Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 33-59650 |
Entity Registrant Name | Revlon Consumer Products Corporation |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | One New York Plaza |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10004 |
City Area Code | 212- |
Local Phone Number | 527-4000 |
Entity Tax Identification Number | 13-3662953 |
Title of 12(b) Security | Class A Common Stock |
Trading Symbol | REV |
Security Exchange Name | NYSE |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 5,260 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Entity Central Index Key | 0000890547 |
Current Fiscal Year End Date | --12-31 |
Revlon, Inc. | |
Document Information [Line Items] | |
Entity File Number | 1-11178 |
Entity Registrant Name | Revlon, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | One New York Plaza |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10004 |
City Area Code | 212- |
Local Phone Number | 527-4000 |
Entity Tax Identification Number | 13-3662955 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Small Business | true |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 53,163,901 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Entity Central Index Key | 0000887921 |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 62.8 | $ 104.3 |
Trade receivables, less allowances for doubtful accounts | 326.5 | 423.4 |
Inventories | 479.8 | 448.4 |
Prepaid expenses and other assets | 169.8 | 135.3 |
Total current assets | 1,038.9 | 1,111.4 |
Property, plant and equipment, net | 383.1 | 408.6 |
Deferred income taxes | 209.3 | 175.1 |
Goodwill | 573.7 | 673.7 |
Intangible assets, Net of accumulated amortization | 456.6 | 490.7 |
Other assets | 118 | 121.1 |
Total assets | 2,779.6 | 2,980.6 |
Current liabilities: | ||
Short-term borrowings | 2.9 | 2.2 |
Current portion of long-term debt | 856.1 | 288 |
Accounts payable | 253.3 | 251.8 |
Accrued expenses and other current liabilities | 374.1 | 414.9 |
Total current liabilities | 1,486.4 | 956.9 |
Long-term debt | 2,405.5 | 2,906.2 |
Long-term pension and other post-retirement plan liabilities | 174.9 | 181.2 |
Other long-term liabilities | 148.6 | 157.5 |
Stockholders’ deficiency: | ||
Common Stock | 0.5 | 0.5 |
Additional paid-in capital | 1,074.3 | 1,071.9 |
Treasury stock, at cost: 1,675,901 and 1,625,580 shares of Class A Common Stock as of March 31, 2020 and December 31, 2019, respectively | (33.9) | (33.5) |
Accumulated deficit | (2,226.6) | (2,012.7) |
Accumulated other comprehensive loss | (250.1) | (247.4) |
Total stockholders’ deficiency | (1,435.8) | (1,221.2) |
Total liabilities and stockholders’ deficiency | 2,779.6 | 2,980.6 |
Intangible Assets (Excluding Goodwill), Accumulated Amortization And Impairment | 258.7 | 226.4 |
Revlon Consumer Products Corporation | ||
Current assets: | ||
Cash and cash equivalents | 62.8 | 104.3 |
Trade receivables, less allowances for doubtful accounts | 326.5 | 423.4 |
Inventories | 479.8 | 448.4 |
Prepaid expenses and other assets | 165.8 | 131.4 |
Receivable from Revlon, Inc. | 163.5 | 161.2 |
Total current assets | 1,198.4 | 1,268.7 |
Property, plant and equipment, net | 383.1 | 408.6 |
Deferred income taxes | 191.7 | 158.1 |
Goodwill | 573.7 | 673.7 |
Intangible assets, Net of accumulated amortization | 456.6 | 490.7 |
Other assets | 118 | 121.1 |
Total assets | 2,921.5 | 3,120.9 |
Current liabilities: | ||
Short-term borrowings | 2.9 | 2.2 |
Current portion of long-term debt | 856.1 | 288 |
Accounts payable | 253.3 | 251.8 |
Accrued expenses and other current liabilities | 377.3 | 418.2 |
Total current liabilities | 1,489.6 | 960.2 |
Long-term debt | 2,405.5 | 2,906.2 |
Long-term pension and other post-retirement plan liabilities | 174.9 | 181.2 |
Other long-term liabilities | 153.4 | 162.7 |
Stockholders’ deficiency: | ||
Products Corporation Preferred stock, par value $1.00 per share; 1,000 shares authorized; 546 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively | 54.6 | 54.6 |
Common Stock | 0 | 0 |
Additional paid-in capital | 998.9 | 996.5 |
Accumulated deficit | (2,105.3) | (1,893.1) |
Accumulated other comprehensive loss | (250.1) | (247.4) |
Total stockholders’ deficiency | (1,301.9) | (1,089.4) |
Total liabilities and stockholders’ deficiency | $ 2,921.5 | $ 3,120.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 12.8 | $ 11.4 |
Property, plant and equipment and right-of use asset accumulated depreciation | 491.7 | 488.1 |
Finite-lived intangible assets, accumulated amortization | $ 234.2 | $ 226.4 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock, issued (in shares) | 57,667,501 | 56,470,490 |
Treasury stock (in shares) | 1,675,901 | 1,625,580 |
Revlon Consumer Products Corporation | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 12.8 | $ 11.4 |
Property, plant and equipment and right-of use asset accumulated depreciation | 491.7 | 488.1 |
Finite-lived intangible assets, accumulated amortization | $ 258.7 | $ 226.4 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 1,000 | 1,000 |
Preferred stock, issued (in shares) | 546 | 546 |
Preferred stock, outstanding (in shares) | 546 | 546 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 10,000 | 10,000 |
Common stock, issued (in shares) | 5,260 | 5,260 |
Common stock, outstanding (in shares) | 5,260 | 5,260 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Net sales | $ 453 | $ 553.2 | |
Cost of sales | 197.8 | 237.8 | |
Gross profit | 255.2 | 315.4 | |
Selling, general and administrative expenses | 289.4 | 332.6 | |
Acquisition, integration and divestiture costs | 2.1 | 0.6 | |
Restructuring charges and other, net | 24.8 | 5.5 | |
Impairment charges | 124.3 | 0 | |
Loss on divested assets | 0.8 | 0 | |
Operating (loss) income | (186.2) | (23.3) | |
Other expenses: | |||
Interest expense, net | 48.4 | 47.7 | |
Amortization of debt issuance costs | 4 | 3.2 | |
Foreign currency losses, net | 16.6 | 0.2 | |
Miscellaneous, net | (4.1) | 1.3 | |
Other expense (income), net | 64.9 | 52.4 | |
Loss from continuing operations before income taxes | (251.1) | (75.7) | |
(Benefit from) provision for income taxes | (37.2) | 0.1 | |
(Loss) income from continuing operations, net of taxes | (213.9) | (75.8) | |
(Loss) income from discontinued operations, net of taxes | 0 | 0.7 | |
Net (loss) income | (213.9) | (75.1) | |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (5.2) | (1.3) | |
Amortization of pension related costs, net of tax | [1],[2] | 2.5 | 2.2 |
Other comprehensive (loss) gain | [3] | (2.7) | 0.9 |
Total comprehensive loss | $ (216.6) | $ (74.2) | |
Basic and Diluted (loss) earnings per common share: | |||
Continuing operations (in dollars per share) | $ (4.02) | $ (1.43) | |
Discontinued operations (in dollars per share) | 0 | 0.01 | |
Net loss (in dollars per share) | $ (4.02) | $ (1.42) | |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 53,167,453 | 52,913,388 | |
Diluted (in shares) | 53,167,453 | 52,913,388 | |
Revlon Consumer Products Corporation | |||
Net sales | $ 453 | $ 553.2 | |
Cost of sales | 197.8 | 237.8 | |
Gross profit | 255.2 | 315.4 | |
Selling, general and administrative expenses | 287.4 | 330.8 | |
Acquisition, integration and divestiture costs | 2.1 | 0.6 | |
Restructuring charges and other, net | 24.8 | 5.5 | |
Impairment charges | 124.3 | 0 | |
Loss on divested assets | 0.8 | 0 | |
Operating (loss) income | (184.2) | (21.5) | |
Other expenses: | |||
Interest expense, net | 48.4 | 47.7 | |
Amortization of debt issuance costs | 4 | 3.2 | |
Foreign currency losses, net | 16.6 | 0.2 | |
Miscellaneous, net | (4.1) | 1.3 | |
Other expense (income), net | 64.9 | 52.4 | |
Loss from continuing operations before income taxes | (249.1) | (73.9) | |
(Benefit from) provision for income taxes | (36.9) | 0.3 | |
(Loss) income from continuing operations, net of taxes | (212.2) | (74.2) | |
(Loss) income from discontinued operations, net of taxes | 0 | 0.7 | |
Net (loss) income | (212.2) | (73.5) | |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (5.2) | (1.3) | |
Amortization of pension related costs, net of tax | [4],[5] | 2.5 | 2.2 |
Other comprehensive (loss) gain | [6] | (2.7) | 0.9 |
Total comprehensive loss | $ (214.9) | $ (72.6) | |
[1] | Net of tax expense of $0.3 million for each of the three months ended March 31, 2020 and 2019. | ||
[2] | This amount is included in the computation of net periodic benefit costs (income). See Note 10, "Pension and Post-Retirement Benefits," for additional information regarding net periodic benefit costs (income). | ||
[3] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during the three months ended March 31, 2020 and 2019, respectively. | ||
[4] | Net of tax expense of $0.3 million for each of the three months ended March 31, 2020 and 2019. | ||
[5] | This amount is included in the computation of net periodic benefit costs (income). See Note 10, "Pension and Post-Retirement Benefits," for additional information regarding net periodic benefit costs (income). | ||
[6] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during the three months ended March 31, 2020 and 2019, respectively. |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Amortization of pension related costs, tax expense | $ 0.3 | $ 0.3 |
Revlon Consumer Products Corporation | ||
Amortization of pension related costs, tax expense | $ 0.3 | $ 0.3 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ (1,221.2) | $ (1,056.8) | |
Treasury stock acquired, at cost | [1] | (0.4) | (1.6) |
Stock-based compensation amortization | 2.4 | 0.4 | |
Net loss | (213.9) | (75.1) | |
Other comprehensive income (loss) | [2] | (2.7) | 0.9 |
Ending balance | (1,435.8) | (1,132.2) | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 0.5 | 0.5 | |
Ending balance | 0.5 | 0.5 | |
Additional Paid-In Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 1,071.9 | 1,063.8 | |
Stock-based compensation amortization | 2.4 | 0.4 | |
Ending balance | 1,074.3 | 1,064.2 | |
Treasury Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (33.5) | (31.9) | |
Treasury stock acquired, at cost | [1] | (0.4) | (1.6) |
Ending balance | (33.9) | (33.5) | |
Accumulated Deficit | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (2,012.7) | (1,855) | |
Net loss | (213.9) | (75.1) | |
Ending balance | (2,226.6) | (1,930.1) | |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (247.4) | (234.2) | |
Other comprehensive income (loss) | [2] | (2.7) | 0.9 |
Ending balance | (250.1) | (233.3) | |
Revlon Consumer Products Corporation | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (1,089.4) | (933.1) | |
Stock-based compensation amortization | 2.4 | 0.4 | |
Net loss | (212.2) | (73.5) | |
Other comprehensive income (loss) | [3] | (2.7) | 0.9 |
Ending balance | (1,301.9) | (1,005.3) | |
Revlon Consumer Products Corporation | Preferred Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 54.6 | 54.6 | |
Ending balance | 54.6 | 54.6 | |
Revlon Consumer Products Corporation | Additional Paid-In Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 996.5 | 988.4 | |
Stock-based compensation amortization | 2.4 | 0.4 | |
Ending balance | 998.9 | 988.8 | |
Revlon Consumer Products Corporation | Accumulated Deficit | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (1,893.1) | (1,741.9) | |
Net loss | (212.2) | (73.5) | |
Ending balance | (2,105.3) | (1,815.4) | |
Revlon Consumer Products Corporation | Accumulated Other Comprehensive Loss | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (247.4) | (234.2) | |
Other comprehensive income (loss) | [3] | (2.7) | 0.9 |
Ending balance | $ (250.1) | $ (233.3) | |
[1] | Pursuant to the share withholding provisions of the Fourth Amended and Restated Revlon, Inc. Stock Plan (as amended, the "Stock Plan"), the Company withheld an aggregate of 14,977 and 85,607 shares of Revlon Class A Common Stock during the three months ended March 31, 2020 and 2019, respectively, to satisfy certain minimum statutory tax withholding requirements related to the vesting of restricted shares and restricted stock units ("RSUs") for certain senior executives and employees. These withheld shares were recorded as treasury stock using the cost method, at a weighted-average price per share of $23.47 and $18.86 during the three months ended March 31, 2020 and 2019, respectively, based on the closing price of Revlon Class A Common Stock as reported on the New York Stock Exchange (the "NYSE") consolidated tape on each respective vesting date, for a total of $0.4 million and $1.6 million during the three months ended March 31, 2020 and 2019, See Note 11, "Stock Compensation Plan," for details regarding restricted stock awards and RSUs under the Stock Plan. | ||
[2] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during the three months ended March 31, 2020 and 2019, respectively. | ||
[3] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during the three months ended March 31, 2020 and 2019, respectively. |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Tax withholdings related to net share settlements of restricted stock units and awards | $ 0.4 | $ 1.6 |
Treasury Stock | ||
Shares withheld for withholding taxes (in shares) | 14,977 | 85,607 |
Restricted Stock and Restricted Stock Units | Treasury Stock | Class A Common Stock | ||
Share repurchase price (in usd per share) | $ 23.47 | $ 18.86 |
UNAUDITED CONSOLIDATED STATEM_5
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (213.9) | $ (75.1) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 36.8 | 47 | |
Foreign currency losses from re-measurement | 16.6 | 0.2 | |
Amortization of debt discount | 0.4 | 0.4 | |
Stock-based compensation amortization | 2.4 | 0.4 | |
Impairment charges | 124.3 | 0 | |
Benefit from deferred income taxes | (37.2) | (5.6) | |
Amortization of debt issuance costs | 4 | 3.2 | |
Loss on divested assets | 0.8 | 0 | |
Pension and other post-retirement cost | 1.2 | 2 | |
Change in assets and liabilities: | |||
Decrease in trade receivables | 84.6 | 52.4 | |
Increase in inventories | (42.5) | (24) | |
(Increase) decrease in prepaid expenses and other current assets | (23.3) | 1.5 | |
Increase in accounts payable | 14.9 | 41.1 | |
Decrease in accrued expenses and other current liabilities | (34.8) | (66.7) | |
Pension and other post-retirement plan contributions | (3.6) | (1.8) | |
Purchases of permanent displays | (7) | (9.7) | |
Other, net | (1.3) | 6.3 | |
Net cash used in operating activities | (77.6) | (28.4) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (1.8) | (5.8) | |
Net cash used in investing activities | (1.8) | (5.8) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net decrease in short-term borrowings and overdraft | (6.4) | (17.2) | |
Net borrowings under the Amended 2016 Revolving Credit Facility | 69.1 | 40.6 | |
Repayments under the 2016 Term Loan Facility | (4.5) | (4.5) | |
Payment of financing costs | (0.3) | (0.9) | |
Tax withholdings related to net share settlements of restricted stock and RSUs | (0.4) | (1.6) | |
Other financing activities | (0.1) | (0.2) | |
Net cash provided by (used in) financing activities | 57.4 | 16.2 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3.3) | 0.3 | |
Net decrease in cash, cash equivalents and restricted cash | (25.3) | (17.7) | |
Cash, cash equivalents and restricted cash at beginning of period | [1] | 104.5 | 87.5 |
Cash, cash equivalents and restricted cash at end of period | [1] | 79.2 | 69.8 |
Cash paid during the period for: | |||
Interest | [2] | 62.9 | 61.3 |
Income taxes, net of refunds | [2] | 1 | 0.4 |
Revlon Consumer Products Corporation | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | (212.2) | (73.5) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 36.8 | 47 | |
Foreign currency losses from re-measurement | 16.6 | 0.2 | |
Amortization of debt discount | 0.4 | 0.4 | |
Stock-based compensation amortization | 2.4 | 0.4 | |
Impairment charges | 124.3 | 0 | |
Benefit from deferred income taxes | (36.9) | (5.4) | |
Amortization of debt issuance costs | 4 | 3.2 | |
Loss on divested assets | 0.8 | 0 | |
Pension and other post-retirement cost | 1.2 | 2 | |
Change in assets and liabilities: | |||
Decrease in trade receivables | 84.6 | 52.4 | |
Increase in inventories | (42.5) | (24) | |
(Increase) decrease in prepaid expenses and other current assets | (25.6) | (1.9) | |
Increase in accounts payable | 14.9 | 41.1 | |
Decrease in accrued expenses and other current liabilities | (34.6) | (65.1) | |
Pension and other post-retirement plan contributions | (3.6) | (1.8) | |
Purchases of permanent displays | (7) | (9.7) | |
Other, net | (1.2) | 6.3 | |
Net cash used in operating activities | (77.6) | (28.4) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (1.8) | (5.8) | |
Net cash used in investing activities | (1.8) | (5.8) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net decrease in short-term borrowings and overdraft | (6.4) | (17.2) | |
Net borrowings under the Amended 2016 Revolving Credit Facility | 69.1 | 40.6 | |
Repayments under the 2016 Term Loan Facility | (4.5) | (4.5) | |
Payment of financing costs | (0.3) | (0.9) | |
Tax withholdings related to net share settlements of restricted stock and RSUs | (0.4) | (1.6) | |
Other financing activities | (0.1) | (0.2) | |
Net cash provided by (used in) financing activities | 57.4 | 16.2 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3.3) | 0.3 | |
Net decrease in cash, cash equivalents and restricted cash | (25.3) | (17.7) | |
Cash, cash equivalents and restricted cash at beginning of period | 104.5 | 87.5 | |
Cash, cash equivalents and restricted cash at end of period | 79.2 | 69.8 | |
Cash paid during the period for: | |||
Interest | [3] | 62.9 | 61.3 |
Income taxes, net of refunds | [3] | $ 1 | $ 0.4 |
[1] | These amounts include restricted cash of $16.4 million and $1.5 million as of March 31, 2020 and 2019, respectively. The balance as of March 31, 2020 represents: (i) cash on deposit in lieu of a mandatory prepayment under the 2018 Foreign Asset-Based Term Facility; (ii) restricted cash under the terms of 2019 Term Loan Agreement; and (iii) cash on deposit to support outstanding undrawn letters of credit. The balance as of March 31, 2019 represents: (i) cash on deposit in lieu of a mandatory prepayment under the 2018 Foreign Asset-Based Term Facility; and (ii) cash on deposit to support outstanding undrawn letters of credit. These balances were included within prepaid expenses and other current assets and other assets in the Company's Unaudited Consolidated Balance Sheets as of March 31, 2020 and March 31, 2019, respectively. | ||
[2] | See Note 4, "Leases," for supplemental disclosure of non-cash financing and investing activities in relation to the lease liabilities arising from obtaining right-of-use assets following the implementation of the Financial Accounting Standards Board ("FASB"), Accounting Standard Codification ("ASC") Topic 842, Leases . | ||
[3] | See Note 4, "Leases," for supplemental disclosure of non-cash financing and investing activities in relation to the lease liabilities arising from obtaining right-of-use assets following the implementation of ASC Topic 842, Leases . |
UNAUDITED CONSOLIDATED STATEM_6
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2019 |
Restricted cash | $ 16.4 | $ 1.5 |
Revlon Consumer Products Corporation | ||
Restricted cash | $ 16.4 | $ 1.5 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
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, Inc. ("Revlon" and together with its subsidiaries, the "Company") conducts its business exclusively through its direct wholly-owned operating subsidiary, Revlon Consumer Products Corporation ("Products Corporation") and its subsidiaries. Revlon is an indirect majority-owned subsidiary of MacAndrews & Forbes Incorporated (together with certain of its affiliates other than the Company, "MacAndrews & Forbes"), a corporation beneficially owned by Ronald O. Perelman. Mr. Perelman is Chairman of Revlon's and Products Corporation's Board of Directors. The Company is a leading global beauty company with an iconic portfolio of brands that develops, manufactures, markets, distributes and sells an extensive array of color cosmetics; hair color, hair care and hair treatments; fragrances; skin care; beauty tools; men’s grooming products; anti-perspirant deodorants; and other beauty care products across a variety of distribution channels. The Company operates in four brand-centric reporting units that are aligned with its organizational structure based on four global brand teams: Revlon; Elizabeth Arden; Portfolio; and Fragrances, which represent the Company's four reporting segments. For further information, refer to Note 14, "Segment Data and Related Information." The accompanying Consolidated Financial Statements are unaudited. In management's opinion, all adjustments necessary for a fair presentation of the Company's financial information have been made. The Unaudited Consolidated Financial Statements include the Company's accounts after the elimination of all material intercompany balances and transactions. Certain prior year amounts have been reclassified to conform to the current year presentation. The preparation of the Company's Unaudited Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Unaudited Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Unaudited Consolidated Financial Statements include, but are not limited to: expected sales returns; certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets; income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities; and 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 Unaudited Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and related notes contained in Revlon's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the "2019 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 the full year. Recently Evaluated and/or Adopted Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, "Internal Use Software (Subtopic 350-40) - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract," which requires a customer in a cloud computing hosting arrangement that is a service contract to follow the existing guidance in ASC 350-40 on internal-use software to determine which implementation costs are to be deferred and recognized as an asset and which costs are to be expensed as incurred. This guidance is effective for annual periods beginning after December 15, 2019, with early adoption permitted, and may be applied either retrospectively or prospectively to all software implementation costs incurred after adoption. The Company adopted ASU No. 2018-15 prospectively, beginning as of January 1, 2020. The Company completed its assessment and determined that this new guidance does not have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The new guidance under ASU 2020-04 provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is in the process of assessing the impact, if any, that ASU No. 2020-04 is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes," which removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocations and calculating income taxes in interim periods. This ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance is effective for annual periods beginning after December 15, 2020, with early adoption permitted, including adoption in any interim period. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The amendments in this ASU that are related to separate financial statements of legal entities that are not subject to tax should be applied on a retrospective basis for all periods presented. The amendments in this ASU that are related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments in this ASU that are related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments under this ASU should be applied on a prospective basis. The Company is in the process of assessing the impact, if any, that this ASU is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In August 2018, the FASB issued ASU No. 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.” This new guidance removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and requires certain additional disclosures. This guidance is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The Company will adopt this guidance (on a retrospective basis for certain new additional disclosures), beginning as of January 1, 2021. While the Company is currently assessing the impact of this new pronouncement, the new guidance, which only affects disclosure items, is not expected to have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which was subsequently amended in November 2018 through ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses." ASU No. 2016-13 will require entities to estimate lifetime expected credit losses for trade and other receivables, net investments in leases, financing receivables, debt securities and other instruments, which will result in earlier recognition of credit losses. Further, the new credit loss model will affect how entities in all industries estimate their allowance for losses for receivables that are current with respect to their payment terms. ASU No. 2018-19 further clarifies that receivables arising from operating leases are not within the scope of Topic 326. Instead, impairment from receivables of operating leases should be accounted for in accordance with Topic 842, Leases. In November 2019, the FASB issued ASU No. 2019-10, which, among other things, deferred the application of the new guidance on credit losses for smaller reporting companies ("SRC") to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This guidance will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., a modified-retrospective approach). Under the above-mentioned deferral, the Company expects to adopt ASU No. 2016-03, and the related ASU No. 2018-19 amendments, beginning as of January 1, 2023 and is in the process of assessing the impact, if any, that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES Revlon 2020 Restructuring Program Building upon its previously-announced 2018 Optimization Program, in March 2020 the Company announced that it is implementing a worldwide organizational restructuring (the “Revlon 2020 Restructuring Program”) designed to reduce the Company’s selling, general and administrative expenses, as well as cost of goods sold, improve the Company’s gross profit and Adjusted EBITDA and maximize productivity, cash flow and liquidity. The Revlon 2020 Restructuring Program includes rightsizing the organization and operating with more efficient workflows and processes. The leaner organizational structure is also expected to improve communication flow and cross-functional collaboration, leveraging the more efficient business processes. As a result of the Revlon 2020 Restructuring Program, the Company expects to eliminate approximately 1,000 positions worldwide, including approximately 650 current employees and approximately 350 open positions of which approximately 700 were eliminated by March 31, 2020. In March 2020, the Company began informing certain employees that were affected by the Revlon 2020 Restructuring Program. While certain aspects of the Revlon 2020 Restructuring Program may be subject to consultations with employees, works councils, unions and/or governmental authorities, the Company currently expects to substantially complete the employee-related actions by the end of 2020 and the other consolidation and outsourcing actions during 2021 and 2022. In connection with implementing the Revlon 2020 Restructuring Program, the Company expects to recognize during 2020 approximately $60 million to $70 million of total pre-tax restructuring and related charges (the “2020 Restructuring Charges”), consisting primarily of employee-related costs, such as severance, retention and other contractual termination benefits. In addition, the Company expects restructuring charges in the range of $75 million to $85 million to be charged and paid during 2021 and 2022. The Company expects that substantially all of these restructuring charges will be paid in cash, with approximately $55 million to $65 million of the total charges expected to be paid in 2020, approximately $40 million to $45 million expected to be paid in 2021, with the balance expected to be paid in 2022. A summary of the 2020 Restructuring Charges incurred since its inception and through March 31, 2020 is presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Costs Total Restructuring Charges Leases (a) Other Related Charges(b) Total Restructuring and Related Charges Cumulative charges incurred through March 31, 2020 $ 25.6 $ — $ 25.6 $ 8.6 $ 0.2 $ 34.4 (a) Lease-related charges are recorded within SG&A in the Company’s Unaudited Consolidated Statement of Operations and Comprehensive Loss. These lease-related charges include: (i) $3.5 million for accelerated recognition of rent expense related to certain abandoned leases; (ii) $3.0 million for the disposal of leasehold improvements and other equipment in connection with certain leases; (iii) $1.2 million of rent expense related to the Revlon 2020 Restructuring Program; and (iv) $0.9 million of disposal of leasehold improvements and other equipment in connection with the abandoned leases identified in clause (i) of this footnote (a). (b) Other related charges are recorded within SG&A in the Company’s Unaudited Consolidated Statement of Operations and Comprehensive Loss. A summary of the 2020 Restructuring Charges incurred since its inception in March 2020 and through March 31, 2020 by reportable segment is presented in the following table: Cumulative charges incurred through March 31, 2020 Revlon $ 10.3 Elizabeth Arden 5.4 Portfolio 6.1 Fragrances 3.8 Total $ 25.6 2018 Optimization Restructuring Program In November 2018, the Company announced that it was implementing the 2018 Optimization Restructuring Program (the "2018 Optimization Program") designed to streamline the Company’s operations, reporting structures and business processes, with the objective of maximizing productivity and improving profitability, cash flows and liquidity. The 2018 Optimization Program was substantially completed by December 31, 2019. As of March 31, 2020, restructuring and related charges under the 2018 Optimization Program expected to be paid in cash are approximately $35 million of the total $39.8 million of recorded charges, of which approximately $29.1 million were already paid through March 31, 2020, with any residual balance expected to be paid during the remainder of 2020. A summary of the 2018 Optimization Restructuring Charges incurred since its inception in November 2018 and through March 31, 2020 is presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits (a) Other Costs Total Restructuring Charges Inventory Adjustments (b) Other Related Charges (c) Total Restructuring and Related Charges Charges incurred through December 31, 2019 $ 20.3 $ 0.3 $ 20.6 $ 4.9 $ 14.0 $ 39.5 Charges incurred during the three months ended March 31, 2020 (0.4) — (0.4) — 0.7 0.3 Cumulative charges incurred through March 31, 2020 $ 19.9 $ 0.3 $ 20.2 $ 4.9 $ 14.7 $ 39.8 (a) Includes reversal due to true-up of previously-accrued restructuring charges. (b) Inventory adjustments are recorded within cost of sales in the Company’s Unaudited Consolidated Statement of Operations and Comprehensive Loss. (c) Other related charges are recorded within SG&A in the Company’s Unaudited Consolidated Statement of Operations and Comprehensive Loss. A summary of the 2018 Optimization Restructuring Charges incurred since its inception in November 2018 and through March 31, 2020 by reportable segment is presented in the following table: Charges incurred during the three months ended March 31, 2020 Cumulative charges incurred through March 31, 2020 Revlon $ (0.2) $ 8.6 Elizabeth Arden (0.1) 4.2 Portfolio — 4.0 Fragrances (0.1) 3.4 Total $ (0.4) $ 20.2 Restructuring Reserve The liability balance and related activity for each of the Company's restructuring programs are presented in the following table: Utilized, Net Liability Expense, Net Foreign Currency Translation Cash Non-cash Liability Balance at March 31, 2020 Revlon 2020 Restructuring Program: Employee severance and other personnel benefits $ — $ 25.6 $ — $ (0.8) $ — $ 24.8 2018 Optimization Program: Employee severance and other personnel benefits 5.7 (0.4) — (2.5) — 2.8 Other immaterial actions: (a) Employee severance and other personnel benefits 4.3 (0.4) (0.1) (0.3) — 3.5 Total restructuring reserve $ 10.0 $ 24.8 $ (0.1) $ (3.6) $ — $ 31.1 (a) The balance of other immaterial restructuring initiatives primarily consists of balances outstanding under the EA Integration Restructuring Program implemented by the Company in December 2016, which was completed by December 2018. The reversal of charges and payments made during the first quarter of 2020 primarily related to other individually and collectively immaterial restructuring initiatives. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES As of March 31, 2020 and December 31, 2019, the Company's inventory balances consisted of the following: March 31, December 31, 2020 2019 Finished goods $ 363.9 $ 326.5 Raw materials and supplies 104.1 110.4 Work-in-process 11.8 11.5 $ 479.8 $ 448.4 |
LEASES AND PROPERTY, PLANT AND
