Document and Entity Information
Document and Entity Information - Jun. 30, 2015 - shares | Total |
Document Documentand Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | RCPC |
Entity Registrant Name | REVLON CONSUMER PRODUCTS CORP |
Entity Central Index Key | 890,547 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding (shares) | 5,260 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 199 | $ 275.3 |
Trade receivables, less allowance for doubtful accounts of $9.9 and $9.3 as of June 30, 2015 and December 31, 2014, respectively | 256.4 | 238.9 |
Inventories | 196.6 | 156.6 |
Deferred income taxes – current | 59.2 | 58.4 |
Prepaid expenses and other | 61.5 | 44.6 |
Receivable from Revlon, Inc. | 112.3 | 105.4 |
Total current assets | 885 | 879.2 |
Property, plant and equipment, net of accumulated depreciation of $263.6 and $250.5 as of June 30, 2015 and December 31, 2014, respectively | 205 | 212 |
Deferred income taxes – noncurrent | 15.9 | 34.8 |
Goodwill | 478.3 | 464.1 |
Intangible assets, net of accumulated amortization of $49.1 and $39.3 as of June 30, 2015 and December 31, 2014, respectively | 325 | 327.8 |
Other assets | 109.7 | 113.3 |
Total assets | 2,018.9 | 2,031.2 |
Current liabilities: | ||
Short-term borrowings | 8.5 | 6.6 |
Current portion of long-term debt | 6.9 | 31.5 |
Accounts payable | 189 | 153.5 |
Accrued expenses and other | 246.4 | 273.3 |
Total current liabilities | 450.8 | 464.9 |
Long-term debt | 1,829.6 | 1,832.4 |
Long-term pension and other post-retirement plan liabilities | 192.3 | 200.9 |
Other long-term liabilities | 83.3 | 90 |
Stockholder's deficiency: | ||
RCPC Preferred Stock, par value $1.00 per share; 1,000 shares authorized; 546 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively | 54.6 | 54.6 |
Additional paid-in capital | 955 | 952.1 |
Accumulated deficit | (1,292.4) | (1,320.5) |
Accumulated other comprehensive loss | (254.3) | (243.2) |
Total stockholder's deficiency | (537.1) | (557) |
Total liabilities and stockholder's deficiency | 2,018.9 | 2,031.2 |
Class A Common Stock | ||
Stockholder's deficiency: | ||
Common Stock, par value $1.00 per share; 10,000 shares authorized; 5,260 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts on trade receivables | $ 9.9 | $ 9.3 |
Accumulated depreciation on property, plant and equipment | 263.6 | 250.5 |
Accumulated amortization on intangible assets | $ 49.1 | $ 39.3 |
RCPC Preferred Stock | ||
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 1,000 | 1,000 |
Preferred Stock, Shares Issued | 546 | 546 |
Preferred Stock, Shares Outstanding | 546 | 546 |
Common Stock [Member] | ||
Common Stock, par value (usd per share) | $ 1 | $ 1 |
Common Stock, shares authorized (shares) | 10,000 | 10,000 |
Common Stock, shares issued (shares) | 5,260 | 5,260 |
Common Stock, Shares, Outstanding | 5,260 | 5,260 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |||
Income Statement [Abstract] | ||||||
Net sales | $ 482.4 | $ 497.9 | $ 920.9 | $ 967.7 | ||
Cost of sales | 161.3 | 167.2 | 303.6 | 330.7 | ||
Gross profit | 321.1 | 330.7 | 617.3 | 637 | ||
Selling, general and administrative expenses | 256.9 | 261.3 | 503.8 | 505.3 | ||
Acquisition and integration costs | 4.7 | 0.7 | 5.9 | 4.5 | ||
Restructuring charges and other, net | (3.6) | 3.8 | (3.1) | 17.3 | ||
Operating income | 63.1 | 64.9 | 110.7 | 109.9 | ||
Other expenses, net: | ||||||
Interest expense | 20.5 | 21 | 40.5 | 43.3 | ||
Amortization of debt issuance costs | 1.4 | 1.4 | 2.8 | 2.8 | ||
Loss on early extinguishment of debt | 0 | 0.1 | 0 | 2 | ||
Foreign currency (gains) losses, net | (7.9) | 7.2 | 8 | 8.6 | ||
Miscellaneous, net | 0.2 | 0 | 0.2 | 0.1 | ||
Other expenses, net | 14.2 | 29.7 | 51.5 | 56.8 | ||
Income from continuing operations before income taxes | 48.9 | 35.2 | 59.2 | 53.1 | ||
Provision for income taxes | 21.4 | 19.3 | 31 | 27 | ||
Income from continuing operations, net of taxes | 27.5 | 15.9 | 28.2 | 26.1 | ||
Income (loss) from discontinued operations, net of taxes | 0 | 3.7 | (0.1) | 0.5 | ||
Net income | 27.5 | 19.6 | 28.1 | 26.6 | ||
Other comprehensive income (loss): | ||||||
Currency translation adjustment, net of tax | [1] | 0.8 | (0.4) | (12.6) | 1.2 | |
Amortization of pension related costs, net of tax | [2],[3] | 1.8 | 1.1 | 3.5 | 2.3 | |
Revaluation of derivative financial instrument, net of tax | [4] | (0.1) | (1.9) | (2) | (2.9) | |
Other comprehensive income (loss) | 2.5 | (1.2) | (11.1) | [5] | 0.6 | |
Total comprehensive income | $ 30 | $ 18.4 | $ 17 | $ 27.2 | ||
[1] | Net of tax benefit of $0.2 million and $0.1 million for the three months ended June 30, 2015 and 2014, respectively, and $2.8 million and $0.6 million for the six months ended June 30, 2015 and 2014, respectively. | |||||
[2] | Net of tax benefit of $0.4 million and nil for the three months ended June 30, 2015 and 2014, respectively, and $0.7 million and nil for the six months ended June 30, 2015 and 2014, respectively. | |||||
[3] | 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. | |||||
[4] | Net of tax benefit of nil and $1.2 million for the three months ended June 30, 2015 and 2014, respectively, and $1.2 million and $1.8 million for the six months ended June 30, 2015 and 2014, respectively. | |||||
[5] | See Note 13, “Accumulated Other Comprehensive Loss,” regarding the changes in the accumulated balances for each component of other comprehensive loss during the six months ended June 30, 2015. |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Currency translation adjustment, tax expense (benefit) | $ (0.2) | $ (0.1) | $ (2.8) | $ (0.6) |
Amortization of pension related costs, tax expense (benefit) | (0.4) | 0 | (0.7) | 0 |
Revaluation of derivative financial instrument, tax expense (benefit) | $ 0 | $ (1.2) | $ (1.2) | $ (1.8) |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ (557) | |||
Stock-based compensation amortization | 2.8 | |||
Excess tax benefits from stock-based compensation | 0.1 | |||
Net income | $ 27.5 | 28.1 | ||
Other comprehensive loss, net | 2.5 | (11.1) | [1] | |
Ending balance | (537.1) | (537.1) | ||
RCPC Preferred Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 54.6 | |||
Ending balance | 54.6 | 54.6 | ||
Additional Paid-In-Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 952.1 | |||
Stock-based compensation amortization | 2.8 | |||
Excess tax benefits from stock-based compensation | 0.1 | |||
Ending balance | 955 | 955 | ||
Accumulated Deficit | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (1,320.5) | |||
Net income | 28.1 | |||
Ending balance | (1,292.4) | (1,292.4) | ||
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (243.2) | |||
Other comprehensive loss, net | [1] | (11.1) | ||
Ending balance | $ (254.3) | $ (254.3) | ||
[1] | See Note 13, “Accumulated Other Comprehensive Loss,” regarding the changes in the accumulated balances for each component of other comprehensive loss during the six months ended June 30, 2015. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 28.1 | $ 26.6 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 50.8 | 50.8 |
Foreign currency losses from re-measurement | 8.8 | 7.4 |
Amortization of debt discount | 0.7 | 0.7 |
Stock-based compensation amortization | 2.8 | 0.5 |
Provision for deferred income taxes | 19.5 | 21.5 |
Loss on early extinguishment of debt | 0 | 2 |
Amortization of debt issuance costs | 2.8 | 2.8 |
Gain on sale of certain assets | (3) | (0.1) |
Pension and other post-retirement income | (1.3) | (2.6) |
Change in assets and liabilities: | ||
Increase in trade receivables | (18.7) | (22.1) |
Increase in inventories | (36.1) | (14.7) |
Increase in prepaid expenses and other current assets | (25.2) | (8.9) |
Increase in accounts payable | 29.6 | 4.3 |
Decrease in accrued expenses and other current liabilities | (25.4) | (33.9) |
Pension and other post-retirement plan contributions | (5.2) | (11.7) |
Purchases of permanent displays | (22) | (26.3) |
Other, net | (3.7) | (2.7) |
Net cash provided by (used in) operating activities | 2.5 | (6.4) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (17.2) | (13.3) |
Business acquisitions, net of cash acquired | (34.2) | 0 |
Proceeds from the sale of certain assets | 2 | 0.2 |
Net cash used in investing activities | (49.4) | (13.1) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in short-term borrowings and overdraft | 6.6 | 7.4 |
Payment of financing costs | 0 | (1.8) |
Other financing activities | (2.1) | (1.4) |
Net cash used in financing activities | (23.5) | (57.7) |
Effect of exchange rate changes on cash and cash equivalents | (5.9) | (9.2) |
Net decrease in cash and cash equivalents | (76.3) | (86.4) |
Cash and cash equivalents at beginning of period | 275.3 | 244.1 |
Cash and cash equivalents at end of period | 199 | 157.7 |
Cash paid during the period for: | ||
Interest | 37.9 | 45.3 |
Income taxes, net of refunds | 10.8 | 12.6 |
Amended and Restated Senior Subordinated Term Loan | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of long term debt | 0 | (58.4) |
Acquisition Term Loan | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of long term debt | (15.9) | (3.5) |
2011 Term Loan | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of long term debt | $ (12.1) | $ 0 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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 a direct and indirect majority-owned 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 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 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 mass volume retailers and chain drug and food stores (collectively, the “mass retail channel”) in the U.S. and internationally, as well as certain department stores and other specialty stores, such as perfumeries, outside the U.S. The Company's principal customers for its products in the Professional segment include hair and nail salons and distributors 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"). 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 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 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 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, 2014, filed with the U.S. Securities and Exchange Commission (the "SEC") on March 12, 2015 (the "2014 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. Impact of Foreign Currency Translation - Venezuela Currency 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 of 6.3 Bolivars per U.S. Dollar (the "Official Rate") and 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. 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 trade 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. As of June 30, 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 of 193 Bolivars per U.S. Dollar. 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. As Venezuela was designated as a highly inflationary economy effective January 1, 2010, the Company reflected this foreign currency loss in earnings. Recently Adopted Accounting Pronouncements In April 2014, the FASB issued 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 will also be required. The guidance is effective for annual periods beginning on or after December 15, 2014, and is to be 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 or financial statement disclosures. Recently Issued Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which amends the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability, consistent with the presentation of debt discounts in the financial statements. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption permitted, and is to be applied retrospectively. The Company expects to adopt 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 financial statement disclosures. |
BUSINESS COMBINATIONS (Notes)
BUSINESS COMBINATIONS (Notes) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS The CBBeauty Group Acquisition On April 21, 2015 (the "Acquisition Date"), the Company completed the CBB Acquisition for a total cash consideration of $49.3 million . CBB is a U.K.-based company whose primary business consists of licensing and distributing fragrances under brands such as One Direction and Burberry. On the Acquisition Date, the Company used cash on hand to pay 70% of the total cash consideration, or $34.6 million . The remaining $14.7 million of the total cash consideration is payable over 4 years in equal annual installments, subject to the selling shareholders' compliance with certain service conditions. These remaining installments will be recorded as a component of SG&A expenses ratably over the 4-year period. CBB is expected to provide the Company with a platform to develop the Company's presence in the fragrance category. The results of operations of the CBB business are included in the Company’s Consolidated Financial Statements commencing on the Acquisition Date. Pro forma results of operations have not been presented, as the impact of the CBB Acquisition on the Company’s consolidated financial results is not material. The Company accounted for the CBB Acquisition as a business combination during the second quarter of 2015 and, accordingly, the total consideration of $34.6 million paid on the Acquisition Date has been recorded based on the respective estimated fair values of the net assets acquired on the Acquisition Date, with resulting goodwill, as follows: Fair Values at April 21, 2015 Total Net Assets Acquired (a) $ 3.9 Purchased Intangible Assets (b) 11.9 Goodwill 18.8 Total consideration $ 34.6 (a) Total net assets acquired in the CBB Acquisition is comprised primarily of trade receivables and accounts payable. (b) Purchased intangible assets include customer networks valued at $7.4 million , distribution rights valued at $2.8 million and trade names valued at $1.7 million , with weighted average remaining useful lives of 15 , 9 and 5 years, respectively. The fair values of the net assets acquired in the CBB 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 CBB’s assets and liabilities as of the Acquisition Date and may be adjusted upon completion of such analysis. In addition, information unknown at the time of the CBB Acquisition could result in adjustments to the respective fair values and resulting goodwill within the year following the CBB Acquisition. In determining the fair values of net assets acquired and resulting goodwill, 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. