (as adjusted) Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 Trade receivables, less allowances for doubtful accounts 79.7 44.5 120.7 — 244.9 Inventories 88.1 34.5 61.2 — 183.8 Prepaid expenses and other 136.9 3.3 30.5 — 170.7 Intercompany receivables 692.1 366.5 95.2 (1,153.8 ) — Investment in subsidiaries 591.0 16.3 — (607.3 ) — Property, plant and equipment, net 124.8 28.1 62.4 — 215.3 Deferred income taxes 5.8 — 44.0 — 49.8 Goodwill 182.4 30.0 257.3 — 469.7 Intangible assets, net 56.6 156.7 104.7 — 318.0 Other assets 49.4 9.6 25.1 — 84.1 Total assets $ 2,148.3 $ 782.5 $ 893.5 $ (1,761.1 ) $ 2,063.2 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 11.3 $ — $ 11.3 Current portion of long-term debt 29.9 — 0.1 — 30.0 Accounts payable 85.3 29.2 86.8 — 201.3 Accrued expenses and other 175.1 18.9 78.4 — 272.4 Intercompany payables 360.4 401.0 392.4 (1,153.8 ) — Long-term debt 1,783.2 — 0.5 — 1,783.7 Other long-term liabilities 206.0 0.8 49.3 — 256.1 Total liabilities 2,639.9 449.9 618.8 (1,153.8 ) 2,554.8 Stockholder's deficiency (491.6 ) 332.6 274.7 (607.3 ) (491.6 ) Total liabilities and stockholder’s deficiency 2,148.3 782.5 893.5 (1,761.1 ) 2,063.2 Condensed Consolidating Statements of Income and Comprehensive Income For the Three Months Ended June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 229.4 $ 85.6 $ 187.8 $ (13.9 ) $ 488.9 Cost of sales 83.0 31.8 70.6 (13.9 ) 171.5 Gross profit 146.4 53.8 117.2 — 317.4 Selling, general and administrative expenses 123.7 37.2 95.9 — 256.8 Acquisition and integration costs 5.2 — 0.3 — 5.5 Restructuring charges and other, net (0.2 ) 0.1 0.6 — 0.5 Operating income 17.7 16.5 20.4 — 54.6 Other expenses (income): Intercompany interest, net (2.0 ) (0.2 ) 2.2 — — Interest expense 20.7 — 0.2 — 20.9 Amortization of debt issuance costs 1.4 — — — 1.4 Foreign currency losses (gains), net 1.8 (0.6 ) 7.3 — 8.5 Miscellaneous, net (12.5 ) (3.2 ) 15.9 — 0.2 Other expenses (income), net 9.4 (4.0 ) 25.6 — 31.0 Income (loss) from continuing operations before income taxes 8.3 20.5 (5.2 ) — 23.6 (Benefit from) provision for income taxes (3.8 ) 12.8 2.8 — 11.8 Income (loss) from continuing operations 12.1 7.7 (8.0 ) — 11.8 Loss from discontinued operations, net of taxes — — (2.5 ) — (2.5 ) Equity in loss of subsidiaries (2.8 ) (6.2 ) — 9.0 — Net income (loss) $ 9.3 $ 1.5 $ (10.5 ) $ 9.0 $ 9.3 Other comprehensive income (loss) 4.8 (3.1 ) (5.4 ) 8.5 4.8 Total comprehensive income (loss) $ 14.1 $ (1.6 ) $ (15.9 ) $ 17.5 $ 14.1 Condensed Consolidating Statements of Income and Comprehensive Income For the Three Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 268.4 $ 85.3 $ 178.6 $ (49.9 ) $ 482.4 Cost of sales 114.4 33.0 63.8 (49.9 ) 161.3 Gross profit 154.0 52.3 114.8 — 321.1 Selling, general and administrative expenses 119.3 40.2 97.4 — 256.9 Acquisition and integration costs 4.7 — — — 4.7 Restructuring charges and other, net (0.7 ) 0.6 — (3.5 ) — (3.6 ) Operating income 30.7 11.5 20.9 — 63.1 Other expenses (income): Intercompany interest, net (2.1 ) — 2.1 — — Interest expense 20.3 — 0.2 — 20.5 Amortization of debt issuance costs 1.4 — — — 1.4 Foreign currency (gains), net (1.4 ) — (6.5 ) — (7.9 ) Miscellaneous, net 11.4 (2.9 ) (8.3 ) — 0.2 Other expenses (income), net 29.6 (2.9 ) (12.5 ) — 14.2 Income from continuing operations before income taxes 1.1 14.4 33.4 — 48.9 Provision for income taxes 9.5 9.5 2.4 — 21.4 Loss (income) from continuing operations (8.4 ) 4.9 31.0 — 27.5 Income from discontinued operations, net of taxes — — — — — Equity in loss of subsidiaries 35.9 22.6 — (58.5 ) — Net income $ 27.5 $ 27.5 $ 31.0 $ (58.5 ) $ 27.5 Other comprehensive income (loss) 2.5 (1.8 ) 1.8 — 2.5 Total comprehensive income $ 30.0 $ 25.7 $ 32.8 $ (58.5 ) $ 30.0 Condensed Consolidating Statements of Income and Comprehensive Income For the Six Months Ended June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 428.1 $ 168.6 $ 346.0 $ (14.2 ) $ 928.5 Cost of sales 145.2 62.2 132.2 (14.2 ) 325.4 Gross profit 282.9 106.4 213.8 — 603.1 Selling, general and administrative expenses 247.7 72.8 182.1 — 502.6 Acquisition and integration costs 5.6 — 0.4 — 6.0 Restructuring charges and other, net — 0.7 1.1 — 1.8 Operating income 29.6 32.9 30.2 — 92.7 Other expenses (income): Intercompany interest, net (4.3 ) 0.1 4.2 — — Interest expense 41.6 — 0.3 — 41.9 Amortization of debt issuance costs 2.9 — — — 2.9 Foreign currency losses (gains), net 2.1 (0.3 ) 3.3 — 5.1 Miscellaneous, net (34.7 ) 3.8 31.4 — 0.5 Other expenses, net 7.6 3.6 39.2 — 50.4 Income (loss) from continuing operations before income taxes 22.0 29.3 (9.0 ) — 42.3 (Benefit from) provision for income taxes (8.5 ) 26.2 0.2 — 17.9 Income (loss) from continuing operations 30.5 3.1 (9.2 ) — 24.4 Loss from discontinued operations, net of taxes — — (2.1 ) — (2.1 ) Equity in loss of subsidiaries (8.2 ) (12.1 ) — 20.3 — Net income (loss) $ 22.3 $ (9.0 ) $ (11.3 ) $ 20.3 $ 22.3 Other comprehensive income (loss) 8.4 (7.5 ) (8.2 ) 15.7 8.4 Total comprehensive income (loss) $ 30.7 $ (16.5 ) $ (19.5 ) $ 36.0 $ 30.7 Condensed Consolidating Statements of Income and Comprehensive Income For the Six Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 511.8 $ 166.3 $ 334.8 $ (92.0 ) $ 920.9 Cost of sales 215.6 60.7 119.3 (92.0 ) 303.6 Gross profit 296.2 105.6 215.5 — 617.3 Selling, general and administrative expenses 245.8 68.8 189.2 — 503.8 Acquisition and integration costs 5.9 — — — 5.9 Restructuring charges and other, net (0.5 ) 0.7 (3.3 ) — (3.1 ) Operating income 45.0 36.1 29.6 — 110.7 Other expenses (income): Intercompany interest, net (4.1 ) (0.1 ) 4.2 — — Interest expense 40.3 — 0.2 — 40.5 Amortization of debt issuance costs 2.8 — — — 2.8 Foreign currency (gains) losses, net (1.2 ) (0.5 ) 9.7 — 8.0 Miscellaneous, net (6.2 ) (1.4 ) 7.8 — 0.2 Other expenses (income), net 31.6 (2.0 ) 21.9 — 51.5 Income from continuing operations before income taxes 13.4 38.1 7.7 — 59.2 Provision for income taxes 11.0 18.1 1.9 — 31.0 Income from continuing operations 2.4 20.0 5.8 — 28.2 Loss from discontinued operations, net of taxes — — (0.1 ) — (0.1 ) Equity in loss of subsidiaries 25.7 12.4 — (38.1 ) — Net income $ 28.1 $ 32.4 $ 5.7 $ (38.1 ) $ 28.1 Other comprehensive loss (11.1 ) (2.8 ) (13.3 ) 16.1 (11.1 ) Total comprehensive income (loss) $ 17.0 $ 29.6 $ (7.6 ) $ (22.0 ) $ 17.0 Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash used in operating activities $ (27.2 ) $ (20.4 ) $ (9.6 ) $ — $ (57.2 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (13.2 ) (1.2 ) (4.2 ) — (18.6 ) Business acquisition — — (29.2 ) — (29.2 ) Proceeds from the sale of certain assets — 0.4 — — 0.4 Net cash used in investing activities (13.2 ) (0.8 ) (33.4 ) — (47.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net (decrease) increase in short-term borrowings and overdraft (11.2 ) — 2.8 — (8.4 ) Repayments under the Acquisition Term Loan (15.1 ) — — — (15.1 ) Prepayments under the 2011 Term Loan (11.5 ) — — — (11.5 ) Other financing activities (1.4 ) — (0.2 ) — (1.6 ) Net cash (used in) provided by financing activities (39.2 ) — 2.6 — (36.6 ) Effect of exchange rate changes on cash and cash equivalents — (0.4 ) 0.5 — 0.1 Net decrease in cash and cash equivalents (79.6 ) (21.6 ) (39.9 ) — (141.1 ) Cash and cash equivalents at beginning of period $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 Cash and cash equivalents at end of period $ 61.9 $ 71.4 $ 52.5 $ — $ 185.8 Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash (used in) provided by operating activities $ (1.7 ) $ (0.3 ) $ 4.5 $ — $ 2.5 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (10.6 ) (2.5 ) (4.1 ) — (17.2 ) Business acquisition, net of cash acquired — — (34.2 ) — (34.2 ) Proceeds from the sale of certain assets 0.4 1.5 0.1 — 2.0 Net cash used in investing activities (10.2 ) (1.0 ) (38.2 ) — (49.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase in short-term borrowings and overdraft 4.0 — 2.6 — 6.6 Repayments under the Acquisition Term Loan (15.9 ) — — — (15.9 ) Prepayments under the 2011 Term Loan (12.1 ) — — — (12.1 ) Other financing activities (1.9 ) — (0.2 ) — (2.1 ) Net cash (used in) provided by financing activities (25.9 ) — 2.4 — (23.5 ) Effect of exchange rate changes on cash and cash equivalents — — (5.9 ) — (5.9 ) Net decrease in cash and cash equivalents (37.8 ) (1.3 ) (37.2 ) — (76.3 ) Cash and cash equivalents at beginning of period $ 104.2 $ 88.1 $ 83.0 $ — $ 275.3 Cash and cash equivalents at end of period $ 66.4 $ 86.8 $ 45.8 $ — $ 199.0 | 22. GUARANTOR FINANCIAL INFORMATION Products Corporation's 5¾% Senior Notes are fully and unconditionally guaranteed on a senior basis by Products Corporation's domestic subsidiaries (other than certain immaterial subsidiaries) that guarantee Products Corporation's obligations under its Amended Credit Agreements (the "Guarantor Subsidiaries"). The following Condensed Consolidating Financial Statements present the financial information as of December 31, 2015 and December 31, 2014, and for the years ended December 31, 2015, 2014 and 2013 for (i) Products Corporation on a stand-alone basis, (ii) the Guarantor Subsidiaries on a stand-alone basis (iii) the subsidiaries of Products Corporation that do not guarantee Products Corporation's 5¾% Senior Notes (the "Non-Guarantor Subsidiaries") on a stand-alone basis; and (iv) Products Corporation, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis. The Condensed Consolidating Financial Statements are presented on the equity method, under which the investments in subsidiaries are recorded at cost and adjusted to the applicable share of the subsidiary's cumulative results of operations, capital contributions, distributions and other equity changes. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Condensed Consolidating Balance Sheets As of December 31, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 Trade receivables, less allowances for doubtful accounts 79.7 44.5 120.7 — 244.9 Inventories 88.1 34.5 61.2 — 183.8 Deferred income taxes - current 49.4 — 8.6 — 58.0 Prepaid expenses and other 136.9 3.3 30.5 — 170.7 Intercompany receivables 692.1 366.5 95.2 (1,153.8 ) — Investment in subsidiaries 591.0 16.3 — (607.3 ) — Property, plant and equipment, net 124.8 28.1 62.4 — 215.3 Deferred income taxes - noncurrent 3.1 — 35.4 — 38.5 Goodwill 182.4 30.0 257.3 — 469.7 Intangible assets, net 56.6 156.7 104.7 — 318.0 Other assets 69.4 9.6 25.1 — 104.1 Total assets $ 2,215.0 $ 782.5 $ 893.5 $ (1,761.1 ) $ 2,129.9 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 11.3 $ — $ 11.3 Current portion of long-term debt 29.9 — 0.1 — 30.0 Accounts payable 85.3 29.2 86.8 — 201.3 Accrued expenses and other 175.1 18.9 78.4 — 272.4 Intercompany payables 360.4 401.0 392.4 (1,153.8 ) — Long-term debt 1,803.2 — 0.5 — 1,803.7 Other long-term liabilities 252.7 0.8 49.3 — 302.8 Total liabilities 2,706.6 449.9 618.8 (1,153.8 ) 2,621.5 Stockholder’s deficiency (491.6 ) 332.6 274.7 (607.3 ) (491.6 ) Total liabilities and stockholder’s deficiency $ 2,215.0 $ 782.5 $ 893.5 $ (1,761.1 ) $ 2,129.9 (a) In January 2015, a newly-formed U.S.-domiciled entity in the Professional segment became an additional guarantor under Products Corporation’s Amended Term Loan Facility, Amended Revolving Credit Facility and the indenture for Products Corporation’s 5¾% Senior Notes. In connection with the CBB Acquisition, in May 2015 the Company’s newly-formed U.S.-domiciled subsidiary, RML, LLC, also became an additional guarantor under such debt instruments. Condensed Consolidating Balance Sheets As of December 31, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 104.2 $ 88.1 $ 83.0 $ — $ 275.3 Trade receivables, less allowances for doubtful accounts 87.8 39.7 111.4 — 238.9 Inventories 75.5 30.6 50.5 — 156.6 Deferred income taxes - current 46.2 — 12.2 — 58.4 Prepaid expenses and other 119.0 6.2 24.8 — 150.0 Intercompany receivables 992.5 630.0 129.6 (1,752.1 ) — Investment in subsidiaries 562.8 (161.4 ) — (401.4 ) — Property, plant and equipment, net 112.4 28.0 71.6 — 212.0 Deferred income taxes - noncurrent 22.6 — 12.2 — 34.8 Goodwill 185.8 30.0 248.3 — 464.1 Intangible assets, net 53.2 164.6 110.0 — 327.8 Other assets 83.2 2.9 27.2 — 113.3 Total assets $ 2,445.2 $ 858.7 $ 880.8 $ (2,153.5 ) $ 2,031.2 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 6.6 $ — $ 6.6 Current portion of long-term debt 31.5 — — — 31.5 Accounts payable 68.3 19.0 66.2 — 153.5 Accrued expenses and other 159.0 24.5 89.8 — 273.3 Intercompany payables 672.9 703.6 375.6 (1,752.1 ) — Long-term debt 1,831.7 — 0.7 — 1,832.4 Other long-term liabilities 238.8 4.4 47.7 — 290.9 Total liabilities 3,002.2 751.5 586.6 (1,752.1 ) 2,588.2 Stockholder’s deficiency (557.0 ) 107.2 294.2 (401.4 ) (557.0 ) Total liabilities and stockholder’s deficiency $ 2,445.2 $ 858.7 $ 880.8 $ (2,153.5 ) $ 2,031.2 Condensed Consolidating Statements of Income and Comprehensive Income Twelve Months Ended December 31, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 1,049.4 $ 340.4 $ 730.7 $ (206.2 ) $ 1,914.3 Cost of sales 466.0 129.4 278.6 (206.2 ) 667.8 Gross profit 583.4 211.0 452.1 — 1,246.5 Selling, general and administrative expenses 495.0 131.2 367.3 — 993.5 Acquisition and integration costs 7.1 — 0.9 — 8.0 Restructuring charges and other, net 6.6 0.4 3.5 — 10.5 Impairment Charge 9.7 — — — 9.7 Operating income 65.0 79.4 80.4 — 224.8 Other expenses (income): Intercompany interest, net (8.2 ) (0.1 ) 8.3 — — Interest expense 82.5 — 0.8 — 83.3 Amortization of debt issuance costs 5.7 — — — 5.7 Foreign currency (gains) losses, net 0.4 (0.6 ) 15.9 — 15.7 Miscellaneous, net (54.2 ) (0.1 ) 54.7 — 0.4 Other expenses (income), net 26.2 (0.8 ) 79.7 — 105.1 Income (loss) from continuing operations before income taxes 38.8 80.2 0.7 — 119.7 Provision for income taxes 16.0 36.2 2.2 — 54.4 (Loss) income from continuing operations 22.8 44.0 (1.5 ) — 65.3 Income (loss) from discontinued operations, net of taxes — — (3.2 ) — (3.2 ) Equity in income of subsidiaries 39.3 43.1 — (82.4 ) — Net income (loss) $ 62.1 $ 87.1 $ (4.7 ) $ (82.4 ) $ 62.1 Other comprehensive (loss) income (2.1 ) (1.5 ) (18.8 ) 20.3 (2.1 ) Total comprehensive (loss) income $ 60.0 $ 85.6 $ (23.5 ) $ (62.1 ) $ 60.0 (a) In January 2015, a newly-formed U.S.-domiciled entity in the Professional segment became an additional guarantor under Products Corporation’s Amended Term Loan Facility, Amended Revolving Credit Facility and the indenture for Products Corporation’s 5¾% Senior Notes. In connection with the CBB Acquisition, in May 2015 the Company’s newly-formed U.S.-domiciled subsidiary, RML, LLC, also became an additional guarantor under such debt instruments. Condensed Consolidating Statements of Income and Comprehensive Income Twelve Months Ended December 31, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 1,001.1 $ 356.8 $ 771.5 $ (188.4 ) $ 1,941.0 Cost of sales 430.5 146.9 279.3 (188.4 ) 668.3 Gross profit 570.6 209.9 492.2 — 1,272.7 Selling, general and administrative expenses 466.6 133.3 399.8 — 999.7 Acquisition and integration costs 6.4 — — — 6.4 Restructuring charges and other, net 2.9 3.3 15.1 — 21.3 Operating income 94.7 73.3 77.3 — 245.3 Other expenses (income): Intercompany interest, net (8.0 ) (0.4 ) 8.4 — — Interest expense 83.6 0.1 0.7 — 84.4 Amortization of debt issuance costs 5.5 — — — 5.5 Loss on extinguishment of debt, net 2.0 — — — 2.0 Foreign currency (gains) losses, net (3.1 ) (0.1 ) 28.2 — 25.0 Miscellaneous, net (48.0 ) (8.2 ) 57.4 — 1.2 Other expenses (income), net 32.0 (8.6 ) 94.7 — 118.1 Income (loss) from continuing operations before income taxes 62.7 81.9 (17.4 ) — 127.2 Provision for income taxes 85.8 (8.4 ) 3.8 — 81.2 (Loss) income from continuing operations (23.1 ) 90.3 (21.2 ) — 46.0 Income (loss) from discontinued operations, net of taxes 0.2 — 1.1 — 1.3 Equity in income of subsidiaries 70.2 1.5 — (71.7 ) — Net income (loss) $ 47.3 $ 91.8 $ (20.1 ) $ (71.7 ) $ 47.3 Other comprehensive (loss) income (93.4 ) 9.3 (15.8 ) 6.5 (93.4 ) Total comprehensive (loss) income $ (46.1 ) $ 101.1 $ (35.9 ) $ (65.2 ) $ (46.1 ) Condensed Consolidating Statements of Income and Comprehensive Income Twelve Months Ended December 31, 2013 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 972.8 $ 90.5 $ 626.6 $ (195.2 ) $ 1,494.7 Cost of sales 438.4 45.6 256.3 (195.2 ) 545.1 Gross profit 534.4 44.9 370.3 — 949.6 Selling, general and administrative expenses 418.1 37.8 267.7 — 723.6 Acquisition and integration costs 24.2 — 1.2 — 25.4 Restructuring charges and other, net — 0.4 3.1 — 3.5 Operating income 92.1 6.7 98.3 — 197.1 Other expenses (income): Intercompany interest, net (0.8 ) (0.6 ) 6.2 — 4.8 Interest expense 72.9 0.3 0.6 — 73.8 Amortization of debt issuance costs 3.5 — — — 3.5 Loss on extinguishment of debt, net 29.7 — — — 29.7 Foreign currency losses (gains), net 3.2 1.3 (0.8 ) — 3.7 Miscellaneous, net (2.4 ) (11.5 ) 14.9 — 1.0 Other expenses (income), net 106.1 (10.5 ) 20.9 — 116.5 (Loss) income from continuing operations before income taxes (14.0 ) 17.2 77.4 — 80.6 Provision for income taxes 39.9 0.3 8.4 — 48.6 (Loss) Income from continuing operations (53.9 ) 16.9 69.0 — 32.0 Income (loss) from discontinued operations, net of taxes 0.3 — (30.7 ) — (30.4 ) Equity in income of subsidiaries 55.2 24.6 — (79.8 ) — Net income (loss) $ 1.6 $ 41.5 $ 38.3 $ (79.8 ) $ 1.6 Other comprehensive income (loss) 58.4 16.7 10.2 (26.9 ) 58.4 Total comprehensive income (loss) $ 60.0 $ 58.2 $ 48.5 $ (106.7 ) $ 60.0 Condensed Consolidating Statements of Cash Flows Twelve Months Ended December 31, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 89.1 $ 7.9 $ 58.3 $ — $ 155.3 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (29.5 ) (5.5 ) (13.3 ) — (48.3 ) Business acquisitions, net of cash and cash required (8.1 ) — (33.6 ) — (41.7 ) Proceeds from the sale of certain assets 3.5 2.7 — — 6.2 Net cash used in investing activities (34.1 ) (2.8 ) (46.9 ) — (83.8 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase in short-term borrowings and overdraft 17.3 — 5.7 — 23.0 Repayments under the Acquisition Term Loan (19.3 ) — — — (19.3 ) Prepayments under the 2011 Term Loan (12.1 ) — — — (12.1 ) Other financing activities (3.6 ) — (0.1 ) — (3.7 ) Net cash (used in) provided by financing activities (17.7 ) — 5.6 — (12.1 ) Effect of exchange rate changes on cash and cash equivalents — (0.2 ) (7.6 ) — (7.8 ) Net increase in cash and cash equivalents 37.3 4.9 9.4 — 51.6 Cash and cash equivalents at beginning of period 104.2 88.1 83.0 — 275.3 Cash and cash equivalents at end of period $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 (a) In January 2015, a newly-formed U.S.-domiciled entity in the Professional segment became an additional guarantor under Products Corporation’s Amended Term Loan Facility, Amended Revolving Credit Facility and the indenture for Products Corporation’s 5¾% Senior Notes. In connection with the CBB Acquisition, in May 2015 the Company’s newly-formed U.S.-domiciled subsidiary, RML, LLC, also became an additional guarantor under such debt instruments. Condensed Consolidating Statements of Cash Flows Twelve Months Ended December 31, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 77.3 $ 78.0 $ 18.7 $ — $ 174.0 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (40.3 ) (2.4 ) (12.8 ) — (55.5 ) Proceeds from the sale of certain assets — — 3.4 — 3.4 Net cash used in investing activities (40.3 ) (2.4 ) (9.4 ) — (52.1 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net (decrease) increase in short-term borrowings and overdraft (4.2 ) (1.9 ) 1.4 — (4.7 ) Repayment of Non-Contributed Loan (58.4 ) — — — (58.4 ) Repayments under the Acquisition Term Loan (7.0 ) — — — (7.0 ) Payment of financing costs (1.8 ) — — — (1.8 ) Other financing activities (2.7 ) — (0.5 ) — (3.2 ) Net cash (used in) provided by financing activities (74.1 ) (1.9 ) 0.9 — (75.1 ) Effect of exchange rate changes on cash and cash equivalents — (0.1 ) (15.5 ) — (15.6 ) Net (decrease) increase in cash and cash equivalents (37.1 ) 73.6 (5.3 ) — 31.2 Cash and cash equivalents at beginning of period (a) 141.3 14.5 88.3 — 244.1 Cash and cash equivalents at end of period $ 104.2 $ 88.1 $ 83.0 $ — $ 275.3 (a) In January 2014, Colomer's U.S. subsidiaries became additional guarantors under Products Corporation's Amended Credit Agreements and 5¾% Senior Notes. Accordingly, for cash flow presentation purposes, the cash and cash equivalents at the beginning of the period associated with Colomer's U.S. subsidiaries have been reported under Guarantor Subsidiaries. Condensed Consolidating Statements of Cash Flows Twelve Months Ended December 31, 2013 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 76.9 $ 4.6 $ 41.8 $ — 123.3 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (21.1 ) (0.6 ) — (6.9 ) — (28.6 ) Business acquisition, net of cash and cash equivalents acquired (627.6 ) — — — (627.6 ) Insurance proceeds for property, plant and equipment — — 13.1 — 13.1 Proceeds from the sale of certain assets 0.3 — 3.4 — 3.7 Net cash (used in) provided by investing activities (648.4 ) (0.6 ) 9.6 — (639.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net (decrease) increase in short-term borrowings and overdraft (2.0 ) (3.2 ) (1.1 ) — (6.3 ) Borrowings under the Acquisition Term Loan 698.3 — — — 698.3 Proceeds from the issuance of the 5¾% Senior Notes 500.0 — — — 500.0 Repayment of the 9¾% Senior Secured Notes (330.0 ) — — — (330.0 ) Repayment under the 2011 Term Loan Facility (113.0 ) — — — (113.0 ) Repayment of the Contributed Loan (48.6 ) — — — (48.6 ) Payment of financing costs (48.8 ) — — — (48.8 ) Other financing activities (2.2 ) — (0.4 ) — (2.6 ) Net cash provided by (used in) financing activities 653.7 (3.2 ) — (1.5 ) — — — 649.0 Effect of exchange rate changes on cash and cash equivalents — — (5.1 ) — (5.1 ) Net increase in cash and cash equivalents 82.2 0.8 — 44.8 — — — 127.8 Cash and cash equivalents at beginning of period 59.1 — 57.2 — 116.3 Cash and cash equivalents at end of period 141.3 0.8 — 102.0 — — — 244.1 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS - 10K | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II REVLON CONSUMER PRODUCTS CORPORATION AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Years Ended December 31, 2015, 2014 and 2013 (dollars in millions) Balance at Beginning of Year Charged to Cost and Expenses Other Deductions Balance at End of Year Allowance for Doubtful Accounts: 2015 $ 9.3 $ 2.8 $ (1.6 ) $ 10.5 2014 4.2 8.4 (3.3 ) 9.3 2013 3.5 1.6 (0.9 ) 4.2 Allowance for Volume and Early Payment Discounts: 2015 $ 23.4 $ 51.6 $ (52.4 ) $ 22.6 2014 12.1 84.7 (73.4 ) 23.4 2013 14.6 57.6 (60.1 ) 12.1 Allowance for Sales Returns: 2015 $ 45.4 $ 48.5 $ (54.6 ) $ 39.3 2014 53.1 64.3 (72.0 ) 45.4 2013 54.5 77.8 (79.2 ) 53.1 |
DESCRIPTION OF BUSINESS AND S56
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - 10K (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Consolidation | The accompanying Consolidated Financial Statements include the Company's accounts after the elimination of all material intercompany balances and transactions. | |
Reclassifications | Certain prior year amounts in the Consolidated Financial Statements have been reclassified to conform to the current period's presentation. | Certain prior year amounts have been reclassified to conform to the current year presentation. |
Basis of Presentation | The preparation of the Company's Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Consolidated Financial Statements include, but are not limited to, allowances for doubtful accounts, inventory valuation reserves, expected sales returns and allowances, trade support costs, certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets, income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities, restructuring costs, certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. The Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 26, 2016 (the "2015 Form 10-K"). The Company's results of operations and financial position for interim periods are not necessarily indicative of those to be expected for a full year. | The preparation of the Company's Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Consolidated Financial Statements include, but are not limited to, allowances for doubtful accounts, inventory valuation reserves, expected sales returns and allowances, trade support costs, certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets, income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities, restructuring costs, certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. |
Discontinued Operations Presentation | As a result of the Company's decision on December 30, 2013 to exit its direct manufacturing, warehousing and sales business operations in mainland China, the Company has reported the results of its former China operations within (loss) income from discontinued operations, net of taxes in the Company's Consolidated Statements of Income and Comprehensive Income (Loss) for all periods presented. See Note 4, "Discontinued Operations," for further discussion. | |
Cash and Cash Equivalents | Cash equivalents are primarily investments in high-quality, short-term money market instruments with original maturities of three months or less and are carried at cost, which approximates fair value. | |
Trade Receivables | Trade receivables represent payments due to the Company for previously recognized net sales, reduced by an allowance for doubtful accounts for balances which are estimated to be uncollectible at December 31, 2015 and 2014 | |
Inventories | Inventories are stated at the lower of cost or market value. Cost is based on standard cost and production variances, which approximates actual cost on the first-in, first-out method. Cost components include direct materials, direct labor and direct overhead, as well as in-bound freight. The Company records adjustments to the value of inventory based upon its forecasted plans to sell products included in inventory, as well as planned product discontinuances. The physical condition (e.g., age and quality) of the inventories is also considered in establishing its valuation. These adjustments are estimates, which could vary significantly, either favorably or unfavorably, from the amounts that the Company may ultimately realize upon the disposition of inventories if future economic conditions, customer inventory levels, product discontinuances, sales return levels or competitive conditions differ from the Company's estimates and expectations. | |
Property, Plant and Equipment | Property, plant and equipment is recorded at cost and is depreciated on a straight-line basis over the estimated useful lives of such assets as follows: land improvements, 20 to 30 years; buildings and improvements, 5 to 50 years; machinery and equipment, 3 to 15 years; office furniture and fixtures, 3 to 15 years; and capitalized software, 2 to 10 years. Leasehold improvements and building improvements are amortized over their estimated useful lives or the terms of the leases or remaining life of the original structure, respectively, whichever is shorter. Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements are capitalized. See Note 7, “Property, Plant and Equipment" for further discussion. | |
Other Assets | Included in other assets are permanent wall displays amounting to $65.6 million and $63.3 million as of December 31, 2015 and 2014 , respectively, which are amortized generally over a period of 1 to 3 years. In the event of product discontinuances, from time to time the Company may accelerate the amortization of related permanent wall displays based on the estimated remaining useful life of the asset. Amortization expense for permanent wall displays was $41.3 million , $42.5 million and $39.2 million for 2015 , 2014 and 2013 , respectively. The Company has also included, in other assets, net deferred financing costs related to the issuance of the Company’s debt instruments amounting to $21.3 million and $26.9 million as of December 31, 2015 and 2014 , respectively, which are amortized over the terms of the related debt instruments using the effective-interest method. | |
Impairment of Long-Lived Assets | Long-lived assets, including property, plant and equipment and finite-lived intangibles, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, the Company estimates the undiscounted future cash flows (excluding interest) resulting from the use of the asset and its ultimate disposition. If the sum of the undiscounted cash flows (excluding interest) is less than the carrying value, the Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the fair value of the asset. | |
Goodwill | Goodwill represents the excess purchase price for businesses acquired over the fair value of net assets acquired. Goodwill is not amortized, but rather is reviewed annually for impairment at the reporting unit level using September 30th carrying values, or when there is evidence that events or changes in circumstances indicate that the Company’s carrying amount may not be recovered. For 2015, in assessing whether goodwill was impaired in connection with its annual impairment test performed as of September 30th, the Company utilized the two-step process as prescribed by Accounting Standards Codification ("ASC") 350, Intangibles - Goodwill and Other . In the first step of this test, the Company compared the fair value of each of the Company's four reporting units, determined based upon discounted estimated future cash flows, to the carrying amount of such reporting unit, including goodwill. Where the fair value of such reporting unit exceeded the carrying amount, no further work was required and no impairment loss was recognized. Where the carrying amount of the reporting unit exceeded the fair value, the goodwill of the reporting unit was considered potentially impaired and the Company performed step two of the goodwill impairment test to measure the amount of the impairment loss. As a result of the annual impairment test, the Company recognized a $9.7 million non-cash goodwill impairment charge in the fourth quarter of 2015. For 2014 and 2013, the Company performed qualitative assessments to determine whether it would be necessary to perform the two-step goodwill impairment test and to assess the Company's indefinite-lived intangible assets for indicators of impairment, and in each case determined that it is more likely than not that the fair value of each of the Company's reporting units and indefinite-lived intangible assets exceeded their carrying amounts for such reporting years. The Company did not record any impairment of goodwill during the years ended December 31, 2014 or 2013 as a result of its annual impairment test. See Note 2, “Business Combinations” and Note 8, “Goodwill and Intangible Assets, Net” for further discussion of the Company's goodwill and annual impairment test. | |
Intangible Assets, net | Intangible Assets, net, include trade names and trademarks, customer relationships, patents and internally developed intellectual property ("IP") and acquired licenses. Indefinite-lived intangible assets, consisting of certain trade names, are not amortized, but rather are tested for impairment annually on September 30th, similar to goodwill, and the Company recognizes an impairment if the carrying amount of its intangible assets exceeds its fair value. Intangible assets with finite useful lives are amortized over their respective estimated useful lives to their estimated residual values. The Company writes off the gross carrying amount and accumulated amortization for intangible assets in the year in which the asset becomes fully amortized. Finite-lived intangible assets are considered for impairment upon the occurrence of certain “triggering events” and the Company recognizes an impairment if the carrying amount of the asset group intangible asset exceeds the Company's estimate of its undiscounted future cash flows. There was no impairment of intangible assets in 2015, 2014 or 2013. | |
Revenue Recognition and Sales Returns | The Company's policy is to recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection is probable. The Company records revenue from the sale of its products when risk of loss and title to the product transfers to the customer. Net sales are comprised of gross revenues less expected product returns, trade discounts and customer allowances, which include costs associated with off-invoice mark-downs and other price reductions, as well as trade promotions and coupons. These incentive costs are recognized at the later of the date on which the Company recognizes the related revenue or the date on which the Company offers the incentive. The Company allows customers to return their unsold products if and when they meet certain Company-established criteria as set forth in the Company's trade terms. The Company regularly reviews and revises, when deemed necessary, its estimates of sales returns based primarily upon the historical rate of actual product returns, planned product discontinuances, new product launches and estimates of customer inventory and promotional sales. The Company records sales returns as a reduction to sales and cost of sales, and an increase to accrued liabilities and inventories. Returned products, which are recorded as inventories, are valued based upon the amount that the Company expects to realize upon their subsequent disposition. The physical condition and marketability of the returned products are the major factors considered by the Company in estimating their realizable value. Revenues derived from licensing arrangements, including any pre-payments, are recognized in the period in which they are earned, but not before the initial license term commences. | |
Cost of Sales | Cost of sales includes all of the costs to manufacture the Company's products. For products manufactured in the Company's own facilities, such costs include raw materials and supplies, direct labor and factory overhead. For products manufactured for the Company by third-party contractors, such cost represents the amounts invoiced by the contractors. Cost of sales also includes the cost of refurbishing products returned by customers that will be offered for resale and the cost of inventory write-downs associated with adjustments of held inventories to their net realizable value. These costs are reflected in the Company’s consolidated statements of income (loss) and comprehensive income (loss) when the product is sold and net sales revenues are recognized or, in the case of inventory write-downs, when circumstances indicate that the carrying value of inventories is in excess of their recoverable value. Additionally, cost of sales reflects the costs associated with any free products included as sales and promotional incentives. These incentive costs are recognized on the later of the date that the Company recognizes the related revenue or the date on which the Company offers the incentive. | |
Selling, General and Administrative Expenses | Selling, general and administrative (“SG&A”) expenses include expenses to advertise the Company's products, such as television advertising production costs and air-time costs, print advertising costs, digital marketing costs, promotional displays and consumer promotions. SG&A expenses also include the amortization of permanent wall displays and finite-lived intangible assets, depreciation of certain fixed assets, distribution costs (such as freight and handling), non-manufacturing overhead (principally personnel and related expenses), selling and trade educations fees, insurance and professional service fees. | |
Advertising | Advertising within SG&A expenses includes television, print, digital marketing and other advertising production costs which are expensed the first time the advertising takes place. The costs of promotional displays are expensed in the period in which they are shipped to customers.The Company also has various arrangements with customers pursuant to its trade terms to reimburse them for a portion of their advertising costs, which provide advertising benefits to the Company. Additionally, from time to time the Company may pay fees to customers in order to expand or maintain shelf space for its products. The costs that the Company incurs for "cooperative" advertising programs, end cap placement, shelf placement costs, slotting fees and marketing development funds, if any, are expensed as incurred and are recorded as a reduction within net sales. | |
Distribution Costs | Costs associated with product distribution, such as freight and handling costs, are recorded within SG&A expenses when incurred. | |
Income Taxes | Income taxes are calculated using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, as well as for operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes the effect of a change in income tax rates on deferred tax assets and liabilities in income in the period that includes the enactment date. The Company records valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company recognizes a tax position in its financial statements when it is more likely than not that the position will be sustained upon examination, based on the merits of such position. The Company recognizes liabilities for unrecognized tax positions in the U.S. and other tax jurisdictions based on an estimate of whether and the extent to which additional taxes will be due. If payment of these amounts is ultimately not required, the reversal of the liabilities would result in additional tax benefits recognized in the period in which the Company determines that the liabilities are no longer required. If the estimate of tax liabilities is ultimately less than the final assessment, this will result in a further charge to expense. The Company recognizes interest and penalties related to income tax matters in income tax expense. | |
Research and Development | Research and development expenditures are expensed as incurred and included within SG&A expenses. | |
Foreign Currency Translation | Assets and liabilities of foreign operations, whose functional currency is the local currency, are translated into U.S. Dollars at the rates of exchange in effect at the balance sheet date. Income and expense items are translated at the weighted average exchange rates prevailing during each period presented. Gains and losses resulting from foreign currency transactions are included in the results of operations. Gains and losses resulting from translation of financial statements of foreign subsidiaries and branches operating in non-hyperinflationary economies are recorded as a component of accumulated other comprehensive loss until either the sale or upon the complete or substantially complete liquidation by the Company of its investment in a foreign entity. To the extent that foreign subsidiaries and branches operate in hyperinflationary economies, non-monetary assets and liabilities are translated at historical rates and translation adjustments are included in the Company's results of operations. Venezuela - Highly-Inflationary Economy : Effective January 1, 2010, Venezuela was designated as a highly inflationary economy under U.S. GAAP. As a result, beginning January 1, 2010, the U.S. Dollar is the functional currency for the Company’s subsidiary in Venezuela (“Revlon Venezuela”). As Venezuela is designated as highly inflationary, foreign currency translation adjustments of Revlon Venezuela’s balance sheet have been reflected in the Company's earnings. Venezuela - Foreign Currency Restrictions : Foreign currency restrictions enacted by the Venezuelan government since 2003 have become more restrictive and have had an impact on Revlon Venezuela’s ability to obtain U.S. Dollars in exchange for Venezuelan Bolivars ("Bolivars") at the official foreign exchange rates from the Venezuelan government and its foreign exchange commission, the Comisión de Administracion de Divisas (“CADIVI”). In May 2010, the Venezuelan government took control over the previously freely-traded foreign currency exchange market and, in June 2010, replaced it with a new foreign currency exchange system, the Sistema de Transacciones en Moneda Extranjera (“SITME”). In the second quarter of 2011, the Company began using a SITME rate of 5.5 Bolivars per U.S. Dollar (the "SITME Rate") to translate Revlon Venezuela’s financial statements, as this was the rate at which the Company accessed U.S. Dollars in the SITME market during this period. Through December 31, 2012, the Company continued using the SITME Rate to translate Revlon Venezuela’s financial statements. Venezuela - 2013 Foreign Currency Devaluation : In February 2013, the Venezuelan government announced the devaluation of Bolivars relative to the U.S. Dollar, changing the official exchange rate to 6.3 Bolivars per U.S. Dollar (the "Official Rate"). The Venezuelan government also announced that the SITME currency market administered by the central bank would be eliminated, and as a result, the Company began using the Official Rate to translate Revlon Venezuela’s financial statements beginning in 2013 . To reflect the impact of the foreign currency devaluation, the Company recorded a foreign currency loss of $0.6 million in earnings in the first quarter of 2013 as a result of the required re-measurement of Revlon Venezuela’s monetary assets and liabilities. Venezuela - 2014 Foreign Currency Devaluation : In January 2014, the Venezuela government announced that the CADIVI would be replaced by the government-operated National Center of Foreign Commerce (the "CENCOEX"), and indicated that the Sistema Complementario de Administración de Divisas (“SICAD”) market would continue to be offered as an alternative foreign currency exchange. Additionally, a parallel foreign currency exchange system, SICAD II, started functioning in March 2014 and allowed companies to apply for the purchase of foreign currency and foreign currency denominated securities for any legal use or purpose. Throughout 2014, the Company exchanged Bolivars for U.S. Dollars to the extent permitted through the various foreign currency markets available based on its ability to participate in those markets. Prior to June 30, 2014, the Company utilized the Official Rate. Following a consideration of the Company's specific facts and circumstances, which included its legal ability and intent to participate in the SICAD II exchange market to import finished goods into Venezuela, the Company determined that it was appropriate to utilize the SICAD II rate of 53 Bolivars per U.S. Dollar (the "SICAD II Rate") to translate Revlon Venezuela’s financial statements beginning on June 30, 2014. As a result, the Company recorded a foreign currency loss of $6.0 million in the second quarter of 2014 related to the required re-measurement of Revlon Venezuela’s monetary assets and liabilities. Venezuela - 2015 Foreign Currency Devaluation : In February 2015, the Venezuela government introduced a new foreign currency exchange platform, the Marginal Currency System ("SIMADI"), which created a third new mechanism to exchange Bolivars for U.S. Dollars through private brokers. SIMADI replaced the SICAD II system and started operating on February 12, 2015. As a result, the Company considered its specific facts and circumstances in order to determine the appropriate rate of exchange to translate Revlon Venezuela’s financial statements. Through December 31, 2015, the Company has not participated in the SIMADI exchange market; however, given the elimination of the SICAD II system, the Company determined that it was appropriate to use the SIMADI rate of 193 Bolivars per U.S. Dollar (the "SIMADI Rate") to translate Revlon Venezuela’s balance sheet beginning on March 31, 2015. As a result of the change from the SICAD II Rate to the SIMADI Rate, on March 31, 2015 the Company was required to re-measure all of Revlon Venezuela’s monetary assets and liabilities at the SIMADI Rate. The Company recorded a foreign currency loss of $1.9 million in the first quarter of 2015 as a result of the required re-measurement of Revlon Venezuela’s balance sheet. During the second quarter of 2015, the Company exited its business operations in Venezuela and changed to a distributor model. As a result of the change from the SICAD II Rate to the SIMADI Rate, on March 31, 2015 the Company was required to re-measure all of Revlon Venezuela’s monetary assets and liabilities at the SIMADI Rate. The Company recorded a foreign currency loss of $1.9 million | |
Stock-Based Compensation | The Company recognizes stock-based compensation costs for its restricted stock, measured at the fair value of each award at the time of grant, as an expense over the period during which an employee is required to provide service. Upon the vesting of restricted stock, any resulting tax benefits are recognized in additional paid-in-capital. Any resulting tax deficiencies are recognized in the consolidated statements of income and comprehensive income (loss) as tax expense to the extent that the tax deficiency amount exceeds any existing additional paid-in-capital resulting from previously realized excess tax benefits from previous awards. The Company reflects such excess tax benefits as cash flows from financing activities in the consolidated statements of cash flows. | |
Derivative Financial Instruments | The Company is exposed to certain risks relating to its ongoing business operations. The Company uses derivative financial instruments, including: (i) foreign currency forward exchange contracts (“FX Contracts”) intended for the purpose of managing foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on the Company’s net cash flows; and (ii) interest rate hedging transactions intended for the purpose of managing interest rate risk associated with Products Corporation’s variable rate indebtedness. Foreign Currency Forward Exchange Contracts Products Corporation enters into FX Contracts primarily to hedge the anticipated net cash flows resulting from inventory purchases and intercompany payments denominated in currencies other than the local currencies of the Company’s foreign and domestic operations and generally have maturities of less than one year. The Company does not apply hedge accounting to its FX Contracts. The Company records FX Contracts in its consolidated balance sheet at fair value and immediately recognizes changes in fair value in earnings. Fair value of the Company’s FX Contracts is determined by using observable market transactions of spot and forward rates. See Note 13, “Financial Instruments” for further discussion of the Company's FX Contracts. Interest Rate Swap In November 2013, Products Corporation executed the 2013 Interest Rate Swap (as hereinafter defined), which has been designated as a cash flow hedge of the variability of the forecasted three-month LIBOR interest rate payments related to its Acquisition Term Loan (as hereinafter defined). The Company records changes in the fair value of cash flow hedges that are designated as effective instruments as a component of accumulated other comprehensive loss. The Company immediately recognizes any ineffectiveness in such cash flow hedges in earnings. The Company recognizes gains and losses deferred in accumulated other comprehensive loss in current-period earnings when earnings are affected by the variability of cash flows of the hedged forecasted transaction. See Note 13, “Financial Instruments” for further discussion of the Company's 2013 Interest Rate Swap. | |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," which requires deferred income tax assets and liabilities to be classified as noncurrent within a company's balance sheet. Under previous guidance, the Company was required to separate deferred income tax assets and liabilities into current and noncurrent amounts. Netting deferred tax assets and deferred tax liabilities by tax jurisdiction is still required under ASU 2015-17. The Company adopted ASU No. 2015-17 beginning on January 1, 2016 and the Company's previously recorded deferred tax assets were adjusted to reflect the adoption of ASU No. 2015-17. The adoption of ASU No. 2015-17 resulted in no adjustment to the Company’s results of operations and stockholder's deficiency and had the following impact on the previously reported Consolidated Balance Sheets for the fiscal year ended December 31, 2015 and the Consolidated Statements of Cash Flows for the fiscal period ended June 30, 2015: Consolidated Balance Sheets Total as reported at 12/31/2015 Adjustment Total as adjusted at 12/31/2015 Deferred income taxes - current 58.0 (58.0 ) — Deferred income taxes - noncurrent 38.5 11.3 49.8 Other long-term liabilities 117.5 (46.7 ) 70.8 Consolidated Statements of Cash Flows Total as reported at 6/30/2015 Adjustment Total as adjusted at 6/30/2015 Increase in prepaid expense and other current assets (25.2 ) 0.1 (25.1 ) Decrease in accrued expenses and other current liabilities (25.4 ) (0.1 ) (25.5 ) In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments," which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU No. 2015-16 beginning on January 1, 2016 and the adoption of the new guidance did not have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. Consolidated Balance Sheets Total as reported at 12/31/2015 Adjustment Total as adjusted at 12/31/2015 Long-Term Debt 1,803.7 (20.0 ) 1,783.7 Other Assets 104.1 (20.0 ) 84.1 In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," that will explicitly require management to assess an entity's ability to continue as a going concern and to provide related footnote disclosures if conditions give rise to substantial doubt. According to ASU No. 2014-15, substantial doubt exists if it is probable that the entity will be unable to meet its obligations within one year after the issuance date. The likelihood threshold of "probable," similar to its current use in U.S. GAAP for loss contingencies, will be used to define substantial doubt. Disclosures will be required under ASU No. 2014-15 if conditions give rise to substantial doubt, including whether and how management's plans will alleviate the substantial doubt. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption prohibited. The Company adopted ASU No. 2014-15 beginning January 1, 2016 and the adoption of the new guidance did not have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. Recently Issued Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which simplifies certain aspects of accounting for share-based payment transactions including transactions in which an employee uses shares to satisfy the employer’s minimum statutory income tax withholding obligation, forfeitures and income taxes when awards vest or are settled. The guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company expects to adopt ASU No. 2016-09 beginning on January 1, 2017 and is in the process of assessing the impact that the new guidance will have on the Company’s results of operations, financial condition and financial statement disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" which requires lessees to recognize a right-of-use asset and a liability on the balance sheet for all leases, with the exception of short-term leases. The lease liability will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to adjustment such as for initial direct costs. Leases will continue to be classified as either operating or finance leases in the income statement. The guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company expects to adopt ASU No. 2016-02 beginning on January 1, 2019 and is in the process of assessing the impact that the new guidance will have on the Company’s results of operations, financial condition and financial statement disclosures. | Recently Adopted Accounting Pronouncements In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which changes the requirements for reporting discontinued operations under Accounting Standards Codification Topic 205. Under ASU No. 2014-08, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The standard states that a strategic shift could include a disposal of: (i) a major geographical area of operations; (ii) a major line of business; (iii) a major equity method investment; or (iv) other major parts of an entity. ASU No. 2014-08 no longer precludes presentation as a discontinued operation if: (i) there are operations and cash flows of the component that have not been eliminated from the reporting entity’s ongoing operations; or (ii) there is significant continuing involvement with a component after its disposal. Additional disclosures about discontinued operations are also required. The guidance is effective for annual periods beginning on or after December 15, 2014, and is applied prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The Company adopted ASU No. 2014-08 on a prospective basis beginning on January 1, 2015, and such adoption did not have an impact on the Company's results of operations, financial condition and/or financial statement disclosures. Recently Issued Accounting Pronouncements In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," which requires deferred income tax assets and liabilities to be classified as noncurrent within a company's balance sheet. Currently, the Company is required to separate deferred income tax assets and liabilities into current and noncurrent amounts on its classified balance sheet, and this update will simplify the presentation by requiring a single, noncurrent amount. The guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU No. 2015-17 beginning on January 1, 2016 and the adoption of the new guidance is not expected to have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments," which eliminates the current requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU No. 2015-16 beginning on January 1, 2016 and the adoption of the new guidance is not expected to have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. In July 2015, the FASB issued ASU No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory," which simplifies the subsequent measurement of inventories by requiring inventory to be measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company expects to adopt ASU No. 2015-11 beginning on January 1, 2017. The Company is evaluating the impact that the new guidance will have on the Company’s results of operations, financial condition and financial statement disclosures. In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which requires debt issuance costs to be presented in the financial statements as a deduction from the corresponding debt liability, consistent with the presentation of debt discounts. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption permitted, and is to be applied retrospectively. The Company adopted ASU No. 2015-03 beginning on January 1, 2016 and the adoption of the new guidance is not expected to have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers," which supersedes the revenue recognition requirements in the ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of ASU No. 2014-09 is for companies to recognize revenue from the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. ASU No. 2014-09 also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. The guidance is effective for annual and interim periods beginning after December 15, 2017, with early adoption prohibited. The Company expects to adopt ASU No. 2014-09 beginning January 1, 2018 and is in the process of assessing the impact that the new guidance will have on the Company's results of operations, financial condition and financial statement disclosures. In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," that will explicitly require management to assess an entity's ability to continue as a going concern and to provide related footnote disclosures if conditions give rise to substantial doubt. According to ASU No. 2014-15, substantial doubt exists if it is probable that the entity will be unable to meet its obligations within one year after the issuance date. The likelihood threshold of "probable", similar to its current use in U.S. GAAP for loss contingencies, will be used to define substantial doubt. Disclosures will be required under ASU No. 2014-15 if conditions give rise to substantial doubt, including whether and how management's plans will alleviate the substantial doubt. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption prohibited. The Company adopted ASU No. 2014-15 beginning January 1, 2016 and the adoption of the new guidance is not expected to have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. |