LEASES AND PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES AND PROPERTY, PLANT AND EQUIPMENT | LEASES AND PROPERTY, PLANT AND EQUIPMENT The Company leases facilities for executive offices, warehousing, research and development and sales operations and leases various types of equipment under operating and finance lease agreements. The majority of the Company’s real estate leases, in terms of total undiscounted payments, are located in the U.S. At the effective date of January 1, 2019, the Company adopted ASU No. 2016-02 using a modified retrospective approach applying the standard’s transition provisions provided by such ASU. Refer to Note 1, "Description of Business and Summary of Significant Accounting Policies," in the 2019 Form 10-K for additional information regarding the Company's adoption of ASU No. 2016-02. During the first quarter of 2020, as a result of COVID-19’s impact on the Company’s operations, the Company considered whether indicators of impairment existed for its Property, Plant and Equipment ("PP&E"), including its Right-of-Use ("ROU") assets consisting of the Company's leases as described above. In accordance with ASC Topic 360, "Property, Plant and Equipment," for purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. An impairment loss is recognized only if the carrying amount of a long-lived asset and/or asset group is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset and/or asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset and/or asset group and the impairment loss is measured as the amount by which the carrying amount of a long-lived asset and/or asset group exceeds its fair value. In performing such review, the Company considers several indicators of impairment, including, among other factors, the following: (i) whether there exists any significant adverse change in the extent or manner in which a long-lived asset and/or asset group is being used; (ii) whether there exists any projection or forecast demonstrating losses associated with the use of a long-lived asset and/or asset group; and (iii) whether there exists a current expectation that, more likely than not, a long-lived asset and/or asset group will be sold or otherwise disposed of significantly before the end of its previously-estimated useful life. Following its interim assessment, the Company concluded that the carrying amounts of its PP&E, including its lease ROU assets, were not impaired as of March 31, 2020. The following table includes disclosure related to the ASC 842 lease standard for the periods presented, after application of the applicable practical expedients and short-term lease considerations: Three Months Ended March 31, 2020 March 31, 2019 Lease Cost: Finance Lease Cost: Amortization of ROU assets $ 0.1 $ 0.0 Interest on lease liabilities 0.0 0.0 Operating Lease Cost 13.0 10.6 Total Lease Cost $ 13.1 $ 10.6 Other Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases 0.0 0.0 Operating cash flows from operating leases 9.9 11.0 Financing cash flows from finance leases 0.1 0.2 March 31, 2020 December 31, 2019 ROU assets for finance leases 0.9 1.0 ROU assets for operating leases 90.8 91.4 Accumulated amortization on ROU assets for finance leases 0.4 0.3 Accumulated amortization on ROU assets for operating leases 26.3 23.2 Weighted-average remaining lease term - finance leases 2.6 years 2.8 years Weighted-average remaining lease term - operating leases 6.0 years 6.2 years Weighted-average discount rate - finance leases 15.0 % 15.6 % Weighted-average discount rate - operating leases 15.7 % 15.8 % Maturities of lease liabilities as of March 31, 2020 were as follows: Operating Leases Finance Leases April 2020 through December 2020 $ 26.4 $ 0.5 2021 32.8 0.5 2022 26.2 0.3 2023 21.9 0.0 2024 16.5 — Thereafter 46.7 — Total undiscounted cash flows $ 170.5 $ 1.3 Present value: Short-term lease liability $ 19.2 $ 0.5 Long-term lease liability 89.2 0.4 Total lease liability $ 108.4 $ 0.9 Difference between undiscounted cash flows and discounted cash flows $ 62.1 $ 0.4 |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill In accordance with ASC Topic 350, “Intangibles – Goodwill and Other,” the Company performs its annual impairment test during the fourth quarter of each year. The Company also reviews goodwill for impairment whenever events or changes in circumstances indicate that the carrying value of its goodwill may not be recoverable. After the close of each interim quarter, management assesses whether there exists any indicators of impairment requiring the Company to perform an interim goodwill impairment analysis. During the first quarter of 2020, as a result of COVID-19’s impact on the Company’s operations, the Company determined that indicators of potential impairment existed requiring the Company to perform an interim goodwill impairment analysis. These indicators included a deterioration in the general economic conditions, adverse developments in equity and credit markets, deterioration in some of the economic channels in which the Company's operates (especially in the mass retail channel), the recent trading values of the Company's capital stock and the corresponding decline in the Company’s market capitalization and the revision of the Company's internal forecasts as a result of COVID-19. As a result, for the first quarter of 2020 the Company examined and performed quantitative interim goodwill impairment assessments for all its reporting units, namely: (i) Revlon; (ii) Elizabeth Arden Skin and Color; (iii) Elizabeth Arden Fragrances; (iv) Fragrances; (v) Mass Portfolio; and (vi) Professional Portfolio. In performing these assessments the Company used the simplified approach allowed under ASU No. 2017-04, "Simplifying the Test for Goodwill Impairment." Based upon such assessments, the Company determined that it was more likely than not that the fair values of each of its Revlon, Elizabeth Arden Skin and Color and Fragrances reporting units exceeded their respective carrying amounts for the first quarter of 2020. As of March 31, 2020, the Revlon, Elizabeth Arden Skin and Color and Fragrances reporting units had goodwill balances of $264.7 million, $67.4 million and $120.8 million, respectively. Additionally, based on its first quarter 2020 quantitative interim assessment, the Company determined that indicators of impairment existed for the (i) Elizabeth Arden Fragrances; (ii) Mass Portfolio; and (iii) Professional Portfolio reporting units. Following the results of such assessments, the Company recorded non-cash impairment charges in the amount by which the carrying value of each reporting unit exceeded its respective fair value, limited to the amount of each reporting unit's goodwill. For the three months ended March 31, 2020, the Company recognized a total of $99.8 million of non-cash goodwill impairment charges consisting of: $54.3 million and $19.6 million for the Mass Portfolio and Professional Portfolio reporting units, respectively, within the Company's Portfolio segment and $25.9 million for the Elizabeth Arden Fragrances reporting unit within the Company's Elizabeth Arden segment. These impairment charges were included as a separate component of operating income within the "Impairment charges" caption on the face of the Company's Unaudited Consolidated Statement of Operations and Comprehensive Loss for the three months ended March 31, 2020. Following the recognition of these non-cash goodwill impairment charges, as of March 31, 2020, the Elizabeth Arden Fragrances, Mass Portfolio and Professional Portfolio reporting units had approximately $23.5 million, nil and $97.2 million, respectively, in remaining goodwill. The above-mentioned fair values were primarily determined using a weighted average market and income approach. The income approach requires several assumptions including those regarding future sales growth, EBITDA (earnings before interest, taxes, depreciation and amortization) margins, and capital expenditures, which are the basis for the information used in the discounted cash flow model. The weighted-average cost of capital used in the income approach ranged from 11.5% to 12.0%, with a perpetual growth rate of 2%. For the market approach, the Company considered the market comparable method based upon total enterprise value multiples of other comparable publicly-traded companies. The key assumptions used to determine the estimated fair value of the reporting units included the expected success of the Company's future new product launches, the Company's achievement of its expansion plans, the Company's realization of its cost reduction initiatives and other efficiency efforts, as well as certain assumptions regarding COVID-19's expected impact on the Company. If such plans and assumptions do not materialize as anticipated, or if there are further challenges in the business environment in which the Company's reporting units operate, a resulting change in actual results from the Company's key assumptions could have a negative impact on the estimated fair values of the reporting units, which could require the Company to recognize additional impairment charges in future reporting periods. The inputs and assumptions utilized in the impairment analyses are classified as Level 3 inputs in the fair value hierarchy as defined in ASC Topic 820, “Fair Value Measurements.” The following table presents the changes in goodwill by segment for the three months ended March 31, 2020: Revlon Portfolio Elizabeth Arden Fragrances Total Balance at January 1, 2020 $ 264.9 $ 171.1 $ 116.9 $ 120.8 $ 673.7 Foreign currency translation adjustment (0.2) — — — (0.2) Goodwill impairment charge (73.9) (25.9) — (99.8) Balance at March 31, 2020 $ 264.7 $ 97.2 $ 91.0 $ 120.8 $ 573.7 Cumulative goodwill impairment charges (a) $ (155.0) (a) Amount refers to cumulative goodwill impairment charges related to impairments recognized in 2015, 2017, 2018 and 2020; $99.8 million of impairment charges were recognized for the three months ended March 31, 2020. In connection with recognizing these goodwill impairment charges for the first quarter of 2020, the Company recognized a tax benefit of approximately $8.3 million during such period. Intangible Assets, Net In accordance with ASC Topic 360, and in conjunction with the Company's performance of its interim impairment testing of goodwill for the first quarter of 2020, the Company reviewed its finite-lived intangible assets for impairment. In performing such review, the Company makes judgments about the recoverability of its purchased finite-lived intangible assets whenever events or changes in circumstances indicate that an impairment to its finite-lived intangible assets may exist. The Company also considers several indicators of impairment, including, among other factors, the following: (i) whether there exists any significant adverse change in the extent or manner in which a long-lived asset and/or asset group is being used; (ii) whether there exists any projection or forecast demonstrating losses associated with the use of a long-lived asset and/or asset group; and (iii) whether there exists a current expectation that, more likely than not, a long-lived asset and/or asset group will be sold or otherwise disposed of significantly before the end of its previously-estimated useful life. The carrying amount of a finite-lived intangible asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the finite-lived intangible asset and/or asset group and the impairment loss is measured as the amount by which the carrying amount of the finite-lived intangible asset exceeds its fair value. In connection with the interim impairment assessment for the first quarter of 2020, the Company also reviewed indefinite-lived intangible assets, consisting of certain trade names, using March 31, 2020 carrying values similar to goodwill, in accordance with ASC Topic 350. As a result of COVID-19’s impact on the Company’s operations and on the expected future cash flows of certain asset groups, in connection with the Company's interim assessment of finite-lived and indefinite-lived intangible assets, as of March 31, 2020 the Company recognized $24.5 million of total non-cash impairment charges related to certain indefinite-lived intangible assets within the Company's Mass Portfolio, Elizabeth Arden Fragrances and Elizabeth Arden Skin and Color reporting units. The fair values of the Company's intangible assets were determined based on the undiscounted cash flows method for its finite-lived intangibles and based on the relief from royalty method for its indefinite-lived intangibles, respectively. The inputs and assumptions utilized in the impairment analyses are classified as Level 3 inputs in the fair value hierarchy as defined in ASC Topic 820, “Fair Value Measurements.” These impairment charges were included as a separate component of operating income within the "Impairment charges" caption on the face of the Company's Unaudited Consolidated Statement of Operations and Comprehensive Loss for the three months ended March 31, 2020. A summary of such impairment charges by segments is included in the following table: March 31, 2020 Revlon Portfolio Elizabeth Arden Fragrances Total Indefinite-lived intangible assets $ — $ (2.5) $ (22.0) $ — $ (24.5) Total Intangibles Impairment $ — $ (2.5) $ (22.0) $ — $ (24.5) In connection with recognizing these intangible assets impairment charges for the first quarter of 2020, the Company recognized a tax benefit of approximately $5.1 million during such period. The following tables present details of the Company's total intangible assets as of March 31, 2020 and December 31, 2019: March 31, 2020 Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount Weighted-Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and licenses $ 271.0 $ (114.8) $ — $ 156.2 13 Customer relationships 247.4 (99.4) — 148.0 11 Patents and internally-developed intellectual property 21.7 (12.6) — 9.1 5 Distribution rights 31.0 (6.1) — 24.9 14 Other 1.3 (1.3) — — 0 Total finite-lived intangible assets $ 572.4 $ (234.2) $ — $ 338.2 Indefinite-lived intangible assets: Trade names $ 142.9 N/A $ (24.5) $ 118.4 Total indefinite-lived intangible assets $ 142.9 N/A $ (24.5) $ 118.4 Total intangible assets $ 715.3 $ (234.2) $ (24.5) $ 456.6 December 31, 2019 Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount Weighted-Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and licenses $ 271.2 $ (110.9) $ — $ 160.3 13 Customer relationships 248.3 (96.5) — 151.8 11 Patents and internally-developed intellectual property 21.5 (12.1) — 9.4 5 Distribution rights 31.0 (5.6) — 25.4 15 Other 1.3 (1.3) — — 0 Total finite-lived intangible assets $ 573.3 $ (226.4) $ — $ 346.9 Indefinite-lived intangible assets: Trade names $ 143.8 N/A $ — $ 143.8 Total indefinite-lived intangible assets $ 143.8 N/A $ — $ 143.8 Total intangible assets $ 717.1 $ (226.4) $ — $ 490.7 Amortization expense for finite-lived intangible assets was $8.5 million and $14.8 million for the three months ended March 31, 2020 and 2019, respectively. The variance was attributable primarily to the accelerated amortization of the Pure Ice intangible assets during the quarter ended March 31, 2019 as a result of the revision of the brand’s intangible assets useful lives following the termination of a business relationship with the brand's principal customer. The following table reflects the estimated future amortization expense for each period presented, a portion of which is subject to exchange rate fluctuations, for the Company's finite-lived intangible assets as of March 31, 2020: Estimated Amortization Expense 2020 $ 25.6 2021 33.2 2022 32.3 2023 30.8 2024 27.5 Thereafter 188.8 Total $ 338.2 |
ACCRUED EXPENSES AND OTHER
ACCRUED EXPENSES AND OTHER | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER | ACCRUED EXPENSES AND OTHER As of March 31, 2020 and December 31, 2019, the Company's accrued expenses and other current liabilities consisted of the following: March 31, December 31, 2020 2019 Sales returns and allowances $ 76.8 $ 89.7 Advertising, marketing and promotional costs 63.3 82.8 Taxes (a) 46.5 54.3 Compensation and related benefits 30.7 42.1 Interest 18.8 34.0 Professional services and insurance 18.4 16.3 Short term lease liability 19.7 14.5 Freight and distribution costs 8.7 13.2 Restructuring reserve 31.1 10.0 Software 3.8 4.0 Other (b) 56.3 54.0 Total $ 374.1 $ 414.9 (a) Accrued Taxes for Products Corporation as of March 31, 2020 and December 31, 2019 were $49.7 million and $57.6 million, respectively. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT As of March 31, 2020 and December 31, 2019, the Company's debt balances consisted of the following: March 31, December 31, 2020 2019 2019 Term Loan Facility due 2023, net of discounts and debt issuance costs (see (a) below) $ 187.7 $ 187.1 2018 Foreign Asset-Based Term Facility due 2021, net of discounts and debt issuance costs (see (b) below) 81.5 82.3 Amended 2016 Revolving Credit Facility due 2021, net of debt issuance costs (see (c) below) 339.5 269.9 2016 Term Loan Facility: 2016 Term Loan due 2023, net of discounts and debt issuance costs (see (d) below) 1,710.9 1,713.6 5.75% Senior Notes due 2021, net of debt issuance costs (see (e) below) 498.5 498.1 6.25% Senior Notes due 2024, net of debt issuance costs (see (f) below) 443.1 442.8 Spanish Government Loan due 2025 0.4 0.4 Debt $ 3,261.6 $ 3,194.2 Less current portion (*) (856.1) (288.0) Long-term debt $ 2,405.5 $ 2,906.2 Short-term borrowings (see (g) below) $ 2.9 $ 2.2 (*) At March 31, 2020, the Company classified $856.1 million as its current portion of long-term debt, comprised primarily of $498.5 million of Products Corporation's 5.75% Senior Notes due February 15, 2021 (the "5.75% Senior Notes"), net of debt issuance costs, $339.5 million net borrowings under the Amended 2016 Revolving Credit Facility, net of debt issuance costs, and $18.0 million of amortization payments on the 2016 Term Loan Facility scheduled to be paid over the next four calendar quarters. At December 31, 2019, the Company classified $288.0 million as its current portion of long-term debt, comprised primarily of $269.9 million of net borrowings under the Amended 2016 Revolving Credit Facility, net of debt issuance costs, and $18.0 million of amortization payments on the 2016 Term Loan Facility. See Note 19 "Subsequent Events," for detail regarding the extension of the maturity of the Tranche B of the Amended 2016 Revolving Credit Facility. (a) See Note 9, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2019 Form 10-K for certain details regarding the 2019 Term Loan Facility, which will mature on the earliest of: (x) August 6, 2023; (y) the 180th day prior to the stated maturity of Products Corporation’s existing 2016 Term Loan Facility, if any loans under the 2016 Term Loan Facility remain outstanding and have not been replaced or refinanced by such date; and (z) the date of any springing maturity of the 2016 Term Loan Facility (i.e., the 91st day prior to the maturity of the 5.75% Senior Notes due February 15, 2021 if any 5.75% Senior Notes remain outstanding by such date and certain liquidity thresholds are not met). The aggregate principal amount outstanding under the 2019 Term Loan Facility at March 31, 2020 was $200.0 million. See Note 19 "Subsequent Events," for detail regarding the closing of the 2020 Refinancing Transaction and related transactions, which included the full repayment of the 2019 Term Loan Facility. (b) See Note 9, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2019 Form 10-K for certain details regarding the euro-denominated senior secured asset-based term loan facility in an aggregate principal amount of €77 million that various foreign subsidiaries of Products Corporation entered into in July 2018 (the “2018 Foreign Asset-Based Term Facility”). See Note 19 "Subsequent Events," for detail regarding certain the closing of the 2020 Refinancing Transaction and related transactions, which included a partial repayment of the 2018 Foreign Asset-Based Term Facility. (c) See Note 9, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2019 Form 10-K for certain details regarding Products Corporation's Amended 2016 Revolving Credit Facility. In April 2018, Products Corporation amended the Amended 2016 Revolving Credit Facility Agreement, as detailed below, to, among other things, add a new $41.5 million senior secured first in, last out "Tranche B," while the original $400 million tranche under such facility became a senior secured last in, first out "Tranche A." Tranche A matures on the earlier of: (x) September 7, 2021; and (y) the 91 st day prior to the maturity of Products Corporation’s 5.75% Senior Notes, if, on that date (and solely for so long as), (i) any of Products Corporation’s 5.75% Senior Notes remain outstanding and (ii) Products Corporation’s available liquidity does not exceed the aggregate principal amount of the then outstanding 5.75% Senior Notes by at least $200 million. Tranche B matures on May 17, 2020. See Note 19 "Subsequent Events," for detail regarding the extension of the maturity of the Tranche B of the Amended 2016 Revolving Credit Facility. Total borrowings at face amount under Tranche A and Tranche B under the Amended 2016 Revolving Credit Facility at March 31, 2020 were $306.7 million (excluding $11.0 million of outstanding undrawn letters of credit) and $34.8 million, respectively (the 2016 Term Loan Facility and the Amended 2016 Revolving Credit Facility are collectively referred to as the "2016 Senior Credit Facilities" and the applicable agreements being the “2016 Credit Agreements”). (d) See Note 9, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2019 Form 10-K for certain details regarding Products Corporation's 2016 Term Loan that matures on the earlier of: (x) September 7, 2023; and (y) the 91 st day prior to the maturity of Products Corporation’s 5.75% Senior Notes due 2021 if, on that date (and solely for so long as), (i) any of Products Corporation's 5.75% Senior Notes remain outstanding and (ii) Products Corporation’s available liquidity does not exceed the aggregate principal amount of the then outstanding 5.75% Senior Notes by at least $200 million. The aggregate principal amount outstanding under the 2016 Term Loan Facility at March 31, 2020 was $1,737.0 million. See Note 19 "Subsequent Events," for detail regarding the closing of the 2020 Refinancing Transaction and related transactions, which included various amendments to the 2016 Term Loan. (e) See Note 9, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2019 Form 10-K for certain details regarding Products Corporation's 5.75% Senior Notes that mature on February 15, 2021. The aggregate principal amount outstanding under the 5.75% Senior Notes at March 31, 2020 was $500 million. (f) See Note 9, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2019 Form 10-K for certain details regarding Products Corporation's 6.25% Senior Notes that mature on August 1, 2024 (the "6.25% Senior Notes"). The aggregate principal amount outstanding under the 6.25% Senior Notes at March 31, 2020 was $450 million. (g) There were no borrowings at March 31, 2020 under the 2019 Senior Line of Credit Facility between Products Corporation and MacAndrews & Forbes Group, LLC, a related party, discussed below. Current Year Debt Transactions In March 2020, Products Corporation entered into a commitment letter with Jefferies Finance LLC and, separately, in April 2020 entered into a further commitment letter with an ad hoc group of lenders under its 2016 Term Loan Facility. These commitment letters currently provide the Company with several alternative financing arrangements. See Note 19, "Subsequent Events," for details regarding the consummation of the 2020 Refinancing Transactions. 2020 Committed Debt Financing from Jefferies Finance, LLC In March 2020, Products Corporation entered into a binding Commitment Letter with Jefferies Finance LLC (the “Jefferies Commitment Party” and the “Jefferies Commitment Letter,” respectively). Pursuant to the Jefferies Commitment Letter and subject to the terms and conditions set forth therein, the Jefferies Commitment Party has committed to provide senior secured term loan facilities in an aggregate principal amount of up to $850 million (the “Jefferies Facilities” and the “Jefferies 2020 Refinancing Transactions”). The proceeds of the Jefferies Facilities were expected to be used: (i) to repay in full indebtedness outstanding under Products Corporation’s 5.75% Senior Notes due February 2021 and Products Corporation's 2019 Term Loan Facility (the “Jefferies Refinancing”); (ii) to pay fees and expenses in connection with the Jefferies Facilities and the Jefferies Refinancing; and (iii) to the extent of any excess, for general corporate purposes. The funding of the Jefferies Facilities was contingent on the satisfaction of a limited number of customary conditions, including the execution of definitive loan documentation for the Jefferies Facilities, absence of material adverse change and certain other customary conditions. The commitments under the Jefferies Commitment Letter were available to the Company until June 30, 2020, unless the Jefferies Refinancing was consummated or the maturity of certain other material indebtedness of Products Corporation was accelerated prior to such date. As of March 31, 2020, the Jefferies 2020 Refinancing Transactions had not been consummated and following such date it was superseded by the closing of the 2020 Refinancing Transactions with the Ad Hoc Group (as hereinafter defined). See Note 19, "Subsequent Events," for details regarding the consummation of the 2020 Refinancing Transactions. Principal and Maturity: The Jefferies Facilities would consist of (i) a senior secured term loan facility in a principal amount of up to $300 million (the “Jefferies Brandco Facility”) and (ii) a senior secured term loan facility in a principal amount of up to $550 million (the “Jefferies Spe cified Brands Facility”). Jefferies Finance LLC would act as administrative agent and collateral agent in respect of the Jefferies Facilities. The Jefferies Facilities would mature on the fifth anniversary of the closing date of the Jefferies Facilities (the “Jefferies Closing Date”), subject to a springing maturity 91 days prior to the maturity date of Products Corporation’s 6.25% Senior Notes due 2024 (the “6.25% Senior Notes”) if, on such date, $100 million or more in aggregate principal amount of the 6.25% Senior Notes remains outstanding. Jefferies Brandco Facility. The borrower under the Jefferies Brandco Facility would be Products Corporation, and the Jefferies Brandco Facility would be guaranteed by certain indirect foreign subsidiaries of Products Corporation (the “Jefferies BrandCos”), whose direct and indirect subsidiaries (the “Jefferies Specified Brands Subsidiaries”) would be “Unrestricted Subsidiaries” for purposes of the existing debt agreements of Products Corporation and would hold various intellectual property assets related to the Elizabeth Arden and American Crew brands and certain other portfolio brands (the “Jefferies Specified Brand Assets”). The Jefferies BrandCos would not guarantee Products Corporation’s 2016 Term Loan Facility, but all guarantors of the 2016 Term Loan Facility would guarantee the Jefferies Brandco Facility. All of the assets of the Jefferies BrandCos (including the equity of the first-tier Jefferies Specified Brands Subsidiary) would be pledged to secure the Jefferies Brandco Facility on a first-priority basis and would not secure the 2016 Term Loan Facility, but the Jefferies Brandco Facility would be secured on a pari passu basis by the assets securing the 2016 Term Loan Facility. Jefferies Specified Brands Facility. The borrower of the Jefferies Specified Brands Facility would be a Jefferies Specified Brands Subsidiary that is an indirect subsidiary of the Jefferies BrandCos (the “Jefferies Specified Brands Borrower”). The Jefferies Specified Brands Facility would be guaranteed by the direct parent of the Jefferies Specified Brands Borrower and each of the subsidiaries of the Jefferies Specified Brands Borrower. The Jefferies Specified Brands Facility would be secured by substantially all of the assets of the Jefferies Specified Brands Borrower and the other Jefferies Specified Brands Subsidiaries, which would include the Jefferies Specified Brand Assets. Contribution and License Agreements: In connection with the pledge of the Jefferies Specified Brand Assets, Products Corporation would enter into intercompany arrangements pursuant to which the Jefferies Specified Brand Assets would be contributed to the Jefferies Specified Brand Subsidiaries. Products Corporation and/or its operating subsidiaries would enter into license and royalty arrangements on arm’s length terms with the relevant Jefferies Specified Brand Subsidiary to provide for their continued use of the Jefferies Specified Brand Assets during the term of the Jefferies Facilities. Interest and Fees: Interest would accrue on the Jefferies Facilities at a rate per annum of adjusted LIBOR plus a fixed margin. Products Corporation was also obligated to pay customary fees and expenses in connection with the Jefferies Facilities. Affirmative and Negative Covenants: The Jefferies Facilities would contain certain affirmative and negative covenants that, among other things, limit the Jefferies Restricted Group’s (as defined below) ability to: (i) incur additional debt; (ii) incur liens; (iii) sell, transfer or dispose of assets; (iv) make investments; (v) make dividends and distributions on, or repurchases of, equity; (vi) make prepayments of contractually subordinated or junior lien debt; (vii) enter into certain transactions with their affiliates; (viii) enter into sale-leaseback transactions; (ix) change their lines of business; (x) restrict dividends from their subsidiaries or restrict liens; (xi) change their fiscal year; and (xii) modify the terms of certain debt. The “ Jefferies Restricted Group” means (a) with respect to the Jefferies Brandco Facility, Products Corporation and its restricted subsidiaries under the Jefferies Brandco Facility and (b) with respect to the Jefferies Specified Brands Facility, the Jefferies Specified Brands Subsidiaries. Prepayments: The Jefferies Facilities would be subject to certain mandatory prepayments, including from the net proceeds from the issuance of certain additional debt and asset sale proceeds of certain non-ordinary course asset sales or other dispositions of property, subject to certain exceptions. The Jefferies Facilities would be repa yable at any time, subject to customary prepayment premiums. The Jefferies Facilities would also contain certain customary representations, warranties and events of default. Fees and expenses incurred in connection with the Jefferies Commitment Letter of approximately $3.9 million were capitalized and are being amortized to interest expense on a straight-line basis over the contractual term of the binding commitment. Covenants Products Corporation was in compliance with all applicable covenants under the 2016 Credit Agreements, the 2019 Term Loan Agreement (which was fully repaid as part of consummating the 2020 Refinancing Transactions), the 2018 Foreign Asset-Based Term Agreement, the Amended 2019 Senior Line of Credit Agreement, as well as with all applicable covenants under its Senior Notes Indentures, as of March 31, 2020. At March 31, 2020, the aggregate principal amounts outstanding and availability under Products Corporation’s various revolving credit facilities were as follows: Commitment Borrowing Base Aggregate principal amount outstanding at March 31, 2020 Availability at March 31, 2020 (a) Tranche A of the Amended 2016 Revolving Credit Facility $ 400.0 $ 352.0 $ 306.7 $ 34.3 Tranche B of the Amended 2016 Revolving Credit Facility 41.5 34.8 34.8 — Total Tranche A & B of the Amended 2016 Revolving Credit Facility (a) $ 441.5 $ 386.8 $ 341.5 $ 34.3 Amended 2019 Senior Line of Credit Facility $ 30.0 N/A $ — $ 30.0 (a) Availability as of March 31, 2020 is based upon the borrowing base then in effect under the Amended 2016 Revolving Credit Facility of $386.8 million, less $11.0 million of outstanding undrawn letters of credit and $341.5 million then drawn. As Products Corporation’s consolidated fixed charge coverage ratio was greater than 1.0 to 1.0 as of March 31, 2020, all of the $34.3 million of availability under the Amended 2016 Revolving Credit Facility was available as of such date. The Company’s foreign subsidiaries held $57.7 million out of the Company's total $62.8 million in cash and cash equivalents as of March 31, 2020. While the cash held by the Company’s foreign subsidiaries is primarily used to fund their operations, the Company regularly assesses its global cash needs and the available sources of cash to fund these needs, which regularly includes repatriating foreign-held cash to settle historical intercompany loans and other intercompany payables. The Company believes that it has and will have sufficient liquidity to meet its cash needs for at least the next 12 months based upon the cash generated by its operations, cash on hand, availability under the Amended 2016 Revolving Credit Facility, the Amended 2019 Senior Line of Credit Facility, the consummated 2020 Refinancing Transactions, as detailed in Note 19, "Subsequent Events," as well as other permissible borrowings, along with the option to further settle historical intercompany loans and payables with certain foreign subsidiaries. The Company also expects to generate additional liquidity from cost reductions resulting from th e implementation of the Revlon 2020 Restructuring Program, which was initiated during the first quarter of 2020, the 2018 Optimization Program and cost reductions generated from other cost control initiatives, including, without limitation, new interim measures to reduce costs in response to COVID-19 (such as: (i) switching to a reduced work week and reducing executive and employee compensation in the range of 20% to 40%; (ii) furloughing approximately 40% of the Company’s U.S.-based employees and those in certain other locations; (iii) suspending Company discretionary profit sharing contributions and matching contributions to the Company’s 401(k) plan; (iv) reducing Board and committee compensation by 50% and eliminating Board and committee meeting fees; and (v) ceasing services and payments under consulting agreements with 2 non-independent directors), as well as funds provided by selling certain assets (such as the Natural Honey and Floid brands that were sold in December 2019) in connection with the Company's ongoing Strategic Review. For information regarding certain risks related to the Company’s indebtedness, see Item 1A. “Risk Factors” in the Company's 2019 Form 10-K. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2020 | |
