Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2014 | |
Document Documentand Entity Information [Abstract] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Sep-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q3 |
Entity Registrant Name | 'REVLON CONSUMER PRODUCTS CORP |
Entity Central Index Key | '0000890547 |
Current Fiscal Year End Date | '--12-31 |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Non-accelerated Filer |
Entity Common Stock, Shares Outstanding (shares) | 5,260 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Current assets: | ' | ' | |
Cash and cash equivalents | $178.40 | $244.10 | [1] |
Trade receivables, less allowance for doubtful accounts of $6.1 and $4.2 as of September 30, 2014 and December 31, 2013, respectively | 256 | 253.5 | [1] |
Inventories | 187.2 | 175 | [1] |
Deferred income taxes – current | 61.8 | 65.1 | [1] |
Receivable from Revlon, Inc. | 101.8 | 94.7 | [1] |
Prepaid expenses and other | 61.5 | 61.4 | [1] |
Total current assets | 846.7 | 893.8 | [1] |
Property, plant and equipment, net of accumulated depreciation of $244.5 and $243.1 as of September 30, 2014 and December 31, 2013, respectively | 209.1 | 195.9 | [1] |
Deferred income taxes – noncurrent | 21.6 | 50.9 | [1] |
Goodwill | 466.8 | 472.3 | [1] |
Intangible assets, net of accumulated amortization of $34.6 and $19.0 as of September 30, 2014 and December 31, 2013, respectively | 336.1 | 360.1 | [1] |
Other assets | 117.1 | 123.8 | [1] |
Total assets | 1,997.40 | 2,096.80 | [1] |
Current liabilities: | ' | ' | |
Short-term borrowings | 7.9 | 7.9 | [1] |
Current portion of long-term debt | 7 | 65.4 | [1] |
Accounts payable | 167.7 | 165.7 | [1] |
Accrued expenses and other | 261.5 | 313.6 | [1] |
Total current liabilities | 444.1 | 552.6 | [1] |
Long-term debt | 1,858.30 | 1,862.30 | [1] |
Long-term pension and other post-retirement plan liabilities | 96.4 | 118.3 | [1] |
Other long-term liabilities | 84.6 | 80.1 | [1] |
Commitments and contingencies | ' | ' | [1] |
Stockholders' deficiency: | ' | ' | |
Preferred Stock, Value, Issued | 54.6 | 54.6 | [1] |
Additional paid-in capital | 950.2 | 946.5 | [1] |
Accumulated deficit | -1,325 | -1,367.80 | [1] |
Accumulated other comprehensive loss | -165.8 | -149.8 | [1] |
Total stockholder's deficiency | -486 | -516.5 | [1] |
Total liabilities and stockholder's deficiency | 1,997.40 | 2,096.80 | [1] |
Class A Common Stock | ' | ' | |
Stockholders' deficiency: | ' | ' | |
Common Stock, par value $1.00 per share; 10,000 shares authorized; 5,260 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively | $0 | $0 | [1] |
[1] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts on trade receivables | $6.10 | $4.20 |
Accumulated depreciation on property, plant and equipment | 244.5 | 243.1 |
Accumulated amortization on intangible assets | $34.60 | $19 |
Preferred Stock, Par or Stated Value Per Share | $1 | $1 |
Preferred Stock, Shares Authorized | 1,000 | 1,000 |
Preferred Stock, Shares Issued | 546 | 546 |
Preferred Stock, Shares Outstanding | 546 | 546 |
Class A Common Stock | ' | ' |
Common Stock, par value (usd per share) | $1 | $1 |
Common Stock, shares authorized (shares) | 10,000 | 10,000 |
Common Stock, shares issued (shares) | 5,260 | 5,260 |
Common Stock, Shares, Outstanding | 5,260 | 5,260 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE (LOSS) INCOME (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Income Statement [Abstract] | ' | ' | ' | ' | ||||
Net sales | $472.30 | $333.10 | $1,440 | $1,003.70 | ||||
Cost of sales | 164.6 | 121.1 | 495.3 | 358.1 | ||||
Gross profit | 307.7 | 212 | 944.7 | 645.6 | ||||
Selling, general and administrative expenses | 249.3 | 163.3 | 754.6 | 476.2 | ||||
Acquisition and integration costs | 0.9 | 5.9 | 5.4 | 6.3 | ||||
Restructuring charges and other, net | 0.8 | -1.5 | 18.1 | 1.8 | ||||
Operating income | 56.7 | 44.3 | 166.6 | 161.3 | ||||
Other expenses, net: | ' | ' | ' | ' | ||||
Interest expense | 20.6 | 17.8 | 63.9 | 55.5 | ||||
Amortization of debt issuance costs | 1.3 | 0.8 | 4.1 | 2.2 | ||||
Loss on early extinguishment of debt | 0 | 0.2 | 2 | 28.1 | ||||
Foreign currency losses, net | 9.3 | 0.4 | 17.9 | 3.2 | ||||
Miscellaneous, net | 0.1 | 0.6 | 0.2 | 0.8 | ||||
Other expenses, net | 31.3 | 19.8 | 88.1 | 89.8 | ||||
Income from continuing operations before income taxes | 25.4 | 24.5 | 78.5 | 71.5 | ||||
Provision for income taxes | 9.6 | 13 | 36.6 | 32.4 | ||||
Income from continuing operations, net of taxes | 15.8 | 11.5 | 41.9 | 39.1 | ||||
Income (loss) from discontinued operations, net of taxes | 0.4 | -1.5 | 0.9 | -6.3 | ||||
Net income | 16.2 | 10 | 42.8 | 32.8 | ||||
Other comprehensive (loss) income: | ' | ' | ' | ' | ||||
Currency translation adjustment, net of tax | -18.3 | [1] | 1.1 | [1] | -17.1 | [1] | -3.6 | [1] |
Amortization of pension related costs, net of tax | 1.1 | [2],[3] | 2 | [2],[3] | 3.4 | [2],[3],[4] | 5.8 | [2],[3] |
Revaluation of derivative financial instruments, net of tax | 0.6 | [5] | 0 | [5] | -2.3 | [5],[6] | 0 | [5] |
Other comprehensive (loss) income | -16.6 | 3.1 | -16 | [7] | 2.2 | |||
Total comprehensive (loss) income | ($0.40) | $13.10 | $26.80 | $35 | ||||
[1] | Net of tax expense (benefit) of $0.2 million and $0.9 million for the three months ended September 30, 2014 and 2013, respectively, and $(0.4) million and $3.2 million for the nine months ended September 30, 2014 and 2013, respectively. | |||||||
[2] | Net of tax benefit of nil and $(0.2) million for the three months ended September 30, 2014 and 2013, respectively, and nil and $(0.9) million for the nine months ended September 30, 2014 and 2013, respectively. | |||||||
[3] | This other comprehensive income component is included in the computation of net periodic benefit (income) costs. See Note 5, “Pension and Post-Retirement Benefits,†for additional information regarding net periodic benefit (income) costs. | |||||||
[4] | Amount represents the change in accumulated other comprehensive loss as a result of the amortization of unrecognized prior service costs and actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 5, “Pension and Post-retirement Benefits,†for further discussion of the Company’s pension and other post-retirement plans. | |||||||
[5] | Net of tax expense (benefit) of $0.4 million and $(1.4) million for the three and nine months ended September 30, 2014, respectively. | |||||||
[6] | For the nine months ended September 30, 2014, the 2013 Interest Rate Swap (as hereinafter defined) was deemed effective and therefore the changes in fair value related to the 2013 Interest Rate Swap are recorded in other comprehensive income. See Note 13, "Financial Instruments," for further discussion of the 2013 Interest Rate Swap. | |||||||
[7] | See Note 11, “Accumulated Other Comprehensive Loss,†regarding the changes in the accumulated balances for each component of other comprehensive income during the nine months ended September 30, 2014. |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (UNAUDITED) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Currency translation adjustment, tax | $0.20 | $0.90 | ($0.40) | $3.20 |
Amortization of pension related costs, tax benefit | 0 | -0.2 | 0 | -0.9 |
Revaluation of derivative financial instruments, tax | $0.40 | ' | ($1.40) | ' |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY (UNAUDITED) (USD $) | 9 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | ||
RCPC Preferred Stock | RCPC Preferred Stock | Additional Paid-In-Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ||
Beginning balance | ($516.50) | [1] | $54.60 | $54.60 | $946.50 | ($1,367.80) | ($149.80) | |
Stock-based compensation amortization | 3.7 | ' | ' | 3.7 | ' | ' | ||
Net income | 42.8 | ' | ' | ' | 42.8 | ' | ||
Other comprehensive income, net | -16 | [2] | ' | ' | ' | ' | -16 | [2] |
Ending balance | ($486) | $54.60 | $54.60 | $950.20 | ($1,325) | ($165.80) | ||
[1] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. | |||||||
[2] | See Note 11, “Accumulated Other Comprehensive Loss,†regarding the changes in the accumulated balances for each component of other comprehensive income during the nine months ended September 30, 2014. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | |
Net income | $42.80 | $32.80 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | |
Depreciation and amortization | 76.4 | 51.4 | |
Foreign currency loss from Venezuela re-measurement | 6 | 0.6 | |
Amortization of debt discount | 1 | 1 | |
Stock-based compensation amortization | 3.7 | 0 | |
Provision for deferred income taxes | 30.3 | 21.6 | |
Loss on early extinguishment of debt | 2 | 28.1 | |
Amortization of debt issuance costs | 4.1 | 2.2 | |
Insurance proceeds for property, plant and equipment | 0 | -13.1 | |
Gain on sale of certain assets | -0.4 | -3.1 | |
Pension and other post-retirement income | -3.9 | -0.2 | |
Change in assets and liabilities: | ' | ' | |
(Increase) decrease in trade receivables | -16.4 | 16.9 | |
Increase in inventories | -17.9 | -31.3 | |
Increase in prepaid expenses and other current assets | -8.8 | -23.4 | |