DESCRIPTION OF BUSINESS AND S57
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Q2 (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of Presentation | The preparation of the Company's Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Consolidated Financial Statements include, but are not limited to, allowances for doubtful accounts, inventory valuation reserves, expected sales returns and allowances, trade support costs, certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets, income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities, restructuring costs, certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. The Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 26, 2016 (the "2015 Form 10-K"). The Company's results of operations and financial position for interim periods are not necessarily indicative of those to be expected for a full year. | The preparation of the Company's Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Consolidated Financial Statements include, but are not limited to, allowances for doubtful accounts, inventory valuation reserves, expected sales returns and allowances, trade support costs, certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets, income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities, restructuring costs, certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. |
Reclassifications | Certain prior year amounts in the Consolidated Financial Statements have been reclassified to conform to the current period's presentation. | Certain prior year amounts have been reclassified to conform to the current year presentation. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," which requires deferred income tax assets and liabilities to be classified as noncurrent within a company's balance sheet. Under previous guidance, the Company was required to separate deferred income tax assets and liabilities into current and noncurrent amounts. Netting deferred tax assets and deferred tax liabilities by tax jurisdiction is still required under ASU 2015-17. The Company adopted ASU No. 2015-17 beginning on January 1, 2016 and the Company's previously recorded deferred tax assets were adjusted to reflect the adoption of ASU No. 2015-17. The adoption of ASU No. 2015-17 resulted in no adjustment to the Company’s results of operations and stockholder's deficiency and had the following impact on the previously reported Consolidated Balance Sheets for the fiscal year ended December 31, 2015 and the Consolidated Statements of Cash Flows for the fiscal period ended June 30, 2015: Consolidated Balance Sheets Total as reported at 12/31/2015 Adjustment Total as adjusted at 12/31/2015 Deferred income taxes - current 58.0 (58.0 ) — Deferred income taxes - noncurrent 38.5 11.3 49.8 Other long-term liabilities 117.5 (46.7 ) 70.8 Consolidated Statements of Cash Flows Total as reported at 6/30/2015 Adjustment Total as adjusted at 6/30/2015 Increase in prepaid expense and other current assets (25.2 ) 0.1 (25.1 ) Decrease in accrued expenses and other current liabilities (25.4 ) (0.1 ) (25.5 ) In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments," which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU No. 2015-16 beginning on January 1, 2016 and the adoption of the new guidance did not have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. Consolidated Balance Sheets Total as reported at 12/31/2015 Adjustment Total as adjusted at 12/31/2015 Long-Term Debt 1,803.7 (20.0 ) 1,783.7 Other Assets 104.1 (20.0 ) 84.1 In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," that will explicitly require management to assess an entity's ability to continue as a going concern and to provide related footnote disclosures if conditions give rise to substantial doubt. According to ASU No. 2014-15, substantial doubt exists if it is probable that the entity will be unable to meet its obligations within one year after the issuance date. The likelihood threshold of "probable," similar to its current use in U.S. GAAP for loss contingencies, will be used to define substantial doubt. Disclosures will be required under ASU No. 2014-15 if conditions give rise to substantial doubt, including whether and how management's plans will alleviate the substantial doubt. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption prohibited. The Company adopted ASU No. 2014-15 beginning January 1, 2016 and the adoption of the new guidance did not have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. Recently Issued Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which simplifies certain aspects of accounting for share-based payment transactions including transactions in which an employee uses shares to satisfy the employer’s minimum statutory income tax withholding obligation, forfeitures and income taxes when awards vest or are settled. The guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company expects to adopt ASU No. 2016-09 beginning on January 1, 2017 and is in the process of assessing the impact that the new guidance will have on the Company’s results of operations, financial condition and financial statement disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" which requires lessees to recognize a right-of-use asset and a liability on the balance sheet for all leases, with the exception of short-term leases. The lease liability will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to adjustment such as for initial direct costs. Leases will continue to be classified as either operating or finance leases in the income statement. The guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company expects to adopt ASU No. 2016-02 beginning on January 1, 2019 and is in the process of assessing the impact that the new guidance will have on the Company’s results of operations, financial condition and financial statement disclosures. | Recently Adopted Accounting Pronouncements In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which changes the requirements for reporting discontinued operations under Accounting Standards Codification Topic 205. Under ASU No. 2014-08, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The standard states that a strategic shift could include a disposal of: (i) a major geographical area of operations; (ii) a major line of business; (iii) a major equity method investment; or (iv) other major parts of an entity. ASU No. 2014-08 no longer precludes presentation as a discontinued operation if: (i) there are operations and cash flows of the component that have not been eliminated from the reporting entity’s ongoing operations; or (ii) there is significant continuing involvement with a component after its disposal. Additional disclosures about discontinued operations are also required. The guidance is effective for annual periods beginning on or after December 15, 2014, and is applied prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The Company adopted ASU No. 2014-08 on a prospective basis beginning on January 1, 2015, and such adoption did not have an impact on the Company's results of operations, financial condition and/or financial statement disclosures. Recently Issued Accounting Pronouncements In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," which requires deferred income tax assets and liabilities to be classified as noncurrent within a company's balance sheet. Currently, the Company is required to separate deferred income tax assets and liabilities into current and noncurrent amounts on its classified balance sheet, and this update will simplify the presentation by requiring a single, noncurrent amount. The guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU No. 2015-17 beginning on January 1, 2016 and the adoption of the new guidance is not expected to have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments," which eliminates the current requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU No. 2015-16 beginning on January 1, 2016 and the adoption of the new guidance is not expected to have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. In July 2015, the FASB issued ASU No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory," which simplifies the subsequent measurement of inventories by requiring inventory to be measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company expects to adopt ASU No. 2015-11 beginning on January 1, 2017. The Company is evaluating the impact that the new guidance will have on the Company’s results of operations, financial condition and financial statement disclosures. In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which requires debt issuance costs to be presented in the financial statements as a deduction from the corresponding debt liability, consistent with the presentation of debt discounts. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption permitted, and is to be applied retrospectively. The Company adopted ASU No. 2015-03 beginning on January 1, 2016 and the adoption of the new guidance is not expected to have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers," which supersedes the revenue recognition requirements in the ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of ASU No. 2014-09 is for companies to recognize revenue from the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. ASU No. 2014-09 also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. The guidance is effective for annual and interim periods beginning after December 15, 2017, with early adoption prohibited. The Company expects to adopt ASU No. 2014-09 beginning January 1, 2018 and is in the process of assessing the impact that the new guidance will have on the Company's results of operations, financial condition and financial statement disclosures. In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," that will explicitly require management to assess an entity's ability to continue as a going concern and to provide related footnote disclosures if conditions give rise to substantial doubt. According to ASU No. 2014-15, substantial doubt exists if it is probable that the entity will be unable to meet its obligations within one year after the issuance date. The likelihood threshold of "probable", similar to its current use in U.S. GAAP for loss contingencies, will be used to define substantial doubt. Disclosures will be required under ASU No. 2014-15 if conditions give rise to substantial doubt, including whether and how management's plans will alleviate the substantial doubt. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption prohibited. The Company adopted ASU No. 2014-15 beginning January 1, 2016 and the adoption of the new guidance is not expected to have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. |
BUSINESS COMBINATIONS - 10K (Ta
BUSINESS COMBINATIONS - 10K (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Business Combinations [Abstract] | ||
Allocation of Consideration | The table below summarizes the allocation of the total consideration of $29.1 million paid on the Cutex International Acquisition Date: Fair Value at May 31, 2016 Inventory $ 0.8 Purchased Intangible Assets (a) 19.7 Goodwill 8.6 Total consideration transferred $ 29.1 (a) Purchased intangible assets include customer networks fair valued at $14.0 million , intellectual property fair valued at $0.9 million , which are amortized over useful lives of 15 and 10 years, respectively, and indefinite lived trade names fair valued at $4.8 million . | The table below summarizes the allocation of the total consideration of $34.6 million paid on the CBB Acquisition Date, as well as adjustments for changes in working capital during the third quarter of 2015, with resulting goodwill, as follows: Amounts recognized at April 21, 2015 (Provisional) (a) Measurement Period Adjustments Amounts recognized at April 21, 2015 (Adjusted) Total Tangible Net Assets Acquired (b) $ 3.9 $ (1.6 ) $ 2.3 Purchased Intangible Assets (c) 11.9 0.2 12.1 Goodwill 18.8 0.7 19.5 Total consideration transferred $ 34.6 $ (0.7 ) $ 33.9 (a) As previously reported in Revlon, Inc.'s second quarter 2015 Form 10-Q. (b) Total net assets acquired in the CBB Acquisition are comprised primarily of inventory, trade receivables and accounts payable. (c) Purchased intangible assets include customer networks valued at $7.0 million , distribution rights valued at $3.5 million and trade names valued at $1.6 million , with weighted average remaining useful lives of 14 , 5 and 8 years, respectively. The Company recorded the total consideration of $664.5 million based on the respective estimated fair values of the net assets acquired on the Colomer Acquisition Date with resulting goodwill, as follows: Amounts Previously Recognized as of October 9, 2013 (Provisional) (a) Measurement Period Adjustments Amounts Recognized as of Colomer Acquisition Date (Adjusted) Cash and cash equivalents $ 36.9 $ — $ 36.9 Trade receivables 83.9 — 83.9 Inventories 75.1 — 75.1 Prepaid expenses and other 31.3 — 31.3 Property, plant and equipment 96.7 — 96.7 Intangible assets (b) 292.7 5.4 298.1 Goodwill (b)(c) 255.7 (2.4 ) 253.3 Deferred tax asset - noncurrent 53.1 — 53.1 Other assets (c) 1.9 3.9 5.8 Total assets acquired 927.3 6.9 934.2 Accounts payable 48.0 — 48.0 Accrued expenses and other 65.6 — 65.6 Long-term debt 0.9 — 0.9 Long-term pension and other benefit plan liabilities 4.5 — 4.5 Deferred tax liability (b) 123.3 2.1 125.4 Other long-term liabilities (c) 20.5 4.8 25.3 Total liabilities assumed 262.8 6.9 269.7 Total consideration $ 664.5 $ — $ 664.5 (a) As previously reported in Revlon, Inc.'s 2013 and 2014 Annual Reports on Form 10-K. (b) The Measurement Period Adjustments to intangible assets, deferred tax liability and goodwill in the first quarter of 2014 related to a change in assumptions used to calculate the fair value of an acquired customer relationship intangible asset, which increased the intangible asset by $5.4 million and extended the life of the asset from 10 to 20 years, increased deferred tax liabilities by $2.1 million and resulted in a net decrease to goodwill of $3.3 million . (c) The Company recorded a $3.9 million income tax adjustment to the beginning tax balance within other assets and a $4.8 million adjustment to other long-term liabilities, resulting in a net increase to goodwill of $0.9 million . |
Acquisition and Integration Costs | The Company also completed the following acquisitions during 2015: Purchase Consideration Total Net Assets Acquired Purchased Intangible Assets Goodwill American Crew and Revlon Professional Distribution Rights - Australia (1) $ 4.4 $ 1.4 $ 2.9 $ — Cutex U.S. (2) 8.1 1.0 5.2 1.9 Total $ 12.5 $ 2.4 $ 8.1 $ 1.9 (1) In March 2015, the Company re-acquired rights to distribute its American Crew and Revlon Professional brands in Australia. The Company acquired customer relationships valued at $2.9 million , with weighted average remaining useful lives of 10 years . (2) In October 2015, the Company acquired the U.S. Cutex business and related assets from Cutex Brands, LLC (the "Cutex Acquisition"). The Company acquired inventory at fair value of approximately $1.0 million , trade names valued at $3.6 million and customer relationships valued at $1.6 million , with weighted average remaining useful lives of 10 years . For 2015, 2014 and 2013, respectively, the Company incurred acquisition and integration costs related to the Colomer Acquisition, summarized as follows: Year Ended December 31, 2015 2014 2013 Acquisition costs $ — $ 0.5 $ 12.9 Integration costs 2.1 5.9 12.5 Total acquisition and integration costs $ 2.1 $ 6.4 $ 25.4 | |
Acquired Intangible Assets | The intangible assets acquired in the Colomer Acquisition, based on the fair values of the identifiable intangible assets, were as follows: Fair Values at October 9, 2013 Weighted Average Useful Life (in years) Trade names, indefinite-lived $ 108.6 Indefinite Trade names, finite-lived 109.4 5 - 20 Customer relationships 62.4 15 - 20 License agreement 4.1 10 Internally-developed IP 13.6 10 Total acquired intangible assets $ 298.1 Unaudited Pro Forma Results | |
Pro Forma Results | The Company's pro forma consolidated net sales and income from continuing operations, before income taxes for 2013, are presented in the following table: Unaudited Pro Forma Results Year Ended December 31, 2013 Net sales $ 1,908.9 Income from continuing operations, before income taxes 135.2 |
RESTRUCTURING CHARGES - 10K (Ta
RESTRUCTURING CHARGES - 10K (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Restructuring Charges [Abstract] | ||
Schedule of Restructuring Activities | A summary of the restructuring and related charges incurred through June 30, 2016 in connection with the 2015 Efficiency Program is presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Charges incurred through December 31, 2015 $ 9.4 $ 0.1 $ 9.5 Charges incurred in the six months ended June 30, 2016 $ 0.6 $ 0.6 $ 1.2 Cumulative charges incurred through June 30, 2016 $ 10.0 $ 0.7 $ 10.7 Total expected charges $ 10.0 $ 1.7 $ 11.7 | A summary of the restructuring and related charges incurred through December 31, 2015 in connection with the 2015 Efficiency Program is presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Charges incurred through December 31, 2015 $ 9.4 $ 0.1 $ 9.5 Total expected charges $ 9.5 $ 0.6 $ 10.1 A summary of the restructuring and related charges for the Integration Program incurred through December 31, 2015 are as follows: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Inventory Write-offs and Other Manufacturing-Related Costs (a) Other Charges (b) Total Restructuring and Related Charges Charges incurred through December 31, 2014 $ 17.3 $ 1.6 $ 18.9 $ 0.6 $ 0.6 $ 20.1 Charges incurred through December 31, 2015 $ (3.4 ) $ 0.6 $ (2.8 ) $ 0.7 $ 0.3 $ (1.8 ) Total charges $ 13.9 $ 2.2 $ 16.1 $ 1.3 $ 0.9 $ 18.3 (a) Inventory write-offs and other manufacturing-related costs are recorded within cost of sales within the Company’s Consolidated Statements of Income and Comprehensive Income (Loss). (b) Other charges are recorded within SG&A expenses within the Company’s Consolidated Statements of Income and Comprehensive Income (Loss). A summary of the restructuring and related charges incurred through 2015 in connection with the December 2013 Program are presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Allowances and Returns Inventory Write-offs Other Charges Total Restructuring and Related Charges Charges incurred through December 31, 2014 $ 8.6 $ 0.3 $ 8.9 $ 6.5 $ 3.1 $ 0.4 $ 18.9 Charges incurred through December 31, 2015 $ — $ — $ — $ — $ — $ — $ — Total expected charges $ 8.6 $ 0.3 $ 8.9 $ 6.5 $ 3.1 $ 0.4 $ 18.9 |
Schedule of Restructuring Reserve by Type of Cost | The related liability balance and activity for each of the Company's restructuring programs are presented in the following table: Utilized, Net Balance Beginning of Year (Income) Expense, Net Foreign Currency Translation Cash Non-cash Balance End of Period 2015 Efficiency Program: Employee severance and other personnel benefits $ 6.6 $ 0.6 $ — $ (1.2 ) $ — $ 6.0 Other 0.1 0.6 — (0.4 ) (0.1 ) 0.2 Integration Program: (a) Employee severance and other personnel benefits 0.8 — — (0.8 ) — — Other 0.1 — — — — 0.1 December 2013 Program: (b) Employee severance and other personnel benefits 1.2 — — — — 1.2 Other — — — — — — Other immaterial actions: Employee severance and other personnel benefits 2.3 0.3 — (1.0 ) — 1.6 Other 0.7 0.3 — (0.3 ) — 0.7 Total restructuring reserve $ 11.8 $ 1.8 $ — $ (3.7 ) $ (0.1 ) $ 9.8 ( a) Following Products Corporation's October 2013 acquisition of The Colomer Group Participations, S.L. ("Colomer" and the "Colomer Acquisition"), the Company implemented actions to integrate Colomer's operations into the Company's business which reduced costs across the Company's businesses and generated synergies and operating efficiencies within the Company's global supply chain and consolidated offices and back office support (all such actions, together, the "Integration Program"). The Integration Program was substantially completed as of December 31, 2015. (b) In December 2013, the Company announced restructuring actions that primarily included exiting its direct manufacturing, warehousing and sales business operations in mainland China (the "December 2013 Program"). The December 2013 Program resulted in the elimination of approximately 1,100 positions in 2014, primarily in China. | The related liability balance and activity for each of the Company's restructuring programs, as summarized above, are presented in the following table: Utilized, Net Balance Beginning of Year (Income) Expense, Net Foreign Currency Translation Cash Non-cash Balance End of Year 2015 2015 Efficiency Program: Employee severance and other personnel benefits $ — $ 9.4 $ — $ (2.8 ) $ — $ 6.6 Other — 0.1 — — — 0.1 Integration Program: Employee severance and other personnel benefits 9.6 (3.4 ) (0.2 ) (5.2 ) — 0.8 Other 0.1 0.6 — (0.6 ) — 0.1 December 2013 Program: Employee severance and other personnel benefits 1.2 — — — — 1.2 Other — — — — — — Other immaterial actions: Employee severance and other personnel benefits 3.1 1.7 (0.1 ) (2.4 ) — 2.3 Other — 2.1 — (1.4 ) — 0.7 Total restructuring reserve $ 14.0 $ 10.5 $ (0.3 ) $ (12.4 ) $ — $ 11.8 2014 Integration Program: Employee severance and other personnel benefits $ — $ 17.3 $ (0.1 ) $ (7.6 ) $ — $ 9.6 Other — 1.6 — (1.2 ) (0.3 ) 0.1 December 2013 Program: Employee severance and other personnel benefits 9.0 (0.5 ) (0.2 ) (7.3 ) 0.2 1.2 Other 0.5 (0.2 ) — (0.3 ) — — Other immaterial actions: Employee severance and other personnel benefits (a) 2.7 5.0 (0.2 ) (4.5 ) 0.1 3.1 Other (a) 1.5 0.2 — (1.7 ) — — Total restructuring reserve $ 13.7 $ 23.4 $ (0.5 ) $ (22.6 ) $ — $ 14.0 Gain on sale of property, plant and equipment for 2014 other immaterial actions (2.6 ) Portion of restructuring benefits recorded within (loss) income from discontinued operations (b) 0.5 Total restructuring charges and other, net, from continuing operations $ 21.3 (a) Includes reserve of $4.2 million remaining at the end of 2013 related to the Company's exit of its then-owned manufacturing facility in France and its then-leased manufacturing facility in Maryland; rightsizing its organizations in France and Italy; and realigning its operations in Latin America and Canada, or the "September 2012 Program." (b) Refer to Note 4, "Discontinued Operations" for additional information regarding the Company's exit of its direct manufacturing, warehousing and sales business operations in mainland China. |
DISCONTINUED OPERATIONS - 10K (
DISCONTINUED OPERATIONS - 10K (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Discontinued Operations [Abstract] | ||
Schedule of Discontinued Operations | The results of the China discontinued operations are included within Loss from discontinued operations, net of taxes, and relate entirely to the Consumer segment. The summary comparative financial results of discontinued operations are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net sales $ — $ — $ — $ — Loss from discontinued operations, before taxes (2.5 ) — (2.1 ) (0.1 ) Provision for income taxes — — — — Loss from discontinued operations, net of taxes (2.5 ) — (2.1 ) (0.1 ) Assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consist of the following: June 30, 2016 December 31, 2015 Cash and cash equivalents $ 1.8 $ 2.0 Trade receivables, net 0.2 0.2 Total current assets 2.0 2.2 Total assets $ 2.0 $ 2.2 Accounts payable $ 0.6 $ 0.7 Accrued expenses and other 3.5 3.6 Total current liabilities 4.1 4.3 Total liabilities $ 4.1 $ 4.3 | The results of the China discontinued operations are included within (loss) income from discontinued operations, net of taxes, and relate entirely to the Consumer segment. The summary comparative financial results of discontinued operations are as follows: Year Ended December 31, 2015 2014 2013 Net sales $ — $ 2.6 $ 13.8 (Loss) income from discontinued operations, before taxes (3.2 ) 1.5 (30.8 ) Provision for income taxes — 0.2 (0.4 ) (Loss) income from discontinued operations, net of taxes (3.2 ) 1.3 (30.4 ) (a) Net sales during 2014 include favorable adjustments to sales returns related to the Company's exit of its direct manufacturing, warehousing and sales business operations in mainland China. (b) Included in loss from discontinued operations, before taxes for 2013 are $20.0 million of restructuring and related charges related to the December 2013 Program. Refer to Note 3, "Restructuring Charges - December 2013 Program," for related disclosures. Assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consist of the following: December 31, 2015 December 31, 2014 Cash and cash equivalents $ 2.0 $ 2.4 Trade receivables, net 0.2 0.2 Total current assets 2.2 2.6 Total assets $ 2.2 $ 2.6 Accounts payable $ 0.7 $ 0.2 Accrued expenses and other 3.6 3.9 Total current liabilities 4.3 4.1 Total liabilities $ 4.3 $ 4.1 |
INVENTORIES - 10K (Tables)
INVENTORIES - 10K (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Inventories [Abstract] | ||
Components of Inventories | June 30, 2016 December 31, 2015 Raw materials and supplies $ 61.9 $ 58.2 Work-in-process 12.0 8.3 Finished goods 135.7 117.3 $ 209.6 $ 183.8 | December 31, 2015 2014 Raw materials and supplies $ 58.2 $ 47.2 Work-in-process 8.3 9.0 Finished goods 117.3 100.4 $ 183.8 $ 156.6 |
PREPAID EXPENSES AND OTHER - 62
PREPAID EXPENSES AND OTHER - 10K (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expenses and Other [Abstract] | |
Prepaid Expenses and Other | December 31, 2015 2014 Prepaid expenses $ 18.2 $ 17.3 Other 35.1 27.3 $ 53.3 $ 44.6 |
PROPERTY, PLANT AND EQUIPMENT63
PROPERTY, PLANT AND EQUIPMENT - 10K (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | December 31, 2015 2014 Land and improvements $ 10.7 $ 11.7 Building and improvements 84.7 83.9 Machinery, equipment and capital leases 213.0 198.7 Office furniture, fixtures and capitalized software 118.1 104.2 Leasehold improvements 29.0 28.1 Construction-in-progress 31.5 35.9 Property, plant and equipment, gross 487.0 462.5 Accumulated depreciation and amortization (271.7 ) (250.5 ) Property, plant and equipment, net $ 215.3 $ 212.0 |
GOODWILL AND INTANGIBLE ASSET64
GOODWILL AND INTANGIBLE ASSETS, NET - 10K (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets, Net [Abstract] | ||
Changes in Goodwill by Segment | The following table presents the changes in goodwill by segment during the six months ended June 30, 2016: Consumer Professional Other Total Balance at January 1, 2016 $ 210.1 $ 240.7 $ 18.9 $ 469.7 Goodwill acquired (a) 8.6 — — 8.6 Foreign currency translation adjustment — 0.2 (1.8 ) (1.6 ) Balance at June 30, 2016 $ 218.7 $ 240.9 $ 17.1 $ 476.7 (a) On May 31, 2016, the Company completed the Cutex International Acquisition. See Note 2, "Business Combinations," to the Unaudited Consolidated Financial Statements in this Form 10-Q for details related to the Cutex International Acquisition. | The following table presents the changes in goodwill by segment during each of 2015 and 2014: Consumer Professional Other Total Balance at January 1, 2014 $ 217.9 $ 254.4 $ — $ 472.3 Foreign currency translation adjustment — (8.2 ) — (8.2 ) Balance at December 31, 2014 $ 217.9 $ 246.2 $ — $ 464.1 Goodwill acquired 1.9 — 19.5 21.4 Foreign currency translation adjustment — (5.5 ) (0.6 ) (6.1 ) Goodwill impairment charge $ (9.7 ) $ — $ — $ (9.7 ) Balance at December 31, 2015 $ 210.1 $ 240.7 $ 18.9 $ 469.7 |
Summary of Intangible Assets | The following tables present details of the Company's total intangible assets: June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Trademarks and Licenses $ 147.2 $ (42.3 ) $ 104.9 Customer relationships 132.5 (24.4 ) 108.1 Patents and Internally-Developed IP 17.9 (5.2 ) 12.7 Distribution rights 3.1 (0.9 ) 2.2 Total finite-lived intangible assets $ 300.7 $ (72.8 ) $ 227.9 Indefinite-lived intangible assets: Trade Names $ 101.0 $ — $ 101.0 Total indefinite-lived intangible assets $ 101.0 $ — $ 101.0 Total intangible assets $ 401.7 $ (72.8 ) $ 328.9 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Trademarks and Licenses $ 145.0 $ (36.0 ) $ 109.0 Customer relationships 118.8 (20.5 ) 98.3 Patents and Internally-Developed IP 16.8 (4.0 ) 12.8 Distribution rights 3.5 (0.6 ) 2.9 Total finite-lived intangible assets $ 284.1 $ (61.1 ) $ 223.0 Indefinite-lived intangible assets: Trade Names $ 95.0 $ — $ 95.0 Total indefinite-lived intangible assets $ 95.0 $ — $ 95.0 Total intangible assets $ 379.1 $ (61.1 ) $ 318.0 | The following tables present details of the Company's total intangible assets: December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and Licenses $ 145.0 $ (36.0 ) $ 109.0 15 Customer relationships 118.8 (20.5 ) 98.3 16 Patents and Internally-Developed IP 16.8 (4.0 ) 12.8 10 Distribution rights 3.5 (0.6 ) 2.9 5 Total finite-lived intangible assets $ 284.1 $ (61.1 ) $ 223.0 Indefinite-lived intangible assets: Trade Names $ 95.0 $ — $ 95.0 Total indefinite-lived intangible assets $ 95.0 $ — $ 95.0 Total intangible assets $ 379.1 $ (61.1 ) $ 318.0 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and Licenses $ 140.5 $ (23.5 ) $ 117.0 14 Customer relationships 109.1 (13.4 ) 95.7 17 Patents and Internally-Developed IP 16.2 (2.4 ) 13.8 10 Total finite-lived intangible assets $ 265.8 $ (39.3 ) $ 226.5 Indefinite-lived intangible assets: Trade Names $ 101.3 $ — $ 101.3 Total indefinite-lived intangible assets $ 101.3 $ — $ 101.3 Total intangible assets $ 367.1 $ (39.3 ) $ 327.8 |
Estimated Future Amortization Expense | The following table reflects the estimated future amortization expense, a portion of which is subject to exchange rate fluctuations, for the Company's finite-lived intangible assets as of June 30, 2016: Estimated Amortization Expense 2016 $ 11.5 2017 23.6 2018 22.7 2019 20.1 2020 19.5 Thereafter 130.5 Total $ 227.9 | The following table reflects the estimated future amortization expense, a portion of which is subject to exchange rate fluctuations, for the Company's finite-lived intangible assets as of December 31, 2015: Estimated Amortization Expense 2016 $ 22.7 2017 22.3 2018 21.4 2019 18.9 2020 18.2 Thereafter 119.5 Total $ 223.0 |
ACCRUED EXPENSES AND OTHER - 65
ACCRUED EXPENSES AND OTHER - 10K (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Accrued Expenses and Other [Abstract] | ||
Components of Accrued Expenses and Other | June 30, 2016 December 31, 2015 Sales returns and allowances $ 50.8 $ 61.1 Compensation and related benefits 49.4 75.6 Advertising and promotional costs 37.0 38.4 Taxes 23.4 20.8 Interest 12.3 12.4 Restructuring reserve 9.8 11.8 Other 50.5 52.3 $ 233.2 $ 272.4 | December 31, 2015 2014 Sales returns and allowances $ 61.1 $ 70.6 Compensation and related benefits 75.6 66.8 Advertising and promotional costs 38.4 44.9 Taxes 20.8 23.4 Interest 12.4 11.0 Restructuring reserve 11.8 13.7 Other 52.3 42.9 $ 272.4 $ 273.3 |
LONG-TERM DEBT - 10K (Tables)
LONG-TERM DEBT - 10K (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Long-Term Debt [Abstract] | ||
Components of Long-Term Debt | June 30, 2016 December 31, 2015 Amended Term Loan Facility: Acquisition Term Loan due 2019, net of discounts and debt issuance costs (a) $ 648.5 $ 662.1 Amended Term Loan Facility: 2011 Term Loan due 2017, net of discounts and debt issuance costs (a) 648.2 658.5 Amended Revolving Credit Facility (b) — — 5¾% Senior Notes due 2021, net of debt issuance costs (c) 493.1 492.5 Spanish Government Loan due 2025 (d) 0.6 0.6 1,790.4 1,813.7 Less current portion (*) (6.8 ) (30.0 ) $ 1,783.6 $ 1,783.7 (*) At December 31, 2015, the Company classified $30.0 million as the current portion of long-term debt, which was comprised of a $23.2 million required “excess cash flow” prepayment (as defined under the Amended Term Loan Agreement, as hereinafter defined) that was paid on February 29, 2016, and the Company’s regularly scheduled $1.7 million quarterly principal amortization payments (after giving effect to such prepayment) due in 2016. (a) See Note 17, "Subsequent Events," to the Unaudited Consolidated Financial Statements in this Form 10-Q for debt-related matters that occurred subsequent to the second quarter of 2016 and see Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding Products Corporation's Amended Term Loan Agreement, which facility is comprised of: (i) the term loan due November 19, 2017 in the original aggregate amount of $675.0 million (the "2011 Term Loan"); and (ii) the term loan due October 8, 2019 in the original aggregate amount of $700.0 million (the "Acquisition Term Loan") which, respectively, had $651.4 million and $658.6 million in aggregate principal balance outstanding at June 30, 2016 (together, the "Amended Term Loan Agreement"). (b) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding Products Corporation's existing $175.0 million asset-based, multi-currency revolving credit facility (the "Amended Revolving Credit Facility") which matures on the earlier of August 14, 2018 and the date that is 90 days prior to the earliest maturity date of any term loans then outstanding under the Amended Term Loan Agreement. (c) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding Products Corporation's 5¾% Senior Notes that mature on February 15, 2021. The aggregate principal amount outstanding at June 30, 2016 was $500 million . (d) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding the euro-denominated loan payable to the Spanish government that matures on June 30, 2025. | December 31, 2015 December 31, 2014 Amended Term Loan Facility: Acquisition Term Loan due 2019, net of discounts (see (a) below) $ 672.5 $ 691.6 Amended Term Loan Facility: 2011 Term Loan due 2017, net of discounts (see (a) below) 660.6 671.6 Amended Revolving Credit Facility (see (a) below) — — 5¾% Senior Notes due 2021 (see (b) below) 500.0 500.0 Spanish Government Loan due 2025 (see (c) below) 0.6 0.7 1,833.7 1,863.9 Less current portion (*) (30.0 ) (31.5 ) $ 1,803.7 $ 1,832.4 (*) At December 31, 2015 and 2014, the Company classified $30.0 million and $31.5 million , respectively, of long-term debt as a current liability, which was primarily comprised of $23.2 million and $24.6 million of required “excess cash flow” prepayments (as defined under the Amended Term Loan Agreement, as hereinafter defined). The excess cash flow prepayment for 2015 will be paid on or prior to April 9, 2016. The 2014 excess cash flow prepayment was paid on March 12, 2015. The current portion of long-term debt also includes the Company’s annual principal amortization payments (payable in equal quarterly installments and after giving effect to such prepayments) of $6.8 million and $6.9 million due in 2016 and 2015, respectively. Under the Amended Revolving Credit Facility, borrowings (other than loans in foreign currencies) bear interest, if made as Eurodollar Loans, at the Eurodollar Rate plus the applicable margin set forth in the grid below and, if made as Alternate Base Rate Loans, at the Alternate Base Rate plus the applicable margin set forth in the grid below. Excess Availability Alternate Base Rate Loans Eurodollar Loans, Eurocurrency Loan or Local Rate Loans Greater than or equal to $92,000,000 0.50% 1.50% Less than $92,000,000 but greater than or equal to $46,000,000 0.75% 1.75% Less than $46,000,000 1.00% 2.00% Term loans under the Amended Term Loan Facility bear interest at the following interest rates: Eurodollar Loans Alternate Base Rate Loans 2011 Term Loans Eurodollar Rate plus 2.50% per annum (with the Eurodollar Rate not to be less than 0.75%) Alternate Base Rate plus 1.50% (with the Alternate Base Rate not to be less than 1.75%) Acquisition Term Loans Eurodollar Rate plus 3.00% per annum (with the Eurodollar Rate not to be less than 1.00%) Alternate Base Rate plus 2.00% (with the Alternate Base Rate not to be less than 2.00%) |
Optional Redemption | The 5¾% Senior Notes may be redeemed at Products Corporation's option, at any time as a whole, or from time to time in part, at the following redemption prices (expressed as percentages of principal amount), plus accrued interest to the date of redemption, if redeemed during the 12-month period beginning on February 15 th of the years indicated below: Year Percentage 2016 104.313 % 2017 102.875 % 2018 101.438 % 2019 and thereafter 100.000 % | |
Long-Term Debt Maturities | The aggregate amounts of contractual long-term debt maturities at December 31, 2015 in the years 2016 through 2020 and thereafter are as follows: Years Ended December 31, Long-Term Debt Maturities 2016 $ 30.0 (a) 2017 658.3 (b) 2018 6.9 (a) 2019 641.8 (c) 2020 0.1 Thereafter 500.1 (d) Total long-term debt 1,837.2 Discounts (3.5 ) Total long-term debt, net of discounts $ 1,833.7 (a) Amount includes the quarterly amortization payments required under the Acquisition Term Loan. For 2016, this amount also includes the required $23.2 million “excess cash flow” prepayment to be made on or prior to April 9, 2016 under the Amended Term Loan Agreement (as defined under the Amended Term Loan Agreement). (b) Amount includes the aggregate principal amount expected to be outstanding under the 2011 Term Loan which matures on November 19, 2017, after giving effect to the excess cash flow prepayment discussed in note (a) above. (c) Amount is comprised of the aggregate principal amount expected to be outstanding under the Acquisition Term Loan assuming a maturity date of October 9, 2019, after giving effect to the amortization payments and excess cash flow prepayment referred to in note (a) above. (d) Amount is primarily comprised of the $500.0 million aggregate principal amount outstanding as of December 31, 2015 under the 5¾% Senior Notes, which mature on February 21, 2021. |
FAIR VALUE MEASUREMENTS - 10K (
FAIR VALUE MEASUREMENTS - 10K (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | ||
Schedule of Fair Values of Financial Assets and Liabilities | As of June 30, 2016 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 1.1 $ — $ 1.1 $ — Total assets at fair value $ 1.1 $ — $ 1.1 $ — Liabilities: Derivatives: FX Contracts (a) $ 1.8 $ — $ 1.8 $ — 2013 Interest Rate Swap (b) 7.6 — 7.6 — Total liabilities at fair value $ 9.4 $ — $ 9.4 $ — As of December 31, 2015 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 2.0 $ — $ 2.0 $ — Total assets at fair value $ 2.0 $ — $ 2.0 $ — Liabilities: Derivatives: FX Contracts (a) $ 0.6 $ — $ 0.6 $ — 2013 Interest Rate Swap (b) $ 6.5 $ — $ 6.5 $ — Total liabilities at fair value $ 7.1 $ — $ 7.1 $ — (a) The fair value of the Company’s foreign currency forward exchange contracts ("FX Contracts") was measured based on observable market transactions for similar transactions in actively quoted markets of spot and forward rates on the respective dates. See Note 10, “Financial Instruments," to the Unaudited Consolidated Financial Statements in this Form 10-Q. (b) The fair value of the Company's 2013 Interest Rate Swap (as hereinafter defined) was measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve on the respective dates. See Note 10, “Financial Instruments.” | As of December 31, 2015 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 2.0 $ — $ 2.0 $ — Total assets at fair value $ 2.0 $ — $ 2.0 $ — Liabilities: Derivatives: FX Contracts (a) $ 0.6 $ — $ 0.6 $ — 2013 Interest Rate Swap (b) 6.5 — 6.5 — Total liabilities at fair value $ 7.1 $ — $ 7.1 $ — As of December 31, 2014 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 0.2 $ — $ 0.2 $ — Total assets at fair value $ 0.2 $ — $ 0.2 $ — Liabilities: Derivatives: 2013 Interest Rate Swap (b) $ 3.5 $ — $ 3.5 $ — Total liabilities at fair value $ 3.5 $ — $ 3.5 $ — (a) The fair value of the Company’s foreign currency forward exchange contracts ("FX Contracts") was measured based on observable market transactions for similar transactions in actively quoted markets of spot and forward rates on the respective dates. See Note 13, “Financial Instruments.” (b) The fair value of the Company's 2013 Interest Rate Swap was measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve on the respective dates. See Note 13, “Financial Instruments.” |
Financial Liabilities Not Measured At Fair Value But For Which Fair Value Disclosure Is Required | As of June 30, 2016 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,793.2 $ — $ 1,793.2 $ 1,790.4 As of December 31, 2015 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,818.0 $ — $ 1,818.0 $ 1,813.7 | As of December 31, 2015 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,818.0 $ — $ 1,818.0 $ 1,833.7 As of December 31, 2014 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,844.0 $ — $ 1,844.0 $ 1,863.9 |
FINANCIAL INSTRUMENTS - 10K (Ta
FINANCIAL INSTRUMENTS - 10K (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Financial Instruments [Abstract] | ||
Fair Value of Derivative Financial Instruments in Consolidated Balance Sheet | (a) Fair Values of Derivative Financial Instruments in the Consolidated Balance Sheets: Fair Values of Derivative Instruments Assets Liabilities Balance Sheet June 30, December 31, Balance Sheet June 30, December 31, Classification Fair Value Fair Value Classification Fair Value Fair Value Derivatives designated as hedging instruments: 2013 Interest Rate Swap (i) Prepaid expenses and other $ — $ — Accrued expenses and other $ 4.2 $ 4.0 Other assets — — Other long-term liabilities 3.4 2.5 Derivatives not designated as hedging instruments: FX Contracts (ii) Prepaid expenses and other $ 1.1 $ 2.0 Accrued Expenses $ 1.8 $ 0.6 (i) The fair values of the 2013 Interest Rate Swap at June 30, 2016 and December 31, 2015 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at June 30, 2016 and December 31, 2015 , respectively. (ii) The fair values of the FX Contracts at June 30, 2016 and December 31, 2015 were measured based on observable market transactions of spot and forward rates at June 30, 2016 and December 31, 2015 , respectively. | (a) Fair Values of Derivative Financial Instruments in the Consolidated Balance Sheets: Fair Values of Derivative Instruments Assets Liabilities Balance Sheet December 31, December 31, Balance Sheet December 31, December 31, Classification Fair Value Fair Value Classification Fair Value Fair Value Derivatives designated as hedging instruments: 2013 Interest Rate Swap (i) Prepaid expenses and other $ — $ — Accrued expenses and other $ 4.0 $ 2.1 Other assets — — Other long-term liabilities 2.5 1.4 Derivatives not designated as hedging instruments: FX Contracts (ii) Prepaid expenses and other $ 2.0 $ 0.2 Accrued Expenses $ 0.6 $ — (i) The fair values of the 2013 Interest Rate Swap at December 31, 2015 and December 31, 2014 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at December 31, 2015 and December 31, 2014 , respectively. (ii) The fair values of the FX Contracts at December 31, 2015 and December 31, 2014 were measured based on observable market transactions of spot and forward rates at December 31, 2015 and December 31, 2014 , respectively. |
Effects of Derivative Financial Instruments on Income and Other Comprehensive Income (Loss) | Effects of Derivative Financial Instruments on the Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2016 and 2015 : Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Derivatives designated as hedging instruments: 2013 Interest Rate Swap, net of tax (a) $ 0.2 $ (0.1 ) $ (0.7 ) $ (2.0 ) (a) Net of tax expense (benefit) of $0.1 million and nil for the three months ended June 30, 2016 and 2015, respectively, and $(0.4) million and $(1.2) million for the six months ended June 30, 2016 and 2015, respectively. Income Statement Classification Amount of Gain (Loss) Recognized in Net Income Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Derivatives designated as hedging instruments: 2013 Interest Rate Swap Interest Expense $ (1.1 ) $ (0.5 ) $ (2.2 ) $ (0.5 ) Derivatives not designated as hedging instruments: FX Contracts Foreign currency gain (loss), net $ 0.3 $ 0.4 $ (0.5 ) $ 0.9 | Effects of Derivative Financial Instruments on the Consolidated Statements of Income and Comprehensive Income (Loss) for each of 2015, 2014 and 2013: Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Year Ended December 31, 2015 2014 2013 Derivatives designated as hedging instruments: 2013 Interest Rate Swap, net of tax (a) $ (1.6 ) $ (3.7 ) $ 1.5 (a) Net of tax (benefit) expense of $(1.0) million , $(2.3) million and $1.0 million for each of 2015, 2014 and 2013, respectively. Income Statement Classification Amount of Gain (Loss) Recognized in Net Income Year Ended December 31, 2015 2014 2013 Derivatives designated as hedging instruments: 2013 Interest Rate Swap Interest Expense $ (2.6 ) $ — $ — Derivatives not designated as hedging instruments: FX Contracts Foreign currency gain, net $ 3.8 $ 0.5 $ 2.2 |
SAVINGS PLAN, PENSION AND POS69
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - 10K (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Pension and Post-Retirement Benefits [Abstract] | ||
Reconciliation of Projected Benefit Obligations, Plan Assets, Funded Status and Amounts Recognized in the Consolidated Financial Statements | The following table provides an aggregate reconciliation of the projected benefit obligations, plan assets, funded status and amounts recognized in the Company’s Consolidated Financial Statements related to the Company's significant pension and other post-retirement benefit plans. Pension Plans Other Post-Retirement Benefit Plans December 31, 2015 2014 2015 2014 Change in Benefit Obligation: Benefit obligation - beginning of year $ (761.7 ) $ (668.2 ) $ (12.9 ) $ (14.4 ) Service cost (0.7 ) (0.8 ) — — Interest cost (28.6 ) (30.1 ) (0.5 ) (0.5 ) Actuarial gain (loss) 44.4 (108.0 ) (0.4 ) (0.2 ) Lump sum settlement 53.4 — — — Other pension settlements 0.8 — — — Benefits paid 38.3 41.0 0.8 0.7 Foreign currency translation adjustments 4.7 4.4 — — Other — — — 1.5 Benefit obligation - end of year $ (649.4 ) $ (761.7 ) $ (13.0 ) $ (12.9 ) Change in Plan Assets: Fair value of plan assets - beginning of year $ 567.7 $ 557.6 $ — $ — Actual return on plan assets (13.9 ) 37.6 — — Employer contributions 17.3 18.2 0.8 0.7 Lump sum settlement (53.4 ) — — — Other pension settlements (0.8 ) — — — Benefits paid (38.3 ) (41.0 ) (0.8 ) (0.7 ) Foreign currency translation adjustments (4.7 ) (4.7 ) — — Fair value of plan assets - end of year $ 473.9 $ 567.7 $ — $ — Unfunded status of plans at December 31, $ (175.5 ) $ (194.0 ) $ (13.0 ) $ (12.9 ) | |
Amounts Recognized in the Consolidated Balance Sheets | In respect of the Company's pension plans and other post-retirement benefit plans, amounts recognized in the Company’s Consolidated Balance Sheets at December 31, 2015 and 2014 consist of the following: Pension Plans Other Post-Retirement Benefit Plans December 31, 2015 2014 2015 2014 Other long-term assets $ 3.6 $ 0.8 $ — $ — Accrued expenses and other $ (6.0 ) $ (6.1 ) $ (0.8 ) $ (0.7 ) Pension and other post-retirement benefit liabilities (173.1 ) (188.7 ) (12.2 ) (12.2 ) Total liability (175.5 ) (194.0 ) (13.0 ) (12.9 ) Accumulated other comprehensive loss, gross 258.0 277.6 2.8 2.5 Income tax (benefit) expense (41.9 ) (43.7 ) (0.1 ) 0.1 Portion allocated to Revlon Holdings (0.9 ) (1.0 ) (0.2 ) (0.2 ) Accumulated other comprehensive loss, net $ 215.2 $ 232.9 $ 2.5 $ 2.4 | |
Projected Benefit Obligation, Accumulated Benefit Obligation, and Fair Value of Plan Assets | The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the Company's pension plans are as follows: December 31, 2015 2014 Projected benefit obligation $ 649.4 $ 761.7 Accumulated benefit obligation 649.0 761.0 Fair value of plan assets 473.9 567.7 | |
Components of Net Periodic Benefit (Income) Costs | The components of net periodic benefit (income) costs for the Company’s pension and the other post-retirement benefit plans for the second quarter of 2016 and 2015 are as follows: Other Three Months Ended June 30, 2016 2015 2016 2015 Net periodic benefit (income) costs: Service cost $ 0.2 $ 0.2 $ — $ — Interest cost 5.1 7.1 0.1 0.1 Expected return on plan assets (7.8 ) (10.2 ) — — Amortization of actuarial loss 2.3 2.1 0.1 0.1 (0.2 ) (0.8 ) 0.2 0.2 Portion allocated to Revlon Holdings (0.1 ) (0.1 ) — — $ (0.3 ) $ (0.9 ) $ 0.2 $ 0.2 The components of net periodic benefit (income) costs for the Company's pension and the other post-retirement benefit plans for the first six months of 2016 and 2015 are as follows: Other Six Months Ended June 30, 2016 2015 2016 2015 Net periodic benefit (income) costs: Service cost $ 0.3 $ 0.4 $ — $ — Interest cost 10.3 14.3 0.2 0.2 Expected return on plan assets (15.6 ) (20.3 ) — — Amortization of actuarial loss 4.4 4.1 0.1 0.1 (0.6 ) (1.5 ) 0.3 0.3 Portion allocated to Revlon Holdings (0.1 ) (0.1 ) — — $ (0.7 ) $ (1.6 ) $ 0.3 $ 0.3 | The components of net periodic benefit (income) costs for the Company’s pension and the other post-retirement benefit plans are as follows: Other Year Ended December 31, 2015 2014 2013 2015 2014 2013 Net periodic benefit (income) costs: Service cost $ 0.7 $ 0.8 $ 0.9 $ — $ — $ — Interest cost 28.6 30.1 27.6 0.5 0.5 0.6 Expected return on plan assets (40.3 ) (41.3 ) (38.3 ) — — — Amortization of actuarial loss 8.4 4.5 8.6 0.1 0.1 0.4 Lump sum settlement charge 20.7 — — — — — Other pension settlements charge 0.3 — — — — — 18.4 (5.9 ) (1.2 ) 0.6 0.6 1.0 Portion allocated to Revlon Holdings (0.1 ) (0.1 ) (0.1 ) (0.1 ) — (0.1 ) $ 18.3 $ (6.0 ) $ (1.3 ) $ 0.5 $ 0.6 $ 0.9 |
Classification of Net Periodic Benefit (Income) Costs | Net periodic benefit costs (income) are reflected in the Company's Consolidated Financial Statements as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net periodic benefit (income) costs: Cost of sales $ (0.5 ) $ (1.0 ) $ (1.3 ) $ (2.0 ) Selling, general and administrative expense 0.4 0.3 0.9 0.7 $ (0.1 ) $ (0.7 ) $ (0.4 ) $ (1.3 ) | Net periodic benefit costs (income) are reflected in the Company's Consolidated Financial Statements as follows: Year Ended December 31, 2015 2014 Net periodic benefit (income) costs: Cost of sales $ 6.1 $ (4.2 ) Selling, general and administrative expense 12.7 (0.7 ) Inventories — (0.5 ) $ 18.8 $ (5.4 ) |
Summary of Unrecognized Components of Net Periodic Benefit Cost | Amounts recognized in accumulated other comprehensive loss at December 31, 2015 in respect of the Company’s pension plans and other post-retirement plans, which have not yet been recognized as a component of net periodic benefit cost, are as follows: Pension Benefits Post-Retirement Benefits Total Net actuarial loss $ 258.0 $ 2.8 $ 260.8 Prior service cost — — — Accumulated Other Comprehensive Loss, Gross 258.0 2.8 260.8 Income tax (benefit) expense (41.9 ) (0.1 ) (42.0 ) Portion allocated to Revlon Holdings (0.9 ) (0.2 ) (1.1 ) Accumulated Other Comprehensive Loss, Net $ 215.2 $ 2.5 $ 217.7 | |
Weighted-Average Assumptions Used | The following weighted average assumptions were used to determine the Company’s projected benefit obligation of the Company’s U.S. and International pension plans at the end of the respective years: U.S. Plans International Plans 2015 2014 2015 2014 Discount rate 4.15 % 3.89 % 3.68 % 3.74 % Rate of future compensation increases 3.50 % 3.00 % 2.22 % 2.33 % The following weighted average assumptions were used to determine the Company’s net periodic benefit (income) cost of the Company’s U.S. and International pension plans during the respective years: U.S. Plans International Plans 2015 2014 2013 2015 2014 2013 Discount rate 3.89 % 4.68 % 3.78 % 3.74 % 4.48 % 4.33 % Expected long-term return on plan assets 7.50 % 7.75 % 7.75 % 6.00 % 6.00 % 6.00 % Rate of future compensation increases 3.00 % 3.00 % 3.00 % 2.33 % 3.40 % 2.97 % | |
Fair Value of Plan Assets | The following table presents information on the fair value of the Company's U.S. and international pension plan assets at December 31, 2015 and 2014: U.S. Plans International Plans 2015 2014 2015 2014 Fair value of plan assets $ 407.2 $ 496.1 $ 66.7 $ 71.6 | |
Fair Values by Asset Categories | The target ranges per asset class are as follows: Target Ranges U.S. Plans International Plans Asset Class: Common and preferred stock 0% - 10% — Mutual funds 20% - 30% — Fixed income securities 10% - 30% — Common and collective funds 25% - 55% 100% Hedge funds 0% - 15% — Group annuity contract 0% - 5% — Cash and other investments 0% - 10% — The fair values of the Company's U.S. and International pension plan assets at December 31, 2015 by asset category were as follows: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common and Preferred Stock: U.S. small/mid cap equity $ 14.6 $ 14.6 $ — $ — Mutual Funds (a) : Corporate bonds 14.9 14.9 — — Government bonds 12.9 12.9 — — U.S. large cap equity 0.7 0.7 — — International equities 3.0 3.0 — — Emerging markets international equity 5.1 5.1 — — Other 2.0 2.0 — — Fixed Income Securities: Corporate bonds 41.7 — 41.7 — Government bonds 6.9 — 6.9 — Common and Collective Funds (a) : Corporate bonds 61.5 — 61.5 — Government bonds 56.8 — 56.8 — U.S. large cap equity 71.9 — 71.9 — U.S. small/mid cap equity 15.5 — 15.5 — International equities 77.8 — 77.8 — Emerging markets international equity 14.5 — 14.5 — Cash and cash equivalents (0.8 ) 0.3 (1.1 ) — Other 5.5 — 5.5 — Hedge Funds (a) : Corporate bonds 3.8 — 3.8 — Government bonds 8.6 — 8.6 — U.S. large cap equity 3.8 — 3.8 — Cash and cash equivalents 4.6 — 4.6 — Other 32.1 — 32.1 — Group Annuity Contract 2.8 — 2.8 — Cash and cash equivalents 13.7 13.7 — — Fair value of plan assets at December 31, 2015 $ 473.9 $ 67.2 $ 406.7 $ — (a) The investments in mutual funds, common and collective funds and hedge funds are disclosed above within the respective underlying investments’ class (i.e., various equities, corporate bonds, government bonds and other investment classes), while the fair value hierarchy levels of the investments are based on the Company’s direct ownership unit of account. The fair values of the Company's U.S. and International pension plan assets at December 31, 2014 by asset category were as follows: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Common and Preferred Stock: U.S. small/mid cap equity $ 20.5 $ 20.5 $ — $ — Mutual Funds (a) : Corporate bonds 17.5 17.5 — — Government bonds 13.6 13.6 — — U.S. large cap equity 68.5 68.5 — — International equities 7.3 7.3 — — Emerging markets international equity 6.1 6.1 — — Other 3.1 3.1 — — Fixed Income Securities: Corporate bonds 55.0 — 55.0 — Government bonds 10.9 — 10.9 — Common and Collective Funds (a) : Corporate bonds 75.4 — 75.4 — Government bonds 60.0 — 60.0 — U.S. large cap equity 24.3 — 24.3 — U.S. small/mid cap equity 21.0 — 21.0 — International equities 89.9 — 89.9 — Emerging markets international equity 17.6 — 17.6 — Cash and cash equivalents 3.7 — 3.7 — Other 3.1 — 3.1 — Hedge Funds (a) : Corporate bonds 6.8 — 6.8 — Government bonds (8.8 ) — (8.8 ) — U.S. large cap equity 9.1 — 9.1 — International equities 15.9 — 15.9 — Emerging markets international equity 4.1 — 4.1 — Cash and cash equivalents 26.8 — 26.8 — Other 4.2 — 4.2 — Group Annuity Contract 2.8 — 2.8 — Cash and cash equivalents 9.3 9.3 — — Fair value of plan assets at December 31, 2014 $ 567.7 $ 145.9 $ 421.8 $ — (a) The investments in mutual funds, common and collective funds and hedge funds are disclosed above within the respective underlying investments’ class (i.e., various equities, corporate bonds, government bonds and other investment classes), while the fair value hierarchy levels of the investments are based on the Company’s direct ownership unit of account. | |