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring Charges [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES Integration Program Following Products Corporation's October 2013 acquisition of The Colomer Group Participations, S.L. ("Colomer" and the "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 expects to recognize total restructuring charges, capital expenditures and related non-restructuring costs under the Integration Program of approximately $50 million in the aggregate over the periods described below. The Integration Program is 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 designed to reduce selling, general and administrative ("SG&A") expenses. Certain actions that are part of the Integration Program are subject to consultations with employees, works councils or unions and governmental authorities. The Company expects to substantially complete the Integration Program by the end of 2015. The approximately $50 million of total expected non-restructuring costs, capital expenditures and restructuring charges under the Integration Program referred to above consist of the following: 1. $1.2 million and $18.4 million of non-restructuring integration costs recognized during the six months ended June 30, 2015 , and through December 31, 2014, respectively. Such costs have been reflected within acquisition and integration costs in the Company's Consolidated Statements of Income and Comprehensive Income and are related to combining Colomer’s operations into the Company’s business; 2. Expected integration-related capital expenditures of approximately $6 million , of which $0.7 million and $4.4 million has been paid during the six months ended June 30, 2015 and through December 31, 2014, respectively, with the remaining balance expected to be paid during the remainder of 2015; and 3. Expected total restructuring and related charges of approximately $22 million , of which $(2.4) million and $20.1 million was recognized during the six months ended June 30, 2015 and through December 31, 2014, respectively, with the remaining charges expected to be recognized during the remainder of 2015. A summary of the restructuring and related charges for the Integration Program incurred through June 30, 2015 and those expected to be incurred during the remainder of 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 in the six months ended June 30, 2015 $ (2.9 ) $ — $ (2.9 ) $ 0.2 $ 0.3 $ (2.4 ) Cumulative charges incurred through June 30, 2015 $ 14.4 $ 1.6 $ 16.0 $ 0.8 $ 0.9 $ 17.7 Total expected charges $ 15.0 $ 3.0 $ 18.0 $ 2.5 $ 1.5 $ 22.0 (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. (b) Other charges are recorded within SG&A expenses within the Company’s Consolidated Statements of Income and Comprehensive Income. During the six months ended June 30, 2015 , the Company recorded a benefit of $2.4 million in connection with the Integration Program, of which $3.8 million is related to the Consumer segment, partially offset by charges of $1.4 million related to the Professional segment. During the six months ended June 30, 2014 , the Company recorded charges related to the Integration Program of $15.7 million , of which $6.4 million related to the Consumer segment and $9.3 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 $21 million , of which $3.9 million was paid during the six months ended June 30, 2015 and $9.6 million was paid during 2014. The remaining balance of $7.5 million is expected to be paid during the remainder of 2015. December 2013 Program In December 2013, the Company announced restructuring actions that included exiting its business operations in China, as well as implementing other immaterial restructuring actions outside the U.S., which are expected to generate other 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 June 30, 2015 in connection with the December 2013 Program is 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 Cumulative charges incurred through June 30, 2015 $ 8.6 $ 0.3 $ 8.9 $ 6.5 $ 3.1 $ 0.4 $ 18.9 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 $15.5 million was paid in 2014 and $0.1 million was paid in 2013. No charges were incurred during the six months ended June 30, 2015 related to the December 2013 program. The remaining balance is expected to be paid in 2016. Restructuring Reserve The related liability balance and activity for each of the Company's restructuring programs as summarized above are presented as follows: Utilized, Net Balance Beginning of Year (Income) Expense, Net Foreign Currency Translation Cash Non-cash Balance End of Year Integration Program: Employee severance and other personnel benefits $ 9.6 $ (2.9 ) $ (0.1 ) $ (3.4 ) $ — $ 3.2 Other 0.1 — — (0.1 ) — — December 2013 Program: Employee severance and other personnel benefits 1.2 — — — — 1.2 Other — — — — — — Other immaterial actions: (a) Employee severance and other personnel benefits 3.1 (0.2 ) — (1.6 ) — 1.3 Other — — — — — — Total restructuring reserve $ 14.0 $ (3.1 ) $ (0.1 ) $ (5.1 ) $ — $ 5.7 (a) Other immaterial actions primarily include liabilities for employee-related costs within both the Consumer and Professional reportable segments related to immaterial restructuring actions. As of June 30, 2015 , $5.7 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
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On December 30, 2013, the Company announced that it was implementing restructuring actions that included exiting its business operations in China (refer to Note 3, "Restructuring Charges - December 2013 Program"). The results of the China discontinued operations are included within loss from discontinued operations, net of taxes, and relate 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, 2015 2014 2015 2014 Net sales $ — $ 2.2 $ — $ 2.6 Income (loss) from discontinued operations, before taxes — 3.5 (0.1 ) 0.7 Provision for income taxes — (0.2 ) — 0.2 Income (loss) from discontinued operations, net of taxes — 3.7 (0.1 ) 0.5 Assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consist of the following: June 30, 2015 December 31, 2014 Cash and cash equivalents $ 2.9 $ 2.4 Trade receivables, net 0.2 0.2 Total current assets 3.1 2.6 Total assets $ 3.1 $ 2.6 Accounts payable $ 0.7 $ 0.2 Accrued expenses and other 3.8 3.9 Total current liabilities 4.5 4.1 Total liabilities $ 4.5 $ 4.1 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES June 30, 2015 December 31, 2014 Raw materials and supplies $ 63.3 $ 47.2 Work-in-process 11.0 9.0 Finished goods 122.3 100.4 $ 196.6 $ 156.6 |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The following table presents the changes in goodwill by segment during the six months ended June 30, 2015 : Consumer Professional Other Total Balance at December 31, 2014 $ 217.9 $ 246.2 $ — $ 464.1 Goodwill acquired — — 18.8 18.8 Foreign currency translation adjustment — (4.6 ) — (4.6 ) Balance at June 30, 2015 $ 217.9 $ 241.6 $ 18.8 $ 478.3 The goodwill acquired during 2015 relates to the CBB Acquisition and was assigned to the Company's Other segment. 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. Intangible Assets, Net The following tables present details of the Company's total intangible assets: June 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and Licenses $ 140.2 $ (29.0 ) $ 111.2 14 Customer relationships 118.4 (16.9 ) 101.5 16 Patents and Internally-Developed IP 16.3 (3.1 ) 13.2 10 Distribution rights 2.8 (0.1 ) 2.7 5 Total finite-lived intangible assets $ 277.7 $ (49.1 ) $ 228.6 Indefinite-lived intangible assets: Trade Names $ 96.4 $ — $ 96.4 Total indefinite-lived intangible assets $ 96.4 $ — $ 96.4 Total intangible assets $ 374.1 $ (49.1 ) $ 325.0 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 |
ACCRUED EXPENSES AND OTHER
ACCRUED EXPENSES AND OTHER | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER | ACCRUED EXPENSES AND OTHER June 30, 2015 December 31, 2014 Sales returns and allowances $ 58.6 $ 70.6 Compensation and related benefits 53.9 66.8 Advertising and promotional costs 40.6 44.9 Taxes 25.8 23.3 Interest 12.4 11.0 Restructuring reserve 5.7 13.7 Other 49.4 43.0 $ 246.4 $ 273.3 |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT June 30, 2015 December 31, 2014 Amended Term Loan Facility: Acquisition Term Loan due 2019, net of discounts (a) $ 675.8 $ 691.6 Amended Term Loan Facility: 2011 Term Loan due 2017, net of discounts (a) 660.1 671.6 Amended Revolving Credit Facility (b) — — 5¾% Senior Notes due 2021 (c) 500.0 500.0 Spanish Government Loan due 2025 (d) 0.6 0.7 1,836.5 1,863.9 Less current portion (*) (6.9 ) (31.5 ) $ 1,829.6 $ 1,832.4 (*) At December 31, 2014, the Company classified $31.5 million of long-term debt as a current liability, which was primarily comprised of a $24.6 million required “excess cash flow” prepayment (as defined under the Amended Term Loan Agreement, as hereinafter defined) which was paid on March 12, 2015 and the Company’s regularly scheduled $1.7 million quarterly principal amortization payments (after giving effect to such prepayment) due in 2015. (a) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2014 Form 10-K for certain details regarding Products Corporation's amended term loan agreement, which facility is comprised of (i) the $675.0 million term loan due November 19, 2017 (the "2011 Term Loan") and (ii) the $700.0 million term loan due October 8, 2019 (the "Acquisition Term Loan") which had $1,340.0 million in aggregate principal balance outstanding at June 30, 2015 (together, the "Amended Term Loan Agreement"). (b) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2014 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"). (c) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2014 Form 10-K for certain details regarding Products Corporation's 5¾% Senior Notes that mature on February 15, 2021. (d) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2014 Form 10-K for certain details regarding the euro-denominated loan payable to the Spanish government that matures on June 30, 2025. 2015 Debt Related Transaction Amended Term Loan Facility - Excess Cash Flow Payment On March 12, 2015, in accordance with the terms of the Amended Term Loan Facility, Products Corporation prepaid $24.6 million of indebtedness, representing 50% of its 2014 “excess cash flow” as defined under the Amended Term Loan Agreement. 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 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 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 the prepayment and through its maturity on October 8, 2019. 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, 2015 . At June 30, 2015 , the aggregate principal amounts outstanding under the Acquisition Term Loan and the 2011 Term Loan were $677.1 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 . Products Corporation was in compliance with all applicable covenants under its 5¾% Senior Notes Indenture as of June 30, 2015 and December 31, 2014. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 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, 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) $ 0.7 $ — $ 0.7 $ — Total assets at fair value $ 0.7 $ — $ 0.7 $ — Liabilities: Derivatives: FX Contracts (a) $ 0.2 $ — $ 0.2 $ — 2013 Interest Rate Swap (b) 7.1 — 7.1 — Total liabilities at fair value $ 7.3 $ — $ 7.3 $ — 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 10, “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 10, “Financial Instruments.” As of June 30, 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 $ — $ 1,828.9 $ — $ 1,828.9 $ 1,836.5 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 the quoted market prices for the same issues. The carrying amounts of cash and cash equivalents, trade receivables, notes receivable, accounts payable and short-term borrowings approximate their fair values. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | 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 June 30, 2015 and December 31, 2014 , respectively. Included in these amounts are approximately $7.5 million and $7.7 million at June 30, 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 June 30, 2015 and December 31, 2014 was $61.2 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 its Acquisition Term Loan with respect to the $400 million notional amount over the three -year term of the 2013 Interest Rate Swap. Under the terms of the 2013 Interest Rate Swap, Products Corporation will receive from the counterparty a floating interest rate based on the higher of three-month USD LIBOR or 1.00% , which commenced in May 2015, 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, 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 June 30, 2015 , the balance of deferred net losses on derivatives included in accumulated other comprehensive loss was $4.2 million after-tax. (See " Quantitative Information – Derivative Financial Instruments " below). The Company expects that $2.3 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 $0.7 million and $0.2 million as of June 30, 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 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 $ 2.1 Other assets — — Other long-term liabilities 2.9 1.4 Derivatives not designated as hedging instruments: FX Contracts (ii) Prepaid expenses and other $ 0.7 $ 0.2 Accrued Expenses $ 0.2 $ — (i) The fair values of the 2013 Interest Rate Swap at June 30, 2015 and December 31, 2014 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at June 30, 2015 and December 31, 2014 , respectively. (ii) The fair values of the FX Contracts at June 30, 2015 and December 31, 2014 were measured based on observable market transactions of spot and forward rates at June 30, 2015 and December 31, 2014 , 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, 2015 and 2014 : Amount of Gain (Loss) Recognized in Other Comprehensive Income Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Derivatives designated as hedging instruments: 2013 Interest Rate Swap, net of tax (a) $ (0.1 ) $ (1.9 ) $ (2.0 ) $ (2.9 ) (a) Net of tax benefit of nil and $1.2 million for the three months ended June 30, 2015 and 2014, respectively, and $1.2 million and $1.8 million for the six month ended June 30, 2015 and 2014, respectively. Income Statement Classification Amount of Gain (Loss) Recognized in Net Income Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Derivatives designated as hedging instruments: 2013 Interest Rate Swap Interest Expense $ (0.5 ) $ — $ (0.5 ) $ — Derivatives not designated as hedging instruments: FX Contracts Foreign currency gain (loss), net $ 0.4 $ (1.2 ) $ 0.9 $ (1.3 ) |
PENSION AND POST-RETIREMENT BEN
PENSION AND POST-RETIREMENT BENEFITS | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
PENSION AND POST-RETIREMENT BENEFITS | 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 2015 and 2014 are as follows: Other Three Months Ended June 30, 2015 2014 2015 2014 Net periodic benefit (income) costs: Service cost $ 0.2 $ 0.2 $ — $ — Interest cost 7.1 7.6 0.1 0.1 Expected return on plan assets (10.2 ) (10.3 ) — — Amortization of actuarial loss 2.1 1.0 0.1 0.1 (0.8 ) (1.5 ) 0.2 0.2 Portion allocated to Revlon Holdings (0.1 ) — — — $ (0.9 ) $ (1.5 ) $ 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 2015 and 2014 are as follows: Other Six Months Ended June 30, 2015 2014 2015 2014 Net periodic benefit (income) costs: Service cost $ 0.4 $ 0.4 $ — $ — Interest cost 14.3 15.1 0.2 0.3 Expected return on plan assets (20.3 ) (20.7 ) — — Amortization of actuarial loss 4.1 2.2 0.1 0.1 (1.5 ) (3.0 ) 0.3 0.4 Portion allocated to Revlon Holdings (0.1 ) — — — $ (1.6 ) $ (3.0 ) $ 0.3 $ 0.4 In the three and six months ended June 30, 2015 , the Company recognized net periodic benefit income of $0.7 million and $1.3 million , respectively, compared to $1.3 million and $2.6 million in the three and six months ended June 30, 2014 , respectively, primarily due to higher amortization of actuarial losses. Net periodic benefit (income) costs are reflected in the Company's Consolidated Financial Statements as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net periodic benefit (income) costs: Cost of sales $ (1.0 ) $ (1.1 ) $ (2.0 ) $ (1.8 ) Selling, general and administrative expense 0.3 (0.1 ) 0.7 (0.3 ) Inventories — (0.1 ) — (0.5 ) $ (0.7 ) $ (1.3 ) $ (1.3 ) $ (2.6 ) The Company expects that it will have net periodic benefit income of approximately $ 2.4 million for its pension and other post-retirement benefit plans for all of 2015 , compared with net periodic benefit income of $ 5.4 million in 2014 . During the second quarter of 2015 , $ 2.4 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 2015 , $ 4.8 million and $ 0.4 million were contributed to the Company’s pension plans and other post-retirement benefit plans, respectively. The Company currently expects to contribute approximately $20 million in the aggregate to its pension and other post-retirement benefit plans in 2015 . 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 2014 Form 10-K. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 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 re-measurement 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 2015 and 2014 , the Company recorded a provision for income taxes of $ 21.4 million and $19.3 million , respectively. The $2.1 million increase in the provision for income taxes was primarily attributable to higher pretax income in the second quarter of 2015. For the first six months of 2015 and 2014 , the Company recorded a provision for income taxes of $ 31.0 million and $ 27.0 million , respectively. The $ 4.0 million increase in the provision for income taxes was primarily attributable to certain discrete items that favorably affected the provision for income taxes in the first six months of 2014, which did not recur in the first six months of 2015, partially offset by the timing of the recognition of the provision for income taxes based on pretax income for the first six months of 2015 as compared to the first six months of 2014. The Company's effective tax rate for the three months ended June 30, 2015 was higher than the federal statutory rate of 35% due principally to foreign dividends and earnings taxable in the U.S. and state and local taxes. The Company's effective tax rate for the six months ended June 30, 2015 was higher than the federal statutory rate of 35% due principally to foreign and U.S. tax effects attributable to operations outside the U.S., foreign dividends and earnings taxable in the U.S. and state and local taxes. 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, 2010 through December 31, 2013, the U.S. (federal) and South Africa for tax years ended December 31, 2011 through December 31, 2013, and Canada for tax years ended December 31, 2011 through December 31, 2014. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss as of June 30, 2015 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, 2015 $ (5.4 ) $ (235.3 ) $ (2.2 ) $ (0.3 ) $ (243.2 ) Currency translation adjustment, net of tax benefit of $2.8 million $ (12.6 ) (12.6 ) Amortization of pension related costs, net of tax benefit of $0.7 million (a) $ 3.5 3.5 Revaluation of derivative financial instrument, net of tax benefit of $1.2 million (b) $ (2.0 ) (2.0 ) Other comprehensive loss (12.6 ) 3.5 (2.0 ) — (11.1 ) Balance at June 30, 2015 $ (18.0 ) $ (231.8 ) $ (4.2 ) $ (0.3 ) $ (254.3 ) (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 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, 2015 , the 2013 Interest Rate Swap was deemed effective and therefore, the changes in fair value related to the 2013 Interest Rate Swap are recorded in other comprehensive 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 qualify for hedge accounting. 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 benefit) (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 ) (a) Reclassified to interest expense. 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2014 (2.2 ) Reclassifications into earnings (net of $0.2 million tax benefit) (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. There were no amounts reclassified into earnings during 2014. |
SEGMENT DATA AND RELATED INFORM
SEGMENT DATA AND RELATED INFORMATION | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT DATA AND RELATED INFORMATION | 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 “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, marketing and distribution processes for all of the Company’s products, much of the information provided in the consolidated financial statements is similar to, or the same as, that reviewed on a regular basis by the Company's management. At June 30, 2015 , the Company’s operations are organized into the following operating segments: • Consumer - The Consumer segment is comprised of the Company's consumer brands, which primarily include Revlon , Almay , SinfulColors and Pure Ice in 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 the mass retail channel, consisting of large mass volume retailers and chain drug and food stores in the U.S. and internationally, as well as certain department stores and other specialty stores, such as perfumeries, outside the U.S. The Consumer segment also includes a skincare line and hair color line sold in the mass retail channel, 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 in the professional salon channel. The Company’s principal customers for its professional products include hair and nail salons and distributors in the U.S. and internationally. The Professional segment also includes a multi-cultural line consisting of Creme of Nature hair care products sold in the mass retail channel and in 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. 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) costs of sales resulting from a fair value adjustment in the second quarter of 2015 to inventory acquired in the CBB Acquisition; and (iv) costs of sales resulting from a fair value adjustment in the first quarter of 2014 to inventory acquired in the Colomer Acquisition. 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, $2.1 million and $4.1 million in pension-related costs were reclassified from the measurement of Consumer segment profit and included as a component of unallocated corporate expenses for the three and six months ended June 30, 2014, 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” in the Company's 2014 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 operating segments is produced for the Company's management or included in these financial statements. The following table is a comparative summary of the Company’s net sales and segment profit by operating segment for the three and six months ended June 30, 2015 and 2014 . In the table below, certain prior period amounts have been reclassified to conform to the presentation for 2015. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Segment Net Sales: Consumer $ 354.7 $ 367.3 $ 679.0 $ 706.8 Professional 123.4 130.6 237.6 260.9 Other $ 4.3 $ — $ 4.3 $ — Total $ 482.4 $ 497.9 $ 920.9 $ 967.7 Segment Profit: Consumer (a) $ 83.8 $ 80.3 $ 146.0 $ 149.8 Professional 24.3 31.4 53.5 63.3 Other $ (0.5 ) $ — $ (0.5 ) $ — Total $ 107.6 $ 111.7 $ 199.0 $ 213.1 Reconciliation: Segment Profit $ 107.6 $ 111.7 $ 199.0 $ 213.1 Less: Unallocated corporate expenses (a) 15.8 15.7 30.5 27.1 Depreciation and amortization 25.2 26.0 50.8 50.8 Non-cash stock compensation expense 1.2 0.3 2.8 0.5 Non-recurring items: Restructuring and related charges (3.0 ) 4.1 (2.3 ) 17.7 Acquisition and integration costs 4.7 0.7 5.9 4.5 Inventory purchase accounting adjustment, cost of sales 0.6 — 0.6 2.6 Operating Income 63.1 64.9 110.7 109.9 Less: Interest Expense 20.5 21.0 40.5 43.3 Amortization of debt issuance costs 1.4 1.4 2.8 2.8 Loss on early extinguishment of debt — 0.1 — 2.0 Foreign currency losses (gains), net (7.9 ) 7.2 8.0 8.6 Miscellaneous, net 0.2 — 0.2 0.1 Income from continuing operations before income taxes $ 48.9 $ 35.2 $ 59.2 $ 53.1 (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, $2.1 million and $4.1 million in pension-related costs were reclassified from the measurement of Consumer segment profit and included as a component of unallocated corporate expenses for the three and six months ended June 30, 2014, respectively. As of June 30, 2015 , the Company had operations established in 24 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, 2015 2014 2015 2014 Geographic area: Net sales: United States $ 267.0 55% $ 255.2 51% $ 511.4 56% $ 505.4 52% Outside of the United States 215.4 45% 242.7 49% 409.5 44% 462.3 48% $ 482.4 $ 497.9 $ 920.9 $ 967.7 June 30, 2015 December 31, 2014 Long-lived assets, net: United States $ 838.4 75% $ 845.5 76% Outside of the United States 280.6 25% 271.7 24% $ 1,119.0 $ 1,117.2 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Classes of similar products: Net sales: Color cosmetics $ 266.0 55% $ 265.6 53% $ 505.5 55% $ 520.9 54% Hair care 130.0 27% 142.0 29% 256.9 28% 272.7 28% Beauty care and fragrance 86.4 18% 90.3 18% 158.5 17% 174.1 18% $ 482.4 $ 497.9 $ 920.9 $ 967.7 |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | 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. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Reimbursement Agreements As previously disclosed in the Company's 2014 Form 10-K, 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 Revlon, Inc. and its subsidiaries, including, without limitation, Products Corporation, and to purchase services from third party providers, such as insurance, legal, accounting and air transportation services, on behalf of Revlon, Inc. and its subsidiaries, including Products Corporation, 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 purchased for or provided by MacAndrews & Forbes to the Company and its subsidiaries and for the reasonable out-of-pocket expenses incurred by MacAndrews & Forbes in connection with the provision of such services. MacAndrews & Forbes reimburses Products Corporation for the allocable costs of the services purchased for or provided by Products Corporation to MacAndrews & Forbes and for the reasonable out-of-pocket expenses incurred 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. 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 its 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 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, 2015 and 2014 was $2.3 million and $3.8 million , respectively, which primarily includes partial payments made by the Company to MacAndrews & Forbes during the first quarter of 2015 and 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 . As of June 30, 2015 and December 31, 2014 , a receivable balance of $0.1 million and nil , respectively, from MacAndrews & Forbes was included in the Company's Consolidated Balance Sheets for transactions subject to the Reimbursement Agreements. |
GUARANTOR FINANCIAL INFORMATION
GUARANTOR FINANCIAL INFORMATION | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GUARANTOR FINANCIAL INFORMATION | 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”). In January 2014, Colomer’s U.S.-domiciled subsidiaries (the “Colomer U.S. Subsidiaries”) became additional guarantors under Products Corporation’s Amended Term Loan Facility and Amended Revolving Credit Facility and the indenture for the 5¾% Senior Notes. In January 2015, a newly-formed U.S.-domiciled entity in the Professional segment became an additional guarantor under such debt instruments. In May 2015, a newly-formed U.S.-domiciled entity formed in connection with the CBB Acquisition became an additional guarantor under such debt instruments. The following Condensed Consolidating Financial Statements present the financial information as of June 30, 2015 and December 31, 2014, and for the three and six month periods ended June 30, 2015 and 2014 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 Amended Term Loan Facility, Amended Revolving Credit Facility and 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, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 66.4 $ 86.8 $ 45.8 $ — $ 199.0 Trade receivables, less allowances for doubtful accounts 90.5 46.2 119.7 — 256.4 Inventories 91.8 40.8 64.0 — 196.6 Deferred income taxes - current 47.5 — 11.7 — 59.2 Prepaid expenses and other 133.1 7.2 33.5 — 173.8 Intercompany receivables 987.2 647.3 117.2 (1,751.7 ) — Investment in subsidiaries 583.5 (147.7 ) — (435.8 ) — Property, plant and equipment, net 113.0 27.7 64.3 — 205.0 Deferred income taxes - noncurrent 1.9 — 14.0 — 15.9 Goodwill 185.8 29.5 263.0 — 478.3 Intangible assets, net 53.9 160.3 110.8 — 325.0 Other assets 78.9 6.8 24.0 — 109.7 Total assets $ 2,433.5 $ 904.9 $ 868.0 $ (2,187.5 ) $ 2,018.9 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 8.5 $ — $ 8.5 Current portion of long-term debt 6.9 — — — 6.9 Accounts payable 79.3 30.0 79.7 — 189.0 Accrued expenses and other 150.6 19.8 76.0 — 246.4 Intercompany payables 676.4 707.6 367.7 (1,751.7 ) — Long-term debt 1,829.0 — 0.6 — 1,829.6 Other long-term liabilities 228.4 1.3 45.9 — 275.6 Total liabilities 2,970.6 758.7 578.4 (1,751.7 ) 2,556.0 Stockholder’s deficiency (537.1 ) 146.2 289.6 (435.8 ) (537.1 ) Total liabilities and stockholder’s deficiency $ 2,433.5 $ 904.9 $ 868.0 $ (2,187.5 ) $ 2,018.9 (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 Operations and Comprehensive Income (Loss) For the Three Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries (a) 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, net: 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) losses, net (1.4 ) — (6.5 ) — (7.9 ) Miscellaneous, net 11.4 (2.9 ) (8.3 ) — 0.2 Other expenses, 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 Loss from discontinued operations, net of taxes — — — — — Equity in income (loss) of subsidiaries 35.9 22.6 — (58.5 ) — Net income (loss) $ 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 (loss) $ 30.0 $ 25.7 $ 32.8 $ (58.5 ) $ 30.0 (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 Operations and Comprehensive Income (Loss) For the Three Months Ended June 30, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 256.1 $ 88.5 $ 204.9 $ (51.6 ) $ 497.9 Cost of sales 115.7 33.7 69.4 (51.6 ) 167.2 Gross profit 140.4 54.8 135.5 — 330.7 Selling, general and administrative expenses 121.6 33.0 106.7 — 261.3 Acquisition and integration costs 0.7 — — — 0.7 Restructuring charges and other, net — 1.3 2.5 — 3.8 Operating income 18.1 20.5 26.3 — 64.9 Other expenses, net: Intercompany interest, net (2.1 ) (0.2 ) 2.3 — — Interest expense 20.6 0.1 0.3 — 21.0 Amortization of debt issuance costs 1.4 — — — 1.4 Loss on early extinguishment of debt, net 0.1 — — — 0.1 Foreign currency (gains) losses, net (6.1 ) 0.1 13.2 — 7.2 Miscellaneous, net (11.9 ) (1.2 ) 13.1 — — Other expenses, net 2.0 (1.2 ) 28.9 — 29.7 Income (loss) from continuing operations before income taxes 16.1 21.7 (2.6 ) — 35.2 Provision for (benefit from) income taxes 40.2 (26.4 ) 5.5 — 19.3 (Loss) income from continuing operations (24.1 ) 48.1 (8.1 ) — 15.9 Loss from discontinued operations, net of taxes 0.2 — 3.5 — 3.7 Equity in income (loss) of subsidiaries 43.5 (12.1 ) — (31.4 ) — Net income (loss) $ 19.6 $ 36.0 $ (4.6 ) $ (31.4 ) $ 19.6 Other comprehensive (loss) income (1.2 ) (1.1 ) (1.6 ) 2.7 (1.2 ) Total comprehensive income (loss) $ 18.4 $ 34.9 $ (6.2 ) $ (28.7 ) $ 18.4 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) For the Six Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries (a) 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, net: 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, 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 income (loss) of subsidiaries 25.7 12.4 — (38.1 ) — Net income (loss) $ 28.1 $ 32.4 $ 5.7 $ (38.1 ) $ 28.1 Other comprehensive (loss) income (11.1 ) (2.8 ) (13.3 ) 16.1 (11.1 ) Total comprehensive income (loss) $ 17.0 $ 29.6 $ (7.6 ) $ (22.0 ) $ 17.0 (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 Operations and Comprehensive Income (Loss) For the Six Months Ended June 30, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 495.5 $ 181.5 $ 388.1 $ (97.4 ) $ 967.7 Cost of sales 220.7 72.8 134.6 (97.4 ) 330.7 Gross profit 274.8 108.7 253.5 — 637.0 Selling, general and administrative expenses 234.4 63.3 207.6 — 505.3 Acquisition and integration costs 4.5 — — — 4.5 Restructuring charges and other, net 2.3 3.1 11.9 — 17.3 Operating income 33.6 42.3 34.0 — 109.9 Other expenses, net: Intercompany interest, net (4.2 ) (0.3 ) 4.5 — — Interest expense 42.8 0.1 0.4 — 43.3 Amortization of debt issuance costs 2.8 — — — 2.8 Loss on early extinguishment of debt, net 2.0 — — — 2.0 Foreign currency (gains) losses, net (6.6 ) 0.2 15.0 — 8.6 Miscellaneous, net (29.3 ) (0.9 ) 30.3 — 0.1 Other expenses, net 7.5 (0.9 ) 50.2 — 56.8 Income (loss) from continuing operations before income taxes 26.1 43.2 (16.2 ) — 53.1 Provision for (benefit from) income taxes 53.5 (27.9 ) 1.4 — 27.0 (Loss) income from continuing operations (27.4 ) 71.1 (17.6 ) — 26.1 Income from discontinued operations, net of taxes 0.2 — 0.3 — 0.5 Equity in income (loss) of subsidiaries 53.8 (15.2 ) — (38.6 ) — Net income (loss) $ 26.6 $ 55.9 $ (17.3 ) $ (38.6 ) $ 26.6 Other comprehensive income (loss) 0.6 (0.2 ) (1.2 ) 1.4 0.6 Total comprehensive income (loss) $ 27.2 $ 55.7 $ (18.5 ) $ (37.2 ) $ 27.2 Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries (a) 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 (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 For the Six Months Ended June 30, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash (used in) provided by operating activities $ (22.8 ) $ 27.7 $ (11.3 ) $ — $ (6.4 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (9.2 ) (0.2 ) (3.9 ) — (13.3 ) Proceeds from the sale of certain assets — — 0.2 — 0.2 Net cash used in investing activities (9.2 ) (0.2 ) (3.7 ) — (13.1 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase in short-term borrowings and overdraft 2.4 1.3 3.7 — 7.4 Repayment under the Amended and Restated Senior Subordinated Term Loan (58.4 ) — — — (58.4 ) Repayments under the Acquisition Term Loan (3.5 ) — — — (3.5 ) Payment of financing costs (1.8 ) — — — (1.8 ) Other financing activities (1.2 ) — (0.2 ) — (1.4 ) Net cash (used in) provided by financing activities (62.5 ) 1.3 3.5 — (57.7 ) Effect of exchange rate changes on cash and cash equivalents — — (9.2 ) — (9.2 ) Net (decrease) increase in cash and cash equivalents (94.5 ) 28.8 (20.7 ) — (86.4 ) 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 $ 46.8 $ 43.3 $ 67.6 $ — $ 157.7 (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. |