Increase in accounts payable | 10.3 | 4.3 | |
Decrease in accrued expenses and other current liabilities | -32.6 | -32.1 | |
Pension and other post-retirement plan contributions | -16.4 | -16 | |
Purchases of permanent displays | -33.1 | -30.1 | |
Other, net | -0.4 | -3.8 | |
Net cash provided by operating activities | 46.7 | 5.8 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | |
Capital expenditures | -30.3 | -17.9 | |
Insurance proceeds for property, plant and equipment | 0 | 13.1 | |
Proceeds from the sale of certain assets | 0.9 | 3.4 | |
Net cash used in investing activities | -29.4 | -1.4 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Net (decrease) increase in short-term borrowings and overdraft | -3.1 | 0.2 | |
Payment of financing costs | -1.8 | -32.7 | |
Other financing activities | -2.1 | -1.8 | |
Net cash (used in) provided by financing activities | -70.7 | 22.7 | |
Effect of exchange rate changes on cash and cash equivalents | -12.3 | -4.1 | |
Net (decrease) increase in cash and cash equivalents | -65.7 | 23 | |
Cash and cash equivalents at beginning of period | 244.1 | [1] | 116.3 |
Cash and cash equivalents at end of period | 178.4 | 139.3 | |
Cash paid during the period for: | ' | ' | |
Interest | 72.7 | 60.8 | |
Income taxes, net of refunds | 16.7 | 10.6 | |
Senior Subordinated Term Loan Due 2014 | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | -58.4 | 0 | |
Acquisition Term Loan | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | -5.3 | 0 | |
5 3/4% Senior Notes Due 2021 | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from the issuance of the 5¾% Senior Notes | 0 | 500 | |
2011 Term Loan | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | 0 | -113 | |
9 3/4% Senior Secured Notes Due 2015 | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | $0 | ($330) | |
[1] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. |
DESCRIPTION_OF_BUSINESS_AND_BA
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | ' |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | |
Revlon Consumer Products Corporation ("Products Corporation" and together with its subsidiaries, the "Company") is a direct wholly-owned operating subsidiary of Revlon, Inc., which is a direct and indirect majority-owned subsidiary of MacAndrews & Forbes Holdings Inc. ("MacAndrews & Forbes Holdings" and, together with certain of its affiliates other than Revlon, Inc. and the Company, "MacAndrews & Forbes"), a corporation wholly-owned by Ronald O. Perelman. | |
The Company’s vision is to establish Revlon as the quintessential and most innovative beauty company in the world by offering products that make consumers feel attractive and beautiful. We want to inspire our consumers to express themselves boldly and confidently. The Company operates in two segments, the consumer division (“Consumer”) and the professional division (“Professional”), and manufactures, markets and sells worldwide an extensive array of beauty and personal care products, including cosmetics, hair color, hair care and hair treatments, beauty tools, men's grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products. The Company’s principal customers for its products in the Consumer segment include large mass volume retailers and chain drug and food stores (collectively, the “mass retail channel”) in the U.S. and internationally, as well as certain department stores and other specialty stores, such as perfumeries, outside the U.S. The Company's principal customers for its products in the Professional segment include hair and nail salons and distributors in the U.S. and internationally. | |
The accompanying Consolidated Financial Statements are unaudited. In management's opinion, all adjustments necessary for a fair presentation have been made. The Unaudited Consolidated Financial Statements include the accounts of the Company after the elimination of all material intercompany balances and transactions. | |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Significant estimates made in the accompanying Unaudited Consolidated Financial Statements include, but are not limited to, allowances for doubtful accounts, inventory valuation reserves, expected sales returns and allowances, trade support costs, certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of intangible and long-lived assets, income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities, restructuring costs, certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. The Unaudited Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, filed with the U.S. Securities and Exchange Commission (the "SEC") on March 5, 2014 (the "2013 Form 10-K"). | |
The Company's results of operations and financial position for interim periods are not necessarily indicative of those to be expected for a full year. | |
Certain prior year amounts in the Unaudited Consolidated Financial Statements have been reclassified to conform to the current period's presentation. | |
Immaterial Correction - Presentation of Consolidated Balance Sheet as of December 31, 2013 | |
The previously recorded deferred income taxes - noncurrent, which represent the Company's noncurrent deferred tax assets, and other long-term liabilities, which include the Company's noncurrent deferred tax liabilities, as of December 31, 2013 were retrospectively corrected to reflect the Consumer and Professional U.S. entities as one tax-paying component, as well as to appropriately reflect offsetting noncurrent deferred tax assets and noncurrent deferred tax liabilities within other Professional entities. The Company has deemed the correction to be immaterial as there is no impact to the Company’s results of operations, cash flows and stockholder's deficiency for any period, and there are no qualitative factors which would indicate that the change is material. This immaterial correction decreased deferred income taxes - noncurrent and other long-term liabilities, as of December 31, 2013, to $50.9 million and $80.1 million, respectively, as reported in the accompanying Consolidated Balance Sheet, from the previously reported amounts of $164.8 million and $194.0 million, respectively. | |
Discontinued Operations Presentation | |
As a result of the Company's decision on December 30, 2013 to exit its business operations in China, the Company is reporting the results of its China operations within income (loss) from discontinued operations, net of taxes in the Company's Unaudited Consolidated Statements of Income and Comprehensive Income. Accordingly, prior year amounts have been reclassified to conform to the current period's presentation. See Note 4, "Discontinued Operations," for further discussion. | |
Impact of Foreign Currency Translation - Venezuela Currency | |
In January 2014, the Venezuela government announced that the Comisión de Administracion de Divisas (“CADIVI”) would be replaced by the government-operated National Center of Foreign Commerce (the "CENCOEX"), and indicated that the Sistema Complementario de Administración de Divisas (“SICAD”) market would continue to be offered as an alternative foreign currency exchange. Additionally, a parallel foreign currency exchange system has been developed, SICAD II, which started functioning in March 2014, and for the second quarter of 2014 the SICAD II exchange market had an average transaction rate to the Company of approximately 53 Bolivars per U.S. Dollar (the “SICAD II Rate”). The SICAD II market allows companies to apply for the purchase of foreign currency and foreign currency denominated securities for any legal use or purpose. | |
During the first nine months of 2014, the Company continued to exchange Bolivars for U.S. Dollars to the extent permitted through the CENCOEX, SICAD and SICAD II markets based on its ability to participate in those markets. As a result, the Company considered its specific facts and circumstances in order to determine the appropriate rate of exchange to translate Revlon Venezuela’s financial statements. Based on the Company’s assessment of factors, including of its legal ability and intent to continue to participate in the SICAD II exchange market to import finished goods into Venezuela, the Company determined that it was appropriate to utilize the SICAD II Rate of 53 Bolivars per U.S. Dollar to translate Revlon Venezuela’s financial statements beginning on June 30, 2014. | |
As a result of the change from the official rate of 6.3 Bolivars per U.S. Dollar to the SICAD II Rate on June 30, 2014, the Company was required to re-measure all of Revlon Venezuela’s monetary assets and liabilities at the rate of 53 Bolivars per U.S. Dollar as of June 30, 2014. Non-monetary assets and liabilities continue to be measured at their historical rates. The Company recorded a foreign currency loss of $6.0 million in the second quarter of 2014 as a result of the required re-measurement of Revlon Venezuela’s balance sheet. As Venezuela was designated as a highly inflationary economy effective January 1, 2010, the Company reflected this foreign currency loss in earnings. For both the three and nine months ended September 30, 2014, the change to the SICAD II Rate, as compared to the 6.3 Bolivars per U.S. Dollar official rate, had the impact of reducing net sales by $6.7 million and reducing operating income by $4.1 million. | |