Changes in Fair Values of Plan Assets | The following table sets forth a summary of changes in the fair values of the Company's U.S. and International pension plans’ Level 3 assets for 2014: Total Fixed Income Securities Hedge Funds Balance, January 1, 2014 $ 1.9 $ 1.9 $ — Purchases, sales, and settlements, net (0.5 ) (0.5 ) — Transfers out of Level 3 (1.4 ) (1.4 ) — Balance, December 31, 2014 $ — $ — $ — | |
Expected Future Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid out of the Company’s pension and other post-retirement benefit plans: Total Pension Benefits Total Other Benefits 2016 $ 41.7 $ 1.0 2017 41.6 1.0 2018 42.1 1.0 2019 42.4 1.0 2020 42.9 1.0 Years 2021 to 2025 212.4 4.9 |
STOCK COMPENSATION PLAN - 10K (
STOCK COMPENSATION PLAN - 10K (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock Compensation Plan [Abstract] | |
Stock Option Activity | There was no stock option activity for 2015. A summary of stock option activity for each of 2014 and 2013 is presented below: Stock Options (000's) Weighted Average Exercise Price Outstanding at January 1, 2013 8.1 $ 29.91 Forfeited and expired (7.3 ) 30.17 Outstanding at January 1, 2014 0.8 27.50 Forfeited and expired (0.8 ) 27.50 Outstanding at December 31, 2014 — — |
Restricted Stock and Restricted Stock Unit Activity | A summary of the restricted stock and restricted stock unit activity for each of 2015, 2014 and 2013 is presented in the following table: Restricted Stock (000's) Weighted Average Grant Date Fair Value Outstanding at January 1, 2013 — $ — Granted 120.0 24.80 Outstanding at December 31, 2013 120.0 24.80 Granted 693.4 31.01 Vested (a) (40.0 ) 24.80 Outstanding at December 31, 2014 773.4 30.37 Granted 220.6 29.46 Vested (a) (171.7 ) 29.09 Forfeited (57.5 ) 30.44 Outstanding at December 31, 2015 764.8 30.39 (a) Of the amounts vested during 2015 and 2014, 82,740 and 22,328 shares, respectively, were withheld by the Company to satisfy certain grantees’ minimum withholding tax requirements, which withheld shares became Revlon, Inc. treasury stock and are not sold on the open market. |
INCOME TAXES - 10K (Tables)
INCOME TAXES - 10K (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Before Income Taxes and Provision for Income Taxes | The Company's income before income taxes and the applicable provision for income taxes are as follows: Year Ended December 31, 2015 2014 2013 Income (loss) from continuing operations before income taxes: United States $ 123.4 $ 146.9 $ 36.0 Foreign (3.7 ) (19.7 ) 44.6 $ 119.7 $ 127.2 $ 80.6 Provision for (benefit from) income taxes: United States federal $ 40.9 $ 58.2 $ 27.4 State and local 16.7 17.9 13.8 Foreign (3.2 ) 5.1 7.4 $ 54.4 $ 81.2 $ 48.6 Current: United States federal $ (2.7 ) $ 2.6 $ 3.2 State and local 3.9 3.5 0.7 Foreign 21.7 7.2 11.3 22.9 13.3 15.2 Deferred: United States federal 43.6 55.6 24.2 State and local 12.8 14.4 13.1 Foreign (24.9 ) (2.1 ) (3.9 ) 31.5 67.9 33.4 Total provision for income taxes $ 54.4 $ 81.2 $ 48.6 |
Reconciliation of Statutory Federal Income Tax Rate | The actual tax on income before income taxes is reconciled to the applicable statutory federal income tax rate in the following table: Year Ended December 31, 2015 2014 2013 Computed income tax expense $ 41.9 $ 44.5 $ 28.2 State and local taxes, net of U.S. federal income tax benefit 10.9 20.5 8.9 Foreign and U.S. tax effects attributable to operations outside the U.S. 13.6 5.8 (6.2 ) Net establishment (release) of valuation allowance (15.5 ) 6.4 — Foreign dividends and earnings taxable in the U.S. 3.2 5.4 11.0 Acquisition costs for which there is no tax benefit — — 2.7 Other 0.3 (1.4 ) 4.0 Tax expense $ 54.4 $ 81.2 $ 48.6 |
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at December 31, 2015 and 2014 were comprised of the following: December 31, 2015 2014 Deferred tax assets: Inventories $ 7.3 $ 7.6 Net operating loss carryforwards - U.S. 27.6 77.6 Net operating loss carryforwards - foreign 51.4 57.9 Employee benefits 96.7 100.7 State and local taxes — 2.7 Sales related reserves 25.8 26.2 Foreign currency translation adjustment 11.0 3.9 Other 52.7 46.1 Total gross deferred tax assets 272.5 322.7 Less valuation allowance (47.1 ) (57.1 ) Total deferred tax assets, net of valuation allowance 225.4 265.6 Deferred tax liabilities: Plant, equipment and other assets (29.9 ) (30.0 ) Intangibles (82.4 ) (88.0 ) Other (63.2 ) (55.2 ) Total gross deferred tax liabilities (175.5 ) (173.2 ) Net deferred tax assets $ 49.9 $ 92.4 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of the unrecognized tax benefits is provided in the following table: Balance at January 1, 2014 $ 74.5 Increase based on tax positions taken in a prior year 12.6 Decrease based on tax positions taken in a prior year (22.8 ) Increase based on tax positions taken in the current year 8.0 Decrease resulting from the lapse of statutes of limitations (10.3 ) Balance at December 31, 2014 62.0 Increase based on tax positions taken in a prior year 5.6 Decrease based on tax positions taken in a prior year (5.8 ) Increase based on tax positions taken in the current year 8.5 Decrease resulting from the lapse of statutes of limitations (5.3 ) Balance at December 31, 2015 $ 65.0 |
ACCUMULATED OTHER COMPREHENSI72
ACCUMULATED OTHER COMPREHENSIVE LOSS - 10K (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Loss [Abstract] | ||
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss as of June 30, 2016 are as follows: Foreign Currency Translation Actuarial (Loss) Gain on Post-retirement Benefits Deferred Gain (Loss) - Hedging Other Accumulated Other Comprehensive Loss Balance at January 1, 2016 $ (23.5 ) $ (217.7 ) $ (3.8 ) $ (0.3 ) $ (245.3 ) Currency translation adjustment, net of tax of $0.6 million 5.3 5.3 Amortization of pension related costs, net of tax of $0.7 million (a) 3.8 3.8 Revaluation of derivative financial instrument, net of amounts reclassified into earnings and tax benefit of $0.4 million (b) $ (0.7 ) (0.7 ) Other comprehensive income (loss) 5.3 3.8 (0.7 ) — 8.4 Balance at June 30, 2016 $ (18.2 ) $ (213.9 ) $ (4.5 ) $ (0.3 ) $ (236.9 ) (a) Amounts represent the change in accumulated other comprehensive loss as a result of the amortization of actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 11, “Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. (b) For the six months ended June 30, 2016 , the Company's 2013 Interest Rate Swap was deemed effective and therefore, the changes in fair value related to the 2013 Interest Rate Swap were recorded in other comprehensive income (loss). See Note 10, "Financial Instruments," for further discussion of the 2013 Interest Rate Swap. | The components of accumulated other comprehensive loss as of December 31, 2015 , 2014 and 2013 are as follows: Foreign Currency Translation Actuarial (Loss) Gain on Post-retirement Benefits Deferred Gain (Loss) - Hedging Other Accumulated Other Comprehensive Loss Balance at January 1, 2013 $ 23.3 $ (231.5 ) $ — $ — $ (208.2 ) Currency translation adjustment, net of tax of $3.3 million (4.1 ) — — — (4.1 ) Amortization of pension related costs, net of tax of $(1.2) million (a) — 7.7 — — 7.7 Pension re-measurement, net of tax of $(33.5) million — 53.3 — — 53.3 Revaluation of derivative financial instrument, net of tax of $(1.0) million (b) — — 1.5 — 1.5 Balance at December 31, 2013 $ 19.2 $ (170.5 ) $ 1.5 $ — $ (149.8 ) Currency translation adjustment, net of tax of $2.1 million (24.6 ) — — — (24.6 ) Amortization of pension related costs, net of tax of $(0.1) million (a) — 4.5 — — 4.5 Pension re-measurement, net of tax of $42.0 million — (69.6 ) — — (69.6 ) Revaluation of derivative financial instrument, net of tax of $2.3 million (b) — — (3.7 ) — (3.7 ) Other — 0.3 — (0.3 ) — Balance at December 31, 2014 $ (5.4 ) $ (235.3 ) $ (2.2 ) $ (0.3 ) $ (243.2 ) Currency translation adjustment, net of tax of $5.1 million $ (18.1 ) (18.1 ) Amortization of pension related costs, net of tax of $(1.3) million (a) $ 7.2 7.2 Pension re-measurement, net of tax of $3.3 million $ (6.9 ) (6.9 ) Settlement of certain pension liabilities, net of tax of $(3.7) million (b) $ 17.3 $ — 17.3 Revaluation of derivative financial instrument, net of amounts reclassified into earnings and tax benefit of $1.0 million (c) $ (1.6 ) (1.6 ) Other comprehensive loss (18.1 ) 17.6 (1.6 ) — (2.1 ) Balance at December 31, 2015 $ (23.5 ) $ (217.7 ) $ (3.8 ) $ (0.3 ) $ (245.3 ) (a) Amounts represent the change in Accumulated Other Comprehensive Loss as a result of the amortization of actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 14, “Savings Plan, Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. (b) Amount primarily consists of the pension lump sum settlement charge, net of taxes, recorded during the fourth quarter of 2015. See Note 14, “Savings Plan, Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. (c) For the 2015, 2014 and 2013, the Company's 2013 Interest Rate Swap was deemed effective and therefore, the changes in fair value related to the 2013 Interest Rate Swap were recorded in other comprehensive income (loss). See Note 13, "Financial Instruments," for further discussion of the 2013 Interest Rate Swap. |
Reclassification out of Accumulated Other Comprehensive Loss | As shown above, comprehensive loss includes changes in the fair value of the 2013 Interest Rate Swap, which qualifies for hedge accounting. A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of June 30, 2016 are as follows: 2013 Interest Rate Swap Beginning accumulated losses at March 31, 2016 (4.7 ) Reclassifications into earnings (net of $0.4 million tax expense) (a) 0.7 Change in fair value (net of $0.3 million tax benefit) (0.5 ) Ending accumulated losses at June 30, 2016 $ (4.5 ) 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2015 (3.8 ) Reclassifications into earnings (net of $0.8 million tax expense) (a) 1.3 Change in fair value (net of $1.2 million tax benefit) (2.0 ) Ending accumulated losses at June 30, 2016 $ (4.5 ) (a) Reclassified to interest expense. A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of June 30, 2015 are as follows: 2013 Interest Rate Swap Beginning accumulated losses at March 31, 2015 (4.1 ) Reclassifications into earnings (net of $0.2 million tax expense) (a) 0.3 Change in fair value (net of $0.2 million tax benefit) (0.4 ) Ending accumulated losses at June 30, 2015 $ (4.2 ) 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2014 (2.2 ) Reclassifications into earnings (net of $0.2 million tax expense) (a) 0.3 Change in fair value (net of $1.4 million tax benefit) (2.3 ) Ending accumulated losses at June 30, 2015 $ (4.2 ) (a) Reclassified to interest expense. | As shown above, comprehensive loss includes changes in the fair value of the 2013 Interest Rate Swap, which qualifies for hedge accounting. A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of December 31, 2015 are as follows: 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2014 (2.2 ) Reclassifications into earnings (net of $1.0 million tax expense) (a) 1.6 Change in fair value (net of $2.0 million tax benefit) (3.2 ) Ending accumulated losses at December 31, 2015 $ (3.8 ) (a) Reclassified to interest expense. |
SEGMENT DATA AND RELATED INFO73
SEGMENT DATA AND RELATED INFORMATION - 10K (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Segment Data and Related Information [Abstract] | ||
Schedule of Segment Reporting Information, by Segment | The following table is a comparative summary of the Company’s net sales and segment profit by reportable segment for the three and six months ended June 30, 2016 and 2015 . Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Segment Net Sales: Consumer $ 359.5 $ 354.7 $ 679.5 $ 679.0 Professional 123.3 123.4 238.4 237.6 Other $ 6.1 $ 4.3 10.6 4.3 Total $ 488.9 $ 482.4 $ 928.5 $ 920.9 Segment Profit: Consumer $ 81.0 $ 83.8 $ 139.4 $ 146.0 Professional 24.1 24.3 49.7 53.5 Other $ 0.1 $ 0.2 (0.8 ) 0.2 Total $ 105.2 $ 108.3 $ 188.3 $ 199.7 Reconciliation: Segment Profit $ 105.2 $ 108.3 $ 188.3 $ 199.7 Less: Unallocated corporate expenses 16.2 15.8 30.4 30.5 Depreciation and amortization 26.3 25.2 52.2 50.8 Non-cash stock compensation expense 1.1 1.2 3.3 2.8 Non-Operating items: Restructuring and related charges 0.5 (3.0 ) 1.8 (2.3 ) Acquisition and integration costs 5.5 4.7 6.0 5.9 Deferred compensation related to CBB acquisition 0.9 0.7 1.8 — 0.7 Inventory purchase accounting adjustment, cost of sales 0.1 0.6 0.1 0.6 Operating Income 54.6 63.1 92.7 110.7 Less: Interest Expense 20.9 20.5 41.9 40.5 Amortization of debt issuance costs 1.4 1.4 2.9 2.8 Foreign currency losses (gains), net 8.5 (7.9 ) 5.1 8.0 Miscellaneous, net 0.2 0.2 0.5 0.2 Income from continuing operations before income taxes $ 23.6 $ 48.9 $ 42.3 $ 59.2 As of June 30, 2016 , the Company had operations established in 23 countries outside of the U.S. and its products are sold throughout the world. Generally, net sales by geographic area are presented by attributing revenues from external customers on the basis of where the products are sold. | The following table is a comparative summary of the Company’s net sales and segment profit by reportable segment for each of 2015, 2014 , and 2013. In the table below, certain prior period amounts have been reclassified to conform to the presentation for 2015. Twelve Months Ended December 31, 2015 2014 2013 Segment Net Sales: Consumer $ 1,414.8 $ 1,438.3 $ 1,394.2 Professional 471.1 502.7 100.5 Other $ 28.4 $ — $ — Total $ 1,914.3 $ 1,941.0 $ 1,494.7 Segment Profit: Consumer (a) $ 360.2 $ 339.4 $ 342.3 Professional 103.9 104.8 5.1 Other $ 1.4 $ — $ — Total $ 465.5 $ 444.2 $ 347.4 Reconciliation: Segment Profit $ 465.5 $ 444.2 $ 347.4 Less: Unallocated corporate expenses (a) 79.0 59.2 53.8 Depreciation and amortization 103.2 102.6 — 76.7 Non-cash stock compensation expense 5.1 5.5 0.2 Non-Operating items: Restructuring and related charges 11.6 22.6 4.5 Acquisition and integration costs 8.0 6.4 25.4 Inventory purchase accounting adjustment, cost of sales 0.9 2.6 8.5 Pension Lump sum settlement 20.7 — — Goodwill impairment charge 9.7 — — Deferred Compensation related to CBB Acquisition 2.5 — — Gain from insurance proceeds related to Venezuela fire — — (26.4 ) Accrual for clean-up costs related to destroyed facility in Venezuela — — 7.6 Operating Income 224.8 245.3 197.1 Less: Interest Expense 83.3 84.4 78.6 Amortization of debt issuance costs 5.7 5.5 3.5 Loss on early extinguishment of debt — 2.0 29.7 Foreign currency losses (gains), net 15.7 25.0 3.7 Miscellaneous, net 0.4 1.2 1.0 Income from continuing operations before income taxes $ 119.7 $ 127.2 $ 80.6 (a) During the second quarter of 2015, the Company removed pension-related costs for its U.S. qualified defined benefit pension plans from the measurement of its operating segment results. As a result, $8.2 million and $4.9 million of pension-related costs were reclassified from the measurement of Consumer segment profit and included as a component of unallocated corporate expenses for 2014 and 2013, respectively. |
Schedule of Net Sales and Long-Lived Assets by Geographic Area | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Geographic area: Net sales: United States $ 263.0 54% $ 267.0 55% $ 510.7 55% $ 511.4 56% Outside of the United States 225.9 46% 215.4 45% 417.8 45% 409.5 44% $ 488.9 $ 482.4 $ 928.5 $ 920.9 June 30, 2016 December 31, 2015 Long-lived assets, net: United States $ 853.0 77% $ 854.7 79% Outside of the United States 258.8 23% 232.4 21% $ 1,111.8 $ 1,087.1 | the tables below, certain prior year amounts have been reclassified to conform to the current period’s presentation. Year Ended December 31, 2015 2014 2013 Geographic area: Net sales: United States $ 1,043.7 55% $ 1,021.9 53% $ 832.8 56% Outside of the United States 870.6 45% 919.1 47% $ 661.9 44% $ 1,914.3 $ 1,941.0 $ 1,494.7 December 31, 2015 December 31, 2014 Long-lived assets, net: United States $ 874.7 79% $ 845.5 76% Outside of the United States 232.4 21% 271.7 24% $ 1,107.1 $ 1,117.2 |
Schedule of Net Sales by Classes of Similar Products | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Classes of similar products: Net sales: Color cosmetics $ 263.4 54% $ 266.0 55% $ 487.7 52% $ 505.5 55% Hair care 134.7 27% 130.0 27% 266.8 29% 256.9 28% Beauty care and fragrance 90.8 19% 86.4 18% 174.0 19% 158.5 17% $ 488.9 $ 482.4 $ 928.5 $ 920.9 | Year Ended December 31, 2015 2014 2013 Classes of similar products: Net sales: Color cosmetics $ 1,026.4 54% $ 1,032.4 53% $ 926.4 62% Hair care 522.1 27% 545.0 28% 263.9 18% Beauty care and fragrance 365.8 19% 363.6 19% 304.4 20% $ 1,914.3 $ 1,941.0 $ 1,494.7 |
COMMITMENTS AND CONTINGENCIES74
COMMITMENTS AND CONTINGENCIES - 10K (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Minimum rental commitments, capital leases | Minimum rental commitments under all non-cancelable leases, including those pertaining to idled facilities, are presented in the following table: Minimum Rental Commitments Total 2016 2017 2018 2019 2020 Thereafter Capital leases $ 5.4 $ 3.1 $ 1.4 $ 0.6 $ 0.3 $ — $ — Operating leases 127.1 22.6 17.7 14.4 12.8 7.7 51.9 |
Minimum rental commitments, operating leases | Minimum rental commitments under all non-cancelable leases, including those pertaining to idled facilities, are presented in the following table: Minimum Rental Commitments Total 2016 2017 2018 2019 2020 Thereafter Capital leases $ 5.4 $ 3.1 $ 1.4 $ 0.6 $ 0.3 $ — $ — Operating leases 127.1 22.6 17.7 14.4 12.8 7.7 51.9 |
QUARTERLY RESULTS OF OPERATIO75
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) - 10K (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Results of Operations [Abstract] | |
Summary of Unaudited Quarterly Results of Operations | The following is a summary of the Company’s unaudited quarterly results of operations for each of 2015 and 2014: Year Ended December 31, 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 438.5 $ 482.4 $ 471.5 $ 521.9 Gross profit 296.2 321.1 303.7 325.5 (Loss) income from continuing operations, net of taxes (a)(b) 0.7 27.5 9.4 27.7 (Loss) income from discontinued operations, net of taxes (e) (0.1 ) — (1.7 ) (1.4 ) Net (loss) income (a)(b) 0.6 27.5 7.7 26.3 Year Ended December 31, 2014 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net sales $ 469.8 $ 497.9 $ 472.3 $ 501.0 Gross profit 306.3 330.7 307.7 328.0 Income from continuing operations, net of taxes (c)(d) 10.2 15.9 15.8 4.1 (Loss) income from discontinued operations, net of taxes (e) (3.2 ) 3.7 0.4 0.4 Net income (d)(e) 7.0 19.6 16.2 4.5 (a) Income from continuing operations and net income for the first quarter of 2015 were unfavorably impacted by foreign currency losses, net, of $15.9 million , primarily due to the unfavorable impacts of the revaluation of certain U.S. Dollar denominated intercompany payables, as well as a $1.9 million foreign currency loss recognized in the first quarter of 2015 as a result of the re-measurement of Revlon Venezuela's balance sheet during the first quarter of 2015. (b) Income from continuing operations and net income for the fourth quarter of 2015 were impacted by: (i) a $20.7 million pension lump sum settlement charge related to the accounting for a one-time cash lump sum payment, which requires that a portion of pension losses within accumulated other comprehensive loss be realized in the period that related pension liabilities are settled (see Note 14, "Savings Plan, Pension and Post-retirement Benefits"); (ii) an increase in net income driven by the net reduction of the Company's deferred tax valuation allowance on its net deferred tax assets for certain foreign jurisdictions, which has been reflected in the provision for income taxes for 2015 (See Note 16, "Income Taxes"); (iii) a $9.7 million non-cash goodwill impairment charge related to the Global Color Brands reporting unit (see Note 8, "Goodwill and Intangible Assets"); and (iv) $9.5 million in restructuring charges related to the 2015 Efficiency Program (see Note 3, "Restructuring Charges"). (c) Income from continuing operations and net income for the first quarter of 2014 were unfavorably impacted by restructuring charges of $13.5 million related to the Integration Program, as well as $3.8 million of acquisition and integration costs related to the Colomer Acquisition. (See Note 2, "Business Combinations," and Note 3, “Restructuring Charges”). Additionally, in the first quarter of 2014, the Company incurred a $1.9 million aggregate loss on early extinguishment of debt due to the February 2014 Term Loan Amendment. (See Note 11, “Long-Term Debt”). (d) Income from continuing operations and net income for the second and third quarter of 2014 were unfavorably impacted by foreign currency losses, net, of $7.2 million and $9.3 million , respectively, related to the required re-measurement of Revlon Venezuela's monetary assets and liabilities at June 30, 2014, and the results of unfavorable impacts of the revaluation of certain U.S. Dollar denominated intercompany payables during the third quarter of 2014. (See Note 1, "Description of Business and Summary of Significant Accounting Policies - Foreign Currency Translation" for further discussion on Venezuela foreign currency restrictions and related devaluation). (e) (Loss) income from discontinued operations includes the results of the Company's former China operations (See Note 4, "Discontinued Operations"). |
GUARANTOR FINANCIAL INFORMATI76
GUARANTOR FINANCIAL INFORMATION - 10K (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets As of June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 61.9 $ 71.4 $ 52.5 $ — $ 185.8 Trade receivables, less allowances for doubtful accounts 93.9 45.3 129.2 — 268.4 Inventories 92.5 38.0 79.1 — 209.6 Prepaid expenses and other 154.6 6.8 40.1 — 201.5 Intercompany receivables 778.9 451.2 79.2 (1,309.3 ) — Investment in subsidiaries 576.4 (6.2 ) — (570.2 ) — Property, plant and equipment, net 127.4 26.7 62.7 — 216.8 Deferred income taxes 7.2 — 34.5 — 41.7 Goodwill 182.4 30.0 264.3 — 476.7 Intangible assets, net 53.8 152.8 122.3 — 328.9 Other assets 50.6 13.4 25.4 — 89.4 Total assets $ 2,179.6 $ 829.4 $ 889.3 $ (1,879.5 ) $ 2,018.8 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 14.1 $ — $ 14.1 Current portion of long-term debt 6.7 — 0.1 — 6.8 Accounts payable 74.2 28.7 84.7 — 187.6 Accrued expenses and other 134.4 16.5 82.3 — 233.2 Intercompany payables 427.6 461.3 420.4 (1,309.3 ) — Long-term debt 1,783.1 — 0.5 — 1,783.6 Other long-term liabilities 211.1 5.9 34.0 — 251.0 Total liabilities 2,637.1 512.4 636.1 (1,309.3 ) 2,476.3 Stockholder’s deficiency (457.5 ) 317.0 253.2 (570.2 ) (457.5 ) Total liabilities and stockholder’s deficiency $ 2,179.6 $ 829.4 $ 889.3 $ (1,879.5 ) $ 2,018.8 Condensed Consolidating Balance Sheets As of December 31, 2015 (as adjusted) Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 Trade receivables, less allowances for doubtful accounts 79.7 44.5 120.7 — 244.9 Inventories 88.1 34.5 61.2 — 183.8 Prepaid expenses and other 136.9 3.3 30.5 — 170.7 Intercompany receivables 692.1 366.5 95.2 (1,153.8 ) — Investment in subsidiaries 591.0 16.3 — (607.3 ) — Property, plant and equipment, net 124.8 28.1 62.4 — 215.3 Deferred income taxes 5.8 — 44.0 — 49.8 Goodwill 182.4 30.0 257.3 — 469.7 Intangible assets, net 56.6 156.7 104.7 — 318.0 Other assets 49.4 9.6 25.1 — 84.1 Total assets $ 2,148.3 $ 782.5 $ 893.5 $ (1,761.1 ) $ 2,063.2 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 11.3 $ — $ 11.3 Current portion of long-term debt 29.9 — 0.1 — 30.0 Accounts payable 85.3 29.2 86.8 — 201.3 Accrued expenses and other 175.1 18.9 78.4 — 272.4 Intercompany payables 360.4 401.0 392.4 (1,153.8 ) — Long-term debt 1,783.2 — 0.5 — 1,783.7 Other long-term liabilities 206.0 0.8 49.3 — 256.1 Total liabilities 2,639.9 449.9 618.8 (1,153.8 ) 2,554.8 Stockholder's deficiency (491.6 ) 332.6 274.7 (607.3 ) (491.6 ) Total liabilities and stockholder’s deficiency 2,148.3 782.5 893.5 (1,761.1 ) 2,063.2 | Condensed Consolidating Balance Sheets As of December 31, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 Trade receivables, less allowances for doubtful accounts 79.7 44.5 120.7 — 244.9 Inventories 88.1 34.5 61.2 — 183.8 Deferred income taxes - current 49.4 — 8.6 — 58.0 Prepaid expenses and other 136.9 3.3 30.5 — 170.7 Intercompany receivables 692.1 366.5 95.2 (1,153.8 ) — Investment in subsidiaries 591.0 16.3 — (607.3 ) — Property, plant and equipment, net 124.8 28.1 62.4 — 215.3 Deferred income taxes - noncurrent 3.1 — 35.4 — 38.5 Goodwill 182.4 30.0 257.3 — 469.7 Intangible assets, net 56.6 156.7 104.7 — 318.0 Other assets 69.4 9.6 25.1 — 104.1 Total assets $ 2,215.0 $ 782.5 $ 893.5 $ (1,761.1 ) $ 2,129.9 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 11.3 $ — $ 11.3 Current portion of long-term debt 29.9 — 0.1 — 30.0 Accounts payable 85.3 29.2 86.8 — 201.3 Accrued expenses and other 175.1 18.9 78.4 — 272.4 Intercompany payables 360.4 401.0 392.4 (1,153.8 ) — Long-term debt 1,803.2 — 0.5 — 1,803.7 Other long-term liabilities 252.7 0.8 49.3 — 302.8 Total liabilities 2,706.6 449.9 618.8 (1,153.8 ) 2,621.5 Stockholder’s deficiency (491.6 ) 332.6 274.7 (607.3 ) (491.6 ) Total liabilities and stockholder’s deficiency $ 2,215.0 $ 782.5 $ 893.5 $ (1,761.1 ) $ 2,129.9 (a) In January 2015, a newly-formed U.S.-domiciled entity in the Professional segment became an additional guarantor under Products Corporation’s Amended Term Loan Facility, Amended Revolving Credit Facility and the indenture for Products Corporation’s 5¾% Senior Notes. In connection with the CBB Acquisition, in May 2015 the Company’s newly-formed U.S.-domiciled subsidiary, RML, LLC, also became an additional guarantor under such debt instruments. Condensed Consolidating Balance Sheets As of December 31, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 104.2 $ 88.1 $ 83.0 $ — $ 275.3 Trade receivables, less allowances for doubtful accounts 87.8 39.7 111.4 — 238.9 Inventories 75.5 30.6 50.5 — 156.6 Deferred income taxes - current 46.2 — 12.2 — 58.4 Prepaid expenses and other 119.0 6.2 24.8 — 150.0 Intercompany receivables 992.5 630.0 129.6 (1,752.1 ) — Investment in subsidiaries 562.8 (161.4 ) — (401.4 ) — Property, plant and equipment, net 112.4 28.0 71.6 — 212.0 Deferred income taxes - noncurrent 22.6 — 12.2 — 34.8 Goodwill 185.8 30.0 248.3 — 464.1 Intangible assets, net 53.2 164.6 110.0 — 327.8 Other assets 83.2 2.9 27.2 — 113.3 Total assets $ 2,445.2 $ 858.7 $ 880.8 $ (2,153.5 ) $ 2,031.2 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 6.6 $ — $ 6.6 Current portion of long-term debt 31.5 — — — 31.5 Accounts payable 68.3 19.0 66.2 — 153.5 Accrued expenses and other 159.0 24.5 89.8 — 273.3 Intercompany payables 672.9 703.6 375.6 (1,752.1 ) — Long-term debt 1,831.7 — 0.7 — 1,832.4 Other long-term liabilities 238.8 4.4 47.7 — 290.9 Total liabilities 3,002.2 751.5 586.6 (1,752.1 ) 2,588.2 Stockholder’s deficiency (557.0 ) 107.2 294.2 (401.4 ) (557.0 ) Total liabilities and stockholder’s deficiency $ 2,445.2 $ 858.7 $ 880.8 $ (2,153.5 ) $ 2,031.2 |
Condensed Income Statement and Statement of Comprehensive Income | Condensed Consolidating Statements of Income and Comprehensive Income For the Three Months Ended June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 229.4 $ 85.6 $ 187.8 $ (13.9 ) $ 488.9 Cost of sales 83.0 31.8 70.6 (13.9 ) 171.5 Gross profit 146.4 53.8 117.2 — 317.4 Selling, general and administrative expenses 123.7 37.2 95.9 — 256.8 Acquisition and integration costs 5.2 — 0.3 — 5.5 Restructuring charges and other, net (0.2 ) 0.1 0.6 — 0.5 Operating income 17.7 16.5 20.4 — 54.6 Other expenses (income): Intercompany interest, net (2.0 ) (0.2 ) 2.2 — — Interest expense 20.7 — 0.2 — 20.9 Amortization of debt issuance costs 1.4 — — — 1.4 Foreign currency losses (gains), net 1.8 (0.6 ) 7.3 — 8.5 Miscellaneous, net (12.5 ) (3.2 ) 15.9 — 0.2 Other expenses (income), net 9.4 (4.0 ) 25.6 — 31.0 Income (loss) from continuing operations before income taxes 8.3 20.5 (5.2 ) — 23.6 (Benefit from) provision for income taxes (3.8 ) 12.8 2.8 — 11.8 Income (loss) from continuing operations 12.1 7.7 (8.0 ) — 11.8 Loss from discontinued operations, net of taxes — — (2.5 ) — (2.5 ) Equity in loss of subsidiaries (2.8 ) (6.2 ) — 9.0 — Net income (loss) $ 9.3 $ 1.5 $ (10.5 ) $ 9.0 $ 9.3 Other comprehensive income (loss) 4.8 (3.1 ) (5.4 ) 8.5 4.8 Total comprehensive income (loss) $ 14.1 $ (1.6 ) $ (15.9 ) $ 17.5 $ 14.1 Condensed Consolidating Statements of Income and Comprehensive Income For the Three Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 268.4 $ 85.3 $ 178.6 $ (49.9 ) $ 482.4 Cost of sales 114.4 33.0 63.8 (49.9 ) 161.3 Gross profit 154.0 52.3 114.8 — 321.1 Selling, general and administrative expenses 119.3 40.2 97.4 — 256.9 Acquisition and integration costs 4.7 — — — 4.7 Restructuring charges and other, net (0.7 ) 0.6 — (3.5 ) — (3.6 ) Operating income 30.7 11.5 20.9 — 63.1 Other expenses (income): Intercompany interest, net (2.1 ) — 2.1 — — Interest expense 20.3 — 0.2 — 20.5 Amortization of debt issuance costs 1.4 — — — 1.4 Foreign currency (gains), net (1.4 ) — (6.5 ) — (7.9 ) Miscellaneous, net 11.4 (2.9 ) (8.3 ) — 0.2 Other expenses (income), net 29.6 (2.9 ) (12.5 ) — 14.2 Income from continuing operations before income taxes 1.1 14.4 33.4 — 48.9 Provision for income taxes 9.5 9.5 2.4 — 21.4 Loss (income) from continuing operations (8.4 ) 4.9 31.0 — 27.5 Income from discontinued operations, net of taxes — — — — — Equity in loss of subsidiaries 35.9 22.6 — (58.5 ) — Net income $ 27.5 $ 27.5 $ 31.0 $ (58.5 ) $ 27.5 Other comprehensive income (loss) 2.5 (1.8 ) 1.8 — 2.5 Total comprehensive income $ 30.0 $ 25.7 $ 32.8 $ (58.5 ) $ 30.0 Condensed Consolidating Statements of Income and Comprehensive Income For the Six Months Ended June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 428.1 $ 168.6 $ 346.0 $ (14.2 ) $ 928.5 Cost of sales 145.2 62.2 132.2 (14.2 ) 325.4 Gross profit 282.9 106.4 213.8 — 603.1 Selling, general and administrative expenses 247.7 72.8 182.1 — 502.6 Acquisition and integration costs 5.6 — 0.4 — 6.0 Restructuring charges and other, net — 0.7 1.1 — 1.8 Operating income 29.6 32.9 30.2 — 92.7 Other expenses (income): Intercompany interest, net (4.3 ) 0.1 4.2 — — Interest expense 41.6 — 0.3 — 41.9 Amortization of debt issuance costs 2.9 — — — 2.9 Foreign currency losses (gains), net 2.1 (0.3 ) 3.3 — 5.1 Miscellaneous, net (34.7 ) 3.8 31.4 — 0.5 Other expenses, net 7.6 3.6 39.2 — 50.4 Income (loss) from continuing operations before income taxes 22.0 29.3 (9.0 ) — 42.3 (Benefit from) provision for income taxes (8.5 ) 26.2 0.2 — 17.9 Income (loss) from continuing operations 30.5 3.1 (9.2 ) — 24.4 Loss from discontinued operations, net of taxes — — (2.1 ) — (2.1 ) Equity in loss of subsidiaries (8.2 ) (12.1 ) — 20.3 — Net income (loss) $ 22.3 $ (9.0 ) $ (11.3 ) $ 20.3 $ 22.3 Other comprehensive income (loss) 8.4 (7.5 ) (8.2 ) 15.7 8.4 Total comprehensive income (loss) $ 30.7 $ (16.5 ) $ (19.5 ) $ 36.0 $ 30.7 Condensed Consolidating Statements of Income and Comprehensive Income For the Six Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 511.8 $ 166.3 $ 334.8 $ (92.0 ) $ 920.9 Cost of sales 215.6 60.7 119.3 (92.0 ) 303.6 Gross profit 296.2 105.6 215.5 — 617.3 Selling, general and administrative expenses 245.8 68.8 189.2 — 503.8 Acquisition and integration costs 5.9 — — — 5.9 Restructuring charges and other, net (0.5 ) 0.7 (3.3 ) — (3.1 ) Operating income 45.0 36.1 29.6 — 110.7 Other expenses (income): Intercompany interest, net (4.1 ) (0.1 ) 4.2 — — Interest expense 40.3 — 0.2 — 40.5 Amortization of debt issuance costs 2.8 — — — 2.8 Foreign currency (gains) losses, net (1.2 ) (0.5 ) 9.7 — 8.0 Miscellaneous, net (6.2 ) (1.4 ) 7.8 — 0.2 Other expenses (income), net 31.6 (2.0 ) 21.9 — 51.5 Income from continuing operations before income taxes 13.4 38.1 7.7 — 59.2 Provision for income taxes 11.0 18.1 1.9 — 31.0 Income from continuing operations 2.4 20.0 5.8 — 28.2 Loss from discontinued operations, net of taxes — — (0.1 ) — (0.1 ) Equity in loss of subsidiaries 25.7 12.4 — (38.1 ) — Net income $ 28.1 $ 32.4 $ 5.7 $ (38.1 ) $ 28.1 Other comprehensive loss (11.1 ) (2.8 ) (13.3 ) 16.1 (11.1 ) Total comprehensive income (loss) $ 17.0 $ 29.6 $ (7.6 ) $ (22.0 ) $ 17.0 | Condensed Consolidating Statements of Income and Comprehensive Income Twelve Months Ended December 31, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 1,049.4 $ 340.4 $ 730.7 $ (206.2 ) $ 1,914.3 Cost of sales 466.0 129.4 278.6 (206.2 ) 667.8 Gross profit 583.4 211.0 452.1 — 1,246.5 Selling, general and administrative expenses 495.0 131.2 367.3 — 993.5 Acquisition and integration costs 7.1 — 0.9 — 8.0 Restructuring charges and other, net 6.6 0.4 3.5 — 10.5 Impairment Charge 9.7 — — — 9.7 Operating income 65.0 79.4 80.4 — 224.8 Other expenses (income): Intercompany interest, net (8.2 ) (0.1 ) 8.3 — — Interest expense 82.5 — 0.8 — 83.3 Amortization of debt issuance costs 5.7 — — — 5.7 Foreign currency (gains) losses, net 0.4 (0.6 ) 15.9 — 15.7 Miscellaneous, net (54.2 ) (0.1 ) 54.7 — 0.4 Other expenses (income), net 26.2 (0.8 ) 79.7 — 105.1 Income (loss) from continuing operations before income taxes 38.8 80.2 0.7 — 119.7 Provision for income taxes 16.0 36.2 2.2 — 54.4 (Loss) income from continuing operations 22.8 44.0 (1.5 ) — 65.3 Income (loss) from discontinued operations, net of taxes — — (3.2 ) — (3.2 ) Equity in income of subsidiaries 39.3 43.1 — (82.4 ) — Net income (loss) $ 62.1 $ 87.1 $ (4.7 ) $ (82.4 ) $ 62.1 Other comprehensive (loss) income (2.1 ) (1.5 ) (18.8 ) 20.3 (2.1 ) Total comprehensive (loss) income $ 60.0 $ 85.6 $ (23.5 ) $ (62.1 ) $ 60.0 (a) In January 2015, a newly-formed U.S.-domiciled entity in the Professional segment became an additional guarantor under Products Corporation’s Amended Term Loan Facility, Amended Revolving Credit Facility and the indenture for Products Corporation’s 5¾% Senior Notes. In connection with the CBB Acquisition, in May 2015 the Company’s newly-formed U.S.-domiciled subsidiary, RML, LLC, also became an additional guarantor under such debt instruments. Condensed Consolidating Statements of Income and Comprehensive Income Twelve Months Ended December 31, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 1,001.1 $ 356.8 $ 771.5 $ (188.4 ) $ 1,941.0 Cost of sales 430.5 146.9 279.3 (188.4 ) 668.3 Gross profit 570.6 209.9 492.2 — 1,272.7 Selling, general and administrative expenses 466.6 133.3 399.8 — 999.7 Acquisition and integration costs 6.4 — — — 6.4 Restructuring charges and other, net 2.9 3.3 15.1 — 21.3 Operating income 94.7 73.3 77.3 — 245.3 Other expenses (income): Intercompany interest, net (8.0 ) (0.4 ) 8.4 — — Interest expense 83.6 0.1 0.7 — 84.4 Amortization of debt issuance costs 5.5 — — — 5.5 Loss on extinguishment of debt, net 2.0 — — — 2.0 Foreign currency (gains) losses, net (3.1 ) (0.1 ) 28.2 — 25.0 Miscellaneous, net (48.0 ) (8.2 ) 57.4 — 1.2 Other expenses (income), net 32.0 (8.6 ) 94.7 — 118.1 Income (loss) from continuing operations before income taxes 62.7 81.9 (17.4 ) — 127.2 Provision for income taxes 85.8 (8.4 ) 3.8 — 81.2 (Loss) income from continuing operations (23.1 ) 90.3 (21.2 ) — 46.0 Income (loss) from discontinued operations, net of taxes 0.2 — 1.1 — 1.3 Equity in income of subsidiaries 70.2 1.5 — (71.7 ) — Net income (loss) $ 47.3 $ 91.8 $ (20.1 ) $ (71.7 ) $ 47.3 Other comprehensive (loss) income (93.4 ) 9.3 (15.8 ) 6.5 (93.4 ) Total comprehensive (loss) income $ (46.1 ) $ 101.1 $ (35.9 ) $ (65.2 ) $ (46.1 ) Condensed Consolidating Statements of Income and Comprehensive Income Twelve Months Ended December 31, 2013 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 972.8 $ 90.5 $ 626.6 $ (195.2 ) $ 1,494.7 Cost of sales 438.4 45.6 256.3 (195.2 ) 545.1 Gross profit 534.4 44.9 370.3 — 949.6 Selling, general and administrative expenses 418.1 37.8 267.7 — 723.6 Acquisition and integration costs 24.2 — 1.2 — 25.4 Restructuring charges and other, net — 0.4 3.1 — 3.5 Operating income 92.1 6.7 98.3 — 197.1 Other expenses (income): Intercompany interest, net (0.8 ) (0.6 ) 6.2 — 4.8 Interest expense 72.9 0.3 0.6 — 73.8 Amortization of debt issuance costs 3.5 — — — 3.5 Loss on extinguishment of debt, net 29.7 — — — 29.7 Foreign currency losses (gains), net 3.2 1.3 (0.8 ) — 3.7 Miscellaneous, net (2.4 ) (11.5 ) 14.9 — 1.0 Other expenses (income), net 106.1 (10.5 ) 20.9 — 116.5 (Loss) income from continuing operations before income taxes (14.0 ) 17.2 77.4 — 80.6 Provision for income taxes 39.9 0.3 8.4 — 48.6 (Loss) Income from continuing operations (53.9 ) 16.9 69.0 — 32.0 Income (loss) from discontinued operations, net of taxes 0.3 — (30.7 ) — (30.4 ) Equity in income of subsidiaries 55.2 24.6 — (79.8 ) — Net income (loss) $ 1.6 $ 41.5 $ 38.3 $ (79.8 ) $ 1.6 Other comprehensive income (loss) 58.4 16.7 10.2 (26.9 ) 58.4 Total comprehensive income (loss) $ 60.0 $ 58.2 $ 48.5 $ (106.7 ) $ 60.0 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash used in operating activities $ (27.2 ) $ (20.4 ) $ (9.6 ) $ — $ (57.2 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (13.2 ) (1.2 ) (4.2 ) — (18.6 ) Business acquisition — — (29.2 ) — (29.2 ) Proceeds from the sale of certain assets — 0.4 — — 0.4 Net cash used in investing activities (13.2 ) (0.8 ) (33.4 ) — (47.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net (decrease) increase in short-term borrowings and overdraft (11.2 ) — 2.8 — (8.4 ) Repayments under the Acquisition Term Loan (15.1 ) — — — (15.1 ) Prepayments under the 2011 Term Loan (11.5 ) — — — (11.5 ) Other financing activities (1.4 ) — (0.2 ) — (1.6 ) Net cash (used in) provided by financing activities (39.2 ) — 2.6 — (36.6 ) Effect of exchange rate changes on cash and cash equivalents — (0.4 ) 0.5 — 0.1 Net decrease in cash and cash equivalents (79.6 ) (21.6 ) (39.9 ) — (141.1 ) Cash and cash equivalents at beginning of period $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 Cash and cash equivalents at end of period $ 61.9 $ 71.4 $ 52.5 $ — $ 185.8 Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash (used in) provided by operating activities $ (1.7 ) $ (0.3 ) $ 4.5 $ — $ 2.5 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (10.6 ) (2.5 ) (4.1 ) — (17.2 ) Business acquisition, net of cash acquired — — (34.2 ) — (34.2 ) Proceeds from the sale of certain assets 0.4 1.5 0.1 — 2.0 Net cash used in investing activities (10.2 ) (1.0 ) (38.2 ) — (49.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase in short-term borrowings and overdraft 4.0 — 2.6 — 6.6 Repayments under the Acquisition Term Loan (15.9 ) — — — (15.9 ) Prepayments under the 2011 Term Loan (12.1 ) — — — (12.1 ) Other financing activities (1.9 ) — (0.2 ) — (2.1 ) Net cash (used in) provided by financing activities (25.9 ) — 2.4 — (23.5 ) Effect of exchange rate changes on cash and cash equivalents — — (5.9 ) — (5.9 ) Net decrease in cash and cash equivalents (37.8 ) (1.3 ) (37.2 ) — (76.3 ) Cash and cash equivalents at beginning of period $ 104.2 $ 88.1 $ 83.0 $ — $ 275.3 Cash and cash equivalents at end of period $ 66.4 $ 86.8 $ 45.8 $ — $ 199.0 | Condensed Consolidating Statements of Cash Flows Twelve Months Ended December 31, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 89.1 $ 7.9 $ 58.3 $ — $ 155.3 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (29.5 ) (5.5 ) (13.3 ) — (48.3 ) Business acquisitions, net of cash and cash required (8.1 ) — (33.6 ) — (41.7 ) Proceeds from the sale of certain assets 3.5 2.7 — — 6.2 Net cash used in investing activities (34.1 ) (2.8 ) (46.9 ) — (83.8 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase in short-term borrowings and overdraft 17.3 — 5.7 — 23.0 Repayments under the Acquisition Term Loan (19.3 ) — — — (19.3 ) Prepayments under the 2011 Term Loan (12.1 ) — — — (12.1 ) Other financing activities (3.6 ) — (0.1 ) — (3.7 ) Net cash (used in) provided by financing activities (17.7 ) — 5.6 — (12.1 ) Effect of exchange rate changes on cash and cash equivalents — (0.2 ) (7.6 ) — (7.8 ) Net increase in cash and cash equivalents 37.3 4.9 9.4 — 51.6 Cash and cash equivalents at beginning of period 104.2 88.1 83.0 — 275.3 Cash and cash equivalents at end of period $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 (a) In January 2015, a newly-formed U.S.-domiciled entity in the Professional segment became an additional guarantor under Products Corporation’s Amended Term Loan Facility, Amended Revolving Credit Facility and the indenture for Products Corporation’s 5¾% Senior Notes. In connection with the CBB Acquisition, in May 2015 the Company’s newly-formed U.S.-domiciled subsidiary, RML, LLC, also became an additional guarantor under such debt instruments. Condensed Consolidating Statements of Cash Flows Twelve Months Ended December 31, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 77.3 $ 78.0 $ 18.7 $ — $ 174.0 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (40.3 ) (2.4 ) (12.8 ) — (55.5 ) Proceeds from the sale of certain assets — — 3.4 — 3.4 Net cash used in investing activities (40.3 ) (2.4 ) (9.4 ) — (52.1 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net (decrease) increase in short-term borrowings and overdraft (4.2 ) (1.9 ) 1.4 — (4.7 ) Repayment of Non-Contributed Loan (58.4 ) — — — (58.4 ) Repayments under the Acquisition Term Loan (7.0 ) — — — (7.0 ) Payment of financing costs (1.8 ) — — — (1.8 ) Other financing activities (2.7 ) — (0.5 ) — (3.2 ) Net cash (used in) provided by financing activities (74.1 ) (1.9 ) 0.9 — (75.1 ) Effect of exchange rate changes on cash and cash equivalents — (0.1 ) (15.5 ) — (15.6 ) Net (decrease) increase in cash and cash equivalents (37.1 ) 73.6 (5.3 ) — 31.2 Cash and cash equivalents at beginning of period (a) 141.3 14.5 88.3 — 244.1 Cash and cash equivalents at end of period $ 104.2 $ 88.1 $ 83.0 $ — $ 275.3 (a) In January 2014, Colomer's U.S. subsidiaries became additional guarantors under Products Corporation's Amended Credit Agreements and 5¾% Senior Notes. Accordingly, for cash flow presentation purposes, the cash and cash equivalents at the beginning of the period associated with Colomer's U.S. subsidiaries have been reported under Guarantor Subsidiaries. Condensed Consolidating Statements of Cash Flows Twelve Months Ended December 31, 2013 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 76.9 $ 4.6 $ 41.8 $ — 123.3 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (21.1 ) (0.6 ) — (6.9 ) — (28.6 ) Business acquisition, net of cash and cash equivalents acquired (627.6 ) — — — (627.6 ) Insurance proceeds for property, plant and equipment — — 13.1 — 13.1 Proceeds from the sale of certain assets 0.3 — 3.4 — 3.7 Net cash (used in) provided by investing activities (648.4 ) (0.6 ) 9.6 — (639.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net (decrease) increase in short-term borrowings and overdraft (2.0 ) (3.2 ) (1.1 ) — (6.3 ) Borrowings under the Acquisition Term Loan 698.3 — — — 698.3 Proceeds from the issuance of the 5¾% Senior Notes 500.0 — — — 500.0 Repayment of the 9¾% Senior Secured Notes (330.0 ) — — — (330.0 ) Repayment under the 2011 Term Loan Facility (113.0 ) — — — (113.0 ) Repayment of the Contributed Loan (48.6 ) — — — (48.6 ) Payment of financing costs (48.8 ) — — — (48.8 ) Other financing activities (2.2 ) — (0.4 ) — (2.6 ) Net cash provided by (used in) financing activities 653.7 (3.2 ) — (1.5 ) — — — 649.0 Effect of exchange rate changes on cash and cash equivalents — — (5.1 ) — (5.1 ) Net increase in cash and cash equivalents 82.2 0.8 — 44.8 — — — 127.8 Cash and cash equivalents at beginning of period 59.1 — 57.2 — 116.3 Cash and cash equivalents at end of period 141.3 0.8 — 102.0 — — — 244.1 |
DESCRIPTION OF BUSINESS AND S77
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Q2 (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Impact of Adoption of New Accounting Pronouncements | The adoption of ASU No. 2015-17 resulted in no adjustment to the Company’s results of operations and stockholder's deficiency and had the following impact on the previously reported Consolidated Balance Sheets for the fiscal year ended December 31, 2015 and the Consolidated Statements of Cash Flows for the fiscal period ended June 30, 2015: Consolidated Balance Sheets Total as reported at 12/31/2015 Adjustment Total as adjusted at 12/31/2015 Deferred income taxes - current 58.0 (58.0 ) — Deferred income taxes - noncurrent 38.5 11.3 49.8 Other long-term liabilities 117.5 (46.7 ) 70.8 Consolidated Statements of Cash Flows Total as reported at 6/30/2015 Adjustment Total as adjusted at 6/30/2015 Increase in prepaid expense and other current assets (25.2 ) 0.1 (25.1 ) Decrease in accrued expenses and other current liabilities (25.4 ) (0.1 ) (25.5 ) The adoption of ASU No. 2015-03 resulted in no adjustment to the Company’s results of operations, cash flows and stockholder's deficiency and had the following impact on the previously reported Consolidated Balance Sheets for the fiscal year ended December 31, 2015: Consolidated Balance Sheets Total as reported at 12/31/2015 Adjustment Total as adjusted at 12/31/2015 Long-Term Debt 1,803.7 (20.0 ) 1,783.7 Other Assets 104.1 (20.0 ) 84.1 |
BUSINESS COMBINATIONS - Q2 (Tab
BUSINESS COMBINATIONS - Q2 (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Business Combinations [Abstract] | ||
Allocation of Consideration | The table below summarizes the allocation of the total consideration of $29.1 million paid on the Cutex International Acquisition Date: Fair Value at May 31, 2016 Inventory $ 0.8 Purchased Intangible Assets (a) 19.7 Goodwill 8.6 Total consideration transferred $ 29.1 (a) Purchased intangible assets include customer networks fair valued at $14.0 million , intellectual property fair valued at $0.9 million , which are amortized over useful lives of 15 and 10 years, respectively, and indefinite lived trade names fair valued at $4.8 million . | The table below summarizes the allocation of the total consideration of $34.6 million paid on the CBB Acquisition Date, as well as adjustments for changes in working capital during the third quarter of 2015, with resulting goodwill, as follows: Amounts recognized at April 21, 2015 (Provisional) (a) Measurement Period Adjustments Amounts recognized at April 21, 2015 (Adjusted) Total Tangible Net Assets Acquired (b) $ 3.9 $ (1.6 ) $ 2.3 Purchased Intangible Assets (c) 11.9 0.2 12.1 Goodwill 18.8 0.7 19.5 Total consideration transferred $ 34.6 $ (0.7 ) $ 33.9 (a) As previously reported in Revlon, Inc.'s second quarter 2015 Form 10-Q. (b) Total net assets acquired in the CBB Acquisition are comprised primarily of inventory, trade receivables and accounts payable. (c) Purchased intangible assets include customer networks valued at $7.0 million , distribution rights valued at $3.5 million and trade names valued at $1.6 million , with weighted average remaining useful lives of 14 , 5 and 8 years, respectively. The Company recorded the total consideration of $664.5 million based on the respective estimated fair values of the net assets acquired on the Colomer Acquisition Date with resulting goodwill, as follows: Amounts Previously Recognized as of October 9, 2013 (Provisional) (a) Measurement Period Adjustments Amounts Recognized as of Colomer Acquisition Date (Adjusted) Cash and cash equivalents $ 36.9 $ — $ 36.9 Trade receivables 83.9 — 83.9 Inventories 75.1 — 75.1 Prepaid expenses and other 31.3 — 31.3 Property, plant and equipment 96.7 — 96.7 Intangible assets (b) 292.7 5.4 298.1 Goodwill (b)(c) 255.7 (2.4 ) 253.3 Deferred tax asset - noncurrent 53.1 — 53.1 Other assets (c) 1.9 3.9 5.8 Total assets acquired 927.3 6.9 934.2 Accounts payable 48.0 — 48.0 Accrued expenses and other 65.6 — 65.6 Long-term debt 0.9 — 0.9 Long-term pension and other benefit plan liabilities 4.5 — 4.5 Deferred tax liability (b) 123.3 2.1 125.4 Other long-term liabilities (c) 20.5 4.8 25.3 Total liabilities assumed 262.8 6.9 269.7 Total consideration $ 664.5 $ — $ 664.5 (a) As previously reported in Revlon, Inc.'s 2013 and 2014 Annual Reports on Form 10-K. (b) The Measurement Period Adjustments to intangible assets, deferred tax liability and goodwill in the first quarter of 2014 related to a change in assumptions used to calculate the fair value of an acquired customer relationship intangible asset, which increased the intangible asset by $5.4 million and extended the life of the asset from 10 to 20 years, increased deferred tax liabilities by $2.1 million and resulted in a net decrease to goodwill of $3.3 million . (c) The Company recorded a $3.9 million income tax adjustment to the beginning tax balance within other assets and a $4.8 million adjustment to other long-term liabilities, resulting in a net increase to goodwill of $0.9 million . |
RESTRUCTURING CHARGES - Q2 (Tab
RESTRUCTURING CHARGES - Q2 (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Restructuring Charges [Abstract] | ||
Schedule of Restructuring Activities | A summary of the restructuring and related charges incurred through June 30, 2016 in connection with the 2015 Efficiency Program is presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Charges incurred through December 31, 2015 $ 9.4 $ 0.1 $ 9.5 Charges incurred in the six months ended June 30, 2016 $ 0.6 $ 0.6 $ 1.2 Cumulative charges incurred through June 30, 2016 $ 10.0 $ 0.7 $ 10.7 Total expected charges $ 10.0 $ 1.7 $ 11.7 | A summary of the restructuring and related charges incurred through December 31, 2015 in connection with the 2015 Efficiency Program is presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Charges incurred through December 31, 2015 $ 9.4 $ 0.1 $ 9.5 Total expected charges $ 9.5 $ 0.6 $ 10.1 A summary of the restructuring and related charges for the Integration Program incurred through December 31, 2015 are as follows: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Inventory Write-offs and Other Manufacturing-Related Costs (a) Other Charges (b) Total Restructuring and Related Charges Charges incurred through December 31, 2014 $ 17.3 $ 1.6 $ 18.9 $ 0.6 $ 0.6 $ 20.1 Charges incurred through December 31, 2015 $ (3.4 ) $ 0.6 $ (2.8 ) $ 0.7 $ 0.3 $ (1.8 ) Total charges $ 13.9 $ 2.2 $ 16.1 $ 1.3 $ 0.9 $ 18.3 (a) Inventory write-offs and other manufacturing-related costs are recorded within cost of sales within the Company’s Consolidated Statements of Income and Comprehensive Income (Loss). (b) Other charges are recorded within SG&A expenses within the Company’s Consolidated Statements of Income and Comprehensive Income (Loss). A summary of the restructuring and related charges incurred through 2015 in connection with the December 2013 Program are presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Total Restructuring Charges Allowances and Returns Inventory Write-offs Other Charges Total Restructuring and Related Charges Charges incurred through December 31, 2014 $ 8.6 $ 0.3 $ 8.9 $ 6.5 $ 3.1 $ 0.4 $ 18.9 Charges incurred through December 31, 2015 $ — $ — $ — $ — $ — $ — $ — Total expected charges $ 8.6 $ 0.3 $ 8.9 $ 6.5 $ 3.1 $ 0.4 $ 18.9 |
Schedule of Restructuring Reserve by Type of Cost | The related liability balance and activity for each of the Company's restructuring programs are presented in the following table: Utilized, Net Balance Beginning of Year (Income) Expense, Net Foreign Currency Translation Cash Non-cash Balance End of Period 2015 Efficiency Program: Employee severance and other personnel benefits $ 6.6 $ 0.6 $ — $ (1.2 ) $ — $ 6.0 Other 0.1 0.6 — (0.4 ) (0.1 ) 0.2 Integration Program: (a) Employee severance and other personnel benefits 0.8 — — (0.8 ) — — Other 0.1 — — — — 0.1 December 2013 Program: (b) Employee severance and other personnel benefits 1.2 — — — — 1.2 Other — — — — — — Other immaterial actions: Employee severance and other personnel benefits 2.3 0.3 — (1.0 ) — 1.6 Other 0.7 0.3 — (0.3 ) — 0.7 Total restructuring reserve $ 11.8 $ 1.8 $ — $ (3.7 ) $ (0.1 ) $ 9.8 ( a) Following Products Corporation's October 2013 acquisition of The Colomer Group Participations, S.L. ("Colomer" and the "Colomer Acquisition"), the Company implemented actions to integrate Colomer's operations into the Company's business which reduced costs across the Company's businesses and generated synergies and operating efficiencies within the Company's global supply chain and consolidated offices and back office support (all such actions, together, the "Integration Program"). The Integration Program was substantially completed as of December 31, 2015. (b) In December 2013, the Company announced restructuring actions that primarily included exiting its direct manufacturing, warehousing and sales business operations in mainland China (the "December 2013 Program"). The December 2013 Program resulted in the elimination of approximately 1,100 positions in 2014, primarily in China. | The related liability balance and activity for each of the Company's restructuring programs, as summarized above, are presented in the following table: Utilized, Net Balance Beginning of Year (Income) Expense, Net Foreign Currency Translation Cash Non-cash Balance End of Year 2015 2015 Efficiency Program: Employee severance and other personnel benefits $ — $ 9.4 $ — $ (2.8 ) $ — $ 6.6 Other — 0.1 — — — 0.1 Integration Program: Employee severance and other personnel benefits 9.6 (3.4 ) (0.2 ) (5.2 ) — 0.8 Other 0.1 0.6 — (0.6 ) — 0.1 December 2013 Program: Employee severance and other personnel benefits 1.2 — — — — 1.2 Other — — — — — — Other immaterial actions: Employee severance and other personnel benefits 3.1 1.7 (0.1 ) (2.4 ) — 2.3 Other — 2.1 — (1.4 ) — 0.7 Total restructuring reserve $ 14.0 $ 10.5 $ (0.3 ) $ (12.4 ) $ — $ 11.8 2014 Integration Program: Employee severance and other personnel benefits $ — $ 17.3 $ (0.1 ) $ (7.6 ) $ — $ 9.6 Other — 1.6 — (1.2 ) (0.3 ) 0.1 December 2013 Program: Employee severance and other personnel benefits 9.0 (0.5 ) (0.2 ) (7.3 ) 0.2 1.2 Other 0.5 (0.2 ) — (0.3 ) — — Other immaterial actions: Employee severance and other personnel benefits (a) 2.7 5.0 (0.2 ) (4.5 ) 0.1 3.1 Other (a) 1.5 0.2 — (1.7 ) — — Total restructuring reserve $ 13.7 $ 23.4 $ (0.5 ) $ (22.6 ) $ — $ 14.0 Gain on sale of property, plant and equipment for 2014 other immaterial actions (2.6 ) Portion of restructuring benefits recorded within (loss) income from discontinued operations (b) 0.5 Total restructuring charges and other, net, from continuing operations $ 21.3 (a) Includes reserve of $4.2 million remaining at the end of 2013 related to the Company's exit of its then-owned manufacturing facility in France and its then-leased manufacturing facility in Maryland; rightsizing its organizations in France and Italy; and realigning its operations in Latin America and Canada, or the "September 2012 Program." (b) Refer to Note 4, "Discontinued Operations" for additional information regarding the Company's exit of its direct manufacturing, warehousing and sales business operations in mainland China. |
DISCONTINUED OPERATIONS - Q2 (T
DISCONTINUED OPERATIONS - Q2 (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Discontinued Operations [Abstract] | ||