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 value 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 both March 31, 2020 and December 31, 2019, the Company did not have any financial assets and liabilities that were required to be measured at fair value. As of March 31, 2020, the fair value and carrying value of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: March 31, 2020 Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion (a) $ — $ 1,768.3 $ — $ 1,768.3 $ 3,261.6 As of December 31, 2019, the fair value and carrying value of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: December 31, 2019 Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion (a) $ — $ 2,522.2 $ — $ 2,522.2 $ 3,194.2 (a) The fair value of the Company's long-term debt, including the current portion of long-term debt, is based on quoted market prices for similar issuances and maturities. The carrying amounts of the Company's cash and cash equivalents, trade receivables, notes receivable, accounts payable and short-term borrowings approximate their respective fair values. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Letters of Credit Products Corporation maintains standby and trade letters of credit for various corporate purposes under which Products Corporation is obligated, of which $11.0 million and $11.4 million (including amounts available under credit agreements in effect at that time) were maintained as of March 31, 2020 and December 31, 2019, respectively. Included in these amounts are approximately $8.3 million in standby letters of credit that support Products Corporation’s self-insurance programs, in each case as outstanding as of March 31, 2020 and December 31, 2019, respectively. The estimated liability under such programs is accrued by Products Corporation. |
PENSION AND POST-RETIREMENT BEN
PENSION AND POST-RETIREMENT BENEFITS | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
PENSION AND POST-RETIREMENT BENEFITS | PENSION AND POST-RETIREMENT BENEFITS Net Periodic Benefit Cost The components of net periodic benefit costs for the Company's pension and the other post-retirement benefit plans for the three months March 31, 2020 and 2019, respectively, were as follows: Pension Plans Other Three Months Ended March 31, 2020 2019 2020 2019 Net periodic benefit costs: Service cost $ 0.4 $ 0.5 $ — $ — Interest cost 3.7 4.9 0.1 0.1 Expected return on plan assets (5.8) (6.0) — — Amortization of actuarial loss 2.7 2.4 0.1 0.1 Total net periodic benefit costs prior to allocation $ 1.0 $ 1.8 $ 0.2 $ 0.2 Portion allocated to Revlon Holdings — — — — Total net periodic benefit costs $ 1.0 $ 1.8 $ 0.2 $ 0.2 In the three months ended March 31, 2020, the Company recognized net periodic benefit cost of $1.2 million, compared to net periodic benefit cost of $2.0 million in the three months ended March 31, 2019, primarily due to lower interest costs partially offset by higher amortization of actuarial loss. Net periodic benefit costs are reflected in the Company's Unaudited Consolidated Financial Statements as follows for the periods presented: Three Months Ended March 31, 2020 2019 Net periodic benefit costs: Selling, general and administrative expense 0.4 0.5 Miscellaneous, net 0.8 1.5 Total net periodic benefit costs $ 1.2 $ 2.0 The Company expects that it will have net periodic benefit cost of approximately $5.0 million for its pension and other post-retirement benefit plans for all of 2020, compared with net periodic benefit cost of $7.2 million in 2019. Contributions: The Company’s intent is to fund at least the minimum contributions required to meet applicable federal employee benefit laws and local laws, or to directly pay benefit payments where appropriate. During the first quarter of 2020, $3.4 million and $0.2 million were contributed to the Company’s pension plans and other post-retirement benefit plans, respectively. During 2020, the Company expects to contribute approximately $18 million in the aggregate to its pension and other post-retirement benefit plans. As a result of the CARES Act passed by the U.S. Congress in March 2020 to address the economic environment resulting from COVID-19, and in accordance with the Limited Relief for Pension Funding and Retirement Plan Distributions provision of such act, the Company expects to defer approximately $9 million of contributions that were otherwise scheduled to be paid to its two qualified pension plans during 2020. The first quarterly contributions for the two qualified plans were originally due by April 15, 2020. The Company had already made $1.6 million in contributions to its qualified pension plans during the first quarter of 2020, prior to adopting the aforementioned provision of the CARES Act. The deferral is in effect only for 2020 and under the CARES relief provisions the Company will be required to pay the contributions by no later than January 1, 2021, including interest at the plans’ 2020 effective interest rate ("EIR") from the original due date to the actual payment date. Relevant aspects of the qualified defined benefit pension plans, non-qualified pension plans and other post-retirement benefit plans sponsored by Products Corporation are disclosed in Note 12, "Pension and Post-Retirement Benefits," to the Consolidated Financial Statements in the Company's 2019 Form 10-K. |
STOCK COMPENSATION PLAN
STOCK COMPENSATION PLAN | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK COMPENSATION PLAN | STOCK COMPENSATION PLAN Revlon maintains the Fourth Amended and Restated Revlon, Inc. Stock Plan (as amended, the "Stock Plan"), which provides for awards of stock options, stock appreciation rights, restricted or unrestricted stock and restricted stock units ("RSUs") to eligible employees and directors of Revlon and its affiliates, including Products Corporation. An aggregate of 6,565,000 shares were reserved for issuance as Awards under the Stock Plan, of which there remained approximately 2.4 million shares available for grant as of March 31, 2020. In July 2014, the Stock Plan was amended to renew the Stock Plan for a 7-year renewal term expiring on April 14, 2021. In September 2019 the Stock Plan was amended in connection with the 2019 TIP, described below, to: (1) allow the Compensation Committee to delegate to Revlon’s Chief Executive Officer the authority to grant RSUs to the Company’s employees, other than its officers who are subject to Section 16 of the Securities Exchange Act of 1934, as amended (i.e., the Company’s Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer & Controller); (2) allow for accelerated vesting of equity awards upon a termination without cause; (3) change the minimum vesting period for specified equity awards from 3 years to 2 years; and (4) to increase by 250,000 shares the number of shares of Revlon common stock that are not subject to the Stock Plan’s minimum vesting requirements. Revlon 2019 Transaction Incentive Program In August 2019, it was disclosed that MacAndrews & Forbes and Revlon determined to explore strategic transactions involving Revlon and third parties (the "Strategic Review"). In light of this, the Compensation Committee of Revlon’s Board of Directors approved a Revlon 2019 Transaction Incentive Program (the “2019 TIP”) that enables the Company to award cash-based and RSU-based retention grants and transaction bonus awards, as well as providing for the accelerated vesting of time-based RSUs and restricted shares following a termination without cause or due to death or disability. Each Tier 1 participant’s 2019 TIP award is payable two-thirds in cash and one-third in RSUs vesting in 50% tranches on each of December 31, 2020 and December 31, 2021, while Tier 2 awards are payable 100% in cash in one lump-sum on December 31, 2020, in each case subject to certain earlier vesting for a change of control or termination of employment without cause, as described below. As of September 5, 2019, the Company approved a total of 206,812 time-based RSUs under Tier 1 of the 2019 TIP, which are scheduled to vest in equivalent amounts on each of December 31, 2020 and December 31, 2021, subject to continued employment (the “2019 TIP RSUs”). As of March 31, 2020, a total of 204,151 time-based RSUs under Tier 1 of the 2019 TIP had been granted. The Company’s President and Chief Executive Officer declined an award under the retention program and will receive a transaction bonus only if the Company completes a transaction. The 2019 TIP RSUs vest in full upon an involuntary termination, other than if due to cause; provided that if a change of control occurs or a brand or business segment is sold and (i) the impacted grantee accepts an offer of employment from the buyer, then: (A) if the buyer assumes the 2019 TIP RSUs, the grantee will continue to vest in the assumed awards (with the grantee having the continued right to accelerated vesting upon an involuntary termination, other than if due to cause); and (B) if the buyer does not assume the 2019 TIP RSUs, the grantee’s 2019 TIP RSUs will vest upon closing the change of control; and (ii) the impacted grantee declines an offer of employment from the buyer for substantially comparable total compensation and benefits, the grantee will forfeit their unvested 2019 TIP RSUs (collectively, the “Special Vesting Rules”). The 2019 TIP also provides for the following cash-based awards payable to certain employees, subject to continued employment through the respective vesting dates: (i) Tier 1 - $6.8 million payable in two equal installments as of December 31, 2020 and December 31, 2021; and (ii) Tier 2 - $2.5 million payable in one installment as of December 31, 2020. Such cash-based awards follow the Special Vesting Rules following a termination without cause or due to death or disability. During 2019 and through March 31, 2020, the Company granted $5.1 million and $2.0 million cash-based awards, net of forfeitures, under Tier 1 and Tier 2 of the 2019 TIP, respectively, which are being amortized over the period from the grant dates to December 31, 2021 and December 31, 2020, respectively. The total amount amortized for these cash-based awards since the program's inception and through March 31, 2020 is approximately $2.7 million, of which $1.4 million was recorded during the three months ended March 31, 2020 within "Acquisition, integration and divestiture costs" in the Company's Unaudited Consolidated Statements of Operations and Comprehensive Loss. Long-Term Incentive Program The Company's LTIP RSUs consist of time-based RSUs and performance-based RSUs. Time-based RSUs are generally scheduled to vest ratably over a 3-year service period, while performance-based RSUs are scheduled to vest based on the achievement of certain Company performance metrics and cliff-vest at the completion of a 3-year performance period. The fair value of the LTIP and TIP RSUs is determined based on the NYSE closing share price on the grant date. In connection with the announcement of the 2019 TIP, in August 2019 the Company also approved applying the Special Vesting Rules to outstanding, pre-existing LTIP RSUs, except that accelerated vesting in the case of termination of employment without cause will apply only to any tranche of outstanding, pre-existing LTIP RSUs scheduled to vest in the 12-month period following termination, with any future tranches being forfeited. Prior to the approval of these Special Vesting Rules, while the outstanding, pre-existing LTIP RSUs would generally have accelerated vesting upon a change of control, they did not feature accelerated vesting for termination and, in such cases, they were entirely forfeited upon termination. During the first quarter of 2020, the Company granted approximately 1.3 million time-based and performance-based RSU awards under the Stock Plan (the "2020 LTIP RSUs"). Acceleration of Vesting As of March 31, 2020, 29,350 LTIP RSUs and 21,077 2019 TIP Tier 1 RSUs were vested on an accelerated basis due to involuntary terminations under the above-mentioned provisions, resulting in accelerated amortization of approximately $1.0 million. In addition, as of March 31, 2020 and under the same accelerated vesting provisions, the Company also recorded approximately $0.7 million of accelerated amortization in connection with the cash portion of the 2019 TIP Tier 1 and Tier 2 awards that were vested on an accelerated basis due to involuntary terminations. During the first quarter of 2020, the activity related to time-based and performance-based RSUs previously granted to eligible employees and the grant date fair value per share related to these RSUs were as follows under the LTIP and 2019 TIP programs, respectively: Time-Based LTIP Performance-Based LTIP RSUs (000's) Weighted-Average Grant Date Fair Value per RSU RSUs (000's) Weighted-Average Grant Date Fair Value per RSU Outstanding as of December 31, 2019 2019 TIP RSUs (b) 200.6 16.44 n/a — LTIP RSUs: 2019 425.6 22.55 425.6 22.55 2018 241.9 19.00 364.7 19.00 2017 (a) 54.0 19.70 110.9 19.70 Total LTIP RSUs 721.5 901.2 Total LTIP and TIP RSUs Outstanding as of December 31, 2019 922.1 901.2 Granted 2019 TIP RSUs Granted (b) — — n/a — LTIP RSUs: 2020 648.4 14.96 648.4 14.96 2019 — — — — 2018 — — — — 2017 (a) — — — — Total LTIP RSUs Granted 648.4 648.4 Vested 2019 TIP RSUs Vested (b)(c) (21.1) 16.44 n/a — LTIP RSUs: 2019 (c) (129.3) 22.55 — — 2018 (c) (103.8) 19.30 — — 2017 (a)(c) (53.4) 19.70 (14.2) 19.70 Total LTIP RSUs Vested (286.5) (14.2) Forfeited/Canceled 2019 TIP RSUs Forfeited/Canceled (b) (25.8) 16.44 n/a — LTIP RSUs: 2019 (68.4) 22.55 (82.8) 22.55 2018 (44.4) 17.33 (82.0) 17.44 2017 (a) (0.6) 19.70 (96.7) 19.70 Total LTIP RSUs Forfeited/Canceled (113.4) (261.5) Outstanding as of March 31, 2020 2019 TIP RSUs 153.7 16.44 n/a — LTIP RSUs: 2020 648.4 14.96 648.4 14.96 2019 227.9 22.55 342.8 22.55 2018 93.7 19.45 282.7 19.46 2017 (a) — — — — Total LTIP RSUs 970.0 1,273.9 Total LTIP and TIP RSUs Outstanding as of March 31, 2020 1,123.7 1,273.9 (a) The 2017 time-based and performance-based LTIP RSUs were recognized over a 2-year service and performance period (i.e., 2018 and 2019). (b) The 2019 TIP provides for RSU awards that are only time-based. (c) Includes acceleration of vesting upon involuntary terminations of 23,888 RSUs under the 2019, 2018 and 2017 LTIPs and of 21,077 RSUs under the 2019 TIP Tier I awards. Time-Based LTIP and TIP RSUs The Company recognized $6.0 million of net compensation expense related to the time-based LTIP and TIP RSUs for the three months ended March 31, 2020. As of March 31, 2020, the Company had $18.3 million of total deferred compensation expense related to non-vested, time-based LTIP and TIP RSUs. The cost is recognized over the vesting period of the awards, as described above. Performance-based LTIP RSUs The Company recognized net compensation expense related to the performance-based LTIP RSUs of $3.3 million for the three months ended March 31, 2020. As of March 31, 2020, the Company had $21.4 million of total deferred compensation expense related to non-vested, performance-based LTIP RSUs. The cost is recognized over the service period of the awards, as described above. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's provision for income taxes represents federal, foreign, state and local income taxes. The Company’s tax provision changes quarterly based on various factors including, but not limited to, the geographical level and mix of earnings; enacted tax legislation; foreign, state and local income taxes; tax audit settlements; and the interaction of various global tax strategies. For the three months ended March 31, 2020, the Company concluded that the use of the cut-off tax rate method was more appropriate than the annual effective tax rate method, because the annual effective tax rate method would not be reliable due to its sensitivity to minimal changes in forecasted annual pre-tax earnings. The Company recorded a benefit from income taxes of $37.2 million (Products Corporation - benefit from income taxes of $36.9 million) for the three months ended March 31, 2020 and a provision for income taxes of $0.1 million (Products Corporation - provision for income taxes of $0.3 million) for the three months ended March 31, 2019, respectively. The $37.3 million decrease (Products Corporation - $37.2 million) in the provision for income taxes in the first quarter of 2020 compared to the first quarter of 2019, was primarily due to: (i) the increased loss from continuing operations before income taxes; (ii) the mix and level of earnings; (iii) the U.S. tax on the Company's foreign earnings; and (iv) the release of uncertain tax positions for the three months ended March 31, 2020, compared to establishment of uncertain tax positions for the three months ended March 31, 2019, partially offset by the net change in valuation allowances recorded for the three months ended March 31, 2020 related to the limitation on the deductibility of interest. The Company's effective tax rate for the three months ended March 31, 2020 was lower than the federal statutory rate of 21% primarily due to the impact of non-deductible impairment charges and the valuation allowance related to the limitation on the deductibility of interest, partially offset by the impact of the "Coronavirus Aid, Relief and Economic Security Act" (the "CARES Act"), signed into law on March 27, 2020 by President Trump, which resulted in a partial release of a valuation allowance on the Company's 2019 federal tax attributes associated with the limitation on the deductibility of interest. The Company's effective tax rate for the three months ended March 31, 2019 was lower than the federal statutory rate of 21%, primarily due to the valuation allowance related to the limitation on the deductibility of interest and the U.S. tax on the Company's foreign earnings. The CARES Act, among other things, includes provisions providing for refundable payroll tax credits, the deferral of employer social security tax payments, acceleration of alternative minimum tax credit refunds and the increase of the net interest deduction limitation from 30% to 50%. The Company continues to examine the impact that the CARES Act may have on its results of operations, financial condition and/or financial statement disclosures. The Company expects that its tax provision and effective tax rate in any individual quarter and year-to-date period will vary and may not be indicative of the Company's tax provision and effective tax rate for the full year. In assessing the recoverability of its deferred tax assets, the Company continually evaluates the available positive and negative evidence to assess the amount of deferred tax assets for which it is more likely than not to realize a benefit. For any deferred tax asset in excess of the amount for which it is more likely than not that the Company will realize a benefit, the Company establishes a valuation allowance. A valuation allowance is a non-cash charge, and it in no way limits the Company's ability to utilize its deferred tax assets, including its ability to utilize tax loss and credit carryforward amounts. As of March 31, 2020, the Company concluded that, based on the weight of the available positive and negative evidence, it does not require a valuation allowance on its federal deferred tax assets, other than those associated with the limitation on the deductibility of interest. The Company does have a valuation allowance on deferred tax assets associated with its activity in certain U.S. states and foreign jurisdictions. These conclusions regarding the establishment of valuation allowances on the Company's deferred tax assets as of March 31, 2020 are consistent with the Company's conclusions on such matters as of the end of 2019. However, if the Company does not generate sufficient taxable income in future periods, its deferred tax assets may not be realizable on a more-likely-than-not basis. In such event, the Company may be required to establish an additional valuation allowance against its deferred tax assets in future periods, which would materially increase the Company's tax expense in the period in which the allowance is recognized and would adversely impact the Company's results of operations and statement of financial condition in such period. The Company will continue to monitor the circumstances that would require it to establish an additional valuation allowance on its deferred tax assets. Accordingly, depending on future evidence that may become available, the Company's assessments regarding its valuation allowance position may change. For further information, see Note 14, "Income Taxes," to the Consolidated Financial Statements in the Company's 2019 Form 10-K and Item 1A. “Risk Factors-Uncertainties in the interpretation and application of the U.S. income tax provisions could have a material impact on the Company's financial condition, results of operations and/or cash flows” in the Company's 2019 Form 10-K. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS A roll-forward of the Company's accumulated other comprehensive loss as of March 31, 2020 is as follows: Foreign Currency Translation Actuarial (Loss) Gain on Post-retirement Benefits Other Accumulated Other Comprehensive Loss Balance at January 1, 2020 $ (27.3) $ (219.8) $ (0.3) $ (247.4) Foreign currency translation adjustment (5.2) — — (5.2) Amortization of pension related costs, net of tax of $(0.3) million (a) — 2.5 — 2.5 Other comprehensive (loss) gain $ (5.2) $ 2.5 $ — $ (2.7) Balance at March 31, 2020 $ (32.5) $ (217.3) $ (0.3) $ (250.1) (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 10, "Pension and Post-retirement Benefits," for further information on the Company’s pension and other post-retirement plans. For the three months ended March 31, 2020 and 2019, the Company did not have any activity related to financial instruments. |
SEGMENT DATA AND RELATED INFORM
SEGMENT DATA AND RELATED INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT DATA AND RELATED INFORMATION | SEGMENT DATA AND RELATED INFORMATION Operating Segments Operating segments include components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the Company's "Chief Executive Officer") in deciding how to allocate resources and in assessing the Company's performance. As a result of the similarities in the procurement, manufacturing and distribution processes for the Company’s products, much of the information provided in the Unaudited Consolidated Financial Statements and provided in the segment table below is similar to, or the same as, that reviewed on a regular basis by the Company's Chief Executive Officer. As of March 31, 2020, the Company’s operations are organized into the following reportable segments: • Revlon - The Revlon segment is comprised of the Company's flagship Revlon brands. Revlon segment products are primarily marketed, distributed and sold in the mass retail channel, large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, e-commerce sites, television shopping, department stores, professional hair and nail salons, one-stop shopping beauty retailers and specialty cosmetic stores in the U.S. and internationally under brands such as Revlon in color cosmetics; Revlon ColorSilk and Revlon Professional in hair color; and Revlon in beauty tools. • Elizabeth Arden - The Elizabeth Arden segment is comprised of the Company's Elizabeth Arden branded products. The Elizabeth Arden segment markets, distributes and sells fragrances, skin care and color cosmetics primarily to prestige retailers, department and specialty stores, perfumeries, boutiques, e-commerce sites, the mass retail channel, travel retailers and distributors, as well as direct sales to consumers via its Elizabeth Arden branded retail stores and elizabetharden.com e-commerce website, in the U.S. and internationally, under brands such as Elizabeth Arden Ceramide, Prevage, Eight Hour, SUPERSTART, Visible Difference and Skin Illuminating in the Elizabeth Arden skin care brands; and Elizabeth Arden White Tea, Elizabeth Arden Red Door, Elizabeth Arden 5th Avenue and Elizabeth Arden Green Tea in Elizabeth Arden fragrances. • Portfolio - The Company’s Portfolio segment markets, distributes and sells a comprehensive line of premium, specialty and mass products primarily to the mass retail channel, hair and nail salons and professional salon distributors in the U.S. and internationally and large volume retailers, specialty and department stores under brands such as Almay and SinfulColors in color cosmetics; American Crew in men's grooming products (which are also sold direct-to-consumer on its americancrew.com website); CND in nail polishes, gel nail color and nail enhancements; Cutex nail care products; and Mitchum in anti-perspirant deodorants. The Portfolio segment also includes a multi-cultural hair care line consisting of Creme of Nature hair care products, which are sold in both professional salons and in large volume retailers and other retailers, primarily in the U.S.; and a hair color line under the Llongueras brand (licensed from a third party) that is sold in the mass retail channel, large volume retailers and other retailers, primarily in Spain. • Fragrances - The Fragrances segment includes the development, marketing and distribution of certain owned and licensed fragrances as well as the distribution of prestige fragrance brands owned by third parties. These products are typically sold to retailers in the U.S. and internationally, including prestige retailers, specialty stores, e-commerce sites, the mass retail channel, travel retailers and other international retailers. The owned and licensed fragrances include brands such as : (i) Juicy Couture (which are also sold direct-to-consumer on its juicycouturebeauty.com website), John Varvatos and AllSaints in prestige fragrances; (ii) Britney Spears , Elizabeth Taylor , Christina Aguilera , Jennifer Aniston and Mariah Carey in celebrity fragrances; and (iii) Curve , Giorgio Beverly Hills , Ed Hardy , Charlie , Lucky Brand , ‹PS› (logo of former Paul Sebastian brand), Alfred Sung , Halston , Geoffrey Beene and White Diamonds in mass fragrances. The Company's management evaluates segment profit for each of the Company's reportable segments. The Company allocates corporate expenses to each reportable segment to arrive at segment profit, and these expenses are included in the internal measure of segment operating performance. The Company defines segment profit 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. Segment profit also excludes the impact of certain items that are not directly attributable to the reportable segments' underlying operating performance. Such items are shown below in the table reconciling segment profit to consolidated income from continuing operations before income taxes. The Company does not have any material inter-segment sales. The accounting policies for each of the reportable segments are the same as those described in Note 1, "Description of Business and Summary of Significant Accounting Policies." The Company's assets and liabilities are managed centrally and are reported internally in the same manner as the Unaudited Consolidated Financial Statements; thus, no additional information regarding assets and liabilities of the Company’s reportable segments is produced for the Company's Chief Executive Officer or included in these Unaudited Consolidated Financial Statements. The following table is a comparative summary of the Company’s net sales and segment profit for Revlon and Products Corporation by reportable segment for the periods presented. Revlon, Inc. Three Months Ended March 31, 2020 2019 Segment Net Sales: Revlon $ 181.8 $ 247.3 Elizabeth Arden 95.2 111.4 Portfolio 110.0 117.2 Fragrances 66.0 77.3 Total $ 453.0 $ 553.2 Segment Profit: Revlon $ 15.6 $ 25.6 Elizabeth Arden 4.2 1.9 Portfolio 7.2 4.5 Fragrances 1.4 6.8 Total $ 28.4 $ 38.8 Reconciliation: Total Segment Profit $ 28.4 $ 38.8 Less: Depreciation and amortization 36.8 47.0 Non-cash stock compensation expense 2.4 0.4 Non-Operating items: Restructuring and related charges 34.4 12.1 Acquisition, integration and divestiture costs 2.1 0.6 Loss on divested assets 0.8 — Financial control remediation actions and related charges 2.1 2.0 Excessive coupon redemptions 4.2 — COVID-19 charges 7.5 — Impairment charge 124.3 — Operating loss (186.2) (23.3) Less: Interest Expense 48.4 47.7 Amortization of debt issuance costs 4.0 3.2 Foreign currency losses, net 16.6 0.2 Miscellaneous, net (4.1) 1.3 Loss from continuing operations before income taxes $ (251.1) $ (75.7) Products Corporation Three Months Ended March 31, 2020 2019 Segment Net Sales: Revlon $ 181.8 $ 247.3 Elizabeth Arden 95.2 111.4 Portfolio 110.0 117.2 Fragrances 66.0 77.3 Total $ 453.0 $ 553.2 Segment Profit: Revlon $ 16.4 $ 26.4 Elizabeth Arden 4.6 2.2 Portfolio 7.7 4.9 Fragrances 1.7 7.1 Total $ 30.4 $ 40.6 Reconciliation: Total Segment Profit $ 30.4 $ 40.6 Less: Depreciation and amortization 36.8 47.0 Non-cash stock compensation expense 2.4 0.4 Non-Operating items: Restructuring and related charges 34.4 12.1 Acquisition, integration and divestiture costs 2.1 0.6 Loss on divested assets 0.8 — Financial control remediation actions and related charges 2.1 2.0 Excessive coupon redemptions 4.2 — COVID-19 charges 7.5 — Impairment charge 124.3 — Operating income (loss) (184.2) (21.5) Less: Interest Expense 48.4 47.7 Amortization of debt issuance costs 4.0 3.2 Foreign currency losses, net 16.6 0.2 Miscellaneous, net (4.1) 1.3 Loss from continuing operations before income taxes $ (249.1) $ (73.9) As of March 31, 2020, the Company had operations established in approximately 25 countries outside of the U.S. and its products are sold throughout the world. Generally, net sales by geographic area are presented by attributing revenues from external customers on the basis of where the products are sold. The following tables present the Company's segment net sales by geography and total net sales by classes of similar products for the periods presented: Three Months Ended March 31, 2020 Revlon Elizabeth Arden Portfolio Fragrances Total Geographic Area (1) : Net Sales North America $ 99.1 $ 21.4 $ 70.8 $ 42.2 $ 233.5 EMEA* 37.3 25.9 30.6 16.3 110.1 Asia 14.7 43.1 0.5 3.4 61.7 Latin America* 14.0 0.8 4.9 0.8 20.5 Pacific* 16.7 4.0 3.2 3.3 27.2 $ 181.8 $ 95.2 $ 110.0 $ 66.0 $ 453.0 Three Months Ended March 31, 2019 Revlon Elizabeth Arden Portfolio Fragrances Total Geographic Area (1) : Net Sales North America 133.2 28.2 70.1 47.2 $ 278.7 EMEA* 53.7 27.9 37.8 20.2 139.6 Asia 23.9 47.7 0.8 4.7 77.1 Latin America* 15.7 2.8 5.2 2.2 25.9 Pacific* 20.8 4.8 3.3 3.0 31.9 $ 247.3 $ 111.4 $ 117.2 $ 77.3 $ 553.2 (1) During the first quarter of 2020, the Company changed the presentation of its Travel Retail business, which previously was included in its EMEA Region, as it is currently presented within each geographic area in accordance with the location of the retail customer. Travel Retail sales represented approximately 2.6% and 4.7% of the Company's total Net Sales for the first quarter of 2020 and 2019, respectively. Prior year amounts have been updated to reflect current year presentation. * The EMEA region includes Europe, the Middle East and Africa; the Latin America region includes Mexico; and the Pacific region includes Australia and New Zealand. Three Months Ended March 31, 2020 2019 Classes of similar products: Net sales: Color cosmetics $ 130.0 29% $ 202.8 37% Fragrance 94.9 21% 110.3 20% Hair care 116.7 26% 128.7 23% Beauty care 46.1 10% 41.1 7% Skin care 65.3 14% 70.3 13% $ 453.0 $ 553.2 The following table presents the Company's long-lived assets by geographic area as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Long-lived assets, net: United States $ 1,264.2 83% $ 1,414.0 83% International 267.2 17% 280.1 17% $ 1,531.4 $ 1,694.1 |
REVLON, INC. BASIC AND DILUTED
REVLON, INC. BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
REVLON, INC. BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE | REVLON, INC. BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE Shares used in calculating Revlon's basic loss per share are computed using the weighted-average number of Revlon's shares of Class A Common Stock outstanding during each period. Shares used in diluted loss per share include the dilutive effect of unvested restricted stock, LTIP RSUs and TIP RSUs under the Company’s Stock Plan using the treasury stock method. For the respective periods ended March 31, 2020 and 2019, Revlon's diluted loss per share equals basic loss per share, as the assumed vesting of restricted stock, LTIP RSUs and TIP RSUs would have an anti-dilutive effect. As of March 31, 2020 and 2019, there were no outstanding stock options under the Company's Stock Plan. See Note 11, "Stock Compensation Plan," for information on the LTIP and TIP RSUs. Following are the components of Revlon's basic and diluted loss per common share for the periods presented: Three months ended March 31, 2020 2019 Numerator: Loss from continuing operations, net of taxes $ (213.9) $ (75.8) Income from discontinued operations, net of taxes — 0.7 Net loss $ (213.9) $ (75.1) Denominator: Weighted-average common shares outstanding – Basic 53,167,453 52,913,388 Effect of dilutive restricted stock and RSUs — — Weighted-average common shares outstanding – Diluted 53,167,453 52,913,388 Basic and Diluted (loss) earnings per common share: Continuing operations $ (4.02) $ (1.43) Discontinued operations — 0.01 Net loss per common share $ (4.02) $ (1.42) Unvested restricted stock and RSUs under the Stock Plan (a) 300,787 571,069 (a) These are outstanding common stock equivalents that were not included in the computation of Revlon's diluted earnings per common share because their inclusion would have had an anti-dilutive effect. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