Recently Adopted Accounting Pronouncements | |
In March 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-04, “Accounting for Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date,” requiring an entity to record an obligation resulting from joint and several liability arrangements at the greater of the amount that the entity has agreed to pay or the amount the entity expects to pay. Additional disclosures about joint and several liability arrangements will also be required. This guidance is effective for fiscal periods beginning after December 15, 2013, and is applied retrospectively for obligations that existed at the beginning of the fiscal year for which the entity adopted such guidance, with early adoption permitted. The Company adopted ASU No. 2013-04 beginning January 1, 2014, and such adoption did not have an impact on the Company's results of operations, financial condition or disclosures. | |
Recently Issued Accounting Pronouncements | |
In April 2014, the FASB issued ASU No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which changes the requirements for reporting discontinued operations under Accounting Standards Codification Topic 205. Under ASU No. 2014-08, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The standard states that a strategic shift could include a disposal of (i) a major geographical area of operations, (ii) a major line of business, (iii) a major equity method investment or (iv) other major parts of an entity. ASU No. 2014-08 no longer precludes presentation as a discontinued operation if (i) there are operations and cash flows of the component that have not been eliminated from the reporting entity’s ongoing operations or (ii) there is significant continuing involvement with a component after its disposal. Additional disclosures about discontinued operations will also be required. The guidance is effective for annual periods beginning on or after December 15, 2014, and is to be applied prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The Company expects to adopt ASU No. 2014-08 on a prospective basis beginning January 1, 2015. | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers," which supersedes the revenue recognition requirements in the Accounting Standards Codification ("Codification") Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of the new ASU No. 2014-09 is for companies to recognize revenue from the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. The guidance is effective for annual and interim periods beginning after December 15, 2016, with early adoption prohibited. The Company expects to adopt ASU No. 2014-09 beginning January 1, 2017 and is in the process of assessing the impact that the new guidance will have on the Company's results of operations, financial condition and disclosures. | |
In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" that will explicitly require management to assess an entity's ability to continue as a going concern and to provide related footnote disclosures if conditions give rise to substantial doubt. According to the new standard, substantial doubt exists if it is probable that the entity will be unable to meet its obligations within one year after the issuance date. The likelihood threshold of "probable", similar to its current use in U.S. GAAP for loss contingencies, is used to define substantial doubt. Disclosures will be required if conditions give rise to substantial doubt including whether and how management's plans will alleviate the substantial doubt. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption prohibited. The Company expects to adopt ASU No. 2014-15 beginning January 1, 2016 and is in the process of assessing the impact that the new guidance will have on the Company's disclosures. |
BUSINESS_COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||
BUSINESS COMBINATIONS | ' | |||||||||||||||
BUSINESS COMBINATION | ||||||||||||||||
The Colomer Acquisition | ||||||||||||||||
On October 9, 2013 (the "Acquisition Date"), Products Corporation completed its acquisition of The Colomer Group Participations, S.L. ("Colomer" and the "Colomer Acquisition"), a Spanish company which primarily manufactures, markets and sells professional products to hair and nail salons and other professional channels under brands such as Revlon Professional, CND, including CND Shellac, and American Crew, as well as retail and multi-cultural product lines. The cash purchase price for the Colomer Acquisition was $664.5 million, which Products Corporation financed with proceeds from the Acquisition Term Loan under the Amended Term Loan Facility (both as hereinafter defined). The Colomer Acquisition provides the Company with broad brand, geographic and channel diversification and substantially expands the Company's business, providing both distribution into new channels and cost synergy opportunities. | ||||||||||||||||
The results of operations of the Colomer business are included in the Company’s Consolidated Financial Statements commencing on the Acquisition Date. | ||||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, respectively, the Company incurred acquisition and integration costs related to the Colomer Acquisition, which consist of the following: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Acquisition costs | $ | 0.1 | $ | 5.9 | $ | 0.5 | $ | 6.3 | ||||||||
Integration costs | 0.8 | — | 4.9 | — | ||||||||||||
Total acquisition and integration costs | $ | 0.9 | $ | 5.9 | $ | 5.4 | $ | 6.3 | ||||||||
The acquisition costs primarily include legal and consulting fees related to the Colomer Acquisition. The integration costs consist of non-restructuring costs related to the Company's plans to integrate Colomer's operations into the Company's business, and, for 2014, primarily include employee-related costs related to management changes and audit-related fees. | ||||||||||||||||
Purchase Price Allocation | ||||||||||||||||
The Company accounted for the Colomer Acquisition as a business combination during the fourth quarter of 2013. The table below summarizes the amounts recognized for assets acquired and liabilities assumed as of the Acquisition Date, as well as adjustments made in the period after the Acquisition Date to the amounts initially recorded in 2013 (the "Measurement Period Adjustments"). Accordingly, the Company retrospectively adjusted its consolidated balance sheet as of December 31, 2013 to reflect these Measurement Period Adjustments. The Measurement Period Adjustments did not have a material impact on the Company's Consolidated Statements of Income and Comprehensive Income for the year ended December 31, 2013. | ||||||||||||||||
The total consideration of $664.5 million was recorded based on the respective estimated fair values of the net assets acquired on the Acquisition Date with resulting goodwill, as follows: | ||||||||||||||||
Amounts Previously Recognized as of October 9, 2013 (Provisional) (a) | Measurement Period Adjustments | Amounts Recognized as of Acquisition Date (Adjusted) | ||||||||||||||
Cash and cash equivalents | $ | 36.9 | $ | — | $ | 36.9 | ||||||||||
Trade receivables | 83.9 | — | 83.9 | |||||||||||||
Inventories | 75.1 | — | 75.1 | |||||||||||||
Prepaid expenses and other | 31.3 | — | 31.3 | |||||||||||||
Property, plant and equipment | 96.7 | — | 96.7 | |||||||||||||
Intangible assets(b) | 292.7 | 5.4 | 298.1 | |||||||||||||
Goodwill(b)(c) | 255.7 | (2.4 | ) | 253.3 | ||||||||||||
Deferred tax asset - noncurrent | 53.1 | — | 53.1 | |||||||||||||
Other assets(c) | 1.9 | 3.9 | 5.8 | |||||||||||||
Total assets acquired | 927.3 | 6.9 | 934.2 | |||||||||||||
Accounts payable | 48 | — | 48 | |||||||||||||
Accrued expenses and other | 65.6 | — | 65.6 | |||||||||||||
Long-term debt | 0.9 | — | 0.9 | |||||||||||||
Long-term pension and other benefit plan liabilities | 4.5 | — | 4.5 | |||||||||||||
Deferred tax liability(b) | 123.3 | 2.1 | 125.4 | |||||||||||||
Other long-term liabilities(c) | 20.5 | 4.8 | 25.3 | |||||||||||||
Total liabilities assumed | 262.8 | 6.9 | 269.7 | |||||||||||||
Total consideration | $ | 664.5 | $ | — | $ | 664.5 | ||||||||||
(a) As previously reported in the Company's 2013 Form 10-K. | ||||||||||||||||
(b) The Measurement Period Adjustments to intangible assets, deferred tax liability and goodwill in the first quarter of 2014 related to a change in assumptions used to calculate the fair value of an acquired customer relationship intangible asset, which increased the intangible asset by $5.4 million and extended the life of the asset from 10 to 20 years, increased deferred tax liabilities by $2.1 million, and resulted in a net decrease to goodwill of $3.3 million. | ||||||||||||||||
(c) The Company recorded a $3.9 million income tax adjustment to the beginning tax balance within other assets and a $4.8 million adjustment to other long-term liabilities, resulting in a net increase to goodwill of $0.9 million. | ||||||||||||||||