Schedule of Discontinued Operations | The results of the China discontinued operations are included within Loss from discontinued operations, net of taxes, and relate entirely to the Consumer segment. The summary comparative financial results of discontinued operations are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net sales $ — $ — $ — $ — Loss from discontinued operations, before taxes (2.5 ) — (2.1 ) (0.1 ) Provision for income taxes — — — — Loss from discontinued operations, net of taxes (2.5 ) — (2.1 ) (0.1 ) Assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consist of the following: June 30, 2016 December 31, 2015 Cash and cash equivalents $ 1.8 $ 2.0 Trade receivables, net 0.2 0.2 Total current assets 2.0 2.2 Total assets $ 2.0 $ 2.2 Accounts payable $ 0.6 $ 0.7 Accrued expenses and other 3.5 3.6 Total current liabilities 4.1 4.3 Total liabilities $ 4.1 $ 4.3 | The results of the China discontinued operations are included within (loss) income from discontinued operations, net of taxes, and relate entirely to the Consumer segment. The summary comparative financial results of discontinued operations are as follows: Year Ended December 31, 2015 2014 2013 Net sales $ — $ 2.6 $ 13.8 (Loss) income from discontinued operations, before taxes (3.2 ) 1.5 (30.8 ) Provision for income taxes — 0.2 (0.4 ) (Loss) income from discontinued operations, net of taxes (3.2 ) 1.3 (30.4 ) (a) Net sales during 2014 include favorable adjustments to sales returns related to the Company's exit of its direct manufacturing, warehousing and sales business operations in mainland China. (b) Included in loss from discontinued operations, before taxes for 2013 are $20.0 million of restructuring and related charges related to the December 2013 Program. Refer to Note 3, "Restructuring Charges - December 2013 Program," for related disclosures. Assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consist of the following: December 31, 2015 December 31, 2014 Cash and cash equivalents $ 2.0 $ 2.4 Trade receivables, net 0.2 0.2 Total current assets 2.2 2.6 Total assets $ 2.2 $ 2.6 Accounts payable $ 0.7 $ 0.2 Accrued expenses and other 3.6 3.9 Total current liabilities 4.3 4.1 Total liabilities $ 4.3 $ 4.1 |
INVENTORIES - Q2 (Tables)
INVENTORIES - Q2 (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Inventories [Abstract] | ||
Components of Inventories | June 30, 2016 December 31, 2015 Raw materials and supplies $ 61.9 $ 58.2 Work-in-process 12.0 8.3 Finished goods 135.7 117.3 $ 209.6 $ 183.8 | December 31, 2015 2014 Raw materials and supplies $ 58.2 $ 47.2 Work-in-process 8.3 9.0 Finished goods 117.3 100.4 $ 183.8 $ 156.6 |
GOODWILL AND INTANGIBLE ASSET82
GOODWILL AND INTANGIBLE ASSETS, NET - Q2 (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets, Net [Abstract] | ||
Changes in Goodwill by Segment | The following table presents the changes in goodwill by segment during the six months ended June 30, 2016: Consumer Professional Other Total Balance at January 1, 2016 $ 210.1 $ 240.7 $ 18.9 $ 469.7 Goodwill acquired (a) 8.6 — — 8.6 Foreign currency translation adjustment — 0.2 (1.8 ) (1.6 ) Balance at June 30, 2016 $ 218.7 $ 240.9 $ 17.1 $ 476.7 (a) On May 31, 2016, the Company completed the Cutex International Acquisition. See Note 2, "Business Combinations," to the Unaudited Consolidated Financial Statements in this Form 10-Q for details related to the Cutex International Acquisition. | The following table presents the changes in goodwill by segment during each of 2015 and 2014: Consumer Professional Other Total Balance at January 1, 2014 $ 217.9 $ 254.4 $ — $ 472.3 Foreign currency translation adjustment — (8.2 ) — (8.2 ) Balance at December 31, 2014 $ 217.9 $ 246.2 $ — $ 464.1 Goodwill acquired 1.9 — 19.5 21.4 Foreign currency translation adjustment — (5.5 ) (0.6 ) (6.1 ) Goodwill impairment charge $ (9.7 ) $ — $ — $ (9.7 ) Balance at December 31, 2015 $ 210.1 $ 240.7 $ 18.9 $ 469.7 |
Summary of Finite-Lived Intangible Assets | The following tables present details of the Company's total intangible assets: June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Trademarks and Licenses $ 147.2 $ (42.3 ) $ 104.9 Customer relationships 132.5 (24.4 ) 108.1 Patents and Internally-Developed IP 17.9 (5.2 ) 12.7 Distribution rights 3.1 (0.9 ) 2.2 Total finite-lived intangible assets $ 300.7 $ (72.8 ) $ 227.9 Indefinite-lived intangible assets: Trade Names $ 101.0 $ — $ 101.0 Total indefinite-lived intangible assets $ 101.0 $ — $ 101.0 Total intangible assets $ 401.7 $ (72.8 ) $ 328.9 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Trademarks and Licenses $ 145.0 $ (36.0 ) $ 109.0 Customer relationships 118.8 (20.5 ) 98.3 Patents and Internally-Developed IP 16.8 (4.0 ) 12.8 Distribution rights 3.5 (0.6 ) 2.9 Total finite-lived intangible assets $ 284.1 $ (61.1 ) $ 223.0 Indefinite-lived intangible assets: Trade Names $ 95.0 $ — $ 95.0 Total indefinite-lived intangible assets $ 95.0 $ — $ 95.0 Total intangible assets $ 379.1 $ (61.1 ) $ 318.0 | The following tables present details of the Company's total intangible assets: December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and Licenses $ 145.0 $ (36.0 ) $ 109.0 15 Customer relationships 118.8 (20.5 ) 98.3 16 Patents and Internally-Developed IP 16.8 (4.0 ) 12.8 10 Distribution rights 3.5 (0.6 ) 2.9 5 Total finite-lived intangible assets $ 284.1 $ (61.1 ) $ 223.0 Indefinite-lived intangible assets: Trade Names $ 95.0 $ — $ 95.0 Total indefinite-lived intangible assets $ 95.0 $ — $ 95.0 Total intangible assets $ 379.1 $ (61.1 ) $ 318.0 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and Licenses $ 140.5 $ (23.5 ) $ 117.0 14 Customer relationships 109.1 (13.4 ) 95.7 17 Patents and Internally-Developed IP 16.2 (2.4 ) 13.8 10 Total finite-lived intangible assets $ 265.8 $ (39.3 ) $ 226.5 Indefinite-lived intangible assets: Trade Names $ 101.3 $ — $ 101.3 Total indefinite-lived intangible assets $ 101.3 $ — $ 101.3 Total intangible assets $ 367.1 $ (39.3 ) $ 327.8 |
Summary of Indefinite-Lived Intangible Assets | The following tables present details of the Company's total intangible assets: June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Trademarks and Licenses $ 147.2 $ (42.3 ) $ 104.9 Customer relationships 132.5 (24.4 ) 108.1 Patents and Internally-Developed IP 17.9 (5.2 ) 12.7 Distribution rights 3.1 (0.9 ) 2.2 Total finite-lived intangible assets $ 300.7 $ (72.8 ) $ 227.9 Indefinite-lived intangible assets: Trade Names $ 101.0 $ — $ 101.0 Total indefinite-lived intangible assets $ 101.0 $ — $ 101.0 Total intangible assets $ 401.7 $ (72.8 ) $ 328.9 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived intangible assets: Trademarks and Licenses $ 145.0 $ (36.0 ) $ 109.0 Customer relationships 118.8 (20.5 ) 98.3 Patents and Internally-Developed IP 16.8 (4.0 ) 12.8 Distribution rights 3.5 (0.6 ) 2.9 Total finite-lived intangible assets $ 284.1 $ (61.1 ) $ 223.0 Indefinite-lived intangible assets: Trade Names $ 95.0 $ — $ 95.0 Total indefinite-lived intangible assets $ 95.0 $ — $ 95.0 Total intangible assets $ 379.1 $ (61.1 ) $ 318.0 | |
Estimated Future Amortization Expense | The following table reflects the estimated future amortization expense, a portion of which is subject to exchange rate fluctuations, for the Company's finite-lived intangible assets as of June 30, 2016: Estimated Amortization Expense 2016 $ 11.5 2017 23.6 2018 22.7 2019 20.1 2020 19.5 Thereafter 130.5 Total $ 227.9 | The following table reflects the estimated future amortization expense, a portion of which is subject to exchange rate fluctuations, for the Company's finite-lived intangible assets as of December 31, 2015: Estimated Amortization Expense 2016 $ 22.7 2017 22.3 2018 21.4 2019 18.9 2020 18.2 Thereafter 119.5 Total $ 223.0 |
ACCRUED EXPENSES AND OTHER - 83
ACCRUED EXPENSES AND OTHER - Q2 (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Accrued Expenses and Other [Abstract] | ||
Components of Accrued Expenses and Other | June 30, 2016 December 31, 2015 Sales returns and allowances $ 50.8 $ 61.1 Compensation and related benefits 49.4 75.6 Advertising and promotional costs 37.0 38.4 Taxes 23.4 20.8 Interest 12.3 12.4 Restructuring reserve 9.8 11.8 Other 50.5 52.3 $ 233.2 $ 272.4 | December 31, 2015 2014 Sales returns and allowances $ 61.1 $ 70.6 Compensation and related benefits 75.6 66.8 Advertising and promotional costs 38.4 44.9 Taxes 20.8 23.4 Interest 12.4 11.0 Restructuring reserve 11.8 13.7 Other 52.3 42.9 $ 272.4 $ 273.3 |
LONG-TERM DEBT - Q2 (Tables)
LONG-TERM DEBT - Q2 (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Long-Term Debt [Abstract] | ||
Components of Long-Term Debt | June 30, 2016 December 31, 2015 Amended Term Loan Facility: Acquisition Term Loan due 2019, net of discounts and debt issuance costs (a) $ 648.5 $ 662.1 Amended Term Loan Facility: 2011 Term Loan due 2017, net of discounts and debt issuance costs (a) 648.2 658.5 Amended Revolving Credit Facility (b) — — 5¾% Senior Notes due 2021, net of debt issuance costs (c) 493.1 492.5 Spanish Government Loan due 2025 (d) 0.6 0.6 1,790.4 1,813.7 Less current portion (*) (6.8 ) (30.0 ) $ 1,783.6 $ 1,783.7 (*) At December 31, 2015, the Company classified $30.0 million as the current portion of long-term debt, which was comprised of a $23.2 million required “excess cash flow” prepayment (as defined under the Amended Term Loan Agreement, as hereinafter defined) that was paid on February 29, 2016, and the Company’s regularly scheduled $1.7 million quarterly principal amortization payments (after giving effect to such prepayment) due in 2016. (a) See Note 17, "Subsequent Events," to the Unaudited Consolidated Financial Statements in this Form 10-Q for debt-related matters that occurred subsequent to the second quarter of 2016 and see Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding Products Corporation's Amended Term Loan Agreement, which facility is comprised of: (i) the term loan due November 19, 2017 in the original aggregate amount of $675.0 million (the "2011 Term Loan"); and (ii) the term loan due October 8, 2019 in the original aggregate amount of $700.0 million (the "Acquisition Term Loan") which, respectively, had $651.4 million and $658.6 million in aggregate principal balance outstanding at June 30, 2016 (together, the "Amended Term Loan Agreement"). (b) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding Products Corporation's existing $175.0 million asset-based, multi-currency revolving credit facility (the "Amended Revolving Credit Facility") which matures on the earlier of August 14, 2018 and the date that is 90 days prior to the earliest maturity date of any term loans then outstanding under the Amended Term Loan Agreement. (c) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding Products Corporation's 5¾% Senior Notes that mature on February 15, 2021. The aggregate principal amount outstanding at June 30, 2016 was $500 million . (d) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2015 Form 10-K for certain details regarding the euro-denominated loan payable to the Spanish government that matures on June 30, 2025. | December 31, 2015 December 31, 2014 Amended Term Loan Facility: Acquisition Term Loan due 2019, net of discounts (see (a) below) $ 672.5 $ 691.6 Amended Term Loan Facility: 2011 Term Loan due 2017, net of discounts (see (a) below) 660.6 671.6 Amended Revolving Credit Facility (see (a) below) — — 5¾% Senior Notes due 2021 (see (b) below) 500.0 500.0 Spanish Government Loan due 2025 (see (c) below) 0.6 0.7 1,833.7 1,863.9 Less current portion (*) (30.0 ) (31.5 ) $ 1,803.7 $ 1,832.4 (*) At December 31, 2015 and 2014, the Company classified $30.0 million and $31.5 million , respectively, of long-term debt as a current liability, which was primarily comprised of $23.2 million and $24.6 million of required “excess cash flow” prepayments (as defined under the Amended Term Loan Agreement, as hereinafter defined). The excess cash flow prepayment for 2015 will be paid on or prior to April 9, 2016. The 2014 excess cash flow prepayment was paid on March 12, 2015. The current portion of long-term debt also includes the Company’s annual principal amortization payments (payable in equal quarterly installments and after giving effect to such prepayments) of $6.8 million and $6.9 million due in 2016 and 2015, respectively. Under the Amended Revolving Credit Facility, borrowings (other than loans in foreign currencies) bear interest, if made as Eurodollar Loans, at the Eurodollar Rate plus the applicable margin set forth in the grid below and, if made as Alternate Base Rate Loans, at the Alternate Base Rate plus the applicable margin set forth in the grid below. Excess Availability Alternate Base Rate Loans Eurodollar Loans, Eurocurrency Loan or Local Rate Loans Greater than or equal to $92,000,000 0.50% 1.50% Less than $92,000,000 but greater than or equal to $46,000,000 0.75% 1.75% Less than $46,000,000 1.00% 2.00% Term loans under the Amended Term Loan Facility bear interest at the following interest rates: Eurodollar Loans Alternate Base Rate Loans 2011 Term Loans Eurodollar Rate plus 2.50% per annum (with the Eurodollar Rate not to be less than 0.75%) Alternate Base Rate plus 1.50% (with the Alternate Base Rate not to be less than 1.75%) Acquisition Term Loans Eurodollar Rate plus 3.00% per annum (with the Eurodollar Rate not to be less than 1.00%) Alternate Base Rate plus 2.00% (with the Alternate Base Rate not to be less than 2.00%) |
FAIR VALUE MEASUREMENTS - Q2 (T
FAIR VALUE MEASUREMENTS - Q2 (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | ||
Schedule of Fair Values of Financial Assets and Liabilities | As of June 30, 2016 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 1.1 $ — $ 1.1 $ — Total assets at fair value $ 1.1 $ — $ 1.1 $ — Liabilities: Derivatives: FX Contracts (a) $ 1.8 $ — $ 1.8 $ — 2013 Interest Rate Swap (b) 7.6 — 7.6 — Total liabilities at fair value $ 9.4 $ — $ 9.4 $ — As of December 31, 2015 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 2.0 $ — $ 2.0 $ — Total assets at fair value $ 2.0 $ — $ 2.0 $ — Liabilities: Derivatives: FX Contracts (a) $ 0.6 $ — $ 0.6 $ — 2013 Interest Rate Swap (b) $ 6.5 $ — $ 6.5 $ — Total liabilities at fair value $ 7.1 $ — $ 7.1 $ — (a) The fair value of the Company’s foreign currency forward exchange contracts ("FX Contracts") was measured based on observable market transactions for similar transactions in actively quoted markets of spot and forward rates on the respective dates. See Note 10, “Financial Instruments," to the Unaudited Consolidated Financial Statements in this Form 10-Q. (b) The fair value of the Company's 2013 Interest Rate Swap (as hereinafter defined) was measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve on the respective dates. See Note 10, “Financial Instruments.” | As of December 31, 2015 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 2.0 $ — $ 2.0 $ — Total assets at fair value $ 2.0 $ — $ 2.0 $ — Liabilities: Derivatives: FX Contracts (a) $ 0.6 $ — $ 0.6 $ — 2013 Interest Rate Swap (b) 6.5 — 6.5 — Total liabilities at fair value $ 7.1 $ — $ 7.1 $ — As of December 31, 2014 , the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: Total Level 1 Level 2 Level 3 Assets: Derivatives: FX Contracts (a) $ 0.2 $ — $ 0.2 $ — Total assets at fair value $ 0.2 $ — $ 0.2 $ — Liabilities: Derivatives: 2013 Interest Rate Swap (b) $ 3.5 $ — $ 3.5 $ — Total liabilities at fair value $ 3.5 $ — $ 3.5 $ — (a) The fair value of the Company’s foreign currency forward exchange contracts ("FX Contracts") was measured based on observable market transactions for similar transactions in actively quoted markets of spot and forward rates on the respective dates. See Note 13, “Financial Instruments.” (b) The fair value of the Company's 2013 Interest Rate Swap was measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve on the respective dates. See Note 13, “Financial Instruments.” |
Financial Liabilities Not Measured At Fair Value But For Which Fair Value Disclosure Is Required | As of June 30, 2016 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,793.2 $ — $ 1,793.2 $ 1,790.4 As of December 31, 2015 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,818.0 $ — $ 1,818.0 $ 1,813.7 | As of December 31, 2015 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,818.0 $ — $ 1,818.0 $ 1,833.7 As of December 31, 2014 , the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion $ — $ 1,844.0 $ — $ 1,844.0 $ 1,863.9 |
FINANCIAL INSTRUMENTS - Q2 (Tab
FINANCIAL INSTRUMENTS - Q2 (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Financial Instruments [Abstract] | ||
Fair Value of Derivative Financial Instruments in Consolidated Balance Sheet | (a) Fair Values of Derivative Financial Instruments in the Consolidated Balance Sheets: Fair Values of Derivative Instruments Assets Liabilities Balance Sheet June 30, December 31, Balance Sheet June 30, December 31, Classification Fair Value Fair Value Classification Fair Value Fair Value Derivatives designated as hedging instruments: 2013 Interest Rate Swap (i) Prepaid expenses and other $ — $ — Accrued expenses and other $ 4.2 $ 4.0 Other assets — — Other long-term liabilities 3.4 2.5 Derivatives not designated as hedging instruments: FX Contracts (ii) Prepaid expenses and other $ 1.1 $ 2.0 Accrued Expenses $ 1.8 $ 0.6 (i) The fair values of the 2013 Interest Rate Swap at June 30, 2016 and December 31, 2015 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at June 30, 2016 and December 31, 2015 , respectively. (ii) The fair values of the FX Contracts at June 30, 2016 and December 31, 2015 were measured based on observable market transactions of spot and forward rates at June 30, 2016 and December 31, 2015 , respectively. | (a) Fair Values of Derivative Financial Instruments in the Consolidated Balance Sheets: Fair Values of Derivative Instruments Assets Liabilities Balance Sheet December 31, December 31, Balance Sheet December 31, December 31, Classification Fair Value Fair Value Classification Fair Value Fair Value Derivatives designated as hedging instruments: 2013 Interest Rate Swap (i) Prepaid expenses and other $ — $ — Accrued expenses and other $ 4.0 $ 2.1 Other assets — — Other long-term liabilities 2.5 1.4 Derivatives not designated as hedging instruments: FX Contracts (ii) Prepaid expenses and other $ 2.0 $ 0.2 Accrued Expenses $ 0.6 $ — (i) The fair values of the 2013 Interest Rate Swap at December 31, 2015 and December 31, 2014 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at December 31, 2015 and December 31, 2014 , respectively. (ii) The fair values of the FX Contracts at December 31, 2015 and December 31, 2014 were measured based on observable market transactions of spot and forward rates at December 31, 2015 and December 31, 2014 , respectively. |
Effects of Derivative Financial Instruments on Income and Other Comprehensive Income (Loss) | Effects of Derivative Financial Instruments on the Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2016 and 2015 : Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Derivatives designated as hedging instruments: 2013 Interest Rate Swap, net of tax (a) $ 0.2 $ (0.1 ) $ (0.7 ) $ (2.0 ) (a) Net of tax expense (benefit) of $0.1 million and nil for the three months ended June 30, 2016 and 2015, respectively, and $(0.4) million and $(1.2) million for the six months ended June 30, 2016 and 2015, respectively. Income Statement Classification Amount of Gain (Loss) Recognized in Net Income Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Derivatives designated as hedging instruments: 2013 Interest Rate Swap Interest Expense $ (1.1 ) $ (0.5 ) $ (2.2 ) $ (0.5 ) Derivatives not designated as hedging instruments: FX Contracts Foreign currency gain (loss), net $ 0.3 $ 0.4 $ (0.5 ) $ 0.9 | Effects of Derivative Financial Instruments on the Consolidated Statements of Income and Comprehensive Income (Loss) for each of 2015, 2014 and 2013: Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Year Ended December 31, 2015 2014 2013 Derivatives designated as hedging instruments: 2013 Interest Rate Swap, net of tax (a) $ (1.6 ) $ (3.7 ) $ 1.5 (a) Net of tax (benefit) expense of $(1.0) million , $(2.3) million and $1.0 million for each of 2015, 2014 and 2013, respectively. Income Statement Classification Amount of Gain (Loss) Recognized in Net Income Year Ended December 31, 2015 2014 2013 Derivatives designated as hedging instruments: 2013 Interest Rate Swap Interest Expense $ (2.6 ) $ — $ — Derivatives not designated as hedging instruments: FX Contracts Foreign currency gain, net $ 3.8 $ 0.5 $ 2.2 |
PENSION AND POST-RETIREMENT B87
PENSION AND POST-RETIREMENT BENEFITS - Q2 (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Pension and Post-Retirement Benefits [Abstract] | ||
Components of Net Periodic Benefit (Income) Costs | The components of net periodic benefit (income) costs for the Company’s pension and the other post-retirement benefit plans for the second quarter of 2016 and 2015 are as follows: Other Three Months Ended June 30, 2016 2015 2016 2015 Net periodic benefit (income) costs: Service cost $ 0.2 $ 0.2 $ — $ — Interest cost 5.1 7.1 0.1 0.1 Expected return on plan assets (7.8 ) (10.2 ) — — Amortization of actuarial loss 2.3 2.1 0.1 0.1 (0.2 ) (0.8 ) 0.2 0.2 Portion allocated to Revlon Holdings (0.1 ) (0.1 ) — — $ (0.3 ) $ (0.9 ) $ 0.2 $ 0.2 The components of net periodic benefit (income) costs for the Company's pension and the other post-retirement benefit plans for the first six months of 2016 and 2015 are as follows: Other Six Months Ended June 30, 2016 2015 2016 2015 Net periodic benefit (income) costs: Service cost $ 0.3 $ 0.4 $ — $ — Interest cost 10.3 14.3 0.2 0.2 Expected return on plan assets (15.6 ) (20.3 ) — — Amortization of actuarial loss 4.4 4.1 0.1 0.1 (0.6 ) (1.5 ) 0.3 0.3 Portion allocated to Revlon Holdings (0.1 ) (0.1 ) — — $ (0.7 ) $ (1.6 ) $ 0.3 $ 0.3 | The components of net periodic benefit (income) costs for the Company’s pension and the other post-retirement benefit plans are as follows: Other Year Ended December 31, 2015 2014 2013 2015 2014 2013 Net periodic benefit (income) costs: Service cost $ 0.7 $ 0.8 $ 0.9 $ — $ — $ — Interest cost 28.6 30.1 27.6 0.5 0.5 0.6 Expected return on plan assets (40.3 ) (41.3 ) (38.3 ) — — — Amortization of actuarial loss 8.4 4.5 8.6 0.1 0.1 0.4 Lump sum settlement charge 20.7 — — — — — Other pension settlements charge 0.3 — — — — — 18.4 (5.9 ) (1.2 ) 0.6 0.6 1.0 Portion allocated to Revlon Holdings (0.1 ) (0.1 ) (0.1 ) (0.1 ) — (0.1 ) $ 18.3 $ (6.0 ) $ (1.3 ) $ 0.5 $ 0.6 $ 0.9 |
Classification of Net Periodic Benefit (Income) Costs | Net periodic benefit costs (income) are reflected in the Company's Consolidated Financial Statements as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net periodic benefit (income) costs: Cost of sales $ (0.5 ) $ (1.0 ) $ (1.3 ) $ (2.0 ) Selling, general and administrative expense 0.4 0.3 0.9 0.7 $ (0.1 ) $ (0.7 ) $ (0.4 ) $ (1.3 ) | Net periodic benefit costs (income) are reflected in the Company's Consolidated Financial Statements as follows: Year Ended December 31, 2015 2014 Net periodic benefit (income) costs: Cost of sales $ 6.1 $ (4.2 ) Selling, general and administrative expense 12.7 (0.7 ) Inventories — (0.5 ) $ 18.8 $ (5.4 ) |
ACCUMULATED OTHER COMPREHENSI88
ACCUMULATED OTHER COMPREHENSIVE LOSS - Q2 (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Loss [Abstract] | ||
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss as of June 30, 2016 are as follows: Foreign Currency Translation Actuarial (Loss) Gain on Post-retirement Benefits Deferred Gain (Loss) - Hedging Other Accumulated Other Comprehensive Loss Balance at January 1, 2016 $ (23.5 ) $ (217.7 ) $ (3.8 ) $ (0.3 ) $ (245.3 ) Currency translation adjustment, net of tax of $0.6 million 5.3 5.3 Amortization of pension related costs, net of tax of $0.7 million (a) 3.8 3.8 Revaluation of derivative financial instrument, net of amounts reclassified into earnings and tax benefit of $0.4 million (b) $ (0.7 ) (0.7 ) Other comprehensive income (loss) 5.3 3.8 (0.7 ) — 8.4 Balance at June 30, 2016 $ (18.2 ) $ (213.9 ) $ (4.5 ) $ (0.3 ) $ (236.9 ) (a) Amounts represent the change in accumulated other comprehensive loss as a result of the amortization of actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 11, “Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. (b) For the six months ended June 30, 2016 , the Company's 2013 Interest Rate Swap was deemed effective and therefore, the changes in fair value related to the 2013 Interest Rate Swap were recorded in other comprehensive income (loss). See Note 10, "Financial Instruments," for further discussion of the 2013 Interest Rate Swap. | The components of accumulated other comprehensive loss as of December 31, 2015 , 2014 and 2013 are as follows: Foreign Currency Translation Actuarial (Loss) Gain on Post-retirement Benefits Deferred Gain (Loss) - Hedging Other Accumulated Other Comprehensive Loss Balance at January 1, 2013 $ 23.3 $ (231.5 ) $ — $ — $ (208.2 ) Currency translation adjustment, net of tax of $3.3 million (4.1 ) — — — (4.1 ) Amortization of pension related costs, net of tax of $(1.2) million (a) — 7.7 — — 7.7 Pension re-measurement, net of tax of $(33.5) million — 53.3 — — 53.3 Revaluation of derivative financial instrument, net of tax of $(1.0) million (b) — — 1.5 — 1.5 Balance at December 31, 2013 $ 19.2 $ (170.5 ) $ 1.5 $ — $ (149.8 ) Currency translation adjustment, net of tax of $2.1 million (24.6 ) — — — (24.6 ) Amortization of pension related costs, net of tax of $(0.1) million (a) — 4.5 — — 4.5 Pension re-measurement, net of tax of $42.0 million — (69.6 ) — — (69.6 ) Revaluation of derivative financial instrument, net of tax of $2.3 million (b) — — (3.7 ) — (3.7 ) Other — 0.3 — (0.3 ) — Balance at December 31, 2014 $ (5.4 ) $ (235.3 ) $ (2.2 ) $ (0.3 ) $ (243.2 ) Currency translation adjustment, net of tax of $5.1 million $ (18.1 ) (18.1 ) Amortization of pension related costs, net of tax of $(1.3) million (a) $ 7.2 7.2 Pension re-measurement, net of tax of $3.3 million $ (6.9 ) (6.9 ) Settlement of certain pension liabilities, net of tax of $(3.7) million (b) $ 17.3 $ — 17.3 Revaluation of derivative financial instrument, net of amounts reclassified into earnings and tax benefit of $1.0 million (c) $ (1.6 ) (1.6 ) Other comprehensive loss (18.1 ) 17.6 (1.6 ) — (2.1 ) Balance at December 31, 2015 $ (23.5 ) $ (217.7 ) $ (3.8 ) $ (0.3 ) $ (245.3 ) (a) Amounts represent the change in Accumulated Other Comprehensive Loss as a result of the amortization of actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 14, “Savings Plan, Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. (b) Amount primarily consists of the pension lump sum settlement charge, net of taxes, recorded during the fourth quarter of 2015. See Note 14, “Savings Plan, Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. (c) For the 2015, 2014 and 2013, the Company's 2013 Interest Rate Swap was deemed effective and therefore, the changes in fair value related to the 2013 Interest Rate Swap were recorded in other comprehensive income (loss). See Note 13, "Financial Instruments," for further discussion of the 2013 Interest Rate Swap. |
Reclassification out of Accumulated Other Comprehensive Loss | As shown above, comprehensive loss includes changes in the fair value of the 2013 Interest Rate Swap, which qualifies for hedge accounting. A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of June 30, 2016 are as follows: 2013 Interest Rate Swap Beginning accumulated losses at March 31, 2016 (4.7 ) Reclassifications into earnings (net of $0.4 million tax expense) (a) 0.7 Change in fair value (net of $0.3 million tax benefit) (0.5 ) Ending accumulated losses at June 30, 2016 $ (4.5 ) 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2015 (3.8 ) Reclassifications into earnings (net of $0.8 million tax expense) (a) 1.3 Change in fair value (net of $1.2 million tax benefit) (2.0 ) Ending accumulated losses at June 30, 2016 $ (4.5 ) (a) Reclassified to interest expense. A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of June 30, 2015 are as follows: 2013 Interest Rate Swap Beginning accumulated losses at March 31, 2015 (4.1 ) Reclassifications into earnings (net of $0.2 million tax expense) (a) 0.3 Change in fair value (net of $0.2 million tax benefit) (0.4 ) Ending accumulated losses at June 30, 2015 $ (4.2 ) 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2014 (2.2 ) Reclassifications into earnings (net of $0.2 million tax expense) (a) 0.3 Change in fair value (net of $1.4 million tax benefit) (2.3 ) Ending accumulated losses at June 30, 2015 $ (4.2 ) (a) Reclassified to interest expense. | As shown above, comprehensive loss includes changes in the fair value of the 2013 Interest Rate Swap, which qualifies for hedge accounting. A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of December 31, 2015 are as follows: 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2014 (2.2 ) Reclassifications into earnings (net of $1.0 million tax expense) (a) 1.6 Change in fair value (net of $2.0 million tax benefit) (3.2 ) Ending accumulated losses at December 31, 2015 $ (3.8 ) (a) Reclassified to interest expense. |
SEGMENT DATA AND RELATED INFO89
SEGMENT DATA AND RELATED INFORMATION - Q2 (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Segment Data and Related Information [Abstract] | ||
Schedule of Segment Reporting Information, by Segment | The following table is a comparative summary of the Company’s net sales and segment profit by reportable segment for the three and six months ended June 30, 2016 and 2015 . Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Segment Net Sales: Consumer $ 359.5 $ 354.7 $ 679.5 $ 679.0 Professional 123.3 123.4 238.4 237.6 Other $ 6.1 $ 4.3 10.6 4.3 Total $ 488.9 $ 482.4 $ 928.5 $ 920.9 Segment Profit: Consumer $ 81.0 $ 83.8 $ 139.4 $ 146.0 Professional 24.1 24.3 49.7 53.5 Other $ 0.1 $ 0.2 (0.8 ) 0.2 Total $ 105.2 $ 108.3 $ 188.3 $ 199.7 Reconciliation: Segment Profit $ 105.2 $ 108.3 $ 188.3 $ 199.7 Less: Unallocated corporate expenses 16.2 15.8 30.4 30.5 Depreciation and amortization 26.3 25.2 52.2 50.8 Non-cash stock compensation expense 1.1 1.2 3.3 2.8 Non-Operating items: Restructuring and related charges 0.5 (3.0 ) 1.8 (2.3 ) Acquisition and integration costs 5.5 4.7 6.0 5.9 Deferred compensation related to CBB acquisition 0.9 0.7 1.8 — 0.7 Inventory purchase accounting adjustment, cost of sales 0.1 0.6 0.1 0.6 Operating Income 54.6 63.1 92.7 110.7 Less: Interest Expense 20.9 20.5 41.9 40.5 Amortization of debt issuance costs 1.4 1.4 2.9 2.8 Foreign currency losses (gains), net 8.5 (7.9 ) 5.1 8.0 Miscellaneous, net 0.2 0.2 0.5 0.2 Income from continuing operations before income taxes $ 23.6 $ 48.9 $ 42.3 $ 59.2 As of June 30, 2016 , the Company had operations established in 23 countries outside of the U.S. and its products are sold throughout the world. Generally, net sales by geographic area are presented by attributing revenues from external customers on the basis of where the products are sold. | The following table is a comparative summary of the Company’s net sales and segment profit by reportable segment for each of 2015, 2014 , and 2013. In the table below, certain prior period amounts have been reclassified to conform to the presentation for 2015. Twelve Months Ended December 31, 2015 2014 2013 Segment Net Sales: Consumer $ 1,414.8 $ 1,438.3 $ 1,394.2 Professional 471.1 502.7 100.5 Other $ 28.4 $ — $ — Total $ 1,914.3 $ 1,941.0 $ 1,494.7 Segment Profit: Consumer (a) $ 360.2 $ 339.4 $ 342.3 Professional 103.9 104.8 5.1 Other $ 1.4 $ — $ — Total $ 465.5 $ 444.2 $ 347.4 Reconciliation: Segment Profit $ 465.5 $ 444.2 $ 347.4 Less: Unallocated corporate expenses (a) 79.0 59.2 53.8 Depreciation and amortization 103.2 102.6 — 76.7 Non-cash stock compensation expense 5.1 5.5 0.2 Non-Operating items: Restructuring and related charges 11.6 22.6 4.5 Acquisition and integration costs 8.0 6.4 25.4 Inventory purchase accounting adjustment, cost of sales 0.9 2.6 8.5 Pension Lump sum settlement 20.7 — — Goodwill impairment charge 9.7 — — Deferred Compensation related to CBB Acquisition 2.5 — — Gain from insurance proceeds related to Venezuela fire — — (26.4 ) Accrual for clean-up costs related to destroyed facility in Venezuela — — 7.6 Operating Income 224.8 245.3 197.1 Less: Interest Expense 83.3 84.4 78.6 Amortization of debt issuance costs 5.7 5.5 3.5 Loss on early extinguishment of debt — 2.0 29.7 Foreign currency losses (gains), net 15.7 25.0 3.7 Miscellaneous, net 0.4 1.2 1.0 Income from continuing operations before income taxes $ 119.7 $ 127.2 $ 80.6 (a) During the second quarter of 2015, the Company removed pension-related costs for its U.S. qualified defined benefit pension plans from the measurement of its operating segment results. As a result, $8.2 million and $4.9 million of pension-related costs were reclassified from the measurement of Consumer segment profit and included as a component of unallocated corporate expenses for 2014 and 2013, respectively. |
Schedule of Net Sales and Long-Lived Assets by Geographic Area | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Geographic area: Net sales: United States $ 263.0 54% $ 267.0 55% $ 510.7 55% $ 511.4 56% Outside of the United States 225.9 46% 215.4 45% 417.8 45% 409.5 44% $ 488.9 $ 482.4 $ 928.5 $ 920.9 June 30, 2016 December 31, 2015 Long-lived assets, net: United States $ 853.0 77% $ 854.7 79% Outside of the United States 258.8 23% 232.4 21% $ 1,111.8 $ 1,087.1 | the tables below, certain prior year amounts have been reclassified to conform to the current period’s presentation. Year Ended December 31, 2015 2014 2013 Geographic area: Net sales: United States $ 1,043.7 55% $ 1,021.9 53% $ 832.8 56% Outside of the United States 870.6 45% 919.1 47% $ 661.9 44% $ 1,914.3 $ 1,941.0 $ 1,494.7 December 31, 2015 December 31, 2014 Long-lived assets, net: United States $ 874.7 79% $ 845.5 76% Outside of the United States 232.4 21% 271.7 24% $ 1,107.1 $ 1,117.2 |
Schedule of Net Sales by Classes of Similar Products | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Classes of similar products: Net sales: Color cosmetics $ 263.4 54% $ 266.0 55% $ 487.7 52% $ 505.5 55% Hair care 134.7 27% 130.0 27% 266.8 29% 256.9 28% Beauty care and fragrance 90.8 19% 86.4 18% 174.0 19% 158.5 17% $ 488.9 $ 482.4 $ 928.5 $ 920.9 | Year Ended December 31, 2015 2014 2013 Classes of similar products: Net sales: Color cosmetics $ 1,026.4 54% $ 1,032.4 53% $ 926.4 62% Hair care 522.1 27% 545.0 28% 263.9 18% Beauty care and fragrance 365.8 19% 363.6 19% 304.4 20% $ 1,914.3 $ 1,941.0 $ 1,494.7 |
GUARANTOR FINANCIAL INFORMATI90
GUARANTOR FINANCIAL INFORMATION - Q2 (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets As of June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 61.9 $ 71.4 $ 52.5 $ — $ 185.8 Trade receivables, less allowances for doubtful accounts 93.9 45.3 129.2 — 268.4 Inventories 92.5 38.0 79.1 — 209.6 Prepaid expenses and other 154.6 6.8 40.1 — 201.5 Intercompany receivables 778.9 451.2 79.2 (1,309.3 ) — Investment in subsidiaries 576.4 (6.2 ) — (570.2 ) — Property, plant and equipment, net 127.4 26.7 62.7 — 216.8 Deferred income taxes 7.2 — 34.5 — 41.7 Goodwill 182.4 30.0 264.3 — 476.7 Intangible assets, net 53.8 152.8 122.3 — 328.9 Other assets 50.6 13.4 25.4 — 89.4 Total assets $ 2,179.6 $ 829.4 $ 889.3 $ (1,879.5 ) $ 2,018.8 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 14.1 $ — $ 14.1 Current portion of long-term debt 6.7 — 0.1 — 6.8 Accounts payable 74.2 28.7 84.7 — 187.6 Accrued expenses and other 134.4 16.5 82.3 — 233.2 Intercompany payables 427.6 461.3 420.4 (1,309.3 ) — Long-term debt 1,783.1 — 0.5 — 1,783.6 Other long-term liabilities 211.1 5.9 34.0 — 251.0 Total liabilities 2,637.1 512.4 636.1 (1,309.3 ) 2,476.3 Stockholder’s deficiency (457.5 ) 317.0 253.2 (570.2 ) (457.5 ) Total liabilities and stockholder’s deficiency $ 2,179.6 $ 829.4 $ 889.3 $ (1,879.5 ) $ 2,018.8 Condensed Consolidating Balance Sheets As of December 31, 2015 (as adjusted) Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 Trade receivables, less allowances for doubtful accounts 79.7 44.5 120.7 — 244.9 Inventories 88.1 34.5 61.2 — 183.8 Prepaid expenses and other 136.9 3.3 30.5 — 170.7 Intercompany receivables 692.1 366.5 95.2 (1,153.8 ) — Investment in subsidiaries 591.0 16.3 — (607.3 ) — Property, plant and equipment, net 124.8 28.1 62.4 — 215.3 Deferred income taxes 5.8 — 44.0 — 49.8 Goodwill 182.4 30.0 257.3 — 469.7 Intangible assets, net 56.6 156.7 104.7 — 318.0 Other assets 49.4 9.6 25.1 — 84.1 Total assets $ 2,148.3 $ 782.5 $ 893.5 $ (1,761.1 ) $ 2,063.2 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 11.3 $ — $ 11.3 Current portion of long-term debt 29.9 — 0.1 — 30.0 Accounts payable 85.3 29.2 86.8 — 201.3 Accrued expenses and other 175.1 18.9 78.4 — 272.4 Intercompany payables 360.4 401.0 392.4 (1,153.8 ) — Long-term debt 1,783.2 — 0.5 — 1,783.7 Other long-term liabilities 206.0 0.8 49.3 — 256.1 Total liabilities 2,639.9 449.9 618.8 (1,153.8 ) 2,554.8 Stockholder's deficiency (491.6 ) 332.6 274.7 (607.3 ) (491.6 ) Total liabilities and stockholder’s deficiency 2,148.3 782.5 893.5 (1,761.1 ) 2,063.2 | Condensed Consolidating Balance Sheets As of December 31, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 Trade receivables, less allowances for doubtful accounts 79.7 44.5 120.7 — 244.9 Inventories 88.1 34.5 61.2 — 183.8 Deferred income taxes - current 49.4 — 8.6 — 58.0 Prepaid expenses and other 136.9 3.3 30.5 — 170.7 Intercompany receivables 692.1 366.5 95.2 (1,153.8 ) — Investment in subsidiaries 591.0 16.3 — (607.3 ) — Property, plant and equipment, net 124.8 28.1 62.4 — 215.3 Deferred income taxes - noncurrent 3.1 — 35.4 — 38.5 Goodwill 182.4 30.0 257.3 — 469.7 Intangible assets, net 56.6 156.7 104.7 — 318.0 Other assets 69.4 9.6 25.1 — 104.1 Total assets $ 2,215.0 $ 782.5 $ 893.5 $ (1,761.1 ) $ 2,129.9 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 11.3 $ — $ 11.3 Current portion of long-term debt 29.9 — 0.1 — 30.0 Accounts payable 85.3 29.2 86.8 — 201.3 Accrued expenses and other 175.1 18.9 78.4 — 272.4 Intercompany payables 360.4 401.0 392.4 (1,153.8 ) — Long-term debt 1,803.2 — 0.5 — 1,803.7 Other long-term liabilities 252.7 0.8 49.3 — 302.8 Total liabilities 2,706.6 449.9 618.8 (1,153.8 ) 2,621.5 Stockholder’s deficiency (491.6 ) 332.6 274.7 (607.3 ) (491.6 ) Total liabilities and stockholder’s deficiency $ 2,215.0 $ 782.5 $ 893.5 $ (1,761.1 ) $ 2,129.9 (a) In January 2015, a newly-formed U.S.-domiciled entity in the Professional segment became an additional guarantor under Products Corporation’s Amended Term Loan Facility, Amended Revolving Credit Facility and the indenture for Products Corporation’s 5¾% Senior Notes. In connection with the CBB Acquisition, in May 2015 the Company’s newly-formed U.S.-domiciled subsidiary, RML, LLC, also became an additional guarantor under such debt instruments. Condensed Consolidating Balance Sheets As of December 31, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 104.2 $ 88.1 $ 83.0 $ — $ 275.3 Trade receivables, less allowances for doubtful accounts 87.8 39.7 111.4 — 238.9 Inventories 75.5 30.6 50.5 — 156.6 Deferred income taxes - current 46.2 — 12.2 — 58.4 Prepaid expenses and other 119.0 6.2 24.8 — 150.0 Intercompany receivables 992.5 630.0 129.6 (1,752.1 ) — Investment in subsidiaries 562.8 (161.4 ) — (401.4 ) — Property, plant and equipment, net 112.4 28.0 71.6 — 212.0 Deferred income taxes - noncurrent 22.6 — 12.2 — 34.8 Goodwill 185.8 30.0 248.3 — 464.1 Intangible assets, net 53.2 164.6 110.0 — 327.8 Other assets 83.2 2.9 27.2 — 113.3 Total assets $ 2,445.2 $ 858.7 $ 880.8 $ (2,153.5 ) $ 2,031.2 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 6.6 $ — $ 6.6 Current portion of long-term debt 31.5 — — — 31.5 Accounts payable 68.3 19.0 66.2 — 153.5 Accrued expenses and other 159.0 24.5 89.8 — 273.3 Intercompany payables 672.9 703.6 375.6 (1,752.1 ) — Long-term debt 1,831.7 — 0.7 — 1,832.4 Other long-term liabilities 238.8 4.4 47.7 — 290.9 Total liabilities 3,002.2 751.5 586.6 (1,752.1 ) 2,588.2 Stockholder’s deficiency (557.0 ) 107.2 294.2 (401.4 ) (557.0 ) Total liabilities and stockholder’s deficiency $ 2,445.2 $ 858.7 $ 880.8 $ (2,153.5 ) $ 2,031.2 |
Condensed Statements of Income and Comprehensive Income | Condensed Consolidating Statements of Income and Comprehensive Income For the Three Months Ended June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 229.4 $ 85.6 $ 187.8 $ (13.9 ) $ 488.9 Cost of sales 83.0 31.8 70.6 (13.9 ) 171.5 Gross profit 146.4 53.8 117.2 — 317.4 Selling, general and administrative expenses 123.7 37.2 95.9 — 256.8 Acquisition and integration costs 5.2 — 0.3 — 5.5 Restructuring charges and other, net (0.2 ) 0.1 0.6 — 0.5 Operating income 17.7 16.5 20.4 — 54.6 Other expenses (income): Intercompany interest, net (2.0 ) (0.2 ) 2.2 — — Interest expense 20.7 — 0.2 — 20.9 Amortization of debt issuance costs 1.4 — — — 1.4 Foreign currency losses (gains), net 1.8 (0.6 ) 7.3 — 8.5 Miscellaneous, net (12.5 ) (3.2 ) 15.9 — 0.2 Other expenses (income), net 9.4 (4.0 ) 25.6 — 31.0 Income (loss) from continuing operations before income taxes 8.3 20.5 (5.2 ) — 23.6 (Benefit from) provision for income taxes (3.8 ) 12.8 2.8 — 11.8 Income (loss) from continuing operations 12.1 7.7 (8.0 ) — 11.8 Loss from discontinued operations, net of taxes — — (2.5 ) — (2.5 ) Equity in loss of subsidiaries (2.8 ) (6.2 ) — 9.0 — Net income (loss) $ 9.3 $ 1.5 $ (10.5 ) $ 9.0 $ 9.3 Other comprehensive income (loss) 4.8 (3.1 ) (5.4 ) 8.5 4.8 Total comprehensive income (loss) $ 14.1 $ (1.6 ) $ (15.9 ) $ 17.5 $ 14.1 Condensed Consolidating Statements of Income and Comprehensive Income For the Three Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 268.4 $ 85.3 $ 178.6 $ (49.9 ) $ 482.4 Cost of sales 114.4 33.0 63.8 (49.9 ) 161.3 Gross profit 154.0 52.3 114.8 — 321.1 Selling, general and administrative expenses 119.3 40.2 97.4 — 256.9 Acquisition and integration costs 4.7 — — — 4.7 Restructuring charges and other, net (0.7 ) 0.6 — (3.5 ) — (3.6 ) Operating income 30.7 11.5 20.9 — 63.1 Other expenses (income): Intercompany interest, net (2.1 ) — 2.1 — — Interest expense 20.3 — 0.2 — 20.5 Amortization of debt issuance costs 1.4 — — — 1.4 Foreign currency (gains), net (1.4 ) — (6.5 ) — (7.9 ) Miscellaneous, net 11.4 (2.9 ) (8.3 ) — 0.2 Other expenses (income), net 29.6 (2.9 ) (12.5 ) — 14.2 Income from continuing operations before income taxes 1.1 14.4 33.4 — 48.9 Provision for income taxes 9.5 9.5 2.4 — 21.4 Loss (income) from continuing operations (8.4 ) 4.9 31.0 — 27.5 Income from discontinued operations, net of taxes — — — — — Equity in loss of subsidiaries 35.9 22.6 — (58.5 ) — Net income $ 27.5 $ 27.5 $ 31.0 $ (58.5 ) $ 27.5 Other comprehensive income (loss) 2.5 (1.8 ) 1.8 — 2.5 Total comprehensive income $ 30.0 $ 25.7 $ 32.8 $ (58.5 ) $ 30.0 Condensed Consolidating Statements of Income and Comprehensive Income For the Six Months Ended June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 428.1 $ 168.6 $ 346.0 $ (14.2 ) $ 928.5 Cost of sales 145.2 62.2 132.2 (14.2 ) 325.4 Gross profit 282.9 106.4 213.8 — 603.1 Selling, general and administrative expenses 247.7 72.8 182.1 — 502.6 Acquisition and integration costs 5.6 — 0.4 — 6.0 Restructuring charges and other, net — 0.7 1.1 — 1.8 Operating income 29.6 32.9 30.2 — 92.7 Other expenses (income): Intercompany interest, net (4.3 ) 0.1 4.2 — — Interest expense 41.6 — 0.3 — 41.9 Amortization of debt issuance costs 2.9 — — — 2.9 Foreign currency losses (gains), net 2.1 (0.3 ) 3.3 — 5.1 Miscellaneous, net (34.7 ) 3.8 31.4 — 0.5 Other expenses, net 7.6 3.6 39.2 — 50.4 Income (loss) from continuing operations before income taxes 22.0 29.3 (9.0 ) — 42.3 (Benefit from) provision for income taxes (8.5 ) 26.2 0.2 — 17.9 Income (loss) from continuing operations 30.5 3.1 (9.2 ) — 24.4 Loss from discontinued operations, net of taxes — — (2.1 ) — (2.1 ) Equity in loss of subsidiaries (8.2 ) (12.1 ) — 20.3 — Net income (loss) $ 22.3 $ (9.0 ) $ (11.3 ) $ 20.3 $ 22.3 Other comprehensive income (loss) 8.4 (7.5 ) (8.2 ) 15.7 8.4 Total comprehensive income (loss) $ 30.7 $ (16.5 ) $ (19.5 ) $ 36.0 $ 30.7 Condensed Consolidating Statements of Income and Comprehensive Income For the Six Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 511.8 $ 166.3 $ 334.8 $ (92.0 ) $ 920.9 Cost of sales 215.6 60.7 119.3 (92.0 ) 303.6 Gross profit 296.2 105.6 215.5 — 617.3 Selling, general and administrative expenses 245.8 68.8 189.2 — 503.8 Acquisition and integration costs 5.9 — — — 5.9 Restructuring charges and other, net (0.5 ) 0.7 (3.3 ) — (3.1 ) Operating income 45.0 36.1 29.6 — 110.7 Other expenses (income): Intercompany interest, net (4.1 ) (0.1 ) 4.2 — — Interest expense 40.3 — 0.2 — 40.5 Amortization of debt issuance costs 2.8 — — — 2.8 Foreign currency (gains) losses, net (1.2 ) (0.5 ) 9.7 — 8.0 Miscellaneous, net (6.2 ) (1.4 ) 7.8 — 0.2 Other expenses (income), net 31.6 (2.0 ) 21.9 — 51.5 Income from continuing operations before income taxes 13.4 38.1 7.7 — 59.2 Provision for income taxes 11.0 18.1 1.9 — 31.0 Income from continuing operations 2.4 20.0 5.8 — 28.2 Loss from discontinued operations, net of taxes — — (0.1 ) — (0.1 ) Equity in loss of subsidiaries 25.7 12.4 — (38.1 ) — Net income $ 28.1 $ 32.4 $ 5.7 $ (38.1 ) $ 28.1 Other comprehensive loss (11.1 ) (2.8 ) (13.3 ) 16.1 (11.1 ) Total comprehensive income (loss) $ 17.0 $ 29.6 $ (7.6 ) $ (22.0 ) $ 17.0 | Condensed Consolidating Statements of Income and Comprehensive Income Twelve Months Ended December 31, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 1,049.4 $ 340.4 $ 730.7 $ (206.2 ) $ 1,914.3 Cost of sales 466.0 129.4 278.6 (206.2 ) 667.8 Gross profit 583.4 211.0 452.1 — 1,246.5 Selling, general and administrative expenses 495.0 131.2 367.3 — 993.5 Acquisition and integration costs 7.1 — 0.9 — 8.0 Restructuring charges and other, net 6.6 0.4 3.5 — 10.5 Impairment Charge 9.7 — — — 9.7 Operating income 65.0 79.4 80.4 — 224.8 Other expenses (income): Intercompany interest, net (8.2 ) (0.1 ) 8.3 — — Interest expense 82.5 — 0.8 — 83.3 Amortization of debt issuance costs 5.7 — — — 5.7 Foreign currency (gains) losses, net 0.4 (0.6 ) 15.9 — 15.7 Miscellaneous, net (54.2 ) (0.1 ) 54.7 — 0.4 Other expenses (income), net 26.2 (0.8 ) 79.7 — 105.1 Income (loss) from continuing operations before income taxes 38.8 80.2 0.7 — 119.7 Provision for income taxes 16.0 36.2 2.2 — 54.4 (Loss) income from continuing operations 22.8 44.0 (1.5 ) — 65.3 Income (loss) from discontinued operations, net of taxes — — (3.2 ) — (3.2 ) Equity in income of subsidiaries 39.3 43.1 — (82.4 ) — Net income (loss) $ 62.1 $ 87.1 $ (4.7 ) $ (82.4 ) $ 62.1 Other comprehensive (loss) income (2.1 ) (1.5 ) (18.8 ) 20.3 (2.1 ) Total comprehensive (loss) income $ 60.0 $ 85.6 $ (23.5 ) $ (62.1 ) $ 60.0 (a) In January 2015, a newly-formed U.S.-domiciled entity in the Professional segment became an additional guarantor under Products Corporation’s Amended Term Loan Facility, Amended Revolving Credit Facility and the indenture for Products Corporation’s 5¾% Senior Notes. In connection with the CBB Acquisition, in May 2015 the Company’s newly-formed U.S.-domiciled subsidiary, RML, LLC, also became an additional guarantor under such debt instruments. Condensed Consolidating Statements of Income and Comprehensive Income Twelve Months Ended December 31, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 1,001.1 $ 356.8 $ 771.5 $ (188.4 ) $ 1,941.0 Cost of sales 430.5 146.9 279.3 (188.4 ) 668.3 Gross profit 570.6 209.9 492.2 — 1,272.7 Selling, general and administrative expenses 466.6 133.3 399.8 — 999.7 Acquisition and integration costs 6.4 — — — 6.4 Restructuring charges and other, net 2.9 3.3 15.1 — 21.3 Operating income 94.7 73.3 77.3 — 245.3 Other expenses (income): Intercompany interest, net (8.0 ) (0.4 ) 8.4 — — Interest expense 83.6 0.1 0.7 — 84.4 Amortization of debt issuance costs 5.5 — — — 5.5 Loss on extinguishment of debt, net 2.0 — — — 2.0 Foreign currency (gains) losses, net (3.1 ) (0.1 ) 28.2 — 25.0 Miscellaneous, net (48.0 ) (8.2 ) 57.4 — 1.2 Other expenses (income), net 32.0 (8.6 ) 94.7 — 118.1 Income (loss) from continuing operations before income taxes 62.7 81.9 (17.4 ) — 127.2 Provision for income taxes 85.8 (8.4 ) 3.8 — 81.2 (Loss) income from continuing operations (23.1 ) 90.3 (21.2 ) — 46.0 Income (loss) from discontinued operations, net of taxes 0.2 — 1.1 — 1.3 Equity in income of subsidiaries 70.2 1.5 — (71.7 ) — Net income (loss) $ 47.3 $ 91.8 $ (20.1 ) $ (71.7 ) $ 47.3 Other comprehensive (loss) income (93.4 ) 9.3 (15.8 ) 6.5 (93.4 ) Total comprehensive (loss) income $ (46.1 ) $ 101.1 $ (35.9 ) $ (65.2 ) $ (46.1 ) Condensed Consolidating Statements of Income and Comprehensive Income Twelve Months Ended December 31, 2013 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 972.8 $ 90.5 $ 626.6 $ (195.2 ) $ 1,494.7 Cost of sales 438.4 45.6 256.3 (195.2 ) 545.1 Gross profit 534.4 44.9 370.3 — 949.6 Selling, general and administrative expenses 418.1 37.8 267.7 — 723.6 Acquisition and integration costs 24.2 — 1.2 — 25.4 Restructuring charges and other, net — 0.4 3.1 — 3.5 Operating income 92.1 6.7 98.3 — 197.1 Other expenses (income): Intercompany interest, net (0.8 ) (0.6 ) 6.2 — 4.8 Interest expense 72.9 0.3 0.6 — 73.8 Amortization of debt issuance costs 3.5 — — — 3.5 Loss on extinguishment of debt, net 29.7 — — — 29.7 Foreign currency losses (gains), net 3.2 1.3 (0.8 ) — 3.7 Miscellaneous, net (2.4 ) (11.5 ) 14.9 — 1.0 Other expenses (income), net 106.1 (10.5 ) 20.9 — 116.5 (Loss) income from continuing operations before income taxes (14.0 ) 17.2 77.4 — 80.6 Provision for income taxes 39.9 0.3 8.4 — 48.6 (Loss) Income from continuing operations (53.9 ) 16.9 69.0 — 32.0 Income (loss) from discontinued operations, net of taxes 0.3 — (30.7 ) — (30.4 ) Equity in income of subsidiaries 55.2 24.6 — (79.8 ) — Net income (loss) $ 1.6 $ 41.5 $ 38.3 $ (79.8 ) $ 1.6 Other comprehensive income (loss) 58.4 16.7 10.2 (26.9 ) 58.4 Total comprehensive income (loss) $ 60.0 $ 58.2 $ 48.5 $ (106.7 ) $ 60.0 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2016 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash used in operating activities $ (27.2 ) $ (20.4 ) $ (9.6 ) $ — $ (57.2 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (13.2 ) (1.2 ) (4.2 ) — (18.6 ) Business acquisition — — (29.2 ) — (29.2 ) Proceeds from the sale of certain assets — 0.4 — — 0.4 Net cash used in investing activities (13.2 ) (0.8 ) (33.4 ) — (47.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net (decrease) increase in short-term borrowings and overdraft (11.2 ) — 2.8 — (8.4 ) Repayments under the Acquisition Term Loan (15.1 ) — — — (15.1 ) Prepayments under the 2011 Term Loan (11.5 ) — — — (11.5 ) Other financing activities (1.4 ) — (0.2 ) — (1.6 ) Net cash (used in) provided by financing activities (39.2 ) — 2.6 — (36.6 ) Effect of exchange rate changes on cash and cash equivalents — (0.4 ) 0.5 — 0.1 Net decrease in cash and cash equivalents (79.6 ) (21.6 ) (39.9 ) — (141.1 ) Cash and cash equivalents at beginning of period $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 Cash and cash equivalents at end of period $ 61.9 $ 71.4 $ 52.5 $ — $ 185.8 Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash (used in) provided by operating activities $ (1.7 ) $ (0.3 ) $ 4.5 $ — $ 2.5 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (10.6 ) (2.5 ) (4.1 ) — (17.2 ) Business acquisition, net of cash acquired — — (34.2 ) — (34.2 ) Proceeds from the sale of certain assets 0.4 1.5 0.1 — 2.0 Net cash used in investing activities (10.2 ) (1.0 ) (38.2 ) — (49.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase in short-term borrowings and overdraft 4.0 — 2.6 — 6.6 Repayments under the Acquisition Term Loan (15.9 ) — — — (15.9 ) Prepayments under the 2011 Term Loan (12.1 ) — — — (12.1 ) Other financing activities (1.9 ) — (0.2 ) — (2.1 ) Net cash (used in) provided by financing activities (25.9 ) — 2.4 — (23.5 ) Effect of exchange rate changes on cash and cash equivalents — — (5.9 ) — (5.9 ) Net decrease in cash and cash equivalents (37.8 ) (1.3 ) (37.2 ) — (76.3 ) Cash and cash equivalents at beginning of period $ 104.2 $ 88.1 $ 83.0 $ — $ 275.3 Cash and cash equivalents at end of period $ 66.4 $ 86.8 $ 45.8 $ — $ 199.0 | Condensed Consolidating Statements of Cash Flows Twelve Months Ended December 31, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 89.1 $ 7.9 $ 58.3 $ — $ 155.3 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (29.5 ) (5.5 ) (13.3 ) — (48.3 ) Business acquisitions, net of cash and cash required (8.1 ) — (33.6 ) — (41.7 ) Proceeds from the sale of certain assets 3.5 2.7 — — 6.2 Net cash used in investing activities (34.1 ) (2.8 ) (46.9 ) — (83.8 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase in short-term borrowings and overdraft 17.3 — 5.7 — 23.0 Repayments under the Acquisition Term Loan (19.3 ) — — — (19.3 ) Prepayments under the 2011 Term Loan (12.1 ) — — — (12.1 ) Other financing activities (3.6 ) — (0.1 ) — (3.7 ) Net cash (used in) provided by financing activities (17.7 ) — 5.6 — (12.1 ) Effect of exchange rate changes on cash and cash equivalents — (0.2 ) (7.6 ) — (7.8 ) Net increase in cash and cash equivalents 37.3 4.9 9.4 — 51.6 Cash and cash equivalents at beginning of period 104.2 88.1 83.0 — 275.3 Cash and cash equivalents at end of period $ 141.5 $ 93.0 $ 92.4 $ — $ 326.9 (a) In January 2015, a newly-formed U.S.-domiciled entity in the Professional segment became an additional guarantor under Products Corporation’s Amended Term Loan Facility, Amended Revolving Credit Facility and the indenture for Products Corporation’s 5¾% Senior Notes. In connection with the CBB Acquisition, in May 2015 the Company’s newly-formed U.S.-domiciled subsidiary, RML, LLC, also became an additional guarantor under such debt instruments. Condensed Consolidating Statements of Cash Flows Twelve Months Ended December 31, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 77.3 $ 78.0 $ 18.7 $ — $ 174.0 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (40.3 ) (2.4 ) (12.8 ) — (55.5 ) Proceeds from the sale of certain assets — — 3.4 — 3.4 Net cash used in investing activities (40.3 ) (2.4 ) (9.4 ) — (52.1 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net (decrease) increase in short-term borrowings and overdraft (4.2 ) (1.9 ) 1.4 — (4.7 ) Repayment of Non-Contributed Loan (58.4 ) — — — (58.4 ) Repayments under the Acquisition Term Loan (7.0 ) — — — (7.0 ) Payment of financing costs (1.8 ) — — — (1.8 ) Other financing activities (2.7 ) — (0.5 ) — (3.2 ) Net cash (used in) provided by financing activities (74.1 ) (1.9 ) 0.9 — (75.1 ) Effect of exchange rate changes on cash and cash equivalents — (0.1 ) (15.5 ) — (15.6 ) Net (decrease) increase in cash and cash equivalents (37.1 ) 73.6 (5.3 ) — 31.2 Cash and cash equivalents at beginning of period (a) 141.3 14.5 88.3 — 244.1 Cash and cash equivalents at end of period $ 104.2 $ 88.1 $ 83.0 $ — $ 275.3 (a) In January 2014, Colomer's U.S. subsidiaries became additional guarantors under Products Corporation's Amended Credit Agreements and 5¾% Senior Notes. Accordingly, for cash flow presentation purposes, the cash and cash equivalents at the beginning of the period associated with Colomer's U.S. subsidiaries have been reported under Guarantor Subsidiaries. Condensed Consolidating Statements of Cash Flows Twelve Months Ended December 31, 2013 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 76.9 $ 4.6 $ 41.8 $ — 123.3 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (21.1 ) (0.6 ) — (6.9 ) — (28.6 ) Business acquisition, net of cash and cash equivalents acquired (627.6 ) — — — (627.6 ) Insurance proceeds for property, plant and equipment — — 13.1 — 13.1 Proceeds from the sale of certain assets 0.3 — 3.4 — 3.7 Net cash (used in) provided by investing activities (648.4 ) (0.6 ) 9.6 — (639.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net (decrease) increase in short-term borrowings and overdraft (2.0 ) (3.2 ) (1.1 ) — (6.3 ) Borrowings under the Acquisition Term Loan 698.3 — — — 698.3 Proceeds from the issuance of the 5¾% Senior Notes 500.0 — — — 500.0 Repayment of the 9¾% Senior Secured Notes (330.0 ) — — — (330.0 ) Repayment under the 2011 Term Loan Facility (113.0 ) — — — (113.0 ) Repayment of the Contributed Loan (48.6 ) — — — (48.6 ) Payment of financing costs (48.8 ) — — — (48.8 ) Other financing activities (2.2 ) — (0.4 ) — (2.6 ) Net cash provided by (used in) financing activities 653.7 (3.2 ) — (1.5 ) — — — 649.0 Effect of exchange rate changes on cash and cash equivalents — — (5.1 ) — (5.1 ) Net increase in cash and cash equivalents 82.2 0.8 — 44.8 — — — 127.8 Cash and cash equivalents at beginning of period 59.1 — 57.2 — 116.3 Cash and cash equivalents at end of period 141.3 0.8 — 102.0 — — — 244.1 |