DESCRIPTION OF BUSINESS AND S25
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 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 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 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 mass volume retailers and chain drug and food stores (collectively, the “mass retail channel”) in the U.S. and internationally, as well as certain department stores and other specialty stores, such as perfumeries, outside the U.S. The Company's principal customers for its products in the Professional segment include hair and nail salons and distributors 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"). 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 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 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 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, 2014, filed with the U.S. Securities and Exchange Commission (the "SEC") on March 12, 2015 (the "2014 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. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Impact of Foreign Currency Translation - Venezuela Currency 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 of 6.3 Bolivars per U.S. Dollar (the "Official Rate") and 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. 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 trade 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. As of June 30, 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 of 193 Bolivars per U.S. Dollar. 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. As Venezuela was designated as a highly inflationary economy effective January 1, 2010, the Company reflected this foreign currency loss in earnings. |
Recently Adopted Accounting Pronouncements [Policy Text Block] | Recently Adopted Accounting Pronouncements In April 2014, the FASB issued 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 will also be required. The guidance is effective for annual periods beginning on or after December 15, 2014, and is to be 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 or financial statement disclosures. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Recently Issued Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which amends the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability, consistent with the presentation of debt discounts in the financial statements. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption permitted, and is to be applied retrospectively. The Company expects to adopt 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 financial statement disclosures. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Purchase Price Allocation | Fair Values at April 21, 2015 Total Net Assets Acquired (a) $ 3.9 Purchased Intangible Assets (b) 11.9 Goodwill 18.8 Total consideration $ 34.6 (a) Total net assets acquired in the CBB Acquisition is comprised primarily of trade receivables and accounts payable. (b) Purchased intangible assets include customer networks valued at $7.4 million , distribution rights valued at $2.8 million and trade names valued at $1.7 million , with weighted average remaining useful lives of 15 , 9 and 5 years, respectively. |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring Activities | A summary of the restructuring and related charges incurred through June 30, 2015 in connection with the December 2013 Program is 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 Cumulative charges incurred through June 30, 2015 $ 8.6 $ 0.3 $ 8.9 $ 6.5 $ 3.1 $ 0.4 $ 18.9 Total expected charges $ 8.6 $ 0.3 $ 8.9 $ 6.5 $ 3.1 $ 0.4 $ 18.9 A summary of the restructuring and related charges for the Integration Program incurred through June 30, 2015 and those expected to be incurred during the remainder of 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 in the six months ended June 30, 2015 $ (2.9 ) $ — $ (2.9 ) $ 0.2 $ 0.3 $ (2.4 ) Cumulative charges incurred through June 30, 2015 $ 14.4 $ 1.6 $ 16.0 $ 0.8 $ 0.9 $ 17.7 Total expected charges $ 15.0 $ 3.0 $ 18.0 $ 2.5 $ 1.5 $ 22.0 (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. (b) Other charges are recorded within SG&A expenses within the Company’s Consolidated Statements of Income and Comprehensive Income. |
Schedule of Restructuring Reserve by Type of Cost | The related liability balance and activity for each of the Company's restructuring programs as summarized above are presented as follows: Utilized, Net Balance Beginning of Year (Income) Expense, Net Foreign Currency Translation Cash Non-cash Balance End of Year Integration Program: Employee severance and other personnel benefits $ 9.6 $ (2.9 ) $ (0.1 ) $ (3.4 ) $ — $ 3.2 Other 0.1 — — (0.1 ) — — December 2013 Program: Employee severance and other personnel benefits 1.2 — — — — 1.2 Other — — — — — — Other immaterial actions: (a) Employee severance and other personnel benefits 3.1 (0.2 ) — (1.6 ) — 1.3 Other — — — — — — Total restructuring reserve $ 14.0 $ (3.1 ) $ (0.1 ) $ (5.1 ) $ — $ 5.7 (a) Other immaterial actions primarily include liabilities for employee-related costs within both the Consumer and Professional reportable segments related to immaterial restructuring actions. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The results of the China discontinued operations are included within loss from discontinued operations, net of taxes, and relate 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, 2015 2014 2015 2014 Net sales $ — $ 2.2 $ — $ 2.6 Income (loss) from discontinued operations, before taxes — 3.5 (0.1 ) 0.7 Provision for income taxes — (0.2 ) — 0.2 Income (loss) from discontinued operations, net of taxes — 3.7 (0.1 ) 0.5 Assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consist of the following: June 30, 2015 December 31, 2014 Cash and cash equivalents $ 2.9 $ 2.4 Trade receivables, net 0.2 0.2 Total current assets 3.1 2.6 Total assets $ 3.1 $ 2.6 Accounts payable $ 0.7 $ 0.2 Accrued expenses and other 3.8 3.9 Total current liabilities 4.5 4.1 Total liabilities $ 4.5 $ 4.1 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | June 30, 2015 December 31, 2014 Raw materials and supplies $ 63.3 $ 47.2 Work-in-process 11.0 9.0 Finished goods 122.3 100.4 $ 196.6 $ 156.6 |
GOODWILL AND INTANGIBLE ASSET30
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill by Segment | The following table presents the changes in goodwill by segment during the six months ended June 30, 2015 : Consumer Professional Other Total Balance at December 31, 2014 $ 217.9 $ 246.2 $ — $ 464.1 Goodwill acquired — — 18.8 18.8 Foreign currency translation adjustment — (4.6 ) — (4.6 ) Balance at June 30, 2015 $ 217.9 $ 241.6 $ 18.8 $ 478.3 |
Summary of Intangible Assets | The following tables present details of the Company's total intangible assets: June 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and Licenses $ 140.2 $ (29.0 ) $ 111.2 14 Customer relationships 118.4 (16.9 ) 101.5 16 Patents and Internally-Developed IP 16.3 (3.1 ) 13.2 10 Distribution rights 2.8 (0.1 ) 2.7 5 Total finite-lived intangible assets $ 277.7 $ (49.1 ) $ 228.6 Indefinite-lived intangible assets: Trade Names $ 96.4 $ — $ 96.4 Total indefinite-lived intangible assets $ 96.4 $ — $ 96.4 Total intangible assets $ 374.1 $ (49.1 ) $ 325.0 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 |
ACCRUED EXPENSES AND OTHER (Tab
ACCRUED EXPENSES AND OTHER (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other | June 30, 2015 December 31, 2014 Sales returns and allowances $ 58.6 $ 70.6 Compensation and related benefits 53.9 66.8 Advertising and promotional costs 40.6 44.9 Taxes 25.8 23.3 Interest 12.4 11.0 Restructuring reserve 5.7 13.7 Other 49.4 43.0 $ 246.4 $ 273.3 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | June 30, 2015 December 31, 2014 Amended Term Loan Facility: Acquisition Term Loan due 2019, net of discounts (a) $ 675.8 $ 691.6 Amended Term Loan Facility: 2011 Term Loan due 2017, net of discounts (a) 660.1 671.6 Amended Revolving Credit Facility (b) — — 5¾% Senior Notes due 2021 (c) 500.0 500.0 Spanish Government Loan due 2025 (d) 0.6 0.7 1,836.5 1,863.9 Less current portion (*) (6.9 ) (31.5 ) $ 1,829.6 $ 1,832.4 (*) At December 31, 2014, the Company classified $31.5 million of long-term debt as a current liability, which was primarily comprised of a $24.6 million required “excess cash flow” prepayment (as defined under the Amended Term Loan Agreement, as hereinafter defined) which was paid on March 12, 2015 and the Company’s regularly scheduled $1.7 million quarterly principal amortization payments (after giving effect to such prepayment) due in 2015. (a) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2014 Form 10-K for certain details regarding Products Corporation's amended term loan agreement, which facility is comprised of (i) the $675.0 million term loan due November 19, 2017 (the "2011 Term Loan") and (ii) the $700.0 million term loan due October 8, 2019 (the "Acquisition Term Loan") which had $1,340.0 million in aggregate principal balance outstanding at June 30, 2015 (together, the "Amended Term Loan Agreement"). (b) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2014 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"). (c) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2014 Form 10-K for certain details regarding Products Corporation's 5¾% Senior Notes that mature on February 15, 2021. (d) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2014 Form 10-K for certain details regarding the euro-denominated loan payable to the Spanish government that matures on June 30, 2025. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Values of Financial Assets and Liabilities | As of June 30, 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) $ 0.7 $ — $ 0.7 $ — Total assets at fair value $ 0.7 $ — $ 0.7 $ — Liabilities: Derivatives: FX Contracts (a) $ 0.2 $ — $ 0.2 $ — 2013 Interest Rate Swap (b) 7.1 — 7.1 — Total liabilities at fair value $ 7.3 $ — $ 7.3 $ — 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 10, “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 10, “Financial Instruments.” |
Financial Liabilities Not Measured At Fair Value But For Which Fair Value Disclosure Is Required | As of June 30, 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 $ — $ 1,828.9 $ — $ 1,828.9 $ 1,836.5 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 (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Financial Instruments in Consolidated Balance Sheet | 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 $ 2.1 Other assets — — Other long-term liabilities 2.9 1.4 Derivatives not designated as hedging instruments: FX Contracts (ii) Prepaid expenses and other $ 0.7 $ 0.2 Accrued Expenses $ 0.2 $ — (i) The fair values of the 2013 Interest Rate Swap at June 30, 2015 and December 31, 2014 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at June 30, 2015 and December 31, 2014 , respectively. (ii) The fair values of the FX Contracts at June 30, 2015 and December 31, 2014 were measured based on observable market transactions of spot and forward rates at June 30, 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, 2015 and 2014 : Amount of Gain (Loss) Recognized in Other Comprehensive Income Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Derivatives designated as hedging instruments: 2013 Interest Rate Swap, net of tax (a) $ (0.1 ) $ (1.9 ) $ (2.0 ) $ (2.9 ) (a) Net of tax benefit of nil and $1.2 million for the three months ended June 30, 2015 and 2014, respectively, and $1.2 million and $1.8 million for the six month ended June 30, 2015 and 2014, respectively. Income Statement Classification Amount of Gain (Loss) Recognized in Net Income Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Derivatives designated as hedging instruments: 2013 Interest Rate Swap Interest Expense $ (0.5 ) $ — $ (0.5 ) $ — Derivatives not designated as hedging instruments: FX Contracts Foreign currency gain (loss), net $ 0.4 $ (1.2 ) $ 0.9 $ (1.3 ) |
PENSION AND POST-RETIREMENT B35
PENSION AND POST-RETIREMENT BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Components of Net Periodic Benefit (Income) Cost | 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 2015 and 2014 are as follows: Other Three Months Ended June 30, 2015 2014 2015 2014 Net periodic benefit (income) costs: Service cost $ 0.2 $ 0.2 $ — $ — Interest cost 7.1 7.6 0.1 0.1 Expected return on plan assets (10.2 ) (10.3 ) — — Amortization of actuarial loss 2.1 1.0 0.1 0.1 (0.8 ) (1.5 ) 0.2 0.2 Portion allocated to Revlon Holdings (0.1 ) — — — $ (0.9 ) $ (1.5 ) $ 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 2015 and 2014 are as follows: Other Six Months Ended June 30, 2015 2014 2015 2014 Net periodic benefit (income) costs: Service cost $ 0.4 $ 0.4 $ — $ — Interest cost 14.3 15.1 0.2 0.3 Expected return on plan assets (20.3 ) (20.7 ) — — Amortization of actuarial loss 4.1 2.2 0.1 0.1 (1.5 ) (3.0 ) 0.3 0.4 Portion allocated to Revlon Holdings (0.1 ) — — — $ (1.6 ) $ (3.0 ) $ 0.3 $ 0.4 |
Classification of Net Periodic Benefit (Income) Costs | Net periodic benefit (income) costs are reflected in the Company's Consolidated Financial Statements as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net periodic benefit (income) costs: Cost of sales $ (1.0 ) $ (1.1 ) $ (2.0 ) $ (1.8 ) Selling, general and administrative expense 0.3 (0.1 ) 0.7 (0.3 ) Inventories — (0.1 ) — (0.5 ) $ (0.7 ) $ (1.3 ) $ (1.3 ) $ (2.6 ) |
ACCUMULATED OTHER COMPREHENSI36
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss as of June 30, 2015 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, 2015 $ (5.4 ) $ (235.3 ) $ (2.2 ) $ (0.3 ) $ (243.2 ) Currency translation adjustment, net of tax benefit of $2.8 million $ (12.6 ) (12.6 ) Amortization of pension related costs, net of tax benefit of $0.7 million (a) $ 3.5 3.5 Revaluation of derivative financial instrument, net of tax benefit of $1.2 million (b) $ (2.0 ) (2.0 ) Other comprehensive loss (12.6 ) 3.5 (2.0 ) — (11.1 ) Balance at June 30, 2015 $ (18.0 ) $ (231.8 ) $ (4.2 ) $ (0.3 ) $ (254.3 ) (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 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, 2015 , the 2013 Interest Rate Swap was deemed effective and therefore, the changes in fair value related to the 2013 Interest Rate Swap are recorded in other comprehensive loss. See Note 10, "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 qualify for hedge accounting. 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 benefit) (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 ) (a) Reclassified to interest expense. 2013 Interest Rate Swap Beginning accumulated losses at December 31, 2014 (2.2 ) Reclassifications into earnings (net of $0.2 million tax benefit) (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. |