In determining the fair values of net assets acquired and resulting goodwill, the Company considered, among other factors, an analysis of Colomer's historical financial performance and an estimate of the future performance of the acquired business, as well as market participants' intended use of the acquired assets. | ||||||||||||||||
The acquired intangible assets, based on the fair values of the identifiable intangible assets, are as follows: | ||||||||||||||||
Fair Values at October 9, 2013 | Weighted Average Useful Life (in years) | |||||||||||||||
Trade names, indefinite-lived | $ | 108.6 | Indefinite | |||||||||||||
Trade names, finite-lived | 109.4 | 20-May | ||||||||||||||
Customer relationships | 62.4 | 15 - 20 | ||||||||||||||
License agreement | 4.1 | 10 | ||||||||||||||
Internally-developed IP | 13.6 | 10 | ||||||||||||||
Total acquired intangible assets | $ | 298.1 | ||||||||||||||
Unaudited Pro Forma Results | ||||||||||||||||
The following table presents the Company's pro forma consolidated net sales and income from continuing operations, before income taxes for the three and nine months ended September 30, 2013. The unaudited pro forma results include the historical consolidated statements of operations of the Company and Colomer, giving effect to the Colomer Acquisition and related financing transactions as if they had occurred on January 1, 2012. | ||||||||||||||||
Unaudited Pro Forma Results | ||||||||||||||||
Three Months Ended | Nine Months Ended September 30, 2013 | |||||||||||||||
September 30, 2013 | ||||||||||||||||
Net sales | $ | 473.9 | $ | 1,408.10 | ||||||||||||
Income from continuing operations, before income taxes | 45.3 | 100.4 | ||||||||||||||
The pro forma results, prepared in accordance with U.S. GAAP, include the following pro forma adjustments related to the Colomer Acquisition: | ||||||||||||||||
(i) the pro forma increase in depreciation and amortization expense based on the fair value adjustments to property, plant and equipment and acquired finite-lived intangible assets recorded in connection with the Colomer Acquisition of $4.6 million and $13.8 million in the three and nine months ended September 30, 2013, respectively; | ||||||||||||||||
(ii) the elimination of goodwill impairment charges recognized by Colomer of $9.0 million, in both the three and nine months ended September 30, 2013; | ||||||||||||||||
(iii) the elimination of acquisition and integration costs recognized by the Company and Colomer aggregating to $5.9 million and $6.7 million in the three and nine months ended September 30, 2013, respectively; | ||||||||||||||||
(iv) the elimination of Colomer's debt facility fees of $3.6 million, in both the three and nine months ended September 30, 2013, respectively, as the debt facility was terminated on the Acquisition Date; and | ||||||||||||||||
(v) the pro forma increase in interest expense and amortization of debt issuance costs, resulting from the issuance of the Acquisition Term Loan used by Products Corporation to finance the Colomer Acquisition, for a total combined increase of $6.2 million and $18.5 million for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||
The unaudited pro forma results do not include: (1) any revenue or cost reductions that may be achieved through the business combination; or (2) the impact of non-recurring items directly related to the business combination. | ||||||||||||||||
The unaudited pro forma results are not necessarily indicative of the operating results that would have occurred if the Colomer Acquisition had been completed as of the date for which the pro forma financial information is presented. In addition, the unaudited pro forma results do not purport to project the future consolidated operating results of the combined company. |
RESTRUCTURING_CHARGES
RESTRUCTURING CHARGES | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Restructuring Charges [Abstract] | ' | |||||||||||||||||||||||||||
RESTRUCTURING CHARGES | ' | |||||||||||||||||||||||||||
RESTRUCTURING CHARGES | ||||||||||||||||||||||||||||
Integration Program | ||||||||||||||||||||||||||||
In January 2014, the Company announced that it was implementing actions to integrate Colomer’s operations into the Company’s business, as well as additional restructuring actions identified to reduce costs across the Company’s businesses (all such actions, together, the “Integration Program”). | ||||||||||||||||||||||||||||
The Company expects to recognize total restructuring charges, capital expenditures and related non-restructuring costs under the Integration Program of approximately $50 million in the aggregate over the periods described below. | ||||||||||||||||||||||||||||
The Integration Program is designed to deliver cost reductions throughout the combined organization by generating synergies and operating efficiencies within the Company’s global supply chain and consolidating offices and back office support, and other actions designed to reduce selling, general and administrative ("SG&A") expenses. Certain actions that are part of the Integration Program are subject to consultations with employees, works councils or unions and governmental authorities. The Company expects to substantially complete the Integration Program by the end of 2015. | ||||||||||||||||||||||||||||
The approximately $50 million of total expected non-restructuring costs, capital expenditures and restructuring charges under the Integration Program referred to above consist of the following: | ||||||||||||||||||||||||||||
1 | $12.5 million and $4.9 million of non-restructuring integration costs recognized in 2013 and for the nine months ended September 30, 2014, respectively. Such costs have been reflected within acquisition and integration costs in the Company's Consolidated Statements of Income and Comprehensive Income and are related to combining Colomer’s operations into the Company’s business; | |||||||||||||||||||||||||||
2 | Expected integration-related capital expenditures of approximately $7 million, $3.3 million of which has been paid in the nine months ended September 30, 2014, approximately $1.9 million is expected to be paid during the remainder of 2014 and the remaining balance in 2015; and | |||||||||||||||||||||||||||
3 | The Company expects total restructuring and related charges of approximately $26 million, $17.1 million of which was recognized for the nine months ended September 30, 2014. Approximately $4 million of charges are expected to be recognized during the remainder of 2014 and any remaining charges to be recognized in 2015. A summary of the restructuring and related charges incurred through September 30, 2014 and expected to be incurred for the Integration Program, are as follows: | |||||||||||||||||||||||||||
Restructuring Charges and Other, Net | ||||||||||||||||||||||||||||
Employee Severance and Other Personnel Benefits | Other | Total Restructuring Charges | Inventory Write-offs and Other Manufacturing-Related Costs (a) | Other Charges (b) | Total Restructuring and Related Charges | |||||||||||||||||||||||
Charges incurred through the nine months ended September 30, 2014 | $ | 15.2 | $ | 1.2 | $ | 16.4 | $ | 0.2 | $ | 0.5 | $ | 17.1 | ||||||||||||||||
Total expected charges | $ | 17.5 | $ | 3 | $ | 20.5 | $ | 2 | $ | 3.5 | $ | 26 | ||||||||||||||||
(a) | Inventory write-offs and other manufacturing-related costs are recorded within cost of sales within the Company’s Consolidated Statements of Income and Comprehensive Income. | |||||||||||||||||||||||||||
(b) | Other charges are recorded within SG&A expenses within the Company’s Consolidated Statements of Income and Comprehensive Income. | |||||||||||||||||||||||||||
Of the $17.1 million of restructuring and related charges recognized through the third quarter 2014, $7.3 million relate to the Consumer segment and $9.8 million relate to the Professional segment. | ||||||||||||||||||||||||||||
The Company expects that cash payments related to the restructuring and related charges in connection with the Integration Program will total approximately $25 million, of which $6.4 million was paid during the nine months ended September 30, 2014, approximately $7 million is expected to be paid during the remainder of 2014 and the majority of the remaining balance is expected to be paid in 2015. | ||||||||||||||||||||||||||||
December 2013 Program | ||||||||||||||||||||||||||||
In December 2013, the Company announced restructuring actions that include exiting its business operations in China, as well as implementing other immaterial restructuring actions outside the U.S. that are expected to generate other operating efficiencies (the "December 2013 Program"). Certain of these restructuring actions are subject to consultations with employees, works councils or unions and governmental authorities and has resulted in the Company eliminating approximately 1,100 positions in 2014, primarily in China, which included eliminating in the first quarter of 2014 approximately 940 beauty advisors retained indirectly through a third-party agency. The charges incurred for the December 2013 Program relate entirely to the Consumer segment. | ||||||||||||||||||||||||||||