DESCRIPTION OF BUSINESS AND S91
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - 10K (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2013USD ($) | Jun. 30, 2016USD ($)Segmentshares | Jun. 30, 2015USD ($) | [1] | Dec. 31, 2015USD ($)SegmentCustomers$ / sharesshares | Dec. 31, 2014USD ($)Customersshares | Dec. 31, 2013USD ($) | Feb. 28, 2013 | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Number of operating segments | Segment | 3 | 3 | |||||||||||
Cash equivalents | $ 1.6 | $ 1.6 | $ 6.3 | ||||||||||
Outstanding checks | 19.5 | $ 19.5 | $ 2.2 | ||||||||||
Concentration risk, number of major customers | Customers | 3 | 3 | |||||||||||
Property, plant and equipment, net | 215.3 | [1] | $ 216.8 | $ 215.3 | [1] | $ 212 | |||||||
Amortization expense | 52.2 | $ 50.8 | 103.2 | 102.6 | $ 76.7 | ||||||||
Net deferred financing costs | 21.3 | 21.3 | 26.9 | ||||||||||
Impairment of long-lived assets | 0 | 0 | 5.9 | ||||||||||
Goodwill impairment charge | $ 9.7 | 9.7 | 0 | 0 | |||||||||
Impairment of intangible assets | 0 | 0 | 0 | ||||||||||
Advertising expenses | 375.1 | 383.2 | 278.5 | ||||||||||
Distribution costs | 80.2 | 84.9 | 66.5 | ||||||||||
Research and development expenditures | 31.2 | 31.6 | 26.9 | ||||||||||
Foreign currency exchange rate | 6.3 | ||||||||||||
Foreign currency losses from re-measurement | $ 1.9 | $ 0.6 | $ 4.2 | $ 8.8 | $ 19.5 | $ 25.5 | 5.9 | ||||||
Preferred stock, shares authorized (shares) | shares | 1,000 | 1,000 | 1,000 | 1,000 | |||||||||
Preferred stock, shares outstanding (shares) | shares | 546 | 546 | |||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 100,000 | $ 100,000 | |||||||||||
Preferred stock, redemption price (in dollars per share) | $ / shares | $ 100,000 | $ 100,000 | |||||||||||
Revlon Venezuela [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Foreign currency exchange rate | 193 | 53 | |||||||||||
Foreign currency losses from re-measurement | $ 0.6 | ||||||||||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Concentration risk, percentage | 27.00% | 31.00% | |||||||||||
Land Improvements [Member] | Minimum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 20 years | ||||||||||||
Land Improvements [Member] | Maximum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 30 years | ||||||||||||
Buildings and improvements [Member] | Minimum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 5 years | ||||||||||||
Buildings and improvements [Member] | Maximum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 50 years | ||||||||||||
Machinery and equipment [Member] | Minimum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 3 years | ||||||||||||
Machinery and equipment [Member] | Maximum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 15 years | ||||||||||||
Furniture and fixtures [Member] | Minimum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 3 years | ||||||||||||
Furniture and fixtures [Member] | Maximum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 15 years | ||||||||||||
Capitalized software [Member] | Minimum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 2 years | ||||||||||||
Capitalized software [Member] | Maximum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 10 years | ||||||||||||
Wall display [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, net | $ 65.6 | $ 65.6 | $ 63.3 | ||||||||||
Amortization expense | $ 41.3 | $ 42.5 | $ 39.2 | ||||||||||
Wall display [Member] | Minimum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 1 year | ||||||||||||
Wall display [Member] | Maximum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 3 years | ||||||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
BUSINESS COMBINATIONS - Schedul
BUSINESS COMBINATIONS - Schedule of Net Assets Acquired - 10K (Details) - USD ($) $ in Millions | Apr. 21, 2015 | Oct. 09, 2013 | Nov. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2016 | Dec. 31, 2013 | |
Estimated Fair Values of Net Assets Acquired | |||||||||
Goodwill | $ 469.7 | [1] | $ 464.1 | $ 476.7 | $ 472.3 | ||||
Customer relationships [Member] | |||||||||
Measurement Period Adjustments | |||||||||
Weighted average remaining useful life | 16 years | 17 years | |||||||
Distribution rights [Member] | |||||||||
Measurement Period Adjustments | |||||||||
Weighted average remaining useful life | 5 years | ||||||||
Acquisitions 2015 [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase Consideration | $ 12.5 | ||||||||
Total Net Assets Acquired | 2.4 | ||||||||
Estimated Fair Values of Net Assets Acquired | |||||||||
Purchased Intangible Assets | 8.1 | ||||||||
Goodwill | $ 1.9 | ||||||||
CBBeauty Group [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase Consideration | $ 48.6 | ||||||||
Total Net Assets Acquired | 2.3 | ||||||||
Estimated Fair Values of Net Assets Acquired | |||||||||
Purchased Intangible Assets | 12.1 | ||||||||
Goodwill | 19.5 | ||||||||
Total consideration | 33.9 | ||||||||
CBBeauty Group [Member] | Scenario, Previously Reported [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Total Net Assets Acquired | 3.9 | ||||||||
Estimated Fair Values of Net Assets Acquired | |||||||||
Purchased Intangible Assets | 11.9 | ||||||||
Goodwill | 18.8 | ||||||||
Total consideration | 34.6 | ||||||||
CBBeauty Group [Member] | Scenario, Adjustment [Member] | |||||||||
Measurement Period Adjustments | |||||||||
Intangible assets | 0.2 | ||||||||
Goodwill, Period Increase (Decrease) | 0.7 | ||||||||
Total Net Assets Acquired | (1.6) | ||||||||
Total consideration | (0.7) | ||||||||
CBBeauty Group [Member] | Customer relationships [Member] | |||||||||
Estimated Fair Values of Net Assets Acquired | |||||||||
Purchased Intangible Assets | $ 7 | ||||||||
Measurement Period Adjustments | |||||||||
Weighted average remaining useful life | 14 years | ||||||||
CBBeauty Group [Member] | Distribution rights [Member] | |||||||||
Estimated Fair Values of Net Assets Acquired | |||||||||
Purchased Intangible Assets | $ 3.5 | ||||||||
Measurement Period Adjustments | |||||||||
Weighted average remaining useful life | 8 years | ||||||||
CBBeauty Group [Member] | Trade names, finite-lived [Member] | |||||||||
Estimated Fair Values of Net Assets Acquired | |||||||||
Purchased Intangible Assets | $ 1.6 | ||||||||
Measurement Period Adjustments | |||||||||
Weighted average remaining useful life | 5 years | ||||||||
American Crew and Revlon Professional Distribution Rights - Australia [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase Consideration | $ 4.4 | ||||||||
Total Net Assets Acquired | 1.4 | ||||||||
Estimated Fair Values of Net Assets Acquired | |||||||||
Purchased Intangible Assets | 2.9 | ||||||||
Goodwill | $ 0 | ||||||||
Measurement Period Adjustments | |||||||||
Weighted average remaining useful life | 10 years | ||||||||
Cutex Brands, LLC [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase Consideration | $ 8.1 | ||||||||
Total Net Assets Acquired | 1 | ||||||||
Estimated Fair Values of Net Assets Acquired | |||||||||
Inventories | 1 | ||||||||
Purchased Intangible Assets | 5.2 | ||||||||
Goodwill | 1.9 | ||||||||
Cutex Brands, LLC [Member] | Trade names, finite-lived [Member] | |||||||||
Estimated Fair Values of Net Assets Acquired | |||||||||
Total acquired intangible assets | 3.6 | ||||||||
Cutex Brands, LLC [Member] | Customer networks [Member] | |||||||||
Estimated Fair Values of Net Assets Acquired | |||||||||
Total acquired intangible assets | $ 1.6 | ||||||||
The Colomer Group Participations, S.L. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase Consideration | $ 664.5 | ||||||||
Estimated Fair Values of Net Assets Acquired | |||||||||
Cash and cash equivalents | 36.9 | ||||||||
Trade receivables | 83.9 | ||||||||
Inventories | 75.1 | ||||||||
Prepaid expenses and other | 31.3 | ||||||||
Property, plant and equipment | 96.7 | ||||||||
Total acquired intangible assets | 298.1 | ||||||||
Goodwill | 253.3 | ||||||||
Deferred tax asset - noncurrent | 53.1 | ||||||||
Other assets | 5.8 | ||||||||
Total assets acquired | 934.2 | ||||||||
Accounts payable | 48 | ||||||||
Accrued expenses and other | 65.6 | ||||||||
Long-term debt | 0.9 | ||||||||
Long-term pension and other benefit plan liabilities | 4.5 | ||||||||
Deferred tax liability | 125.4 | ||||||||
Other long-term liabilities | 25.3 | ||||||||
Total liabilities assumed | 269.7 | ||||||||
Total consideration | 664.5 | ||||||||
Measurement Period Adjustments | |||||||||
Goodwill | 0.9 | ||||||||
Goodwill, Period Increase (Decrease) | $ 3.3 | ||||||||
Weighted average remaining useful life | 20 years | ||||||||
The Colomer Group Participations, S.L. [Member] | Scenario, Previously Reported [Member] | |||||||||
Estimated Fair Values of Net Assets Acquired | |||||||||
Cash and cash equivalents | $ 36.9 | ||||||||
Trade receivables | 83.9 | ||||||||
Inventories | 75.1 | ||||||||
Prepaid expenses and other | 31.3 | ||||||||
Property, plant and equipment | 96.7 | ||||||||
Total acquired intangible assets | 292.7 | ||||||||
Goodwill | 255.7 | ||||||||
Deferred tax asset - noncurrent | 53.1 | ||||||||
Other assets | 1.9 | ||||||||
Total assets acquired | 927.3 | ||||||||
Accounts payable | 48 | ||||||||
Accrued expenses and other | 65.6 | ||||||||
Long-term debt | 0.9 | ||||||||
Long-term pension and other benefit plan liabilities | 4.5 | ||||||||
Deferred tax liability | 123.3 | ||||||||
Other long-term liabilities | 20.5 | ||||||||
Total liabilities assumed | 262.8 | ||||||||
Total consideration | $ 664.5 | ||||||||
Measurement Period Adjustments | |||||||||
Weighted average remaining useful life | 10 years | ||||||||
The Colomer Group Participations, S.L. [Member] | Scenario, Adjustment [Member] | |||||||||
Measurement Period Adjustments | |||||||||
Cash and cash equivalents | $ 0 | ||||||||
Trade receivables | 0 | ||||||||
Inventories | 0 | ||||||||
Prepaid expenses and other | 0 | ||||||||
Property, plant and equipment | 0 | ||||||||
Intangible assets | 5.4 | ||||||||
Deferred tax asset - noncurrent | 0 | ||||||||
Other assets | 3.9 | ||||||||
Total assets acquired | 6.9 | ||||||||
Accounts payable | 0 | ||||||||
Accrued expenses and other | 0 | ||||||||
Long-term debt | 0 | ||||||||
Long-term pension and other benefit plan liabilities | 0 | ||||||||
Deferred tax liability | 2.1 | ||||||||
Goodwill, Period Increase (Decrease) | (2.4) | ||||||||
Other long-term liabilities | 4.8 | ||||||||
Total liabilities assumed | 6.9 | ||||||||
Total consideration | $ 0 | ||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
BUSINESS COMBINATIONS - Acquisi
BUSINESS COMBINATIONS - Acquisition and Integration Costs - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ||||||||
Total acquisition and integration costs | $ 5.5 | $ 4.7 | $ 6 | $ 5.9 | $ 8 | $ 6.4 | $ 25.4 | |
The Colomer Group Participations, S.L. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition costs | 0 | 0.5 | 12.9 | |||||
Integration costs | 2.1 | 5.9 | 12.5 | |||||
Total acquisition and integration costs | $ 3.8 | $ 2.1 | $ 6.4 | $ 25.4 |
BUSINESS COMBINATIONS - Acquire
BUSINESS COMBINATIONS - Acquired Intangible Assets - 10K (Details) - USD ($) $ in Millions | Oct. 09, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
Customer relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 16 years | 17 years | |
The Colomer Group Participations, S.L. [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 20 years | ||
Total acquired intangible assets | $ 298.1 | ||
The Colomer Group Participations, S.L. [Member] | Trade names, finite-lived [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | 109.4 | ||
The Colomer Group Participations, S.L. [Member] | Customer relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | 62.4 | ||
The Colomer Group Participations, S.L. [Member] | License agreement [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 4.1 | ||
Weighted average useful life | 10 years | ||
The Colomer Group Participations, S.L. [Member] | Internally-developed IP [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 13.6 | ||
Weighted average useful life | 10 years | ||
The Colomer Group Participations, S.L. [Member] | Trade names, finite-lived [Member] | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets acquired | $ 108.6 | ||
The Colomer Group Participations, S.L. [Member] | Minimum [Member] | Trade names, finite-lived [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
The Colomer Group Participations, S.L. [Member] | Minimum [Member] | Customer relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 15 years | ||
The Colomer Group Participations, S.L. [Member] | Maximum [Member] | Trade names, finite-lived [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 20 years | ||
The Colomer Group Participations, S.L. [Member] | Maximum [Member] | Customer relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 20 years |
BUSINESS COMBINATIONS - Pro For
BUSINESS COMBINATIONS - Pro Forma Results - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | ||||||||||
Increase (decrease) in cost of sales | $ 171.5 | $ 161.3 | $ 325.4 | $ 303.6 | $ 667.8 | $ 668.3 | $ 545.1 | |||
Increase (decrease) in goodwill impairment | $ 9.7 | 9.7 | 0 | 0 | ||||||
Increase (decrease) in acquisition and integration costs | $ 5.5 | $ 4.7 | $ 6 | $ 5.9 | 8 | 6.4 | 25.4 | |||
The Colomer Group Participations, S.L. [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net sales | 1,908.9 | |||||||||
Income from continuing operations, before income taxes | 135.2 | |||||||||
Increase (decrease) in acquisition and integration costs | $ 3.8 | $ 2.1 | $ 6.4 | 25.4 | ||||||
The Colomer Group Participations, S.L. [Member] | Fair Value Adjustment to Inventory [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Increase (decrease) in inventory | 11.1 | |||||||||
Increase (decrease) in cost of sales | 8.5 | $ 11.1 | ||||||||
The Colomer Group Participations, S.L. [Member] | Fair Value Adjustment to Property, Plant and Equipment [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Increase (decrease) in property, plant and equipment, and acquired finite-lived intangible assets | 14.3 | |||||||||
The Colomer Group Participations, S.L. [Member] | Other Acquisition Adjustments [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Increase (decrease) in goodwill impairment | 9 | |||||||||
Increase (decrease) in acquisition and integration costs | 25.8 | |||||||||
Increase (decrease) in debt facility fees | 3.6 | |||||||||
Increase (decrease) in interest expense | $ 19.4 |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information - 10K (Details) - USD ($) $ in Millions | Apr. 21, 2015 | Oct. 09, 2013 | Apr. 21, 2019 |
CBBeauty Group [Member] | |||
Business Acquisition [Line Items] | |||
Purchase Consideration | $ 48.6 | ||
Percentage of consideration paid | 70.00% | ||
Cash consideration, initial payment | $ 34.6 | ||
Cash consideration, period to pay remaining payment | 4 years | ||
CBBeauty Group [Member] | Scenario, Forecast [Member] | |||
Business Acquisition [Line Items] | |||
Cash consideration, remaining payment | $ 14 | ||
The Colomer Group Participations, S.L. [Member] | |||
Business Acquisition [Line Items] | |||
Purchase Consideration | $ 664.5 |
RESTRUCTURING CHARGES - Restruc
RESTRUCTURING CHARGES - Restructuring and Related Charges - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and related charges | $ 0.5 | $ (3.6) | $ 1.8 | $ (3.1) | $ 10.5 | $ 21.3 | $ 3.5 | ||
Efficiency Program [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | 10.7 | $ 9.5 | 10.7 | 9.5 | |||||
Restructuring and related charges | 9.5 | 1.2 | 9.5 | ||||||
Total expected charges | 11.7 | 11.7 | |||||||
Efficiency Program [Member] | Restructuring Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Total expected charges | 10.1 | 10.1 | |||||||
Efficiency Program [Member] | Employee Severance and Other Personnel Benefits [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | 10 | 9.4 | 10 | 9.4 | |||||
Restructuring and related charges | 0.6 | ||||||||
Total expected charges | 10 | 9.5 | 10 | 9.5 | |||||
Efficiency Program [Member] | Other [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | 0.7 | 0.1 | 0.7 | 0.1 | |||||
Restructuring and related charges | 0.6 | ||||||||
Total expected charges | $ 1.7 | 0.6 | $ 1.7 | 0.6 | |||||
Integration Program [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | (1.8) | (1.8) | 20.1 | ||||||
Restructuring and related charges | (1.8) | 20.1 | |||||||
Total expected charges | 18.3 | 18.3 | |||||||
Integration Program [Member] | Restructuring Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | (2.8) | (2.8) | 18.9 | ||||||
Total expected charges | 16.1 | 16.1 | |||||||
Integration Program [Member] | Inventory Write-offs and Other Manufacturing-Related Costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | 0.7 | 0.7 | 0.6 | ||||||
Total expected charges | 1.3 | 1.3 | |||||||
Integration Program [Member] | Other Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | 0.3 | 0.3 | 0.6 | ||||||
Total expected charges | 0.9 | 0.9 | |||||||
Integration Program [Member] | Employee Severance and Other Personnel Benefits [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | (3.4) | (3.4) | 17.3 | ||||||
Total expected charges | 13.9 | 13.9 | |||||||
Integration Program [Member] | Other [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | 0.6 | 0.6 | 1.6 | ||||||
Total expected charges | 2.2 | 2.2 | |||||||
December 2013 Program [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | 0 | 0 | 18.9 | ||||||
Restructuring and related charges | $ 13.5 | $ 20 | |||||||
Total expected charges | 18.9 | 18.9 | |||||||
December 2013 Program [Member] | Restructuring Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | 0 | 0 | 8.9 | ||||||
Total expected charges | 8.9 | 8.9 | |||||||
December 2013 Program [Member] | Allowances and Returns [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | 0 | 0 | 6.5 | ||||||
Total expected charges | 6.5 | 6.5 | |||||||
December 2013 Program [Member] | Inventory Write-offs and Other Manufacturing-Related Costs [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | 0 | 0 | 3.1 | ||||||
Total expected charges | 3.1 | 3.1 | |||||||
December 2013 Program [Member] | Other Charges [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | 0 | 0 | 0.4 | ||||||
Total expected charges | 0.4 | 0.4 | |||||||
December 2013 Program [Member] | Employee Severance and Other Personnel Benefits [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | 0 | 0 | 8.6 | ||||||
Total expected charges | 8.6 | 8.6 | |||||||
December 2013 Program [Member] | Other [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Charges incurred | 0 | 0 | $ 0.3 | ||||||
Total expected charges | $ 0.3 | $ 0.3 |
RESTRUCTURING CHARGES - Restr98
RESTRUCTURING CHARGES - Restructuring Reserve - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Reserve [Roll Forward] | |||||||||
Balance Beginning of Year | $ 13.7 | $ 11.8 | $ 14 | $ 14 | $ 13.7 | ||||
(Income) Expense, Net | 1.8 | 10.5 | 23.4 | ||||||
Foreign Currency Translation | 0 | (0.3) | (0.5) | ||||||
Cash utilized, net | (3.7) | (12.4) | (22.6) | ||||||
Non-cash utilized, net | (0.1) | 0 | 0 | ||||||
Balance End of Year | $ 9.8 | $ 11.8 | 9.8 | 11.8 | 14 | $ 13.7 | |||
Gain on sale of property, plant and equipment for 2014 other immaterial actions | (2.6) | ||||||||
Portion of restructuring benefits recorded within (loss) income from discontinued operations | 0.5 | ||||||||
Restructuring and related charges | 0.5 | $ (3.6) | 1.8 | (3.1) | 10.5 | 21.3 | 3.5 | ||
Other [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Gain on sale of property, plant and equipment for 2014 other immaterial actions | 2.6 | ||||||||
Efficiency Program [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Cash utilized, net | (1.6) | (2.8) | |||||||
Restructuring and related charges | 9.5 | 1.2 | 9.5 | ||||||
Efficiency Program [Member] | Employee Severance and Other Personnel Benefits [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Balance Beginning of Year | 6.6 | 0 | 0 | ||||||
(Income) Expense, Net | 0.6 | 9.4 | |||||||
Foreign Currency Translation | 0 | 0 | |||||||
Cash utilized, net | (1.2) | (2.8) | |||||||
Non-cash utilized, net | 0 | 0 | |||||||
Balance End of Year | 6 | 6.6 | 6 | 6.6 | 0 | ||||
Restructuring and related charges | 0.6 | ||||||||
Efficiency Program [Member] | Other [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Balance Beginning of Year | 0.1 | 0 | 0 | ||||||
(Income) Expense, Net | 0.6 | 0.1 | |||||||
Foreign Currency Translation | 0 | 0 | |||||||
Cash utilized, net | (0.4) | 0 | |||||||
Non-cash utilized, net | (0.1) | 0 | |||||||
Balance End of Year | 0.2 | 0.1 | 0.2 | 0.1 | 0 | ||||
Restructuring and related charges | 0.6 | ||||||||
Integration Program [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Cash utilized, net | (6.7) | (9.6) | |||||||
Restructuring and related charges | (1.8) | 20.1 | |||||||
Integration Program [Member] | Employee Severance and Other Personnel Benefits [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Balance Beginning of Year | 0 | 0.8 | 9.6 | 9.6 | 0 | ||||
(Income) Expense, Net | 0 | (3.4) | 17.3 | ||||||
Foreign Currency Translation | 0 | (0.2) | (0.1) | ||||||
Cash utilized, net | (0.8) | (5.2) | (7.6) | ||||||
Non-cash utilized, net | 0 | 0 | 0 | ||||||
Balance End of Year | 0 | 0.8 | 0 | 0.8 | 9.6 | 0 | |||
Integration Program [Member] | Other [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Balance Beginning of Year | 0 | 0.1 | 0.1 | 0.1 | 0 | ||||
(Income) Expense, Net | 0 | 0.6 | 1.6 | ||||||
Foreign Currency Translation | 0 | 0 | 0 | ||||||
Cash utilized, net | 0 | (0.6) | (1.2) | ||||||
Non-cash utilized, net | 0 | 0 | (0.3) | ||||||
Balance End of Year | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0 | |||
December 2013 Program [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Cash utilized, net | 0 | (15.5) | (0.1) | ||||||
Restructuring and related charges | 13.5 | 20 | |||||||
December 2013 Program [Member] | Employee Severance and Other Personnel Benefits [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Balance Beginning of Year | 9 | 1.2 | 1.2 | 1.2 | 9 | ||||
(Income) Expense, Net | 0 | 0 | (0.5) | ||||||
Foreign Currency Translation | 0 | 0 | (0.2) | ||||||
Cash utilized, net | 0 | 0 | (7.3) | ||||||
Non-cash utilized, net | 0 | 0 | 0.2 | ||||||
Balance End of Year | 1.2 | 1.2 | 1.2 | 1.2 | 1.2 | 9 | |||
December 2013 Program [Member] | Other [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Balance Beginning of Year | 0.5 | 0 | 0 | 0 | 0.5 | ||||
(Income) Expense, Net | 0 | 0 | (0.2) | ||||||
Foreign Currency Translation | 0 | 0 | 0 | ||||||
Cash utilized, net | 0 | 0 | (0.3) | ||||||
Non-cash utilized, net | 0 | 0 | 0 | ||||||
Balance End of Year | 0 | 0 | 0 | 0 | 0 | 0.5 | |||
Other Immaterial Actions [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Restructuring and related charges | 3.9 | 2.7 | |||||||
Other Immaterial Actions [Member] | Employee Severance and Other Personnel Benefits [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Balance Beginning of Year | 2.7 | 2.3 | 3.1 | 3.1 | 2.7 | ||||
(Income) Expense, Net | 0.3 | 1.7 | 5 | ||||||
Foreign Currency Translation | 0 | (0.1) | (0.2) | ||||||
Cash utilized, net | (1) | (2.4) | (4.5) | ||||||
Non-cash utilized, net | 0 | 0 | 0.1 | ||||||
Balance End of Year | 1.6 | 2.3 | 1.6 | 2.3 | 3.1 | 2.7 | |||
Restructuring and related charges | 5.3 | ||||||||
Other Immaterial Actions [Member] | Other [Member] | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Balance Beginning of Year | $ 1.5 | 0.7 | $ 0 | 0 | 1.5 | ||||
(Income) Expense, Net | 0.3 | 2.1 | 0.2 | ||||||
Foreign Currency Translation | 0 | 0 | 0 | ||||||
Cash utilized, net | (0.3) | (1.4) | (1.7) | ||||||
Non-cash utilized, net | 0 | 0 | 0 | ||||||
Balance End of Year | $ 0.7 | $ 0.7 | $ 0.7 | $ 0.7 | $ 0 | $ 1.5 |
RESTRUCTURING CHARGES - Additio
RESTRUCTURING CHARGES - Additional Information - 10K (Details) $ in Millions | Dec. 30, 2013job_position | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2014USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)job_position | Dec. 31, 2013USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and related charges | $ 0.5 | $ (3.6) | $ 1.8 | $ (3.1) | $ 10.5 | $ 21.3 | $ 3.5 | |||
Payments for restructuring | 3.7 | 12.4 | 22.6 | |||||||
Gain (loss) on sale of property, plant and equipment | (2.6) | |||||||||
Restructuring reserve within accrued expenses and other | 9.8 | $ 11.8 | 9.8 | 11.8 | 13.7 | |||||
Accrued Expenses and Other [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring reserve within accrued expenses and other | 9.8 | 11.8 | 9.8 | 11.8 | 13.7 | |||||
Other Long-term Liabilities [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring reserve within other long-term liabilities | 0.3 | |||||||||
Other [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Gain (loss) on sale of property, plant and equipment | 2.6 | |||||||||
Efficiency Program [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and related charges | 9.5 | 1.2 | 9.5 | |||||||
Expected cash payments | 12 | 10.3 | 12 | 10.3 | ||||||
Expected cash payments, capital expenditures | 0.2 | 0.2 | 0.2 | 0.2 | ||||||
Payments for restructuring | 1.6 | 2.8 | ||||||||
Expected restructuring and related charges | 11.7 | 11.7 | ||||||||
Efficiency Program [Member] | Restructuring Charges [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Payments for restructuring | 5.8 | |||||||||
Expected restructuring and related charges | 10.1 | 10.1 | ||||||||
Efficiency Program [Member] | Consumer Segment [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and related charges | 0.5 | 6 | ||||||||
Expected restructuring and related charges | 6.9 | 6.1 | 6.9 | 6.1 | ||||||
Efficiency Program [Member] | Professional [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and related charges | 0.6 | 3.2 | ||||||||
Expected restructuring and related charges | 4.4 | 3.7 | 4.4 | 3.7 | ||||||
Efficiency Program [Member] | Employee Severance and Other Personnel Benefits [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and related charges | 0.6 | |||||||||
Payments for restructuring | 1.2 | 2.8 | ||||||||
Expected restructuring and related charges | 10 | 9.5 | 10 | 9.5 | ||||||
Efficiency Program [Member] | Other [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and related charges | 0.6 | |||||||||
Payments for restructuring | 0.4 | 0 | ||||||||
Expected restructuring and related charges | $ 1.7 | 0.6 | 1.7 | 0.6 | ||||||
Integration Program [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and related charges | (1.8) | 20.1 | ||||||||
Expected cash payments | 1.8 | 1.8 | ||||||||
Payments for restructuring | 6.7 | 9.6 | ||||||||
Restructuring, capital expenditures and related non-restructuring costs | 45 | |||||||||
Integration costs | 2.1 | 5.9 | 12.5 | |||||||
Integration-related capital expenditures | 5.3 | |||||||||
Payments for integration-related capital expenditures | 0.9 | 4.4 | ||||||||
Expected restructuring and related charges | 18.3 | 18.3 | ||||||||
Integration Program [Member] | Restructuring Charges [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Expected restructuring and related charges | 16.1 | 16.1 | ||||||||
Integration Program [Member] | Consumer Segment [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and related charges | 3.1 | 10.2 | ||||||||
Integration Program [Member] | Professional [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and related charges | 1.3 | 9.9 | ||||||||
Integration Program [Member] | Employee Severance and Other Personnel Benefits [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Payments for restructuring | 0.8 | 5.2 | 7.6 | |||||||
Expected restructuring and related charges | 13.9 | 13.9 | ||||||||
Integration Program [Member] | Other [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Payments for restructuring | 0 | 0.6 | 1.2 | |||||||
Expected restructuring and related charges | 2.2 | 2.2 | ||||||||
December 2013 Program [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and related charges | $ 13.5 | 20 | ||||||||
Expected cash payments | 17 | 17 | ||||||||
Payments for restructuring | 0 | $ 15.5 | $ 0.1 | |||||||
Expected restructuring and related charges | 18.9 | 18.9 | ||||||||
Number of positions eliminated | job_position | 1,100 | 1,100 | ||||||||
Number of positions eliminated related to employees retained indirectly through a third party (job positions) | job_position | 940 | |||||||||
December 2013 Program [Member] | Restructuring Charges [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Expected restructuring and related charges | 8.9 | 8.9 | ||||||||
December 2013 Program [Member] | Employee Severance and Other Personnel Benefits [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Payments for restructuring | 0 | 0 | $ 7.3 | |||||||
Expected restructuring and related charges | 8.6 | 8.6 | ||||||||
December 2013 Program [Member] | Other [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Payments for restructuring | 0 | 0 | 0.3 | |||||||
Expected restructuring and related charges | $ 0.3 | 0.3 | ||||||||
Other Immaterial Actions [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and related charges | 3.9 | 2.7 | ||||||||
Other Immaterial Actions [Member] | Employee Severance and Other Personnel Benefits [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring and related charges | 5.3 | |||||||||
Payments for restructuring | 1 | 2.4 | 4.5 | |||||||
Other Immaterial Actions [Member] | Other [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Payments for restructuring | $ 0.3 | $ 1.4 | $ 1.7 |
DISCONTINUED OPERATIONS - 10100
DISCONTINUED OPERATIONS - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Restructuring charges and other, net | $ 0.5 | $ (3.6) | $ 1.8 | $ (3.1) | $ 10.5 | $ 21.3 | $ 3.5 | |||||||
Income Statement Disclosures [Abstract] | ||||||||||||||
(Loss) income from discontinued operations, net of taxes | (2.5) | $ (1.4) | $ (1.7) | 0 | $ (0.1) | $ 0.4 | $ 0.4 | $ 3.7 | $ (3.2) | (2.1) | (0.1) | (3.2) | 1.3 | (30.4) |
Operations in China [Member] | ||||||||||||||
Income Statement Disclosures [Abstract] | ||||||||||||||
Net sales | 0 | 0 | 0 | 0 | 0 | 2.6 | 13.8 | |||||||
(Loss) income from discontinued operations, before taxes | (2.5) | 0 | (2.1) | (0.1) | (3.2) | 1.5 | (30.8) | |||||||
Provision for income taxes | 0 | 0 | 0 | 0 | 0 | 0.2 | (0.4) | |||||||
(Loss) income from discontinued operations, net of taxes | (2.5) | $ 0 | (2.1) | $ (0.1) | (3.2) | 1.3 | (30.4) | |||||||
Balance Sheet Disclosures [Abstract] | ||||||||||||||
Cash and cash equivalents | 1.8 | 2 | 2.4 | 1.8 | 2 | 2.4 | ||||||||
Trade receivables, net | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | ||||||||
Total current assets | 2 | 2.2 | 2.6 | 2 | 2.2 | 2.6 | ||||||||
Total assets | 2 | 2.2 | 2.6 | 2 | 2.2 | 2.6 | ||||||||
Accounts payable | 0.6 | 0.7 | 0.2 | 0.6 | 0.7 | 0.2 | ||||||||
Accrued expenses and other | 3.5 | 3.6 | 3.9 | 3.5 | 3.6 | 3.9 | ||||||||
Total current liabilities | 4.1 | 4.3 | 4.1 | 4.1 | 4.3 | 4.1 | ||||||||
Total liabilities | $ 4.1 | $ 4.3 | $ 4.1 | $ 4.1 | $ 4.3 | $ 4.1 | ||||||||
December 2013 Program [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Restructuring charges and other, net | $ 13.5 | $ 20 |
INVENTORIES - Components of Inv
INVENTORIES - Components of Inventories - 10K (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventories [Abstract] | ||||
Raw materials and supplies | $ 61.9 | $ 58.2 | $ 47.2 | |
Work-in-process | 12 | 8.3 | 9 | |
Finished goods | 135.7 | 117.3 | 100.4 | |
Inventories | $ 209.6 | $ 183.8 | [1] | $ 156.6 |
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
PREPAID EXPENSES AND OTHER -102
PREPAID EXPENSES AND OTHER - 10K (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Prepaid Expenses and Other [Abstract] | ||||
Prepaid expenses | $ 18.2 | $ 17.3 | ||
Other | 35.1 | 27.3 | ||
Prepaid expenses and other | $ 74.3 | $ 53.3 | [1] | $ 44.6 |
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
PROPERTY, PLANT AND EQUIPMEN103
PROPERTY, PLANT AND EQUIPMENT - 10K (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2016 | ||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $ 487 | $ 462.5 | |||
Accumulated depreciation and amortization | (271.7) | (250.5) | $ (286.3) | ||
Property, plant and equipment, net | 215.3 | [1] | 212 | $ 216.8 | |
Depreciation | 37 | 36.9 | $ 25.2 | ||
Land and improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 10.7 | 11.7 | |||
Buildings and improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 84.7 | 83.9 | |||
Machinery, equipment and capital leases [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 213 | 198.7 | |||
Office furniture, fixtures and capitalized software [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 118.1 | 104.2 | |||
Leasehold improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 29 | 28.1 | |||
Construction-in-progress [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $ 31.5 | $ 35.9 | |||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
GOODWILL AND INTANGIBLE ASSE104
GOODWILL AND INTANGIBLE ASSETS, NET - Changes in Goodwill by Segment - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Goodwill [Roll Forward] | ||||||||
Beginning Balance | $ 469.7 | [1] | $ 464.1 | $ 472.3 | ||||
Goodwill acquired | 8.6 | 21.4 | ||||||
Foreign currency translation adjustment | (1.6) | (6.1) | (8.2) | |||||
Goodwill impairment charge | $ (9.7) | (9.7) | 0 | $ 0 | ||||
Ending Balance | 469.7 | [1] | 476.7 | 469.7 | [1] | 464.1 | 472.3 | |
Global Color Brands [Member] | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill impairment charge | $ (9.7) | |||||||
Weighted average cost of capital | 13.00% | |||||||
Perpetual growth rate | 2.00% | |||||||
Operating Segments [Member] | Consumer [Member] | ||||||||
Goodwill [Roll Forward] | ||||||||
Beginning Balance | 210.1 | 217.9 | 217.9 | |||||
Goodwill acquired | 8.6 | 1.9 | ||||||
Foreign currency translation adjustment | 0 | 0 | 0 | |||||
Goodwill impairment charge | (9.7) | |||||||
Ending Balance | $ 210.1 | 218.7 | 210.1 | 217.9 | 217.9 | |||
Operating Segments [Member] | Consumer [Member] | Cutex Brands, LLC [Member] | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill acquired | 1.9 | |||||||
Operating Segments [Member] | Professional [Member] | ||||||||
Goodwill [Roll Forward] | ||||||||
Beginning Balance | 240.7 | 246.2 | 254.4 | |||||
Goodwill acquired | 0 | 0 | ||||||
Foreign currency translation adjustment | 0.2 | (5.5) | (8.2) | |||||
Goodwill impairment charge | 0 | |||||||
Ending Balance | 240.7 | 240.9 | 240.7 | 246.2 | 254.4 | |||
Operating Segments [Member] | Other [Member] | ||||||||
Goodwill [Roll Forward] | ||||||||
Beginning Balance | 18.9 | 0 | 0 | |||||
Goodwill acquired | 0 | 19.5 | ||||||
Foreign currency translation adjustment | (1.8) | (0.6) | 0 | |||||
Goodwill impairment charge | 0 | |||||||
Ending Balance | $ 18.9 | $ 17.1 | 18.9 | $ 0 | $ 0 | |||
Operating Segments [Member] | Other [Member] | CBBeauty Group [Member] | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill acquired | $ 19.5 | |||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
GOODWILL AND INTANGIBLE ASSE105
GOODWILL AND INTANGIBLE ASSETS, NET - Summary of Intangible Assets - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 300.7 | $ 300.7 | $ 284.1 | $ 265.8 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (72.8) | (72.8) | (61.1) | (39.3) | ||||
Total | 227.9 | 227.9 | 223 | 226.5 | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Indefinite-Lived Intangible Assets, Gross Carrying Amount | 101 | 101 | 95 | 101.3 | ||||
Intangible Assets, Gross Carrying Amount | 401.7 | 401.7 | 379.1 | 367.1 | ||||
Intangible Assets, Net Carrying Amount | 328.9 | 328.9 | 318 | [1] | 327.8 | |||
Amortization of Intangible Assets | 6.1 | $ 5.3 | 12 | $ 10.4 | 22.4 | 21.3 | $ 10.4 | |
Trade names, finite-lived [Member] | ||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Indefinite-Lived Intangible Assets, Gross Carrying Amount | 101 | 101 | 95 | 101.3 | ||||
Trademarks and Licenses [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-Lived Intangible Assets, Gross Carrying Amount | 147.2 | 147.2 | 145 | 140.5 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (42.3) | (42.3) | (36) | (23.5) | ||||
Total | 104.9 | 104.9 | $ 109 | $ 117 | ||||
Weighted Average Useful Life | 15 years | 14 years | ||||||
Customer relationships [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-Lived Intangible Assets, Gross Carrying Amount | 132.5 | 132.5 | $ 118.8 | $ 109.1 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (24.4) | (24.4) | (20.5) | (13.4) | ||||
Total | 108.1 | 108.1 | $ 98.3 | $ 95.7 | ||||
Weighted Average Useful Life | 16 years | 17 years | ||||||
Patents and Internally-Developed IP [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-Lived Intangible Assets, Gross Carrying Amount | 17.9 | 17.9 | $ 16.8 | $ 16.2 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (5.2) | (5.2) | (4) | (2.4) | ||||
Total | 12.7 | 12.7 | $ 12.8 | $ 13.8 | ||||
Weighted Average Useful Life | 10 years | 10 years | ||||||
Distribution rights [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-Lived Intangible Assets, Gross Carrying Amount | 3.1 | 3.1 | $ 3.5 | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | (0.9) | (0.9) | (0.6) | |||||
Total | $ 2.2 | $ 2.2 | $ 2.9 | |||||
Weighted Average Useful Life | 5 years | |||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
GOODWILL AND INTANGIBLE ASSE106
GOODWILL AND INTANGIBLE ASSETS, NET - Estimated Future Amortization Expense - 10K (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets, Net [Abstract] | |||
2,016 | $ 22.7 | ||
2,017 | $ 23.6 | 22.3 | |
2,018 | 22.7 | 21.4 | |
2,019 | 20.1 | 18.9 | |
2,020 | 19.5 | 18.2 | |
Thereafter | 130.5 | 119.5 | |
Total | $ 227.9 | $ 223 | $ 226.5 |
ACCRUED EXPENSES AND OTHER - Co
ACCRUED EXPENSES AND OTHER - Components of Accrued Expenses and Other - 10K (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accrued Expenses and Other [Abstract] | ||||
Sales returns and allowances | $ 50.8 | $ 61.1 | $ 70.6 | |
Compensation and related benefits | 49.4 | 75.6 | 66.8 | |
Advertising and promotional costs | 37 | 38.4 | 44.9 | |
Taxes | 23.4 | 20.8 | 23.4 | |
Interest | 12.3 | 12.4 | 11 | |
Restructuring reserve | 9.8 | 11.8 | 13.7 | |
Other | 50.5 | 52.3 | 42.9 | |
Accrued expenses and other | $ 233.2 | $ 272.4 | [1] | $ 273.3 |
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
SHORT TERM BORROWINGS - 10K (De
SHORT TERM BORROWINGS - 10K (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Short Term Borrowings [Abstract] | ||||
Short-term borrowings | $ 14.1 | $ 11.3 | [1] | $ 6.6 |
Weighted average interest rate | 4.90% | 6.20% | ||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
LONG-TERM DEBT - Components of
LONG-TERM DEBT - Components of Long-Term Debt - 10K (Details) - USD ($) $ in Millions | Apr. 09, 2016 | Feb. 29, 2016 | Mar. 12, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2014 | Feb. 08, 2013 | |
Debt Instrument [Line Items] | |||||||||
Total long-term debt, net of discounts | $ 1,813.7 | $ 1,790.4 | $ 1,863.9 | ||||||
Less current portion | (30) | [1] | (6.8) | (31.5) | |||||
Long-term debt | 1,783.7 | [1] | 1,783.6 | 1,832.4 | |||||
Long-term Debt, Other Disclosures [Abstract] | |||||||||
Scheduled principal payments | 30 | ||||||||
Amended Term Loan Facility [Member] | |||||||||
Long-term Debt, Other Disclosures [Abstract] | |||||||||
Repayment of debt | $ 23.2 | $ 24.6 | |||||||
Acquisition Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan facility | 662.1 | 648.5 | |||||||
Long-term Debt, Other Disclosures [Abstract] | |||||||||
Repayment of debt | 11.7 | $ 12.5 | |||||||
Scheduled principal payments | 6.8 | 1.8 | 6.8 | 6.9 | |||||
2011 Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan facility | 658.5 | 648.2 | |||||||
Long-term Debt, Other Disclosures [Abstract] | |||||||||
Repayment of debt | $ 11.5 | $ 12.1 | |||||||
Amended Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility | 0 | 0 | 0 | ||||||
5 3/4% Senior Notes Due 2021 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | $ 492.5 | $ 493.1 | $ 500 | ||||||
Long-term Debt, Other Disclosures [Abstract] | |||||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | 5.75% | |||||
Spanish Government Loan Due 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan facility | $ 0.6 | $ 0.6 | $ 0.7 | ||||||
Amended Term Loan Facility [Member] | Acquisition Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan facility | 672.5 | 691.6 | |||||||
Amended Term Loan Facility [Member] | 2011 Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan facility | 660.6 | $ 671.6 | |||||||
Scenario, Forecast [Member] | 2011 Term Loan [Member] | |||||||||
Long-term Debt, Other Disclosures [Abstract] | |||||||||
Repayment of debt | $ 23.2 | ||||||||
Scenario, Forecast [Member] | Amended Term Loan Facility [Member] | |||||||||
Long-term Debt, Other Disclosures [Abstract] | |||||||||
Repayment of debt | 23.2 | ||||||||
Previously Reported [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total long-term debt, net of discounts | 1,833.7 | ||||||||
Long-term debt | 1,803.7 | ||||||||
Previously Reported [Member] | 5 3/4% Senior Notes Due 2021 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | $ 500 | ||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
LONG-TERM DEBT - Interest Rates
LONG-TERM DEBT - Interest Rates - 10K (Details) | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Amended Term Loan Facility [Member] | Greater than $92,000,000 [Member] | Adjustable Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 0.50% | ||
Amended Term Loan Facility [Member] | Greater than $92,000,000 [Member] | Eurodollar [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 1.50% | ||
Amended Term Loan Facility [Member] | Less than $92,000,000 but greater than $46,000,000 [Member] | Adjustable Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 0.75% | ||
Amended Term Loan Facility [Member] | Less than $92,000,000 but greater than $46,000,000 [Member] | Eurodollar [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 1.75% | ||
Amended Term Loan Facility [Member] | Less Than $46,000,000 [Member] | Adjustable Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 1.00% | ||
Amended Term Loan Facility [Member] | Less Than $46,000,000 [Member] | Eurodollar [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 2.00% | ||
2011 Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 2.50% | 3.00% | |
2011 Term Loan [Member] | Adjustable Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 1.50% | ||
2011 Term Loan [Member] | Adjustable Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 1.75% | ||
2011 Term Loan [Member] | Eurodollar [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 2.50% | ||
2011 Term Loan [Member] | Eurodollar [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 0.75% | ||
Acquisition Term Loan [Member] | Adjustable Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 2.00% | ||
Acquisition Term Loan [Member] | Adjustable Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 2.00% | ||
Acquisition Term Loan [Member] | Eurodollar [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 3.00% | ||
Acquisition Term Loan [Member] | Eurodollar [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 1.00% |
LONG-TERM DEBT - Debt Instrumen
LONG-TERM DEBT - Debt Instrument Redemption - 10K (Details) - 5 3/4% Senior Notes Due 2021 [Member] | 12 Months Ended |
Dec. 31, 2014 | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage | 101.00% |
Debt Instrument, Redemption, Period One [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage | 104.313% |
Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage | 102.875% |
Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage | 101.438% |
Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage | 100.00% |
LONG-TERM DEBT - Long-Term Debt
LONG-TERM DEBT - Long-Term Debt Maturities - 10K (Details) - USD ($) $ in Millions | Apr. 09, 2016 | Feb. 29, 2016 | Mar. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | |||||||
2,016 | $ 30 | ||||||
2,017 | 658.3 | ||||||
2,018 | 6.9 | ||||||
2,019 | 641.8 | ||||||
2,020 | 0.1 | ||||||
Thereafter | 500.1 | ||||||
Total long-term debt | 1,837.2 | ||||||
Discounts | (3.5) | ||||||
Total long-term debt, net of discounts | $ 1,790.4 | 1,813.7 | $ 1,863.9 | ||||
2011 Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total long-term debt | $ 651.4 | $ 662.9 | $ 651.4 | 662.9 | |||
Repayment of debt | $ 11.5 | $ 12.1 | |||||
5 3/4% Senior Notes Due 2021 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total long-term debt | 500 | $ 500 | |||||
Scenario, Forecast [Member] | 2011 Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repayment of debt | $ 23.2 | ||||||
Previously Reported [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total long-term debt, net of discounts | $ 1,833.7 |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information - 10K (Details) $ / shares in Units, $ in Millions | Feb. 29, 2016USD ($) | Mar. 12, 2015USD ($) | May 01, 2014USD ($) | Feb. 08, 2013USD ($) | Mar. 31, 2015USD ($) | Feb. 28, 2014USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2015USD ($) | [1] | Dec. 31, 2015USD ($)Payment$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($) | Dec. 31, 2014USD ($)$ / shares | Dec. 22, 2013 | Oct. 08, 2013$ / shares | Sep. 07, 2013 | Sep. 06, 2013 |
Debt Instrument [Line Items] | |||||||||||||||||||
Aggregate principal amount outstanding | $ 1,837.2 | ||||||||||||||||||
Scheduled principal payments | 30 | ||||||||||||||||||
Debt Issuance Cost | 0 | $ 1.8 | $ 48.8 | ||||||||||||||||
Gain (loss) on early extinguishment of debt | $ (1.9) | 0 | (2) | $ (29.7) | |||||||||||||||
Standby and trade letters of credit for various corporate purposes | $ 8.3 | $ 8.8 | $ 9 | $ 9 | |||||||||||||||
Repayments of long-term debt | $ 15.1 | $ 15.9 | |||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 | $ 1 | $ 1 | $ 0.01 | ||||||||||||||
Amended Term Loan Facility [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Repayment of debt | $ 23.2 | $ 24.6 | |||||||||||||||||
Percentage of excess cash flow, as defined | 50.00% | 50.00% | 50.00% | ||||||||||||||||
Required Prepayment, Number Of Days Following Last Day Of Fiscal Year | 100 days | ||||||||||||||||||
Required Prepayment of Debt | $ 23.2 | ||||||||||||||||||
Debt Instrument, Periodic Payment, Principal | 6.9 | ||||||||||||||||||
Debt Instrument, Periodic Payment, Principal, After Giving Effect to Prepayment | $ 6.8 | ||||||||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | ||||||||||||||||||
Line of Credit Facility, Fronting Fee Percentage | 0.25% | ||||||||||||||||||
Line of Credit Facility, Administrative Fee Percentage | 0.25% | ||||||||||||||||||
Letter Of Credit Fronting Fee | 0.25% | ||||||||||||||||||
Line Of Credit Facility Additional Borrowing Capacity | $ 300 | ||||||||||||||||||
Leverage Ratio | 3.50 | ||||||||||||||||||
Debt Instrument, Periodic Payment, Principal, Percentage | 0.25% | ||||||||||||||||||
2011 Term Loan [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Repayment of debt | $ 11.5 | $ 12.1 | |||||||||||||||||
Aggregate principal amount outstanding | 651.4 | $ 662.9 | 662.9 | $ 651.4 | $ 662.9 | ||||||||||||||
Maximum borrowings available under credit facility | $ 675 | 675 | |||||||||||||||||
Term loan facility | 648.2 | 658.5 | |||||||||||||||||
Basis spread on variable interest rate | 2.50% | 3.00% | |||||||||||||||||
Debt Instrument, Variable Rate Floor | 0.75% | 1.00% | |||||||||||||||||
Debt Instrument Basis Spread On Alternative Base Rate | 1.50% | 2.00% | |||||||||||||||||
Floor on alternate base rate | 1.75% | ||||||||||||||||||
Repayments of long-term debt | $ 113 | 0 | $ 0 | $ 113 | |||||||||||||||
2011 Term Loan [Member] | Swingline Loan [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maximum borrowings available under credit facility | $ 30 | ||||||||||||||||||
2011 Term Loan [Member] | Letter of Credit [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maximum borrowings available under credit facility | 60 | ||||||||||||||||||
2011 Term Loan [Member] | February 2014 Term Loan Amendment [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt Issuance Cost | 1.1 | ||||||||||||||||||
Write off of Deferred Debt Issuance Cost | 0.8 | ||||||||||||||||||
Gain (loss) on early extinguishment of debt | (1.9) | ||||||||||||||||||
Acquisition Term Loan [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Repayment of debt | 11.7 | 12.5 | |||||||||||||||||
Aggregate principal amount outstanding | 658.6 | 673.7 | |||||||||||||||||
Scheduled principal payments | $ 6.8 | $ 1.8 | $ 1.8 | 6.8 | 6.9 | $ 6.9 | |||||||||||||
Quarterly principal amortization payments | 1.7 | ||||||||||||||||||
Maximum borrowings available under credit facility | $ 700 | 700 | |||||||||||||||||
Term loan facility | 648.5 | 662.1 | |||||||||||||||||
Leverage Ratio | 4.25 | ||||||||||||||||||
Repayments of long-term debt | 19.3 | $ 7 | 0 | ||||||||||||||||
Amended Revolving Credit Facility [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maximum borrowings available under credit facility | $ 175 | 175 | 175 | ||||||||||||||||
Line Of Credit Facility Additional Borrowing Capacity | 100 | ||||||||||||||||||
Difference Between Borrowing Base and Amounts Outstanding | $ 20 | ||||||||||||||||||
Consolidated Fixed Charge Coverage Ratio | 100.00% | ||||||||||||||||||
Cash Proceeds From Sales of Term Loan First Lien Collateral, Limit | $ 10 | ||||||||||||||||||
Cash Proceeds From Sales of Term Loan First Lien Collateral, Carryover | 25 | ||||||||||||||||||
Cash Proceeds From Sales of Term Loan First Lien Collateral, Additional Carryover | $ 25 | ||||||||||||||||||
Reinvestment Right Period | 365 days | ||||||||||||||||||
Reinvestment Right Period, if Company Entered into a Legally Binding Commitment Before Expiration of Initial Reinvestment Right Period | 545 days | ||||||||||||||||||
Percentage Of Voting Capital Stock | 66.00% | ||||||||||||||||||
Percentage Of Non Voting Capital Stock | 100.00% | ||||||||||||||||||
Maximum Amount Of Restricted Payments To Affiliates | $ 10 | ||||||||||||||||||
Aggregate Amount Of Other Restricted Payments | 35 | ||||||||||||||||||
Maximum Consideration For Affiliate Transactions | 10 | ||||||||||||||||||
Maximum Aggregate Payments Related To Affiliates | $ 20 | ||||||||||||||||||
Aggregate Principal Amount Default | $ 50 | ||||||||||||||||||
Capital Stock Ownership | 100.00% | ||||||||||||||||||
Percentage voting power ownership by affiliate | 35.00% | ||||||||||||||||||
Standby and trade letters of credit for various corporate purposes | 8.3 | 8.8 | |||||||||||||||||
Remaining borrowing capacity | 166.7 | 166.2 | |||||||||||||||||
Amended And Restated Senior Subordinated Term Loan Due Two Thousand And Fourteen [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Write off of Deferred Debt Issuance Cost | $ 0.1 | ||||||||||||||||||
Repayments of Subordinated Debt | $ 58.4 | ||||||||||||||||||
5 3/4% Senior Notes Due 2021 [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Aggregate principal amount outstanding | $ 500 | 500 | |||||||||||||||||
Maximum borrowings available under credit facility | $ 500 | ||||||||||||||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | ||||||||||||||
Face amount of debt | $ 500 | ||||||||||||||||||
Proceeds from Issuance of Senior Long-term Debt | 491.2 | ||||||||||||||||||
Financing Costs | $ 19.4 | ||||||||||||||||||
Redemption percentage | 101.00% | ||||||||||||||||||
Days to file registration statement | 150 days | ||||||||||||||||||
Days for registration to become effective | 210 days | ||||||||||||||||||
Days to affect an exchange offer | 270 days | ||||||||||||||||||
Days following failure | 90 days | ||||||||||||||||||
Additional Interest | 0.25% | ||||||||||||||||||
Additional interest after 90 days | 0.25% | ||||||||||||||||||
Subsequent failure period | 90 days | ||||||||||||||||||
Maximum additional interest | 0.50% | ||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.25% | 6.00% | 5.75% | ||||||||||||||||
Additional interest under Registration Rights Agreement | 0.4 | ||||||||||||||||||
9.75% Senior Secured Notes Due 2015 [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Stated interest rate | 9.75% | ||||||||||||||||||
Repayments of long-term debt | $ 330 | $ 0 | $ 0 | $ 330 | |||||||||||||||
Debt Instrument Accrued Interest | $ 8.6 | ||||||||||||||||||
Spanish Government Loan Due 2025 [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Term loan facility | $ 0.6 | $ 0.6 | $ 0.7 | $ 0.7 | |||||||||||||||
Number of Equal Installment Payments | Payment | 10 | ||||||||||||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Values of Financial Assets and Liabilities - 10K (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | |||
FX Contracts | $ 1.1 | $ 2 | $ 0.2 |
Total assets at fair value | 1.1 | 2 | 0.2 |
Liabilities: | |||
FX Contracts | 1.8 | 0.6 | |
2013 Interest Rate Swap | 7.6 | 6.5 | 3.5 |
Total liabilities at fair value | 9.4 | 7.1 | 3.5 |
Level 1 [Member] | |||
Assets: | |||
FX Contracts | 0 | 0 | 0 |
Total assets at fair value | 0 | 0 | 0 |
Liabilities: | |||
FX Contracts | 0 | 0 | |
2013 Interest Rate Swap | 0 | 0 | 0 |
Total liabilities at fair value | 0 | 0 | 0 |
Level 2 [Member] | |||
Assets: | |||
FX Contracts | 1.1 | 2 | 0.2 |
Total assets at fair value | 1.1 | 2 | 0.2 |
Liabilities: | |||
FX Contracts | 1.8 | 0.6 | |
2013 Interest Rate Swap | 7.6 | 6.5 | 3.5 |
Total liabilities at fair value | 9.4 | 7.1 | 3.5 |
Level 3 [Member] | |||
Assets: | |||
FX Contracts | 0 | 0 | 0 |
Total assets at fair value | 0 | 0 | 0 |
Liabilities: | |||
FX Contracts | 0 | 0 | |
2013 Interest Rate Swap | 0 | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sc115
FAIR VALUE MEASUREMENTS - Schedule of Fair Values of Financial Liabilities - 10K (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Liabilities: | |||
Fair Value, Long-term debt, including current portion | $ 1,793.2 | $ 1,818 | $ 1,844 |
Carrying Value, Long-term debt, including current portion | 1,790.4 | 1,813.7 | 1,863.9 |
Previously Reported [Member] | |||
Liabilities: | |||
Carrying Value, Long-term debt, including current portion | 1,833.7 | ||
Level 1 [Member] | |||
Liabilities: | |||
Fair Value, Long-term debt, including current portion | 0 | 0 | 0 |
Level 2 [Member] | |||
Liabilities: | |||
Fair Value, Long-term debt, including current portion | 1,793.2 | 1,818 | 1,844 |
Level 3 [Member] | |||
Liabilities: | |||
Fair Value, Long-term debt, including current portion | $ 0 | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Value of Derivative Financial Instruments in Consolidated Balance Sheet - 10K (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other [Member] | |||