SEGMENT DATA AND RELATED INFO37
SEGMENT DATA AND RELATED INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [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 operating segment for the three and six months ended June 30, 2015 and 2014 . In the table below, certain prior period amounts have been reclassified to conform to the presentation for 2015. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Segment Net Sales: Consumer $ 354.7 $ 367.3 $ 679.0 $ 706.8 Professional 123.4 130.6 237.6 260.9 Other $ 4.3 $ — $ 4.3 $ — Total $ 482.4 $ 497.9 $ 920.9 $ 967.7 Segment Profit: Consumer (a) $ 83.8 $ 80.3 $ 146.0 $ 149.8 Professional 24.3 31.4 53.5 63.3 Other $ (0.5 ) $ — $ (0.5 ) $ — Total $ 107.6 $ 111.7 $ 199.0 $ 213.1 Reconciliation: Segment Profit $ 107.6 $ 111.7 $ 199.0 $ 213.1 Less: Unallocated corporate expenses (a) 15.8 15.7 30.5 27.1 Depreciation and amortization 25.2 26.0 50.8 50.8 Non-cash stock compensation expense 1.2 0.3 2.8 0.5 Non-recurring items: Restructuring and related charges (3.0 ) 4.1 (2.3 ) 17.7 Acquisition and integration costs 4.7 0.7 5.9 4.5 Inventory purchase accounting adjustment, cost of sales 0.6 — 0.6 2.6 Operating Income 63.1 64.9 110.7 109.9 Less: Interest Expense 20.5 21.0 40.5 43.3 Amortization of debt issuance costs 1.4 1.4 2.8 2.8 Loss on early extinguishment of debt — 0.1 — 2.0 Foreign currency losses (gains), net (7.9 ) 7.2 8.0 8.6 Miscellaneous, net 0.2 — 0.2 0.1 Income from continuing operations before income taxes $ 48.9 $ 35.2 $ 59.2 $ 53.1 (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, $2.1 million and $4.1 million in pension-related costs were reclassified from the measurement of Consumer segment profit and included as a component of unallocated corporate expenses for the thr |
Schedule of Net Sales and Long-Lived Assets by Geographic Area | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Geographic area: Net sales: United States $ 267.0 55% $ 255.2 51% $ 511.4 56% $ 505.4 52% Outside of the United States 215.4 45% 242.7 49% 409.5 44% 462.3 48% $ 482.4 $ 497.9 $ 920.9 $ 967.7 June 30, 2015 December 31, 2014 Long-lived assets, net: United States $ 838.4 75% $ 845.5 76% Outside of the United States 280.6 25% 271.7 24% $ 1,119.0 $ 1,117.2 |
Schedule of Net Sales by Classes of Similar Products | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Classes of similar products: Net sales: Color cosmetics $ 266.0 55% $ 265.6 53% $ 505.5 55% $ 520.9 54% Hair care 130.0 27% 142.0 29% 256.9 28% 272.7 28% Beauty care and fragrance 86.4 18% 90.3 18% 158.5 17% 174.1 18% $ 482.4 $ 497.9 $ 920.9 $ 967.7 |
GUARANTOR FINANCIAL INFORMATI38
GUARANTOR FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets As of June 30, 2015 Products Corporation Guarantor Subsidiaries (a) Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 66.4 $ 86.8 $ 45.8 $ — $ 199.0 Trade receivables, less allowances for doubtful accounts 90.5 46.2 119.7 — 256.4 Inventories 91.8 40.8 64.0 — 196.6 Deferred income taxes - current 47.5 — 11.7 — 59.2 Prepaid expenses and other 133.1 7.2 33.5 — 173.8 Intercompany receivables 987.2 647.3 117.2 (1,751.7 ) — Investment in subsidiaries 583.5 (147.7 ) — (435.8 ) — Property, plant and equipment, net 113.0 27.7 64.3 — 205.0 Deferred income taxes - noncurrent 1.9 — 14.0 — 15.9 Goodwill 185.8 29.5 263.0 — 478.3 Intangible assets, net 53.9 160.3 110.8 — 325.0 Other assets 78.9 6.8 24.0 — 109.7 Total assets $ 2,433.5 $ 904.9 $ 868.0 $ (2,187.5 ) $ 2,018.9 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 8.5 $ — $ 8.5 Current portion of long-term debt 6.9 — — — 6.9 Accounts payable 79.3 30.0 79.7 — 189.0 Accrued expenses and other 150.6 19.8 76.0 — 246.4 Intercompany payables 676.4 707.6 367.7 (1,751.7 ) — Long-term debt 1,829.0 — 0.6 — 1,829.6 Other long-term liabilities 228.4 1.3 45.9 — 275.6 Total liabilities 2,970.6 758.7 578.4 (1,751.7 ) 2,556.0 Stockholder’s deficiency (537.1 ) 146.2 289.6 (435.8 ) (537.1 ) Total liabilities and stockholder’s deficiency $ 2,433.5 $ 904.9 $ 868.0 $ (2,187.5 ) $ 2,018.9 (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 Operations and Comprehensive Income (Loss) For the Three Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries (a) 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, net: 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) losses, net (1.4 ) — (6.5 ) — (7.9 ) Miscellaneous, net 11.4 (2.9 ) (8.3 ) — 0.2 Other expenses, 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 Loss from discontinued operations, net of taxes — — — — — Equity in income (loss) of subsidiaries 35.9 22.6 — (58.5 ) — Net income (loss) $ 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 (loss) $ 30.0 $ 25.7 $ 32.8 $ (58.5 ) $ 30.0 (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 Operations and Comprehensive Income (Loss) For the Three Months Ended June 30, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 256.1 $ 88.5 $ 204.9 $ (51.6 ) $ 497.9 Cost of sales 115.7 33.7 69.4 (51.6 ) 167.2 Gross profit 140.4 54.8 135.5 — 330.7 Selling, general and administrative expenses 121.6 33.0 106.7 — 261.3 Acquisition and integration costs 0.7 — — — 0.7 Restructuring charges and other, net — 1.3 2.5 — 3.8 Operating income 18.1 20.5 26.3 — 64.9 Other expenses, net: Intercompany interest, net (2.1 ) (0.2 ) 2.3 — — Interest expense 20.6 0.1 0.3 — 21.0 Amortization of debt issuance costs 1.4 — — — 1.4 Loss on early extinguishment of debt, net 0.1 — — — 0.1 Foreign currency (gains) losses, net (6.1 ) 0.1 13.2 — 7.2 Miscellaneous, net (11.9 ) (1.2 ) 13.1 — — Other expenses, net 2.0 (1.2 ) 28.9 — 29.7 Income (loss) from continuing operations before income taxes 16.1 21.7 (2.6 ) — 35.2 Provision for (benefit from) income taxes 40.2 (26.4 ) 5.5 — 19.3 (Loss) income from continuing operations (24.1 ) 48.1 (8.1 ) — 15.9 Loss from discontinued operations, net of taxes 0.2 — 3.5 — 3.7 Equity in income (loss) of subsidiaries 43.5 (12.1 ) — (31.4 ) — Net income (loss) $ 19.6 $ 36.0 $ (4.6 ) $ (31.4 ) $ 19.6 Other comprehensive (loss) income (1.2 ) (1.1 ) (1.6 ) 2.7 (1.2 ) Total comprehensive income (loss) $ 18.4 $ 34.9 $ (6.2 ) $ (28.7 ) $ 18.4 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) For the Six Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries (a) 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, net: 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, 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 income (loss) of subsidiaries 25.7 12.4 — (38.1 ) — Net income (loss) $ 28.1 $ 32.4 $ 5.7 $ (38.1 ) $ 28.1 Other comprehensive (loss) income (11.1 ) (2.8 ) (13.3 ) 16.1 (11.1 ) Total comprehensive income (loss) $ 17.0 $ 29.6 $ (7.6 ) $ (22.0 ) $ 17.0 (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 Operations and Comprehensive Income (Loss) For the Six Months Ended June 30, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 495.5 $ 181.5 $ 388.1 $ (97.4 ) $ 967.7 Cost of sales 220.7 72.8 134.6 (97.4 ) 330.7 Gross profit 274.8 108.7 253.5 — 637.0 Selling, general and administrative expenses 234.4 63.3 207.6 — 505.3 Acquisition and integration costs 4.5 — — — 4.5 Restructuring charges and other, net 2.3 3.1 11.9 — 17.3 Operating income 33.6 42.3 34.0 — 109.9 Other expenses, net: Intercompany interest, net (4.2 ) (0.3 ) 4.5 — — Interest expense 42.8 0.1 0.4 — 43.3 Amortization of debt issuance costs 2.8 — — — 2.8 Loss on early extinguishment of debt, net 2.0 — — — 2.0 Foreign currency (gains) losses, net (6.6 ) 0.2 15.0 — 8.6 Miscellaneous, net (29.3 ) (0.9 ) 30.3 — 0.1 Other expenses, net 7.5 (0.9 ) 50.2 — 56.8 Income (loss) from continuing operations before income taxes 26.1 43.2 (16.2 ) — 53.1 Provision for (benefit from) income taxes 53.5 (27.9 ) 1.4 — 27.0 (Loss) income from continuing operations (27.4 ) 71.1 (17.6 ) — 26.1 Income from discontinued operations, net of taxes 0.2 — 0.3 — 0.5 Equity in income (loss) of subsidiaries 53.8 (15.2 ) — (38.6 ) — Net income (loss) $ 26.6 $ 55.9 $ (17.3 ) $ (38.6 ) $ 26.6 Other comprehensive income (loss) 0.6 (0.2 ) (1.2 ) 1.4 0.6 Total comprehensive income (loss) $ 27.2 $ 55.7 $ (18.5 ) $ (37.2 ) $ 27.2 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2015 Products Corporation Guarantor Subsidiaries (a) 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 (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 For the Six Months Ended June 30, 2014 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash (used in) provided by operating activities $ (22.8 ) $ 27.7 $ (11.3 ) $ — $ (6.4 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (9.2 ) (0.2 ) (3.9 ) — (13.3 ) Proceeds from the sale of certain assets — — 0.2 — 0.2 Net cash used in investing activities (9.2 ) (0.2 ) (3.7 ) — (13.1 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase in short-term borrowings and overdraft 2.4 1.3 3.7 — 7.4 Repayment under the Amended and Restated Senior Subordinated Term Loan (58.4 ) — — — (58.4 ) Repayments under the Acquisition Term Loan (3.5 ) — — — (3.5 ) Payment of financing costs (1.8 ) — — — (1.8 ) Other financing activities (1.2 ) — (0.2 ) — (1.4 ) Net cash (used in) provided by financing activities (62.5 ) 1.3 3.5 — (57.7 ) Effect of exchange rate changes on cash and cash equivalents — — (9.2 ) — (9.2 ) Net (decrease) increase in cash and cash equivalents (94.5 ) 28.8 (20.7 ) — (86.4 ) 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 $ 46.8 $ 43.3 $ 67.6 $ — $ 157.7 (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. |
DESCRIPTION OF BUSINESS AND S39
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Significant Accounting Policies (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | Feb. 13, 2013 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of operating segment (segment) | segment | 3 | ||||
Foreign currency losses from re-measurement | $ 6 | $ 8.8 | $ 7.4 | ||
Revlon Venezuela | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Foreign Currency Exchange Rate, Translation | 193 | 53 | 53 | 6.3 | |
Foreign currency losses from re-measurement | $ 1.9 |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Details) - CBBeauty Group - USD ($) $ in Millions | Apr. 21, 2015 | Apr. 21, 2019 |
Business Acquisition [Line Items] | ||
Business Acquisition, Effective Date of Acquisition | Apr. 21, 2015 | |
Payments to Acquire Businesses, Gross | $ 49.3 | |
Business Combination, Percentage Of Consideration Paid | 70.00% | |
Payment To Acquire Business, Initial Payment | $ 34.6 | |
Business Combination, Period of Remaining Payment | 4 years | |
Scenario, Forecast | ||
Business Acquisition [Line Items] | ||
Other Payments to Acquire Businesses | $ 14.7 |
- Schedule of Net Assets Acquir
- Schedule of Net Assets Acquired (Details) - USD ($) $ in Millions | Apr. 21, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 478.3 | $ 464.1 | |
Customer relationships | |||
Business Acquisition [Line Items] | |||
Weighted average remaining useful life | 16 years | 17 years | |
Distribution rights | |||
Business Acquisition [Line Items] | |||
Weighted average remaining useful life | 5 years | ||
CBBeauty Group | |||
Business Acquisition [Line Items] | |||
Total Net Assets Acquired | $ 3.9 | ||
Purchased Intangible Assets | 11.9 | ||
Goodwill | 18.8 | ||
Total consideration | 34.6 | ||
CBBeauty Group | Customer relationships | |||
Business Acquisition [Line Items] | |||
Purchased Intangible Assets | $ 7.4 | ||
Weighted average remaining useful life | 15 years | ||
CBBeauty Group | Distribution rights | |||
Business Acquisition [Line Items] | |||
Purchased Intangible Assets | $ 2.8 | ||
Weighted average remaining useful life | 9 years | ||
CBBeauty Group | Trade Names | |||
Business Acquisition [Line Items] | |||
Purchased Intangible Assets | $ 1.7 | ||
Weighted average remaining useful life | 5 years |
RESTRUCTURING CHARGES - Restruc
RESTRUCTURING CHARGES - Restructuring and Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred | $ (3.6) | $ 3.8 | $ (3.1) | $ 17.3 | |
Integration Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred | (2.4) | $ 15.7 | $ 20.1 | ||
Cumulative charges incurred through June 30, 2015 | 17.7 | 17.7 | |||
Total expected charges | 22 | 22 | |||
Integration Program | Total Restructuring Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred | (2.9) | 18.9 | |||
Cumulative charges incurred through June 30, 2015 | 16 | 16 | |||
Total expected charges | 18 | 18 | |||
Integration Program | Inventory Write-offs and Other Manufacturing-Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred | 0.2 | 0.6 | |||
Cumulative charges incurred through June 30, 2015 | 0.8 | 0.8 | |||
Total expected charges | 2.5 | 2.5 | |||
Integration Program | Other Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred | 0.3 | 0.6 | |||
Cumulative charges incurred through June 30, 2015 | 0.9 | 0.9 | |||
Total expected charges | 1.5 | 1.5 | |||
December 2013 Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cumulative charges incurred through June 30, 2015 | 18.9 | 18.9 | |||
Total expected charges | 18.9 | 18.9 | |||
December 2013 Program | Total Restructuring Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cumulative charges incurred through June 30, 2015 | 8.9 | 8.9 | |||
Total expected charges | 8.9 | 8.9 | |||
December 2013 Program | Allowances and Returns | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cumulative charges incurred through June 30, 2015 | 6.5 | 6.5 | |||
Total expected charges | 6.5 | 6.5 | |||
December 2013 Program | Inventory Write-offs and Other Manufacturing-Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cumulative charges incurred through June 30, 2015 | 3.1 | 3.1 | |||
Total expected charges | 3.1 | 3.1 | |||
December 2013 Program | Other Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cumulative charges incurred through June 30, 2015 | 0.4 | 0.4 | |||
Total expected charges | 0.4 | 0.4 | |||
Employee Severance and Other Personnel Benefits | Integration Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred | (2.9) | 17.3 | |||
Cumulative charges incurred through June 30, 2015 | 14.4 | 14.4 | |||
Total expected charges | 15 | 15 | |||
Employee Severance and Other Personnel Benefits | December 2013 Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cumulative charges incurred through June 30, 2015 | 8.6 | 8.6 | |||
Total expected charges | 8.6 | 8.6 | |||
Other | Integration Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges incurred | 0 | $ 1.6 | |||
Cumulative charges incurred through June 30, 2015 | 1.6 | 1.6 | |||
Total expected charges | 3 | 3 | |||
Other | December 2013 Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cumulative charges incurred through June 30, 2015 | 0.3 | 0.3 | |||
Total expected charges | $ 0.3 | $ 0.3 |
RESTRUCTURING CHARGES - Related
RESTRUCTURING CHARGES - Related Liability Balance and Activity for Restructuring Programs (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Reserve [Roll Forward] | |||
Balance Beginning of Year | $ 14 | ||
(Income) Expense, Net | (3.1) | ||
Foreign Currency Translation | (0.1) | ||
Cash utilized, net | (5.1) | ||
Non-cash utilized, net | 0 | ||
Balance End of Year | 5.7 | $ 14 | |
Integration Program | |||
Restructuring Reserve [Roll Forward] | |||
Cash utilized, net | (3.9) | (9.6) | |
Integration Program | Employee Severance and Other Personnel Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Balance Beginning of Year | 9.6 | ||
(Income) Expense, Net | (2.9) | ||
Foreign Currency Translation | (0.1) | ||
Cash utilized, net | (3.4) | ||
Non-cash utilized, net | 0 | ||
Balance End of Year | 3.2 | 9.6 | |
Integration Program | Other | |||
Restructuring Reserve [Roll Forward] | |||
Balance Beginning of Year | 0.1 | ||
(Income) Expense, Net | 0 | ||
Foreign Currency Translation | 0 | ||
Cash utilized, net | (0.1) | ||
Non-cash utilized, net | 0 | ||
Balance End of Year | 0 | 0.1 | |
December 2013 Program | |||
Restructuring Reserve [Roll Forward] | |||
Cash utilized, net | (15.5) | $ (0.1) | |