A summary of the restructuring and related charges incurred through September 30, 2014 and expected to be incurred for the December 2013 Program, are as follows: | ||||||||||||||||||||||||||||
Restructuring Charges and Other, Net | ||||||||||||||||||||||||||||
Employee Severance and Other Personnel Benefits | Other | Total Restructuring Charges | Allowances and Returns | Inventory Write-offs | Other Charges | Total Restructuring and Related Charges | ||||||||||||||||||||||
Charges incurred through December 31, 2013 | $ | 9.1 | $ | 0.5 | $ | 9.6 | $ | 7.4 | $ | 4 | $ | 0.4 | $ | 21.4 | ||||||||||||||
Adjustments recorded for the nine months ended September 30, 2014 (a) | (0.5 | ) | (0.2 | ) | (0.7 | ) | (0.9 | ) | (0.9 | ) | — | (2.5 | ) | |||||||||||||||
Cumulative charges incurred through September 30, 2014 | $ | 8.6 | $ | 0.3 | $ | 8.9 | $ | 6.5 | $ | 3.1 | $ | 0.4 | $ | 18.9 | ||||||||||||||
Total expected charges | $ | 8.6 | $ | 0.3 | $ | 8.9 | $ | 6.5 | $ | 3.1 | $ | 0.4 | $ | 18.9 | ||||||||||||||
(a) | Of the $2.5 million adjustments for the nine months ended September 30, 2014 related to the December 2013 Program, $2.3 million relates to the Company's exit of its business operations in China and is recorded within income (loss) from discontinued operations, net of taxes. See Note 4, "Discontinued Operations," for further discussion. The remaining $0.2 million is recorded in restructuring charges and other, net within income from continuing operations, net of taxes. | |||||||||||||||||||||||||||
The Company expects cash payments related to the December 2013 Program to total approximately $17 million, of which $0.1 million was paid in 2013, $15.1 million was paid during the nine months ended September 30, 2014, and the majority of the remaining balance is expected to be paid during the remainder of 2014. | ||||||||||||||||||||||||||||
September 2012 Program | ||||||||||||||||||||||||||||
In September 2012, the Company announced a restructuring (the “September 2012 Program”), which primarily involved the Company exiting its owned manufacturing facility in France and its leased manufacturing facility in Maryland; rightsizing its organizations in France and Italy; and realigning its operations in Latin America and Canada. The charges incurred related to the September 2012 Program relate entirely to the Consumer segment. | ||||||||||||||||||||||||||||
During the first nine months of 2013, the Company recorded charges related to the September 2012 Program of $2.2 million. Of the $2.2 million charge, $1.8 million was recorded in restructuring charges, $0.2 million was recorded in cost of sales and $0.2 million was recorded in SG&A expenses. The Company recognized cumulative charges of $27.2 million through December 31, 2013 related to the September 2012 Program, all of which relate to the Company's Consumer segment. There were no charges related to such program for the nine months ended September 30, 2014. | ||||||||||||||||||||||||||||
The Company expects net cash payments to total approximately $25 million related to the September 2012 Program, of which $21.1 million was paid cumulatively through December 31, 2013, $3.2 million was paid during the nine months ended September 30, 2014 and the balance is expected to be paid during the remainder of 2014. | ||||||||||||||||||||||||||||
Other Immaterial Actions | ||||||||||||||||||||||||||||
During the first nine months of 2014, the Company recorded net charges totaling $1.9 million within restructuring charges and other, net, for other immaterial restructuring actions within the Consumer segment, primarily due to $2.2 million of charges related to employee-related costs, partially offset by a $0.3 million gain related to the sale of equipment. | ||||||||||||||||||||||||||||
Restructuring Reserve | ||||||||||||||||||||||||||||
The related liability balance and activity for the restructuring costs are presented below: | ||||||||||||||||||||||||||||
Utilized, Net | ||||||||||||||||||||||||||||
Balance | (Income) Expense, Net | Foreign Currency Translation | Cash | Non-cash | Balance End of Year | |||||||||||||||||||||||
Beginning of Year | ||||||||||||||||||||||||||||
Integration Program: | ||||||||||||||||||||||||||||
Employee severance and other personnel benefits | $ | — | $ | 15.2 | $ | — | $ | (5.1 | ) | $ | — | $ | 10.1 | |||||||||||||||
Other | — | 1.2 | — | (1.0 | ) | — | 0.2 | |||||||||||||||||||||
December 2013 Program: | ||||||||||||||||||||||||||||
Employee severance and other personnel benefits | 9 | (0.5 | ) | (0.2 | ) | (7.3 | ) | 0.2 | 1.2 | |||||||||||||||||||
Other | 0.5 | (0.2 | ) | — | (0.3 | ) | — | — | ||||||||||||||||||||
September 2012 Program: | ||||||||||||||||||||||||||||
Employee severance and other personnel benefits | 2.7 | — | (0.1 | ) | (2.4 | ) | 0.2 | |||||||||||||||||||||
Other | 1.5 | — | — | (0.8 | ) | — | 0.7 | |||||||||||||||||||||
2014 Other Immaterial Actions: | ||||||||||||||||||||||||||||
Employee severance and other personnel benefits | — | 2.2 | (0.1 | ) | (1.8 | ) | — | 0.3 | ||||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||||||
Total restructuring reserve | $ | 13.7 | $ | 17.9 | $ | (0.4 | ) | $ | (18.7 | ) | $ | 0.2 | $ | 12.7 | ||||||||||||||
Gain on sale of equipment for 2014 Other Immaterial Actions | (0.3 | ) | ||||||||||||||||||||||||||
Portion of restructuring benefits recorded within income (loss) from discontinued operations (a) | 0.5 | |||||||||||||||||||||||||||
Total restructuring charges and other, net, from continuing operations | $ | 18.1 | ||||||||||||||||||||||||||
(a) Refer to Note 4, "Discontinued Operations" for additional information regarding the Company's exit of its business operations in China. | ||||||||||||||||||||||||||||
As of September 30, 2014, $12.2 million of the restructuring reserve balance was included within accrued expenses and other and $0.5 million was included within other long-term liabilities in the Company's Consolidated Balance Sheet. As of December 31, 2013, the entire restructuring reserve balance was included within accrued expenses and other in the Company's Consolidated Balance Sheet. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
DISCONTINUED OPERATIONS | ' | |||||||||||||||
DISCONTINUED OPERATIONS | ||||||||||||||||
On December 30, 2013, the Company announced that it was implementing restructuring actions that include exiting its business operations in China (refer to Note 3, "Restructuring Charges"). The Company expects to complete such exit by the end of 2014. | ||||||||||||||||
The results of the China discontinued operations are included within income (loss) from discontinued operations, net of taxes, within the Consumer segment. The summary comparative financial results of discontinued operations are as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales (a) | $ | — | $ | 6.3 | $ | 2.6 | $ | 17.7 | ||||||||
Income (loss) from discontinued operations, before taxes | 0.4 | (1.6 | ) | 1.1 | (6.7 | ) | ||||||||||
Provision for income taxes | — | 0.1 | 0.2 | 0.4 | ||||||||||||
Income (loss) from discontinued operations, net of taxes | 0.4 | (1.5 | ) | 0.9 | (6.3 | ) | ||||||||||
(a) Net sales during the first nine months of 2014 primarily represent favorable adjustments to sales returns related to the Company's exit of its China operations. | ||||||||||||||||
Assets and liabilities of discontinued operations included in the Consolidated Balance Sheets consist of the following: | ||||||||||||||||
September 30, | December 31, 2013 | |||||||||||||||
2014 | ||||||||||||||||
Cash and cash equivalents | $ | 3.4 | $ | 0.9 | ||||||||||||
Trade receivables, net | 0.2 | 1.9 | ||||||||||||||
Inventories | — | — | ||||||||||||||
Other current assets | 0.1 | — | ||||||||||||||
Total current assets | 3.7 | 2.8 | ||||||||||||||
Total assets | $ | 3.7 | $ | 2.8 | ||||||||||||
Accounts payable | $ | 1.5 | $ | 4.7 | ||||||||||||
Accrued expenses and other | 4 | 27.6 | ||||||||||||||
Total current liabilities | 5.5 | 32.3 | ||||||||||||||
Other long-term liabilities | — | 2.8 | ||||||||||||||
Total liabilities | $ | 5.5 | $ | 35.1 | ||||||||||||
PENSION_AND_POSTRETIREMENT_BEN
PENSION AND POST-RETIREMENT BENEFITS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||
PENSION AND POST-RETIREMENT BENEFITS | ' | |||||||||||||||
PENSION AND POST-RETIREMENT BENEFITS | ||||||||||||||||
The components of net periodic benefit (income) costs for the Company’s pension and the other post-retirement benefit plans for the third quarter of 2014 and 2013 were as follows: | ||||||||||||||||
Other | ||||||||||||||||
Post-Retirement | ||||||||||||||||
Pension Plans | Benefit Plans | |||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net periodic benefit (income) costs: | ||||||||||||||||
Service cost | $ | 0.2 | $ | 0.3 | $ | — | $ | — | ||||||||
Interest cost | 7.5 | 6.9 | 0.2 | 0.1 | ||||||||||||