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, prospects, results of operations, financial condition and/or cash flows. 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 | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Reimbursement Agreements Revlon, Products Corporation and MacAndrews & Forbes have entered into reimbursement agreements (the "Reimbursement Agreements") pursuant to which: (i) MacAndrews & Forbes is obligated to provide (directly or through its affiliates) certain professional and administrative services, including, without limitation, employees, to the Company, and to purchase services from third-party providers, such as insurance, legal, accounting and air transportation services, on behalf of the Company, to the extent requested by Products Corporation; and (ii) Products Corporation is obligated to provide certain professional and administrative services, including, without limitation, employees, to MacAndrews & Forbes and to purchase services from third-party providers, such as insurance, legal and accounting services, on behalf of MacAndrews & Forbes, to the extent requested by MacAndrews & Forbes, provided that in each case the performance of such services does not cause an unreasonable burden to MacAndrews & Forbes or Products Corporation, as the case may be. The Company reimburses MacAndrews & Forbes for the allocable costs of the services that MacAndrews & Forbes purchases for or provides to the Company and for the reasonable out-of-pocket expenses that MacAndrews & Forbes incurs in connection with the provision of such services. MacAndrews & Forbes reimburses Products Corporation for the allocable costs of the services that Products Corporation purchases for or provides to MacAndrews & Forbes and for the reasonable out-of-pocket expenses incurred by Products Corporation in connection with the purchase or provision of such services. Each of the Company, on the one hand, and MacAndrews & Forbes, on the other, has agreed to indemnify the other party for losses arising out of the services provided by it under the Reimbursement Agreements, other than losses resulting from its willful misconduct or gross negligence. The Reimbursement Agreements may be terminated by either party on 90 days' notice. The Company does not intend to request services under the Reimbursement Agreements unless their costs would be at least as favorable to the Company as could be obtained from unaffiliated third parties. The Company participates in MacAndrews & Forbes' directors and officers liability insurance program (the "D&O Insurance Program"), as well as its other insurance coverages, such as property damage, business interruption, liability and other coverages, which cover the Company, as well as MacAndrews & Forbes and its subsidiaries. The limits of coverage for certain of the policies are available on an aggregate basis for losses to any or all of the participating companies and their respective directors and officers. The Company reimburses MacAndrews & Forbes from time-to-time for their allocable portion of the premiums for such coverage or the Company pays the insurers directly, which premiums the Company believes are more favorable than the premiums that the Company would pay were it to secure stand-alone coverage. Any amounts paid by the Company directly to MacAndrews & Forbes in respect of premiums are included in the amounts paid under the Reimbursement Agreements. The net activity related to services purchased under the Reimbursement Agreements during the three months ended March 31, 2020 and 2019 was $0.3 million income and nil, respectively. As of March 31, 2020 and December 31, 2019, a receivable balance of $0.3 million from, and a payable balance of $0.2 million to, MacAndrews & Forbes, respectively, were included in the Company's Unaudited Consolidated Balance Sheet for transactions subject to the Reimbursement Agreements. Amended 2019 Senior Line of Credit Facility See Note 9, "Debt," in the Company's 2019 Form 10-K regarding the Amended 2019 Senior Line of Credit Agreement between Products Corporation and MacAndrews & Forbes Group, LLC. Other During the three months ended March 31, 2020 and 2019, the Company engaged several companies in which MacAndrews & Forbes had a controlling interest to provide the Company with various ordinary course business services. These services included processing approximately $13.0 million and $2.4 million of coupon redemptions for the Company's retail customers for the three months ended March 31, 2020 and 2019, respectively, for which the Company incurred fees of approximately $0.3 million and $0.1 million for the three months ended March 31, 2020 and 2019, respectively, and other similar advertising, coupon redemption and raw material supply services, for which the Company had net payables of approximately $0.2 million and net receivables aggregating to approximately $0.2 million for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020 and December 31, 2019, a payable balance of approximately $6.9 million and $5.5 million, respectively, were included in the Company's Consolidated Balance Sheet for the aforementioned coupon redemption services. The Company believes that its engagement of each of these affiliates was on arm's length terms, taking into account each firm's expertise in its respective field, and that the fees paid or received were at least as favorable as those available from unaffiliated parties. In April 2020, in connection with the organizational measures taken by the Company in response to COVID-19, the Company and Ms. Debbie Perelman, the Company’s President and Chief Executive Officer and a member of Revlon’s and Products Corporation’s Boards of Directors, agreed in writing that, effective on or about April 11, 2020, Ms. Perelman’s base salary would be reduced by 40% to $675,000, less all applicable withholdings and deductions, during the span of COVID-19. The Chairman of the Compensation Committee has the authority to reinstate Ms. Perelman’s base salary in effect immediately prior to such amendment at any time he deems appropriate, in his sole discretion, exercised reasonably. Also in connection with such COVID-19 measures, in March 2020, the Company agreed in writing with each of Ms. Mitra Hormozi and Mr. E. Scott Beattie, each of whom serve on Revlon’s Board of Directors, that, effective April 1, 2020, each of them will suspend providing advisory services to the Company, and their consulting fees will also be suspended. The Company’s CEO may reinstate their advisory services and payment of their consulting fees at the appropriate time, in her sole discretion, exercised reasonably. As previously disclosed in the Company’s 2019 Form 10-K, prior to this suspension, in March 2020, the Company and Mr. Beattie entered into an Amended and Restated Consulting Agreement (the “2020 Consulting Agreement”), pursuant to which he was scheduled to serve as Senior Advisor to the Company’s CEO for an additional year, subject to automatic 1-year renewals, unless either party elects not to renew, and subject to certain standard termination rights, in consideration for which, the Company would pay Mr. Beattie a fee of $250,000 per year, supplemental to the Board’s compensation program for non-employee directors. The foregoing description of the 2020 Consulting Agreement is qualified in its entirety by reference to the full text of such agreement, a copy of which is attached to this Form 10-Q as Exhibit 10.6. |
PRODUCTS CORPORATION AND SUBSID
PRODUCTS CORPORATION AND SUBSIDIARIES GUARANTOR FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
PRODUCTS CORPORATION AND SUBSIDIARIES GUARANTOR FINANCIAL INFORMATION | PRODUCTS CORPORATION AND SUBSIDIARIES GUARANTOR FINANCIAL INFORMATION Products Corporation's 5.75% Senior Notes and 6.25% Senior Notes are fully and unconditionally guaranteed on a senior basis by certain of Products Corporation’s direct and indirect wholly-owned domestic subsidiaries (the "5.75% Senior Notes Guarantors" and the "6.25% Senior Notes Guarantors," respectively, and together the "Guarantor Subsidiaries"). The following Condensed Consolidating Financial Statements present the financial information as of March 31, 2020 and December 31, 2019, and for each of the three months March 31, 2020 and 2019 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 5.75% Senior Notes and 6.25% Senior Notes (the "Non-Guarantor Subsidiaries") on a stand-alone basis; and (iv) Products Corporation, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis. The Condensed Consolidating Financial Statements are presented on the equity method, under which the investments in subsidiaries are recorded at cost and adjusted to the applicable share of the subsidiary's cumulative results of operations, capital contributions, distributions and other equity changes. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Products Corporation and Subsidiaries Condensed Consolidating Balance Sheets As of March 31, 2020 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 3.1 $ 2.4 $ 57.3 $ — $ 62.8 Trade receivables, less allowances for doubtful accounts 74.0 72.4 180.1 — 326.5 Inventories 146.5 157.0 176.3 — 479.8 Prepaid expenses and other 225.3 33.7 70.3 — 329.3 Intercompany receivables 3,021.1 3,013.0 476.8 (6,510.9) — Investment in subsidiaries 1,557.1 12.8 — (1,569.9) — Property, plant and equipment, net 200.4 77.4 105.3 — 383.1 Deferred income taxes 179.1 (17.2) 29.8 — 191.7 Goodwill 60.1 264.0 249.6 — 573.7 Intangible assets, net (11.9) 340.3 128.2 — 456.6 Other assets 69.2 15.3 33.5 — 118.0 Total assets $ 5,524.0 $ 3,971.1 $ 1,507.2 $ (8,080.8) $ 2,921.5 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 2.9 $ — $ 2.9 Current portion of long-term debt 856.0 — 0.1 — 856.1 Accounts payable 110.6 45.1 97.6 — 253.3 Accrued expenses and other 192.6 6.0 178.7 — 377.3 Intercompany payables 3,194.3 2,819.3 497.3 (6,510.9) — Long-term debt 2,322.3 — 83.2 — 2,405.5 Other long-term liabilities 176.6 113.7 38.0 — 328.3 Total liabilities 6,852.4 2,984.1 897.8 (6,510.9) 4,223.4 Stockholder’s (deficiency) equity (1,328.4) 987.0 609.4 (1,569.9) (1,301.9) Total liabilities and stockholder’s deficiency $ 5,524.0 $ 3,971.1 $ 1,507.2 $ (8,080.8) $ 2,921.5 Products Corporation and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2019 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 0.8 $ 6.4 $ 97.1 $ — $ 104.3 Trade receivables, less allowances for doubtful accounts 95.5 92.3 235.6 — 423.4 Inventories 131.0 151.5 165.9 — 448.4 Prepaid expenses and other 219.7 26.4 46.5 — 292.6 Intercompany receivables 2,857.7 2,854.6 452.7 (6,165.0) — Investment in subsidiaries 1,598.3 30.7 — (1,629.0) — Property, plant and equipment, net 208.7 89.5 110.4 — 408.6 Deferred income taxes 165.0 (37.8) 30.9 — 158.1 Goodwill 159.9 264.0 249.8 — 673.7 Intangible assets, net 13.0 346.9 130.8 — 490.7 Other assets 67.8 16.2 37.1 — 121.1 Total assets $ 5,517.4 $ 3,840.7 $ 1,556.8 $ (7,794.0) $ 3,120.9 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 2.2 $ — $ 2.2 Current portion of long-term debt 287.9 — 0.1 — 288.0 Accounts payable 108.4 39.9 103.5 — 251.8 Accrued expenses and other 124.1 70.0 224.1 — 418.2 Intercompany payables 3,030.3 2,668.7 466.0 (6,165.0) — Long-term debt 2,822.2 — 84.0 — 2,906.2 Other long-term liabilities 220.4 118.2 5.3 — 343.9 Total liabilities 6,593.3 2,896.8 885.2 (6,165.0) 4,210.3 Stockholder’s (deficiency) equity (1,075.9) 943.9 671.6 (1,629.0) (1,089.4) Total liabilities and stockholder’s deficiency $ 5,517.4 $ 3,840.7 $ 1,556.8 $ (7,794.0) $ 3,120.9 Products Corporation and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income Three Months Ended March 31, 2020 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 116.4 $ 112.4 $ 224.2 $ — $ 453.0 Cost of sales 58.4 54.4 85.0 — 197.8 Gross profit 58.0 58.0 139.2 — 255.2 Selling, general and administrative expenses 104.4 71.0 112.0 — 287.4 Acquisition, integration and divestiture costs 1.1 0.5 0.5 — 2.1 Restructuring charges and other, net 23.6 1.3 (0.1) — 24.8 Impairment charges 124.3 — — — 124.3 Loss on divested assets 0.8 — — — 0.8 Operating (loss) income (196.2) (14.8) 26.8 — (184.2) Other (income) expense: Intercompany interest, net (2.8) 0.6 2.2 — — Interest expense 46.5 — 1.9 — 48.4 Amortization of debt issuance costs 4.0 — — — 4.0 Foreign currency losses, net (5.5) 1.9 20.2 — 16.6 Miscellaneous, net (23.9) (9.2) 29.0 — (4.1) Other expense (income), net 18.3 (6.7) 53.3 — 64.9 Loss from continuing operations before income taxes (214.5) (8.1) (26.5) — (249.1) Benefit from for income taxes (16.3) (20.2) (0.4) — (36.9) Loss from continuing operations, net of taxes (198.2) 12.1 (26.1) — (212.2) Income from discontinued operations, net of taxes — — — — — Equity in (income) loss of subsidiaries (34.1) (20.0) — 54.1 — Net (loss) income $ (232.3) $ (7.9) $ (26.1) $ 54.1 $ (212.2) Other comprehensive (loss) income (2.7) 6.5 (8.8) 2.3 (2.7) Total comprehensive (loss) income $ (235.0) $ (1.4) $ (34.9) $ 56.4 $ (214.9) Products Corporation and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income Three Months Ended March 31, 2019 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 155.5 $ 129.3 $ 271.2 $ (2.8) $ 553.2 Cost of sales 68.0 65.1 107.5 (2.8) 237.8 Gross profit 87.5 64.2 163.7 — 315.4 Selling, general and administrative expenses 129.7 75.1 126.0 — 330.8 Acquisition, integration and divestiture costs 0.5 0.1 — — 0.6 Restructuring charges and other, net 1.6 2.1 1.8 — 5.5 Operating (loss) income (44.3) (13.1) 35.9 — (21.5) Other (income) expenses: Intercompany interest, net (1.3) 0.7 0.6 — — Interest expense 45.9 — 1.8 — 47.7 Amortization of debt issuance costs 3.2 — — — 3.2 Foreign currency losses, net (1.5) — 1.7 — 0.2 Miscellaneous, net (7.9) (13.5) 22.7 — 1.3 Other expense (income), net 38.4 (12.8) 26.8 — 52.4 (Loss) income from continuing operations before income taxes (82.7) (0.3) 9.1 — (73.9) (Benefit from) provision for income taxes (1.8) 0.5 1.6 — 0.3 (Loss) income from continuing operations, net of taxes (80.9) (0.8) 7.5 — (74.2) Loss from discontinued operations, net of taxes — — 0.7 — 0.7 Equity in loss (income) of subsidiaries 7.4 5.4 — (12.8) — Net (loss) income $ (73.5) $ 4.6 $ 8.2 $ (12.8) $ (73.5) Other comprehensive (loss) income 0.9 (0.1) 0.6 (0.5) 0.9 Total comprehensive (loss) income $ (72.6) $ 4.5 $ 8.8 $ (13.3) $ (72.6) Products Corporation and Subsidiaries Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2020 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash (used in) provided by operating activities $ (57.7) $ 3.1 $ (23.0) $ — $ (77.6) CASH FLOWS FROM INVESTING ACTIVITIES: Net cash (used in) provided by investing activities (1.8) (0.1) 0.1 — (1.8) CASH FLOWS FROM FINANCING ACTIVITIES: Net decrease in short-term borrowings and overdraft (2.1) (4.8) 0.5 — (6.4) Net borrowings under the Amended 2016 Revolving Credit Facility 69.1 — — — 69.1 Repayments under the 2016 Term Loan Facility (4.5) — — — (4.5) Payment of financing costs (0.3) — — — (0.3) Tax withholdings related to net share settlements of restricted stock and RSUs (0.4) — — — (0.4) Other financing activities (0.1) — — — (0.1) Net cash provided by (used in) financing activities 61.7 (4.8) 0.5 — 57.4 Effect of exchange rate changes on cash, cash equivalents and restricted cash — (2.1) (1.2) — (3.3) Net increase (decrease) in cash, cash equivalents and restricted cash 2.2 (3.9) (23.6) — (25.3) Cash, cash equivalents and restricted cash at beginning of period $ 1.0 $ 6.4 $ 97.2 $ — $ 104.5 Cash, cash equivalents and restricted cash at end of period $ 3.2 $ 2.5 $ 73.6 $ — $ 79.2 Products Corporation and Subsidiaries Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2019 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash used in operating activities $ (24.0) $ 2.7 $ (7.1) $ — $ (28.4) CASH FLOWS FROM INVESTING ACTIVITIES: Net cash used in investing activities (3.4) — (2.4) — (5.8) CASH FLOWS FROM FINANCING ACTIVITIES: Net decrease in short-term borrowings and overdraft (12.5) (4.2) (0.5) — (17.2) Repayments under the 2016 Term Loan Facility (4.5) — — — (4.5) Net borrowings under the Amended 2016 Revolving Credit Facility 40.6 — — — 40.6 Payments of financing costs (0.3) — (0.6) — (0.9) Tax withholdings related to net share settlements of restricted stock and RSUs (1.6) — — — (1.6) Other financing activities (0.2) — — — (0.2) Net cash provided by financing activities 21.5 (4.2) (1.1) — 16.2 Effect of exchange rate changes on cash, cash equivalents and restricted cash — 0.1 0.2 — 0.3 Net decrease in cash, cash equivalents and restricted cash (5.9) (1.4) (10.4) — (17.7) Cash, cash equivalents and restricted cash at beginning of period $ 7.2 $ 6.6 $ 73.7 $ — 87.5 Cash, cash equivalents and restricted cash at end of period $ 1.3 $ 5.2 $ 63.3 $ — $ 69.8 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Amendment of Revolving Credit Agreement; Extension of Senior Secured First In, Last Out Tranche B to Revolving Credit Facility On April 17, 2020 (the “FILO Closing Date”), Products Corporation, Revlon and certain of their subsidiaries entered into Amendment No. 3 (“Amendment No. 3”) of Products Corporation’s asset-based revolving credit agreement with Citibank, N.A., acting as administrative agent, collateral agent, issuing lender, local fronting lender and swingline lender and the other issuing lenders (as amended by Amendment No. 1, dated as of April 17, 2018, and Amendment No. 2, dated as of March 6, 2019, the “Existing Revolving Credit Agreement,” and as further amended by Amendment No. 3, the “Amended Revolving Credit Agreement”) in respect of Products Corporation’s existing senior secured asset-based revolving credit facility (as amended by Amendment No. 1 and Amendment No. 2, the “Existing Revolving Credit Facility” and as in effect after Amendment No. 3, the “Amended Revolving Credit Facility”). Pursuant to the terms of Amendment No. 3, the maturity date applicable to $36.3 million of loans under the $41.5 million senior secured first in, last out Tranche B of the Existing Revolving Credit Facility (the “FILO Tranche”) was extended from April 17, 2020 to May 17, 2020 (the “Extended Maturity Date”). The remaining approximately $5.2 million of FILO Tranche loans were repaid as of the FILO Closing Date. The Existing Revolving Credit Agreement permits restricted payments subject to certain conditions and limitations. Amendment No. 3 prohibits any restricted payments from the FILO Closing Date until the earlier of the Extended Maturity Date and the date the FILO Tranche is terminated and repaid or refinanced in full, subject to certain exceptions for intercompany restricted payments. The Existing Revolving Credit Agreement also permits Products Corporation and its restricted subsidiaries to incur additional debt, make investments or restricted payments, dispose of assets or prepay junior lien indebtedness, provided that certain “payment conditions” are satisfied. Amendment No. 3, among other things, prohibits such actions made in reliance on the payment conditions (other than investments) from the FILO Closing Date until the earlier of the Extended Maturity Date and the date the FILO Tranche is terminated and repaid or refinanced in full. In addition, Amendment No. 3 increases the applicable interest margin for the FILO Tranche by 0.75%, subject to a LIBOR floor of 0.75%. Commitment Letter with Ad Hoc Group of Term Loan Lenders On April 14, 2020, Products Corporation entered into a binding commitment letter (the “AHG Commitment Letter”) with certain financial institutions (the “AHG Commitment Parties”) that are lenders or the affiliates of lenders (the “Ad Hoc Group” or the “AHG”) under Products Corporation’s 2016 Term Loan Facility. Pursuant to the AHG Commitment Letter and subject to the terms and conditions set forth therein, the AHG Commitment Parties have committed to provide the Company with senior secured term loan facilities (the “AHG Facilities” and, together with the use of proceeds thereof and the Extension Amendment (as defined below), the “AHG 2020 Refinancing Transactions”). See “Consummation of 2020 Refinancing Transactions” below for information on the May 7, 2020 closing of the AHG 2020 Refinancing Transactions. Under the AHG Commitment Letter, the funding of the AHG Facilities was contingent on the satisfaction of a limited number of customary conditions, including the execution of definitive loan documentation for the AHG Facilities and the Extension Amendment, absence of material adverse change and certain other customary conditions. In addition, the funding of the AHG Facilities was contingent on Products Corporation receiving the consent of lenders holding more than 50% of the loans outstanding under the 2016 Term Loan Facility. The commitments under the AHG Commitment Letter were available to the Company until May 14, 2020. Principal and Maturity: The AHG Facilities will consist of (i) a senior secured term loan facility in a principal amount of up to $850 million (the “AHG New BrandCo Facility”), (ii) a senior secured term loan facility in a principal amount of up to $950 million (the “AHG Roll-up BrandCo Facility”) and (iii) a senior secured term loan facility in a principal amount to be based on participation in the Extension Amendment as further described below (the “AHG Junior Roll-up BrandCo Facility”). Jefferies Finance LLC will act as administrative agent and collateral agent in respect of the AHG Facilities and Jefferies LLC will act as sole lead arranger and sole bookrunner in respect of the AHG Facilities. On April 27, 2020, the parties amended the AHG Commitment Letter to increase the AHG New BrandCo Facility to $880 million, consisting of $815 million available on the closing date and $65 million available, at the Company’s sole option, as a single delayed borrowing on or after 10 days after the closing date until the date that is 15 business days after the closing date, the proceeds of which will be used to repay loans outstanding under the 2020 Incremental Facility (as hereinafter defined). The proceeds of the AHG New BrandCo Facility will be used (i) to repay in full indebtedness outstanding under Products Corporation’s 2019 Term Loan Facility (the “AHG Refinancing”), (ii) to pay fees and expenses in connection with the AHG Facilities and the AHG Refinancing and (iii) to the extent of any excess, for general corporate purposes, including repurchasing and retiring Products Corporation’s outstanding 5.75% Senior Notes at prevailing market prices. The proceeds of the AHG Roll-up BrandCo Facility will be used to purchase an equivalent amount of term loans under the 2016 Term Loan Facility held by the lenders participating in the AHG New BrandCo Facility. Lenders under the 2016 Term Loan Facility who did not participate in the AHG New BrandCo Facility and the AHG Roll-up BrandCo Facility, but who nonetheless consented to the Extension Amendment were entitled to participate in the AHG Junior Roll-up BrandCo Facility with respect to a portion of their holdings of loans under the 2016 Term Loan Facility. The proceeds of the AHG Junior Roll-up BrandCo Facility will be used to purchase an equivalent amount of term loans under the 2016 Term Loan Facility held by such lenders. The AHG Facilities will mature on June 30, 2025, subject to a springing maturity 91 days prior to the maturity date of Products Corporation’s 6.25% Senior Notes due August 1, 2024 if, on such date, $100 million or more in aggregate principal amount of the 6.25% Senior Notes remains outstanding. Borrower, Guarantees and Security: The borrower under the AHG Facilities will be Products Corporation, and the AHG Facilities will be guaranteed by certain indirect foreign subsidiaries (or the domestic subsidiaries of foreign subsidiaries) of Products Corporation (the “AHG BrandCos”), which will hold certain intellectual property assets related to the Elizabeth Arden and American Crew brands, certain other portfolio brands and certain owned fragrance brands (the “AHG Specified Brand Assets”). The AHG BrandCos will not guarantee the 2016 Term Loan Facility, but all guarantors of the 2016 Term Loan Facility will guarantee the AHG Facilities. All of the assets of the AHG BrandCos (including the equity of the AHG BrandCos) will be pledged to secure the AHG New BrandCo Facility on a first-priority basis, the AHG Roll-up BrandCo Facility on a second-priority basis and the AHG Junior Roll-up BrandCo Facility on a third-priority basis and will not secure the 2016 Term Loan Facility, but the AHG Facilities will be secured on a pari passu basis by the assets securing the 2016 Term Loan Facility. Contribution and License Agreements: In connection with the pledge of the AHG Specified Brand Assets, Products Corporation will enter into intercompany arrangements pursuant to which the AHG Specified Brand Assets will be contributed to the AHG BrandCos. Products Corporation and/or its operating subsidiaries will enter into license and royalty arrangements on arm’s length terms with the relevant AHG BrandCos to provide for their continued use of the AHG Specified Brand Assets during the term of the AHG Facilities. Interest and Fees: Interest will accrue on the AHG Facilities at a rate per annum of adjusted LIBOR plus a fixed margin. Products Corporation will pay customary fees and expenses in connection with the AHG Facilities. Affirmative and Negative Covenants: The AHG Facilities will contain certain affirmative and negative covenants that, among other things, limit Products Corporation and its restricted subsidiaries ability to: (i) incur additional debt; (ii) incur liens; (iii) sell, transfer or dispose of assets; (iv) make investments; (v) make dividends and distributions on, or repurchases of, equity; (vi) make prepayments of contractually subordinated, unsecured or junior lien debt; (vii) enter into certain transactions with their affiliates; (viii) enter into sale-leaseback transactions; (ix) change their lines of business; (x) restrict dividends from their subsidiaries or restrict liens; (xi) change their fiscal year; and (xii) modify the terms of certain debt. The AHG Facilities will also restrict distributions and other payments from the AHG BrandCos based on certain minimum thresholds of net sales with respect to the AHG Specified Brand Assets. The AHG Facilities will also contain certain customary representations, warranties and events of default. Prepayments: The AHG Facilities will be subject to certain mandatory prepayments, including from the net proceeds from the issuance of certain additional debt and asset sale proceeds of certain non-ordinary course asset sales or other dispositions of property, subject to certain exceptions. The AHG Facilities may be repaid at any time, subject to customary prepayment premiums. 2016 Term Loan Facility Extension Amendment: In addition to the AHG Commitment Parties, the other lenders under the 2016 Term Loan Facility will be offered the opportunity to participate at par in the AHG Facilities based on their holdings of loans under the 2016 Term Loan Facility. Any lenders participating in the AHG Facilities will agree to consent to an amendment to the 2016 Term Loan Facility (the “Extension Amendment”) to, among other things, make certain modifications to the covenants thereof and extend the maturity date of the 2016 Term Loan Facility to June 30, 2025, subject to a springing maturity equal to the existing maturity date of the 2016 Term Loan Facility if, on such date, $75 million or more in aggregate principal amount of the loans under the 2016 Term Loan Facility held by lenders that do not consent to the Extension Amendment remains outstanding, and subject to a springing maturity 91 days prior to the maturity date of the 6.25% Senior Notes if, on such date, $100 million or more in aggregate principal amount of the 6.25% Senior Notes remains outstanding. The effectiveness of the Extension Amendment, and therefore the completion of the AHG 2020 Refinancing Transactions, is contingent on Products Corporation receiving the consent of lenders holding more than 50% of the loans outstanding under the 2016 Term Loan Facility. Incremental Revolving Credit Facility under the 2016 Term Loan Agreement On April 30, 2020, Products Corporation entered into a Joinder Agreement (the “2020 Joinder Agreement ”), with Revlon, certain of their subsidiaries and certain existing lenders (the “ Incremental Lenders ”) under Products Corporation’s 2016 Term Loan Agreement to provide for a $65 million incremental revolving credit facility (the “2020 Incremental Facility ”). On the closing of the 2020 Incremental Facility, Products Corporation borrowed $63.5 million of revolving loans for working capital purposes. The commitments in respect of the 2020 Incremental Facility terminate on September 7, 2021, subject to a springing maturity 91 days prior to the maturity date of Products Corporations 5.75% Senior if, on such date, any such notes remain outstanding and certain liquidity requirements are not satisfied. Outstanding amounts under the 2020 Incremental Facility bear interest at a rate of (x) LIBOR plus 16% or (y) an Alternate Base Rate plus 15%, at Products Corporation’s option. Except as to pricing, maturity and differences due to its revolving nature, the terms of the 2020 Incremental Facility are otherwise substantially consistent with the existing term loans under the 2016 Term Loan Agreement. Consummation of 2020 Refinancing Transactions On May 7, 2020 (the “Facilities Closing Date”), Revlon Consumer Products Corporation (“Products Corporation”), the direct wholly-owned operating subsidiary of Revlon, Inc. (“Revlon” and together with Products Corporation and its subsidiaries, the “Company”), entered into a term credit agreement (the “BrandCo Credit Agreement”) with Revlon, Jefferies Finance LLC, as administrative agent and collateral agent, and certain financial institutions (the “2020 Facilities Lenders”) that are lenders or the affiliates of lenders under Products Corporation’s Term Credit Agreement, dated as of September 7, 2016 and amended on April 30, 2020 (as amended to date, the “2016 Term Loan Facility”) and as amended on the Facilities Closing Date, as further described below. Pursuant to the BrandCo Credit Agreement, the 2020 Facilities Lenders provided the Company with new and roll-up senior secured term loan facilities (the “2020 Facilities” and, together with the use of proceeds thereof and the Extension Amendment (as defined below), the “2020 Refinancing Transactions”). Principal and Maturity: The 2020 Facilities consist of: (i) a senior secured term loan facility in an aggregate principal amount outstanding on the Facilities Closing Date of $815 million, plus the amount of certain fees that have been capitalized (the “2020 BrandCo Facility”); (ii) commitments in respect of a senior secured term loan facility in an aggregate principal amount of $950 million (the “Roll-up BrandCo Facility”); and (iii) a senior secured term loan facility in an aggregate principal amount outstanding on the Facilities Closing Date of $3 million (the “Junior Roll-up BrandCo Facility”). Additionally, within 15 business days after the Facilities Closing Date, Products Corporation may borrow from the 2020 Facilities Lenders an additional $65 million of term loans under the 2020 Brandco Facility to refinance revolving loans under the 2016 Term Loan Facility, upon which the 2020 BrandCo Facility would have an aggregate principal amount outstanding of $880 million. The proceeds of the 2020 BrandCo Facility were used: (i) to repay in full approximately $200 million of indebtedness outstanding under Products Corporation’s Term Credit Agreement, dated as of August 6, 2019; and (ii) to pay fees and expenses in connection with the 2020 Facilities and the 2020 Refinancing Transactions. The Company will use the remaining net proceeds for general corporate purposes, including repurchasing and retiring Products Corporation’s outstanding 5.75% Senior Notes at prevailing market prices. The proceeds of the Roll-up BrandCo Facility are available prior to the third anniversary of the Facilities Closing Date to p urchase an equivalent amount of term loans under the 2016 Term Loan Facility held by the lenders participating in the 2020 BrandCo Facility or their transferees. The proceeds of the Junior Roll-up BrandCo Facility were used to purchase at par an equivalent amount of term loans under the 2016 Term Loan Facility held by such lenders. The 2020 Facilities will mature on June 30, 2025, subject to a springing maturity 91 days prior to the maturity date of Products Corporation’s 6.25% Senior Notes due August 2024 (the “6.25% Senior Notes”) if, on such date, $100 million or more in aggregate principal amount of the 6.25% Senior Notes remain outstanding. Borrower, Guarantees and Security: The borrower under the 2020 Facilities is Products Corporation, and the 2020 Facilities are guaranteed by certain indirect subsidiaries of Products Corporation (the “BrandCos”), which hold certain intellectual property assets related to the Elizabeth Arden and American Crew brands, certain other Portfolio segment brands and certain owned Fragrance segment brands (the “Specified Brand Assets”). While the BrandCos do not guarantee the 2016 Term Loan Facility, all guarantors of the 2016 Term Loan Facility guarantee the 2020 Facilities. All of the assets of the BrandCos (including the equity of the BrandCos) have been pledged to secure the 2020 BrandCo Facility on a first-priority basis, the Roll-up BrandCo Facility on a second-priority basis and the Junior Roll-up BrandCo Facility on a third-priority basis and while such assets do not secure the 2016 Term Loan Facility, the 2020 Facilities are secured on a pari passu basis by the assets securing the 2016 Term Loan Facility. Contribution and License Agreements: In connection with the pledge of the Specified Brand Assets, Products Corporation and certain of its subsidiaries contributed the Specified Brand Assets to the BrandCos. Products Corporation has entered into license and royalty arrangements on arm’s length terms with the relevant BrandCos to provide for the continued use of the Specified Brand Assets by Products Corporation and its subsidiaries during the term of the Facilities. Interest and Fees: Loans under the 2020 BrandCo Facility bear interest at a rate equal to LIBOR (with a LIBOR floor of 1.50%) plus (x) 10.50% per annum, payable not less than quarterly in arrears in cash and (y) 2.00% per annum payable not less than quarterly in-kind by adding such amount to the principal amount of outstanding loans under the 2020 Brandco Facility. Loans under the Roll-up BrandCo Facility and the Junior Roll-up BrandCo Facility bear interest at a rate equal to LIBOR (with a LIBOR floor of 0.75%) plus 3.50% per annum, payable not less than quarterly in arrears in cash. Affirmative and Negative Covenants: The 2020 Facilities contain certain affirmative and negative covenants that, among other things, limit Products Corporation’s and its restricted subsidiaries’ ability to: (i) incur additional debt; (ii) incur liens; (iii) sell, transfer or dispose of assets; (iv) make investments; (v) make dividends and distributions on, or repurchases of, equity; (vi) make prepayments of contractually subordinated, unsecured or junior lien debt; (vii) enter into certain transactions with their affiliates; (viii) enter into sale-leaseback transactions; (ix) change their lines of business; (x) restrict dividends from their subsidiaries or restrict liens; (xi) change their fiscal year; and (xii) modify the terms of certain debt. The 2020 Facilities also restrict distributions and other payments from the BrandCos based on certain minimum thresholds of net sales with respect to the Specified Brand Assets. The 2020 Facilities also contain certain customary representations, warranties and events of default. Prepayments: The 2020 Facilities are subject to certain mandatory prepayments, including from the net proceeds from the issuance of certain additional debt and asset sale proceeds of certain non-ordinary course asset sales or other dispositions of property, subject to certain exceptions. The 2020 Facilities may be repaid at any time, subject to customary prepayment premiums. 