December 2013 Program | Employee Severance and Other Personnel Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Balance Beginning of Year | 1.2 | ||
(Income) Expense, Net | 0 | ||
Foreign Currency Translation | 0 | ||
Cash utilized, net | 0 | ||
Non-cash utilized, net | 0 | ||
Balance End of Year | 1.2 | 1.2 | |
December 2013 Program | Other | |||
Restructuring Reserve [Roll Forward] | |||
Balance Beginning of Year | 0 | ||
(Income) Expense, Net | 0 | ||
Foreign Currency Translation | 0 | ||
Cash utilized, net | 0 | ||
Non-cash utilized, net | 0 | ||
Balance End of Year | 0 | 0 | |
Other Immaterial Actions | Employee Severance and Other Personnel Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Balance Beginning of Year | 3.1 | ||
(Income) Expense, Net | (0.2) | ||
Foreign Currency Translation | 0 | ||
Cash utilized, net | (1.6) | ||
Non-cash utilized, net | 0 | ||
Balance End of Year | 1.3 | 3.1 | |
Other Immaterial Actions | Other | |||
Restructuring Reserve [Roll Forward] | |||
Balance Beginning of Year | 0 | ||
(Income) Expense, Net | 0 | ||
Foreign Currency Translation | 0 | ||
Cash utilized, net | 0 | ||
Non-cash utilized, net | 0 | ||
Balance End of Year | $ 0 | $ 0 |
RESTRUCTURING CHARGES - Additio
RESTRUCTURING CHARGES - Additional Information (Details) $ in Millions | Dec. 30, 2013job_position | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($)job_position | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges and other, net | $ (3.6) | $ 3.8 | $ (3.1) | $ 17.3 | ||||
Payments for restructuring | 5.1 | |||||||
Restructuring reserve within accrued expenses and other | 5.7 | 5.7 | $ 13.7 | |||||
Accrued Expenses and Other | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring reserve within accrued expenses and other | 5.7 | 5.7 | 13.7 | |||||
Other Long-term Liabilities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring reserve within other long-term liabilities | 0.3 | |||||||
Integration Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Total expected net charges | 22 | 22 | ||||||
Restructuring charges and other, net | (2.4) | $ 15.7 | 20.1 | |||||
Total expected restructuring cash payments | 21 | 21 | ||||||
Payments for restructuring | 3.9 | 9.6 | ||||||
December 2013 Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Total expected net charges | 18.9 | 18.9 | ||||||
Total expected restructuring cash payments | $ 17 | 17 | ||||||
Payments for restructuring | 15.5 | $ 0.1 | ||||||
Number of positions eliminated (job positions) | job_position | 1,100 | |||||||
Number of positions eliminated related to employees retained indirectly through a third party (job positions) | job_position | 940 | |||||||
Scenario, Forecast | Integration Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Payments for restructuring | $ 7.5 | |||||||
Scenario, Forecast | December 2013 Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Payments for restructuring | $ 1.4 | |||||||
Consumer Segment | Integration Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges and other, net | (3.8) | $ 6.4 | ||||||
Professional | Integration Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges and other, net | 1.4 | $ 9.3 | ||||||
The Colomer Group Participations, S.L. | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Integration related costs | 1.2 | 18.4 | ||||||
Expected Acquisition and integration expected related capital expenditures | 6 | |||||||
Acquisition and integration related capital expenditures | 0.7 | $ 4.4 | ||||||
Maximum | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Capital expenditure and related non-restructuring costs | $ 50 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Income Statement Disclosures [Abstract] | |||||
Income (loss) from discontinued operations, net of taxes | $ 0 | $ 3.7 | $ (0.1) | $ 0.5 | |
Operations in China | |||||
Income Statement Disclosures [Abstract] | |||||
Net sales | 0 | 2.2 | 0 | 2.6 | |
Income (loss) from discontinued operations, before taxes | 0 | 3.5 | (0.1) | 0.7 | |
Provision for income taxes | 0 | (0.2) | 0 | 0.2 | |
Income (loss) from discontinued operations, net of taxes | 0 | $ 3.7 | (0.1) | $ 0.5 | |
Balance Sheet Disclosures [Abstract] | |||||
Cash and cash equivalents | 2.9 | 2.9 | $ 2.4 | ||
Trade receivables, net | 0.2 | 0.2 | 0.2 | ||
Total current assets | 3.1 | 3.1 | 2.6 | ||
Total assets | 3.1 | 3.1 | 2.6 | ||
Accounts payable | 0.7 | 0.7 | 0.2 | ||
Accrued expenses and other | 3.8 | 3.8 | 3.9 | ||
Total current liabilities | 4.5 | 4.5 | 4.1 | ||
Total liabilities | $ 4.5 | $ 4.5 | $ 4.1 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 63.3 | $ 47.2 |
Work-in-process | 11 | 9 |
Finished goods | 122.3 | 100.4 |
Inventories | $ 196.6 | $ 156.6 |
GOODWILL AND INTANGIBLE ASSET47
GOODWILL AND INTANGIBLE ASSETS, NET - Changes in Goodwill by Segment (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 464.1 |
Goodwill acquired | 18.8 |
Foreign currency translation adjustment | (4.6) |
Ending Balance | 478.3 |
Consumer | Operating Segments | |
Goodwill [Roll Forward] | |
Beginning Balance | 217.9 |
Goodwill acquired | 0 |
Foreign currency translation adjustment | 0 |
Ending Balance | 217.9 |
Professional | Operating Segments | |
Goodwill [Roll Forward] | |
Beginning Balance | 246.2 |
Goodwill acquired | 0 |
Foreign currency translation adjustment | (4.6) |
Ending Balance | 241.6 |
Other | Operating Segments | |
Goodwill [Roll Forward] | |
Beginning Balance | 0 |
Goodwill acquired | 18.8 |
Foreign currency translation adjustment | 0 |
Ending Balance | $ 18.8 |
GOODWILL AND INTANGIBLE ASSET48
GOODWILL AND INTANGIBLE ASSETS, NET - Summary of Intangible Assets (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 277.7 | $ 265.8 |
Finite-Lived Intangible Assets, Accumulated Amortization | (49.1) | (39.3) |
Finite-Lived Intangible Assets, Net Carrying Amount | 228.6 | 226.5 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 96.4 | 101.3 |
Intangible Assets, Gross Carrying Amount (Excluding Goodwill) | 374.1 | 367.1 |
Intangible Assets, Net Carrying Amount | 325 | 327.8 |
Trade Names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 96.4 | 101.3 |
Trademarks and Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | 140.2 | 140.5 |
Finite-Lived Intangible Assets, Accumulated Amortization | (29) | (23.5) |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 111.2 | $ 117 |
Finite-lived Intangible Assets, Weighted Average Useful Life (in Years) | 14 years | 14 years |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 118.4 | $ 109.1 |
Finite-Lived Intangible Assets, Accumulated Amortization | (16.9) | (13.4) |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 101.5 | $ 95.7 |
Finite-lived Intangible Assets, Weighted Average Useful Life (in Years) | 16 years | 17 years |
Patents and Internally-Developed IP | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 16.3 | $ 16.2 |
Finite-Lived Intangible Assets, Accumulated Amortization | (3.1) | (2.4) |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 13.2 | $ 13.8 |
Finite-lived Intangible Assets, Weighted Average Useful Life (in Years) | 10 years | 10 years |
Distribution rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 2.8 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (0.1) | |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 2.7 | |
Finite-lived Intangible Assets, Weighted Average Useful Life (in Years) | 5 years |
Accrued Expenses and Other - Co
Accrued Expenses and Other - Components of Accrued Expenses and Other (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Sales returns and allowances | $ 58.6 | $ 70.6 |
Compensation and related benefits | 53.9 | 66.8 |
Advertising and promotional costs | 40.6 | 44.9 |
Taxes | 25.8 | 23.3 |
Interest | 12.4 | 11 |
Restructuring reserve | 5.7 | 13.7 |
Other | 49.4 | 43 |
Accrued expenses and other | $ 246.4 | $ 273.3 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2015 | Jun. 30, 2015 | Mar. 12, 2015 | Dec. 31, 2014 | Feb. 26, 2014 | Oct. 09, 2013 | |
Debt Instrument [Line Items] | ||||||
Total long-term debt, net of discounts | $ 1,836.5 | $ 1,863.9 | ||||
Less current portion | (6.9) | (31.5) | ||||
Long-term debt | 1,829.6 | 1,832.4 | ||||
Amended Term Loan Facility | ||||||
Long-term Debt, Other Disclosures [Abstract] | ||||||
Repayments of Debt | $ 24.6 | |||||
Aggregate principal amount outstanding | 1,340 | |||||
Acquisition Term Loan | ||||||
Long-term Debt, Other Disclosures [Abstract] | ||||||
Repayments of Debt | 12.5 | |||||
Aggregate principal amount outstanding | 677.1 | $ 700 | ||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 1.7 | 1.8 | ||||
2011 Term Loan | ||||||
Long-term Debt, Other Disclosures [Abstract] | ||||||
Repayments of Debt | $ 12.1 | |||||
Aggregate principal amount outstanding | 662.9 | $ 662.9 | $ 675 | |||
Amended Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility | 0 | 0 | ||||
Long-term Debt, Other Disclosures [Abstract] | ||||||
Maximum borrowings available under credit facility | 175 | |||||
5 3/4% Senior Notes Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Senior Secured Notes, net of discounts | $ 500 | $ 500 | ||||
Long-term Debt, Other Disclosures [Abstract] | ||||||
Stated interest rate (percent) | 5.75% | 5.75% | ||||
Spanish Government Loan Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Other Long-term Debt | $ 0.6 | $ 0.7 | ||||
Amended Term Loan Facility | Acquisition Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Other Long-term Debt | 675.8 | 691.6 | ||||
Amended Term Loan Facility | 2011 Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Other Long-term Debt | $ 660.1 | $ 671.6 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2015 | Jun. 30, 2015 | Mar. 12, 2015 | Dec. 31, 2014 | Feb. 26, 2014 | Oct. 09, 2013 | |
Debt Instrument [Line Items] | ||||||
Current portion of long-term debt | $ 6.9 | $ 31.5 | ||||
Standby and trade letters of credit for various corporate purposes | 8.8 | 9 | ||||
Acquisition Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 1.7 | 1.8 | ||||
Aggregate principal amount outstanding | 677.1 | $ 700 | ||||
Repayments of Debt | 12.5 | |||||
Amended Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings available under credit facility | 175 | |||||
Standby and trade letters of credit for various corporate purposes | 8.8 | |||||
Revolving credit facility | 0 | 0 | ||||
Remaining borrowing capacity | 166.2 | |||||
2011 Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount outstanding | 662.9 | $ 662.9 | $ 675 | |||
Repayments of Debt | 12.1 | |||||
Amended Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount outstanding | 1,340 | |||||
Repayments of Debt | $ 24.6 | |||||
Spanish Government Loan Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Other Long-term Debt | 0.6 | 0.7 | ||||
Amended Term Loan Facility | Acquisition Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Other Long-term Debt | 675.8 | 691.6 | ||||
Amended Term Loan Facility | 2011 Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Other Long-term Debt | $ 660.1 | $ 671.6 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
FX Contracts | $ 0.7 | $ 0.2 |
Total assets at fair value | 0.7 | 0.2 |
Liabilities: | ||
Interest Rate Swap, Liability, Fair Value Disclosure | 7.1 | 3.5 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0.2 | |
Total liabilities at fair value | 7.3 | 3.5 |
Level 1 | ||
Assets: | ||
FX Contracts | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Interest Rate Swap, Liability, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | |
Total liabilities at fair value | 0 | 0 |
Level 2 | ||
Assets: | ||
FX Contracts | 0.7 | 0.2 |
Total assets at fair value | 0.7 | 0.2 |
Liabilities: | ||
Interest Rate Swap, Liability, Fair Value Disclosure | 7.1 | 3.5 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0.2 | |
Total liabilities at fair value | 7.3 | 3.5 |
Level 3 | ||
Assets: | ||
FX Contracts | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Interest Rate Swap, Liability, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | |
Total liabilities at fair value | $ 0 | $ 0 |
Fair Value Measurements - Sch53
Fair Value Measurements - Schedule of Fair Values of Financial Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Liabilities: | ||
Fair Value, Long-term debt, including current portion | $ 1,828.9 | $ 1,844 |
Carrying Value, Long-term debt, including current portion | 1,836.5 | 1,863.9 |
Level 1 | ||
Liabilities: | ||
Fair Value, Long-term debt, including current portion | 0 | 0 |
Level 2 | ||
Liabilities: | ||
Fair Value, Long-term debt, including current portion | 1,828.9 | 1,844 |
Level 3 | ||
Liabilities: | ||
Fair Value, Long-term debt, including current portion | $ 0 | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Standby and trade letters of credit for various corporate purposes | $ 8.8 | $ 9 | |
Accumulated other comprehensive loss | (254.3) | (243.2) | |
Fair value of assets | 0.7 | 0.2 | |
Standby Letters Of Credit Which Support Products Corporations Self Insurance Programs | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Standby and trade letters of credit for various corporate purposes | 7.5 | 7.7 | |
Foreign exchange contracts | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Derivative, notional amount | 61.2 | 7.6 | |
Interest Rate Swap | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Derivative, notional amount | $ 400 | ||
Term of contract | 3 years | ||
Floor interest rate (percent) | 1.00% | ||
Fixed interest rate (percent) | 2.0709% | ||
Fixed interest rate on debt (percent) | 5.0709% | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (2.3) | ||
Deferred Gain - Hedging | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Accumulated other comprehensive loss | $ (4.2) | $ (4.1) | $ (2.2) |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Financial Instruments in Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Interest Rate Swap | Designated as Hedging Instrument | Prepaid expenses and other | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative asset | $ 0 | $ 0 |
Interest Rate Swap | Designated as Hedging Instrument | Other assets | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative asset | 0 | 0 |
Interest Rate Swap | Designated as Hedging Instrument | Accrued Expenses | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative liabilities | 4.2 | 2.1 |
Interest Rate Swap | Designated as Hedging Instrument | Other long-term liabilities | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative liabilities | 2.9 | 1.4 |
Foreign exchange contracts | Not Designated as Hedging Instrument | Prepaid expenses and other | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative asset | 0.7 | 0.2 |
Foreign exchange contracts | Not Designated as Hedging Instrument | Accrued Expenses | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative liabilities | $ 0.2 | $ 0 |
Financial Instruments - Effects
Financial Instruments - Effects of Derivative Financial Instruments on Income and Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
2013 Interest Rate Swap, net of tax | [1] | $ (0.1) | $ (1.9) | $ (2) | $ (2.9) |
2013 Interest Rate Swap, tax expense (benefit) | 0 | (1.2) | (1.2) | (1.8) | |
Interest Rate Swap | Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
2013 Interest Rate Swap, net of tax | (0.1) | (1.9) | (2) | (2.9) | |
Interest Rate Swap | Designated as Hedging Instrument | Interest Expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Loss on Derivative | (0.5) | 0 | (0.5) | 0 | |
Foreign exchange contracts | Not Designated as Hedging Instrument | Foreign Currency Gain (Loss) | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Foreign currency gain (loss), net | $ 0.4 | $ (1.2) | $ 0.9 | $ (1.3) | |
[1] | Net of tax benefit of nil and $1.2 million for the three months ended June 30, 2015 and 2014, respectively, and $1.2 million and $1.8 million for the six months ended June 30, 2015 and 2014, respectively. |
PENSION AND POST-RETIREMENT B57