Expected return on plan assets | (10.3 | ) | (9.6 | ) | — | — | ||||||||||
Amortization of actuarial loss | 1.1 | 2.1 | — | 0.1 | ||||||||||||
(1.5 | ) | (0.3 | ) | 0.2 | 0.2 | |||||||||||
Portion allocated to Revlon Holdings | (0.1 | ) | — | — | — | |||||||||||
$ | (1.6 | ) | $ | (0.3 | ) | $ | 0.2 | $ | 0.2 | |||||||
The components of net periodic benefit (income) costs for the Company's pension and the other post-retirement benefit plans for the first nine months of 2014 and 2013 were as follows: | ||||||||||||||||
Other | ||||||||||||||||
Post-Retirement | ||||||||||||||||
Pension Plans | Benefit Plans | |||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net periodic benefit (income) costs: | ||||||||||||||||
Service cost | $ | 0.6 | $ | 0.7 | $ | — | $ | — | ||||||||
Interest cost | 22.6 | 20.7 | 0.5 | 0.4 | ||||||||||||
Expected return on plan assets | (31.0 | ) | (28.7 | ) | — | — | ||||||||||
Amortization of actuarial loss | 3.3 | 6.4 | 0.1 | 0.3 | ||||||||||||
(4.5 | ) | (0.9 | ) | 0.6 | 0.7 | |||||||||||
Portion allocated to Revlon Holdings | (0.1 | ) | (0.1 | ) | — | — | ||||||||||
$ | (4.6 | ) | $ | (1.0 | ) | $ | 0.6 | $ | 0.7 | |||||||
In the three and nine months ended September 30, 2014, the Company recognized net periodic benefit income of $(1.4) million and $(4.0) million, respectively, compared to $(0.1) million and $(0.3) million in the three and nine months ended September 30, 2013, respectively, primarily due to an increase in the fair value of pension plan assets at December 31, 2013, as well as lower amortization of actuarial losses. | ||||||||||||||||
Net periodic benefit (income) costs are reflected in the Company's Unaudited Consolidated Financial Statements as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net periodic benefit (income) costs: | ||||||||||||||||
Cost of sales | $ | (1.2 | ) | $ | (0.6 | ) | $ | (3.0 | ) | $ | (1.5 | ) | ||||
Selling, general and administrative expense | (0.2 | ) | 0.6 | (0.5 | ) | 1.8 | ||||||||||
Inventories | — | (0.1 | ) | (0.5 | ) | (0.6 | ) | |||||||||
$ | (1.4 | ) | $ | (0.1 | ) | $ | (4.0 | ) | $ | (0.3 | ) | |||||
The Company expects that it will have net periodic benefit income of approximately $(5) million for its pension and other post-retirement benefit plans for all of 2014, compared with net periodic benefit income of $(0.4) million in 2013. | ||||||||||||||||
During the third quarter of 2014, $4.5 million and $0.2 million were contributed to the Company's pension and post-retirement benefit plans, respectively. During the first nine months of 2014, $15.8 million and $0.6 million were contributed to the Company’s pension plans and other post-retirement benefit plans, respectively. The Company currently expects to contribute approximately $20 million in the aggregate to its pension and other post-retirement benefit plans in 2014. | ||||||||||||||||
Relevant aspects of the qualified defined benefit pension plans, nonqualified pension plans and other post-retirement benefit plans sponsored by Products Corporation are disclosed in Note 15, "Savings Plan, Pension and Post-Retirement Benefits," to the Consolidated Financial Statements in the Company's 2013 Form 10-K. |
SEGMENT_DATA_AND_RELATED_INFOR
SEGMENT DATA AND RELATED INFORMATION | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
SEGMENT DATA AND RELATED INFORMATION | ' | |||||||||||||||||||||||
6. SEGMENT DATA AND RELATED INFORMATION | ||||||||||||||||||||||||
Reportable operating segments include components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the “Chief Executive Officer”) in deciding how to allocate resources and in assessing performance. As a result of the similarities in the procurement, marketing and distribution processes for all of the Company’s products, much of the information provided in the consolidated financial statements is similar to, or the same as, that reviewed on a regular basis by the Company's management. | ||||||||||||||||||||||||
At September 30, 2014, the Company’s operations are organized into the following two operating segments, which also represent the Company’s reportable segments: | ||||||||||||||||||||||||
• | Consumer - The Consumer segment is comprised of the Company's consumer brands, which primarily include Revlon, Almay, SinfulColors and Pure Ice in cosmetics; Revlon ColorSilk in women’s hair color; Revlon in beauty tools; and Mitchum in anti-perspirant deodorants. The Company’s principal customers for its consumer products include the mass retail channel, consisting of large mass volume retailers and chain drug and food stores in the U.S. and internationally, as well as certain department stores and other specialty stores, such as perfumeries, outside the U.S. The Consumer segment also includes a skincare and hair color line sold in the mass retail channel, primarily in Spain, which were acquired as part of the Colomer Acquisition. | |||||||||||||||||||||||
• | Professional - The Professional segment is comprised primarily of the brands which the Company acquired in the Colomer Acquisition, which include Revlon Professional in hair color and hair care; CND-branded products in nail polishes and nail enhancements; and American Crew in men’s grooming products, all of which are sold worldwide in the professional salon channel. The Company’s principal customers for its professional products include hair and nail salons and distributors in the U.S. and internationally. The Professional segment also includes a multi-cultural line consisting of Creme of Nature hair care products sold in the mass retail channel and in professional salons, primarily in the U.S. | |||||||||||||||||||||||
The Company's management evaluates segment profit, which is defined as income from continuing operations before interest, taxes, depreciation, amortization, stock-based compensation expense, gains/losses on foreign currency fluctuations, gains/losses on the early extinguishment of debt and miscellaneous expenses, for each of the Company's Consumer and Professional segments. Segment profit also excludes unallocated corporate expenses and the impact of certain items that are not directly attributable to the segments' underlying operating performance, which for the three and nine months ended September 30, 2014 and 2013 include the impact of: (i) restructuring and related charges; (ii) acquisition and integration costs; (iii) costs of sales resulting from a fair value adjustment to inventory acquired in the Colomer Acquisition; (iv) insurance proceeds received in 2013 related to the 2011 fire that destroyed the Company's facility in Venezuela; and (v) an accrual for estimated clean-up costs related to the Company's facility in Venezuela. Such items are shown in the table reconciling segment profit to consolidated income from continuing operations before income taxes. Unallocated corporate expenses primarily include general and administrative expenses related to the corporate organization. These expenses are recorded in unallocated corporate expenses as these items are centrally directed and controlled and are not included in internal measures of segment operating performance. The Company does not have any material inter-segment sales. | ||||||||||||||||||||||||
The accounting policies for each of the reportable segments are the same as those described in Note 1, “Description of Business and Summary of Significant Accounting Policies” in the Company's 2013 Form 10-K. The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; thus, no additional information regarding assets and liabilities of the Company’s operating segments is produced for the Company's management or included herein. | ||||||||||||||||||||||||
The following table is a comparative summary of the Company’s net sales and segment profit by operating segment for the three and nine months ended September 30, 2014 and 2013: | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2014 (a) | 2013 | 2014 (a) | 2013 | |||||||||||||||||||||
Segment Net Sales: | ||||||||||||||||||||||||
Consumer | $ | 348.2 | $ | 333.1 | $ | 1,055.00 | $ | 1,003.70 | ||||||||||||||||
Professional | 124.1 | — | 385 | — | ||||||||||||||||||||
Total | $ | 472.3 | $ | 333.1 | $ | 1,440.00 | $ | 1,003.70 | ||||||||||||||||
Segment Profit: | ||||||||||||||||||||||||
Consumer | $ | 78.1 | $ | 78.9 | $ | 232 | $ | 240.2 | ||||||||||||||||
Professional | 25.2 | — | 88.5 | — | ||||||||||||||||||||
Total | $ | 103.3 | $ | 78.9 | $ | 320.5 | $ | 240.2 | ||||||||||||||||
Reconciliation: | ||||||||||||||||||||||||
Segment Profit | $ | 103.3 | $ | 78.9 | $ | 320.5 | $ | 240.2 | ||||||||||||||||
Less: | ||||||||||||||||||||||||
Unallocated corporate expenses | 15.8 | 12.7 | 47 | 40.9 | ||||||||||||||||||||
Depreciation and amortization | 25.6 | 17.4 | 76.4 | 51.4 | ||||||||||||||||||||
Non-cash stock compensation expense | 3.2 | — | 3.7 | — | ||||||||||||||||||||
Non-recurring items: | ||||||||||||||||||||||||
Restructuring and related charges | 1.1 | (1.4 | ) | 18.8 | 2.2 | |||||||||||||||||||
Acquisition and integration costs | 0.9 | 5.9 | 5.4 | 6.3 | ||||||||||||||||||||