2016 Term Loan Facility Extension Amendment : Term loan lenders under the 2016 Term Loan Facility were offered the opportunity to participate at par in the 2020 Facilities based on their holdings of term loans under the 2016 Term Loan Facility. Lenders participating in the 2020 Facilities, as well as other consenting lenders representing, in the aggregate, a majority of the loans and commitments under the 2016 Term Loan Facility, consented to an amendment to the 2016 Term Loan Facility (the “Extension Amendment”) that, among other things, made certain modifications to the covenants thereof and extended the maturity date of their term loans (“Extended Term Loans”) to June 30, 2025, subject to a springing maturity equal to the September 7, 2023 maturity date of the non-extended term loans under the 2016 Term Loan Facility if, on such date, $75 million or more in aggregate principal amount of the non-extended term loans under the 2016 Term Loan Facility remains outstanding, and subject to a springing maturity of 91 days prior to the maturity date of the 6.25% Senior Notes if, on such date, $100 million or more in aggregate principal amount of the 6.25% Senior Notes remains outstanding. The Extension Amendment became effective on the Facilities Closing Date. Following the Facilities Closing Date, approximately $267.1 million in aggregate principal amount of Extended Term Loans were outstanding after giving effect to the 2020 Refinancing Transactions. The Extended Term Loans bear interest at a rate of LIBOR (with a LIBOR floor of 0.75%) plus 3.50% per annum, payable not less than quarterly in arrears in cash, consistent with the interest rate applicable to the non-extended term loans. Amendments to 2016 ABL Facility: In addition, in connection with the 2020 Refinancing Transactions the Company completed amendments to Products Corporation’s Asset-Based Revolving Credit Agreement dated as of September 7, 2016, as amended (the “2016 ABL Facility”) on the Facilities Closing Date. The amendments, among other things, make certain amendments or waivers relating to the 2020 Refinancing Transactions under the 2016 ABL Facility. In exchange for such amendments and waivers, the interest rate margin applicable to loans under Tranche A of the 2016 ABL Facility increased by 0.75%. |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The preparation of the Company's Unaudited Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Unaudited Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Unaudited Consolidated Financial Statements include, but are not limited to: expected sales returns; certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets; income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities; and 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 Unaudited Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and related notes contained in Revlon's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the "2019 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 the full year. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Evaluated and/or Adopted Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, "Internal Use Software (Subtopic 350-40) - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract," which requires a customer in a cloud computing hosting arrangement that is a service contract to follow the existing guidance in ASC 350-40 on internal-use software to determine which implementation costs are to be deferred and recognized as an asset and which costs are to be expensed as incurred. This guidance is effective for annual periods beginning after December 15, 2019, with early adoption permitted, and may be applied either retrospectively or prospectively to all software implementation costs incurred after adoption. The Company adopted ASU No. 2018-15 prospectively, beginning as of January 1, 2020. The Company completed its assessment and determined that this new guidance does not have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The new guidance under ASU 2020-04 provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is in the process of assessing the impact, if any, that ASU No. 2020-04 is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes," which removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocations and calculating income taxes in interim periods. This ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance is effective for annual periods beginning after December 15, 2020, with early adoption permitted, including adoption in any interim period. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The amendments in this ASU that are related to separate financial statements of legal entities that are not subject to tax should be applied on a retrospective basis for all periods presented. The amendments in this ASU that are related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments in this ASU that are related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments under this ASU should be applied on a prospective basis. The Company is in the process of assessing the impact, if any, that this ASU is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In August 2018, the FASB issued ASU No. 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.” This new guidance removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and requires certain additional disclosures. This guidance is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The Company will adopt this guidance (on a retrospective basis for certain new additional disclosures), beginning as of January 1, 2021. While the Company is currently assessing the impact of this new pronouncement, the new guidance, which only affects disclosure items, is not expected to have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which was subsequently amended in November 2018 through ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses." ASU No. 2016-13 will require entities to estimate lifetime expected credit losses for trade and other receivables, net investments in leases, financing receivables, debt securities and other instruments, which will result in earlier recognition of credit losses. Further, the new credit loss model will affect how entities in all industries estimate their allowance for losses for receivables that are current with respect to their payment terms. ASU No. 2018-19 further clarifies that receivables arising from operating leases are not within the scope of Topic 326. Instead, impairment from receivables of operating leases should be accounted for in accordance with Topic 842, Leases. In November 2019, the FASB issued ASU No. 2019-10, which, among other things, deferred the application of the new guidance on credit losses for smaller reporting companies ("SRC") to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This guidance will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., a modified-retrospective approach). Under the above-mentioned deferral, the Company expects to adopt ASU No. 2016-03, and the related ASU No. 2018-19 amendments, beginning as of January 1, 2023 and is in the process of assessing the impact, if any, that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Charges | A summary of the 2020 Restructuring Charges incurred since its inception and through March 31, 2020 is presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits Other Costs Total Restructuring Charges Leases (a) Other Related Charges(b) Total Restructuring and Related Charges Cumulative charges incurred through March 31, 2020 $ 25.6 $ — $ 25.6 $ 8.6 $ 0.2 $ 34.4 (a) Lease-related charges are recorded within SG&A in the Company’s Unaudited Consolidated Statement of Operations and Comprehensive Loss. These lease-related charges include: (i) $3.5 million for accelerated recognition of rent expense related to certain abandoned leases; (ii) $3.0 million for the disposal of leasehold improvements and other equipment in connection with certain leases; (iii) $1.2 million of rent expense related to the Revlon 2020 Restructuring Program; and (iv) $0.9 million of disposal of leasehold improvements and other equipment in connection with the abandoned leases identified in clause (i) of this footnote (a). (b) Other related charges are recorded within SG&A in the Company’s Unaudited Consolidated Statement of Operations and Comprehensive Loss. A summary of the 2020 Restructuring Charges incurred since its inception in March 2020 and through March 31, 2020 by reportable segment is presented in the following table: Cumulative charges incurred through March 31, 2020 Revlon $ 10.3 Elizabeth Arden 5.4 Portfolio 6.1 Fragrances 3.8 Total $ 25.6 A summary of the 2018 Optimization Restructuring Charges incurred since its inception in November 2018 and through March 31, 2020 is presented in the following table: Restructuring Charges and Other, Net Employee Severance and Other Personnel Benefits (a) Other Costs Total Restructuring Charges Inventory Adjustments (b) Other Related Charges (c) Total Restructuring and Related Charges Charges incurred through December 31, 2019 $ 20.3 $ 0.3 $ 20.6 $ 4.9 $ 14.0 $ 39.5 Charges incurred during the three months ended March 31, 2020 (0.4) — (0.4) — 0.7 0.3 Cumulative charges incurred through March 31, 2020 $ 19.9 $ 0.3 $ 20.2 $ 4.9 $ 14.7 $ 39.8 (a) Includes reversal due to true-up of previously-accrued restructuring charges. (b) Inventory adjustments are recorded within cost of sales in the Company’s Unaudited Consolidated Statement of Operations and Comprehensive Loss. (c) Other related charges are recorded within SG&A in the Company’s Unaudited Consolidated Statement of Operations and Comprehensive Loss. A summary of the 2018 Optimization Restructuring Charges incurred since its inception in November 2018 and through March 31, 2020 by reportable segment is presented in the following table: Charges incurred during the three months ended March 31, 2020 Cumulative charges incurred through March 31, 2020 Revlon $ (0.2) $ 8.6 Elizabeth Arden (0.1) 4.2 Portfolio — 4.0 Fragrances (0.1) 3.4 Total $ (0.4) $ 20.2 |
Schedule of Liability Balance and Activity of Restructuring Programs | The liability balance and related activity for each of the Company's restructuring programs are presented in the following table: Utilized, Net Liability Expense, Net Foreign Currency Translation Cash Non-cash Liability Balance at March 31, 2020 Revlon 2020 Restructuring Program: Employee severance and other personnel benefits $ — $ 25.6 $ — $ (0.8) $ — $ 24.8 2018 Optimization Program: Employee severance and other personnel benefits 5.7 (0.4) — (2.5) — 2.8 Other immaterial actions: (a) Employee severance and other personnel benefits 4.3 (0.4) (0.1) (0.3) — 3.5 Total restructuring reserve $ 10.0 $ 24.8 $ (0.1) $ (3.6) $ — $ 31.1 (a) The balance of other immaterial restructuring initiatives primarily consists of balances outstanding under the EA Integration Restructuring Program implemented by the Company in December 2016, which was completed by December 2018. The reversal of charges and payments made during the first quarter of 2020 primarily related to other individually and collectively immaterial restructuring initiatives. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | As of March 31, 2020 and December 31, 2019, the Company's inventory balances consisted of the following: March 31, December 31, 2020 2019 Finished goods $ 363.9 $ 326.5 Raw materials and supplies 104.1 110.4 Work-in-process 11.8 11.5 $ 479.8 $ 448.4 |
LEASES AND PROPERTY, PLANT AN_2
LEASES AND PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease cost | The following table includes disclosure related to the ASC 842 lease standard for the periods presented, after application of the applicable practical expedients and short-term lease considerations: Three Months Ended March 31, 2020 March 31, 2019 Lease Cost: Finance Lease Cost: Amortization of ROU assets $ 0.1 $ 0.0 Interest on lease liabilities 0.0 0.0 Operating Lease Cost 13.0 10.6 Total Lease Cost $ 13.1 $ 10.6 Other Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases 0.0 0.0 Operating cash flows from operating leases 9.9 11.0 Financing cash flows from finance leases 0.1 0.2 March 31, 2020 December 31, 2019 ROU assets for finance leases 0.9 1.0 ROU assets for operating leases 90.8 91.4 Accumulated amortization on ROU assets for finance leases 0.4 0.3 Accumulated amortization on ROU assets for operating leases 26.3 23.2 Weighted-average remaining lease term - finance leases 2.6 years 2.8 years Weighted-average remaining lease term - operating leases 6.0 years 6.2 years Weighted-average discount rate - finance leases 15.0 % 15.6 % Weighted-average discount rate - operating leases 15.7 % 15.8 % |
Schedule of Finance Lease Maturities | Maturities of lease liabilities as of March 31, 2020 were as follows: Operating Leases Finance Leases April 2020 through December 2020 $ 26.4 $ 0.5 2021 32.8 0.5 2022 26.2 0.3 2023 21.9 0.0 2024 16.5 — Thereafter 46.7 — Total undiscounted cash flows $ 170.5 $ 1.3 Present value: Short-term lease liability $ 19.2 $ 0.5 Long-term lease liability 89.2 0.4 Total lease liability $ 108.4 $ 0.9 Difference between undiscounted cash flows and discounted cash flows $ 62.1 $ 0.4 |
Schedule of Operating Lease Maturities | Maturities of lease liabilities as of March 31, 2020 were as follows: Operating Leases Finance Leases April 2020 through December 2020 $ 26.4 $ 0.5 2021 32.8 0.5 2022 26.2 0.3 2023 21.9 0.0 2024 16.5 — Thereafter 46.7 — Total undiscounted cash flows $ 170.5 $ 1.3 Present value: Short-term lease liability $ 19.2 $ 0.5 Long-term lease liability 89.2 0.4 Total lease liability $ 108.4 $ 0.9 Difference between undiscounted cash flows and discounted cash flows $ 62.1 $ 0.4 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill by Segment | The following table presents the changes in goodwill by segment for the three months ended March 31, 2020: Revlon Portfolio Elizabeth Arden Fragrances Total Balance at January 1, 2020 $ 264.9 $ 171.1 $ 116.9 $ 120.8 $ 673.7 Foreign currency translation adjustment (0.2) — — — (0.2) Goodwill impairment charge (73.9) (25.9) — (99.8) Balance at March 31, 2020 $ 264.7 $ 97.2 $ 91.0 $ 120.8 $ 573.7 Cumulative goodwill impairment charges (a) $ (155.0) (a) Amount refers to cumulative goodwill impairment charges related to impairments recognized in 2015, 2017, 2018 and 2020; $99.8 million of impairment charges were recognized for the three months ended March 31, 2020. |
Schedule of Impaired Intangible Assets | A summary of such impairment charges by segments is included in the following table: March 31, 2020 Revlon Portfolio Elizabeth Arden Fragrances Total Indefinite-lived intangible assets $ — $ (2.5) $ (22.0) $ — $ (24.5) Total Intangibles Impairment $ — $ (2.5) $ (22.0) $ — $ (24.5) |
Summary of Finite-Lived Intangible Assets | The following tables present details of the Company's total intangible assets as of March 31, 2020 and December 31, 2019: March 31, 2020 Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount Weighted-Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and licenses $ 271.0 $ (114.8) $ — $ 156.2 13 Customer relationships 247.4 (99.4) — 148.0 11 Patents and internally-developed intellectual property 21.7 (12.6) — 9.1 5 Distribution rights 31.0 (6.1) — 24.9 14 Other 1.3 (1.3) — — 0 Total finite-lived intangible assets $ 572.4 $ (234.2) $ — $ 338.2 Indefinite-lived intangible assets: Trade names $ 142.9 N/A $ (24.5) $ 118.4 Total indefinite-lived intangible assets $ 142.9 N/A $ (24.5) $ 118.4 Total intangible assets $ 715.3 $ (234.2) $ (24.5) $ 456.6 December 31, 2019 Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount Weighted-Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and licenses $ 271.2 $ (110.9) $ — $ 160.3 13 Customer relationships 248.3 (96.5) — 151.8 11 Patents and internally-developed intellectual property 21.5 (12.1) — 9.4 5 Distribution rights 31.0 (5.6) — 25.4 15 Other 1.3 (1.3) — — 0 Total finite-lived intangible assets $ 573.3 $ (226.4) $ — $ 346.9 Indefinite-lived intangible assets: Trade names $ 143.8 N/A $ — $ 143.8 Total indefinite-lived intangible assets $ 143.8 N/A $ — $ 143.8 Total intangible assets $ 717.1 $ (226.4) $ — $ 490.7 |
Summary of Indefinite-Lived Intangible Assets | The following tables present details of the Company's total intangible assets as of March 31, 2020 and December 31, 2019: March 31, 2020 Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount Weighted-Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and licenses $ 271.0 $ (114.8) $ — $ 156.2 13 Customer relationships 247.4 (99.4) — 148.0 11 Patents and internally-developed intellectual property 21.7 (12.6) — 9.1 5 Distribution rights 31.0 (6.1) — 24.9 14 Other 1.3 (1.3) — — 0 Total finite-lived intangible assets $ 572.4 $ (234.2) $ — $ 338.2 Indefinite-lived intangible assets: Trade names $ 142.9 N/A $ (24.5) $ 118.4 Total indefinite-lived intangible assets $ 142.9 N/A $ (24.5) $ 118.4 Total intangible assets $ 715.3 $ (234.2) $ (24.5) $ 456.6 December 31, 2019 Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount Weighted-Average Useful Life (in Years) Finite-lived intangible assets: Trademarks and licenses $ 271.2 $ (110.9) $ — $ 160.3 13 Customer relationships 248.3 (96.5) — 151.8 11 Patents and internally-developed intellectual property 21.5 (12.1) — 9.4 5 Distribution rights 31.0 (5.6) — 25.4 15 Other 1.3 (1.3) — — 0 Total finite-lived intangible assets $ 573.3 $ (226.4) $ — $ 346.9 Indefinite-lived intangible assets: Trade names $ 143.8 N/A $ — $ 143.8 Total indefinite-lived intangible assets $ 143.8 N/A $ — $ 143.8 Total intangible assets $ 717.1 $ (226.4) $ — $ 490.7 |
Estimated Future Amortization Expense | The following table reflects the estimated future amortization expense for each period presented, a portion of which is subject to exchange rate fluctuations, for the Company's finite-lived intangible assets as of March 31, 2020: Estimated Amortization Expense 2020 $ 25.6 2021 33.2 2022 32.3 2023 30.8 2024 27.5 Thereafter 188.8 Total $ 338.2 |
ACCRUED EXPENSES AND OTHER (Tab
ACCRUED EXPENSES AND OTHER (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other | As of March 31, 2020 and December 31, 2019, the Company's accrued expenses and other current liabilities consisted of the following: March 31, December 31, 2020 2019 Sales returns and allowances $ 76.8 $ 89.7 Advertising, marketing and promotional costs 63.3 82.8 Taxes (a) 46.5 54.3 Compensation and related benefits 30.7 42.1 Interest 18.8 34.0 Professional services and insurance 18.4 16.3 Short term lease liability 19.7 14.5 Freight and distribution costs 8.7 13.2 Restructuring reserve 31.1 10.0 Software 3.8 4.0 Other (b) 56.3 54.0 Total $ 374.1 $ 414.9 (a) Accrued Taxes for Products Corporation as of March 31, 2020 and December 31, 2019 were $49.7 million and $57.6 million, respectively. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Long-Term Debt | As of March 31, 2020 and December 31, 2019, the Company's debt balances consisted of the following: March 31, December 31, 2020 2019 2019 Term Loan Facility due 2023, net of discounts and debt issuance costs (see (a) below) $ 187.7 $ 187.1 2018 Foreign Asset-Based Term Facility due 2021, net of discounts and debt issuance costs (see (b) below) 81.5 82.3 Amended 2016 Revolving Credit Facility due 2021, net of debt issuance costs (see (c) below) 339.5 269.9 2016 Term Loan Facility: 2016 Term Loan due 2023, net of discounts and debt issuance costs (see (d) below) 1,710.9 1,713.6 5.75% Senior Notes due 2021, net of debt issuance costs (see (e) below) 498.5 498.1 6.25% Senior Notes due 2024, net of debt issuance costs (see (f) below) 443.1 442.8 Spanish Government Loan due 2025 0.4 0.4 Debt $ 3,261.6 $ 3,194.2 Less current portion (*) (856.1) (288.0) Long-term debt $ 2,405.5 $ 2,906.2 Short-term borrowings (see (g) below) $ 2.9 $ 2.2 (*) At March 31, 2020, the Company classified $856.1 million as its current portion of long-term debt, comprised primarily of $498.5 million of Products Corporation's 5.75% Senior Notes due February 15, 2021 (the "5.75% Senior Notes"), net of debt issuance costs, $339.5 million net borrowings under the Amended 2016 Revolving Credit Facility, net of debt issuance costs, and $18.0 million of amortization payments on the 2016 Term Loan Facility scheduled to be paid over the next four calendar quarters. At December 31, 2019, the Company classified $288.0 million as its current portion of long-term debt, comprised primarily of $269.9 million of net borrowings under the Amended 2016 Revolving Credit Facility, net of debt issuance costs, and $18.0 million of amortization payments on the 2016 Term Loan Facility. See Note 19 "Subsequent Events," for detail regarding the extension of the maturity of the Tranche B of the Amended 2016 Revolving Credit Facility. (a) See Note 9, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2019 Form 10-K for certain details regarding the 2019 Term Loan Facility, which will mature on the earliest of: (x) August 6, 2023; (y) the 180th day prior to the stated maturity of Products Corporation’s existing 2016 Term Loan Facility, if any loans under the 2016 Term Loan Facility remain outstanding and have not been replaced or refinanced by such date; and (z) the date of any springing maturity of the 2016 Term Loan Facility (i.e., the 91st day prior to the maturity of the 5.75% Senior Notes due February 15, 2021 if any 5.75% Senior Notes remain outstanding by such date and certain liquidity thresholds are not met). The aggregate principal amount outstanding under the 2019 Term Loan Facility at March 31, 2020 was $200.0 million. See Note 19 "Subsequent Events," for detail regarding the closing of the 2020 Refinancing Transaction and related transactions, which included the full repayment of the 2019 Term Loan Facility. (b) See Note 9, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2019 Form 10-K for certain details regarding the euro-denominated senior secured asset-based term loan facility in an aggregate principal amount of €77 million that various foreign subsidiaries of Products Corporation entered into in July 2018 (the “2018 Foreign Asset-Based Term Facility”). See Note 19 "Subsequent Events," for detail regarding certain the closing of the 2020 Refinancing Transaction and related transactions, which included a partial repayment of the 2018 Foreign Asset-Based Term Facility. (c) See Note 9, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2019 Form 10-K for certain details regarding Products Corporation's Amended 2016 Revolving Credit Facility. In April 2018, Products Corporation amended the Amended 2016 Revolving Credit Facility Agreement, as detailed below, to, among other things, add a new $41.5 million senior secured first in, last out "Tranche B," while the original $400 million tranche under such facility became a senior secured last in, first out "Tranche A." Tranche A matures on the earlier of: (x) September 7, 2021; and (y) the 91 st day prior to the maturity of Products Corporation’s 5.75% Senior Notes, if, on that date (and solely for so long as), (i) any of Products Corporation’s 5.75% Senior Notes remain outstanding and (ii) Products Corporation’s available liquidity does not exceed the aggregate principal amount of the then outstanding 5.75% Senior Notes by at least $200 million. Tranche B matures on May 17, 2020. See Note 19 "Subsequent Events," for detail regarding the extension of the maturity of the Tranche B of the Amended 2016 Revolving Credit Facility. Total borrowings at face amount under Tranche A and Tranche B under the Amended 2016 Revolving Credit Facility at March 31, 2020 were $306.7 million (excluding $11.0 million of outstanding undrawn letters of credit) and $34.8 million, respectively (the 2016 Term Loan Facility and the Amended 2016 Revolving Credit Facility are collectively referred to as the "2016 Senior Credit Facilities" and the applicable agreements being the “2016 Credit Agreements”). (d) See Note 9, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2019 Form 10-K for certain details regarding Products Corporation's 2016 Term Loan that matures on the earlier of: (x) September 7, 2023; and (y) the 91 st day prior to the maturity of Products Corporation’s 5.75% Senior Notes due 2021 if, on that date (and solely for so long as), (i) any of Products Corporation's 5.75% Senior Notes remain outstanding and (ii) Products Corporation’s available liquidity does not exceed the aggregate principal amount of the then outstanding 5.75% Senior Notes by at least $200 million. The aggregate principal amount outstanding under the 2016 Term Loan Facility at March 31, 2020 was $1,737.0 million. See Note 19 "Subsequent Events," for detail regarding the closing of the 2020 Refinancing Transaction and related transactions, which included various amendments to the 2016 Term Loan. (e) See Note 9, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2019 Form 10-K for certain details regarding Products Corporation's 5.75% Senior Notes that mature on February 15, 2021. The aggregate principal amount outstanding under the 5.75% Senior Notes at March 31, 2020 was $500 million. (f) See Note 9, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2019 Form 10-K for certain details regarding Products Corporation's 6.25% Senior Notes that mature on August 1, 2024 (the "6.25% Senior Notes"). The aggregate principal amount outstanding under the 6.25% Senior Notes at March 31, 2020 was $450 million. (g) There were no borrowings at March 31, 2020 under the 2019 Senior Line of Credit Facility between Products Corporation and MacAndrews & Forbes Group, LLC, a related party, discussed below. |
Schedule of Line of Credit Facilities | At March 31, 2020, the aggregate principal amounts outstanding and availability under Products Corporation’s various revolving credit facilities were as follows: Commitment Borrowing Base Aggregate principal amount outstanding at March 31, 2020 Availability at March 31, 2020 (a) Tranche A of the Amended 2016 Revolving Credit Facility $ 400.0 $ 352.0 $ 306.7 $ 34.3 Tranche B of the Amended 2016 Revolving Credit Facility 41.5 34.8 34.8 — Total Tranche A & B of the Amended 2016 Revolving Credit Facility (a) $ 441.5 $ 386.8 $ 341.5 $ 34.3 Amended 2019 Senior Line of Credit Facility $ 30.0 N/A $ — $ 30.0 (a) Availability as of March 31, 2020 is based upon the borrowing base then in effect under the Amended 2016 Revolving Credit Facility of $386.8 million, less $11.0 million of outstanding undrawn letters of credit and $341.5 million then drawn. As Products Corporation’s consolidated fixed charge coverage ratio was greater than 1.0 to 1.0 as of March 31, 2020, all of the $34.3 million of availability under the Amended 2016 Revolving Credit Facility was available as of such date. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Liabilities Not Measured At Fair Value But For Which Fair Value Disclosure Is Required | As of March 31, 2020, the fair value and carrying value of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: March 31, 2020 Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion (a) $ — $ 1,768.3 $ — $ 1,768.3 $ 3,261.6 As of December 31, 2019, the fair value and carrying value of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: December 31, 2019 Fair Value Level 1 Level 2 Level 3 Total Carrying Value Liabilities: Long-term debt, including current portion (a) $ — $ 2,522.2 $ — $ 2,522.2 $ 3,194.2 (a) The fair value of the Company's long-term debt, including the current portion of long-term debt, is based on quoted market prices for similar issuances and maturities. |
PENSION AND POST-RETIREMENT B_2
PENSION AND POST-RETIREMENT BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit (Income) Costs | The components of net periodic benefit costs for the Company's pension and the other post-retirement benefit plans for the three months March 31, 2020 and 2019, respectively, were as follows: Pension Plans Other Three Months Ended March 31, 2020 2019 2020 2019 Net periodic benefit costs: Service cost $ 0.4 $ 0.5 $ — $ — Interest cost 3.7 4.9 0.1 0.1 Expected return on plan assets (5.8) (6.0) — — Amortization of actuarial loss 2.7 2.4 0.1 0.1 Total net periodic benefit costs prior to allocation $ 1.0 $ 1.8 $ 0.2 $ 0.2 Portion allocated to Revlon Holdings — — — — Total net periodic benefit costs $ 1.0 $ 1.8 $ 0.2 $ 0.2 |
Schedule of Classification of Net Periodic Benefit (Income) Costs | Net periodic benefit costs are reflected in the Company's Unaudited Consolidated Financial Statements as follows for the periods presented: Three Months Ended March 31, 2020 2019 Net periodic benefit costs: Selling, general and administrative expense 0.4 0.5 Miscellaneous, net 0.8 1.5 Total net periodic benefit costs $ 1.2 $ 2.0 |
STOCK COMPENSATION PLAN (Tables
STOCK COMPENSATION PLAN (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Restricted stock units award activity | During the first quarter of 2020, the activity related to time-based and performance-based RSUs previously granted to eligible employees and the grant date fair value per share related to these RSUs were as follows under the LTIP and 2019 TIP programs, respectively: Time-Based LTIP Performance-Based LTIP RSUs (000's) Weighted-Average Grant Date Fair Value per RSU RSUs (000's) Weighted-Average Grant Date Fair Value per RSU Outstanding as of December 31, 2019 2019 TIP RSUs (b) 200.6 16.44 n/a — LTIP RSUs: 2019 425.6 22.55 425.6 22.55 2018 241.9 19.00 364.7 19.00 2017 (a) 54.0 19.70 110.9 19.70 Total LTIP RSUs 721.5 901.2 Total LTIP and TIP RSUs Outstanding as of December 31, 2019 922.1 901.2 Granted 2019 TIP RSUs Granted (b) — — n/a — LTIP RSUs: 2020 648.4 14.96 648.4 14.96 2019 — — — — 2018 — — — — 2017 (a) — — — — Total LTIP RSUs Granted 648.4 648.4 Vested 2019 TIP RSUs Vested (b)(c) (21.1) 16.44 n/a — LTIP RSUs: 2019 (c) (129.3) 22.55 — — 2018 (c) (103.8) 19.30 — — 2017 (a)(c) (53.4) 19.70 (14.2) 19.70 Total LTIP RSUs Vested (286.5) (14.2) Forfeited/Canceled 2019 TIP RSUs Forfeited/Canceled (b) (25.8) 16.44 n/a — LTIP RSUs: 2019 (68.4) 22.55 (82.8) 22.55 2018 (44.4) 17.33 (82.0) 17.44 2017 (a) (0.6) 19.70 (96.7) 19.70 Total LTIP RSUs Forfeited/Canceled (113.4) (261.5) Outstanding as of March 31, 2020 2019 TIP RSUs 153.7 16.44 n/a — LTIP RSUs: 2020 648.4 14.96 648.4 14.96 2019 227.9 22.55 342.8 22.55 2018 93.7 19.45 282.7 19.46 2017 (a) — — — — Total LTIP RSUs 970.0 1,273.9 Total LTIP and TIP RSUs Outstanding as of March 31, 2020 1,123.7 1,273.9 (a) The 2017 time-based and performance-based LTIP RSUs were recognized over a 2-year service and performance period (i.e., 2018 and 2019). (b) The 2019 TIP provides for RSU awards that are only time-based. (c) Includes acceleration of vesting upon involuntary terminations of 23,888 RSUs under the 2019, 2018 and 2017 LTIPs and of 21,077 RSUs under the 2019 TIP Tier I awards. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Loss | A roll-forward of the Company's accumulated other comprehensive loss as of March 31, 2020 is as follows: Foreign Currency Translation Actuarial (Loss) Gain on Post-retirement Benefits Other Accumulated Other Comprehensive Loss Balance at January 1, 2020 $ (27.3) $ (219.8) $ (0.3) $ (247.4) Foreign currency translation adjustment (5.2) — — (5.2) Amortization of pension related costs, net of tax of $(0.3) million (a) — 2.5 — 2.5 Other comprehensive (loss) gain $ (5.2) $ 2.5 $ — $ (2.7) Balance at March 31, 2020 $ (32.5) $ (217.3) $ (0.3) $ (250.1) (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 10, "Pension and Post-retirement Benefits," for further information on the Company’s pension and other post-retirement plans. |