Derivative Instruments [Abstract] | |||
Fair value of gross derivative asset | $ 0 | $ 0 | $ 0 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | |||
Derivative Instruments [Abstract] | |||
Fair value of gross derivative asset | 0 | 0 | 0 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | |||
Derivative Instruments [Abstract] | |||
Fair value of gross derivative liabilities | 4.2 | 4 | 2.1 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Long-term Liabilities [Member] | |||
Derivative Instruments [Abstract] | |||
Fair value of gross derivative liabilities | 3.4 | 2.5 | 1.4 |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other [Member] | |||
Derivative Instruments [Abstract] | |||
Fair value of gross derivative asset | 1.1 | 2 | 0.2 |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | |||
Derivative Instruments [Abstract] | |||
Fair value of gross derivative liabilities | $ 1.8 | $ 0.6 | $ 0 |
FINANCIAL INSTRUMENTS - Effects
FINANCIAL INSTRUMENTS - Effects of Derivative Financial Instruments on Income and Other Comprehensive Income (Loss) - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
2013 Interest Rate Swap, net of tax | [1] | $ (1.6) | $ (3.7) | $ 1.5 | ||||
Revaluation of derivative financial instrument, tax expense (benefit) | $ 0.1 | $ 0 | $ (0.4) | $ (1.2) | (1) | (2.3) | 1 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
2013 Interest Rate Swap, net of tax | 0.2 | (0.1) | (0.7) | (2) | (1.6) | (3.7) | 1.5 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Interest Expense | (1.1) | (0.5) | (2.2) | (0.5) | (2.6) | 0 | 0 | |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Gain (Loss) [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Foreign currency gain, net | $ 0.3 | $ 0.4 | $ (0.5) | $ 0.9 | $ 3.8 | $ 0.5 | $ 2.2 | |
[1] | Net of tax (benefit) expense of $(1.0) million, $(2.3) million and $1.0 million for 2015, 2014 and 2013, respectively. |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information - 10K (Details) - USD ($) $ in Millions | May 31, 2015 | Nov. 30, 2013 | Nov. 30, 2013 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||
Standby and trade letters of credit for various corporate purposes | $ 8.3 | $ 8.8 | $ 9 | ||||||
Accumulated other comprehensive income (loss) | (236.9) | (245.3) | [1] | (243.2) | $ (149.8) | $ (208.2) | |||
Fair value of assets | 1.1 | 2 | 0.2 | ||||||
Deferred Gain - Hedging [Member] | |||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||
Accumulated other comprehensive income (loss) | (3.8) | (2.2) | $ 1.5 | $ 0 | |||||
Foreign Exchange Contracts [Member] | |||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||
Derivative, notional amount | 74.2 | 76.3 | 7.6 | ||||||
Interest Rate Swap [Member] | |||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||
Derivative, notional amount | $ 400 | $ 400 | |||||||
Floor interest rate (percent) | 1.00% | 1.00% | 1.00% | ||||||
Term of contract | 3 years | 3 years | 3 years | ||||||
Fixed interest rate (percent) | 2.0709% | 2.0709% | 2.0709% | ||||||
Fixed interest rate on debt (percent) | 5.0709% | 5.0709% | 5.0709% | ||||||
Losses to be reclassified to earnings, next twelve months | 2.6 | 2.4 | |||||||
Interest Rate Swap [Member] | Deferred Gain - Hedging [Member] | |||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||
Accumulated other comprehensive income (loss) | (3.8) | (2.2) | |||||||
Standby Letters Of Credit Which Support Products Corporations Self Insurance Programs [Member] | |||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||
Standby and trade letters of credit for various corporate purposes | $ 7.2 | $ 7.5 | $ 7.7 | ||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
SAVINGS PLAN, PENSION AND PO119
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Aggregate Reconciliation of Projected Benefit Obligations, Plan Assets, Funded Status and Amounts Recognized - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in Benefit Obligation: | |||||||
Benefit obligation - beginning of year | $ (649.4) | $ (761.7) | $ (761.7) | ||||
Benefit obligation - end of year | (649.4) | $ (761.7) | |||||
Change in Plan Assets: | |||||||
Fair value of plan assets - beginning of year | 473.9 | 567.7 | 567.7 | ||||
Fair value of plan assets - end of year | 473.9 | 567.7 | |||||
Pension Plans [Member] | |||||||
Change in Benefit Obligation: | |||||||
Benefit obligation - beginning of year | (649.4) | (761.7) | (761.7) | (668.2) | |||
Service cost | $ (0.2) | $ (0.2) | (0.3) | (0.4) | (0.7) | (0.8) | $ (0.9) |
Interest cost | (5.1) | (7.1) | (10.3) | (14.3) | (28.6) | (30.1) | (27.6) |
Actuarial gain (loss) | 44.4 | (108) | |||||
Lump sum settlement | 53.4 | 0 | |||||
Other pension settlements | 0.8 | 0 | |||||
Benefits paid | 38.3 | 41 | |||||
Foreign currency translation adjustments | 4.7 | 4.4 | |||||
Other | 0 | 0 | |||||
Benefit obligation - end of year | (649.4) | (761.7) | (668.2) | ||||
Change in Plan Assets: | |||||||
Fair value of plan assets - beginning of year | 473.9 | 567.7 | 567.7 | 557.6 | |||
Actual return on plan assets | (13.9) | 37.6 | |||||
Employer contributions | 1.4 | 3.1 | 17.3 | 18.2 | |||
Lump sum settlement | (53.4) | 0 | |||||
Other pension settlements | (0.8) | 0 | |||||
Benefits paid | 38.3 | 41 | |||||
Foreign currency translation adjustments | (4.7) | (4.7) | |||||
Fair value of plan assets - end of year | 473.9 | 567.7 | 557.6 | ||||
Total liability | (175.5) | (194) | |||||
Other Post-Retirement Benefit Plans [Member] | |||||||
Change in Benefit Obligation: | |||||||
Benefit obligation - beginning of year | (13) | (12.9) | (12.9) | (14.4) | |||
Service cost | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Interest cost | (0.1) | $ (0.1) | (0.2) | (0.2) | (0.5) | (0.5) | (0.6) |
Actuarial gain (loss) | (0.4) | (0.2) | |||||
Lump sum settlement | 0 | 0 | |||||
Other pension settlements | 0 | 0 | |||||
Benefits paid | 0.8 | 0.7 | |||||
Foreign currency translation adjustments | 0 | 0 | |||||
Other | 0 | 1.5 | |||||
Benefit obligation - end of year | (13) | (12.9) | (14.4) | ||||
Change in Plan Assets: | |||||||
Fair value of plan assets - beginning of year | 0 | $ 0 | 0 | 0 | |||
Actual return on plan assets | 0 | 0 | |||||
Employer contributions | $ 0.3 | $ 0.5 | 0.8 | 0.7 | |||
Lump sum settlement | 0 | 0 | |||||
Other pension settlements | 0 | 0 | |||||
Benefits paid | 0.8 | 0.7 | |||||
Foreign currency translation adjustments | 0 | 0 | |||||
Fair value of plan assets - end of year | 0 | 0 | $ 0 | ||||
Total liability | $ (13) | $ (12.9) |
SAVINGS PLAN, PENSION AND PO120
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Summary of Amounts Recognized in Respect to Pension Plans and Other Post-retirement Benefit Plans - 10K (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Other long-term assets | $ 89.4 | $ 84.1 | [1] | $ 113.3 |
Accrued expenses and other | (233.2) | (272.4) | [1] | (273.3) |
Pension and other post-retirement benefit liabilities | $ (178.2) | (185.3) | [1] | (200.9) |
Accumulated other comprehensive loss, gross | 260.8 | |||
Income tax (benefit) expense | (42) | |||
Portion allocated to Revlon Holdings | (1.1) | |||
Accumulated other comprehensive loss, net | 217.7 | |||
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other long-term assets | 3.6 | 0.8 | ||
Accrued expenses and other | (6) | (6.1) | ||
Pension and other post-retirement benefit liabilities | (173.1) | (188.7) | ||
Total liability | (175.5) | (194) | ||
Accumulated other comprehensive loss, gross | 258 | 277.6 | ||
Income tax (benefit) expense | (41.9) | (43.7) | ||
Portion allocated to Revlon Holdings | (0.9) | (1) | ||
Accumulated other comprehensive loss, net | 215.2 | 232.9 | ||
Other Post-Retirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other long-term assets | 0 | 0 | ||
Accrued expenses and other | (0.8) | (0.7) | ||
Pension and other post-retirement benefit liabilities | (12.2) | (12.2) | ||
Total liability | (13) | (12.9) | ||
Accumulated other comprehensive loss, gross | 2.8 | 2.5 | ||
Income tax (benefit) expense | (0.1) | 0.1 | ||
Portion allocated to Revlon Holdings | (0.2) | (0.2) | ||
Accumulated other comprehensive loss, net | $ 2.5 | $ 2.4 | ||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
SAVINGS PLAN, PENSION AND PO121
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Projected Benefit Obligation, Accumulated Benefit Obligation, and Fair Value of Plan Assets - 10K (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Pension and Post-Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 649.4 | $ 761.7 |
Accumulated benefit obligation | 649 | 761 |
Fair value of plan assets | $ 473.9 | $ 567.7 |
SAVINGS PLAN, PENSION AND PO122
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Components of Net Periodic Benefit Costs - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net periodic benefit (income) costs: | ||||||||
Lump sum settlement charge | $ (20.7) | |||||||
Net periodic benefit (income) costs | $ (0.1) | $ (0.7) | $ (0.4) | $ (1.3) | $ 18.8 | $ (5.4) | $ (0.4) | |
Pension Plans [Member] | ||||||||
Net periodic benefit (income) costs: | ||||||||
Service cost | 0.2 | 0.2 | 0.3 | 0.4 | 0.7 | 0.8 | 0.9 | |
Interest cost | 5.1 | 7.1 | 10.3 | 14.3 | 28.6 | 30.1 | 27.6 | |
Expected return on plan assets | (7.8) | (10.2) | (15.6) | (20.3) | (40.3) | (41.3) | (38.3) | |
Amortization of actuarial loss | 2.3 | 2.1 | 4.4 | 4.1 | 8.4 | 4.5 | 8.6 | |
Lump sum settlement charge | 20.7 | 0 | 0 | |||||
Other pension settlements charge | 0.3 | 0 | 0 | |||||
Net periodic benefit (income) costs, before allocation | (0.2) | (0.8) | (0.6) | (1.5) | 18.4 | (5.9) | (1.2) | |
Portion allocated to Revlon Holdings | (0.1) | (0.1) | (0.1) | (0.1) | (0.1) | (0.1) | (0.1) | |
Net periodic benefit (income) costs | (0.3) | (0.9) | (0.7) | (1.6) | 18.3 | (6) | (1.3) | |
Other Post-Retirement Benefit Plans [Member] | ||||||||
Net periodic benefit (income) costs: | ||||||||
Service cost | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 | 0.5 | 0.5 | 0.6 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Amortization of actuarial loss | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.4 | |
Lump sum settlement charge | 0 | 0 | 0 | |||||
Other pension settlements charge | 0 | 0 | 0 | |||||
Net periodic benefit (income) costs, before allocation | 0.2 | 0.2 | 0.3 | 0.3 | 0.6 | 0.6 | 1 | |
Portion allocated to Revlon Holdings | 0 | 0 | 0 | 0 | (0.1) | 0 | (0.1) | |
Net periodic benefit (income) costs | $ 0.2 | $ 0.2 | $ 0.3 | $ 0.3 | $ 0.5 | $ 0.6 | $ 0.9 |
SAVINGS PLAN, PENSION AND PO123
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Classification of Net Periodic Pension (Income) Costs - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Net periodic benefit (income) costs | $ (0.1) | $ (0.7) | $ (0.4) | $ (1.3) | $ 18.8 | $ (5.4) | $ (0.4) |
Cost of Sales [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Net periodic benefit (income) costs | (0.5) | (1) | (1.3) | (2) | 6.1 | (4.2) | |
SG&A Expenses [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Net periodic benefit (income) costs | $ 0.4 | $ 0.3 | $ 0.9 | $ 0.7 | 12.7 | (0.7) | |
Inventories [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Net periodic benefit (income) costs | $ 0 | $ (0.5) |
SAVINGS PLAN, PENSION AND PO124
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Summary of Unrecognized Components of Net Periodic Benefit Cost - 10K (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 260.8 | |
Prior service cost | 0 | |
Accumulated Other Comprehensive Loss, Gross | 260.8 | |
Income tax (benefit) expense | (42) | |
Portion allocated to Revlon Holdings | (1.1) | |
Accumulated other comprehensive loss, net | 217.7 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 258 | |
Prior service cost | 0 | |
Accumulated Other Comprehensive Loss, Gross | 258 | $ 277.6 |
Income tax (benefit) expense | (41.9) | (43.7) |
Portion allocated to Revlon Holdings | (0.9) | (1) |
Accumulated other comprehensive loss, net | 215.2 | 232.9 |
Other Post-Retirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 2.8 | |
Prior service cost | 0 | |
Accumulated Other Comprehensive Loss, Gross | 2.8 | 2.5 |
Income tax (benefit) expense | (0.1) | 0.1 |
Portion allocated to Revlon Holdings | (0.2) | (0.2) |
Accumulated other comprehensive loss, net | $ 2.5 | $ 2.4 |
SAVINGS PLAN, PENSION AND PO125
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Weighted-average Assumptions Used to Determine Projected Benefit Obligation for Current Year - 10K (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.15% | 3.89% |
Rate of future compensation increases | 3.50% | 3.00% |
International Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.68% | 3.74% |
Rate of future compensation increases | 2.22% | 2.33% |
SAVINGS PLAN, PENSION AND PO126
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Weighted-average Assumptions Used to Determine Net Periodic Benefit Cost - 10K (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.89% | 4.68% | 3.78% |
Expected long-term return on plan assets | 7.50% | 7.75% | 7.75% |
Rate of future compensation increases | 3.00% | 3.00% | 3.00% |
International Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.74% | 4.48% | 4.33% |
Expected long-term return on plan assets | 6.00% | 6.00% | 6.00% |
Rate of future compensation increases | 2.33% | 3.40% | 2.97% |
SAVINGS PLAN, PENSION AND PO127
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Weighted Average Risk Target Ranges Per Asset Class - 10K (Details) | 12 Months Ended |
Dec. 31, 2015 | |
International Plans [Member] | Common and preferred stock [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
International Plans [Member] | Mutual funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
International Plans [Member] | Fixed income securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
International Plans [Member] | Common and collective funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 100.00% |
International Plans [Member] | Hedge funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
International Plans [Member] | Group annuity contract [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
International Plans [Member] | Cash and other investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
Minimum [Member] | U.S. Plans [Member] | Common and preferred stock [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
Minimum [Member] | U.S. Plans [Member] | Mutual funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 20.00% |
Minimum [Member] | U.S. Plans [Member] | Fixed income securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 10.00% |
Minimum [Member] | U.S. Plans [Member] | Common and collective funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 25.00% |
Minimum [Member] | U.S. Plans [Member] | Hedge funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
Minimum [Member] | U.S. Plans [Member] | Group annuity contract [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
Minimum [Member] | U.S. Plans [Member] | Cash and other investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
Maximum [Member] | U.S. Plans [Member] | Common and preferred stock [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 10.00% |
Maximum [Member] | U.S. Plans [Member] | Mutual funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 30.00% |
Maximum [Member] | U.S. Plans [Member] | Fixed income securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 30.00% |
Maximum [Member] | U.S. Plans [Member] | Common and collective funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 55.00% |
Maximum [Member] | U.S. Plans [Member] | Hedge funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 15.00% |
Maximum [Member] | U.S. Plans [Member] | Group annuity contract [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 5.00% |
Maximum [Member] | U.S. Plans [Member] | Cash and other investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 10.00% |
SAVINGS PLAN, PENSION AND PO128
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Fair Value of Pension Plan Assets - 10K (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 473.9 | $ 567.7 |
U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 407.2 | 496.1 |
International Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 66.7 | $ 71.6 |
SAVINGS PLAN, PENSION AND PO129
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Fair Value of Asset Categories - 10K (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 473.9 | $ 567.7 | |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 67.2 | 145.9 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 406.7 | 421.8 | |
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | $ 1.9 |
Group Annuity Contract [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.8 | 2.8 | |
Group Annuity Contract [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Group Annuity Contract [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.8 | 2.8 | |
Group Annuity Contract [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. small/mid cap equity [Member] | Common and Preferred Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14.6 | 20.5 | |
U.S. small/mid cap equity [Member] | Common and Preferred Stock [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14.6 | 20.5 | |
U.S. small/mid cap equity [Member] | Common and Preferred Stock [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. small/mid cap equity [Member] | Common and Preferred Stock [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. small/mid cap equity [Member] | Common and Collective Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15.5 | 21 | |
U.S. small/mid cap equity [Member] | Common and Collective Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. small/mid cap equity [Member] | Common and Collective Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15.5 | 21 | |
U.S. small/mid cap equity [Member] | Common and Collective Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14.9 | 17.5 | |
Corporate bonds [Member] | Mutual Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14.9 | 17.5 | |
Corporate bonds [Member] | Mutual Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds [Member] | Mutual Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41.7 | 55 | |
Corporate bonds [Member] | Fixed Income Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds [Member] | Fixed Income Securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41.7 | 55 | |
Corporate bonds [Member] | Fixed Income Securities [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds [Member] | Common and Collective Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 61.5 | 75.4 | |
Corporate bonds [Member] | Common and Collective Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds [Member] | Common and Collective Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 61.5 | 75.4 | |
Corporate bonds [Member] | Common and Collective Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds [Member] | Hedge funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.8 | 6.8 | |
Corporate bonds [Member] | Hedge funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds [Member] | Hedge funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.8 | 6.8 | |
Corporate bonds [Member] | Hedge funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Government bonds [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12.9 | 13.6 | |
Government bonds [Member] | Mutual Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12.9 | 13.6 | |
Government bonds [Member] | Mutual Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Government bonds [Member] | Mutual Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Government bonds [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.9 | 10.9 | |
Government bonds [Member] | Fixed Income Securities [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Government bonds [Member] | Fixed Income Securities [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.9 | 10.9 | |
Government bonds [Member] | Fixed Income Securities [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Government bonds [Member] | Common and Collective Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 56.8 | 60 | |
Government bonds [Member] | Common and Collective Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Government bonds [Member] | Common and Collective Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 56.8 | 60 | |
Government bonds [Member] | Common and Collective Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Government bonds [Member] | Hedge funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.6 | (8.8) | |
Government bonds [Member] | Hedge funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Government bonds [Member] | Hedge funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.6 | (8.8) | |
Government bonds [Member] | Hedge funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. large cap equity [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.7 | 68.5 | |
U.S. large cap equity [Member] | Mutual Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.7 | 68.5 | |
U.S. large cap equity [Member] | Mutual Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. large cap equity [Member] | Mutual Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. large cap equity [Member] | Common and Collective Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 71.9 | 24.3 | |
U.S. large cap equity [Member] | Common and Collective Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. large cap equity [Member] | Common and Collective Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 71.9 | 24.3 | |
U.S. large cap equity [Member] | Common and Collective Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. large cap equity [Member] | Hedge funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.8 | 9.1 | |
U.S. large cap equity [Member] | Hedge funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. large cap equity [Member] | Hedge funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.8 | 9.1 | |
U.S. large cap equity [Member] | Hedge funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International equities [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 7.3 | |
International equities [Member] | Mutual Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 7.3 | |
International equities [Member] | Mutual Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International equities [Member] | Mutual Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International equities [Member] | Common and Collective Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 77.8 | 89.9 | |
International equities [Member] | Common and Collective Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International equities [Member] | Common and Collective Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 77.8 | 89.9 | |
International equities [Member] | Common and Collective Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International equities [Member] | Hedge funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15.9 | ||
International equities [Member] | Hedge funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
International equities [Member] | Hedge funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15.9 | ||
International equities [Member] | Hedge funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Emerging markets international equity [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5.1 | 6.1 | |
Emerging markets international equity [Member] | Mutual Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5.1 | 6.1 | |
Emerging markets international equity [Member] | Mutual Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Emerging markets international equity [Member] | Mutual Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Emerging markets international equity [Member] | Common and Collective Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14.5 | 17.6 | |
Emerging markets international equity [Member] | Common and Collective Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Emerging markets international equity [Member] | Common and Collective Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14.5 | 17.6 | |
Emerging markets international equity [Member] | Common and Collective Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Emerging markets international equity [Member] | Hedge funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4.1 | ||
Emerging markets international equity [Member] | Hedge funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Emerging markets international equity [Member] | Hedge funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4.1 | ||
Emerging markets international equity [Member] | Hedge funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Other [Member] | Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 3.1 | |
Other [Member] | Mutual Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 3.1 | |
Other [Member] | Mutual Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other [Member] | Mutual Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other [Member] | Common and Collective Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5.5 | 3.1 | |
Other [Member] | Common and Collective Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other [Member] | Common and Collective Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5.5 | 3.1 | |
Other [Member] | Common and Collective Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other [Member] | Hedge funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 32.1 | 4.2 | |
Other [Member] | Hedge funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other [Member] | Hedge funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 32.1 | 4.2 | |
Other [Member] | Hedge funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13.7 | 9.3 | |
Cash and cash equivalents [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13.7 | 9.3 | |
Cash and cash equivalents [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents [Member] | Common and Collective Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (0.8) | 3.7 | |
Cash and cash equivalents [Member] | Common and Collective Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.3 | 0 | |
Cash and cash equivalents [Member] | Common and Collective Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (1.1) | 3.7 | |
Cash and cash equivalents [Member] | Common and Collective Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents [Member] | Hedge funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4.6 | 26.8 | |
Cash and cash equivalents [Member] | Hedge funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents [Member] | Hedge funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4.6 | 26.8 | |
Cash and cash equivalents [Member] | Hedge funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
SAVINGS PLAN, PENSION AND PO130
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Summary of Changes in Fair Values of Pension Plans - 10K (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair value of plan assets - end of year | $ 567.7 |
Level 3 [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair value of plan assets - beginning of year | 1.9 |
Purchases, sales, and settlements, net | (0.5) |
Transfers out of Level 3 | (1.4) |
Fair value of plan assets - end of year | 0 |
Fixed income securities [Member] | Level 3 [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair value of plan assets - beginning of year | 1.9 |
Purchases, sales, and settlements, net | (0.5) |
Transfers out of Level 3 | (1.4) |
Fair value of plan assets - end of year | 0 |
Hedge funds [Member] | Level 3 [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair value of plan assets - beginning of year | 0 |
Purchases, sales, and settlements, net | 0 |
Transfers out of Level 3 | 0 |
Fair value of plan assets - end of year | $ 0 |
SAVINGS PLAN, PENSION AND PO131
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Estimated Future Benefit Payments - 10K (Details) $ in Millions | Dec. 31, 2015USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 41.7 |
2,017 | 41.6 |
2,018 | 42.1 |
2,019 | 42.4 |
2,020 | 42.9 |
Years 2021 to 2025 | 212.4 |
Total Other Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 1 |
2,017 | 1 |
2,018 | 1 |
2,019 | 1 |
2,020 | 1 |
Years 2021 to 2025 | $ 4.9 |
SAVINGS PLAN, PENSION AND PO132
SAVINGS PLAN, PENSION AND POST-RETIREMENT BENEFITS - Additional Information - 10K (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | Jan. 31, 2014USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||
Employer matching contribution, percent of employee contribution | 50.00% | |||||||||||
Number of qualified defined benefit pension plans | Plan | 2 | |||||||||||
Lump sum settlement charge | $ 20.7 | |||||||||||
Net periodic benefit (income) costs | $ (0.1) | $ (0.7) | $ (0.4) | $ (1.3) | $ 18.8 | $ (5.4) | $ (0.4) | |||||
Estimated contributions in next fiscal year | 10 | 20 | ||||||||||
Pension Plans [Member] | ||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||
Lump sum settlement | 53.4 | 0 | ||||||||||
Lump sum settlement charge | (20.7) | 0 | 0 | |||||||||
Net periodic benefit (income) costs | (0.3) | (0.9) | (0.7) | (1.6) | 18.3 | (6) | (1.3) | |||||
Actuarial losses and prior service costs expected to be recognized in net periodic benefit cost during next fiscal year | 8.5 | 8.5 | ||||||||||
Employer contributions | 1.4 | 3.1 | 17.3 | 18.2 | ||||||||
Other Post-Retirement Benefit Plans [Member] | ||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||
Lump sum settlement | 0 | 0 | ||||||||||
Lump sum settlement charge | 0 | 0 | 0 | |||||||||
Net periodic benefit (income) costs | 0.2 | $ 0.2 | 0.3 | $ 0.3 | 0.5 | 0.6 | $ 0.9 | |||||
Actuarial losses and prior service costs expected to be recognized in net periodic benefit cost during next fiscal year | 0.2 | 0.2 | ||||||||||
Employer contributions | $ 0.3 | $ 0.5 | $ 0.8 | $ 0.7 | ||||||||
U.S. Plans [Member] | ||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||
Expected long-term return on plan assets | 7.50% | 7.75% | 7.75% | |||||||||
International Plans [Member] | ||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||
Expected long-term return on plan assets | 6.00% | 6.00% | 6.00% | |||||||||
Savings Plan [Member] | ||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||
Employer matching cash contributions | $ 2.5 | $ 2.4 | $ 2.4 | |||||||||
Employer discretionary profit sharing contributions | 4.8 | 4 | 4.1 | |||||||||
Employer discretionary profit sharing contributions paid | $ 0.9 | $ 0.9 | $ 3.7 | $ 3.1 | $ 3.2 | |||||||
Employer discretionary profit sharing contributions, percentage of employee gross pay | 3.00% | 3.00% | 3.00% | |||||||||
Savings Plan [Member] | Subsequent Event [Member] | ||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||
Employer discretionary profit sharing contributions paid | $ 1.1 | |||||||||||
Savings Plan [Member] | Non Highly Compensated Participants [Member] | ||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||
Employee maximum contribution percentage | 25.00% | |||||||||||
Savings Plan [Member] | Highly Compensated Participants [Member] | ||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||
Employee maximum contribution percentage | 6.00% | |||||||||||
Related Party Transaction, Pension Plan Liabilities [Member] | ||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||
Receivables from affiliates | $ 3 | $ 3 | $ 3.1 |
STOCK COMPENSATION PLAN - Stock
STOCK COMPENSATION PLAN - Stock Option, and Restricted Stock and Restricted Stock Unit Activity - 10K (Details) - $ / shares | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Mar. 31, 2015 | Oct. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Stock Options, Outstanding, beginning of period (in shares) | 800 | 8,100 | ||||
Stock Options, Forfeited and expired (in shares) | (800) | (7,300) | ||||
Stock Options, Outstanding, beginning of period (in shares) | 0 | 0 | 800 | 8,100 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Weighted Average Exercise Price, Balance, beginning of period (in dollars per share) | $ 27.50 | $ 29.91 | ||||
Weighted Average Exercise Price, Forfeited and expired (in dollars per share) | 27.50 | 30.17 | ||||
Weighted Average Exercise Price, Balance, beginning of period (in dollars per share) | $ 0 | $ 0 | $ 27.50 | $ 29.91 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Restricted Stock, Outstanding, beginning of period (in shares) | 40,000 | |||||
Restricted Stock, Outstanding, beginning of period (in shares) | 40,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||
Shares withheld for withholding taxes (in shares) | 82,740 | 22,328 | ||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Restricted Stock, Outstanding, beginning of period (in shares) | 773,400 | 120,000 | 0 | |||
Restricted Stock, Granted (in shares) | 145,084 | 75,551 | 120,000 | 220,600 | 693,378 | 120,000 |
Restricted Stock, Vested (in shares) | (171,700) | (40,000) | ||||
Restricted Stock, Forfeited (in shares) | (57,500) | |||||
Restricted Stock, Outstanding, beginning of period (in shares) | 764,800 | 764,800 | 773,400 | 120,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||
Weighted Average Grant Date Fair Value, Outstanding, beginning of period (in dollars per share) | $ 30.37 | $ 24.80 | $ 0 | |||
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 29.46 | 31.01 | 24.80 | |||
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 29.09 | 24.80 | ||||
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | 30.44 | |||||
Weighted Average Grant Date Fair Value, Outstanding, beginning of period (in dollars per share) | $ 30.39 | $ 30.39 | $ 30.37 | $ 24.80 |
STOCK COMPENSATION PLAN - Addit
STOCK COMPENSATION PLAN - Additional Information - 10K (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Jul. 31, 2014 | Oct. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares reserved for issuance (in shares) | 6,565,000 | 6,565,000 | |||||||
Shares remaining available for grants (in shares) | 3,800,000 | 3,800,000 | |||||||
Stock Compensation Plan, Term | 7 years | ||||||||
Options expiration term | 7 years | ||||||||
Options vesting service period, minimum | 1 year | ||||||||
Options vesting service period, maximum | 4 years | ||||||||
Options exercisable (in shares) | 0 | 0 | 0 | 800 | |||||
Vesting period | 3 years 4 months 24 days | ||||||||
Restricted stock outstanding (in shares) | 40,000 | ||||||||
Compensation expense | $ 5.1 | $ 5.5 | $ 0.2 | ||||||
Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards, vesting service period, minimum | 3 years | ||||||||
Restricted stock awards, vesting service period, maximum | 5 years | ||||||||
Restricted stock granted (in shares) | 145,084 | 75,551 | 120,000 | 220,600 | 693,378 | 120,000 | |||
Vesting period | 4 years | 5 years | 3 years | 5 years | |||||
Restricted stock outstanding (in shares) | 764,800 | 764,800 | 773,400 | 120,000 | 0 | ||||
Fair value of restricted stock and restricted stock units vested | $ 5 | $ 1 | |||||||
Deferred stock-based compensation related to restricted stock awards | $ 18.4 | $ 18.4 |
INCOME TAXES - Income Before In
INCOME TAXES - Income Before Income Taxes and Provision for Income Taxes - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income (loss) from continuing operations before income taxes: | ||||||||
United States | $ 123.4 | $ 146.9 | $ 36 | |||||
Foreign | (3.7) | (19.7) | 44.6 | |||||
Income from continuing operations before income taxes | $ 23.6 | $ 48.9 | $ 42.3 | $ 59.2 | 119.7 | 127.2 | 80.6 | |
Provision for (benefit from) income taxes: | ||||||||
United States federal | 40.9 | 58.2 | 27.4 | |||||
State and local | 16.7 | 17.9 | 13.8 | |||||
Foreign | (3.2) | 5.1 | 7.4 | |||||
Provision for income taxes | $ 11.8 | $ 21.4 | 17.9 | 31 | 54.4 | 81.2 | 48.6 | |
Current: | ||||||||
United States federal | (2.7) | 2.6 | 3.2 | |||||
State and local | 3.9 | 3.5 | 0.7 | |||||
Foreign | 21.7 | 7.2 | 11.3 | |||||
Current income tax expense (benefit) | 22.9 | 13.3 | 15.2 | |||||
Deferred: | ||||||||
United States federal | 43.6 | 55.6 | 24.2 | |||||
State and local | 12.8 | 14.4 | 13.1 | |||||
Foreign | (24.9) | (2.1) | (3.9) | |||||
Provision for deferred income taxes | $ 7.1 | $ 19.5 | [1] | $ 31.5 | $ 67.9 | $ 33.4 | ||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Tax Expense to Statutory Federal Income Tax Rate - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||||||
Computed income tax expense | $ 41.9 | $ 44.5 | $ 28.2 | ||||
State and local taxes, net of U.S. federal income tax benefit | 10.9 | 20.5 | 8.9 | ||||
Foreign and U.S. tax effects attributable to operations outside the U.S. | 13.6 | 5.8 | (6.2) | ||||
Net establishment (release) of valuation allowance | (15.5) | 6.4 | 0 | ||||
Foreign dividends and earnings taxable in the U.S. | 3.2 | 5.4 | 11 | ||||
Acquisition costs for which there is no tax benefit | 0 | 0 | 2.7 | ||||
Other | 0.3 | (1.4) | 4 | ||||
Provision for income taxes | $ 11.8 | $ 21.4 | $ 17.9 | $ 31 | $ 54.4 | $ 81.2 | $ 48.6 |
INCOME TAXES - Deferred Taxes -
INCOME TAXES - Deferred Taxes - 10K (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Inventories | $ 7.3 | $ 7.6 |
Net operating loss carryforwards - U.S. | 27.6 | 77.6 |
Net operating loss carryforwards - foreign | 51.4 | 57.9 |
Employee benefits | 96.7 | 100.7 |
State and local taxes | 0 | 2.7 |
Sales related reserves | 25.8 | 26.2 |
Foreign currency translation adjustment | 11 | 3.9 |
Other | 52.7 | 46.1 |
Total gross deferred tax assets | 272.5 | 322.7 |
Less valuation allowance | (47.1) | (57.1) |
Total deferred tax assets, net of valuation allowance | 225.4 | 265.6 |
Deferred tax liabilities: | ||
Plant, equipment and other assets | (29.9) | (30) |
Intangibles | (82.4) | (88) |
Other | (63.2) | (55.2) |
Total gross deferred tax liabilities | (175.5) | (173.2) |
Net deferred tax assets | $ 49.9 | $ 92.4 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits - 10K (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 62 | $ 74.5 |
Increase based on tax positions taken in a prior year | 5.6 | 12.6 |
Decrease based on tax positions taken in a prior year | (5.8) | (22.8) |
Increase based on tax positions taken in the current year | 8.5 | 8 |
Decrease resulting from the lapse of statutes of limitations | (5.3) | (10.3) |
Ending balance | $ 65 | $ 62 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information - 10K (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Line Items] | |||
Deferred tax valuation allowance increase (decrease) | $ (10) | $ (4.6) | |
Interest and penalties | 1 | 0.9 | |
Unrecognized tax benefits | 65 | 62 | $ 74.5 |
Unrecognized tax benefits - accrued interest and penalties | 10.3 | 11.3 | |
Increase in unrecognized tax benefits is reasonably possible | 1.1 | ||
Undistributed earnings of foreign subsidiaries | 52.5 | ||
Operating loss carryforwards expiring 2016 | 2.1 | ||
Operating loss carryforwards expiring 2017 | 8.2 | ||
Operating loss carryforwards expiring 2018 | 26.1 | ||
Operating loss carryforwards expiring after 2018 | 28.3 | ||
Operating loss carryforwards not subject to expiration | 168.2 | ||
Payments from affiliate related to current year | 0 | ||
Payments from affiliate related to prior years | $ 0.3 | ||
Foreign [Member] | |||
Income Tax Disclosure [Line Items] | |||
Tax loss carryforwards | 219.4 | ||
Domestic (federal) [Member] | |||
Income Tax Disclosure [Line Items] | |||
Tax loss carryforwards | $ 13.4 |
ACCUMULATED OTHER COMPREHENS140
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Beginning Balance | $ (245.3) | [1] | $ (243.2) | $ (243.2) | $ (149.8) | $ (208.2) | |||||||||
Unrealized gains (losses), net of tax | (4.1) | ||||||||||||||
Foreign currency translation adjustment, net of tax | $ 2.6 | [2] | $ 0.8 | [2] | 5.3 | [2] | (12.6) | [2] | (18.1) | [3] | (24.6) | [3] | (4.1) | [3] | |
Amortization of pension related costs, net of tax | 2 | [4],[5] | 1.8 | [4],[5] | 3.8 | [4],[5] | 3.5 | [4],[5] | 7.2 | [6],[7] | 4.5 | [6],[7] | 7.7 | [6],[7] | |
Pension re-measurement, net of tax | [8] | (6.9) | (69.6) | 53.3 | |||||||||||
Settlement of certain pension liabilities | [9] | 17.3 | 0 | 0 | |||||||||||
Revaluation of derivative financial instrument, net of tax | [10] | (1.6) | (3.7) | 1.5 | |||||||||||
Other Comprehensive Income (Loss), other | 0 | ||||||||||||||
Revaluation of derivative financial instruments, net of reclassifications into earnings | 0.2 | [11] | (0.1) | [11] | (0.7) | [11] | (2) | [11] | (1.6) | [10] | (3.7) | [10] | 1.5 | [10] | |
Other comprehensive (loss) income | 4.8 | 2.5 | 8.4 | [12] | (11.1) | (2.1) | [13] | (93.4) | [13] | 58.4 | |||||
Ending Balance | (236.9) | (236.9) | (245.3) | [1] | (243.2) | (149.8) | |||||||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | |||||||||||||||
Unrealized gains (losses), tax expense (benefit) | (3.3) | ||||||||||||||
Currency translation adjustment, tax expense (benefit) | 0.5 | 0.2 | 0.6 | (2.8) | (5.1) | (2.1) | (3.3) | ||||||||
Amortization of pension related costs, tax expense (benefit) | 0.4 | 0.4 | 0.7 | 0.7 | 1.3 | 0.1 | 1.2 | ||||||||
Pension re-measurement, tax expense (benefit) | (3.3) | (42) | 33.5 | ||||||||||||
Settlement of certain pension liabilities, tax expense (benefit) | 3.7 | ||||||||||||||
Revaluation of derivative financial instrument, tax expense (benefit) | $ 0.1 | $ 0 | (0.4) | (1.2) | (1) | (2.3) | 1 | ||||||||
Foreign Currency Translation [Member] | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Beginning Balance | (23.5) | (5.4) | (5.4) | 19.2 | 23.3 | ||||||||||
Unrealized gains (losses), net of tax | (4.1) | ||||||||||||||
Foreign currency translation adjustment, net of tax | (18.1) | (24.6) | |||||||||||||
Amortization of pension related costs, net of tax | 0 | 0 | |||||||||||||
Pension re-measurement, net of tax | 0 | 0 | |||||||||||||
Settlement of certain pension liabilities | |||||||||||||||
Revaluation of derivative financial instrument, net of tax | 0 | 0 | |||||||||||||
Other Comprehensive Income (Loss), other | 0 | ||||||||||||||
Other comprehensive (loss) income | (18.1) | ||||||||||||||
Ending Balance | (23.5) | (5.4) | 19.2 | ||||||||||||
Actuarial (Loss) Gain On Post Retirement Benefits [Member] | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Beginning Balance | (217.7) | (235.3) | (235.3) | (170.5) | (231.5) | ||||||||||
Unrealized gains (losses), net of tax | 0 | ||||||||||||||
Foreign currency translation adjustment, net of tax | 0 | ||||||||||||||
Amortization of pension related costs, net of tax | 7.2 | 4.5 | 7.7 | ||||||||||||
Pension re-measurement, net of tax | (6.9) | (69.6) | 53.3 | ||||||||||||
Settlement of certain pension liabilities | 17.3 | ||||||||||||||
Revaluation of derivative financial instrument, net of tax | 0 | 0 | |||||||||||||
Other Comprehensive Income (Loss), other | 0.3 | ||||||||||||||
Other comprehensive (loss) income | 17.6 | ||||||||||||||
Ending Balance | (217.7) | (235.3) | (170.5) | ||||||||||||
Deferred Gain (Loss) - Hedging [Member] | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Beginning Balance | (3.8) | (2.2) | (2.2) | 1.5 | 0 | ||||||||||
Unrealized gains (losses), net of tax | 0 | ||||||||||||||
Foreign currency translation adjustment, net of tax | 0 | ||||||||||||||
Amortization of pension related costs, net of tax | 0 | 0 | |||||||||||||
Pension re-measurement, net of tax | 0 | 0 | |||||||||||||
Settlement of certain pension liabilities | 0 | ||||||||||||||
Revaluation of derivative financial instrument, net of tax | (1.6) | (3.7) | 1.5 | ||||||||||||
Other Comprehensive Income (Loss), other | 0 | ||||||||||||||
Other comprehensive (loss) income | (1.6) | ||||||||||||||
Ending Balance | (3.8) | (2.2) | 1.5 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Other [Member] | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Beginning Balance | $ (0.3) | $ (0.3) | (0.3) | 0 | 0 | ||||||||||
Unrealized gains (losses), net of tax | 0 | ||||||||||||||
Foreign currency translation adjustment, net of tax | 0 | ||||||||||||||
Amortization of pension related costs, net of tax | 0 | 0 | |||||||||||||
Pension re-measurement, net of tax | 0 | 0 | |||||||||||||
Settlement of certain pension liabilities | |||||||||||||||
Revaluation of derivative financial instrument, net of tax | 0 | 0 | |||||||||||||
Other Comprehensive Income (Loss), other | (0.3) | ||||||||||||||
Other comprehensive (loss) income | 0 | ||||||||||||||
Ending Balance | $ (0.3) | $ (0.3) | $ 0 | ||||||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. | ||||||||||||||
[2] | Net of tax expense (benefit) of $0.5 million and $0.2 million for the three months ended June 30, 2016 and 2015, respectively, and $0.6 million and $(2.8) million for the six months ended June 30, 2016 and 2015, respectively. | ||||||||||||||
[3] | Net of tax benefit of $5.1 million, $2.1 million and $3.3 million for 2015, 2014 and 2013, respectively. | ||||||||||||||
[4] | Net of tax expense of $0.4 million for each of the three months ended June 30, 2016 and 2015, respectively, and $0.7 million for each of the six months ended June 30, 2016 and 2015. | ||||||||||||||
[5] | This other comprehensive income component is included in the computation of net periodic benefit (income) costs. See Note 11, "Pension and Post-Retirement Benefits," for additional information regarding net periodic benefit (income) costs. | ||||||||||||||
[6] | Net of tax expense of $1.3 million, $0.1 million and $1.2 million for 2015, 2014 and 2013, respectively. | ||||||||||||||
[7] | This other comprehensive income component is included in the computation of net periodic benefit (income) costs. See Note 14, "Savings Plan, Pension and Post-Retirement Benefits," for additional information regarding net periodic benefit (income) costs. | ||||||||||||||
[8] | Net of tax (benefit) expense of $(3.3) million, $(42.0) million and $33.5 million for 2015, 2014 and 2013, respectively. | ||||||||||||||
[9] | Net of tax expense of $3.7 million. | ||||||||||||||
[10] | Net of tax (benefit) expense of $(1.0) million, $(2.3) million and $1.0 million for 2015, 2014 and 2013, respectively. | ||||||||||||||
[11] | Net of tax expense (benefit) of $0.1 million and nil for the three months ended June 30, 2016 and 2015, respectively, and $(0.4) million and $(1.2) million for the six months ended June 30, 2016 and 2015, respectively. | ||||||||||||||
[12] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive income during the six months ended June 30, 2016. | ||||||||||||||
[13] | See Note 17, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during each of 2015, 2014 and 2013. |
ACCUMULATED OTHER COMPREHENS141
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification out of Accumulated Comprehensive Loss - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2016 | Jun. 30, 2015 | [2] | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||
Beginning Balance | $ (245.3) | [1] | $ (243.2) | $ (243.2) | $ (149.8) | $ (208.2) | ||||||||
Change in fair value, net of tax | $ 0.2 | [2] | $ (0.1) | (0.7) | [2] | (2) | [2] | (1.6) | [3] | (3.7) | [3] | 1.5 | [3] | |
Ending Balance | $ (236.9) | (236.9) | (245.3) | [1] | (243.2) | (149.8) | ||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Portion Attributable to Parent [Abstract] | ||||||||||||||
Reclassifications into earnings - tax expense (benefit) | 1 | |||||||||||||
Change in fair - tax expense (benefit) | (2) | |||||||||||||
Deferred Gain (Loss) - Hedging [Member] | ||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||
Beginning Balance | (3.8) | (2.2) | (2.2) | 1.5 | 0 | |||||||||
Ending Balance | (3.8) | (2.2) | $ 1.5 | |||||||||||
Deferred Gain (Loss) - Hedging [Member] | Interest Rate Swap [Member] | ||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||
Beginning Balance | $ (3.8) | $ (2.2) | (2.2) | |||||||||||
Ending Balance | (3.8) | $ (2.2) | ||||||||||||
Deferred Gain (Loss) - Hedging [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||||||
Reclassifications into earnings, net of tax | 1.6 | |||||||||||||
Change in fair value, net of tax | $ (3.2) | |||||||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. | |||||||||||||
[2] | Net of tax expense (benefit) of $0.1 million and nil for the three months ended June 30, 2016 and 2015, respectively, and $(0.4) million and $(1.2) million for the six months ended June 30, 2016 and 2015, respectively. | |||||||||||||
[3] | Net of tax (benefit) expense of $(1.0) million, $(2.3) million and $1.0 million for 2015, 2014 and 2013, respectively. |
SEGMENT DATA AND RELATED INF142
SEGMENT DATA AND RELATED INFORMATION - Net Sales and Segment Profit - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | $ 488.9 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 501 | $ 472.3 | $ 497.9 | $ 469.8 | $ 928.5 | $ 920.9 | $ 1,914.3 | $ 1,941 | $ 1,494.7 | |
Segment profit | 54.6 | 63.1 | 92.7 | 110.7 | 224.8 | 245.3 | 197.1 | ||||||||
Depreciation and amortization | 52.2 | 50.8 | [1] | 103.2 | 102.6 | 76.7 | |||||||||
Non-cash stock compensation expense | 5.1 | 5.5 | 0.2 | ||||||||||||
Non-Operating items: | |||||||||||||||
Restructuring and related charges | 0.5 | (3.6) | 1.8 | (3.1) | 10.5 | 21.3 | 3.5 | ||||||||
Acquisition and integration costs | 5.5 | 4.7 | 6 | 5.9 | 8 | 6.4 | 25.4 | ||||||||
Interest expense | 20.9 | 20.5 | 41.9 | 40.5 | 83.3 | 84.4 | 78.6 | ||||||||
Amortization of debt issuance costs | 1.4 | 1.4 | 2.9 | 2.8 | [1] | 5.7 | 5.5 | 3.5 | |||||||
Loss on early extinguishment of debt | $ 1.9 | 0 | 2 | 29.7 | |||||||||||
Foreign currency losses (gains), net | 8.5 | (7.9) | 5.1 | 8 | 15.7 | 25 | 3.7 | ||||||||
Miscellaneous, net | 0.2 | 0.2 | 0.5 | 0.2 | 0.4 | 1.2 | 1 | ||||||||
Income from continuing operations before income taxes | 23.6 | 48.9 | 42.3 | 59.2 | 119.7 | 127.2 | 80.6 | ||||||||
Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 488.9 | 482.4 | 928.5 | 920.9 | 1,914.3 | 1,941 | 1,494.7 | ||||||||
Segment profit | 105.2 | 108.3 | 188.3 | 199.7 | 465.5 | 444.2 | 347.4 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Unallocated corporate expenses | 16.2 | 15.8 | 30.4 | 30.5 | 79 | 59.2 | 53.8 | ||||||||
Segment Reconciling Items [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Depreciation and amortization | 26.3 | 25.2 | 52.2 | 50.8 | 103.2 | 102.6 | 76.7 | ||||||||
Non-cash stock compensation expense | 1.1 | 1.2 | 3.3 | 2.8 | 5.1 | 5.5 | 0.2 | ||||||||
Non-Operating items: | |||||||||||||||
Restructuring and related charges | 0.5 | (3) | 1.8 | (2.3) | 11.6 | 22.6 | 4.5 | ||||||||
Acquisition and integration costs | 5.5 | 4.7 | 6 | 5.9 | 8 | 6.4 | 25.4 | ||||||||
Inventory purchase accounting adjustment, cost of sales | 0.1 | 0.6 | 0.1 | 0.6 | 0.9 | 2.6 | 8.5 | ||||||||
Pension Lump sum settlement | 20.7 | 0 | 0 | ||||||||||||
Goodwill impairment charge | 9.7 | 0 | 0 | ||||||||||||
Deferred Compensation related to CBB Acquisition | 0.9 | 0.7 | 1.8 | 0.7 | 2.5 | 0 | 0 | ||||||||
Gain from insurance proceeds related to Venezuela fire | 0 | 0 | (26.4) | ||||||||||||
Accrual for clean-up costs related to destroyed facility in Venezuela | 0 | 0 | 7.6 | ||||||||||||
Consumer [Member] | Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 359.5 | 354.7 | 679.5 | 679 | 1,414.8 | 1,438.3 | 1,394.2 | ||||||||
Segment profit | 81 | 83.8 | 139.4 | 146 | 360.2 | 339.4 | 342.3 | ||||||||
Professional [Member] | Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 123.3 | 123.4 | 238.4 | 237.6 | 471.1 | 502.7 | 100.5 | ||||||||
Segment profit | 24.1 | 24.3 | 49.7 | 53.5 | 103.9 | 104.8 | 5.1 | ||||||||
Other [Member] | Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 6.1 | 4.3 | 10.6 | 4.3 | 28.4 | 0 | 0 | ||||||||
Segment profit | $ 0.1 | $ 0.2 | $ (0.8) | $ 0.2 | $ 1.4 | $ 0 | $ 0 | ||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
SEGMENT DATA AND RELATED INF143
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales and Long-Lived Assets by Geographic Area - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net sales | $ 488.9 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 501 | $ 472.3 | $ 497.9 | $ 469.8 | $ 928.5 | $ 920.9 | $ 1,914.3 | $ 1,941 | $ 1,494.7 |
Long-lived assets, net | 1,111.8 | 1,087.1 | 1,117.2 | 1,111.8 | 1,087.1 | 1,117.2 | ||||||||
Previously Reported [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Long-lived assets, net | 1,107.1 | 1,107.1 | ||||||||||||
United States [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net sales | $ 263 | $ 267 | $ 510.7 | $ 511.4 | $ 1,043.7 | $ 1,021.9 | $ 832.8 | |||||||
Percentage of net sales by geographic location (percent) | 54.00% | 55.00% | 55.00% | 56.00% | 55.00% | 53.00% | 56.00% | |||||||
Long-lived assets, net | $ 853 | $ 854.7 | $ 845.5 | $ 853 | $ 854.7 | $ 845.5 | ||||||||
Percentage of long-lived assets, net by geographic location (percent) | 77.00% | 79.00% | 76.00% | 77.00% | 79.00% | 76.00% | ||||||||
United States [Member] | Previously Reported [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Long-lived assets, net | $ 874.7 | $ 874.7 | ||||||||||||
Outside of the United States [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net sales | $ 225.9 | $ 215.4 | $ 417.8 | $ 409.5 | $ 870.6 | $ 919.1 | $ 661.9 | |||||||
Percentage of net sales by geographic location (percent) | 46.00% | 45.00% | 45.00% | 44.00% | 45.00% | 47.00% | 44.00% | |||||||
Long-lived assets, net | $ 258.8 | $ 232.4 | $ 271.7 | $ 258.8 | $ 232.4 | $ 271.7 | ||||||||
Percentage of long-lived assets, net by geographic location (percent) | 23.00% | 21.00% | 24.00% | 23.00% | 21.00% | 24.00% |
SEGMENT DATA AND RELATED INF144
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales by Classes of Similar Products - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue from External Customer [Line Items] | ||||||||||||||
Net sales | $ 488.9 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 501 | $ 472.3 | $ 497.9 | $ 469.8 | $ 928.5 | $ 920.9 | $ 1,914.3 | $ 1,941 | $ 1,494.7 |
Color cosmetics [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net sales | $ 263.4 | $ 266 | $ 487.7 | $ 505.5 | $ 1,026.4 | $ 1,032.4 | $ 926.4 | |||||||
Percentage of net sales by classes of similar products | 54.00% | 55.00% | 52.00% | 55.00% | 54.00% | 53.00% | 62.00% | |||||||
Hair care [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net sales | $ 134.7 | $ 130 | $ 266.8 | $ 256.9 | $ 522.1 | $ 545 | $ 263.9 | |||||||
Percentage of net sales by classes of similar products | 27.00% | 27.00% | 29.00% | 28.00% | 27.00% | 28.00% | 18.00% | |||||||
Beauty care and fragrance [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net sales | $ 90.8 | $ 86.4 | $ 174 | $ 158.5 | $ 365.8 | $ 363.6 | $ 304.4 | |||||||
Percentage of net sales by classes of similar products | 19.00% | 18.00% | 19.00% | 17.00% | 19.00% | 19.00% | 20.00% |
SEGMENT DATA AND RELATED INF145
SEGMENT DATA AND RELATED INFORMATION - Additional Information - 10K (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015Country | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 30, 2016Country | |
Walmart [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 18.00% | 16.00% | 20.00% | |
Outside of the United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of countries in which entity operates (countries) | Country | 22 | 23 | ||
Pension Plans [Member] | Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pension-related cost | $ | $ 8.2 | $ 4.9 |
COMMITMENTS AND CONTINGENCIE146
COMMITMENTS AND CONTINGENCIES - Schedule of Minimum Rental Commitments Under Noncancelable Leases - 10K (Details) $ in Millions | Dec. 31, 2015USD ($) |
Capital leases | |
Total | $ 5.4 |
2,016 | 3.1 |
2,017 | 1.4 |