Inventory purchase accounting adjustment, cost of sales | — | — | 2.6 | — | ||||||||||||||||||||
Gain from insurance proceeds related to Venezuela fire | — | — | — | (26.4 | ) | |||||||||||||||||||
Accrual for clean-up costs related to destroyed facility in Venezuela | — | — | — | 4.5 | ||||||||||||||||||||
Operating Income | 56.7 | 44.3 | 166.6 | 161.3 | ||||||||||||||||||||
Less: | ||||||||||||||||||||||||
Interest Expense | 20.6 | 17.8 | 63.9 | 55.5 | ||||||||||||||||||||
Amortization of debt issuance costs | 1.3 | 0.8 | 4.1 | 2.2 | ||||||||||||||||||||
Loss on early extinguishment of debt | — | 0.2 | 2 | 28.1 | ||||||||||||||||||||
Foreign currency losses (gains), net | 9.3 | 0.4 | 17.9 | 3.2 | ||||||||||||||||||||
Miscellaneous, net | 0.1 | 0.6 | 0.2 | 0.8 | ||||||||||||||||||||
Income from continuing operations before income taxes | $ | 25.4 | $ | 24.5 | $ | 78.5 | $ | 71.5 | ||||||||||||||||
(a) Consumer segment net sales and segment profit include the results of retail brands acquired in the Colomer Acquisition, which had previously been included in the Professional segment. | ||||||||||||||||||||||||
As of September 30, 2014, the Company had operations established in 24 countries outside of the U.S. and its products are sold throughout the world. Generally, net sales by geographic area are presented by attributing revenues from external customers on the basis of where the products are sold. | ||||||||||||||||||||||||
In the tables below, certain prior year amounts have been reclassified to conform to the current period’s presentation. | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Geographic area: | ||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
United States | $ | 243.8 | 52% | $ | 185.8 | 56% | $ | 749.2 | 52% | $ | 581.8 | 58% | ||||||||||||
Outside of the United States | 228.5 | 48% | 147.3 | 44% | 690.8 | 48% | 421.9 | 42% | ||||||||||||||||
$ | 472.3 | $ | 333.1 | $ | 1,440.00 | $ | 1,003.70 | |||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Long-lived assets, net: | ||||||||||||||||||||||||
United States | $ | 847.6 | 75% | $ | 837 | 73% | ||||||||||||||||||
Outside of the United States | 281.5 | 25% | 315.1 | 27% | ||||||||||||||||||||
$ | 1,129.10 | $ | 1,152.10 | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Classes of similar products: | ||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
Color cosmetics | $ | 242.6 | 51% | $ | 212.3 | 64% | $ | 763.5 | 53% | $ | 662.1 | 66% | ||||||||||||
Hair care | 132.8 | 28% | 43.1 | 13% | 405.5 | 28% | 131 | 13% | ||||||||||||||||
Beauty care and fragrance | 96.9 | 21% | 77.7 | 23% | 271 | 19% | 210.6 | 21% | ||||||||||||||||
$ | 472.3 | $ | 333.1 | $ | 1,440.00 | $ | 1,003.70 | |||||||||||||||||
INVENTORIES
INVENTORIES | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORIES | ' | |||||||
INVENTORIES | ||||||||
30-Sep-14 | December 31, | |||||||
2013 | ||||||||
Raw materials and supplies | $ | 53.7 | $ | 50.8 | ||||
Work-in-process | 13.4 | 12.8 | ||||||
Finished goods | 120.1 | 111.4 | ||||||
$ | 187.2 | $ | 175 | |||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS, NET | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET | ' | |||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET | ||||||||||||
Goodwill | ||||||||||||
The following table presents the changes in goodwill by segment during the nine months ended September 30, 2014: | ||||||||||||
Consumer | Professional | Total | ||||||||||
Balance at December 31, 2013 before Measurement Period Adjustments (a) | $ | 217.9 | $ | 256.8 | $ | 474.7 | ||||||
Measurement Period Adjustments | — | (2.4 | ) | (2.4 | ) | |||||||
Balance at December 31, 2013 | 217.9 | 254.4 | 472.3 | |||||||||
Foreign currency translation adjustment | — | (5.5 | ) | (5.5 | ) | |||||||
Balance at September 30, 2014 | $ | 217.9 | $ | 248.9 | $ | 466.8 | ||||||
(a) As previously reported in the Company's 2013 Form 10-K. | ||||||||||||
During the first quarter of 2014, the Company recorded Measurement Period Adjustments to certain net assets and intangible assets acquired in the Colomer Acquisition on October 9, 2013. See Note 2, "Business Combination" for further discussion of the Colomer Acquisition. | ||||||||||||
Intangible Assets, Net | ||||||||||||
The following tables present details of the Company's total intangible assets: | ||||||||||||
30-Sep-14 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Finite-lived intangible assets: | ||||||||||||
Trademarks and Licenses | $ | 140.6 | $ | (20.8 | ) | $ | 119.8 | |||||
Customer relationships | 110 | (11.8 | ) | 98.2 | ||||||||
Patents and Internally-Developed IP | 16.1 | (2.0 | ) | 14.1 | ||||||||
Total finite-lived intangible assets | $ | 266.7 | $ | (34.6 | ) | $ | 232.1 | |||||
Indefinite-lived intangible assets: | ||||||||||||
Trade Names | $ | 104 | $ | 104 | ||||||||
Total indefinite-lived intangible assets | $ | 104 | $ | 104 | ||||||||
Total intangible assets | $ | 370.7 | $ | (34.6 | ) | $ | 336.1 | |||||
December 31, 2013 (a) | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Finite-lived intangible assets: | ||||||||||||
Trademarks and Licenses | $ | 142.1 | $ | (11.0 | ) | $ | 131.1 | |||||
Customer relationships | 111.5 | (6.7 | ) | 104.8 | ||||||||
Patents and Internally-Developed IP | 15.8 | (1.3 | ) | 14.5 | ||||||||
Total finite-lived intangible assets | $ | 269.4 | $ | (19.0 | ) | $ | 250.4 | |||||
Indefinite-lived intangible assets: | ||||||||||||
Trade Names | $ | 109.7 | $ | 109.7 | ||||||||
Total indefinite-lived intangible assets | $ | 109.7 | $ | 109.7 | ||||||||
Total intangible assets | $ | 379.1 | $ | (19.0 | ) | $ | 360.1 | |||||
(a) During the first quarter of 2014, the Company recorded Measurement Period Adjustments to customer relationships acquired in the Colomer Acquisition on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. |
ACCRUED_EXPENSES_AND_OTHER
ACCRUED EXPENSES AND OTHER | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
ACCRUED EXPENSES AND OTHER | ' | |||||||
ACCRUED EXPENSES AND OTHER | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Sales returns and allowances | $ | 61.3 | $ | 91.5 | ||||
Compensation and related benefits | 71.2 | 74.5 | ||||||
Advertising and promotional costs | 48.1 | 42.9 | ||||||
Taxes | 21 | 28.4 | ||||||
Interest | 3.8 | 13.8 | ||||||
Restructuring reserve | 12.2 | 13.7 | ||||||
Other | 43.9 | 48.8 | ||||||
$ | 261.5 | $ | 313.6 | |||||
LONGTERM_DEBT
LONG-TERM DEBT | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
LONG-TERM DEBT | ' | |||||||
LONG-TERM DEBT | ||||||||
September 30, | 31-Dec-13 | |||||||
2014 | ||||||||
Amended Term Loan Facility: Acquisition Term Loan due 2019, net of discounts (a) | $ | 693.3 | $ | 698.3 | ||||
Amended Term Loan Facility: 2011 Term Loan due 2017, net of discounts (a) | 671.3 | 670.1 | ||||||
Amended Revolving Credit Facility (b) | — | — | ||||||
5¾% Senior Notes due 2021 (c) | 500 | 500 | ||||||
Non-Contributed Loan Portion of the Amended and Restated Senior Subordinated Term Loan due 2014 (d) | — | 58.4 | ||||||
Spanish Government Loan due 2025 (e) | 0.7 | 0.9 | ||||||
1,865.30 | 1,927.70 | |||||||
Less current portion | (7.0 | ) | (65.4 | ) | ||||
$ | 1,858.30 | $ | 1,862.30 | |||||
(a) In February 2014, Products Corporation entered into an amendment (the “February 2014 Term Loan Amendment”) to its amended term loan agreement, which is comprised of (i) the $675.0 million term loan due November 19, 2017 (the "2011 Term Loan") and (ii) the $700.0 million term loan due October 8, 2019 (the "Acquisition Term Loan"), which had $694.8 million in aggregate principal balance outstanding as of September 30, 2014 (together, the "Amended Term Loan Agreement"). The February 2014 Term Loan Amendment reduced the interest rates applicable to the 2011 Term Loan. See "Recent Debt Transactions - February 2014 Term Loan Amendment" below for further discussion. Additionally, see Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for additional details regarding Products Corporation's Amended Term Loan Agreement. | ||||||||
(b) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding Products Corporation's existing $175.0 million asset-based, multi-currency revolving credit facility (the "Amended Revolving Credit Facility"). | ||||||||
(c) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding Products Corporation's 5¾% Senior Notes that mature on February 15, 2021. | ||||||||
(d) See "Recent Debt Transactions - Repayment of Non-Contributed Loan" below and Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding the $58.4 million non-contributed loan portion of the Amended and Restated Senior Subordinated Term Loan Agreement (the "Non-Contributed Loan"), which Products Corporation optionally prepaid in full on May 1, 2014. | ||||||||
(e) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding the euro-denominated loan payable to the Spanish government which matures on June 30, 2025. | ||||||||
Recent Debt Transactions | ||||||||
February 2014 Term Loan Amendment | ||||||||