SEGMENT DATA AND RELATED INFO_2
SEGMENT DATA AND RELATED INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 for Revlon and Products Corporation by reportable segment for the periods presented. Revlon, Inc. Three Months Ended March 31, 2020 2019 Segment Net Sales: Revlon $ 181.8 $ 247.3 Elizabeth Arden 95.2 111.4 Portfolio 110.0 117.2 Fragrances 66.0 77.3 Total $ 453.0 $ 553.2 Segment Profit: Revlon $ 15.6 $ 25.6 Elizabeth Arden 4.2 1.9 Portfolio 7.2 4.5 Fragrances 1.4 6.8 Total $ 28.4 $ 38.8 Reconciliation: Total Segment Profit $ 28.4 $ 38.8 Less: Depreciation and amortization 36.8 47.0 Non-cash stock compensation expense 2.4 0.4 Non-Operating items: Restructuring and related charges 34.4 12.1 Acquisition, integration and divestiture costs 2.1 0.6 Loss on divested assets 0.8 — Financial control remediation actions and related charges 2.1 2.0 Excessive coupon redemptions 4.2 — COVID-19 charges 7.5 — Impairment charge 124.3 — Operating loss (186.2) (23.3) Less: Interest Expense 48.4 47.7 Amortization of debt issuance costs 4.0 3.2 Foreign currency losses, net 16.6 0.2 Miscellaneous, net (4.1) 1.3 Loss from continuing operations before income taxes $ (251.1) $ (75.7) Products Corporation Three Months Ended March 31, 2020 2019 Segment Net Sales: Revlon $ 181.8 $ 247.3 Elizabeth Arden 95.2 111.4 Portfolio 110.0 117.2 Fragrances 66.0 77.3 Total $ 453.0 $ 553.2 Segment Profit: Revlon $ 16.4 $ 26.4 Elizabeth Arden 4.6 2.2 Portfolio 7.7 4.9 Fragrances 1.7 7.1 Total $ 30.4 $ 40.6 Reconciliation: Total Segment Profit $ 30.4 $ 40.6 Less: Depreciation and amortization 36.8 47.0 Non-cash stock compensation expense 2.4 0.4 Non-Operating items: Restructuring and related charges 34.4 12.1 Acquisition, integration and divestiture costs 2.1 0.6 Loss on divested assets 0.8 — Financial control remediation actions and related charges 2.1 2.0 Excessive coupon redemptions 4.2 — COVID-19 charges 7.5 — Impairment charge 124.3 — Operating income (loss) (184.2) (21.5) Less: Interest Expense 48.4 47.7 Amortization of debt issuance costs 4.0 3.2 Foreign currency losses, net 16.6 0.2 Miscellaneous, net (4.1) 1.3 Loss from continuing operations before income taxes $ (249.1) $ (73.9) |
Schedule of Net Sales and Long-Lived Assets by Geographic Area | The following tables present the Company's segment net sales by geography and total net sales by classes of similar products for the periods presented: Three Months Ended March 31, 2020 Revlon Elizabeth Arden Portfolio Fragrances Total Geographic Area (1) : Net Sales North America $ 99.1 $ 21.4 $ 70.8 $ 42.2 $ 233.5 EMEA* 37.3 25.9 30.6 16.3 110.1 Asia 14.7 43.1 0.5 3.4 61.7 Latin America* 14.0 0.8 4.9 0.8 20.5 Pacific* 16.7 4.0 3.2 3.3 27.2 $ 181.8 $ 95.2 $ 110.0 $ 66.0 $ 453.0 Three Months Ended March 31, 2019 Revlon Elizabeth Arden Portfolio Fragrances Total Geographic Area (1) : Net Sales North America 133.2 28.2 70.1 47.2 $ 278.7 EMEA* 53.7 27.9 37.8 20.2 139.6 Asia 23.9 47.7 0.8 4.7 77.1 Latin America* 15.7 2.8 5.2 2.2 25.9 Pacific* 20.8 4.8 3.3 3.0 31.9 $ 247.3 $ 111.4 $ 117.2 $ 77.3 $ 553.2 (1) During the first quarter of 2020, the Company changed the presentation of its Travel Retail business, which previously was included in its EMEA Region, as it is currently presented within each geographic area in accordance with the location of the retail customer. Travel Retail sales represented approximately 2.6% and 4.7% of the Company's total Net Sales for the first quarter of 2020 and 2019, respectively. Prior year amounts have been updated to reflect current year presentation. * The EMEA region includes Europe, the Middle East and Africa; the Latin America region includes Mexico; and the Pacific region includes Australia and New Zealand. The following table presents the Company's long-lived assets by geographic area as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Long-lived assets, net: United States $ 1,264.2 83% $ 1,414.0 83% International 267.2 17% 280.1 17% $ 1,531.4 $ 1,694.1 |
Schedule of Net Sales by Classes of Similar Products | Three Months Ended March 31, 2020 2019 Classes of similar products: Net sales: Color cosmetics $ 130.0 29% $ 202.8 37% Fragrance 94.9 21% 110.3 20% Hair care 116.7 26% 128.7 23% Beauty care 46.1 10% 41.1 7% Skin care 65.3 14% 70.3 13% $ 453.0 $ 553.2 |
REVLON, INC. BASIC AND DILUTE_2
REVLON, INC. BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Components of Basic and Diluted Loss Per Share | Following are the components of Revlon's basic and diluted loss per common share for the periods presented: Three months ended March 31, 2020 2019 Numerator: Loss from continuing operations, net of taxes $ (213.9) $ (75.8) Income from discontinued operations, net of taxes — 0.7 Net loss $ (213.9) $ (75.1) Denominator: Weighted-average common shares outstanding – Basic 53,167,453 52,913,388 Effect of dilutive restricted stock and RSUs — — Weighted-average common shares outstanding – Diluted 53,167,453 52,913,388 Basic and Diluted (loss) earnings per common share: Continuing operations $ (4.02) $ (1.43) Discontinued operations — 0.01 Net loss per common share $ (4.02) $ (1.42) Unvested restricted stock and RSUs under the Stock Plan (a) 300,787 571,069 (a) These are outstanding common stock equivalents that were not included in the computation of Revlon's diluted earnings per common share because their inclusion would have had an anti-dilutive effect. |
PRODUCTS CORPORATION AND SUBS_2
PRODUCTS CORPORATION AND SUBSIDIARIES GUARANTOR FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | Products Corporation and Subsidiaries Condensed Consolidating Balance Sheets As of March 31, 2020 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 3.1 $ 2.4 $ 57.3 $ — $ 62.8 Trade receivables, less allowances for doubtful accounts 74.0 72.4 180.1 — 326.5 Inventories 146.5 157.0 176.3 — 479.8 Prepaid expenses and other 225.3 33.7 70.3 — 329.3 Intercompany receivables 3,021.1 3,013.0 476.8 (6,510.9) — Investment in subsidiaries 1,557.1 12.8 — (1,569.9) — Property, plant and equipment, net 200.4 77.4 105.3 — 383.1 Deferred income taxes 179.1 (17.2) 29.8 — 191.7 Goodwill 60.1 264.0 249.6 — 573.7 Intangible assets, net (11.9) 340.3 128.2 — 456.6 Other assets 69.2 15.3 33.5 — 118.0 Total assets $ 5,524.0 $ 3,971.1 $ 1,507.2 $ (8,080.8) $ 2,921.5 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 2.9 $ — $ 2.9 Current portion of long-term debt 856.0 — 0.1 — 856.1 Accounts payable 110.6 45.1 97.6 — 253.3 Accrued expenses and other 192.6 6.0 178.7 — 377.3 Intercompany payables 3,194.3 2,819.3 497.3 (6,510.9) — Long-term debt 2,322.3 — 83.2 — 2,405.5 Other long-term liabilities 176.6 113.7 38.0 — 328.3 Total liabilities 6,852.4 2,984.1 897.8 (6,510.9) 4,223.4 Stockholder’s (deficiency) equity (1,328.4) 987.0 609.4 (1,569.9) (1,301.9) Total liabilities and stockholder’s deficiency $ 5,524.0 $ 3,971.1 $ 1,507.2 $ (8,080.8) $ 2,921.5 Products Corporation and Subsidiaries Condensed Consolidating Balance Sheets As of December 31, 2019 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 0.8 $ 6.4 $ 97.1 $ — $ 104.3 Trade receivables, less allowances for doubtful accounts 95.5 92.3 235.6 — 423.4 Inventories 131.0 151.5 165.9 — 448.4 Prepaid expenses and other 219.7 26.4 46.5 — 292.6 Intercompany receivables 2,857.7 2,854.6 452.7 (6,165.0) — Investment in subsidiaries 1,598.3 30.7 — (1,629.0) — Property, plant and equipment, net 208.7 89.5 110.4 — 408.6 Deferred income taxes 165.0 (37.8) 30.9 — 158.1 Goodwill 159.9 264.0 249.8 — 673.7 Intangible assets, net 13.0 346.9 130.8 — 490.7 Other assets 67.8 16.2 37.1 — 121.1 Total assets $ 5,517.4 $ 3,840.7 $ 1,556.8 $ (7,794.0) $ 3,120.9 LIABILITIES AND STOCKHOLDER’S DEFICIENCY Short-term borrowings $ — $ — $ 2.2 $ — $ 2.2 Current portion of long-term debt 287.9 — 0.1 — 288.0 Accounts payable 108.4 39.9 103.5 — 251.8 Accrued expenses and other 124.1 70.0 224.1 — 418.2 Intercompany payables 3,030.3 2,668.7 466.0 (6,165.0) — Long-term debt 2,822.2 — 84.0 — 2,906.2 Other long-term liabilities 220.4 118.2 5.3 — 343.9 Total liabilities 6,593.3 2,896.8 885.2 (6,165.0) 4,210.3 Stockholder’s (deficiency) equity (1,075.9) 943.9 671.6 (1,629.0) (1,089.4) Total liabilities and stockholder’s deficiency $ 5,517.4 $ 3,840.7 $ 1,556.8 $ (7,794.0) $ 3,120.9 |
Condensed Income Statement and Statement of Comprehensive Income | Products Corporation and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income Three Months Ended March 31, 2020 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 116.4 $ 112.4 $ 224.2 $ — $ 453.0 Cost of sales 58.4 54.4 85.0 — 197.8 Gross profit 58.0 58.0 139.2 — 255.2 Selling, general and administrative expenses 104.4 71.0 112.0 — 287.4 Acquisition, integration and divestiture costs 1.1 0.5 0.5 — 2.1 Restructuring charges and other, net 23.6 1.3 (0.1) — 24.8 Impairment charges 124.3 — — — 124.3 Loss on divested assets 0.8 — — — 0.8 Operating (loss) income (196.2) (14.8) 26.8 — (184.2) Other (income) expense: Intercompany interest, net (2.8) 0.6 2.2 — — Interest expense 46.5 — 1.9 — 48.4 Amortization of debt issuance costs 4.0 — — — 4.0 Foreign currency losses, net (5.5) 1.9 20.2 — 16.6 Miscellaneous, net (23.9) (9.2) 29.0 — (4.1) Other expense (income), net 18.3 (6.7) 53.3 — 64.9 Loss from continuing operations before income taxes (214.5) (8.1) (26.5) — (249.1) Benefit from for income taxes (16.3) (20.2) (0.4) — (36.9) Loss from continuing operations, net of taxes (198.2) 12.1 (26.1) — (212.2) Income from discontinued operations, net of taxes — — — — — Equity in (income) loss of subsidiaries (34.1) (20.0) — 54.1 — Net (loss) income $ (232.3) $ (7.9) $ (26.1) $ 54.1 $ (212.2) Other comprehensive (loss) income (2.7) 6.5 (8.8) 2.3 (2.7) Total comprehensive (loss) income $ (235.0) $ (1.4) $ (34.9) $ 56.4 $ (214.9) Products Corporation and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income Three Months Ended March 31, 2019 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 155.5 $ 129.3 $ 271.2 $ (2.8) $ 553.2 Cost of sales 68.0 65.1 107.5 (2.8) 237.8 Gross profit 87.5 64.2 163.7 — 315.4 Selling, general and administrative expenses 129.7 75.1 126.0 — 330.8 Acquisition, integration and divestiture costs 0.5 0.1 — — 0.6 Restructuring charges and other, net 1.6 2.1 1.8 — 5.5 Operating (loss) income (44.3) (13.1) 35.9 — (21.5) Other (income) expenses: Intercompany interest, net (1.3) 0.7 0.6 — — Interest expense 45.9 — 1.8 — 47.7 Amortization of debt issuance costs 3.2 — — — 3.2 Foreign currency losses, net (1.5) — 1.7 — 0.2 Miscellaneous, net (7.9) (13.5) 22.7 — 1.3 Other expense (income), net 38.4 (12.8) 26.8 — 52.4 (Loss) income from continuing operations before income taxes (82.7) (0.3) 9.1 — (73.9) (Benefit from) provision for income taxes (1.8) 0.5 1.6 — 0.3 (Loss) income from continuing operations, net of taxes (80.9) (0.8) 7.5 — (74.2) Loss from discontinued operations, net of taxes — — 0.7 — 0.7 Equity in loss (income) of subsidiaries 7.4 5.4 — (12.8) — Net (loss) income $ (73.5) $ 4.6 $ 8.2 $ (12.8) $ (73.5) Other comprehensive (loss) income 0.9 (0.1) 0.6 (0.5) 0.9 Total comprehensive (loss) income $ (72.6) $ 4.5 $ 8.8 $ (13.3) $ (72.6) |
Condensed Cash Flow Statement | Products Corporation and Subsidiaries Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2020 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash (used in) provided by operating activities $ (57.7) $ 3.1 $ (23.0) $ — $ (77.6) CASH FLOWS FROM INVESTING ACTIVITIES: Net cash (used in) provided by investing activities (1.8) (0.1) 0.1 — (1.8) CASH FLOWS FROM FINANCING ACTIVITIES: Net decrease in short-term borrowings and overdraft (2.1) (4.8) 0.5 — (6.4) Net borrowings under the Amended 2016 Revolving Credit Facility 69.1 — — — 69.1 Repayments under the 2016 Term Loan Facility (4.5) — — — (4.5) Payment of financing costs (0.3) — — — (0.3) Tax withholdings related to net share settlements of restricted stock and RSUs (0.4) — — — (0.4) Other financing activities (0.1) — — — (0.1) Net cash provided by (used in) financing activities 61.7 (4.8) 0.5 — 57.4 Effect of exchange rate changes on cash, cash equivalents and restricted cash — (2.1) (1.2) — (3.3) Net increase (decrease) in cash, cash equivalents and restricted cash 2.2 (3.9) (23.6) — (25.3) Cash, cash equivalents and restricted cash at beginning of period $ 1.0 $ 6.4 $ 97.2 $ — $ 104.5 Cash, cash equivalents and restricted cash at end of period $ 3.2 $ 2.5 $ 73.6 $ — $ 79.2 Products Corporation and Subsidiaries Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2019 Products Corporation Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash used in operating activities $ (24.0) $ 2.7 $ (7.1) $ — $ (28.4) CASH FLOWS FROM INVESTING ACTIVITIES: Net cash used in investing activities (3.4) — (2.4) — (5.8) CASH FLOWS FROM FINANCING ACTIVITIES: Net decrease in short-term borrowings and overdraft (12.5) (4.2) (0.5) — (17.2) Repayments under the 2016 Term Loan Facility (4.5) — — — (4.5) Net borrowings under the Amended 2016 Revolving Credit Facility 40.6 — — — 40.6 Payments of financing costs (0.3) — (0.6) — (0.9) Tax withholdings related to net share settlements of restricted stock and RSUs (1.6) — — — (1.6) Other financing activities (0.2) — — — (0.2) Net cash provided by financing activities 21.5 (4.2) (1.1) — 16.2 Effect of exchange rate changes on cash, cash equivalents and restricted cash — 0.1 0.2 — 0.3 Net decrease in cash, cash equivalents and restricted cash (5.9) (1.4) (10.4) — (17.7) Cash, cash equivalents and restricted cash at beginning of period $ 7.2 $ 6.6 $ 73.7 $ — 87.5 Cash, cash equivalents and restricted cash at end of period $ 1.3 $ 5.2 $ 63.3 $ — $ 69.8 |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020reporting_unitsegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reporting units | reporting_unit | 4 |
Number of reporting segments | segment | 4 |
RESTRUCTURING CHARGES - Narrati
RESTRUCTURING CHARGES - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | 17 Months Ended | 24 Months Ended | ||
Mar. 31, 2020USD ($)job_position | Mar. 31, 2020USD ($)job_position | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related charges | $ 24.8 | ||||||
Payments for restructuring | 3.6 | ||||||
2018 Optimization Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related charges | 0.3 | ||||||
Payments for restructuring | $ 29.1 | ||||||
Restructuring costs recognized to date | $ 39.8 | $ 39.8 | 39.8 | $ 39.5 | |||
2018 Optimization Restructuring Program | Scenario, Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Payments for restructuring | $ 35 | ||||||
Revlon 2020 Restructuring Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected number of positions eliminated | job_position | 1,000 | ||||||
Expected number of current employee positions to be eliminated | job_position | 650 | ||||||
Number of open positions eliminated | job_position | 350 | ||||||
Number of positions eliminated | job_position | 700 | ||||||
Restructuring costs recognized to date | $ 34.4 | $ 34.4 | $ 34.4 | ||||
Revlon 2020 Restructuring Plan | Minimum | Scenario, Forecast | Employee Severance, Retention and Other Contractual Termination Benefits | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related charges | 60 | $ 75 | |||||
Payments for restructuring | $ 40 | 55 | |||||
Revlon 2020 Restructuring Plan | Maximum | Scenario, Forecast | Employee Severance, Retention and Other Contractual Termination Benefits | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related charges | 70 | $ 85 | |||||
Payments for restructuring | $ 45 | $ 65 |
RESTRUCTURING CHARGES - Restruc
RESTRUCTURING CHARGES - Restructuring and Related Charges Activity (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
Charges incurred during period | $ 24.8 |
Revlon 2020 Restructuring Plan | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through end of period | 34.4 |
Revlon 2020 Restructuring Plan | Employee Severance and Other Personnel Benefits | |
Restructuring Reserve [Roll Forward] | |
Charges incurred during period | 25.6 |
Charges incurred through end of period | 25.6 |
Revlon 2020 Restructuring Plan | Other Costs | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through end of period | 0 |
Revlon 2020 Restructuring Plan | Total Restructuring Charges | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through end of period | 25.6 |
Revlon 2020 Restructuring Plan | Leases | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through end of period | 8.6 |
Revlon 2020 Restructuring Plan | Other Related Charges | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through end of period | 0.2 |
Revlon 2020 Restructuring Plan | Accelerated Rent Expense, Abandoned Leases | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through end of period | 3.5 |
Revlon 2020 Restructuring Plan | Disposal of Leasehold Improvements and Other Equipment | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through end of period | 3 |
Revlon 2020 Restructuring Plan | Restructuring Related Rent Expense | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through end of period | 1.2 |
Revlon 2020 Restructuring Plan | Disposal of Leasehold Improvements and Other Equipment, Abandoned Leases | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through end of period | 0.9 |
2018 Optimization Restructuring Program | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through beginning of period | 39.5 |
Charges incurred during period | 0.3 |
Charges incurred through end of period | 39.8 |
2018 Optimization Restructuring Program | Employee Severance and Other Personnel Benefits | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through beginning of period | 20.3 |
Charges incurred during period | (0.4) |
Charges incurred through end of period | 19.9 |
2018 Optimization Restructuring Program | Other Costs | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through beginning of period | 0.3 |
Charges incurred during period | 0 |
Charges incurred through end of period | 0.3 |
2018 Optimization Restructuring Program | Total Restructuring Charges | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through beginning of period | 20.6 |
Charges incurred during period | (0.4) |
Charges incurred through end of period | 20.2 |
2018 Optimization Restructuring Program | Inventory Adjustments | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through beginning of period | 4.9 |
Charges incurred during period | 0 |
Charges incurred through end of period | 4.9 |
2018 Optimization Restructuring Program | Other Related Charges | |
Restructuring Reserve [Roll Forward] | |
Charges incurred through beginning of period | 14 |
Charges incurred during period | 0.7 |
Charges incurred through end of period | $ 14.7 |
RESTRUCTURING CHARGES - Restr_2
RESTRUCTURING CHARGES - Restructuring and Related Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | $ 24.8 | |
Revlon 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 34.4 | |
2018 Optimization Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | 0.3 | |
Cumulative charges incurred | 39.8 | $ 39.5 |
Operating segments | Revlon 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 25.6 | |
Operating segments | 2018 Optimization Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | (0.4) | |
Cumulative charges incurred | 20.2 | |
Operating segments | Revlon | Revlon 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 10.3 | |
Operating segments | Revlon | 2018 Optimization Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | (0.2) | |
Cumulative charges incurred | 8.6 | |
Operating segments | Elizabeth Arden | Revlon 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 5.4 | |
Operating segments | Elizabeth Arden | 2018 Optimization Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | (0.1) | |
Cumulative charges incurred | 4.2 | |
Operating segments | Portfolio | Revlon 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 6.1 | |
Operating segments | Portfolio | 2018 Optimization Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | 0 | |
Cumulative charges incurred | 4 | |
Operating segments | Fragrance | Revlon 2020 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 3.8 | |
Operating segments | Fragrance | 2018 Optimization Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | (0.1) | |
Cumulative charges incurred | $ 3.4 |
RESTRUCTURING CHARGES - Restr_3
RESTRUCTURING CHARGES - Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 17 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Liability Balance at period start | $ 10 | |
Expense, Net | 24.8 | |
Foreign Currency Translation | (0.1) | |
Cash utilized, net | (3.6) | |
Non-cash utilized, net | 0 | |
Liability Balance at period end | 31.1 | $ 31.1 |
Revlon 2020 Restructuring Plan | Employee severance and other personnel benefits | ||
Restructuring Reserve [Roll Forward] | ||
Liability Balance at period start | 0 | |
Expense, Net | 25.6 | |
Foreign Currency Translation | 0 | |
Cash utilized, net | (0.8) | |
Non-cash utilized, net | 0 | |
Liability Balance at period end | 24.8 | 24.8 |
2018 Optimization Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Expense, Net | 0.3 | |
Cash utilized, net | (29.1) | |
2018 Optimization Restructuring Program | Employee severance and other personnel benefits | ||
Restructuring Reserve [Roll Forward] | ||
Liability Balance at period start | 5.7 | |
Expense, Net | (0.4) | |
Foreign Currency Translation | 0 | |
Cash utilized, net | (2.5) | |
Non-cash utilized, net | 0 | |
Liability Balance at period end | 2.8 | 2.8 |
Other immaterial actions | Employee severance and other personnel benefits | ||
Restructuring Reserve [Roll Forward] | ||
Liability Balance at period start | 4.3 | |
Expense, Net | (0.4) | |
Foreign Currency Translation | (0.1) | |
Cash utilized, net | (0.3) | |
Non-cash utilized, net | 0 | |
Liability Balance at period end | $ 3.5 | $ 3.5 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 363.9 | $ 326.5 |
Raw materials and supplies | 104.1 | 110.4 |
Work-in-process | 11.8 | 11.5 |
Inventories | $ 479.8 | $ 448.4 |
LEASES AND PROPERTY, PLANT AN_3
LEASES AND PROPERTY, PLANT AND EQUIPMENT - Lease Cost and Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finance Lease Cost: | |||
Amortization of ROU assets | $ 0.1 | $ 0 | |
Interest on lease liabilities | 0 | 0 | |
Operating Lease Cost | 13 | 10.6 | |
Total Lease Cost | 13.1 | 10.6 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from finance leases | 0 | 0 | |
Operating cash flows from operating leases | 9.9 | 11 | |
Financing cash flows from finance leases | 0.1 | $ 0.2 | |
ROU assets for finance leases | 0.9 | $ 1 | |
ROU assets for operating leases | 90.8 | 91.4 | |
Accumulated amortization on ROU assets for finance leases | 0.4 | 0.3 | |
Accumulated amortization on ROU assets for operating leases | $ 26.3 | $ 23.2 | |
Weighted-average remaining lease term - finance leases | 2 years 7 months 6 days | 2 years 9 months 18 days | |
Weighted-average remaining lease term - operating leases | 6 years | 6 years 2 months 12 days | |
Weighted-average discount rate - finance leases | 15.00% | 15.60% | |
Weighted-average discount rate - operating leases | 15.70% | 15.80% |
LEASES AND PROPERTY, PLANT AN_4
LEASES AND PROPERTY, PLANT AND EQUIPMENT - Maturities of Lease Liabilities (Details) $ in Millions | Mar. 31, 2020USD ($) |
Operating Leases | |
April 2020 through December 2020 | $ 26.4 |
2021 | 32.8 |
2022 | 26.2 |
2023 | 21.9 |
2024 | 16.5 |
Thereafter | 46.7 |
Total undiscounted cash flows | 170.5 |
Short-term lease liability | 19.2 |
Long-term lease liability | 89.2 |
Total lease liability | 108.4 |
Difference between undiscounted cash flows and discounted cash flows | 62.1 |
Finance Leases | |
April 2020 through December 2020 | 0.5 |
2021 | 0.5 |
2022 | 0.3 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total undiscounted cash flows | 1.3 |
Short-term lease liability | 0.5 |
Long-term lease liability | 0.4 |
Total lease liability | 0.9 |
Difference between undiscounted cash flows and discounted cash flows | $ 0.4 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||
Goodwill | $ 573,700,000 | $ 673,700,000 | |
Goodwill impairment charge | 99,800,000 | ||
Tax benefit due to nondeductible impairment losses | 37,200,000 | $ (100,000) | |
Indefinite-lived intangible assets impairment | 24,500,000 | 0 | |
Amortization expense | $ 8,500,000 | $ 14,800,000 | |
Weighted-average cost of capital | Minimum | |||
Goodwill [Line Items] | |||
Goodwill measurement input | 11.50% | ||
Weighted-average cost of capital | Maximum | |||
Goodwill [Line Items] | |||
Goodwill measurement input | 12.00% | ||
Perpetual growth rate | |||
Goodwill [Line Items] | |||
Goodwill measurement input | 2.00% | ||
Goodwill | |||
Goodwill [Line Items] | |||
Tax benefit due to nondeductible impairment losses | $ 8,300,000 | ||
Intangible assets | |||
Goodwill [Line Items] | |||
Tax benefit due to nondeductible impairment losses | 5,100,000 | ||
Operating segments | |||
Goodwill [Line Items] | |||
Goodwill | 573,700,000 | 673,700,000 | |
Goodwill impairment charge | 99,800,000 | ||
Indefinite-lived intangible assets impairment | 24,500,000 | ||
Portfolio | Operating segments | |||
Goodwill [Line Items] | |||
Goodwill | 97,200,000 | $ 171,100,000 | |
Goodwill impairment charge | 73,900,000 | ||
Indefinite-lived intangible assets impairment | 2,500,000 | ||
Revlon Reporting Unit | Operating segments | |||
Goodwill [Line Items] | |||
Goodwill | 264,700,000 | ||
Elizabeth Arden Skin and Color Reporting Unit | |||
Goodwill [Line Items] | |||
Goodwill | 67,400,000 | ||
Fragrances Reporting Unit | Operating segments | |||
Goodwill [Line Items] | |||
Goodwill | 120,800,000 | ||
Mass Portfolio Reporting Unit | Portfolio | |||
Goodwill [Line Items] | |||
Goodwill | 0 | ||
Goodwill impairment charge | 54,300,000 | ||
Professional Portfolio Reporting Unit | Portfolio | |||
Goodwill [Line Items] | |||
Goodwill impairment charge | 19,600,000 | ||
Elizabeth Arden Fragrances Reporting Unit | Elizabeth Arden | |||
Goodwill [Line Items] | |||
Goodwill | 23,500,000 | ||
Goodwill impairment charge | 25,900,000 | ||
Mass Portfolio, EA Fragrances and EA Skin and Color Reporting Units | COVID-19 | |||
Goodwill [Line Items] | |||
Indefinite-lived intangible assets impairment | $ 24,500,000 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET - Changes in Goodwill by Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 673.7 |
Goodwill impairment charge | (99.8) |
Ending Balance | 573.7 |
Operating segments | |
Goodwill [Roll Forward] | |
Beginning Balance | 673.7 |
Foreign currency translation adjustment | (0.2) |
Goodwill impairment charge | (99.8) |
Ending Balance | 573.7 |
Cumulative goodwill impairment charges | (155) |
Operating segments | Revlon | |
Goodwill [Roll Forward] | |
Beginning Balance | 264.9 |
Foreign currency translation adjustment | (0.2) |
Goodwill impairment charge | |
Operating segments | Portfolio | |
Goodwill [Roll Forward] | |
Beginning Balance | 171.1 |
Foreign currency translation adjustment | 0 |
Goodwill impairment charge | (73.9) |
Ending Balance | 97.2 |
Operating segments | Elizabeth Arden | |
Goodwill [Roll Forward] | |
Beginning Balance | 116.9 |
Foreign currency translation adjustment | 0 |
Goodwill impairment charge | (25.9) |
Ending Balance | 91 |
Operating segments | Fragrance | |
Goodwill [Roll Forward] | |
Beginning Balance | 120.8 |
Foreign currency translation adjustment | 0 |
Goodwill impairment charge | $ 0 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET - Finite-lived and Indefinite-lived Intangible Asset Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Indefinite-lived intangible assets | $ (24.5) | $ 0 |
Total Intangibles Impairment | (24.5) | $ 0 |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Indefinite-lived intangible assets | (24.5) | |
Total Intangibles Impairment | (24.5) | |
Revlon | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Indefinite-lived intangible assets | 0 | |
Total Intangibles Impairment | 0 | |
Portfolio | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Indefinite-lived intangible assets | (2.5) | |
Total Intangibles Impairment | (2.5) | |
Elizabeth Arden | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Indefinite-lived intangible assets | (22) | |
Total Intangibles Impairment | (22) | |
Fragrance | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Indefinite-lived intangible assets | 0 | |
Total Intangibles Impairment | $ 0 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS, NET - Summary of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 572.4 | $ 573.3 |
Finite-lived intangible assets, accumulated amortization | (234.2) | (226.4) |
Finite-lived intangible assets, impairment | 0 | 0 |
Finite-lived intangible assets, net carrying amount | 338.2 | 346.9 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross carrying amount | 142.9 | 143.8 |
Indefinite-lived intangible assets, impairment | (24.5) | 0 |
Indefinite-lived intangible assets, net carrying amount | 118.4 | 143.8 |
Intangible assets, gross carrying amount | 715.3 | 717.1 |
Total Intangibles Impairment | (24.5) | 0 |
Intangible assets, net carrying amount | 456.6 | 490.7 |
Trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross carrying amount | 142.9 | 143.8 |
Indefinite-lived intangible assets, impairment | (24.5) | 0 |
Indefinite-lived intangible assets, net carrying amount | 118.4 | 143.8 |
Trademarks and licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | 271 | 271.2 |
Finite-lived intangible assets, accumulated amortization | (114.8) | (110.9) |
Finite-lived intangible assets, impairment | 0 | 0 |
Finite-lived intangible assets, net carrying amount | $ 156.2 | $ 160.3 |
Weighted average useful life | 13 years | 13 years |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 247.4 | $ 248.3 |
Finite-lived intangible assets, accumulated amortization | (99.4) | (96.5) |
Finite-lived intangible assets, impairment | 0 | 0 |
Finite-lived intangible assets, net carrying amount | $ 148 | $ 151.8 |
Weighted average useful life | 11 years | 11 years |
Patents and internally-developed intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 21.7 | $ 21.5 |
Finite-lived intangible assets, accumulated amortization | (12.6) | (12.1) |
Finite-lived intangible assets, impairment | 0 | 0 |
Finite-lived intangible assets, net carrying amount | $ 9.1 | $ 9.4 |
Weighted average useful life | 5 years | 5 years |
Distribution rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 31 | $ 31 |
Finite-lived intangible assets, accumulated amortization | (6.1) | (5.6) |
Finite-lived intangible assets, impairment | 0 | 0 |
Finite-lived intangible assets, net carrying amount | $ 24.9 | $ 25.4 |
Weighted average useful life | 14 years | 15 years |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross carrying amount | $ 1.3 | $ 1.3 |
Finite-lived intangible assets, accumulated amortization | (1.3) | (1.3) |
Finite-lived intangible assets, impairment | 0 | 0 |
Finite-lived intangible assets, net carrying amount | $ 0 | $ 0 |
Weighted average useful life | 0 years | 0 years |
GOODWILL AND INTANGIBLE ASSET_7
GOODWILL AND INTANGIBLE ASSETS, NET - Estimated Future Amortization Expense (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 25.6 | |
2021 | 33.2 | |
2022 | 32.3 | |
2023 | 30.8 | |
2024 | 27.5 | |
Thereafter | 188.8 | |
Finite-lived intangible assets, net carrying amount | $ 338.2 | $ 346.9 |
ACCRUED EXPENSES AND OTHER - Co
ACCRUED EXPENSES AND OTHER - Components of Accrued Expenses and Other (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Accrued Liabilities [Line Items] | ||
Sales returns and allowances | $ 76.8 | $ 89.7 |
Advertising, marketing and promotional costs | 63.3 | 82.8 |
Taxes | 46.5 | 54.3 |
Compensation and related benefits | 30.7 | 42.1 |
Interest | 18.8 | 34 |
Professional services and insurance | 18.4 | 16.3 |
Short term lease liability | 19.7 | 14.5 |
Freight and distribution costs | 8.7 | 13.2 |
Restructuring reserve | 31.1 | 10 |
Software | 3.8 | 4 |
Other | 56.3 | 54 |
Total | 374.1 | 414.9 |
Employee Severance and Other Personnel Benefits | Mr. Fabian Garcia | ||
Schedule of Accrued Liabilities [Line Items] | ||
Other | 2.3 | |
Revlon Consumer Products Corporation | ||
Schedule of Accrued Liabilities [Line Items] | ||
Taxes | 49.7 | 57.6 |
Total | $ 377.3 | $ 418.2 |
DEBT - Components of Long-term
DEBT - Components of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,261.6 | $ 3,194.2 |
Less current portion | (856.1) | (288) |
Long-term debt | 2,405.5 | 2,906.2 |
Short-term borrowings | 2.9 | 2.2 |
2019 Term Loan Facility due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 187.7 | 187.1 |
2018 Foreign Asset-Based Term Loan Credit Agreement due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 81.5 | 82.3 |
Amended 2016 Revolving Credit Facility due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 339.5 | 269.9 |