PENSION AND POST-RETIREMENT BENEFITS - Additional Information (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total | Total |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 20 | |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Contributions by Employer | $ 2.4 | 4.8 |
Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Contributions by Employer | $ 0.3 | $ 0.4 |
PENSION AND POST-RETIREMENT B58
PENSION AND POST-RETIREMENT BENEFITS - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan Expected Net Periodic Benefit Cost In Current Fiscal Year | $ (2.4) | ||||
Net periodic benefit (income) costs: | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | $ (0.7) | $ (1.3) | (1.3) | $ (2.6) | $ (5.4) |
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Service Cost | 0.2 | 0.2 | 0.4 | 0.4 | |
Net periodic benefit (income) costs: | |||||
Defined Benefit Plan, Interest Cost | 7.1 | 7.6 | 14.3 | 15.1 | |
Defined Benefit Plan, Expected Return on Plan Assets | (10.2) | (10.3) | (20.3) | (20.7) | |
Amortization of actuarial loss | 2.1 | 1 | 4.1 | 2.2 | |
Defined Benefit Plan Net Periodic Benefit Cost Before Portion Allocated To Affiliate | (0.8) | (1.5) | (1.5) | (3) | |
Defined Benefit Plan Net Periodic Benefit Cost Portion Allocated To Affiliate | (0.1) | 0 | (0.1) | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost | (0.9) | (1.5) | (1.6) | (3) | |
Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Service Cost | 0 | 0 | 0 | 0 | |
Net periodic benefit (income) costs: | |||||
Defined Benefit Plan, Interest Cost | 0.1 | 0.1 | 0.2 | 0.3 | |
Defined Benefit Plan, Expected Return on Plan Assets | 0 | 0 | 0 | 0 | |
Amortization of actuarial loss | 0.1 | 0.1 | 0.1 | 0.1 | |
Defined Benefit Plan Net Periodic Benefit Cost Before Portion Allocated To Affiliate | 0.2 | 0.2 | 0.3 | 0.4 | |
Defined Benefit Plan Net Periodic Benefit Cost Portion Allocated To Affiliate | 0 | 0 | 0 | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost | $ 0.2 | $ 0.2 | $ 0.3 | $ 0.4 |
PENSION AND POST-RETIREMENT B59
PENSION AND POST-RETIREMENT BENEFITS - Classification of Net Periodic Pension (Income) Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | $ (0.7) | $ (1.3) | $ (1.3) | $ (2.6) | $ (5.4) |
Cost of Sales | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | (1) | (1.1) | (2) | (1.8) | |
SG&A Expenses | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | 0.3 | (0.1) | 0.7 | (0.3) | |
Inventories [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | $ 0 | $ (0.1) | $ 0 | $ (0.5) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 21.4 | $ 19.3 | $ 31 | $ 27 |
Increase Decrease In Provision For Income Taxes | $ 2.1 | $ 4 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% |
ACCUMULATED OTHER COMPREHENSI61
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | $ (243.2) | |||||
Currency translation adjustment, net of tax | [1] | $ 0.8 | $ (0.4) | (12.6) | $ 1.2 | |
Amortization of pension related costs, net of tax | [2],[3] | 1.8 | 1.1 | 3.5 | 2.3 | |
Revaluation of derivative financial instrument, net of tax | [4] | (0.1) | (1.9) | (2) | (2.9) | |
Other comprehensive income (loss) | 2.5 | (1.2) | (11.1) | [5] | 0.6 | |
Ending Balance | (254.3) | (254.3) | ||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||||||
Currency translation adjustment, tax expense (benefit) | (0.2) | (0.1) | (2.8) | (0.6) | ||
Amortization of pension related costs, tax expense (benefit) | (0.4) | 0 | (0.7) | 0 | ||
Revaluation of derivative financial instrument, tax expense (benefit) | 0 | $ (1.2) | (1.2) | $ (1.8) | ||
Foreign Currency Translation | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | (5.4) | |||||
Currency translation adjustment, net of tax | $ (12.6) | |||||
Amortization of pension related costs, net of tax | ||||||
Revaluation of derivative financial instrument, net of tax | ||||||
Other comprehensive income (loss) | $ (12.6) | |||||
Ending Balance | (18) | (18) | ||||
Actuarial (Loss) Gain on Post-retirement Benefits | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | $ (235.3) | |||||
Currency translation adjustment, net of tax | ||||||
Amortization of pension related costs, net of tax | $ 3.5 | |||||
Revaluation of derivative financial instrument, net of tax | ||||||
Other comprehensive income (loss) | $ 3.5 | |||||
Ending Balance | (231.8) | (231.8) | ||||
Deferred Gain (Loss) - Hedging | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | (4.1) | $ (2.2) | ||||
Currency translation adjustment, net of tax | ||||||
Amortization of pension related costs, net of tax | ||||||
Revaluation of derivative financial instrument, net of tax | $ (2) | |||||
Other comprehensive income (loss) | (2) | |||||
Ending Balance | (4.2) | (4.2) | ||||
Other | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning Balance | $ (0.3) | |||||
Currency translation adjustment, net of tax | ||||||
Amortization of pension related costs, net of tax | ||||||
Revaluation of derivative financial instrument, net of tax | ||||||
Other comprehensive income (loss) | $ 0 | |||||
Ending Balance | $ (0.3) | $ (0.3) | ||||
[1] | Net of tax benefit of $0.2 million and $0.1 million for the three months ended June 30, 2015 and 2014, respectively, and $2.8 million and $0.6 million for the six months ended June 30, 2015 and 2014, respectively. | |||||
[2] | Net of tax benefit of $0.4 million and nil for the three months ended June 30, 2015 and 2014, respectively, and $0.7 million and nil for the six months ended June 30, 2015 and 2014, respectively. | |||||
[3] | 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. | |||||
[4] | Net of tax benefit of nil and $1.2 million for the three months ended June 30, 2015 and 2014, respectively, and $1.2 million and $1.8 million for the six months ended June 30, 2015 and 2014, respectively. | |||||
[5] | See Note 13, “Accumulated Other Comprehensive Loss,” regarding the changes in the accumulated balances for each component of other comprehensive loss during the six months ended June 30, 2015. |
ACCUMULATED OTHER COMPREHENSI62
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification out of Accumulated Comprehensive Loss (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total | Total |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | $ (243.2) | |
Ending Balance | $ (254.3) | (254.3) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Portion Attributable to Parent [Abstract] | ||
Reclassifications into earnings - tax expense (benefit) | (0.2) | (0.2) |
Change in fair - tax expense (benefit) | (0.2) | (1.4) |
Deferred Gain (Loss) - Hedging | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | (4.1) | (2.2) |
Ending Balance | (4.2) | (4.2) |
Deferred Gain (Loss) - Hedging | Interest Rate Swap | Interest Expense | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Reclassifications into earnings, net of tax | 0.3 | 0.3 |
Change in fair value, net of tax | $ (0.4) | $ (2.3) |
SEGMENT DATA AND RELATED INFO63
SEGMENT DATA AND RELATED INFORMATION - Additional Information (Detail) | Jun. 30, 2015country |
Outside of the United States | |
Segment Reporting Information [Line Items] | |
Number of countries in which entity operates (countries) | 24 |
SEGMENT DATA AND RELATED INFO64
SEGMENT DATA AND RELATED INFORMATION - Income from continuing operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 482.4 | $ 497.9 | $ 920.9 | $ 967.7 |
Operating income | 63.1 | 64.9 | 110.7 | 109.9 |
Depreciation and amortization | 50.8 | 50.8 | ||
Interest expense | 20.5 | 21 | 40.5 | 43.3 |
Amortization of debt issuance costs | 1.4 | 1.4 | 2.8 | 2.8 |
Loss on early extinguishment of debt | 0 | 0.1 | 0 | 2 |
Foreign currency losses (gains), net | (7.9) | 7.2 | 8 | 8.6 |
Miscellaneous, net | 0.2 | 0 | 0.2 | 0.1 |
Income from continuing operations before income taxes | 48.9 | 35.2 | 59.2 | 53.1 |
Non-recurring items: | ||||
Restructuring and related charges | (3.6) | 3.8 | (3.1) | 17.3 |
Acquisition and integration costs | 4.7 | 0.7 | 5.9 | 4.5 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 482.4 | 497.9 | 920.9 | 967.7 |
Operating income | 107.6 | 111.7 | 199 | 213.1 |
Operating Segments | Consumer Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 354.7 | 367.3 | 679 | 706.8 |
Operating income | 83.8 | 80.3 | 146 | 149.8 |
Operating Segments | Professional | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 123.4 | 130.6 | 237.6 | 260.9 |
Operating income | 24.3 | 31.4 | 53.5 | 63.3 |
Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4.3 | 0 | 4.3 | 0 |
Operating income | (0.5) | 0 | (0.5) | 0 |
Corporate, Non-Segment | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated corporate expenses (a) | 15.8 | 15.7 | 30.5 | 27.1 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 25.2 | 26 | 50.8 | 50.8 |
Restricted Stock or Unit Expense | 1.2 | 0.3 | 2.8 | 0.5 |
Non-recurring items: | ||||
Restructuring and related charges | (3) | 4.1 | (2.3) | 17.7 |
Acquisition and integration costs | 4.7 | 0.7 | 5.9 | 4.5 |
Inventory purchase accounting adjustment, cost of sales | $ 0.6 | 0 | $ 0.6 | 2.6 |
Pension Plan [Member] | Corporate, Non-Segment | ||||
Non-recurring items: | ||||
Pension Expense | $ 2.1 | $ 4.1 |
SEGMENT DATA AND RELATED INFO65
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales and Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | $ 482.4 | $ 497.9 | $ 920.9 | $ 967.7 | |
Long-Lived Assets, net | 1,119 | 1,119 | $ 1,117.2 | ||
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | $ 267 | $ 255.2 | $ 511.4 | $ 505.4 | |
Percentage of net sales by geographic location (percent) | 55.00% | 51.00% | 56.00% | 52.00% | |
Long-Lived Assets, net | $ 838.4 | $ 838.4 | $ 845.5 | ||
Percentage of long lived assets, net by geographic location (percent) | 75.00% | 75.00% | 76.00% | ||
Outside of the United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net sales | $ 215.4 | $ 242.7 | $ 409.5 | $ 462.3 | |
Percentage of net sales by geographic location (percent) | 45.00% | 49.00% | 44.00% | 48.00% | |
Long-Lived Assets, net | $ 280.6 | $ 280.6 | $ 271.7 | ||
Percentage of long lived assets, net by geographic location (percent) | 25.00% | 25.00% | 24.00% |
SEGMENT DATA AND RELATED INFO66
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales by Classes of Similar Products (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 482.4 | $ 497.9 | $ 920.9 | $ 967.7 |
Color cosmetics | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 266 | $ 265.6 | $ 505.5 | $ 520.9 |
Percentage of net sales by classes of similar products (percent) | 55.00% | 53.00% | 55.00% | 54.00% |
Hair care | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 130 | $ 142 | $ 256.9 | $ 272.7 |
Percentage of net sales by classes of similar products (percent) | 27.00% | 29.00% | 28.00% | 28.00% |
Beauty care and fragrance | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 86.4 | $ 90.3 | $ 158.5 | $ 174.1 |
Percentage of net sales by classes of similar products (percent) | 18.00% | 18.00% | 17.00% | 18.00% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Reimbursement Agreements termination period by either party | 90 days | ||
Insurance program renewal period | 5 years | ||
Insurance program renewal term period | January 31, 2012 through January 31, 2017 | ||
Reimbursement Agreement | |||
Related Party Transaction [Line Items] | |||
Reimbursements from (to) related party | $ (2.3) | $ (3.8) | |
Due from Related Parties | $ 0.1 | $ 0 |
GUARANTOR FINANCIAL INFORMATI68
GUARANTOR FINANCIAL INFORMATION Condensed Balance Sheet Statement (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 199 | $ 275.3 | $ 157.7 | $ 244.1 |
Trade receivables, less allowances for doubtful accounts | 256.4 | 238.9 | ||
Inventories | 196.6 | 156.6 | ||
Deferred income taxes – current | 59.2 | 58.4 | ||
Prepaid expenses and other | 61.5 | 44.6 | ||
Property, plant and equipment, net | 205 | 212 | ||
Deferred income taxes – noncurrent | 15.9 | 34.8 | ||
Goodwill | 478.3 | 464.1 | ||
Intangible assets, net | 325 | 327.8 | ||
Other assets | 109.7 | 113.3 | ||
Total assets | 2,018.9 | 2,031.2 | ||
Short-term borrowings | 8.5 | 6.6 | ||
Current portion of long-term debt | 6.9 | 31.5 | ||
Accounts payable | 189 | 153.5 | ||
Accrued expenses and other | 246.4 | 273.3 | ||
Long-term debt | 1,829.6 | 1,832.4 | ||
Other long-term liabilities | 83.3 | 90 | ||
Stockholder’s deficiency | (537.1) | (557) | ||
Total liabilities and stockholder's deficiency | 2,018.9 | 2,031.2 | ||
Subsidiaries [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 66.4 | 104.2 | 46.8 | 141.3 |
Trade receivables, less allowances for doubtful accounts | 90.5 | 87.8 | ||
Inventories | 91.8 | 75.5 | ||
Deferred income taxes – current | 47.5 | 46.2 | ||
Prepaid expenses and other | 133.1 | 119 | ||
Intercompany receivables | 987.2 | 992.5 | ||
Investment in subsidiaries | 583.5 | 562.8 | ||
Property, plant and equipment, net | 113 | 112.4 | ||
Deferred income taxes – noncurrent | 1.9 | 22.6 | ||
Goodwill | 185.8 | 185.8 | ||
Intangible assets, net | 53.9 | 53.2 | ||
Other assets | 78.9 | 83.2 | ||
Total assets | 2,433.5 | 2,445.2 | ||
Short-term borrowings | 0 | 0 | ||
Current portion of long-term debt | 6.9 | 31.5 | ||
Accounts payable | 79.3 | 68.3 | ||
Accrued expenses and other | 150.6 | 159 | ||
Intercompany payables | 676.4 | 672.9 | ||
Long-term debt | 1,829 | 1,831.7 | ||
Other long-term liabilities | 228.4 | 238.8 | ||
Total liabilities | 2,970.6 | 3,002.2 | ||
Stockholder’s deficiency | (537.1) | (557) | ||
Total liabilities and stockholder's deficiency | 2,433.5 | 2,445.2 | ||
Guarantor Subsidiaries [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 86.8 | 88.1 | 43.3 | 14.5 |
Trade receivables, less allowances for doubtful accounts | 46.2 | 39.7 | ||
Inventories | 40.8 | 30.6 | ||
Deferred income taxes – current | 0 | 0 | ||
Prepaid expenses and other | 7.2 | 6.2 | ||
Intercompany receivables | 647.3 | 630 | ||
Investment in subsidiaries | (147.7) | (161.4) | ||
Property, plant and equipment, net | 27.7 | 28 | ||
Deferred income taxes – noncurrent | 0 | 0 | ||
Goodwill | 29.5 | 30 | ||
Intangible assets, net | 160.3 | 164.6 | ||
Other assets | 6.8 | 2.9 | ||
Total assets | 904.9 | 858.7 | ||
Short-term borrowings | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 30 | 19 | ||
Accrued expenses and other | 19.8 | 24.5 | ||
Intercompany payables | 707.6 | 703.6 | ||
Long-term debt | 0 | 0 | ||
Other long-term liabilities | 1.3 | 4.4 | ||
Total liabilities | 758.7 | 751.5 | ||
Stockholder’s deficiency | 146.2 | 107.2 | ||
Total liabilities and stockholder's deficiency | 904.9 | 858.7 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 45.8 | 83 | 67.6 | 88.3 |
Trade receivables, less allowances for doubtful accounts | 119.7 | 111.4 | ||
Inventories | 64 | 50.5 | ||
Deferred income taxes – current | 11.7 | 12.2 | ||
Prepaid expenses and other | 33.5 | 24.8 | ||
Intercompany receivables | 117.2 | 129.6 | ||
Investment in subsidiaries | 0 | 0 | ||
Property, plant and equipment, net | 64.3 | 71.6 | ||
Deferred income taxes – noncurrent | 14 | 12.2 | ||
Goodwill | 263 | 248.3 | ||
Intangible assets, net | 110.8 | 110 | ||
Other assets | 24 | 27.2 | ||
Total assets | 868 | 880.8 | ||
Short-term borrowings | 8.5 | 6.6 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 79.7 | 66.2 | ||
Accrued expenses and other | 76 | 89.8 | ||
Intercompany payables | 367.7 | 375.6 | ||
Long-term debt | 0.6 | 0.7 | ||
Other long-term liabilities | 45.9 | 47.7 | ||
Total liabilities | 578.4 | 586.6 | ||
Stockholder’s deficiency | 289.6 | 294.2 | ||
Total liabilities and stockholder's deficiency | 868 | 880.8 | ||
Consolidation, Eliminations [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Trade receivables, less allowances for doubtful accounts | 0 | 0 | ||
Inventories | 0 | 0 | ||
Deferred income taxes – current | 0 | 0 | ||
Prepaid expenses and other | 0 | 0 | ||
Intercompany receivables | (1,751.7) | (1,752.1) | ||
Investment in subsidiaries | (435.8) | (401.4) | ||
Property, plant and equipment, net | 0 | 0 | ||