2,018 | 0.6 |
2,019 | 0.3 |
2,020 | 0 |
Thereafter | 0 |
Operating leases | |
Total | 127.1 |
2,016 | 22.6 |
2,017 | 17.7 |
2,018 | 14.4 |
2,019 | 12.8 |
2,020 | 7.7 |
Thereafter | $ 51.9 |
COMMITMENTS AND CONTINGENCIE147
COMMITMENTS AND CONTINGENCIES - Additional Information - 10K (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies [Abstract] | |||
Rental expense | $ 18.6 | $ 26.6 | $ 19.8 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information - 10K (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 08, 2013 | |
Related Party Transaction [Line Items] | ||||||
Common stock outstanding (shares) | 5,260 | |||||
Reimbursement Agreements termination period by either party | 90 days | 90 days | ||||
Insurance program renewal period | 5 years | 5 years | ||||
5 3/4% Senior Notes Due 2021 [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | 5.75% | ||
Products Corporation [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage Of Voting Capital Stock | 66.00% | |||||
Revlon Holdings [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Reimbursements from (to) related party | $ 0.3 | $ 0.2 | $ 0.2 | |||
Receivable balance | 0.2 | 0.1 | ||||
Reimbursement Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Reimbursements from (to) related party | (2.1) | (3.8) | (6.1) | |||
Receivable balance | 0.1 | 0 | ||||
Partial payment | $ 6.1 | |||||
Majority Shareholder [Member] | Related Party Expense, Advertising Inserts [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses - related party transaction | 0.2 | |||||
Majority Shareholder [Member] | Related Party Expense, Coupon Redemptions [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses - related party transaction | $ 24.8 | $ 16.1 | 32.9 | 35.8 | ||
Majority Shareholder [Member] | Related Party Expense, Coupon Redemption Processing [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses - related party transaction | 0.2 | 0.2 | 0.4 | $ 0.4 | ||
Majority Shareholder [Member] | Related Party Expense, Other Fees [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses - related party transaction | $ 0.2 | $ 0.1 | $ 0.1 | |||
Class A Common Stock [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage ownership of outstanding common stock by affiliate | 78.00% | |||||
Percentage voting power ownership by affiliate | 78.00% |
QUARTERLY RESULTS OF OPERATI149
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Quarterly Results Of Operations [Line Items] | ||||||||||||||||
Net sales | $ 488.9 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 501 | $ 472.3 | $ 497.9 | $ 469.8 | $ 928.5 | $ 920.9 | $ 1,914.3 | $ 1,941 | $ 1,494.7 | ||
Gross profit | 317.4 | 325.5 | 303.7 | 321.1 | 296.2 | 328 | 307.7 | 330.7 | 306.3 | 603.1 | 617.3 | 1,246.5 | 1,272.7 | 949.6 | ||
Income from continuing operations, net of taxes | 11.8 | 27.7 | 9.4 | 27.5 | 0.7 | 4.1 | 15.8 | 15.9 | 10.2 | 24.4 | 28.2 | 65.3 | 46 | 32 | ||
(Loss) income from discontinued operations, net of taxes | (2.5) | (1.4) | (1.7) | 0 | (0.1) | 0.4 | 0.4 | 3.7 | (3.2) | (2.1) | (0.1) | (3.2) | 1.3 | (30.4) | ||
Net income | 9.3 | 26.3 | $ 7.7 | 27.5 | 0.6 | $ 4.5 | 16.2 | 19.6 | 7 | 22.3 | 28.1 | [1] | 62.1 | 47.3 | 1.6 | |
Foreign currency losses, net - revaluation of intercompany payables | 15.9 | |||||||||||||||
Foreign currency losses from re-measurement of Venezuelan balance sheet | $ 1.9 | $ 0.6 | 4.2 | 8.8 | [1] | 19.5 | 25.5 | 5.9 | ||||||||
Lump sum settlement charge | 20.7 | |||||||||||||||
Goodwill impairment charge | 9.7 | 9.7 | 0 | 0 | ||||||||||||
Restructuring charges and other, net | 0.5 | (3.6) | 1.8 | (3.1) | 10.5 | 21.3 | 3.5 | |||||||||
Acquisition and integration costs | $ 5.5 | $ 4.7 | 6 | $ 5.9 | 8 | 6.4 | 25.4 | |||||||||
Gain (loss) on early extinguishment of debt | (1.9) | 0 | (2) | (29.7) | ||||||||||||
Foreign currency losses, net | $ 9.3 | $ 7.2 | ||||||||||||||
Efficiency Program [Member] | ||||||||||||||||
Quarterly Results Of Operations [Line Items] | ||||||||||||||||
Restructuring charges and other, net | 9.5 | $ 1.2 | 9.5 | |||||||||||||
December 2013 Program [Member] | ||||||||||||||||
Quarterly Results Of Operations [Line Items] | ||||||||||||||||
Restructuring charges and other, net | 13.5 | 20 | ||||||||||||||
The Colomer Group Participations, S.L. [Member] | ||||||||||||||||
Quarterly Results Of Operations [Line Items] | ||||||||||||||||
Acquisition and integration costs | $ 3.8 | $ 2.1 | $ 6.4 | $ 25.4 | ||||||||||||
Global Color Brands Reporting Unit [Member] | ||||||||||||||||
Quarterly Results Of Operations [Line Items] | ||||||||||||||||
Goodwill impairment charge | $ 9.7 | |||||||||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
GUARANTOR FINANCIAL INFORMAT150
GUARANTOR FINANCIAL INFORMATION - Condensed Balance Sheet Statement - 10K (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | $ 185.8 | $ 326.9 | [1] | $ 199 | [1] | $ 275.3 | [1] | $ 244.1 | $ 116.3 |
Trade receivables, less allowances for doubtful accounts | 268.4 | 244.9 | [1] | 238.9 | |||||
Inventories | 209.6 | 183.8 | [1] | 156.6 | |||||
Deferred income taxes - current | 58 | 58.4 | |||||||
Prepaid expenses and other | 74.3 | 53.3 | [1] | 44.6 | |||||
Intercompany receivables | 0 | 0 | |||||||
Investment in subsidiaries | 0 | 0 | |||||||
Property, plant and equipment, net | 216.8 | 215.3 | [1] | 212 | |||||
Deferred income taxes - noncurrent | 41.7 | 49.8 | [1] | 34.8 | |||||
Goodwill | 476.7 | 469.7 | [1] | 464.1 | 472.3 | ||||
Intangible assets, net | 328.9 | 318 | [1] | 327.8 | |||||
Other assets | 89.4 | 84.1 | [1] | 113.3 | |||||
Total assets | 2,018.8 | 2,063.2 | [1] | 2,031.2 | |||||
Short-term borrowings | 14.1 | 11.3 | [1] | 6.6 | |||||
Current portion of long-term debt | 6.8 | 30 | [1] | 31.5 | |||||
Accounts payable | 187.6 | 201.3 | [1] | 153.5 | |||||
Accrued expenses and other | 233.2 | 272.4 | [1] | 273.3 | |||||
Intercompany payables | 0 | 0 | |||||||
Long-term debt | 1,783.6 | 1,783.7 | [1] | 1,832.4 | |||||
Other long-term liabilities | 72.8 | 70.8 | [1] | 90 | |||||
Total liabilities | 2,476.3 | 2,554.8 | |||||||
Total stockholder's deficiency | (457.5) | (491.6) | [1] | (557) | (516.5) | (576.7) | |||
Total liabilities and stockholder's deficiency | 2,018.8 | 2,063.2 | [1] | 2,031.2 | |||||
Products Corporation [Member] | |||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | 61.9 | 141.5 | 104.2 | 141.3 | 59.1 | ||||
Trade receivables, less allowances for doubtful accounts | 79.7 | 87.8 | |||||||
Inventories | 88.1 | 75.5 | |||||||
Deferred income taxes - current | 49.4 | 46.2 | |||||||
Prepaid expenses and other | 136.9 | 119 | |||||||
Intercompany receivables | 692.1 | 992.5 | |||||||
Investment in subsidiaries | 591 | 562.8 | |||||||
Property, plant and equipment, net | 124.8 | 112.4 | |||||||
Deferred income taxes - noncurrent | 3.1 | 22.6 | |||||||
Goodwill | 182.4 | 185.8 | |||||||
Intangible assets, net | 56.6 | 53.2 | |||||||
Other assets | 69.4 | 83.2 | |||||||
Total assets | 2,215 | 2,445.2 | |||||||
Short-term borrowings | 0 | 0 | |||||||
Current portion of long-term debt | 29.9 | 31.5 | |||||||
Accounts payable | 85.3 | 68.3 | |||||||
Accrued expenses and other | 175.1 | 159 | |||||||
Intercompany payables | 360.4 | 672.9 | |||||||
Long-term debt | 1,803.2 | 1,831.7 | |||||||
Other long-term liabilities | 252.7 | 238.8 | |||||||
Total liabilities | 2,706.6 | 3,002.2 | |||||||
Total stockholder's deficiency | (491.6) | (557) | |||||||
Total liabilities and stockholder's deficiency | 2,215 | 2,445.2 | |||||||
Guarantor Subsidiaries [Member] | |||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | 71.4 | 93 | 88.1 | 0.8 | 0 | ||||
Trade receivables, less allowances for doubtful accounts | 44.5 | 39.7 | |||||||
Inventories | 34.5 | 30.6 | |||||||
Deferred income taxes - current | 0 | 0 | |||||||
Prepaid expenses and other | 3.3 | 6.2 | |||||||
Intercompany receivables | 366.5 | 630 | |||||||
Investment in subsidiaries | 16.3 | (161.4) | |||||||
Property, plant and equipment, net | 28.1 | 28 | |||||||
Deferred income taxes - noncurrent | 0 | 0 | |||||||
Goodwill | 30 | 30 | |||||||
Intangible assets, net | 156.7 | 164.6 | |||||||
Other assets | 9.6 | 2.9 | |||||||
Total assets | 782.5 | 858.7 | |||||||
Short-term borrowings | 0 | 0 | |||||||
Current portion of long-term debt | 0 | 0 | |||||||
Accounts payable | 29.2 | 19 | |||||||
Accrued expenses and other | 18.9 | 24.5 | |||||||
Intercompany payables | 401 | 703.6 | |||||||
Long-term debt | 0 | 0 | |||||||
Other long-term liabilities | 0.8 | 4.4 | |||||||
Total liabilities | 449.9 | 751.5 | |||||||
Total stockholder's deficiency | 332.6 | 107.2 | |||||||
Total liabilities and stockholder's deficiency | 782.5 | 858.7 | |||||||
Non-Guarantor Subsidiaries [Member] | |||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | 52.5 | 92.4 | 83 | 102 | 57.2 | ||||
Trade receivables, less allowances for doubtful accounts | 120.7 | 111.4 | |||||||
Inventories | 61.2 | 50.5 | |||||||
Deferred income taxes - current | 8.6 | 12.2 | |||||||
Prepaid expenses and other | 30.5 | 24.8 | |||||||
Intercompany receivables | 95.2 | 129.6 | |||||||
Investment in subsidiaries | 0 | 0 | |||||||
Property, plant and equipment, net | 62.4 | 71.6 | |||||||
Deferred income taxes - noncurrent | 35.4 | 12.2 | |||||||
Goodwill | 257.3 | 248.3 | |||||||
Intangible assets, net | 104.7 | 110 | |||||||
Other assets | 25.1 | 27.2 | |||||||
Total assets | 893.5 | 880.8 | |||||||
Short-term borrowings | 11.3 | 6.6 | |||||||
Current portion of long-term debt | 0.1 | 0 | |||||||
Accounts payable | 86.8 | 66.2 | |||||||
Accrued expenses and other | 78.4 | 89.8 | |||||||
Intercompany payables | 392.4 | 375.6 | |||||||
Long-term debt | 0.5 | 0.7 | |||||||
Other long-term liabilities | 49.3 | 47.7 | |||||||
Total liabilities | 618.8 | 586.6 | |||||||
Total stockholder's deficiency | 274.7 | 294.2 | |||||||
Total liabilities and stockholder's deficiency | 893.5 | 880.8 | |||||||
Consolidated [Member] | |||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | 326.9 | 275.3 | 244.1 | 116.3 | |||||
Trade receivables, less allowances for doubtful accounts | 244.9 | 238.9 | |||||||
Inventories | 183.8 | 156.6 | |||||||
Deferred income taxes - current | 58 | 58.4 | |||||||
Prepaid expenses and other | 170.7 | 150 | |||||||
Intercompany receivables | 0 | 0 | |||||||
Investment in subsidiaries | 0 | 0 | |||||||
Property, plant and equipment, net | 215.3 | 212 | |||||||
Deferred income taxes - noncurrent | 38.5 | 34.8 | |||||||
Goodwill | 469.7 | 464.1 | |||||||
Intangible assets, net | 318 | 327.8 | |||||||
Other assets | 104.1 | 113.3 | |||||||
Total assets | 2,129.9 | 2,031.2 | |||||||
Short-term borrowings | 11.3 | 6.6 | |||||||
Current portion of long-term debt | 30 | 31.5 | |||||||
Accounts payable | 201.3 | 153.5 | |||||||
Accrued expenses and other | 272.4 | 273.3 | |||||||
Intercompany payables | 0 | 0 | |||||||
Long-term debt | 1,803.7 | 1,832.4 | |||||||
Other long-term liabilities | 302.8 | 290.9 | |||||||
Total liabilities | 2,621.5 | 2,588.2 | |||||||
Total stockholder's deficiency | (491.6) | (557) | |||||||
Total liabilities and stockholder's deficiency | 2,129.9 | 2,031.2 | |||||||
Eliminations [Member] | |||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | 0 | 0 | $ 0 | 0 | $ 0 | $ 0 | |||
Trade receivables, less allowances for doubtful accounts | 0 | 0 | 0 | ||||||
Inventories | 0 | 0 | 0 | ||||||
Deferred income taxes - current | 0 | 0 | |||||||
Prepaid expenses and other | 0 | 0 | |||||||
Intercompany receivables | (1,309.3) | (1,153.8) | (1,752.1) | ||||||
Investment in subsidiaries | (570.2) | (607.3) | (401.4) | ||||||
Property, plant and equipment, net | 0 | 0 | 0 | ||||||
Deferred income taxes - noncurrent | 0 | 0 | 0 | ||||||
Goodwill | 0 | 0 | 0 | ||||||
Intangible assets, net | 0 | 0 | 0 | ||||||
Other assets | 0 | 0 | 0 | ||||||
Total assets | (1,879.5) | (1,761.1) | (2,153.5) | ||||||
Short-term borrowings | 0 | 0 | 0 | ||||||
Current portion of long-term debt | 0 | 0 | 0 | ||||||
Accounts payable | 0 | 0 | 0 | ||||||
Accrued expenses and other | 0 | 0 | 0 | ||||||
Intercompany payables | (1,309.3) | (1,153.8) | (1,752.1) | ||||||
Long-term debt | 0 | 0 | 0 | ||||||
Other long-term liabilities | 0 | 0 | |||||||
Total liabilities | (1,309.3) | (1,153.8) | (1,752.1) | ||||||
Total stockholder's deficiency | (570.2) | (607.3) | (401.4) | ||||||
Total liabilities and stockholder's deficiency | $ (1,879.5) | $ (1,761.1) | $ (2,153.5) | ||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
GUARANTOR FINANCIAL INFORMAT151
GUARANTOR FINANCIAL INFORMATION - Statements of Income and Comprehensive Income - 10K (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | $ 488.9 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 501 | $ 472.3 | $ 497.9 | $ 469.8 | $ 928.5 | $ 920.9 | $ 1,914.3 | $ 1,941 | $ 1,494.7 | ||||
Cost of sales | 171.5 | 161.3 | 325.4 | 303.6 | 667.8 | 668.3 | 545.1 | |||||||||||
Gross profit | 317.4 | 325.5 | 303.7 | 321.1 | 296.2 | 328 | 307.7 | 330.7 | 306.3 | 603.1 | 617.3 | 1,246.5 | 1,272.7 | 949.6 | ||||
Selling, general and administrative expenses | 256.8 | 256.9 | 502.6 | 503.8 | 993.5 | 999.7 | 723.6 | |||||||||||
Acquisition and integration costs | 5.5 | 4.7 | 6 | 5.9 | 8 | 6.4 | 25.4 | |||||||||||
Restructuring charges and other, net | 0.5 | (3.6) | 1.8 | (3.1) | 10.5 | 21.3 | 3.5 | |||||||||||
Goodwill impairment charge | 9.7 | 9.7 | 0 | 0 | ||||||||||||||
Operating income | 54.6 | 63.1 | 92.7 | 110.7 | 224.8 | 245.3 | 197.1 | |||||||||||
Intercompany interest, net | 0 | 0 | 0 | 0 | ||||||||||||||
Interest expense | 20.9 | 20.5 | 41.9 | 40.5 | 83.3 | 84.4 | 78.6 | |||||||||||
Amortization of debt issuance costs | 1.4 | 1.4 | 2.9 | 2.8 | [1] | 5.7 | 5.5 | 3.5 | ||||||||||
Loss on early extinguishment of debt | 1.9 | 0 | 2 | 29.7 | ||||||||||||||
Foreign currency losses (gains), net | 8.5 | (7.9) | 5.1 | 8 | 15.7 | 25 | 3.7 | |||||||||||
Miscellaneous, net | 0.2 | 0.2 | 0.5 | 0.2 | 0.4 | 1.2 | 1 | |||||||||||
Other expenses, net | 31 | 14.2 | 50.4 | 51.5 | 105.1 | 118.1 | 116.5 | |||||||||||
Income from continuing operations before income taxes | 23.6 | 48.9 | 42.3 | 59.2 | 119.7 | 127.2 | 80.6 | |||||||||||
Provision for income taxes | 11.8 | 21.4 | 17.9 | 31 | 54.4 | 81.2 | 48.6 | |||||||||||
Income from continuing operations, net of taxes | 11.8 | 27.7 | 9.4 | 27.5 | 0.7 | 4.1 | 15.8 | 15.9 | 10.2 | 24.4 | 28.2 | 65.3 | 46 | 32 | ||||
(Loss) income from discontinued operations, net of taxes | (2.5) | (1.4) | (1.7) | 0 | (0.1) | 0.4 | 0.4 | 3.7 | (3.2) | (2.1) | (0.1) | (3.2) | 1.3 | (30.4) | ||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||||||||||||||
Net income | 9.3 | $ 26.3 | $ 7.7 | 27.5 | $ 0.6 | $ 4.5 | $ 16.2 | $ 19.6 | $ 7 | 22.3 | 28.1 | [1] | 62.1 | 47.3 | 1.6 | |||
Other comprehensive (loss) income | 4.8 | 2.5 | 8.4 | [2] | (11.1) | (2.1) | [3] | (93.4) | [3] | 58.4 | ||||||||
Total comprehensive income (loss) | 14.1 | 30 | 30.7 | 17 | 60 | (46.1) | 60 | |||||||||||
Products Corporation [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | 1,049.4 | 1,001.1 | 972.8 | |||||||||||||||
Cost of sales | 466 | 430.5 | 438.4 | |||||||||||||||
Gross profit | 583.4 | 570.6 | 534.4 | |||||||||||||||
Selling, general and administrative expenses | 495 | 466.6 | 418.1 | |||||||||||||||
Acquisition and integration costs | 7.1 | 6.4 | 24.2 | |||||||||||||||
Restructuring charges and other, net | 6.6 | 2.9 | 0 | |||||||||||||||
Goodwill impairment charge | 9.7 | |||||||||||||||||
Operating income | 65 | 94.7 | 92.1 | |||||||||||||||
Intercompany interest, net | (8.2) | (8) | (0.8) | |||||||||||||||
Interest expense | 82.5 | 83.6 | 72.9 | |||||||||||||||
Amortization of debt issuance costs | 5.7 | 5.5 | 3.5 | |||||||||||||||
Loss on early extinguishment of debt | 2 | 29.7 | ||||||||||||||||
Foreign currency losses (gains), net | 0.4 | (3.1) | 3.2 | |||||||||||||||
Miscellaneous, net | (54.2) | (48) | (2.4) | |||||||||||||||
Other expenses, net | 26.2 | 32 | 106.1 | |||||||||||||||
Income from continuing operations before income taxes | 38.8 | 62.7 | (14) | |||||||||||||||
Provision for income taxes | 16 | 85.8 | 39.9 | |||||||||||||||
Income from continuing operations, net of taxes | 22.8 | (23.1) | (53.9) | |||||||||||||||
(Loss) income from discontinued operations, net of taxes | 0 | 0.2 | 0.3 | |||||||||||||||
Equity in income (loss) of subsidiaries | 39.3 | 70.2 | 55.2 | |||||||||||||||
Net income | 62.1 | 47.3 | 1.6 | |||||||||||||||
Other comprehensive (loss) income | (2.1) | (93.4) | 58.4 | |||||||||||||||
Total comprehensive income (loss) | 60 | (46.1) | 60 | |||||||||||||||
Guarantor Subsidiaries [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | 340.4 | 356.8 | 90.5 | |||||||||||||||
Cost of sales | 129.4 | 146.9 | 45.6 | |||||||||||||||
Gross profit | 211 | 209.9 | 44.9 | |||||||||||||||
Selling, general and administrative expenses | 131.2 | 133.3 | 37.8 | |||||||||||||||
Acquisition and integration costs | 0 | 0 | 0 | |||||||||||||||
Restructuring charges and other, net | 0.4 | 3.3 | 0.4 | |||||||||||||||
Goodwill impairment charge | 0 | |||||||||||||||||
Operating income | 79.4 | 73.3 | 6.7 | |||||||||||||||
Intercompany interest, net | (0.1) | (0.4) | (0.6) | |||||||||||||||
Interest expense | 0 | 0.1 | 0.3 | |||||||||||||||
Amortization of debt issuance costs | 0 | 0 | 0 | |||||||||||||||
Loss on early extinguishment of debt | 0 | 0 | ||||||||||||||||
Foreign currency losses (gains), net | (0.6) | (0.1) | 1.3 | |||||||||||||||
Miscellaneous, net | (0.1) | (8.2) | (11.5) | |||||||||||||||
Other expenses, net | (0.8) | (8.6) | (10.5) | |||||||||||||||
Income from continuing operations before income taxes | 80.2 | 81.9 | 17.2 | |||||||||||||||
Provision for income taxes | 36.2 | (8.4) | 0.3 | |||||||||||||||
Income from continuing operations, net of taxes | 44 | 90.3 | 16.9 | |||||||||||||||
(Loss) income from discontinued operations, net of taxes | 0 | 0 | 0 | |||||||||||||||
Equity in income (loss) of subsidiaries | 43.1 | 1.5 | 24.6 | |||||||||||||||
Net income | 87.1 | 91.8 | 41.5 | |||||||||||||||
Other comprehensive (loss) income | (1.5) | 9.3 | 16.7 | |||||||||||||||
Total comprehensive income (loss) | 85.6 | 101.1 | 58.2 | |||||||||||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | 730.7 | 771.5 | 626.6 | |||||||||||||||
Cost of sales | 278.6 | 279.3 | 256.3 | |||||||||||||||
Gross profit | 452.1 | 492.2 | 370.3 | |||||||||||||||
Selling, general and administrative expenses | 367.3 | 399.8 | 267.7 | |||||||||||||||
Acquisition and integration costs | 0.9 | 0 | 1.2 | |||||||||||||||
Restructuring charges and other, net | 3.5 | 15.1 | 3.1 | |||||||||||||||
Goodwill impairment charge | 0 | |||||||||||||||||
Operating income | 80.4 | 77.3 | 98.3 | |||||||||||||||
Intercompany interest, net | 8.3 | 8.4 | 6.2 | |||||||||||||||
Interest expense | 0.8 | 0.7 | 0.6 | |||||||||||||||
Amortization of debt issuance costs | 0 | 0 | 0 | |||||||||||||||
Loss on early extinguishment of debt | 0 | 0 | ||||||||||||||||
Foreign currency losses (gains), net | 15.9 | 28.2 | (0.8) | |||||||||||||||
Miscellaneous, net | 54.7 | 57.4 | 14.9 | |||||||||||||||
Other expenses, net | 79.7 | 94.7 | 20.9 | |||||||||||||||
Income from continuing operations before income taxes | 0.7 | (17.4) | 77.4 | |||||||||||||||
Provision for income taxes | 2.2 | 3.8 | 8.4 | |||||||||||||||
Income from continuing operations, net of taxes | (1.5) | (21.2) | 69 | |||||||||||||||
(Loss) income from discontinued operations, net of taxes | (3.2) | 1.1 | (30.7) | |||||||||||||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | |||||||||||||||
Net income | (4.7) | (20.1) | 38.3 | |||||||||||||||
Other comprehensive (loss) income | (18.8) | (15.8) | 10.2 | |||||||||||||||
Total comprehensive income (loss) | (23.5) | (35.9) | 48.5 | |||||||||||||||
Consolidated [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | 1,914.3 | 1,941 | 1,494.7 | |||||||||||||||
Cost of sales | 667.8 | 668.3 | 545.1 | |||||||||||||||
Gross profit | 1,246.5 | 1,272.7 | 949.6 | |||||||||||||||
Selling, general and administrative expenses | 993.5 | 999.7 | 723.6 | |||||||||||||||
Acquisition and integration costs | 8 | 6.4 | 25.4 | |||||||||||||||
Restructuring charges and other, net | 10.5 | 21.3 | 3.5 | |||||||||||||||
Goodwill impairment charge | 9.7 | |||||||||||||||||
Operating income | 224.8 | 245.3 | 197.1 | |||||||||||||||
Intercompany interest, net | 0 | 0 | 4.8 | |||||||||||||||
Interest expense | 83.3 | 84.4 | 73.8 | |||||||||||||||
Amortization of debt issuance costs | 5.7 | 5.5 | 3.5 | |||||||||||||||
Loss on early extinguishment of debt | 2 | 29.7 | ||||||||||||||||
Foreign currency losses (gains), net | 15.7 | 25 | 3.7 | |||||||||||||||
Miscellaneous, net | 0.4 | 1.2 | 1 | |||||||||||||||
Other expenses, net | 105.1 | 118.1 | 116.5 | |||||||||||||||
Income from continuing operations before income taxes | 119.7 | 127.2 | 80.6 | |||||||||||||||
Provision for income taxes | 54.4 | 81.2 | 48.6 | |||||||||||||||
Income from continuing operations, net of taxes | 65.3 | 46 | 32 | |||||||||||||||
(Loss) income from discontinued operations, net of taxes | (3.2) | 1.3 | (30.4) | |||||||||||||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | |||||||||||||||
Net income | 62.1 | 47.3 | 1.6 | |||||||||||||||
Other comprehensive (loss) income | (2.1) | (93.4) | 58.4 | |||||||||||||||
Total comprehensive income (loss) | 60 | (46.1) | 60 | |||||||||||||||
Eliminations [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | (13.9) | (49.9) | (14.2) | (92) | (206.2) | (188.4) | (195.2) | |||||||||||
Cost of sales | (13.9) | (49.9) | (14.2) | (92) | (206.2) | (188.4) | (195.2) | |||||||||||
Gross profit | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Acquisition and integration costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Restructuring charges and other, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Goodwill impairment charge | 0 | |||||||||||||||||
Operating income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Intercompany interest, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Interest expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Amortization of debt issuance costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Loss on early extinguishment of debt | 0 | 0 | ||||||||||||||||
Foreign currency losses (gains), net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Miscellaneous, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Other expenses, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Income from continuing operations before income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Provision for income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Income from continuing operations, net of taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
(Loss) income from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Equity in income (loss) of subsidiaries | 9 | (58.5) | 20.3 | (38.1) | (82.4) | (71.7) | (79.8) | |||||||||||
Net income | 9 | (58.5) | 20.3 | (38.1) | (82.4) | (71.7) | (79.8) | |||||||||||
Other comprehensive (loss) income | 8.5 | 0 | 15.7 | 16.1 | 20.3 | 6.5 | (26.9) | |||||||||||
Total comprehensive income (loss) | $ 17.5 | $ (58.5) | $ 36 | $ (22) | $ (62.1) | $ (65.2) | $ (106.7) | |||||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. | |||||||||||||||||
[2] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive income during the six months ended June 30, 2016. | |||||||||||||||||
[3] | See Note 17, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during each of 2015, 2014 and 2013. |
GUARANTOR FINANCIAL INFORMAT152
GUARANTOR FINANCIAL INFORMATION - Statement of Cash Flows - 10K (Details) - USD ($) $ in Millions | Feb. 08, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Net cash (used in) provided by operating activities | $ (57.2) | $ 2.5 | [1] | $ 155.3 | $ 174 | $ 123.3 | ||||
Capital expenditures | (18.6) | (17.2) | [1] | (48.3) | (55.5) | (28.6) | ||||
Business acquisitions, net of cash acquired | (29.2) | (34.2) | [1] | (41.7) | 0 | (627.6) | ||||
Insurance proceeds for property, plant and equipment | 0 | 0 | 13.1 | |||||||
Proceeds from the sale of certain assets | 0.4 | 2 | [1] | 6.2 | 3.4 | 3.7 | ||||
Net cash used in investing activities | (47.4) | (49.4) | [1] | (83.8) | (52.1) | (639.4) | ||||
Net increase (decrease) in short-term borrowings and overdraft | (8.4) | 6.6 | [1] | 23 | (4.7) | (6.3) | ||||
Repayments of long-term debt | (15.1) | (15.9) | [1] | |||||||
Repayment of Contributed Loan | 0 | 0 | (48.6) | |||||||
Payment of financing costs | 0 | (1.8) | (48.8) | |||||||
Other financing activities | (1.6) | (2.1) | [1] | (3.7) | (3.2) | (2.6) | ||||
Net cash (used in) provided by financing activities | (36.6) | (23.5) | [1] | (12.1) | (75.1) | 649 | ||||
Effect of exchange rate changes on cash and cash equivalents | 0.1 | (5.9) | [1] | (7.8) | (15.6) | (5.1) | ||||
Net increase (decrease) in cash and cash equivalents | (141.1) | (76.3) | [1] | 51.6 | 31.2 | 127.8 | ||||
Cash and cash equivalents at beginning of period | 326.9 | [1] | 275.3 | [1] | 275.3 | [1] | 244.1 | 116.3 | ||
Cash and cash equivalents at end of period | 185.8 | 199 | [1] | 326.9 | [1] | 275.3 | [1] | 244.1 | ||
Products Corporation [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Net cash (used in) provided by operating activities | (27.2) | 89.1 | 77.3 | 76.9 | ||||||
Capital expenditures | (13.2) | (29.5) | (40.3) | (21.1) | ||||||
Business acquisitions, net of cash acquired | 0 | (8.1) | (627.6) | |||||||
Insurance proceeds for property, plant and equipment | 0 | |||||||||
Proceeds from the sale of certain assets | 0 | 3.5 | 0 | 0.3 | ||||||
Net cash used in investing activities | (13.2) | (34.1) | (40.3) | (648.4) | ||||||
Net increase (decrease) in short-term borrowings and overdraft | (11.2) | 17.3 | (4.2) | (2) | ||||||
Repayments of long-term debt | (15.1) | |||||||||
Payment of financing costs | (1.8) | |||||||||
Other financing activities | (1.4) | (3.6) | (2.7) | (2.2) | ||||||
Net cash (used in) provided by financing activities | (39.2) | (17.7) | (74.1) | 653.7 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | ||||||
Net increase (decrease) in cash and cash equivalents | (79.6) | 37.3 | (37.1) | 82.2 | ||||||
Cash and cash equivalents at beginning of period | 141.5 | 104.2 | 104.2 | 141.3 | 59.1 | |||||
Cash and cash equivalents at beginning of period, including additional guarantors | 141.3 | |||||||||
Cash and cash equivalents at end of period | 61.9 | 141.5 | 104.2 | 141.3 | ||||||
Guarantor Subsidiaries [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Net cash (used in) provided by operating activities | (20.4) | 7.9 | 78 | 4.6 | ||||||
Capital expenditures | (1.2) | (5.5) | (2.4) | (0.6) | ||||||
Business acquisitions, net of cash acquired | 0 | 0 | 0 | |||||||
Insurance proceeds for property, plant and equipment | 0 | |||||||||
Proceeds from the sale of certain assets | 0.4 | 2.7 | 0 | 0 | ||||||
Net cash used in investing activities | (0.8) | (2.8) | (2.4) | (0.6) | ||||||
Net increase (decrease) in short-term borrowings and overdraft | 0 | 0 | (1.9) | (3.2) | ||||||
Repayments of long-term debt | 0 | |||||||||
Payment of financing costs | 0 | |||||||||
Other financing activities | 0 | 0 | 0 | 0 | ||||||
Net cash (used in) provided by financing activities | 0 | 0 | (1.9) | (3.2) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (0.4) | (0.2) | (0.1) | 0 | ||||||
Net increase (decrease) in cash and cash equivalents | (21.6) | 4.9 | 73.6 | 0.8 | ||||||
Cash and cash equivalents at beginning of period | 93 | 88.1 | 88.1 | 0.8 | 0 | |||||
Cash and cash equivalents at beginning of period, including additional guarantors | 14.5 | |||||||||
Cash and cash equivalents at end of period | 71.4 | 93 | 88.1 | 0.8 | ||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Net cash (used in) provided by operating activities | (9.6) | 58.3 | 18.7 | 41.8 | ||||||
Capital expenditures | (4.2) | (13.3) | (12.8) | (6.9) | ||||||
Business acquisitions, net of cash acquired | (29.2) | (33.6) | 0 | |||||||
Insurance proceeds for property, plant and equipment | 13.1 | |||||||||
Proceeds from the sale of certain assets | 0 | 0 | 3.4 | 3.4 | ||||||
Net cash used in investing activities | (33.4) | (46.9) | (9.4) | 9.6 | ||||||
Net increase (decrease) in short-term borrowings and overdraft | 2.8 | 5.7 | 1.4 | (1.1) | ||||||
Repayments of long-term debt | 0 | |||||||||
Payment of financing costs | 0 | |||||||||
Other financing activities | (0.2) | (0.1) | (0.5) | (0.4) | ||||||
Net cash (used in) provided by financing activities | 2.6 | 5.6 | 0.9 | (1.5) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 0.5 | (7.6) | (15.5) | (5.1) | ||||||
Net increase (decrease) in cash and cash equivalents | (39.9) | 9.4 | (5.3) | 44.8 | ||||||
Cash and cash equivalents at beginning of period | 92.4 | 83 | 83 | 102 | 57.2 | |||||
Cash and cash equivalents at beginning of period, including additional guarantors | 88.3 | |||||||||
Cash and cash equivalents at end of period | 52.5 | 92.4 | 83 | 102 | ||||||
Consolidated [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Net cash (used in) provided by operating activities | 155.3 | 174 | 123.3 | |||||||
Capital expenditures | (48.3) | (55.5) | (28.6) | |||||||
Business acquisitions, net of cash acquired | (41.7) | (627.6) | ||||||||
Insurance proceeds for property, plant and equipment | 13.1 | |||||||||
Proceeds from the sale of certain assets | 6.2 | 3.4 | 3.7 | |||||||
Net cash used in investing activities | (83.8) | (52.1) | (639.4) | |||||||
Net increase (decrease) in short-term borrowings and overdraft | 23 | (4.7) | (6.3) | |||||||
Payment of financing costs | (1.8) | |||||||||
Other financing activities | (3.7) | (3.2) | (2.6) | |||||||
Net cash (used in) provided by financing activities | (12.1) | (75.1) | 649 | |||||||
Effect of exchange rate changes on cash and cash equivalents | (7.8) | (15.6) | (5.1) | |||||||
Net increase (decrease) in cash and cash equivalents | 51.6 | 31.2 | 127.8 | |||||||
Cash and cash equivalents at beginning of period | 326.9 | 275.3 | 275.3 | 244.1 | 116.3 | |||||
Cash and cash equivalents at beginning of period, including additional guarantors | 244.1 | |||||||||
Cash and cash equivalents at end of period | 326.9 | 275.3 | 244.1 | |||||||
Eliminations [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Net cash (used in) provided by operating activities | 0 | 0 | 0 | 0 | 0 | |||||
Capital expenditures | 0 | 0 | 0 | 0 | 0 | |||||
Business acquisitions, net of cash acquired | 0 | 0 | 0 | 0 | ||||||
Insurance proceeds for property, plant and equipment | 0 | |||||||||
Proceeds from the sale of certain assets | 0 | 0 | 0 | 0 | 0 | |||||
Net cash used in investing activities | 0 | 0 | 0 | 0 | 0 | |||||
Net increase (decrease) in short-term borrowings and overdraft | 0 | 0 | 0 | 0 | 0 | |||||
Repayments of long-term debt | 0 | 0 | ||||||||
Payment of financing costs | 0 | |||||||||
Other financing activities | 0 | 0 | 0 | 0 | 0 | |||||
Net cash (used in) provided by financing activities | 0 | 0 | 0 | 0 | 0 | |||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | |||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | |||||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | 0 | |||||
Cash and cash equivalents at beginning of period, including additional guarantors | 0 | |||||||||
Cash and cash equivalents at end of period | $ 0 | $ 0 | 0 | 0 | 0 | |||||
Amended and Restated Senior Subordinated Term Loan [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | 0 | (58.4) | 0 | |||||||
Amended and Restated Senior Subordinated Term Loan [Member] | Products Corporation [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | (58.4) | |||||||||
Amended and Restated Senior Subordinated Term Loan [Member] | Guarantor Subsidiaries [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | 0 | |||||||||
Amended and Restated Senior Subordinated Term Loan [Member] | Non-Guarantor Subsidiaries [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | 0 | |||||||||
Amended and Restated Senior Subordinated Term Loan [Member] | Consolidated [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | (58.4) | |||||||||
Amended and Restated Senior Subordinated Term Loan [Member] | Eliminations [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | 0 | |||||||||
Acquisition Term Loan [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Proceeds from issuance of long-term debt | 0 | 0 | 698.3 | |||||||
Repayments of long-term debt | (19.3) | (7) | 0 | |||||||
Acquisition Term Loan [Member] | Products Corporation [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Proceeds from issuance of long-term debt | 698.3 | |||||||||
Repayments of long-term debt | (19.3) | (7) | ||||||||
Acquisition Term Loan [Member] | Guarantor Subsidiaries [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Proceeds from issuance of long-term debt | 0 | |||||||||
Repayments of long-term debt | 0 | 0 | ||||||||
Acquisition Term Loan [Member] | Non-Guarantor Subsidiaries [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Proceeds from issuance of long-term debt | 0 | |||||||||
Repayments of long-term debt | 0 | 0 | ||||||||
Acquisition Term Loan [Member] | Consolidated [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Proceeds from issuance of long-term debt | 698.3 | |||||||||
Repayments of long-term debt | (19.3) | (7) | ||||||||
Acquisition Term Loan [Member] | Eliminations [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Proceeds from issuance of long-term debt | 0 | |||||||||
Repayments of long-term debt | 0 | 0 | ||||||||
5 3/4% Senior Notes Due 2021 [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Proceeds from issuance of long-term debt | 0 | 0 | 500 | |||||||
5 3/4% Senior Notes Due 2021 [Member] | Products Corporation [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Proceeds from issuance of long-term debt | 500 | |||||||||
5 3/4% Senior Notes Due 2021 [Member] | Guarantor Subsidiaries [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Proceeds from issuance of long-term debt | 0 | |||||||||
5 3/4% Senior Notes Due 2021 [Member] | Non-Guarantor Subsidiaries [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Proceeds from issuance of long-term debt | 0 | |||||||||
5 3/4% Senior Notes Due 2021 [Member] | Consolidated [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Proceeds from issuance of long-term debt | 500 | |||||||||
5 3/4% Senior Notes Due 2021 [Member] | Eliminations [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Proceeds from issuance of long-term debt | 0 | |||||||||
9.75% Senior Secured Notes Due 2015 [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | $ (330) | 0 | 0 | (330) | ||||||
9.75% Senior Secured Notes Due 2015 [Member] | Products Corporation [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | 330 | |||||||||
9.75% Senior Secured Notes Due 2015 [Member] | Guarantor Subsidiaries [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | 0 | |||||||||
9.75% Senior Secured Notes Due 2015 [Member] | Non-Guarantor Subsidiaries [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | 0 | |||||||||
9.75% Senior Secured Notes Due 2015 [Member] | Consolidated [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | 330 | |||||||||
9.75% Senior Secured Notes Due 2015 [Member] | Eliminations [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | 0 | |||||||||
2011 Term Loan [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | $ (113) | 0 | $ 0 | (113) | ||||||
2011 Term Loan [Member] | Products Corporation [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | (12.1) | (113) | ||||||||
Repayment of Contributed Loan | (48.6) | |||||||||
Payment of financing costs | (48.8) | |||||||||
2011 Term Loan [Member] | Guarantor Subsidiaries [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | 0 | 0 | ||||||||
Repayment of Contributed Loan | 0 | |||||||||
Payment of financing costs | 0 | |||||||||
2011 Term Loan [Member] | Non-Guarantor Subsidiaries [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | 0 | 0 | ||||||||
Repayment of Contributed Loan | 0 | |||||||||
Payment of financing costs | 0 | |||||||||
2011 Term Loan [Member] | Consolidated [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | (12.1) | (113) | ||||||||
Repayment of Contributed Loan | (48.6) | |||||||||
Payment of financing costs | (48.8) | |||||||||
2011 Term Loan [Member] | Eliminations [Member] | ||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||
Repayments of long-term debt | $ 0 | 0 | ||||||||
Repayment of Contributed Loan | 0 | |||||||||
Payment of financing costs | $ 0 | |||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
DESCRIPTION OF BUSINESS AND 153
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information - Q2 (Details) - Segment | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of operating segments | 3 | 3 |
DESCRIPTION OF BUSINESS AND 154
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of Adoption of New Accounting Pronouncements - Q2 (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||
Deferred income taxes - current | $ 58 | $ 58.4 | |||||
Deferred income taxes - noncurrent | $ 41.7 | 49.8 | [1] | 34.8 | |||
Other long-term liabilities | 72.8 | 70.8 | [1] | 90 | |||
Increase in prepaid expenses and other current assets | (31) | $ (25.1) | [1] | (32.6) | 4.5 | $ (12.3) | |
Decrease in accrued expenses and other current liabilities | (43.1) | (25.5) | [1] | 10.2 | (21.5) | $ (4.5) | |
Long-Term Debt | 1,783.6 | 1,783.7 | [1] | 1,832.4 | |||
Other Assets | $ 89.4 | 84.1 | [1] | $ 113.3 | |||
Accounting Standards Update 2015-17 [Member] | |||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||
Deferred income taxes - current | 0 | ||||||
Deferred income taxes - noncurrent | 49.8 | ||||||
Other long-term liabilities | 70.8 | ||||||
Increase in prepaid expenses and other current assets | (25.1) | ||||||
Decrease in accrued expenses and other current liabilities | (25.5) | ||||||
Accounting Standards Update 2015-03 [Member] | |||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||
Long-Term Debt | 1,783.7 | ||||||
Other Assets | 84.1 | ||||||
Scenario, Previously Reported [Member] | |||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||
Deferred income taxes - noncurrent | 38.5 | ||||||
Other long-term liabilities | 117.5 | ||||||
Long-Term Debt | 1,803.7 | ||||||
Other Assets | 104.1 | ||||||
Scenario, Previously Reported [Member] | Accounting Standards Update 2015-17 [Member] | |||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||
Deferred income taxes - current | 58 | ||||||
Deferred income taxes - noncurrent | 38.5 | ||||||
Other long-term liabilities | 117.5 | ||||||
Increase in prepaid expenses and other current assets | (25.2) | ||||||
Decrease in accrued expenses and other current liabilities | (25.4) | ||||||
Scenario, Previously Reported [Member] | Accounting Standards Update 2015-03 [Member] | |||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||
Long-Term Debt | 1,803.7 | ||||||
Other Assets | 104.1 | ||||||
Restatement Adjustment [Member] | Accounting Standards Update 2015-17 [Member] | |||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||
Deferred income taxes - current | (58) | ||||||
Deferred income taxes - noncurrent | 11.3 | ||||||
Other long-term liabilities | (46.7) | ||||||
Increase in prepaid expenses and other current assets | 0.1 | ||||||
Decrease in accrued expenses and other current liabilities | $ (0.1) | ||||||
Restatement Adjustment [Member] | Accounting Standards Update 2015-03 [Member] | |||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||
Long-Term Debt | (20) | ||||||
Other Assets | $ (20) | ||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
BUSINESS COMBINATIONS - Addi155
BUSINESS COMBINATIONS - Additional Information - Q2 (Details) - Cutex International [Member] - USD ($) $ in Millions | May 31, 2016 | Jun. 30, 2016 |
Business Acquisition [Line Items] | ||
Coty license agreement term | 20 years | |
Cash consideration | $ 29.1 |
BUSINESS COMBINATIONS - Sche156
BUSINESS COMBINATIONS - Schedule of Net Assets Acquired - Q2 (Details) - USD ($) $ in Millions | May 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2016 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 469.7 | [1] | $ 464.1 | $ 476.7 | $ 472.3 | |
Customer networks [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average remaining useful life | 16 years | 17 years | ||||
Cutex International [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Inventory | $ 0.8 | |||||
Purchased Intangible Assets | 19.7 | |||||
Goodwill | 8.6 | |||||
Total consideration | 29.1 | |||||
Cutex International [Member] | Trade names, indefinite-lived [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchased Intangible Assets | 4.8 | |||||
Cutex International [Member] | Customer networks [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchased Intangible Assets | $ 14 | |||||
Weighted average remaining useful life | 15 years | |||||
Cutex International [Member] | Intellectual property [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchased Intangible Assets | $ 0.9 | |||||
Weighted average remaining useful life | 10 years | |||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
RESTRUCTURING CHARGES - Addi157
RESTRUCTURING CHARGES - Additional Information - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and related charges | $ 0.5 | $ (3.6) | $ 1.8 | $ (3.1) | $ 10.5 | $ 21.3 | $ 3.5 | ||
Payments for restructuring | 3.7 | 12.4 | 22.6 | ||||||
Restructuring reserve within accrued expenses and other | 9.8 | $ 11.8 | 9.8 | 11.8 | 13.7 | ||||
Accrued Expenses and Other [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring reserve within accrued expenses and other | 9.8 | 11.8 | 9.8 | 11.8 | 13.7 | ||||
Efficiency Program [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and related charges | 9.5 | 1.2 | 9.5 | ||||||
Expected restructuring and related charges | 11.7 | 11.7 | |||||||
Restructuring and related charges to date | 10.7 | 9.5 | 10.7 | 9.5 | |||||
Expected cash payments | 12 | 10.3 | 12 | 10.3 | |||||
Expected cash payments, capital expenditures | 0.2 | 0.2 | 0.2 | 0.2 | |||||
Payments for restructuring | 1.6 | 2.8 | |||||||
Remaining expected restructuring costs | 6.2 | 6.2 | |||||||
Efficiency Program [Member] | Consumer Segment [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and related charges | 0.5 | 6 | |||||||
Expected restructuring and related charges | 6.9 | 6.1 | 6.9 | 6.1 | |||||
Restructuring and related charges to date | 6.5 | 6.5 | |||||||
Efficiency Program [Member] | Professional [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and related charges | 0.6 | 3.2 | |||||||
Expected restructuring and related charges | 4.4 | 3.7 | 4.4 | 3.7 | |||||
Restructuring and related charges to date | $ 3.8 | $ 3.8 | |||||||
December 2013 Program [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and related charges | $ 13.5 | 20 | |||||||
Expected restructuring and related charges | 18.9 | 18.9 | |||||||
Restructuring and related charges to date | 0 | 0 | 18.9 | ||||||
Expected cash payments | $ 17 | 17 | |||||||
Payments for restructuring | $ 0 | $ 15.5 | $ 0.1 |
RESTRUCTURING CHARGES - Rest158
RESTRUCTURING CHARGES - Restructuring and Related Charges - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and related charges | $ 0.5 | $ (3.6) | $ 1.8 | $ (3.1) | $ 10.5 | $ 21.3 | $ 3.5 | |
Efficiency Program [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Charges incurred | 10.7 | $ 9.5 | 10.7 | 9.5 | ||||
Restructuring and related charges | 9.5 | 1.2 | 9.5 | |||||
Total expected charges | 11.7 | 11.7 | ||||||
Efficiency Program [Member] | Employee Severance and Other Personnel Benefits [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Charges incurred | 10 | 9.4 | 10 | 9.4 | ||||
Restructuring and related charges | 0.6 | |||||||
Total expected charges | 10 | 9.5 | 10 | 9.5 | ||||
Efficiency Program [Member] | Other [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Charges incurred | 0.7 | 0.1 | 0.7 | 0.1 | ||||
Restructuring and related charges | 0.6 | |||||||
Total expected charges | $ 1.7 | $ 0.6 | $ 1.7 | $ 0.6 |
RESTRUCTURING CHARGES - Rest159
RESTRUCTURING CHARGES - Restructuring Reserve - Q2 (Details) $ in Millions | Dec. 30, 2013job_position | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)job_position | Dec. 31, 2013USD ($) |
Restructuring Reserve [Roll Forward] | |||||
Balance Beginning of Year | $ 11.8 | $ 14 | $ 13.7 | ||
(Income) Expense, Net | 1.8 | 10.5 | 23.4 | ||
Foreign Currency Translation | 0 | (0.3) | (0.5) | ||
Cash utilized, net | (3.7) | (12.4) | (22.6) | ||
Non-cash utilized, net | (0.1) | 0 | 0 | ||
Balance End of Year | 9.8 | 11.8 | 14 | $ 13.7 | |
Efficiency Program [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Cash utilized, net | (1.6) | (2.8) | |||
Efficiency Program [Member] | Employee Severance and Other Personnel Benefits [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance Beginning of Year | 6.6 | 0 | |||
(Income) Expense, Net | 0.6 | 9.4 | |||
Foreign Currency Translation | 0 | 0 | |||
Cash utilized, net | (1.2) | (2.8) | |||
Non-cash utilized, net | 0 | 0 | |||
Balance End of Year | 6 | 6.6 | 0 | ||
Efficiency Program [Member] | Other [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance Beginning of Year | 0.1 | 0 | |||
(Income) Expense, Net | 0.6 | 0.1 | |||
Foreign Currency Translation | 0 | 0 | |||
Cash utilized, net | (0.4) | 0 | |||
Non-cash utilized, net | (0.1) | 0 | |||
Balance End of Year | 0.2 | 0.1 | 0 | ||
Integration Program [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Cash utilized, net | (6.7) | (9.6) | |||
Integration Program [Member] | Employee Severance and Other Personnel Benefits [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance Beginning of Year | 0.8 | 9.6 | 0 | ||
(Income) Expense, Net | 0 | (3.4) | 17.3 | ||
Foreign Currency Translation | 0 | (0.2) | (0.1) | ||
Cash utilized, net | (0.8) | (5.2) | (7.6) | ||
Non-cash utilized, net | 0 | 0 | 0 | ||
Balance End of Year | 0 | 0.8 | 9.6 | 0 | |
Integration Program [Member] | Other [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance Beginning of Year | 0.1 | 0.1 | 0 | ||
(Income) Expense, Net | 0 | 0.6 | 1.6 | ||
Foreign Currency Translation | 0 | 0 | 0 | ||
Cash utilized, net | 0 | (0.6) | (1.2) | ||
Non-cash utilized, net | 0 | 0 | (0.3) | ||
Balance End of Year | 0.1 | 0.1 | 0.1 | 0 | |
December 2013 Program [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Cash utilized, net | 0 | $ (15.5) | (0.1) | ||
Number of positions eliminated | job_position | 1,100 | 1,100 | |||
December 2013 Program [Member] | Employee Severance and Other Personnel Benefits [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance Beginning of Year | 1.2 | 1.2 | $ 9 | ||
(Income) Expense, Net | 0 | 0 | (0.5) | ||
Foreign Currency Translation | 0 | 0 | (0.2) | ||
Cash utilized, net | 0 | 0 | (7.3) | ||
Non-cash utilized, net | 0 | 0 | 0.2 | ||
Balance End of Year | 1.2 | 1.2 | 1.2 | 9 | |
December 2013 Program [Member] | Other [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance Beginning of Year | 0 | 0 | 0.5 | ||
(Income) Expense, Net | 0 | 0 | (0.2) | ||
Foreign Currency Translation | 0 | 0 | 0 | ||
Cash utilized, net | 0 | 0 | (0.3) | ||
Non-cash utilized, net | 0 | 0 | 0 | ||
Balance End of Year | 0 | 0 | 0 | 0.5 | |
Other Immaterial Actions [Member] | Employee Severance and Other Personnel Benefits [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance Beginning of Year | 2.3 | 3.1 | 2.7 | ||
(Income) Expense, Net | 0.3 | 1.7 | 5 | ||
Foreign Currency Translation | 0 | (0.1) | (0.2) | ||
Cash utilized, net | (1) | (2.4) | (4.5) | ||
Non-cash utilized, net | 0 | 0 | 0.1 | ||
Balance End of Year | 1.6 | 2.3 | 3.1 | 2.7 | |
Other Immaterial Actions [Member] | Other [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance Beginning of Year | 0.7 | 0 | 1.5 | ||
(Income) Expense, Net | 0.3 | 2.1 | 0.2 | ||
Foreign Currency Translation | 0 | 0 | 0 | ||
Cash utilized, net | (0.3) | (1.4) | (1.7) | ||
Non-cash utilized, net | 0 | 0 | 0 | ||
Balance End of Year | $ 0.7 | $ 0.7 | $ 0 | $ 1.5 |
DISCONTINUED OPERATIONS - Q2 (D
DISCONTINUED OPERATIONS - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement Disclosures [Abstract] | ||||||||||||||
(Loss) income from discontinued operations, net of taxes | $ (2.5) | $ (1.4) | $ (1.7) | $ 0 | $ (0.1) | $ 0.4 | $ 0.4 | $ 3.7 | $ (3.2) | $ (2.1) | $ (0.1) | $ (3.2) | $ 1.3 | $ (30.4) |
Operations in China [Member] | ||||||||||||||
Income Statement Disclosures [Abstract] | ||||||||||||||
Net sales | 0 | 0 | 0 | 0 | 0 | 2.6 | 13.8 | |||||||
Loss from discontinued operations, before taxes | (2.5) | 0 | (2.1) | (0.1) | (3.2) | 1.5 | (30.8) | |||||||
Provision for income taxes | 0 | 0 | 0 | 0 | 0 | 0.2 | (0.4) | |||||||
(Loss) income from discontinued operations, net of taxes | (2.5) | $ 0 | (2.1) | $ (0.1) | (3.2) | 1.3 | $ (30.4) | |||||||
Balance Sheet Disclosures [Abstract] | ||||||||||||||
Cash and cash equivalents | 1.8 | 2 | 2.4 | 1.8 | 2 | 2.4 | ||||||||
Trade receivables, net | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | ||||||||
Total current assets | 2 | 2.2 | 2.6 | 2 | 2.2 | 2.6 | ||||||||
Total assets | 2 | 2.2 | 2.6 | 2 | 2.2 | 2.6 | ||||||||
Accounts payable | 0.6 | 0.7 | 0.2 | 0.6 | 0.7 | 0.2 | ||||||||
Accrued expenses and other | 3.5 | 3.6 | 3.9 | 3.5 | 3.6 | 3.9 | ||||||||
Total current liabilities | 4.1 | 4.3 | 4.1 | 4.1 | 4.3 | 4.1 | ||||||||
Total liabilities | $ 4.1 | $ 4.3 | $ 4.1 | $ 4.1 | $ 4.3 | $ 4.1 |
INVENTORIES - Components of 161
INVENTORIES - Components of Inventories - Q2 (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventories [Abstract] | ||||
Raw materials and supplies | $ 61.9 | $ 58.2 | $ 47.2 | |
Work-in-process | 12 | 8.3 | 9 | |
Finished goods | 135.7 | 117.3 | 100.4 | |
Inventories | $ 209.6 | $ 183.8 | [1] | $ 156.6 |
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
GOODWILL AND INTANGIBLE ASSE162
GOODWILL AND INTANGIBLE ASSETS, NET - Changes in Goodwill by Segment - Q2 (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Goodwill [Roll Forward] | |||||
Beginning Balance | $ 469.7 | [1] | $ 464.1 | $ 472.3 | |
Goodwill acquired | 8.6 | 21.4 | |||
Foreign currency translation adjustment | (1.6) | (6.1) | (8.2) | ||
Ending Balance | 476.7 | 469.7 | [1] | 464.1 | |
Operating Segments [Member] | Consumer [Member] | |||||
Goodwill [Roll Forward] | |||||
Beginning Balance | 210.1 | 217.9 | 217.9 | ||
Goodwill acquired | 8.6 | 1.9 | |||
Foreign currency translation adjustment | 0 | 0 | 0 | ||
Ending Balance | 218.7 | 210.1 | 217.9 | ||
Operating Segments [Member] | Professional [Member] | |||||
Goodwill [Roll Forward] | |||||
Beginning Balance | 240.7 | 246.2 | 254.4 | ||
Goodwill acquired | 0 | 0 | |||
Foreign currency translation adjustment | 0.2 | (5.5) | (8.2) | ||
Ending Balance | 240.9 | 240.7 | 246.2 | ||
Operating Segments [Member] | Other [Member] | |||||
Goodwill [Roll Forward] | |||||
Beginning Balance | 18.9 | 0 | 0 | ||
Goodwill acquired | 0 | 19.5 | |||
Foreign currency translation adjustment | (1.8) | (0.6) | 0 | ||
Ending Balance | $ 17.1 | $ 18.9 | $ 0 | ||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
GOODWILL AND INTANGIBLE ASSE163
GOODWILL AND INTANGIBLE ASSETS, NET - Summary of Intangible Assets - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 300.7 | $ 300.7 | $ 284.1 | $ 265.8 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (72.8) | (72.8) | (61.1) | (39.3) | ||||
Total | 227.9 | 227.9 | 223 | 226.5 | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Indefinite-Lived Intangible Assets, Gross Carrying Amount | 101 | 101 | 95 | 101.3 | ||||
Intangible Assets, Gross Carrying Amount | 401.7 | 401.7 | 379.1 | 367.1 | ||||
Intangible Assets, Net Carrying Amount | 328.9 | 328.9 | 318 | [1] | 327.8 | |||
Amortization expense | 6.1 | $ 5.3 | 12 | $ 10.4 | 22.4 | 21.3 | $ 10.4 | |
Trade names, finite-lived [Member] | ||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||
Indefinite-Lived Intangible Assets, Gross Carrying Amount | 101 | 101 | 95 | 101.3 | ||||
Trademarks and Licenses [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-Lived Intangible Assets, Gross Carrying Amount | 147.2 | 147.2 | 145 | 140.5 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (42.3) | (42.3) | (36) | (23.5) | ||||
Total | 104.9 | 104.9 | 109 | 117 | ||||
Customer networks/relationships [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-Lived Intangible Assets, Gross Carrying Amount | 132.5 | 132.5 | 118.8 | 109.1 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (24.4) | (24.4) | (20.5) | (13.4) | ||||
Total | 108.1 | 108.1 | 98.3 | 95.7 | ||||
Patents and Internally-Developed IP [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-Lived Intangible Assets, Gross Carrying Amount | 17.9 | 17.9 | 16.8 | 16.2 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (5.2) | (5.2) | (4) | (2.4) | ||||
Total | 12.7 | 12.7 | 12.8 | $ 13.8 | ||||
Distribution rights [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-Lived Intangible Assets, Gross Carrying Amount | 3.1 | 3.1 | 3.5 | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | (0.9) | (0.9) | (0.6) | |||||
Total | $ 2.2 | $ 2.2 | $ 2.9 | |||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
GOODWILL AND INTANGIBLE ASSE164
GOODWILL AND INTANGIBLE ASSETS, NET - Estimated Future Amortization Expense - Q2 (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets, Net [Abstract] | |||
2,016 | $ 11.5 | ||
2,017 | 23.6 | $ 22.3 | |
2,018 | 22.7 | 21.4 | |
2,019 | 20.1 | 18.9 | |
2,020 | 19.5 | 18.2 | |
Thereafter | 130.5 | 119.5 | |
Total | $ 227.9 | $ 223 | $ 226.5 |
ACCRUED EXPENSES AND OTHER -165
ACCRUED EXPENSES AND OTHER - Components of Accrued Expenses and Other - Q2 (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accrued Expenses and Other [Abstract] | ||||
Sales returns and allowances | $ 50.8 | $ 61.1 | $ 70.6 | |
Compensation and related benefits | 49.4 | 75.6 | 66.8 | |
Advertising and promotional costs | 37 | 38.4 | 44.9 | |
Taxes | 23.4 | 20.8 | 23.4 | |
Interest | 12.3 | 12.4 | 11 | |
Restructuring reserve | 9.8 | 11.8 | 13.7 | |
Other | 50.5 | 52.3 | 42.9 | |
Accrued expenses and other | $ 233.2 | $ 272.4 | [1] | $ 273.3 |
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
LONG-TERM DEBT - Components 166
LONG-TERM DEBT - Components of Long-term Debt - Q2 (Details) - USD ($) $ in Millions | Feb. 29, 2016 | Mar. 12, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Feb. 08, 2013 | |
Debt Instrument [Line Items] | ||||||||||
Total long-term debt, net of discounts | $ 1,790.4 | $ 1,813.7 | $ 1,863.9 | |||||||
Less current portion | (6.8) | (30) | [1] | (31.5) | ||||||
Long-term debt | 1,783.6 | 1,783.7 | [1] | 1,832.4 | ||||||
Aggregate principal amount outstanding | 1,837.2 | |||||||||
Acquisition Term Loan due 2019 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | 648.5 | 662.1 | ||||||||
Repayment of debt | $ 11.7 | $ 12.5 | ||||||||
Quarterly principal amortization payments | 1.7 | |||||||||
Maximum borrowings available under credit facility | 700 | $ 700 | ||||||||
Aggregate principal amount outstanding | 658.6 | 673.7 | ||||||||
2011 Term Loan due 2017 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | 648.2 | 658.5 | ||||||||
Repayment of debt | 11.5 | 12.1 | ||||||||
Maximum borrowings available under credit facility | 675 | 675 | ||||||||
Aggregate principal amount outstanding | 651.4 | $ 662.9 | 651.4 | 662.9 | ||||||
Amended Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit | 0 | 0 | $ 0 | |||||||
Maximum borrowings available under credit facility | $ 175 | $ 175 | $ 175 | |||||||
5 3/4% Senior Notes due 2021 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | 5.75% | ||||||
Senior notes | $ 493.1 | $ 492.5 | $ 500 | |||||||