Less current portion | (339.5) | (269.9) |
2016 Term Loan due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,710.9 | 1,713.6 |
5.75% Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 498.5 | 498.1 |
Less current portion | $ (498.5) | |
Stated interest rate (as a percent) | 5.75% | |
6.25% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 443.1 | 442.8 |
Stated interest rate (as a percent) | 6.25% | |
Spanish Government Loan due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0.4 | $ 0.4 |
DEBT - Components of Long-ter_2
DEBT - Components of Long-term Debt, Footnotes (Details) | 12 Months Ended | ||||
Mar. 31, 2021USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Apr. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |||||
Current portion of long-term debt | $ 288,000,000 | $ 856,100,000 | |||
Outstanding borrowings | 3,194,200,000 | 3,261,600,000 | |||
Revlon Consumer Products Corporation | |||||
Debt Instrument [Line Items] | |||||
Current portion of long-term debt | 288,000,000 | 856,100,000 | |||
5.75% Senior Notes due 2021 | |||||
Debt Instrument [Line Items] | |||||
Current portion of long-term debt | $ 498,500,000 | ||||
Stated interest rate (as a percent) | 5.75% | 5.75% | |||
Outstanding borrowings | 498,100,000 | $ 498,500,000 | |||
5.75% Senior Notes due 2021 | Revlon Consumer Products Corporation | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 5.75% | 5.75% | |||
Aggregate principal amount outstanding | $ 500,000,000 | ||||
Amended 2016 Revolving Credit Facility due 2021 | |||||
Debt Instrument [Line Items] | |||||
Current portion of long-term debt | 269,900,000 | 339,500,000 | |||
Outstanding borrowings | 269,900,000 | 339,500,000 | |||
Amended 2016 Revolving Credit Facility due 2021 | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 441,500,000 | ||||
Amended 2016 Revolving Credit Facility due 2021 | Scenario, Forecast | |||||
Debt Instrument [Line Items] | |||||
Repayment of debt | $ 18,000,000 | ||||
2016 Term Loan due 2023 | |||||
Debt Instrument [Line Items] | |||||
Repayment of debt | 18,000,000 | ||||
Outstanding borrowings | 1,713,600,000 | 1,710,900,000 | |||
2016 Term Loan due 2023 | Revlon Consumer Products Corporation | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount outstanding | 1,737,000,000 | ||||
2019 Term Loan Facility due 2023 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount outstanding | 200,000,000 | ||||
Outstanding borrowings | 187,100,000 | 187,700,000 | |||
Amended And Restated Senior Subordinated Term Loan Due 2014 | Secured debt | Revlon Consumer Products Corporation | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | € | € 77,000,000 | ||||
Tranche B | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 41,500,000 | ||||
Tranche B | Revolving credit facility | Revlon Consumer Products Corporation | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 41,500,000 | ||||
Outstanding borrowings | 34,800,000 | ||||
Tranche A | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 400,000,000 | ||||
Tranche A | Revolving credit facility | Revlon Consumer Products Corporation | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 400,000,000 | ||||
Amount by which available liquidity does not exceed principal amount of other debt | $ 200,000,000 | ||||
Outstanding borrowings | 306,700,000 | ||||
Tranche A | Sublimit, letters of credit | Revlon Consumer Products Corporation | |||||
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 11,000,000 | ||||
6.25% Senior Notes due 2024 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 6.25% | 6.25% | |||
Outstanding borrowings | $ 442,800,000 | $ 443,100,000 | |||
6.25% Senior Notes due 2024 | Revlon Consumer Products Corporation | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 6.25% | 6.25% | |||
Aggregate principal amount outstanding | $ 450,000,000 | ||||
2019 Senior Line of Credit Agreement | Line of Credit | Revlon Consumer Products Corporation | |||||
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 0 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($)director | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||
Cash and cash equivalents | $ 62,800,000 | $ 62,800,000 | $ 104,300,000 |
COVID-19 | |||
Debt Instrument [Line Items] | |||
Percentage of employees furloughed | 40.00% | ||
Percentage reduction in Board and committee compensation | 50.00% | ||
Number of non-independent directors with consulting agreements | director | 2 | ||
Minimum | COVID-19 | |||
Debt Instrument [Line Items] | |||
Percentage reduction in executive and employee compensation | 20.00% | ||
Maximum | COVID-19 | |||
Debt Instrument [Line Items] | |||
Percentage reduction in executive and employee compensation | 40.00% | ||
Foreign Subsidiaries | |||
Debt Instrument [Line Items] | |||
Cash and cash equivalents | 57,700,000 | $ 57,700,000 | |
Revlon Consumer Products Corporation | |||
Debt Instrument [Line Items] | |||
Cash and cash equivalents | 62,800,000 | 62,800,000 | $ 104,300,000 |
Jefferies Facilities | Revlon Consumer Products Corporation | Secured debt | |||
Debt Instrument [Line Items] | |||
Commitment | $ 850,000,000 | 850,000,000 | |
Covenant springing maturity, number of days prior to the maturity date | 91 days | ||
Fees and expenses capitalized | $ 3,900,000 | $ 3,900,000 | |
5.75% Senior Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.75% | 5.75% | |
5.75% Senior Notes due 2021 | Revlon Consumer Products Corporation | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.75% | 5.75% | |
Jefferies Brandco Facility | Revlon Consumer Products Corporation | Secured debt | |||
Debt Instrument [Line Items] | |||
Commitment | $ 300,000,000 | $ 300,000,000 | |
Jefferies Specified Brands Facility | Revlon Consumer Products Corporation | Secured debt | |||
Debt Instrument [Line Items] | |||
Commitment | $ 550,000,000 | $ 550,000,000 | |
6.25% Senior Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 6.25% | 6.25% | |
6.25% Senior Notes due 2024 | Revlon Consumer Products Corporation | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 6.25% | 6.25% | |
Covenant springing maturity threshold amount, minimum | $ 100,000,000 | $ 100,000,000 |
DEBT - Covenants (Details)
DEBT - Covenants (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2018 | |
Amended 2019 Senior Line of Credit Facility | |||
Debt Instrument [Line Items] | |||
Commitment | $ 30,000,000 | ||
Aggregate principal amount outstanding | 0 | ||
Availability | 30,000,000 | ||
Revolving credit facility | Tranche A | |||
Debt Instrument [Line Items] | |||
Commitment | 400,000,000 | ||
Borrowing Base | 352,000,000 | ||
Aggregate principal amount outstanding | 306,700,000 | ||
Availability | 34,300,000 | ||
Revolving credit facility | Tranche A | Revlon Consumer Products Corporation | |||
Debt Instrument [Line Items] | |||
Commitment | $ 400,000,000 | ||
Revolving credit facility | Tranche B | |||
Debt Instrument [Line Items] | |||
Commitment | 41,500,000 | ||
Borrowing Base | 34,800,000 | ||
Aggregate principal amount outstanding | 34,800,000 | ||
Availability | 0 | ||
Revolving credit facility | Tranche B | Revlon Consumer Products Corporation | |||
Debt Instrument [Line Items] | |||
Commitment | $ 41,500,000 | ||
Revolving credit facility | Amended 2016 Revolving Credit Facility due 2021 | |||
Debt Instrument [Line Items] | |||
Commitment | 441,500,000 | ||
Borrowing Base | 386,800,000 | ||
Aggregate principal amount outstanding | 341,500,000 | ||
Availability | $ 34,300,000 | ||
Revolving credit facility | Amended 2016 Revolving Credit Facility due 2021 | Revlon Consumer Products Corporation | |||
Debt Instrument [Line Items] | |||
Covenant terms, consolidated fixed charge coverage ratio | 100.00% | ||
Sublimit, letters of credit | |||
Debt Instrument [Line Items] | |||
Standby and trade letters of credit for various corporate purposes | $ 11,000,000 | $ 11,400,000 | |
Sublimit, letters of credit | Tranche A | |||
Debt Instrument [Line Items] | |||
Standby and trade letters of credit for various corporate purposes | $ 11,000,000 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Values of Financial Liabilities (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets required to be measured at fair value | $ 0 | $ 0 |
Financial liabilities required to be measured at fair value | 0 | 0 |
Liabilities: | ||
Long-term debt, including current portion | 1,768,300,000 | 2,522,200,000 |
Long-term debt, including current portion, Carrying Value | 3,261,600,000 | 3,194,200,000 |
Level 1 | ||
Liabilities: | ||
Long-term debt, including current portion | 0 | 0 |
Level 2 | ||
Liabilities: | ||
Long-term debt, including current portion | 1,768,300,000 | 2,522,200,000 |
Level 3 | ||
Liabilities: | ||
Long-term debt, including current portion | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Standby letters of credit which support Products Corporation self insurance programs | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Standby and trade letters of credit for various corporate purposes | $ 8.3 | $ 8.3 |
Sublimit, letters of credit | ||
Fair Value Measurements Of Financial Instruments [Line Items] | ||
Standby and trade letters of credit for various corporate purposes | $ 11 | $ 11.4 |
PENSION AND POST-RETIREMENT B_3
PENSION AND POST-RETIREMENT BENEFITS - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Net periodic benefit costs: | |||
Total net periodic benefit costs | $ 1.2 | $ 2 | $ 7.2 |
Pension Plans | |||
Net periodic benefit costs: | |||
Service cost | 0.4 | 0.5 | |
Interest cost | 3.7 | 4.9 | |
Expected return on plan assets | (5.8) | (6) | |
Amortization of actuarial loss | 2.7 | 2.4 | |
Total net periodic benefit costs prior to allocation | 1 | 1.8 | |
Portion allocated to Revlon Holdings | 0 | 0 | |
Total net periodic benefit costs | 1 | 1.8 | |
Other Post-Retirement Benefit Plans | |||
Net periodic benefit costs: | |||
Service cost | 0 | 0 | |
Interest cost | 0.1 | 0.1 | |
Expected return on plan assets | 0 | 0 | |
Amortization of actuarial loss | 0.1 | 0.1 | |
Total net periodic benefit costs prior to allocation | 0.2 | 0.2 | |
Portion allocated to Revlon Holdings | 0 | 0 | |
Total net periodic benefit costs | $ 0.2 | $ 0.2 |
PENSION AND POST-RETIREMENT B_4
PENSION AND POST-RETIREMENT BENEFITS - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($)plan | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Retirement Benefits [Abstract] | ||||
Net periodic benefit cost | $ 1.2 | $ 2 | $ 7.2 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net periodic benefit cost | 1.2 | 2 | $ 7.2 | |
Aggregate employer contributions during 2020 | 18 | |||
Scenario, Forecast | ||||
Retirement Benefits [Abstract] | ||||
Net periodic benefit cost | $ 5 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net periodic benefit cost | $ 5 | |||
Pension Plans | ||||
Retirement Benefits [Abstract] | ||||
Net periodic benefit cost | 1 | 1.8 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net periodic benefit cost | 1 | 1.8 | ||
Employer contributions | 3.4 | |||
Pension Plans | Qualified Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer contributions | $ 1.6 | |||
Number of qualified plans | plan | 2 | |||
Pension Plans | CARES Act | Qualified Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer contributions, expected deferral | $ 9 | |||
Other Post-Retirement Benefit Plans | ||||
Retirement Benefits [Abstract] | ||||
Net periodic benefit cost | 0.2 | 0.2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net periodic benefit cost | 0.2 | $ 0.2 | ||
Employer contributions | $ 0.2 |
PENSION AND POST-RETIREMENT B_5
PENSION AND POST-RETIREMENT BENEFITS - Classification of Net Periodic Pension (Income) Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total net periodic benefit costs | $ 1.2 | $ 2 | $ 7.2 |
Selling, general and administrative expense | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total net periodic benefit costs | 0.4 | 0.5 | |
Miscellaneous, net | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total net periodic benefit costs | $ 0.8 | $ 1.5 |
STOCK COMPENSATION PLAN - Narra
STOCK COMPENSATION PLAN - Narrative (Details) $ in Millions | Sep. 05, 2019USD ($)installmentshares | Aug. 31, 2019 | Jul. 31, 2014 | Mar. 31, 2020USD ($)shares | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($)shares | Mar. 31, 2020USD ($)shares | Sep. 30, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares reserved for issuance (in shares) | shares | 6,565,000 | 6,565,000 | 6,565,000 | |||||
Shares remaining available for grants (in shares) | shares | 2,400,000 | 2,400,000 | 2,400,000 | |||||
Renewal term | 7 years | |||||||
Vesting period | 3 years | 2 years | ||||||
Common stock not subject to vesting requirements (in shares) | shares | 250,000 | |||||||
Stock-based compensation amortization | $ 2.4 | $ 0.4 | ||||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Accelerated cost | $ 1 | |||||||
Revlon 2019 Transaction Incentive Program | Acquisition, Integration and Divestiture Costs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Cash-based awards granted, amortization expense | $ 1.4 | $ 2.7 | ||||||
Revlon 2019 Transaction Incentive Program | Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Accelerated cost | $ 0.7 | |||||||
Revlon 2019 Transaction Incentive Program, Tier 1 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Cash-based awards | $ 6.8 | |||||||
Number of installments | installment | 2 | |||||||
Cash-based awards granted, net of forfeitures | 5.1 | |||||||
Revlon 2019 Transaction Incentive Program, Tier 1 | Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Proportion settled in cash | 67.00% | |||||||
Proportion settled in RSU's | 33.00% | |||||||
Number of shares authorized (in shares) | shares | 206,812 | |||||||
Shares issued in period (in shares) | shares | 204,151 | |||||||
Accelerated vesting, number of awards (in shares) | shares | 21,077 | 21,077 | ||||||
Revlon 2019 Transaction Incentive Program, Tier 1 | Restricted Stock | First Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting percentage | 50.00% | |||||||
Revlon 2019 Transaction Incentive Program, Tier 1 | Restricted Stock | Second Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting percentage | 50.00% | |||||||
Revlon 2019 Transaction Incentive Program, Tier 2 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Cash-based awards | $ 2.5 | |||||||
Number of installments | installment | 1 | |||||||
Cash-based awards granted, net of forfeitures | 2 | |||||||
Revlon 2019 Transaction Incentive Program, Tier 2 | Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting percentage | 100.00% | |||||||
LTIP Plan | Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Accelerated vesting, number of awards (in shares) | shares | 23,888 | 29,350 | ||||||
LTIP Plan | Time-Based RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Awards granted (in shares) | shares | 648,400 | |||||||
LTIP Plan | Performance-Based RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Awards granted (in shares) | shares | 648,400 | |||||||
Stock-based compensation amortization | $ 3.3 | |||||||
Deferred stock-based compensation | $ 21.4 | 21.4 | $ 21.4 | |||||
LTIP Plan | Time-based and Performance-based RSU Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted (in shares) | shares | 1,300,000 | |||||||
Total LTIP and TIP RSU's | Time-Based RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation amortization | $ 6 | |||||||
Deferred stock-based compensation | $ 18.3 | $ 18.3 | $ 18.3 |
STOCK COMPENSATION PLAN - Award
STOCK COMPENSATION PLAN - Awards Granted, Forfeited and Outstanding (Details) - $ / shares | Aug. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Weighted Average Grant Date Fair Value Per RSU | |||||
Vesting period | 3 years | 2 years | |||
TIP Plan | 2019 | TIP | |||||
Restricted Stock Units | |||||
Outstanding, beginning of period (in shares) | 200,600 | ||||
Awards granted (in shares) | 0 | ||||
Awards vested (in shares) | (21,100) | ||||
Awards forfeited (in shares) | (25,800) | ||||
Outstanding, end of period (in shares) | 153,700 | 153,700 | |||
Weighted Average Grant Date Fair Value Per RSU | |||||
Awards outstanding, weighted average grant date fair value (in USD per share) | $ 16.44 | $ 16.44 | $ 16.44 | ||
Awards granted, weighted average grant date fair value (in USD per share) | 0 | ||||
Awards vested, weighted average grant date fair value (in USD per share) | 16.44 | ||||
Awards forfeited, weighted average grant date fair value (in USD per share) | $ 16.44 | ||||
LTIP Plan | Time-Based LTIP | |||||
Restricted Stock Units | |||||
Outstanding, beginning of period (in shares) | 721,500 | ||||
Awards granted (in shares) | 648,400 | ||||
Awards vested (in shares) | (286,500) | ||||
Awards forfeited (in shares) | (113,400) | ||||
Outstanding, end of period (in shares) | 970,000 | 970,000 | |||
Weighted Average Grant Date Fair Value Per RSU | |||||
Vesting period | 3 years | ||||
LTIP Plan | Performance-Based LTIP | |||||
Restricted Stock Units | |||||
Outstanding, beginning of period (in shares) | 901,200 | ||||
Awards granted (in shares) | 648,400 | ||||
Awards vested (in shares) | (14,200) | ||||
Awards forfeited (in shares) | (261,500) | ||||
Outstanding, end of period (in shares) | 1,273,900 | 1,273,900 | |||
Weighted Average Grant Date Fair Value Per RSU | |||||
Vesting period | 3 years | ||||
LTIP Plan | Time-based and Performance-based RSU Awards | |||||
Restricted Stock Units | |||||
Awards granted (in shares) | 1,300,000 | ||||
LTIP Plan | Restricted Stock | |||||
Weighted Average Grant Date Fair Value Per RSU | |||||
Accelerated vesting, number of awards (in shares) | 23,888 | 29,350 | |||
LTIP Plan | 2020 | Time-Based LTIP | |||||
Restricted Stock Units | |||||
Awards granted (in shares) | 648,400 | ||||
Outstanding, end of period (in shares) | 648,400 | 648,400 | |||
Weighted Average Grant Date Fair Value Per RSU | |||||
Awards outstanding, weighted average grant date fair value (in USD per share) | $ 14.96 | $ 14.96 | |||
Awards granted, weighted average grant date fair value (in USD per share) | $ 14.96 | ||||
LTIP Plan | 2020 | Performance-Based LTIP | |||||
Restricted Stock Units | |||||
Awards granted (in shares) | 648,400 | ||||
Outstanding, end of period (in shares) | 648,400 | 648,400 | |||
Weighted Average Grant Date Fair Value Per RSU | |||||
Awards outstanding, weighted average grant date fair value (in USD per share) | $ 14.96 | $ 14.96 | |||
Awards granted, weighted average grant date fair value (in USD per share) | $ 14.96 | ||||
LTIP Plan | 2019 | Time-Based LTIP | |||||
Restricted Stock Units | |||||
Outstanding, beginning of period (in shares) | 425,600 | ||||
Awards granted (in shares) | 0 | ||||
Awards vested (in shares) | (129,300) | ||||
Awards forfeited (in shares) | (68,400) | ||||
Outstanding, end of period (in shares) | 227,900 | 227,900 | |||
Weighted Average Grant Date Fair Value Per RSU | |||||
Awards outstanding, weighted average grant date fair value (in USD per share) | $ 22.55 | $ 22.55 | 22.55 | ||
Awards granted, weighted average grant date fair value (in USD per share) | 0 | ||||
Awards vested, weighted average grant date fair value (in USD per share) | 22.55 | ||||
Awards forfeited, weighted average grant date fair value (in USD per share) | $ 22.55 | ||||
LTIP Plan | 2019 | Performance-Based LTIP | |||||
Restricted Stock Units | |||||
Outstanding, beginning of period (in shares) | 425,600 | ||||
Awards granted (in shares) | 0 | ||||
Awards vested (in shares) | 0 | ||||
Awards forfeited (in shares) | (82,800) | ||||
Outstanding, end of period (in shares) | 342,800 | 342,800 | |||
Weighted Average Grant Date Fair Value Per RSU | |||||
Awards outstanding, weighted average grant date fair value (in USD per share) | $ 22.55 | $ 22.55 | 22.55 | ||
Awards granted, weighted average grant date fair value (in USD per share) | 0 | ||||
Awards vested, weighted average grant date fair value (in USD per share) | 0 | ||||
Awards forfeited, weighted average grant date fair value (in USD per share) | $ 22.55 | ||||
LTIP Plan | 2018 | Time-Based LTIP | |||||
Restricted Stock Units | |||||
Outstanding, beginning of period (in shares) | 241,900 | ||||
Awards granted (in shares) | 0 | ||||
Awards vested (in shares) | (103,800) | ||||
Awards forfeited (in shares) | (44,400) | ||||
Outstanding, end of period (in shares) | 93,700 | 93,700 | |||
Weighted Average Grant Date Fair Value Per RSU | |||||
Awards outstanding, weighted average grant date fair value (in USD per share) | $ 19.45 | $ 19.45 | 19 | ||
Awards granted, weighted average grant date fair value (in USD per share) | 0 | ||||
Awards vested, weighted average grant date fair value (in USD per share) | 19.30 | ||||
Awards forfeited, weighted average grant date fair value (in USD per share) | $ 17.33 | ||||
LTIP Plan | 2018 | Performance-Based LTIP | |||||
Restricted Stock Units | |||||
Outstanding, beginning of period (in shares) | 364,700 | ||||
Awards granted (in shares) | 0 | ||||
Awards vested (in shares) | 0 | ||||
Awards forfeited (in shares) | (82,000) | ||||
Outstanding, end of period (in shares) | 282,700 | 282,700 | |||
Weighted Average Grant Date Fair Value Per RSU | |||||
Awards outstanding, weighted average grant date fair value (in USD per share) | $ 19.46 | $ 19.46 | 19 | ||
Awards granted, weighted average grant date fair value (in USD per share) | 0 | ||||
Awards vested, weighted average grant date fair value (in USD per share) | 0 | ||||
Awards forfeited, weighted average grant date fair value (in USD per share) | $ 17.44 | ||||
LTIP Plan | 2017 | Time-Based LTIP | |||||
Restricted Stock Units | |||||
Outstanding, beginning of period (in shares) | 54,000 | ||||
Awards granted (in shares) | 0 | ||||
Awards vested (in shares) | (53,400) | ||||
Awards forfeited (in shares) | (600) | ||||
Outstanding, end of period (in shares) | 0 | 0 | |||
Weighted Average Grant Date Fair Value Per RSU | |||||
Awards outstanding, weighted average grant date fair value (in USD per share) | $ 0 | $ 0 | 19.70 | ||
Awards granted, weighted average grant date fair value (in USD per share) | 0 | ||||
Awards vested, weighted average grant date fair value (in USD per share) | 19.70 | ||||
Awards forfeited, weighted average grant date fair value (in USD per share) | $ 19.70 | ||||
LTIP Plan | 2017 | Performance-Based LTIP | |||||
Restricted Stock Units | |||||
Outstanding, beginning of period (in shares) | 110,900 | ||||
Awards granted (in shares) | 0 | ||||
Awards vested (in shares) | (14,200) | ||||
Awards forfeited (in shares) | (96,700) | ||||
Outstanding, end of period (in shares) | 0 | 0 | |||
Weighted Average Grant Date Fair Value Per RSU | |||||
Awards outstanding, weighted average grant date fair value (in USD per share) | $ 0 | $ 0 | $ 19.70 | ||
Awards granted, weighted average grant date fair value (in USD per share) | 0 | ||||
Awards vested, weighted average grant date fair value (in USD per share) | 19.70 | ||||
Awards forfeited, weighted average grant date fair value (in USD per share) | $ 19.70 | ||||
LTIP Plan | 2017 | Time-based and Performance-based RSU Awards | |||||
Weighted Average Grant Date Fair Value Per RSU | |||||
Vesting period | 2 years | ||||
Total LTIP and TIP RSU's | Time-Based LTIP | |||||
Restricted Stock Units | |||||
Outstanding, beginning of period (in shares) | 922,100 | ||||
Outstanding, end of period (in shares) | 1,123,700 | 1,123,700 | |||
Total LTIP and TIP RSU's | Performance-Based LTIP | |||||
Restricted Stock Units | |||||
Outstanding, beginning of period (in shares) | 901,200 | ||||
Outstanding, end of period (in shares) | 1,273,900 | 1,273,900 | |||
Revlon 2019 Transaction Incentive Program, Tier 1 | Restricted Stock | |||||
Weighted Average Grant Date Fair Value Per RSU | |||||
Accelerated vesting, number of awards (in shares) | 21,077 | 21,077 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Line Items] | ||
Provision (benefit) for income taxes | $ (37.2) | $ 0.1 |
Decrease in provision for income taxes | 37.3 | |
Revlon Consumer Products Corporation | ||
Income Tax Disclosure [Line Items] | ||
Provision (benefit) for income taxes | (36.9) | $ 0.3 |
Decrease in provision for income taxes | $ 37.2 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ (1,221.2) | $ (1,056.8) | |
Foreign currency translation adjustment, net of tax | (5.2) | ||
Amortization of pension related costs, net of tax | [1],[2] | 2.5 | 2.2 |
Other comprehensive (loss) gain | [3] | (2.7) | 0.9 |
Ending balance | (1,435.8) | (1,132.2) | |
Amortization of pension related costs, tax benefit (expense) | (0.3) | (0.3) | |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (247.4) | (234.2) | |
Other comprehensive (loss) gain | [3] | (2.7) | 0.9 |
Ending balance | (250.1) | $ (233.3) | |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (27.3) | ||
Foreign currency translation adjustment, net of tax | (5.2) | ||
Other comprehensive (loss) gain | (5.2) | ||
Ending balance | (32.5) | ||
Actuarial (Loss) Gain on Post-retirement Benefits | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (219.8) | ||
Amortization of pension related costs, net of tax | 2.5 | ||
Other comprehensive (loss) gain | 2.5 | ||
Ending balance | (217.3) | ||
Amortization of pension related costs, tax benefit (expense) | (0.3) | ||
Other | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (0.3) | ||
Other comprehensive (loss) gain | 0 | ||
Ending balance | $ (0.3) | ||
[1] | Net of tax expense of $0.3 million for each of the three months ended March 31, 2020 and 2019. | ||
[2] | This amount is included in the computation of net periodic benefit costs (income). See Note 10, "Pension and Post-Retirement Benefits," for additional information regarding net periodic benefit costs (income). | ||
[3] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during the three months ended March 31, 2020 and 2019, respectively. |
SEGMENT DATA AND RELATED INFO_3
SEGMENT DATA AND RELATED INFORMATION - Net Sales and Segment Profit (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 453 | $ 553.2 |
Segment profit | (186.2) | (23.3) |
Depreciation and amortization | 36.8 | 47 |
Non-Operating items: | ||
Restructuring and related charges | 24.8 | |
Acquisition, integration and divestiture costs | 2.1 | 0.6 |
Loss on divested assets | 0.8 | 0 |
Impairment charges | 124.3 | 0 |
Operating (loss) income | (186.2) | (23.3) |
Interest Expense | 48.4 | 47.7 |
Amortization of debt issuance costs | 4 | 3.2 |
Foreign currency losses, net | 16.6 | 0.2 |
Miscellaneous, net | (4.1) | 1.3 |
Loss from continuing operations before income taxes | (251.1) | (75.7) |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 453 | 553.2 |
Segment profit | 28.4 | 38.8 |
Non-Operating items: | ||
Operating (loss) income | 28.4 | 38.8 |
Segment reconciling items | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 36.8 | 47 |
Non-cash stock compensation expense | 2.4 | 0.4 |
Non-Operating items: | ||
Restructuring and related charges | 34.4 | 12.1 |
Acquisition, integration and divestiture costs | 2.1 | 0.6 |
Loss on divested assets | 0 | |
Financial control remediation actions and related charges | 2.1 | 2 |
Excessive coupon redemptions | 4.2 | 0 |
COVID-19 charges | 7.5 | 0 |
Impairment charges | 124.3 | 0 |
Revlon | ||
Segment Reporting Information [Line Items] | ||
Net sales | 181.8 | 247.3 |
Revlon | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 181.8 | 247.3 |
Segment profit | 15.6 | 25.6 |
Non-Operating items: | ||
Operating (loss) income | 15.6 | 25.6 |
Elizabeth Arden | ||
Segment Reporting Information [Line Items] | ||
Net sales | 95.2 | 111.4 |
Elizabeth Arden | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 95.2 | 111.4 |
Segment profit | 4.2 | 1.9 |
Non-Operating items: | ||
Operating (loss) income | 4.2 | 1.9 |
Portfolio | ||
Segment Reporting Information [Line Items] | ||
Net sales | 110 | 117.2 |
Portfolio | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 110 | 117.2 |
Segment profit | 7.2 | 4.5 |
Non-Operating items: | ||
Operating (loss) income | 7.2 | 4.5 |
Fragrance | ||
Segment Reporting Information [Line Items] | ||
Net sales | 66 | 77.3 |
Fragrance | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 66 | 77.3 |
Segment profit | 1.4 | 6.8 |
Non-Operating items: | ||
Operating (loss) income | 1.4 | 6.8 |
Revlon Consumer Products Corporation | ||
Segment Reporting Information [Line Items] | ||
Net sales | 453 | 553.2 |
Segment profit | (184.2) | (21.5) |
Depreciation and amortization | 36.8 | 47 |
Non-cash stock compensation expense | 2.4 | 0.4 |
Non-Operating items: | ||
Acquisition, integration and divestiture costs | 2.1 | 0.6 |
Loss on divested assets | 0.8 | 0 |
Impairment charges | 124.3 | 0 |
Operating (loss) income | (184.2) | (21.5) |
Interest Expense | 48.4 | 47.7 |
Amortization of debt issuance costs | 4 | 3.2 |
Foreign currency losses, net | 16.6 | 0.2 |
Miscellaneous, net | (4.1) | 1.3 |
Loss from continuing operations before income taxes | (249.1) | (73.9) |
Revlon Consumer Products Corporation | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 453 | 553.2 |
Segment profit | 30.4 | 40.6 |
Non-Operating items: | ||
Operating (loss) income | 30.4 | 40.6 |
Revlon Consumer Products Corporation | Segment reconciling items | ||
Non-Operating items: | ||
Restructuring and related charges | 34.4 | 12.1 |
Acquisition, integration and divestiture costs | 2.1 | 0.6 |
Loss on divested assets | 0.8 | 0 |
Financial control remediation actions and related charges | 2.1 | 2 |
Excessive coupon redemptions | 4.2 | 0 |
COVID-19 charges | 7.5 | 0 |
Impairment charges | 124.3 | 0 |
Revlon Consumer Products Corporation | Revlon | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 181.8 | 247.3 |
Segment profit | 16.4 | 26.4 |
Non-Operating items: | ||
Operating (loss) income | 16.4 | 26.4 |
Revlon Consumer Products Corporation | Elizabeth Arden | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 95.2 | 111.4 |
Segment profit | 4.6 | 2.2 |
Non-Operating items: | ||
Operating (loss) income | 4.6 | 2.2 |
Revlon Consumer Products Corporation | Portfolio | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 110 | 117.2 |
Segment profit | 7.7 | 4.9 |
Non-Operating items: | ||
Operating (loss) income | 7.7 | 4.9 |
Revlon Consumer Products Corporation | Fragrance | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 66 | 77.3 |
Segment profit | 1.7 | 7.1 |
Non-Operating items: | ||
Operating (loss) income | $ 1.7 | $ 7.1 |
SEGMENT DATA AND RELATED INFO_4
SEGMENT DATA AND RELATED INFORMATION - Narrative (Details) | Mar. 31, 2020country |
International | |
Segment Reporting Information [Line Items] | |
Number of countries in which entity operates | 25 |
SEGMENT DATA AND RELATED INFO_5
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales and Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 453 | $ 553.2 | |
Long-lived assets | $ 1,531.4 | $ 1,694.1 | |
Travel Retail Sales business | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of net sales by business | 2.60% | 4.70% | |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 233.5 | $ 278.7 | |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 110.1 | 139.6 | |
Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 61.7 | 77.1 | |
Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 20.5 | 25.9 | |
Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 27.2 | 31.9 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 1,264.2 | $ 1,414 | |
Percentage of long lived assets by geographic location | 83.00% | 83.00% | |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 267.2 | $ 280.1 | |
Percentage of long lived assets by geographic location | 17.00% | 17.00% | |
Revlon | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 181.8 | 247.3 | |
Revlon | North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 99.1 | 133.2 | |
Revlon | EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 37.3 | 53.7 | |
Revlon | Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 14.7 | 23.9 | |
Revlon | Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 14 | 15.7 | |
Revlon | Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 16.7 | 20.8 | |
Elizabeth Arden | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 95.2 | 111.4 | |
Elizabeth Arden | North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 21.4 | 28.2 | |
Elizabeth Arden | EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 25.9 | 27.9 | |
Elizabeth Arden | Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 43.1 | 47.7 | |
Elizabeth Arden | Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 0.8 | 2.8 | |
Elizabeth Arden | Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 4 | 4.8 | |
Portfolio | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 110 | 117.2 | |
Portfolio | North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 70.8 | 70.1 | |
Portfolio | EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 30.6 | 37.8 | |
Portfolio | Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 0.5 | 0.8 | |
Portfolio | Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 4.9 | 5.2 | |
Portfolio | Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 3.2 | 3.3 | |
Fragrance | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 66 | 77.3 | |
Fragrance | North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 42.2 | 47.2 | |
Fragrance | EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 16.3 | 20.2 | |
Fragrance | Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 3.4 | 4.7 | |
Fragrance | Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 0.8 | 2.2 | |
Fragrance | Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 3.3 | $ 3 |
SEGMENT DATA AND RELATED INFO_6
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales by Classes of Similar Products (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from External Customer [Line Items] | ||