Deferred income taxes – noncurrent | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | (2,187.5) | (2,153.5) | ||
Short-term borrowings | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other | 0 | 0 | ||
Intercompany payables | (1,751.7) | (1,752.1) | ||
Long-term debt | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | (1,751.7) | (1,752.1) | ||
Stockholder’s deficiency | (435.8) | (401.4) | ||
Total liabilities and stockholder's deficiency | (2,187.5) | (2,153.5) | ||
Consolidated Entities [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 199 | 275.3 | $ 157.7 | $ 244.1 |
Trade receivables, less allowances for doubtful accounts | 256.4 | 238.9 | ||
Inventories | 196.6 | 156.6 | ||
Deferred income taxes – current | 59.2 | 58.4 | ||
Prepaid expenses and other | 173.8 | 150 | ||
Intercompany receivables | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Property, plant and equipment, net | 205 | 212 | ||
Deferred income taxes – noncurrent | 15.9 | 34.8 | ||
Goodwill | 478.3 | 464.1 | ||
Intangible assets, net | 325 | 327.8 | ||
Other assets | 109.7 | 113.3 | ||
Total assets | 2,018.9 | 2,031.2 | ||
Short-term borrowings | 8.5 | 6.6 | ||
Current portion of long-term debt | 6.9 | 31.5 | ||
Accounts payable | 189 | 153.5 | ||
Accrued expenses and other | 246.4 | 273.3 | ||
Intercompany payables | 0 | 0 | ||
Long-term debt | 1,829.6 | 1,832.4 | ||
Other long-term liabilities | 275.6 | 290.9 | ||
Total liabilities | 2,556 | 2,588.2 | ||
Stockholder’s deficiency | (537.1) | (557) | ||
Total liabilities and stockholder's deficiency | $ 2,018.9 | $ 2,031.2 |
GUARANTOR FINANCIAL INFORMATI69
GUARANTOR FINANCIAL INFORMATION Statements of Income and Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Condensed Income Statements, Captions [Line Items] | |||||
Net sales | $ 482.4 | $ 497.9 | $ 920.9 | $ 967.7 | |
Cost of sales | 161.3 | 167.2 | 303.6 | 330.7 | |
Gross profit | 321.1 | 330.7 | 617.3 | 637 | |
Selling, general and administrative expenses | 256.9 | 261.3 | 503.8 | 505.3 | |
Acquisition and integration costs | 4.7 | 0.7 | 5.9 | 4.5 | |
Restructuring charges and other, net | (3.6) | 3.8 | (3.1) | 17.3 | |
Operating income | 63.1 | 64.9 | 110.7 | 109.9 | |
Interest expense | 20.5 | 21 | 40.5 | 43.3 | |
Amortization of debt issuance costs | 1.4 | 1.4 | 2.8 | 2.8 | |
Loss on early extinguishment of debt, net | 0 | 0.1 | 0 | 2 | |
Foreign currency losses (gains), net | (7.9) | 7.2 | 8 | 8.6 | |
Miscellaneous, net | 0.2 | 0 | 0.2 | 0.1 | |
Other expenses, net | 14.2 | 29.7 | 51.5 | 56.8 | |
Income from continuing operations before income taxes | 48.9 | 35.2 | 59.2 | 53.1 | |
Provision for income taxes | 21.4 | 19.3 | 31 | 27 | |
Income from continuing operations, net of taxes | 27.5 | 15.9 | 28.2 | 26.1 | |
Income (loss) from discontinued operations, net of taxes | 0 | 3.7 | (0.1) | 0.5 | |
Net income | 27.5 | 19.6 | 28.1 | 26.6 | |
Other comprehensive (loss) income | 2.5 | (1.2) | (11.1) | [1] | 0.6 |
Total comprehensive income | 30 | 18.4 | 17 | 27.2 | |
Subsidiaries [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Net sales | 268.4 | 256.1 | 511.8 | 495.5 | |
Cost of sales | 114.4 | 115.7 | 215.6 | 220.7 | |
Gross profit | 154 | 140.4 | 296.2 | 274.8 | |
Selling, general and administrative expenses | 119.3 | 121.6 | 245.8 | 234.4 | |
Acquisition and integration costs | 4.7 | 0.7 | 5.9 | 4.5 | |
Restructuring charges and other, net | (0.7) | 0 | (0.5) | 2.3 | |
Operating income | 30.7 | 18.1 | 45 | 33.6 | |
Intercompany interest, net | (2.1) | (2.1) | (4.1) | (4.2) | |
Interest expense | 20.3 | 20.6 | 40.3 | 42.8 | |
Amortization of debt issuance costs | 1.4 | 1.4 | 2.8 | 2.8 | |
Loss on early extinguishment of debt, net | 0.1 | 2 | |||
Foreign currency losses (gains), net | (1.4) | (6.1) | (1.2) | (6.6) | |
Miscellaneous, net | 11.4 | (11.9) | (6.2) | (29.3) | |
Other expenses, net | 29.6 | 2 | 31.6 | 7.5 | |
Income from continuing operations before income taxes | 1.1 | 16.1 | 13.4 | 26.1 | |
Provision for income taxes | 9.5 | 40.2 | 11 | 53.5 | |
Income from continuing operations, net of taxes | (8.4) | (24.1) | 2.4 | (27.4) | |
Income (loss) from discontinued operations, net of taxes | 0 | 0.2 | 0 | 0.2 | |
Equity in income (loss) of subsidiaries | 35.9 | 43.5 | 25.7 | 53.8 | |
Net income | 27.5 | 19.6 | 28.1 | 26.6 | |
Other comprehensive (loss) income | 2.5 | (1.2) | (11.1) | 0.6 | |
Total comprehensive income | 30 | 18.4 | 17 | 27.2 | |
Guarantor Subsidiaries [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Net sales | 85.3 | 88.5 | 166.3 | 181.5 | |
Cost of sales | 33 | 33.7 | 60.7 | 72.8 | |
Gross profit | 52.3 | 54.8 | 105.6 | 108.7 | |
Selling, general and administrative expenses | 40.2 | 33 | 68.8 | 63.3 | |
Acquisition and integration costs | 0 | 0 | 0 | 0 | |
Restructuring charges and other, net | 0.6 | 1.3 | 0.7 | 3.1 | |
Operating income | 11.5 | 20.5 | 36.1 | 42.3 | |
Intercompany interest, net | 0 | (0.2) | (0.1) | (0.3) | |
Interest expense | 0 | 0.1 | 0 | 0.1 | |
Amortization of debt issuance costs | 0 | 0 | 0 | 0 | |
Loss on early extinguishment of debt, net | 0 | 0 | |||
Foreign currency losses (gains), net | 0 | 0.1 | (0.5) | 0.2 | |
Miscellaneous, net | (2.9) | (1.2) | (1.4) | (0.9) | |
Other expenses, net | (2.9) | (1.2) | (2) | (0.9) | |
Income from continuing operations before income taxes | 14.4 | 21.7 | 38.1 | 43.2 | |
Provision for income taxes | 9.5 | (26.4) | 18.1 | (27.9) | |
Income from continuing operations, net of taxes | 4.9 | 48.1 | 20 | 71.1 | |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | |
Equity in income (loss) of subsidiaries | 22.6 | (12.1) | 12.4 | (15.2) | |
Net income | 27.5 | 36 | 32.4 | 55.9 | |
Other comprehensive (loss) income | (1.8) | (1.1) | (2.8) | (0.2) | |
Total comprehensive income | 25.7 | 34.9 | 29.6 | 55.7 | |
Non-Guarantor Subsidiaries [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Net sales | 178.6 | 204.9 | 334.8 | 388.1 | |
Cost of sales | 63.8 | 69.4 | 119.3 | 134.6 | |
Gross profit | 114.8 | 135.5 | 215.5 | 253.5 | |
Selling, general and administrative expenses | 97.4 | 106.7 | 189.2 | 207.6 | |
Acquisition and integration costs | 0 | 0 | 0 | 0 | |
Restructuring charges and other, net | (3.5) | 2.5 | (3.3) | 11.9 | |
Operating income | 20.9 | 26.3 | 29.6 | 34 | |
Intercompany interest, net | 2.1 | 2.3 | 4.2 | 4.5 | |
Interest expense | 0.2 | 0.3 | 0.2 | 0.4 | |
Amortization of debt issuance costs | 0 | 0 | 0 | 0 | |
Loss on early extinguishment of debt, net | 0 | 0 | |||
Foreign currency losses (gains), net | (6.5) | 13.2 | 9.7 | 15 | |
Miscellaneous, net | (8.3) | 13.1 | 7.8 | 30.3 | |
Other expenses, net | (12.5) | 28.9 | 21.9 | 50.2 | |
Income from continuing operations before income taxes | 33.4 | (2.6) | 7.7 | (16.2) | |
Provision for income taxes | 2.4 | 5.5 | 1.9 | 1.4 | |
Income from continuing operations, net of taxes | 31 | (8.1) | 5.8 | (17.6) | |
Income (loss) from discontinued operations, net of taxes | 0 | 3.5 | (0.1) | 0.3 | |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Net income | 31 | (4.6) | 5.7 | (17.3) | |
Other comprehensive (loss) income | 1.8 | (1.6) | (13.3) | (1.2) | |
Total comprehensive income | 32.8 | (6.2) | (7.6) | (18.5) | |
Consolidation, Eliminations [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Net sales | (49.9) | (51.6) | (92) | (97.4) | |
Cost of sales | (49.9) | (51.6) | (92) | (97.4) | |
Gross profit | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | |
Acquisition and integration costs | 0 | 0 | 0 | 0 | |
Restructuring charges and other, net | 0 | 0 | 0 | 0 | |
Operating income | 0 | 0 | 0 | 0 | |
Intercompany interest, net | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Amortization of debt issuance costs | 0 | 0 | 0 | 0 | |
Loss on early extinguishment of debt, net | 0 | 0 | |||
Foreign currency losses (gains), net | 0 | 0 | 0 | 0 | |
Miscellaneous, net | 0 | 0 | 0 | 0 | |
Other expenses, net | 0 | 0 | 0 | 0 | |
Income from continuing operations before income taxes | 0 | 0 | 0 | 0 | |
Provision for income taxes | 0 | 0 | 0 | 0 | |
Income from continuing operations, net of taxes | 0 | 0 | 0 | 0 | |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | |
Equity in income (loss) of subsidiaries | (58.5) | (31.4) | (38.1) | (38.6) | |
Net income | (58.5) | (31.4) | (38.1) | (38.6) | |
Other comprehensive (loss) income | 0 | 2.7 | 16.1 | 1.4 | |
Total comprehensive income | (58.5) | (28.7) | (22) | (37.2) | |
Consolidated Entities [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Net sales | 482.4 | 497.9 | 920.9 | 967.7 | |
Cost of sales | 161.3 | 167.2 | 303.6 | 330.7 | |
Gross profit | 321.1 | 330.7 | 617.3 | 637 | |
Selling, general and administrative expenses | 256.9 | 261.3 | 503.8 | 505.3 | |
Acquisition and integration costs | 4.7 | 0.7 | 5.9 | 4.5 | |
Restructuring charges and other, net | (3.6) | 3.8 | (3.1) | 17.3 | |
Operating income | 63.1 | 64.9 | 110.7 | 109.9 | |
Intercompany interest, net | 0 | 0 | 0 | 0 | |
Interest expense | 20.5 | 21 | 40.5 | 43.3 | |
Amortization of debt issuance costs | 1.4 | 1.4 | 2.8 | 2.8 | |
Loss on early extinguishment of debt, net | 0.1 | 2 | |||
Foreign currency losses (gains), net | (7.9) | 7.2 | 8 | 8.6 | |
Miscellaneous, net | 0.2 | 0 | 0.2 | 0.1 | |
Other expenses, net | 14.2 | 29.7 | 51.5 | 56.8 | |
Income from continuing operations before income taxes | 48.9 | 35.2 | 59.2 | 53.1 | |
Provision for income taxes | 21.4 | 19.3 | 31 | 27 | |
Income from continuing operations, net of taxes | 27.5 | 15.9 | 28.2 | 26.1 | |
Income (loss) from discontinued operations, net of taxes | 0 | 3.7 | (0.1) | 0.5 | |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Net income | 27.5 | 19.6 | 28.1 | 26.6 | |
Other comprehensive (loss) income | 2.5 | (1.2) | (11.1) | 0.6 | |
Total comprehensive income | $ 30 | $ 18.4 | $ 17 | $ 27.2 | |
[1] | See Note 13, “Accumulated Other Comprehensive Loss,” regarding the changes in the accumulated balances for each component of other comprehensive loss during the six months ended June 30, 2015. |
GUARANTOR FINANCIAL INFORMATI70
GUARANTOR FINANCIAL INFORMATION Statement of Cash Flows (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | $ 2.5 | $ (6.4) |
Capital expenditures | (17.2) | (13.3) |
Business acquisitions, net of cash acquired | (34.2) | 0 |
Proceeds from the sale of certain assets | 2 | 0.2 |
Net cash used in investing activities | (49.4) | (13.1) |
Net increase in short-term borrowings and overdraft | 6.6 | 7.4 |
Payment of financing costs | 0 | (1.8) |
Other financing activities | (2.1) | (1.4) |
Net cash used in financing activities | (23.5) | (57.7) |
Effect of exchange rate changes on cash and cash equivalents | (5.9) | (9.2) |
Net decrease in cash and cash equivalents | (76.3) | (86.4) |
Cash and cash equivalents at beginning of period | 275.3 | 244.1 |
Cash and cash equivalents at end of period | 199 | 157.7 |
Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | (1.7) | (22.8) |
Capital expenditures | (10.6) | (9.2) |
Business acquisitions, net of cash acquired | 0 | |
Proceeds from the sale of certain assets | 0.4 | 0 |
Net cash used in investing activities | (10.2) | (9.2) |
Net increase in short-term borrowings and overdraft | 4 | 2.4 |
Payment of financing costs | (1.8) | |
Other financing activities | (1.9) | (1.2) |
Net cash used in financing activities | (25.9) | (62.5) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash and cash equivalents | (37.8) | (94.5) |
Cash and cash equivalents at beginning of period | 104.2 | 141.3 |
Cash and cash equivalents at end of period | 66.4 | 46.8 |
Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | (0.3) | 27.7 |
Capital expenditures | (2.5) | (0.2) |
Business acquisitions, net of cash acquired | 0 | |
Proceeds from the sale of certain assets | 1.5 | 0 |
Net cash used in investing activities | (1) | (0.2) |
Net increase in short-term borrowings and overdraft | 0 | 1.3 |
Payment of financing costs | 0 | |
Other financing activities | 0 | 0 |
Net cash used in financing activities | 0 | 1.3 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash and cash equivalents | (1.3) | 28.8 |
Cash and cash equivalents at beginning of period | 88.1 | 14.5 |
Cash and cash equivalents at end of period | 86.8 | 43.3 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 4.5 | (11.3) |
Capital expenditures | (4.1) | (3.9) |
Business acquisitions, net of cash acquired | (34.2) | |
Proceeds from the sale of certain assets | 0.1 | 0.2 |
Net cash used in investing activities | (38.2) | (3.7) |
Net increase in short-term borrowings and overdraft | 2.6 | 3.7 |
Payment of financing costs | 0 | |
Other financing activities | (0.2) | (0.2) |
Net cash used in financing activities | 2.4 | 3.5 |
Effect of exchange rate changes on cash and cash equivalents | (5.9) | (9.2) |
Net decrease in cash and cash equivalents | (37.2) | (20.7) |
Cash and cash equivalents at beginning of period | 83 | 88.3 |
Cash and cash equivalents at end of period | 45.8 | 67.6 |
Consolidation, Eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 0 | 0 |
Capital expenditures | 0 | 0 |
Business acquisitions, net of cash acquired | 0 | |
Proceeds from the sale of certain assets | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Net increase in short-term borrowings and overdraft | 0 | 0 |
Payment of financing costs | 0 | |
Other financing activities | 0 | 0 |
Net cash used in financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Consolidated Entities [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 2.5 | (6.4) |
Capital expenditures | (17.2) | (13.3) |
Business acquisitions, net of cash acquired | (34.2) | |
Proceeds from the sale of certain assets | 2 | 0.2 |
Net cash used in investing activities | (49.4) | (13.1) |
Net increase in short-term borrowings and overdraft | 6.6 | 7.4 |
Payment of financing costs | (1.8) | |
Other financing activities | (2.1) | (1.4) |
Net cash used in financing activities | (23.5) | (57.7) |
Effect of exchange rate changes on cash and cash equivalents | (5.9) | (9.2) |
Net decrease in cash and cash equivalents | (76.3) | (86.4) |
Cash and cash equivalents at beginning of period | 275.3 | 244.1 |
Cash and cash equivalents at end of period | 199 | 157.7 |
Amended and Restated Senior Subordinated Term Loan | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | 0 | (58.4) |
Amended and Restated Senior Subordinated Term Loan | Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | (58.4) | |
Amended and Restated Senior Subordinated Term Loan | Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | 0 | |
Amended and Restated Senior Subordinated Term Loan | Non-Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | 0 | |
Amended and Restated Senior Subordinated Term Loan | Consolidation, Eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | 0 | |
Amended and Restated Senior Subordinated Term Loan | Consolidated Entities [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | (58.4) | |
Acquisition Term Loan | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | (15.9) | (3.5) |
Acquisition Term Loan | Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | (15.9) | (3.5) |
Acquisition Term Loan | Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | 0 | 0 |
Acquisition Term Loan | Non-Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | 0 | 0 |
Acquisition Term Loan | Consolidation, Eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | 0 | 0 |
Acquisition Term Loan | Consolidated Entities [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | (15.9) | (3.5) |
2011 Term Loan | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | (12.1) | $ 0 |
2011 Term Loan | Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | (12.1) | |
2011 Term Loan | Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | 0 | |
2011 Term Loan | Non-Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | 0 | |
2011 Term Loan | Consolidation, Eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | 0 | |
2011 Term Loan | Consolidated Entities [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Repayments of long term debt | $ (12.1) |