Maximum borrowings available under credit facility | 500 | |||||||||
Aggregate principal amount outstanding | 500 | $ 500 | ||||||||
Spanish Government Loan due 2025 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 0.6 | $ 0.6 | $ 0.7 | |||||||
Amended Term Loan Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of debt | $ 23.2 | $ 24.6 | ||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
LONG-TERM DEBT - Additional 167
LONG-TERM DEBT - Additional Information - Q2 (Details) - USD ($) $ in Millions | Feb. 29, 2016 | Mar. 12, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Feb. 08, 2013 |
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount outstanding | $ 1,837.2 | |||||||||
Scheduled principal payments | 30 | |||||||||
Standby and trade letters of credit for various corporate purposes | $ 8.8 | $ 8.3 | $ 9 | |||||||
Amended Term Loan Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of debt | $ 23.2 | $ 24.6 | ||||||||
Percentage of excess cash flow, as defined | 50.00% | 50.00% | 50.00% | |||||||
2011 Term Loan due 2017 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of debt | $ 11.5 | $ 12.1 | ||||||||
Aggregate principal amount outstanding | 651.4 | $ 662.9 | 662.9 | $ 662.9 | 651.4 | |||||
Maximum borrowings available under credit facility | 675 | $ 675 | ||||||||
Acquisition Term Loan due 2019 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of debt | 11.7 | 12.5 | ||||||||
Aggregate principal amount outstanding | 673.7 | 658.6 | ||||||||
Scheduled principal payments | $ 6.8 | $ 1.8 | $ 1.8 | 6.8 | $ 6.9 | |||||
Maximum borrowings available under credit facility | 700 | 700 | ||||||||
Amended Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowings available under credit facility | 175 | 175 | $ 175 | |||||||
Standby and trade letters of credit for various corporate purposes | 8.8 | 8.3 | ||||||||
Remaining borrowing capacity | 166.2 | 166.7 | ||||||||
5 3/4% Senior Notes due 2021 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount outstanding | $ 500 | $ 500 | ||||||||
Maximum borrowings available under credit facility | $ 500 | |||||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | 5.75% |
FAIR VALUE MEASUREMENTS - Sc168
FAIR VALUE MEASUREMENTS - Schedule of Fair Values of Financial Assets and Liabilities - Q2 (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | |||
FX Contracts | $ 1.1 | $ 2 | $ 0.2 |
Total assets at fair value | 1.1 | 2 | 0.2 |
Liabilities: | |||
FX Contracts | 1.8 | 0.6 | |
2013 Interest Rate Swap | 7.6 | 6.5 | 3.5 |
Total liabilities at fair value | 9.4 | 7.1 | 3.5 |
Level 1 [Member] | |||
Assets: | |||
FX Contracts | 0 | 0 | 0 |
Total assets at fair value | 0 | 0 | 0 |
Liabilities: | |||
FX Contracts | 0 | 0 | |
2013 Interest Rate Swap | 0 | 0 | 0 |
Total liabilities at fair value | 0 | 0 | 0 |
Level 2 [Member] | |||
Assets: | |||
FX Contracts | 1.1 | 2 | 0.2 |
Total assets at fair value | 1.1 | 2 | 0.2 |
Liabilities: | |||
FX Contracts | 1.8 | 0.6 | |
2013 Interest Rate Swap | 7.6 | 6.5 | 3.5 |
Total liabilities at fair value | 9.4 | 7.1 | 3.5 |
Level 3 [Member] | |||
Assets: | |||
FX Contracts | 0 | 0 | 0 |
Total assets at fair value | 0 | 0 | 0 |
Liabilities: | |||
FX Contracts | 0 | 0 | |
2013 Interest Rate Swap | 0 | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sc169
FAIR VALUE MEASUREMENTS - Schedule of Fair Values of Financial Liabilities - Q2 (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Liabilities: | |||
Fair Value, Long-term debt, including current portion | $ 1,793.2 | $ 1,818 | $ 1,844 |
Carrying Value, Long-term debt, including current portion | 1,790.4 | 1,813.7 | 1,863.9 |
Level 1 [Member] | |||
Liabilities: | |||
Fair Value, Long-term debt, including current portion | 0 | 0 | 0 |
Level 2 [Member] | |||
Liabilities: | |||
Fair Value, Long-term debt, including current portion | 1,793.2 | 1,818 | 1,844 |
Level 3 [Member] | |||
Liabilities: | |||
Fair Value, Long-term debt, including current portion | $ 0 | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Fair170
FINANCIAL INSTRUMENTS - Fair Value of Derivative Financial Instruments in Consolidated Balance Sheet - Q2 (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other [Member] | |||
Derivative Instruments [Abstract] | |||
Fair value of gross derivative asset | $ 0 | $ 0 | $ 0 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | |||
Derivative Instruments [Abstract] | |||
Fair value of gross derivative asset | 0 | 0 | 0 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | |||
Derivative Instruments [Abstract] | |||
Fair value of gross derivative liabilities | 4.2 | 4 | 2.1 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Long-term Liabilities [Member] | |||
Derivative Instruments [Abstract] | |||
Fair value of gross derivative liabilities | 3.4 | 2.5 | 1.4 |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other [Member] | |||
Derivative Instruments [Abstract] | |||
Fair value of gross derivative asset | 1.1 | 2 | 0.2 |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | |||
Derivative Instruments [Abstract] | |||
Fair value of gross derivative liabilities | $ 1.8 | $ 0.6 | $ 0 |
FINANCIAL INSTRUMENTS - Effe171
FINANCIAL INSTRUMENTS - Effects of Derivative Financial Instruments on Income and Other Comprehensive Income (Loss) - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
2013 Interest Rate Swap, net of tax | [1] | $ (1.6) | $ (3.7) | $ 1.5 | ||||
Revaluation of derivative financial instrument, tax expense (benefit) | $ 0.1 | $ 0 | $ (0.4) | $ (1.2) | (1) | (2.3) | 1 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
2013 Interest Rate Swap, net of tax | 0.2 | (0.1) | (0.7) | (2) | (1.6) | (3.7) | 1.5 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Interest Expense | (1.1) | (0.5) | (2.2) | (0.5) | (2.6) | 0 | 0 | |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Gain (Loss) [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Foreign currency gain (loss), net | $ 0.3 | $ 0.4 | $ (0.5) | $ 0.9 | $ 3.8 | $ 0.5 | $ 2.2 | |
[1] | Net of tax (benefit) expense of $(1.0) million, $(2.3) million and $1.0 million for 2015, 2014 and 2013, respectively. |
FINANCIAL INSTRUMENTS - Addi172
FINANCIAL INSTRUMENTS - Additional Information - Q2 (Details) - USD ($) $ in Millions | May 31, 2015 | Nov. 30, 2013 | Nov. 30, 2013 | Jun. 30, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Measurements Of Financial Instruments [Line Items] | ||||||||||||
Standby and trade letters of credit for various corporate purposes | $ 8.3 | $ 8.8 | $ 9 | |||||||||
Accumulated other comprehensive income (loss) | (457.5) | (491.6) | [1] | (557) | $ (516.5) | $ (576.7) | ||||||
Fair value of assets | 1.1 | 2 | 0.2 | |||||||||
Deferred Gain - Hedging [Member] | ||||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||||||||||
Accumulated other comprehensive income (loss) | (4.5) | (3.8) | ||||||||||
Foreign Exchange Contracts [Member] | ||||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||||||||||
Derivative, notional amount | 74.2 | 76.3 | 7.6 | |||||||||
Interest Rate Swap [Member] | ||||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||||||||||
Derivative, notional amount | $ 400 | $ 400 | ||||||||||
Floor interest rate (percent) | 1.00% | 1.00% | 1.00% | |||||||||
Term of contract | 3 years | 3 years | 3 years | |||||||||
Fixed interest rate (percent) | 2.0709% | 2.0709% | 2.0709% | |||||||||
Fixed interest rate on debt (percent) | 5.0709% | 5.0709% | 5.0709% | |||||||||
Losses to be reclassified to earnings, next twelve months | 2.6 | 2.4 | ||||||||||
Interest Rate Swap [Member] | Deferred Gain - Hedging [Member] | ||||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||||||||||
Accumulated other comprehensive income (loss) | (4.5) | (3.8) | $ (4.7) | $ (4.2) | $ (4.1) | (2.2) | ||||||
Standby Letters Of Credit Which Support Products Corporations Self Insurance Programs [Member] | ||||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||||||||||
Standby and trade letters of credit for various corporate purposes | $ 7.2 | $ 7.5 | $ 7.7 | |||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
PENSION AND POST-RETIREMENT 173
PENSION AND POST-RETIREMENT BENEFITS - Components of Net Periodic Benefit Costs - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net periodic benefit (income) costs: | |||||||
Net periodic benefit (income) costs | $ (0.1) | $ (0.7) | $ (0.4) | $ (1.3) | $ 18.8 | $ (5.4) | $ (0.4) |
Pension Plans [Member] | |||||||
Net periodic benefit (income) costs: | |||||||
Service cost | 0.2 | 0.2 | 0.3 | 0.4 | 0.7 | 0.8 | 0.9 |
Interest cost | 5.1 | 7.1 | 10.3 | 14.3 | 28.6 | 30.1 | 27.6 |
Expected return on plan assets | (7.8) | (10.2) | (15.6) | (20.3) | (40.3) | (41.3) | (38.3) |
Amortization of actuarial loss | 2.3 | 2.1 | 4.4 | 4.1 | 8.4 | 4.5 | 8.6 |
Net periodic benefit (income) costs, before allocation | (0.2) | (0.8) | (0.6) | (1.5) | 18.4 | (5.9) | (1.2) |
Portion allocated to Revlon Holdings | (0.1) | (0.1) | (0.1) | (0.1) | (0.1) | (0.1) | (0.1) |
Net periodic benefit (income) costs | (0.3) | (0.9) | (0.7) | (1.6) | 18.3 | (6) | (1.3) |
Other Post-Retirement Benefit Plans [Member] | |||||||
Net periodic benefit (income) costs: | |||||||
Service cost | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 | 0.5 | 0.5 | 0.6 |
Expected return on plan assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Amortization of actuarial loss | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.4 |
Net periodic benefit (income) costs, before allocation | 0.2 | 0.2 | 0.3 | 0.3 | 0.6 | 0.6 | 1 |
Portion allocated to Revlon Holdings | 0 | 0 | 0 | 0 | (0.1) | 0 | (0.1) |
Net periodic benefit (income) costs | $ 0.2 | $ 0.2 | $ 0.3 | $ 0.3 | $ 0.5 | $ 0.6 | $ 0.9 |
PENSION AND POST-RETIREMENT 174
PENSION AND POST-RETIREMENT BENEFITS - Classification of Net Periodic Pension (Income) Costs - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Net periodic benefit (income) costs | $ (0.1) | $ (0.7) | $ (0.4) | $ (1.3) | $ 18.8 | $ (5.4) | $ (0.4) |
Cost of Sales [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Net periodic benefit (income) costs | (0.5) | (1) | (1.3) | (2) | 6.1 | (4.2) | |
Selling, general and administrative expense [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Net periodic benefit (income) costs | $ 0.4 | $ 0.3 | $ 0.9 | $ 0.7 | $ 12.7 | $ (0.7) |
PENSION AND POST-RETIREMENT 175
PENSION AND POST-RETIREMENT BENEFITS - Additional Information - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Net periodic benefit (income) costs | $ (0.1) | $ (0.7) | $ (0.4) | $ (1.3) | $ 18.8 | $ (5.4) | $ (0.4) | |
Estimated contributions in next fiscal year | 10 | 20 | ||||||
Pension Plans [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Net periodic benefit (income) costs | (0.3) | (0.9) | (0.7) | (1.6) | 18.3 | (6) | (1.3) | |
Employer contributions | 1.4 | 3.1 | 17.3 | 18.2 | ||||
Other Post-Retirement Benefit Plans [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Net periodic benefit (income) costs | 0.2 | $ 0.2 | 0.3 | $ 0.3 | 0.5 | 0.6 | $ 0.9 | |
Employer contributions | $ 0.3 | $ 0.5 | $ 0.8 | $ 0.7 | ||||
Scenario, Forecast [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Net periodic benefit (income) costs | $ (1) |
INCOME TAXES - Additional In176
INCOME TAXES - Additional Information - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||||||
Provision for income taxes | $ 11.8 | $ 21.4 | $ 17.9 | $ 31 | $ 54.4 | $ 81.2 | $ 48.6 |
Increase (decrease) in provision for income taxes | $ (9.6) | $ (13.1) | |||||
Federal statutory rate | 35.00% |
ACCUMULATED OTHER COMPREHENS177
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss - Q2 (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2016USD ($) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ (491.6) | [1] |
Ending balance | (457.5) | |
Foreign Currency Translation [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (23.5) | |
Other comprehensive income (loss) | 5.3 | |
Ending balance | (18.2) | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||
Currency translation adjustment, tax expense (benefit) | 0.6 | |
Actuarial (Loss) Gain On Post Retirement Benefits [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (217.7) | |
Other comprehensive income (loss) | 3.8 | |
Ending balance | (213.9) | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||
Currency translation adjustment, tax expense (benefit) | 0.7 | |
Deferred Gain (Loss) - Hedging [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (3.8) | |
Other comprehensive income (loss) | (0.7) | |
Ending balance | (4.5) | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||
Currency translation adjustment, tax expense (benefit) | (0.4) | |
Other [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (0.3) | |
Other comprehensive income (loss) | 0 | |
Ending balance | (0.3) | |
Accumulated Other Comprehensive Loss [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (245.3) | |
Other comprehensive income (loss) | 8.4 | |
Ending balance | $ (236.9) | |
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
ACCUMULATED OTHER COMPREHENS178
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification out of Accumulated Comprehensive Loss - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | $ (491.6) | [1] | $ (557) | ||
Ending balance | $ (457.5) | (457.5) | |||
Other Comprehensive Income (Loss), Tax [Abstract] | |||||
Reclassifications into earnings, tax expense (benefit) | 0.4 | $ 0.2 | 0.8 | 0.2 | |
Change in fair value, tax expense (benefit) | (0.3) | (0.2) | (1.2) | (1.4) | |
Deferred Gain (Loss) - Hedging [Member] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (3.8) | ||||
Ending balance | (4.5) | (4.5) | |||
Deferred Gain (Loss) - Hedging [Member] | Interest Rate Swap [Member] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (4.7) | (4.1) | (3.8) | (2.2) | |
Ending balance | (4.5) | (4.2) | (4.5) | (4.2) | |
Deferred Gain (Loss) - Hedging [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Reclassifications into earnings, net of tax | 0.7 | 0.3 | 1.3 | 0.3 | |
Change in fair value, net of tax | $ (0.5) | $ (0.4) | $ (2) | $ (2.3) | |
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
SEGMENT DATA AND RELATED INF179
SEGMENT DATA AND RELATED INFORMATION - Net Sales and Segment Profit - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | $ 488.9 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 501 | $ 472.3 | $ 497.9 | $ 469.8 | $ 928.5 | $ 920.9 | $ 1,914.3 | $ 1,941 | $ 1,494.7 | |
Segment profit | 54.6 | 63.1 | 92.7 | 110.7 | 224.8 | 245.3 | 197.1 | ||||||||
Depreciation and amortization | 52.2 | 50.8 | [1] | 103.2 | 102.6 | 76.7 | |||||||||
Non-cash stock compensation expense | 5.1 | 5.5 | 0.2 | ||||||||||||
Non-Operating items: | |||||||||||||||
Restructuring and related charges | 0.5 | (3.6) | 1.8 | (3.1) | 10.5 | 21.3 | 3.5 | ||||||||
Acquisition and integration costs | 5.5 | 4.7 | 6 | 5.9 | 8 | 6.4 | 25.4 | ||||||||
Interest expense | 20.9 | 20.5 | 41.9 | 40.5 | 83.3 | 84.4 | 78.6 | ||||||||
Amortization of debt issuance costs | 1.4 | 1.4 | 2.9 | 2.8 | [1] | 5.7 | 5.5 | 3.5 | |||||||
Foreign currency losses (gains), net | 8.5 | (7.9) | 5.1 | 8 | 15.7 | 25 | 3.7 | ||||||||
Miscellaneous, net | 0.2 | 0.2 | 0.5 | 0.2 | 0.4 | 1.2 | 1 | ||||||||
Income from continuing operations before income taxes | 23.6 | 48.9 | 42.3 | 59.2 | 119.7 | 127.2 | 80.6 | ||||||||
Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 488.9 | 482.4 | 928.5 | 920.9 | 1,914.3 | 1,941 | 1,494.7 | ||||||||
Segment profit | 105.2 | 108.3 | 188.3 | 199.7 | 465.5 | 444.2 | 347.4 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Unallocated corporate expenses | 16.2 | 15.8 | 30.4 | 30.5 | 79 | 59.2 | 53.8 | ||||||||
Segment Reconciling Items [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Depreciation and amortization | 26.3 | 25.2 | 52.2 | 50.8 | 103.2 | 102.6 | 76.7 | ||||||||
Non-cash stock compensation expense | 1.1 | 1.2 | 3.3 | 2.8 | 5.1 | 5.5 | 0.2 | ||||||||
Non-Operating items: | |||||||||||||||
Restructuring and related charges | 0.5 | (3) | 1.8 | (2.3) | 11.6 | 22.6 | 4.5 | ||||||||
Acquisition and integration costs | 5.5 | 4.7 | 6 | 5.9 | 8 | 6.4 | 25.4 | ||||||||
Deferred Compensation related to CBB Acquisition | 0.9 | 0.7 | 1.8 | 0.7 | 2.5 | 0 | 0 | ||||||||
Inventory purchase accounting adjustment, cost of sales | 0.1 | 0.6 | 0.1 | 0.6 | 0.9 | 2.6 | 8.5 | ||||||||
Consumer [Member] | Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 359.5 | 354.7 | 679.5 | 679 | 1,414.8 | 1,438.3 | 1,394.2 | ||||||||
Segment profit | 81 | 83.8 | 139.4 | 146 | 360.2 | 339.4 | 342.3 | ||||||||
Professional [Member] | Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 123.3 | 123.4 | 238.4 | 237.6 | 471.1 | 502.7 | 100.5 | ||||||||
Segment profit | 24.1 | 24.3 | 49.7 | 53.5 | 103.9 | 104.8 | 5.1 | ||||||||
Other [Member] | Operating Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 6.1 | 4.3 | 10.6 | 4.3 | 28.4 | 0 | 0 | ||||||||
Segment profit | $ 0.1 | $ 0.2 | $ (0.8) | $ 0.2 | $ 1.4 | $ 0 | $ 0 | ||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
SEGMENT DATA AND RELATED INF180
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales and Long-Lived Assets by Geographic Area - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net sales | $ 488.9 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 501 | $ 472.3 | $ 497.9 | $ 469.8 | $ 928.5 | $ 920.9 | $ 1,914.3 | $ 1,941 | $ 1,494.7 |
Long-lived assets, net | 1,111.8 | 1,087.1 | 1,117.2 | 1,111.8 | 1,087.1 | 1,117.2 | ||||||||
United States [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net sales | $ 263 | $ 267 | $ 510.7 | $ 511.4 | $ 1,043.7 | $ 1,021.9 | $ 832.8 | |||||||
Percentage of net sales by geographic location (percent) | 54.00% | 55.00% | 55.00% | 56.00% | 55.00% | 53.00% | 56.00% | |||||||
Long-lived assets, net | $ 853 | $ 854.7 | $ 845.5 | $ 853 | $ 854.7 | $ 845.5 | ||||||||
Percentage of long-lived assets, net by geographic location (percent) | 77.00% | 79.00% | 76.00% | 77.00% | 79.00% | 76.00% | ||||||||
Outside of the United States [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Net sales | $ 225.9 | $ 215.4 | $ 417.8 | $ 409.5 | $ 870.6 | $ 919.1 | $ 661.9 | |||||||
Percentage of net sales by geographic location (percent) | 46.00% | 45.00% | 45.00% | 44.00% | 45.00% | 47.00% | 44.00% | |||||||
Long-lived assets, net | $ 258.8 | $ 232.4 | $ 271.7 | $ 258.8 | $ 232.4 | $ 271.7 | ||||||||
Percentage of long-lived assets, net by geographic location (percent) | 23.00% | 21.00% | 24.00% | 23.00% | 21.00% | 24.00% |
SEGMENT DATA AND RELATED INF181
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales by Classes of Similar Products - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue from External Customer [Line Items] | ||||||||||||||
Net sales | $ 488.9 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 501 | $ 472.3 | $ 497.9 | $ 469.8 | $ 928.5 | $ 920.9 | $ 1,914.3 | $ 1,941 | $ 1,494.7 |
Color cosmetics [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net sales | $ 263.4 | $ 266 | $ 487.7 | $ 505.5 | $ 1,026.4 | $ 1,032.4 | $ 926.4 | |||||||
Percentage of net sales by classes of similar products | 54.00% | 55.00% | 52.00% | 55.00% | 54.00% | 53.00% | 62.00% | |||||||
Hair care [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net sales | $ 134.7 | $ 130 | $ 266.8 | $ 256.9 | $ 522.1 | $ 545 | $ 263.9 | |||||||
Percentage of net sales by classes of similar products | 27.00% | 27.00% | 29.00% | 28.00% | 27.00% | 28.00% | 18.00% | |||||||
Beauty care and fragrance [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Net sales | $ 90.8 | $ 86.4 | $ 174 | $ 158.5 | $ 365.8 | $ 363.6 | $ 304.4 | |||||||
Percentage of net sales by classes of similar products | 19.00% | 18.00% | 19.00% | 17.00% | 19.00% | 19.00% | 20.00% |
SEGMENT DATA AND RELATED INF182
SEGMENT DATA AND RELATED INFORMATION - Additional Information - Q2 (Details) - Country | Jun. 30, 2016 | Dec. 31, 2015 |
Outside of the United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of countries in which entity operates (countries) | 23 | 22 |
RELATED PARTY TRANSACTIONS -183
RELATED PARTY TRANSACTIONS - Additional Information - Q2 (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||||
Reimbursement Agreements termination period by either party | 90 days | 90 days | |||
Insurance program renewal period | 5 years | 5 years | |||
Reimbursement Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Reimbursements from (to) related party | $ 1.4 | $ 2.3 | |||
Payable balance | 0 | ||||
Receivable balance | $ 0.1 | ||||
Reimbursement Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Reimbursements from (to) related party | (2.1) | $ (3.8) | $ (6.1) | ||
Receivable balance | 0.1 | 0 | |||
Majority Shareholder [Member] | Related Party Expense, Coupon Redemptions [Member] | |||||
Related Party Transaction [Line Items] | |||||
Expenses - related party transaction | 24.8 | 16.1 | 32.9 | 35.8 | |
Majority Shareholder [Member] | Related Party Expense, Coupon Redemption Processing [Member] | |||||
Related Party Transaction [Line Items] | |||||
Expenses - related party transaction | 0.2 | 0.2 | 0.4 | $ 0.4 | |
Majority Shareholder [Member] | Related Party Expense, Other Fees (less than) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Expenses - related party transaction | $ 0.2 | $ 0.1 | $ 0.1 |
SUBSEQUENT EVENTS - Q2 (Details
SUBSEQUENT EVENTS - Q2 (Details) - USD ($) | Jul. 21, 2016 | Jun. 16, 2016 | Jul. 20, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 08, 2013 |
5 3/4% Senior Notes due 2021 [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowings available under credit facility | $ 500,000,000 | ||||||
Face amount of debt | $ 500,000,000 | ||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | 5.75% | |||
Revlon Consumer Products Corporation [Member] | Senior Secured Term Loan Facility 2016 [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowings available under credit facility | $ 1,800,000,000 | ||||||
Credit facility term | 7 years | ||||||
Revlon Consumer Products Corporation [Member] | Senior Secured Asset-Based Revolving Credit Facility 2016 [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowings available under credit facility | $ 400,000,000 | ||||||
Credit facility term | 5 years | ||||||
Revlon Consumer Products Corporation [Member] | Senior Unsecured Credit Facility Bridge Loans 2016 [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowings available under credit facility | $ 400,000,000 | ||||||
Revlon Consumer Products Corporation [Member] | Senior Unsecured Notes 2016 [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowings available under credit facility | $ 400,000,000 | ||||||
Revlon Consumer Products Corporation [Member] | Senior Unsecured Notes Due 2024 [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Face amount of debt | $ 450,000,000 | $ 400,000,000 | |||||
Stated interest rate | 6.25% | ||||||
Scenario, Forecast [Member] | Senior Secured Term Loan Facility 2016 [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Credit facility borrowings | $ 1,800,000,000 | ||||||
Scenario, Forecast [Member] | Revlon Consumer Products Corporation [Member] | Senior Secured Asset-Based Revolving Credit Facility 2016 [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Credit facility borrowings | $ 100,000,000 |
GUARANTOR FINANCIAL INFORMAT185
GUARANTOR FINANCIAL INFORMATION - Condensed Balance Sheet Statement - Q2 (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | $ 185.8 | $ 326.9 | [1] | $ 199 | [1] | $ 275.3 | [1] | $ 244.1 | $ 116.3 |
Trade receivables, less allowances for doubtful accounts | 268.4 | 244.9 | [1] | 238.9 | |||||
Inventories | 209.6 | 183.8 | [1] | 156.6 | |||||
Prepaid expenses and other | 201.5 | 170.7 | |||||||
Intercompany receivables | 0 | 0 | |||||||
Investment in subsidiaries | 0 | 0 | |||||||
Property, plant and equipment, net | 216.8 | 215.3 | [1] | 212 | |||||
Deferred income taxes | 41.7 | 49.8 | [1] | 34.8 | |||||
Goodwill | 476.7 | 469.7 | [1] | 464.1 | 472.3 | ||||
Intangible assets, net | 328.9 | 318 | [1] | 327.8 | |||||
Other assets | 89.4 | 84.1 | [1] | 113.3 | |||||
Total assets | 2,018.8 | 2,063.2 | [1] | 2,031.2 | |||||
Short-term borrowings | 14.1 | 11.3 | [1] | 6.6 | |||||
Current portion of long-term debt | 6.8 | 30 | [1] | 31.5 | |||||
Accounts payable | 187.6 | 201.3 | [1] | 153.5 | |||||
Accrued expenses and other | 233.2 | 272.4 | [1] | 273.3 | |||||
Intercompany payables | 0 | 0 | |||||||
Long-term debt | 1,783.6 | 1,783.7 | [1] | 1,832.4 | |||||
Other long-term liabilities | 251 | 256.1 | |||||||
Total liabilities | 2,476.3 | 2,554.8 | |||||||
Stockholder's deficiency | (457.5) | (491.6) | [1] | (557) | (516.5) | (576.7) | |||
Total liabilities and stockholder's deficiency | 2,018.8 | 2,063.2 | [1] | 2,031.2 | |||||
Products Corporation [Member] | |||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | 61.9 | 141.5 | 104.2 | 141.3 | 59.1 | ||||
Trade receivables, less allowances for doubtful accounts | 79.7 | 87.8 | |||||||
Inventories | 88.1 | 75.5 | |||||||
Intercompany receivables | 692.1 | 992.5 | |||||||
Investment in subsidiaries | 591 | 562.8 | |||||||
Property, plant and equipment, net | 124.8 | 112.4 | |||||||
Deferred income taxes | 3.1 | 22.6 | |||||||
Goodwill | 182.4 | 185.8 | |||||||
Intangible assets, net | 56.6 | 53.2 | |||||||
Other assets | 69.4 | 83.2 | |||||||
Total assets | 2,215 | 2,445.2 | |||||||
Short-term borrowings | 0 | 0 | |||||||
Current portion of long-term debt | 29.9 | 31.5 | |||||||
Accounts payable | 85.3 | 68.3 | |||||||
Accrued expenses and other | 175.1 | 159 | |||||||
Intercompany payables | 360.4 | 672.9 | |||||||
Long-term debt | 1,803.2 | 1,831.7 | |||||||
Total liabilities | 2,706.6 | 3,002.2 | |||||||
Stockholder's deficiency | (491.6) | (557) | |||||||
Total liabilities and stockholder's deficiency | 2,215 | 2,445.2 | |||||||
Guarantor Subsidiaries [Member] | |||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | 71.4 | 93 | 88.1 | 0.8 | 0 | ||||
Trade receivables, less allowances for doubtful accounts | 44.5 | 39.7 | |||||||
Inventories | 34.5 | 30.6 | |||||||
Intercompany receivables | 366.5 | 630 | |||||||
Investment in subsidiaries | 16.3 | (161.4) | |||||||
Property, plant and equipment, net | 28.1 | 28 | |||||||
Deferred income taxes | 0 | 0 | |||||||
Goodwill | 30 | 30 | |||||||
Intangible assets, net | 156.7 | 164.6 | |||||||
Other assets | 9.6 | 2.9 | |||||||
Total assets | 782.5 | 858.7 | |||||||
Short-term borrowings | 0 | 0 | |||||||
Current portion of long-term debt | 0 | 0 | |||||||
Accounts payable | 29.2 | 19 | |||||||
Accrued expenses and other | 18.9 | 24.5 | |||||||
Intercompany payables | 401 | 703.6 | |||||||
Long-term debt | 0 | 0 | |||||||
Total liabilities | 449.9 | 751.5 | |||||||
Stockholder's deficiency | 332.6 | 107.2 | |||||||
Total liabilities and stockholder's deficiency | 782.5 | 858.7 | |||||||
Non-Guarantor Subsidiaries [Member] | |||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | 52.5 | 92.4 | 83 | 102 | 57.2 | ||||
Trade receivables, less allowances for doubtful accounts | 120.7 | 111.4 | |||||||
Inventories | 61.2 | 50.5 | |||||||
Intercompany receivables | 95.2 | 129.6 | |||||||
Investment in subsidiaries | 0 | 0 | |||||||
Property, plant and equipment, net | 62.4 | 71.6 | |||||||
Deferred income taxes | 35.4 | 12.2 | |||||||
Goodwill | 257.3 | 248.3 | |||||||
Intangible assets, net | 104.7 | 110 | |||||||
Other assets | 25.1 | 27.2 | |||||||
Total assets | 893.5 | 880.8 | |||||||
Short-term borrowings | 11.3 | 6.6 | |||||||
Current portion of long-term debt | 0.1 | 0 | |||||||
Accounts payable | 86.8 | 66.2 | |||||||
Accrued expenses and other | 78.4 | 89.8 | |||||||
Intercompany payables | 392.4 | 375.6 | |||||||
Long-term debt | 0.5 | 0.7 | |||||||
Total liabilities | 618.8 | 586.6 | |||||||
Stockholder's deficiency | 274.7 | 294.2 | |||||||
Total liabilities and stockholder's deficiency | 893.5 | 880.8 | |||||||
Reportable Legal Entities [Member] | Products Corporation [Member] | |||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | 61.9 | 141.5 | 66.4 | 104.2 | |||||
Trade receivables, less allowances for doubtful accounts | 93.9 | 79.7 | |||||||
Inventories | 92.5 | 88.1 | |||||||
Prepaid expenses and other | 154.6 | 136.9 | |||||||
Intercompany receivables | 778.9 | 692.1 | |||||||
Investment in subsidiaries | 576.4 | 591 | |||||||
Property, plant and equipment, net | 127.4 | 124.8 | |||||||
Deferred income taxes | 7.2 | 5.8 | |||||||
Goodwill | 182.4 | 182.4 | |||||||
Intangible assets, net | 53.8 | 56.6 | |||||||
Other assets | 50.6 | 49.4 | |||||||
Total assets | 2,179.6 | 2,148.3 | |||||||
Short-term borrowings | 0 | 0 | |||||||
Current portion of long-term debt | 6.7 | 29.9 | |||||||
Accounts payable | 74.2 | 85.3 | |||||||
Accrued expenses and other | 134.4 | 175.1 | |||||||
Intercompany payables | 427.6 | 360.4 | |||||||
Long-term debt | 1,783.1 | 1,783.2 | |||||||
Other long-term liabilities | 211.1 | 206 | |||||||
Total liabilities | 2,637.1 | 2,639.9 | |||||||
Stockholder's deficiency | (457.5) | (491.6) | |||||||
Total liabilities and stockholder's deficiency | 2,179.6 | 2,148.3 | |||||||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | |||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | 71.4 | 93 | 86.8 | 88.1 | |||||
Trade receivables, less allowances for doubtful accounts | 45.3 | 44.5 | |||||||
Inventories | 38 | 34.5 | |||||||
Prepaid expenses and other | 6.8 | 3.3 | |||||||
Intercompany receivables | 451.2 | 366.5 | |||||||
Investment in subsidiaries | (6.2) | 16.3 | |||||||
Property, plant and equipment, net | 26.7 | 28.1 | |||||||
Deferred income taxes | 0 | 0 | |||||||
Goodwill | 30 | 30 | |||||||
Intangible assets, net | 152.8 | 156.7 | |||||||
Other assets | 13.4 | 9.6 | |||||||
Total assets | 829.4 | 782.5 | |||||||
Short-term borrowings | 0 | 0 | |||||||
Current portion of long-term debt | 0 | 0 | |||||||
Accounts payable | 28.7 | 29.2 | |||||||
Accrued expenses and other | 16.5 | 18.9 | |||||||
Intercompany payables | 461.3 | 401 | |||||||
Long-term debt | 0 | 0 | |||||||
Other long-term liabilities | 5.9 | 0.8 | |||||||
Total liabilities | 512.4 | 449.9 | |||||||
Stockholder's deficiency | 317 | 332.6 | |||||||
Total liabilities and stockholder's deficiency | 829.4 | 782.5 | |||||||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | 52.5 | 92.4 | 45.8 | 83 | |||||
Trade receivables, less allowances for doubtful accounts | 129.2 | 120.7 | |||||||
Inventories | 79.1 | 61.2 | |||||||
Prepaid expenses and other | 40.1 | 30.5 | |||||||
Intercompany receivables | 79.2 | 95.2 | |||||||
Investment in subsidiaries | 0 | 0 | |||||||
Property, plant and equipment, net | 62.7 | 62.4 | |||||||
Deferred income taxes | 34.5 | 44 | |||||||
Goodwill | 264.3 | 257.3 | |||||||
Intangible assets, net | 122.3 | 104.7 | |||||||
Other assets | 25.4 | 25.1 | |||||||
Total assets | 889.3 | 893.5 | |||||||
Short-term borrowings | 14.1 | 11.3 | |||||||
Current portion of long-term debt | 0.1 | 0.1 | |||||||
Accounts payable | 84.7 | 86.8 | |||||||
Accrued expenses and other | 82.3 | 78.4 | |||||||
Intercompany payables | 420.4 | 392.4 | |||||||
Long-term debt | 0.5 | 0.5 | |||||||
Other long-term liabilities | 34 | 49.3 | |||||||
Total liabilities | 636.1 | 618.8 | |||||||
Stockholder's deficiency | 253.2 | 274.7 | |||||||
Total liabilities and stockholder's deficiency | 889.3 | 893.5 | |||||||
Eliminations [Member] | |||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||
Cash and cash equivalents | 0 | 0 | $ 0 | 0 | $ 0 | $ 0 | |||
Trade receivables, less allowances for doubtful accounts | 0 | 0 | 0 | ||||||
Inventories | 0 | 0 | 0 | ||||||
Prepaid expenses and other | 0 | 0 | |||||||
Intercompany receivables | (1,309.3) | (1,153.8) | (1,752.1) | ||||||
Investment in subsidiaries | (570.2) | (607.3) | (401.4) | ||||||
Property, plant and equipment, net | 0 | 0 | 0 | ||||||
Deferred income taxes | 0 | 0 | 0 | ||||||
Goodwill | 0 | 0 | 0 | ||||||
Intangible assets, net | 0 | 0 | 0 | ||||||
Other assets | 0 | 0 | 0 | ||||||
Total assets | (1,879.5) | (1,761.1) | (2,153.5) | ||||||
Short-term borrowings | 0 | 0 | 0 | ||||||
Current portion of long-term debt | 0 | 0 | 0 | ||||||
Accounts payable | 0 | 0 | 0 | ||||||
Accrued expenses and other | 0 | 0 | 0 | ||||||
Intercompany payables | (1,309.3) | (1,153.8) | (1,752.1) | ||||||
Long-term debt | 0 | 0 | 0 | ||||||
Other long-term liabilities | 0 | 0 | |||||||
Total liabilities | (1,309.3) | (1,153.8) | (1,752.1) | ||||||
Stockholder's deficiency | (570.2) | (607.3) | (401.4) | ||||||
Total liabilities and stockholder's deficiency | $ (1,879.5) | $ (1,761.1) | $ (2,153.5) | ||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
GUARANTOR FINANCIAL INFORMAT186
GUARANTOR FINANCIAL INFORMATION - Statements of Income and Comprehensive Income - Q2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | $ 488.9 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 501 | $ 472.3 | $ 497.9 | $ 469.8 | $ 928.5 | $ 920.9 | $ 1,914.3 | $ 1,941 | $ 1,494.7 | ||||
Cost of sales | 171.5 | 161.3 | 325.4 | 303.6 | 667.8 | 668.3 | 545.1 | |||||||||||
Gross profit | 317.4 | 325.5 | 303.7 | 321.1 | 296.2 | 328 | 307.7 | 330.7 | 306.3 | 603.1 | 617.3 | 1,246.5 | 1,272.7 | 949.6 | ||||
Selling, general and administrative expenses | 256.8 | 256.9 | 502.6 | 503.8 | 993.5 | 999.7 | 723.6 | |||||||||||
Acquisition and integration costs | 5.5 | 4.7 | 6 | 5.9 | 8 | 6.4 | 25.4 | |||||||||||
Restructuring charges and other, net | 0.5 | (3.6) | 1.8 | (3.1) | 10.5 | 21.3 | 3.5 | |||||||||||
Operating income | 54.6 | 63.1 | 92.7 | 110.7 | 224.8 | 245.3 | 197.1 | |||||||||||
Intercompany interest, net | 0 | 0 | 0 | 0 | ||||||||||||||
Interest expense | 20.9 | 20.5 | 41.9 | 40.5 | 83.3 | 84.4 | 78.6 | |||||||||||
Amortization of debt issuance costs | 1.4 | 1.4 | 2.9 | 2.8 | [1] | 5.7 | 5.5 | 3.5 | ||||||||||
Foreign currency losses (gains), net | 8.5 | (7.9) | 5.1 | 8 | 15.7 | 25 | 3.7 | |||||||||||
Miscellaneous, net | 0.2 | 0.2 | 0.5 | 0.2 | 0.4 | 1.2 | 1 | |||||||||||
Other expenses, net | 31 | 14.2 | 50.4 | 51.5 | 105.1 | 118.1 | 116.5 | |||||||||||
Income from continuing operations before income taxes | 23.6 | 48.9 | 42.3 | 59.2 | 119.7 | 127.2 | 80.6 | |||||||||||
Provision for income taxes | 11.8 | 21.4 | 17.9 | 31 | 54.4 | 81.2 | 48.6 | |||||||||||
Income from continuing operations, net of taxes | 11.8 | 27.7 | 9.4 | 27.5 | 0.7 | 4.1 | 15.8 | 15.9 | 10.2 | 24.4 | 28.2 | 65.3 | 46 | 32 | ||||
Loss from discontinued operations, net of taxes | (2.5) | (1.4) | (1.7) | 0 | (0.1) | 0.4 | 0.4 | 3.7 | (3.2) | (2.1) | (0.1) | (3.2) | 1.3 | (30.4) | ||||
Equity in loss of subsidiaries | 0 | 0 | 0 | 0 | ||||||||||||||
Net income | 9.3 | $ 26.3 | $ 7.7 | 27.5 | $ 0.6 | $ 4.5 | $ 16.2 | $ 19.6 | $ 7 | 22.3 | 28.1 | [1] | 62.1 | 47.3 | 1.6 | |||
Other comprehensive income (loss) | 4.8 | 2.5 | 8.4 | [2] | (11.1) | (2.1) | [3] | (93.4) | [3] | 58.4 | ||||||||
Total comprehensive income (loss) | 14.1 | 30 | 30.7 | 17 | 60 | (46.1) | 60 | |||||||||||
Products Corporation [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | 1,049.4 | 1,001.1 | 972.8 | |||||||||||||||
Cost of sales | 466 | 430.5 | 438.4 | |||||||||||||||
Gross profit | 583.4 | 570.6 | 534.4 | |||||||||||||||
Selling, general and administrative expenses | 495 | 466.6 | 418.1 | |||||||||||||||
Acquisition and integration costs | 7.1 | 6.4 | 24.2 | |||||||||||||||
Restructuring charges and other, net | 6.6 | 2.9 | 0 | |||||||||||||||
Operating income | 65 | 94.7 | 92.1 | |||||||||||||||
Intercompany interest, net | (8.2) | (8) | (0.8) | |||||||||||||||
Interest expense | 82.5 | 83.6 | 72.9 | |||||||||||||||
Amortization of debt issuance costs | 5.7 | 5.5 | 3.5 | |||||||||||||||
Foreign currency losses (gains), net | 0.4 | (3.1) | 3.2 | |||||||||||||||
Miscellaneous, net | (54.2) | (48) | (2.4) | |||||||||||||||
Other expenses, net | 26.2 | 32 | 106.1 | |||||||||||||||
Income from continuing operations before income taxes | 38.8 | 62.7 | (14) | |||||||||||||||
Provision for income taxes | 16 | 85.8 | 39.9 | |||||||||||||||
Income from continuing operations, net of taxes | 22.8 | (23.1) | (53.9) | |||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0.2 | 0.3 | |||||||||||||||
Equity in loss of subsidiaries | 39.3 | 70.2 | 55.2 | |||||||||||||||
Net income | 62.1 | 47.3 | 1.6 | |||||||||||||||
Other comprehensive income (loss) | (2.1) | (93.4) | 58.4 | |||||||||||||||
Total comprehensive income (loss) | 60 | (46.1) | 60 | |||||||||||||||
Guarantor Subsidiaries [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | 340.4 | 356.8 | 90.5 | |||||||||||||||
Cost of sales | 129.4 | 146.9 | 45.6 | |||||||||||||||
Gross profit | 211 | 209.9 | 44.9 | |||||||||||||||
Selling, general and administrative expenses | 131.2 | 133.3 | 37.8 | |||||||||||||||
Acquisition and integration costs | 0 | 0 | 0 | |||||||||||||||
Restructuring charges and other, net | 0.4 | 3.3 | 0.4 | |||||||||||||||
Operating income | 79.4 | 73.3 | 6.7 | |||||||||||||||
Intercompany interest, net | (0.1) | (0.4) | (0.6) | |||||||||||||||
Interest expense | 0 | 0.1 | 0.3 | |||||||||||||||
Amortization of debt issuance costs | 0 | 0 | 0 | |||||||||||||||
Foreign currency losses (gains), net | (0.6) | (0.1) | 1.3 | |||||||||||||||
Miscellaneous, net | (0.1) | (8.2) | (11.5) | |||||||||||||||
Other expenses, net | (0.8) | (8.6) | (10.5) | |||||||||||||||
Income from continuing operations before income taxes | 80.2 | 81.9 | 17.2 | |||||||||||||||
Provision for income taxes | 36.2 | (8.4) | 0.3 | |||||||||||||||
Income from continuing operations, net of taxes | 44 | 90.3 | 16.9 | |||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | |||||||||||||||
Equity in loss of subsidiaries | 43.1 | 1.5 | 24.6 | |||||||||||||||
Net income | 87.1 | 91.8 | 41.5 | |||||||||||||||
Other comprehensive income (loss) | (1.5) | 9.3 | 16.7 | |||||||||||||||
Total comprehensive income (loss) | 85.6 | 101.1 | 58.2 | |||||||||||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | 730.7 | 771.5 | 626.6 | |||||||||||||||
Cost of sales | 278.6 | 279.3 | 256.3 | |||||||||||||||
Gross profit | 452.1 | 492.2 | 370.3 | |||||||||||||||
Selling, general and administrative expenses | 367.3 | 399.8 | 267.7 | |||||||||||||||
Acquisition and integration costs | 0.9 | 0 | 1.2 | |||||||||||||||
Restructuring charges and other, net | 3.5 | 15.1 | 3.1 | |||||||||||||||
Operating income | 80.4 | 77.3 | 98.3 | |||||||||||||||
Intercompany interest, net | 8.3 | 8.4 | 6.2 | |||||||||||||||
Interest expense | 0.8 | 0.7 | 0.6 | |||||||||||||||
Amortization of debt issuance costs | 0 | 0 | 0 | |||||||||||||||
Foreign currency losses (gains), net | 15.9 | 28.2 | (0.8) | |||||||||||||||
Miscellaneous, net | 54.7 | 57.4 | 14.9 | |||||||||||||||
Other expenses, net | 79.7 | 94.7 | 20.9 | |||||||||||||||
Income from continuing operations before income taxes | 0.7 | (17.4) | 77.4 | |||||||||||||||
Provision for income taxes | 2.2 | 3.8 | 8.4 | |||||||||||||||
Income from continuing operations, net of taxes | (1.5) | (21.2) | 69 | |||||||||||||||
Loss from discontinued operations, net of taxes | (3.2) | 1.1 | (30.7) | |||||||||||||||
Equity in loss of subsidiaries | 0 | 0 | 0 | |||||||||||||||
Net income | (4.7) | (20.1) | 38.3 | |||||||||||||||
Other comprehensive income (loss) | (18.8) | (15.8) | 10.2 | |||||||||||||||
Total comprehensive income (loss) | (23.5) | (35.9) | 48.5 | |||||||||||||||
Reportable Legal Entities [Member] | Products Corporation [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | 229.4 | 268.4 | 428.1 | 511.8 | ||||||||||||||
Cost of sales | 83 | 114.4 | 145.2 | 215.6 | ||||||||||||||
Gross profit | 146.4 | 154 | 282.9 | 296.2 | ||||||||||||||
Selling, general and administrative expenses | 123.7 | 119.3 | 247.7 | 245.8 | ||||||||||||||
Acquisition and integration costs | 5.2 | 4.7 | 5.6 | 5.9 | ||||||||||||||
Restructuring charges and other, net | (0.2) | (0.7) | 0 | (0.5) | ||||||||||||||
Operating income | 17.7 | 30.7 | 29.6 | 45 | ||||||||||||||
Intercompany interest, net | (2) | (2.1) | (4.3) | (4.1) | ||||||||||||||
Interest expense | 20.7 | 20.3 | 41.6 | 40.3 | ||||||||||||||
Amortization of debt issuance costs | 1.4 | 1.4 | 2.9 | 2.8 | ||||||||||||||
Foreign currency losses (gains), net | 1.8 | (1.4) | 2.1 | (1.2) | ||||||||||||||
Miscellaneous, net | (12.5) | 11.4 | (34.7) | (6.2) | ||||||||||||||
Other expenses, net | 9.4 | 29.6 | 7.6 | 31.6 | ||||||||||||||
Income from continuing operations before income taxes | 8.3 | 1.1 | 22 | 13.4 | ||||||||||||||
Provision for income taxes | (3.8) | 9.5 | (8.5) | 11 | ||||||||||||||
Income from continuing operations, net of taxes | 12.1 | (8.4) | 30.5 | 2.4 | ||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | ||||||||||||||
Equity in loss of subsidiaries | (2.8) | 35.9 | (8.2) | 25.7 | ||||||||||||||
Net income | 9.3 | 27.5 | 22.3 | 28.1 | ||||||||||||||
Other comprehensive income (loss) | 4.8 | 2.5 | 8.4 | (11.1) | ||||||||||||||
Total comprehensive income (loss) | 14.1 | 30 | 30.7 | 17 | ||||||||||||||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | 85.6 | 85.3 | 168.6 | 166.3 | ||||||||||||||
Cost of sales | 31.8 | 33 | 62.2 | 60.7 | ||||||||||||||
Gross profit | 53.8 | 52.3 | 106.4 | 105.6 | ||||||||||||||
Selling, general and administrative expenses | 37.2 | 40.2 | 72.8 | 68.8 | ||||||||||||||
Acquisition and integration costs | 0 | 0 | 0 | 0 | ||||||||||||||
Restructuring charges and other, net | 0.1 | 0.6 | 0.7 | 0.7 | ||||||||||||||
Operating income | 16.5 | 11.5 | 32.9 | 36.1 | ||||||||||||||
Intercompany interest, net | (0.2) | 0 | 0.1 | (0.1) | ||||||||||||||
Interest expense | 0 | 0 | 0 | 0 | ||||||||||||||
Amortization of debt issuance costs | 0 | 0 | 0 | 0 | ||||||||||||||
Foreign currency losses (gains), net | (0.6) | 0 | (0.3) | (0.5) | ||||||||||||||
Miscellaneous, net | (3.2) | (2.9) | 3.8 | (1.4) | ||||||||||||||
Other expenses, net | (4) | (2.9) | 3.6 | (2) | ||||||||||||||
Income from continuing operations before income taxes | 20.5 | 14.4 | 29.3 | 38.1 | ||||||||||||||
Provision for income taxes | 12.8 | 9.5 | 26.2 | 18.1 | ||||||||||||||
Income from continuing operations, net of taxes | 7.7 | 4.9 | 3.1 | 20 | ||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | ||||||||||||||
Equity in loss of subsidiaries | (6.2) | 22.6 | (12.1) | 12.4 | ||||||||||||||
Net income | 1.5 | 27.5 | (9) | 32.4 | ||||||||||||||
Other comprehensive income (loss) | (3.1) | (1.8) | (7.5) | (2.8) | ||||||||||||||
Total comprehensive income (loss) | (1.6) | 25.7 | (16.5) | 29.6 | ||||||||||||||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | 187.8 | 178.6 | 346 | 334.8 | ||||||||||||||
Cost of sales | 70.6 | 63.8 | 132.2 | 119.3 | ||||||||||||||
Gross profit | 117.2 | 114.8 | 213.8 | 215.5 | ||||||||||||||
Selling, general and administrative expenses | 95.9 | 97.4 | 182.1 | 189.2 | ||||||||||||||
Acquisition and integration costs | 0.3 | 0 | 0.4 | 0 | ||||||||||||||
Restructuring charges and other, net | 0.6 | (3.5) | 1.1 | (3.3) | ||||||||||||||
Operating income | 20.4 | 20.9 | 30.2 | 29.6 | ||||||||||||||
Intercompany interest, net | 2.2 | 2.1 | 4.2 | 4.2 | ||||||||||||||
Interest expense | 0.2 | 0.2 | 0.3 | 0.2 | ||||||||||||||
Amortization of debt issuance costs | 0 | 0 | 0 | 0 | ||||||||||||||
Foreign currency losses (gains), net | 7.3 | (6.5) | 3.3 | 9.7 | ||||||||||||||
Miscellaneous, net | 15.9 | (8.3) | 31.4 | 7.8 | ||||||||||||||
Other expenses, net | 25.6 | (12.5) | 39.2 | 21.9 | ||||||||||||||
Income from continuing operations before income taxes | (5.2) | 33.4 | (9) | 7.7 | ||||||||||||||
Provision for income taxes | 2.8 | 2.4 | 0.2 | 1.9 | ||||||||||||||
Income from continuing operations, net of taxes | (8) | 31 | (9.2) | 5.8 | ||||||||||||||
Loss from discontinued operations, net of taxes | (2.5) | 0 | (2.1) | (0.1) | ||||||||||||||
Equity in loss of subsidiaries | 0 | 0 | 0 | 0 | ||||||||||||||
Net income | (10.5) | 31 | (11.3) | 5.7 | ||||||||||||||
Other comprehensive income (loss) | (5.4) | 1.8 | (8.2) | (13.3) | ||||||||||||||
Total comprehensive income (loss) | (15.9) | 32.8 | (19.5) | (7.6) | ||||||||||||||
Eliminations [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | (13.9) | (49.9) | (14.2) | (92) | (206.2) | (188.4) | (195.2) | |||||||||||
Cost of sales | (13.9) | (49.9) | (14.2) | (92) | (206.2) | (188.4) | (195.2) | |||||||||||
Gross profit | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Acquisition and integration costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Restructuring charges and other, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Operating income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Intercompany interest, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Interest expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Amortization of debt issuance costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Foreign currency losses (gains), net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Miscellaneous, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Other expenses, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Income from continuing operations before income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Provision for income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Income from continuing operations, net of taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Equity in loss of subsidiaries | 9 | (58.5) | 20.3 | (38.1) | (82.4) | (71.7) | (79.8) | |||||||||||
Net income | 9 | (58.5) | 20.3 | (38.1) | (82.4) | (71.7) | (79.8) | |||||||||||
Other comprehensive income (loss) | 8.5 | 0 | 15.7 | 16.1 | 20.3 | 6.5 | (26.9) | |||||||||||
Total comprehensive income (loss) | $ 17.5 | $ (58.5) | $ 36 | $ (22) | $ (62.1) | $ (65.2) | $ (106.7) | |||||||||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. | |||||||||||||||||
[2] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive income during the six months ended June 30, 2016. | |||||||||||||||||
[3] | See Note 17, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during each of 2015, 2014 and 2013. |
GUARANTOR FINANCIAL INFORMAT187
GUARANTOR FINANCIAL INFORMATION - Statement of Cash Flows - Q2 (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||
Net cash (used in) provided by operating activities | $ (57.2) | $ 2.5 | [1] | $ 155.3 | $ 174 | $ 123.3 | |||
Capital expenditures | (18.6) | (17.2) | [1] | (48.3) | (55.5) | (28.6) | |||
Business acquisitions | (29.2) | (34.2) | [1] | (41.7) | 0 | (627.6) | |||
Proceeds from the sale of certain assets | 0.4 | 2 | [1] | 6.2 | 3.4 | 3.7 | |||
Net cash used in investing activities | (47.4) | (49.4) | [1] | (83.8) | (52.1) | (639.4) | |||
Net (decrease) increase in short-term borrowings and overdraft | (8.4) | 6.6 | [1] | 23 | (4.7) | (6.3) | |||
Repayments under the Acquisition Term Loan | (15.1) | (15.9) | [1] | ||||||
Prepayments under the 2011 Term Loan | (11.5) | (12.1) | [1] | ||||||
Other financing activities | (1.6) | (2.1) | [1] | (3.7) | (3.2) | (2.6) | |||
Net cash used in financing activities | (36.6) | (23.5) | [1] | (12.1) | (75.1) | 649 | |||
Effect of exchange rate changes on cash and cash equivalents | 0.1 | (5.9) | [1] | (7.8) | (15.6) | (5.1) | |||
Net increase (decrease) in cash and cash equivalents | (141.1) | (76.3) | [1] | 51.6 | 31.2 | 127.8 | |||
Cash and cash equivalents at beginning of period | 326.9 | [1] | 275.3 | [1] | 275.3 | [1] | 244.1 | 116.3 | |
Cash and cash equivalents at end of period | 185.8 | 199 | [1] | 326.9 | [1] | 275.3 | [1] | 244.1 | |
Products Corporation [Member] | |||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||
Net cash (used in) provided by operating activities | (27.2) | 89.1 | 77.3 | 76.9 | |||||
Capital expenditures | (13.2) | (29.5) | (40.3) | (21.1) | |||||
Business acquisitions | 0 | (8.1) | (627.6) | ||||||
Proceeds from the sale of certain assets | 0 | 3.5 | 0 | 0.3 | |||||
Net cash used in investing activities | (13.2) | (34.1) | (40.3) | (648.4) | |||||
Net (decrease) increase in short-term borrowings and overdraft | (11.2) | 17.3 | (4.2) | (2) | |||||
Repayments under the Acquisition Term Loan | (15.1) | ||||||||
Prepayments under the 2011 Term Loan | (11.5) | ||||||||
Other financing activities | (1.4) | (3.6) | (2.7) | (2.2) | |||||
Net cash used in financing activities | (39.2) | (17.7) | (74.1) | 653.7 | |||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | |||||
Net increase (decrease) in cash and cash equivalents | (79.6) | 37.3 | (37.1) | 82.2 | |||||
Cash and cash equivalents at beginning of period | 141.5 | 104.2 | 104.2 | 141.3 | 59.1 | ||||
Cash and cash equivalents at end of period | 61.9 | 141.5 | 104.2 | 141.3 | |||||
Guarantor Subsidiaries [Member] | |||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||
Net cash (used in) provided by operating activities | (20.4) | 7.9 | 78 | 4.6 | |||||
Capital expenditures | (1.2) | (5.5) | (2.4) | (0.6) | |||||
Business acquisitions | 0 | 0 | 0 | ||||||
Proceeds from the sale of certain assets | 0.4 | 2.7 | 0 | 0 | |||||
Net cash used in investing activities | (0.8) | (2.8) | (2.4) | (0.6) | |||||
Net (decrease) increase in short-term borrowings and overdraft | 0 | 0 | (1.9) | (3.2) | |||||
Repayments under the Acquisition Term Loan | 0 | ||||||||
Prepayments under the 2011 Term Loan | 0 | ||||||||
Other financing activities | 0 | 0 | 0 | 0 | |||||
Net cash used in financing activities | 0 | 0 | (1.9) | (3.2) | |||||
Effect of exchange rate changes on cash and cash equivalents | (0.4) | (0.2) | (0.1) | 0 | |||||
Net increase (decrease) in cash and cash equivalents | (21.6) | 4.9 | 73.6 | 0.8 | |||||
Cash and cash equivalents at beginning of period | 93 | 88.1 | 88.1 | 0.8 | 0 | ||||
Cash and cash equivalents at end of period | 71.4 | 93 | 88.1 | 0.8 | |||||
Non-Guarantor Subsidiaries [Member] | |||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||
Net cash (used in) provided by operating activities | (9.6) | 58.3 | 18.7 | 41.8 | |||||
Capital expenditures | (4.2) | (13.3) | (12.8) | (6.9) | |||||
Business acquisitions | (29.2) | (33.6) | 0 | ||||||
Proceeds from the sale of certain assets | 0 | 0 | 3.4 | 3.4 | |||||
Net cash used in investing activities | (33.4) | (46.9) | (9.4) | 9.6 | |||||
Net (decrease) increase in short-term borrowings and overdraft | 2.8 | 5.7 | 1.4 | (1.1) | |||||
Repayments under the Acquisition Term Loan | 0 | ||||||||
Prepayments under the 2011 Term Loan | 0 | ||||||||
Other financing activities | (0.2) | (0.1) | (0.5) | (0.4) | |||||
Net cash used in financing activities | 2.6 | 5.6 | 0.9 | (1.5) | |||||
Effect of exchange rate changes on cash and cash equivalents | 0.5 | (7.6) | (15.5) | (5.1) | |||||
Net increase (decrease) in cash and cash equivalents | (39.9) | 9.4 | (5.3) | 44.8 | |||||
Cash and cash equivalents at beginning of period | 92.4 | 83 | 83 | 102 | 57.2 | ||||
Cash and cash equivalents at end of period | 52.5 | 92.4 | 83 | 102 | |||||
Reportable Legal Entities [Member] | Products Corporation [Member] | |||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||
Net cash (used in) provided by operating activities | (1.7) | ||||||||
Capital expenditures | (10.6) | ||||||||
Business acquisitions | 0 | ||||||||
Proceeds from the sale of certain assets | 0.4 | ||||||||
Net cash used in investing activities | (10.2) | ||||||||
Net (decrease) increase in short-term borrowings and overdraft | 4 | ||||||||
Repayments under the Acquisition Term Loan | (15.9) | ||||||||
Prepayments under the 2011 Term Loan | (12.1) | ||||||||
Other financing activities | (1.9) | ||||||||
Net cash used in financing activities | (25.9) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | ||||||||
Net increase (decrease) in cash and cash equivalents | (37.8) | ||||||||
Cash and cash equivalents at beginning of period | 141.5 | 104.2 | 104.2 | ||||||
Cash and cash equivalents at end of period | 61.9 | 66.4 | 141.5 | 104.2 | |||||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | |||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||
Net cash (used in) provided by operating activities | (0.3) | ||||||||
Capital expenditures | (2.5) | ||||||||
Business acquisitions | 0 | ||||||||
Proceeds from the sale of certain assets | 1.5 | ||||||||
Net cash used in investing activities | (1) | ||||||||
Net (decrease) increase in short-term borrowings and overdraft | 0 | ||||||||
Repayments under the Acquisition Term Loan | 0 | ||||||||
Prepayments under the 2011 Term Loan | 0 | ||||||||
Other financing activities | 0 | ||||||||
Net cash used in financing activities | 0 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | ||||||||
Net increase (decrease) in cash and cash equivalents | (1.3) | ||||||||
Cash and cash equivalents at beginning of period | 93 | 88.1 | 88.1 | ||||||
Cash and cash equivalents at end of period | 71.4 | 86.8 | 93 | 88.1 | |||||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||
Net cash (used in) provided by operating activities | 4.5 | ||||||||
Capital expenditures | (4.1) | ||||||||
Business acquisitions | (34.2) | ||||||||
Proceeds from the sale of certain assets | 0.1 | ||||||||
Net cash used in investing activities | (38.2) | ||||||||
Net (decrease) increase in short-term borrowings and overdraft | 2.6 | ||||||||
Repayments under the Acquisition Term Loan | 0 | ||||||||
Prepayments under the 2011 Term Loan | 0 | ||||||||
Other financing activities | (0.2) | ||||||||
Net cash used in financing activities | 2.4 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (5.9) | ||||||||
Net increase (decrease) in cash and cash equivalents | (37.2) | ||||||||
Cash and cash equivalents at beginning of period | 92.4 | 83 | 83 | ||||||
Cash and cash equivalents at end of period | 52.5 | 45.8 | 92.4 | 83 | |||||
Eliminations [Member] | |||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||
Net cash (used in) provided by operating activities | 0 | 0 | 0 | 0 | 0 | ||||
Capital expenditures | 0 | 0 | 0 | 0 | 0 | ||||
Business acquisitions | 0 | 0 | 0 | 0 | |||||
Proceeds from the sale of certain assets | 0 | 0 | 0 | 0 | 0 | ||||
Net cash used in investing activities | 0 | 0 | 0 | 0 | 0 | ||||
Net (decrease) increase in short-term borrowings and overdraft | 0 | 0 | 0 | 0 | 0 | ||||
Repayments under the Acquisition Term Loan | 0 | 0 | |||||||
Prepayments under the 2011 Term Loan | 0 | 0 | |||||||
Other financing activities | 0 | 0 | 0 | 0 | 0 | ||||
Net cash used in financing activities | 0 | 0 | 0 | 0 | 0 | ||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | ||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | ||||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | 0 | ||||
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
[1] | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements" for details of these adjustments. |
GUARANTOR FINANCIAL INFORMAT188
GUARANTOR FINANCIAL INFORMATION - Additional Information - Q2 (Details) | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 08, 2013 |
5 3/4% Senior Notes due 2021 [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Stated interest rate | 5.75% | 5.75% | 5.75% | 5.75% |
SCHEDULE II - VALUATION AND 189
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS - 10K (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 9.3 | $ 4.2 | $ 3.5 |
Charged to Cost and Expenses | 2.8 | 8.4 | 1.6 |
Other Deductions | (1.6) | (3.3) | (0.9) |
Balance at End of Year | 10.5 | 9.3 | 4.2 |
Allowance For Volume And Early Payment Discount [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 23.4 | 12.1 | 14.6 |
Charged to Cost and Expenses | 51.6 | 84.7 | 57.6 |
Other Deductions | (52.4) | (73.4) | (60.1) |
Balance at End of Year | 22.6 | 23.4 | 12.1 |
Allowance for Sales Returns [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 45.4 | 53.1 | 54.5 |
Charged to Cost and Expenses | 48.5 | 64.3 | 77.8 |
Other Deductions | (54.6) | (72) | (79.2) |
Balance at End of Year | $ 39.3 | $ 45.4 | $ 53.1 |