Net sales | $ 453 | $ 553.2 |
Color cosmetics | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 130 | $ 202.8 |
Percentage of net sales by classes of similar products | 29.00% | 37.00% |
Fragrance | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 94.9 | $ 110.3 |
Percentage of net sales by classes of similar products | 21.00% | 20.00% |
Hair care | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 116.7 | $ 128.7 |
Percentage of net sales by classes of similar products | 26.00% | 23.00% |
Beauty care | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 46.1 | $ 41.1 |
Percentage of net sales by classes of similar products | 10.00% | 7.00% |
Skin care | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 65.3 | $ 70.3 |
Percentage of net sales by classes of similar products | 14.00% | 13.00% |
REVLON, INC. BASIC AND DILUTE_3
REVLON, INC. BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE - Narrative (Details) - shares | Mar. 31, 2020 | Mar. 31, 2019 |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Stock options outstanding (shares) | 0 | 0 |
REVLON, INC. BASIC AND DILUTE_4
REVLON, INC. BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE - Components of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Loss from continuing operations, net of taxes | $ (213.9) | $ (75.8) |
Income from discontinued operations, net of taxes | 0 | 0.7 |
Net (loss) income | $ (213.9) | $ (75.1) |
Denominator: | ||
Weighted average common shares outstanding - Basic (in shares) | 53,167,453 | 52,913,388 |
Effect of dilutive restricted stock (in shares) | 0 | 0 |
Weighted average common shares outstanding - Diluted (in shares) | 53,167,453 | 52,913,388 |
Basic and Diluted (loss) earnings per common share: | ||
Continuing operations (in dollars per share) | $ (4.02) | $ (1.43) |
Discontinued operations (in dollars per share) | 0 | 0.01 |
Net loss (in dollars per share) | $ (4.02) | $ (1.42) |
Restricted Stock and Restricted Stock Units | ||
Basic and Diluted (loss) earnings per common share: | ||
Unvested restricted stock and RSUs under the Stock Plan (in shares) | 300,787 | 571,069 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Reimbursement Agreements termination notice period | 90 days | |||
Reimbursements | ||||
Related Party Transaction [Line Items] | ||||
Income from related party | $ 300,000 | $ 0 | ||
Payable to related party | 6,900,000 | $ 5,500,000 | ||
MacAndrews & Forbes | Reimbursements | ||||
Related Party Transaction [Line Items] | ||||
Receivable from related party | 300,000 | |||
Payable to related party | $ 200,000 | |||
Majority Shareholder | Related Party Expense, Other Advertising, Coupon Redemption and Raw Material Supply | ||||
Related Party Transaction [Line Items] | ||||
Receivable from related party | 200,000 | |||
Payable to related party | 200,000 | |||
Expenses related party | 13,000,000 | 2,400,000 | ||
Payments to related party | $ 300,000 | $ 100,000 | ||
Ms. Perelman | Subsequent Event | COVID-19 | ||||
Related Party Transaction [Line Items] | ||||
Percentage salary reduction | 40.00% | |||
Annual base salary | $ 675,000 | |||
Mr. Beattie | 2020 Consulting Agreement | ||||
Related Party Transaction [Line Items] | ||||
Consulting agreement renewal term | 1 year | |||
Annual consulting fee | $ 250,000 |
PRODUCTS CORPORATION AND SUBS_3
PRODUCTS CORPORATION AND SUBSIDIARIES GUARANTOR FINANCIAL INFORMATION - Narrative (Details) | Mar. 31, 2020 |
5.75% Senior Notes | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate (as a percent) | 5.75% |
6.25% Senior Notes | |
Condensed Financial Statements, Captions [Line Items] | |
Stated interest rate (as a percent) | 6.25% |
PRODUCTS CORPORATION AND SUBS_4
PRODUCTS CORPORATION AND SUBSIDIARIES GUARANTOR FINANCIAL INFORMATION - Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 62.8 | $ 104.3 | ||
Trade receivables, less allowances for doubtful accounts | 326.5 | 423.4 | ||
Inventories | 479.8 | 448.4 | ||
Property, plant and equipment, net | 383.1 | 408.6 | ||
Deferred income taxes | 209.3 | 175.1 | ||
Goodwill | 573.7 | 673.7 | ||
Intangible assets, net | 456.6 | 490.7 | ||
Other assets | 118 | 121.1 | ||
Total assets | 2,779.6 | 2,980.6 | ||
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY | ||||
Short-term borrowings | 2.9 | 2.2 | ||
Current portion of long-term debt | 856.1 | 288 | ||
Accounts payable | 253.3 | 251.8 | ||
Accrued expenses and other current liabilities | 374.1 | 414.9 | ||
Long-term debt | 2,405.5 | 2,906.2 | ||
Stockholder’s (deficiency) equity | (1,435.8) | (1,221.2) | $ (1,132.2) | $ (1,056.8) |
Total liabilities and stockholders’ deficiency | 2,779.6 | 2,980.6 | ||
Revlon Consumer Products Corporation | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 62.8 | 104.3 | ||
Trade receivables, less allowances for doubtful accounts | 326.5 | 423.4 | ||
Inventories | 479.8 | 448.4 | ||
Prepaid expenses and other | 329.3 | 292.6 | ||
Intercompany receivables | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Property, plant and equipment, net | 383.1 | 408.6 | ||
Deferred income taxes | 191.7 | 158.1 | ||
Goodwill | 573.7 | 673.7 | ||
Intangible assets, net | 456.6 | 490.7 | ||
Other assets | 118 | 121.1 | ||
Total assets | 2,921.5 | 3,120.9 | ||
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY | ||||
Short-term borrowings | 2.9 | 2.2 | ||
Current portion of long-term debt | 856.1 | 288 | ||
Accounts payable | 253.3 | 251.8 | ||
Accrued expenses and other current liabilities | 377.3 | 418.2 | ||
Intercompany payables | 0 | 0 | ||
Long-term debt | 2,405.5 | 2,906.2 | ||
Other long-term liabilities | 328.3 | 343.9 | ||
Total liabilities | 4,223.4 | 4,210.3 | ||
Stockholder’s (deficiency) equity | (1,301.9) | (1,089.4) | $ (1,005.3) | $ (933.1) |
Total liabilities and stockholders’ deficiency | 2,921.5 | 3,120.9 | ||
Revlon Consumer Products Corporation | Eliminations | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 0 | 0 | ||
Trade receivables, less allowances for doubtful accounts | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other | 0 | 0 | ||
Intercompany receivables | (6,510.9) | (6,165) | ||
Investment in subsidiaries | (1,569.9) | (1,629) | ||
Property, plant and equipment, net | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | (8,080.8) | (7,794) | ||
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY | ||||
Short-term borrowings | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other current liabilities | 0 | 0 | ||
Intercompany payables | (6,510.9) | (6,165) | ||
Long-term debt | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | (6,510.9) | (6,165) | ||
Stockholder’s (deficiency) equity | (1,569.9) | (1,629) | ||
Total liabilities and stockholders’ deficiency | (8,080.8) | (7,794) | ||
Revlon Consumer Products Corporation | Products Corporation | Reportable Legal Entities | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 3.1 | 0.8 | ||
Trade receivables, less allowances for doubtful accounts | 74 | 95.5 | ||
Inventories | 146.5 | 131 | ||
Prepaid expenses and other | 225.3 | 219.7 | ||
Intercompany receivables | 3,021.1 | 2,857.7 | ||
Investment in subsidiaries | 1,557.1 | 1,598.3 | ||
Property, plant and equipment, net | 200.4 | 208.7 | ||
Deferred income taxes | 179.1 | 165 | ||
Goodwill | 60.1 | 159.9 | ||
Intangible assets, net | (11.9) | 13 | ||
Other assets | 69.2 | 67.8 | ||
Total assets | 5,524 | 5,517.4 | ||
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY | ||||
Short-term borrowings | 0 | 0 | ||
Current portion of long-term debt | 856 | 287.9 | ||
Accounts payable | 110.6 | 108.4 | ||
Accrued expenses and other current liabilities | 192.6 | 124.1 | ||
Intercompany payables | 3,194.3 | 3,030.3 | ||
Long-term debt | 2,322.3 | 2,822.2 | ||
Other long-term liabilities | 176.6 | 220.4 | ||
Total liabilities | 6,852.4 | 6,593.3 | ||
Stockholder’s (deficiency) equity | (1,328.4) | (1,075.9) | ||
Total liabilities and stockholders’ deficiency | 5,524 | 5,517.4 | ||
Revlon Consumer Products Corporation | Guarantor Subsidiaries | Reportable Legal Entities | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 2.4 | 6.4 | ||
Trade receivables, less allowances for doubtful accounts | 72.4 | 92.3 | ||
Inventories | 157 | 151.5 | ||
Prepaid expenses and other | 33.7 | 26.4 | ||
Intercompany receivables | 3,013 | 2,854.6 | ||
Investment in subsidiaries | 12.8 | 30.7 | ||
Property, plant and equipment, net | 77.4 | 89.5 | ||
Deferred income taxes | (17.2) | (37.8) | ||
Goodwill | 264 | 264 | ||
Intangible assets, net | 340.3 | 346.9 | ||
Other assets | 15.3 | 16.2 | ||
Total assets | 3,971.1 | 3,840.7 | ||
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY | ||||
Short-term borrowings | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 45.1 | 39.9 | ||
Accrued expenses and other current liabilities | 6 | 70 | ||
Intercompany payables | 2,819.3 | 2,668.7 | ||
Long-term debt | 0 | 0 | ||
Other long-term liabilities | 113.7 | 118.2 | ||
Total liabilities | 2,984.1 | 2,896.8 | ||
Stockholder’s (deficiency) equity | 987 | 943.9 | ||
Total liabilities and stockholders’ deficiency | 3,971.1 | 3,840.7 | ||
Revlon Consumer Products Corporation | Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 57.3 | 97.1 | ||
Trade receivables, less allowances for doubtful accounts | 180.1 | 235.6 | ||
Inventories | 176.3 | 165.9 | ||
Prepaid expenses and other | 70.3 | 46.5 | ||
Intercompany receivables | 476.8 | 452.7 | ||
Investment in subsidiaries | 0 | 0 | ||
Property, plant and equipment, net | 105.3 | 110.4 | ||
Deferred income taxes | 29.8 | 30.9 | ||
Goodwill | 249.6 | 249.8 | ||
Intangible assets, net | 128.2 | 130.8 | ||
Other assets | 33.5 | 37.1 | ||
Total assets | 1,507.2 | 1,556.8 | ||
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY | ||||
Short-term borrowings | 2.9 | 2.2 | ||
Current portion of long-term debt | 0.1 | 0.1 | ||
Accounts payable | 97.6 | 103.5 | ||
Accrued expenses and other current liabilities | 178.7 | 224.1 | ||
Intercompany payables | 497.3 | 466 | ||
Long-term debt | 83.2 | 84 | ||
Other long-term liabilities | 38 | 5.3 | ||
Total liabilities | 897.8 | 885.2 | ||
Stockholder’s (deficiency) equity | 609.4 | 671.6 | ||
Total liabilities and stockholders’ deficiency | $ 1,507.2 | $ 1,556.8 |
PRODUCTS CORPORATION AND SUBS_5
PRODUCTS CORPORATION AND SUBSIDIARIES GUARANTOR FINANCIAL INFORMATION - Statement of Operations and Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Condensed Income Statements, Captions [Line Items] | |||
Net sales | $ 453 | $ 553.2 | |
Cost of sales | 197.8 | 237.8 | |
Gross profit | 255.2 | 315.4 | |
Selling, general and administrative expenses | 289.4 | 332.6 | |
Acquisition, integration and divestiture costs | 2.1 | 0.6 | |
Restructuring charges and other, net | 24.8 | 5.5 | |
Impairment charges | 124.3 | 0 | |
Loss on divested assets | 0.8 | 0 | |
Operating (loss) income | (186.2) | (23.3) | |
Other (income) expense: | |||
Interest Expense | 48.4 | 47.7 | |
Amortization of debt issuance costs | 4 | 3.2 | |
Foreign currency losses (gains), net | 16.6 | 0.2 | |
Miscellaneous, net | (4.1) | 1.3 | |
Other expense (income), net | 64.9 | 52.4 | |
Loss from continuing operations before income taxes | (251.1) | (75.7) | |
(Benefit from) provision for income taxes | (37.2) | 0.1 | |
(Loss) income from continuing operations, net of taxes | (213.9) | (75.8) | |
(Loss) income from discontinued operations, net of taxes | 0 | 0.7 | |
Net (loss) income | (213.9) | (75.1) | |
Other comprehensive income (loss) | [1] | (2.7) | 0.9 |
Total comprehensive loss | (216.6) | (74.2) | |
Revlon Consumer Products Corporation | |||
Condensed Income Statements, Captions [Line Items] | |||
Net sales | 453 | 553.2 | |
Cost of sales | 197.8 | 237.8 | |
Gross profit | 255.2 | 315.4 | |
Selling, general and administrative expenses | 287.4 | 330.8 | |
Acquisition, integration and divestiture costs | 2.1 | 0.6 | |
Restructuring charges and other, net | 24.8 | 5.5 | |
Impairment charges | 124.3 | 0 | |
Loss on divested assets | 0.8 | 0 | |
Operating (loss) income | (184.2) | (21.5) | |
Other (income) expense: | |||
Intercompany interest, net | 0 | 0 | |
Interest Expense | 48.4 | 47.7 | |
Amortization of debt issuance costs | 4 | 3.2 | |
Foreign currency losses (gains), net | 16.6 | 0.2 | |
Miscellaneous, net | (4.1) | 1.3 | |
Other expense (income), net | 64.9 | 52.4 | |
Loss from continuing operations before income taxes | (249.1) | (73.9) | |
(Benefit from) provision for income taxes | (36.9) | 0.3 | |
(Loss) income from continuing operations, net of taxes | (212.2) | (74.2) | |
(Loss) income from discontinued operations, net of taxes | 0 | 0.7 | |
Equity in income (loss) of subsidiaries | 0 | 0 | |
Net (loss) income | (212.2) | (73.5) | |
Other comprehensive income (loss) | [2] | (2.7) | 0.9 |
Total comprehensive loss | (214.9) | (72.6) | |
Revlon Consumer Products Corporation | Reportable Legal Entities | Products Corporation | |||
Condensed Income Statements, Captions [Line Items] | |||
Net sales | 116.4 | 155.5 | |
Cost of sales | 58.4 | 68 | |
Gross profit | 58 | 87.5 | |
Selling, general and administrative expenses | 104.4 | 129.7 | |
Acquisition, integration and divestiture costs | 1.1 | 0.5 | |
Restructuring charges and other, net | 23.6 | 1.6 | |
Impairment charges | 124.3 | ||
Loss on divested assets | 0.8 | ||
Operating (loss) income | (196.2) | (44.3) | |
Other (income) expense: | |||
Intercompany interest, net | (2.8) | (1.3) | |
Interest Expense | 46.5 | 45.9 | |
Amortization of debt issuance costs | 4 | 3.2 | |
Foreign currency losses (gains), net | (5.5) | (1.5) | |
Miscellaneous, net | (23.9) | (7.9) | |
Other expense (income), net | 18.3 | 38.4 | |
Loss from continuing operations before income taxes | (214.5) | (82.7) | |
(Benefit from) provision for income taxes | (16.3) | (1.8) | |
(Loss) income from continuing operations, net of taxes | (198.2) | (80.9) | |
(Loss) income from discontinued operations, net of taxes | 0 | 0 | |
Equity in income (loss) of subsidiaries | (34.1) | 7.4 | |
Net (loss) income | (232.3) | (73.5) | |
Other comprehensive income (loss) | (2.7) | 0.9 | |
Total comprehensive loss | (235) | (72.6) | |
Revlon Consumer Products Corporation | Reportable Legal Entities | Guarantor Subsidiaries | |||
Condensed Income Statements, Captions [Line Items] | |||
Net sales | 112.4 | 129.3 | |
Cost of sales | 54.4 | 65.1 | |
Gross profit | 58 | 64.2 | |
Selling, general and administrative expenses | 71 | 75.1 | |
Acquisition, integration and divestiture costs | 0.5 | 0.1 | |
Restructuring charges and other, net | 1.3 | 2.1 | |
Impairment charges | 0 | ||
Loss on divested assets | 0 | ||
Operating (loss) income | (14.8) | (13.1) | |
Other (income) expense: | |||
Intercompany interest, net | 0.6 | 0.7 | |
Interest Expense | 0 | 0 | |
Amortization of debt issuance costs | 0 | 0 | |
Foreign currency losses (gains), net | 1.9 | 0 | |
Miscellaneous, net | (9.2) | (13.5) | |
Other expense (income), net | (6.7) | (12.8) | |
Loss from continuing operations before income taxes | (8.1) | (0.3) | |
(Benefit from) provision for income taxes | (20.2) | 0.5 | |
(Loss) income from continuing operations, net of taxes | 12.1 | (0.8) | |
(Loss) income from discontinued operations, net of taxes | 0 | 0 | |
Equity in income (loss) of subsidiaries | (20) | 5.4 | |
Net (loss) income | (7.9) | 4.6 | |
Other comprehensive income (loss) | 6.5 | (0.1) | |
Total comprehensive loss | (1.4) | 4.5 | |
Revlon Consumer Products Corporation | Reportable Legal Entities | Non-Guarantor Subsidiaries | |||
Condensed Income Statements, Captions [Line Items] | |||
Net sales | 224.2 | 271.2 | |
Cost of sales | 85 | 107.5 | |
Gross profit | 139.2 | 163.7 | |
Selling, general and administrative expenses | 112 | 126 | |
Acquisition, integration and divestiture costs | 0.5 | 0 | |
Restructuring charges and other, net | (0.1) | 1.8 | |
Impairment charges | 0 | ||
Loss on divested assets | 0 | ||
Operating (loss) income | 26.8 | 35.9 | |
Other (income) expense: | |||
Intercompany interest, net | 2.2 | 0.6 | |
Interest Expense | 1.9 | 1.8 | |
Amortization of debt issuance costs | 0 | 0 | |
Foreign currency losses (gains), net | 20.2 | 1.7 | |
Miscellaneous, net | 29 | 22.7 | |
Other expense (income), net | 53.3 | 26.8 | |
Loss from continuing operations before income taxes | (26.5) | 9.1 | |
(Benefit from) provision for income taxes | (0.4) | 1.6 | |
(Loss) income from continuing operations, net of taxes | (26.1) | 7.5 | |
(Loss) income from discontinued operations, net of taxes | 0 | 0.7 | |
Equity in income (loss) of subsidiaries | 0 | 0 | |
Net (loss) income | (26.1) | 8.2 | |
Other comprehensive income (loss) | (8.8) | 0.6 | |
Total comprehensive loss | (34.9) | 8.8 | |
Revlon Consumer Products Corporation | Eliminations | |||
Condensed Income Statements, Captions [Line Items] | |||
Net sales | 0 | (2.8) | |
Cost of sales | 0 | (2.8) | |
Gross profit | 0 | 0 | |
Selling, general and administrative expenses | 0 | 0 | |
Acquisition, integration and divestiture costs | 0 | 0 | |
Restructuring charges and other, net | 0 | 0 | |
Impairment charges | 0 | ||
Loss on divested assets | 0 | ||
Operating (loss) income | 0 | 0 | |
Other (income) expense: | |||
Intercompany interest, net | 0 | 0 | |
Interest Expense | 0 | 0 | |
Amortization of debt issuance costs | 0 | 0 | |
Foreign currency losses (gains), net | 0 | 0 | |
Miscellaneous, net | 0 | 0 | |
Other expense (income), net | 0 | 0 | |
Loss from continuing operations before income taxes | 0 | 0 | |
(Benefit from) provision for income taxes | 0 | 0 | |
(Loss) income from continuing operations, net of taxes | 0 | 0 | |
(Loss) income from discontinued operations, net of taxes | 0 | 0 | |
Equity in income (loss) of subsidiaries | 54.1 | (12.8) | |
Net (loss) income | 54.1 | (12.8) | |
Other comprehensive income (loss) | 2.3 | (0.5) | |
Total comprehensive loss | $ 56.4 | $ (13.3) | |
[1] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during the three months ended March 31, 2020 and 2019, respectively. | ||
[2] | See Note 13, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during the three months ended March 31, 2020 and 2019, respectively. |
PRODUCTS CORPORATION AND SUBS_6
PRODUCTS CORPORATION AND SUBSIDIARIES GUARANTOR FINANCIAL INFORMATION - Statement of Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash (used in) provided by operating activities | $ (77.6) | $ (28.4) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash (used in) provided by investing activities | (1.8) | (5.8) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net decrease in short-term borrowings and overdraft | (6.4) | (17.2) | |
Net borrowings under the Amended 2016 Revolving Credit Facility | 69.1 | 40.6 | |
Repayments under the 2016 Term Loan Facility | (4.5) | (4.5) | |
Payment of financing costs | (0.3) | (0.9) | |
Tax withholdings related to net share settlements of restricted stock and RSUs | (0.4) | (1.6) | |
Other financing activities | (0.1) | (0.2) | |
Net cash provided by (used in) financing activities | 57.4 | 16.2 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3.3) | 0.3 | |
Net decrease in cash, cash equivalents and restricted cash | (25.3) | (17.7) | |
Cash, cash equivalents and restricted cash at beginning of period | [1] | 104.5 | 87.5 |
Cash, cash equivalents and restricted cash at end of period | [1] | 79.2 | 69.8 |
Revlon Consumer Products Corporation | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash (used in) provided by operating activities | (77.6) | (28.4) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash (used in) provided by investing activities | (1.8) | (5.8) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net decrease in short-term borrowings and overdraft | (6.4) | (17.2) | |
Net borrowings under the Amended 2016 Revolving Credit Facility | 69.1 | 40.6 | |
Repayments under the 2016 Term Loan Facility | (4.5) | (4.5) | |
Payment of financing costs | (0.3) | (0.9) | |
Tax withholdings related to net share settlements of restricted stock and RSUs | (0.4) | (1.6) | |
Other financing activities | (0.1) | (0.2) | |
Net cash provided by (used in) financing activities | 57.4 | 16.2 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3.3) | 0.3 | |
Net decrease in cash, cash equivalents and restricted cash | (25.3) | (17.7) | |
Cash, cash equivalents and restricted cash at beginning of period | 104.5 | 87.5 | |
Cash, cash equivalents and restricted cash at end of period | 79.2 | 69.8 | |
Revlon Consumer Products Corporation | Reportable Legal Entities | Products Corporation | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash (used in) provided by operating activities | (57.7) | (24) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash (used in) provided by investing activities | (1.8) | (3.4) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net decrease in short-term borrowings and overdraft | (2.1) | (12.5) | |
Net borrowings under the Amended 2016 Revolving Credit Facility | 69.1 | 40.6 | |
Repayments under the 2016 Term Loan Facility | (4.5) | (4.5) | |
Payment of financing costs | (0.3) | (0.3) | |
Tax withholdings related to net share settlements of restricted stock and RSUs | (0.4) | (1.6) | |
Other financing activities | (0.1) | (0.2) | |
Net cash provided by (used in) financing activities | 61.7 | 21.5 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |
Net decrease in cash, cash equivalents and restricted cash | 2.2 | (5.9) | |
Cash, cash equivalents and restricted cash at beginning of period | 1 | 7.2 | |
Cash, cash equivalents and restricted cash at end of period | 3.2 | 1.3 | |
Revlon Consumer Products Corporation | Reportable Legal Entities | Guarantor Subsidiaries | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash (used in) provided by operating activities | 3.1 | 2.7 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash (used in) provided by investing activities | (0.1) | 0 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net decrease in short-term borrowings and overdraft | (4.8) | (4.2) | |
Net borrowings under the Amended 2016 Revolving Credit Facility | 0 | 0 | |
Repayments under the 2016 Term Loan Facility | 0 | 0 | |
Payment of financing costs | 0 | 0 | |
Tax withholdings related to net share settlements of restricted stock and RSUs | 0 | 0 | |
Other financing activities | 0 | 0 | |
Net cash provided by (used in) financing activities | (4.8) | (4.2) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2.1) | 0.1 | |
Net decrease in cash, cash equivalents and restricted cash | (3.9) | (1.4) | |
Cash, cash equivalents and restricted cash at beginning of period | 6.4 | 6.6 | |
Cash, cash equivalents and restricted cash at end of period | 2.5 | 5.2 | |
Revlon Consumer Products Corporation | Reportable Legal Entities | Non-Guarantor Subsidiaries | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash (used in) provided by operating activities | (23) | (7.1) | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash (used in) provided by investing activities | 0.1 | (2.4) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net decrease in short-term borrowings and overdraft | 0.5 | (0.5) | |
Net borrowings under the Amended 2016 Revolving Credit Facility | 0 | 0 | |
Repayments under the 2016 Term Loan Facility | 0 | 0 | |
Payment of financing costs | 0 | (0.6) | |
Tax withholdings related to net share settlements of restricted stock and RSUs | 0 | 0 | |
Other financing activities | 0 | 0 | |
Net cash provided by (used in) financing activities | 0.5 | (1.1) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1.2) | 0.2 | |
Net decrease in cash, cash equivalents and restricted cash | (23.6) | (10.4) | |
Cash, cash equivalents and restricted cash at beginning of period | 97.2 | 73.7 | |
Cash, cash equivalents and restricted cash at end of period | 73.6 | 63.3 | |
Revlon Consumer Products Corporation | Eliminations | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash (used in) provided by operating activities | 0 | 0 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash (used in) provided by investing activities | 0 | 0 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net decrease in short-term borrowings and overdraft | 0 | 0 | |
Net borrowings under the Amended 2016 Revolving Credit Facility | 0 | 0 | |
Repayments under the 2016 Term Loan Facility | 0 | 0 | |
Payment of financing costs | 0 | 0 | |
Tax withholdings related to net share settlements of restricted stock and RSUs | 0 | 0 | |
Other financing activities | 0 | 0 | |
Net cash provided by (used in) financing activities | 0 | 0 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | |
Net decrease in cash, cash equivalents and restricted cash | 0 | 0 | |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | |
Cash, cash equivalents and restricted cash at end of period | $ 0 | $ 0 | |
[1] | These amounts include restricted cash of $16.4 million and $1.5 million as of March 31, 2020 and 2019, respectively. The balance as of March 31, 2020 represents: (i) cash on deposit in lieu of a mandatory prepayment under the 2018 Foreign Asset-Based Term Facility; (ii) restricted cash under the terms of 2019 Term Loan Agreement; and (iii) cash on deposit to support outstanding undrawn letters of credit. The balance as of March 31, 2019 represents: (i) cash on deposit in lieu of a mandatory prepayment under the 2018 Foreign Asset-Based Term Facility; and (ii) cash on deposit to support outstanding undrawn letters of credit. These balances were included within prepaid expenses and other current assets and other assets in the Company's Unaudited Consolidated Balance Sheets as of March 31, 2020 and March 31, 2019, respectively. |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | May 07, 2020 | Apr. 30, 2020 | Apr. 17, 2020 | Apr. 14, 2020 | Apr. 17, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | May 08, 2020 | Apr. 30, 2018 |
Subsequent Event [Line Items] | ||||||||||
Outstanding borrowings | $ 3,261,600,000 | $ 3,194,200,000 | ||||||||
Repayments of long-term lines of credit | 4,500,000 | $ 4,500,000 | ||||||||
Revlon Consumer Products Corporation | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Repayments of long-term lines of credit | 4,500,000 | $ 4,500,000 | ||||||||
2016 Term Loan | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Outstanding borrowings | 1,710,900,000 | 1,713,600,000 | ||||||||
Repayment of debt | 18,000,000 | |||||||||
2016 Term Loan | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Percentage of lenders consent of loans outstanding (more than) | 50.00% | |||||||||
2016 Term Loan | Revlon Consumer Products Corporation | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Covenant springing maturity threshold amount, minimum | $ 75,000,000 | $ 75,000,000 | ||||||||
6.25% Senior Notes due 2024 | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Outstanding borrowings | $ 443,100,000 | 442,800,000 | ||||||||
Stated interest rate (as a percent) | 6.25% | |||||||||
6.25% Senior Notes due 2024 | Revlon Consumer Products Corporation | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stated interest rate (as a percent) | 6.25% | |||||||||
Covenant springing maturity threshold amount, minimum | $ 100,000,000 | |||||||||
6.25% Senior Notes due 2024 | Revlon Consumer Products Corporation | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Covenant springing maturity, number of days prior to the maturity date | 91 days | |||||||||
Covenant springing maturity threshold amount, minimum | $ 100,000,000 | $ 100,000,000 | ||||||||
2019 Term Loan Facility due 2023 | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Outstanding borrowings | 187,700,000 | 187,100,000 | ||||||||
Extended Term Loans due 2025 | Revlon Consumer Products Corporation | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Outstanding borrowings | $ 267,100,000 | |||||||||
Covenant springing maturity, number of days prior to the maturity date | 91 days | |||||||||
Extended Term Loans due 2025 | Revlon Consumer Products Corporation | Subsequent Event | LIBOR | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate floor | 0.75% | |||||||||
Basis spread on variable interest rate | 3.50% | |||||||||
5.75% Senior Notes due 2021 | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Outstanding borrowings | $ 498,500,000 | $ 498,100,000 | ||||||||
Stated interest rate (as a percent) | 5.75% | |||||||||
5.75% Senior Notes due 2021 | Revlon Consumer Products Corporation | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stated interest rate (as a percent) | 5.75% | |||||||||
Revolving credit facility | Tranche B | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Commitment | $ 41,500,000 | |||||||||
Revolving credit facility | Tranche B | Revlon Consumer Products Corporation | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Outstanding borrowings | 34,800,000 | |||||||||
Commitment | $ 41,500,000 | |||||||||
Revolving credit facility | Tranche B | Revlon Consumer Products Corporation | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Outstanding borrowings | $ 36,300,000 | $ 36,300,000 | ||||||||
Repayments of long-term lines of credit | $ 5,200,000 | |||||||||
Revolving credit facility | Tranche B | Revlon Consumer Products Corporation | Subsequent Event | LIBOR | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Increase in interest margin | 0.75% | |||||||||
Variable rate floor | 0.75% | |||||||||
Revolving credit facility | Tranche A | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Commitment | 400,000,000 | |||||||||
Revolving credit facility | Tranche A | Revlon Consumer Products Corporation | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Outstanding borrowings | $ 306,700,000 | |||||||||
Commitment | $ 400,000,000 | |||||||||
Revolving credit facility | Tranche A | Revlon Consumer Products Corporation | Subsequent Event | LIBOR | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Increase in interest margin | 0.75% | |||||||||
Revolving credit facility | 2020 Incremental Facility due 2021 | Revlon Consumer Products Corporation | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Outstanding borrowings | $ 63,500,000 | |||||||||
Commitment | $ 65,000,000 | |||||||||
Covenant springing maturity, number of days prior to the maturity date | 91 days | |||||||||
Revolving credit facility | 2020 Incremental Facility due 2021 | Revlon Consumer Products Corporation | Subsequent Event | LIBOR | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Basis spread on variable interest rate | 16.00% | |||||||||
Revolving credit facility | 2020 Incremental Facility due 2021 | Revlon Consumer Products Corporation | Subsequent Event | Alternate base rate | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Basis spread on variable interest rate | 15.00% | |||||||||
Secured debt | AHG New BrandCo Facility | Revlon Consumer Products Corporation | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Commitment | $ 815,000,000 | 850,000,000 | ||||||||
Line of credit facility, higher borrowing capacity option | 880,000,000 | |||||||||
Line of credit facility, increase limit | $ 65,000,000 | |||||||||
Line of credit facility, increase limit, minimum number of days after the closing date | 10 days | |||||||||
Line of credit facility, increase limit, maximum number of business days after the closing date | 15 days | |||||||||
Secured debt | AHG Roll-up BrandCo Facility | Revlon Consumer Products Corporation | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Commitment | $ 950,000,000 | |||||||||
Secured debt | 2020 BrandCo Facility due 2025 | Revlon Consumer Products Corporation | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Outstanding borrowings | $ 880,000,000 | |||||||||
Aggregate principal amount | $ 815,000,000 | |||||||||
Debt instrument, additional borrowing capacity, number of business days after the closing date | 15 days | |||||||||
Debt Instrument, additional borrowing capacity | $ 65,000,000 | |||||||||
Secured debt | 2020 BrandCo Facility due 2025 | Revlon Consumer Products Corporation | Subsequent Event | LIBOR | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate floor | 1.50% | |||||||||
Basis spread on variable interest rate | 10.50% | |||||||||
Basis spread on variable rate, payment In kind | 2.00% | |||||||||
Secured debt | Roll-up BrandCo Facility due 2025 | Revlon Consumer Products Corporation | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Aggregate principal amount | $ 950,000,000 | |||||||||
Secured debt | Roll-up BrandCo Facility due 2025 | Revlon Consumer Products Corporation | Subsequent Event | LIBOR | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate floor | 0.75% | |||||||||
Basis spread on variable interest rate | 3.50% | |||||||||
Secured debt | Junior Roll-up BrandCo Facility due 2025 | Revlon Consumer Products Corporation | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Aggregate principal amount | $ 3,000,000 | |||||||||
Secured debt | Junior Roll-up BrandCo Facility due 2025 | Revlon Consumer Products Corporation | Subsequent Event | LIBOR | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Variable rate floor | 0.75% | |||||||||
Basis spread on variable interest rate | 3.50% | |||||||||
Secured debt | 2020 Facilities due 2025 | Revlon Consumer Products Corporation | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Covenant springing maturity, number of days prior to the maturity date | 91 days | |||||||||
Secured debt | 2019 Term Loan Facility due 2023 | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Repayment of debt | $ 200,000,000 | |||||||||
Secured debt | AHG Facilities [Member] | Revlon Consumer Products Corporation | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Covenant springing maturity, number of days prior to the maturity date | 91 days |