In February 2014, Products Corporation entered into the February 2014 Term Loan Amendment to its Amended Term Loan Agreement among Products Corporation, as borrower, a syndicate of lenders and Citicorp USA, Inc., as administrative and collateral agent. | ||||||||
Pursuant to the February 2014 Term Loan Amendment, the interest rates applicable to Eurodollar Loans under the $675.0 million 2011 Term Loan bear interest at the Eurodollar Rate plus 2.5% per annum, with the Eurodollar Rate not to be less than 0.75% (compared to 3.0% and 1.0%, respectively, prior to the February 2014 Term Loan Amendment), while Alternate Base Rate Loans under the 2011 Term Loan bear interest at the Alternate Base Rate plus 1.5%, with the Alternate Base Rate not to be less than 1.75% (compared to 2.0% in each case prior to the February 2014 Term Loan Amendment) (and as each such term is defined in the Amended Term Loan Agreement). The 2011 Term Loan is subject to a 1% premium in connection with any repricing transaction occurring prior to the date that is 12 months after the closing of such amendment (or February 26, 2015). | ||||||||
Products Corporation's Acquisition Term Loan and Amended Revolving Credit Facility were not amended in connection with the February 2014 Term Loan Amendment. | ||||||||
For the nine months ended September 30, 2014, the Company incurred approximately $1.1 million of fees and expenses in connection with the February 2014 Term Loan Amendment, which were expensed as incurred, and wrote-off $0.8 million of unamortized debt discount and deferred financing costs as a result of the February 2014 Term Loan Amendment. These amounts, totaling $1.9 million, were recognized within loss on early extinguishment of debt in the Company’s Consolidated Statements of Income and Comprehensive Income for the nine months ended September 30, 2014. | ||||||||
Repayment of Non-Contributed Loan | ||||||||
On May 1, 2014, Products Corporation used available cash on hand to optionally prepay in full the remaining $58.4 million principal amount outstanding under the Non-Contributed Loan that remained owing from Products Corporation to various third parties. The Non-Contributed Loan would have otherwise matured on October 8, 2014. In connection with the repayment, the Company wrote-off $0.1 million of deferred financing costs, which were recognized within loss on early extinguishment of debt in the Company's Consolidated Statements of Income and Comprehensive Income for the nine months ended September 30, 2014. | ||||||||
Covenants | ||||||||
Products Corporation was in compliance with all applicable covenants under the Amended Term Loan Agreement and the Amended Revolving Credit Facility as of September 30, 2014. At September 30, 2014, the aggregate principal amounts outstanding under the Acquisition Term Loan and the 2011 Term Loan were $694.8 million and $675.0 million, respectively, and availability under the $175.0 million Amended Revolving Credit Facility, based upon the calculated borrowing base less $9.0 million of outstanding undrawn letters of credit and nil then drawn on the Amended Revolving Credit Facility, was $166.0 million. | ||||||||
Products Corporation was in compliance with all applicable covenants under its 5¾% Senior Notes Indenture as of September 30, 2014. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ' | |||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||
The components of accumulated other comprehensive loss as of September 30, 2014 are as follows: | ||||||||||||||||
Foreign Currency Translation | Actuarial (Loss) Gain on Post-retirement Benefits | Deferred Gain (Loss) - Hedging | Accumulated Other Comprehensive Loss | |||||||||||||
Balance, January 1, 2014 | $ | 19.2 | $ | (170.5 | ) | $ | 1.5 | $ | (149.8 | ) | ||||||
Currency translation adjustment, net of tax benefit of $0.4 million | (17.1 | ) | — | — | (17.1 | ) | ||||||||||
Amortization of pension related costs, net of tax of nil (a) | — | 3.4 | — | 3.4 | ||||||||||||
Revaluation of derivative financial instrument, net of tax benefit of $1.4 million(b) | — | — | (2.3 | ) | (2.3 | ) | ||||||||||
Other comprehensive income (loss) | (17.1 | ) | 3.4 | (2.3 | ) | (16.0 | ) | |||||||||
Balance, September 30, 2014 | $ | 2.1 | $ | (167.1 | ) | $ | (0.8 | ) | $ | (165.8 | ) | |||||
(a) | Amount represents the change in accumulated other comprehensive loss as a result of the amortization of unrecognized prior service costs and actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 5, “Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. | |||||||||||||||
(b) | For the nine months ended September 30, 2014, the 2013 Interest Rate Swap (as hereinafter defined) was deemed effective and therefore the changes in fair value related to the 2013 Interest Rate Swap are recorded in other comprehensive income. See Note 13, "Financial Instruments," for further discussion of the 2013 Interest Rate Swap. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||||
Assets and liabilities are required to be categorized into three levels of fair value based upon the assumptions used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing the fair value measurement of assets and liabilities are as follows: | ||||||||||||||||||||
• | Level 1: Fair valuing the asset or liability using observable inputs, such as quoted prices in active markets for identical assets or liabilities; | |||||||||||||||||||
• | Level 2: Fair valuing the asset or liability using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and | |||||||||||||||||||
• | Level 3: Fair valuing the asset or liability using unobservable inputs that reflect the Company’s own assumptions regarding the applicable asset or liability. | |||||||||||||||||||
As of September 30, 2014, the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: | ||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
FX Contracts(a) | $ | 0.6 | $ | — | $ | 0.6 | $ | — | ||||||||||||
Total assets at fair value | $ | 0.6 | $ | — | $ | 0.6 | $ | — | ||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
FX Contracts(a) | $ | — | $ | — | $ | — | $ | — | ||||||||||||
2013 Interest Rate Swap(b) | 1.2 | — | 1.2 | — | ||||||||||||||||
Total liabilities at fair value | $ | 1.2 | $ | — | $ | 1.2 | $ | — | ||||||||||||
As of December 31, 2013, the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: | ||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
FX Contracts(a) | $ | 1 | $ | — | $ | 1 | $ | — | ||||||||||||
2013 Interest Rate Swap(b) | 2.5 | — | 2.5 | — | ||||||||||||||||
Total assets at fair value | $ | 3.5 | $ | — | $ | 3.5 | $ | — | ||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
FX Contracts(a) | $ | 0.2 | $ | — | $ | 0.2 | $ | — | ||||||||||||
Total liabilities at fair value | $ | 0.2 | $ | — | $ | 0.2 | $ | — | ||||||||||||
(a) | The fair value of the Company’s foreign currency forward exchange contracts ("FX Contracts") was measured based on observable market transactions of spot and forward rates on the respective dates. See Note 13, “Financial Instruments.” | |||||||||||||||||||
(b) | The fair value of the Company's 2013 Interest Rate Swap was measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve on the respective dates. See Note 13, “Financial Instruments.” | |||||||||||||||||||
As of September 30, 2014, the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Long-term debt, including current portion | $ | — | $ | 1,837.30 | $ | — | $ | 1,837.30 | $ | 1,865.30 | ||||||||||
As of December 31, 2013, the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Long-term debt, including current portion | $ | — | $ | 1,931.90 | $ | — | $ | 1,931.90 | $ | 1,927.70 | ||||||||||
The fair value of the Company's long-term debt, including the current portion of long-term debt, is based on the quoted market prices for the same issues or on the current rates offered for debt of similar remaining maturities. | ||||||||||||||||||||
The carrying amounts of cash and cash equivalents, trade receivables, notes receivable, accounts payable and short-term borrowings approximate their fair values. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||
FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||
FINANCIAL INSTRUMENTS | ||||||||||||||||||||
Products Corporation maintains standby and trade letters of credit for various corporate purposes under which Products Corporation is obligated, of which $9.0 million and $9.9 million (including amounts available under credit agreements in effect at that time) were maintained at September 30, 2014 and December 31, 2013, respectively. Included in these amounts is approximately $7.7 million and $8.1 million at September 30, 2014 and December 31, 2013, respectively, in standby letters of credit which support Products Corporation’s self-insurance programs. The estimated liability under such programs is accrued by Products Corporation. | ||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||
The Company uses derivative financial instruments, primarily (i) FX Contracts, intended for the purpose of managing foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on the Company’s net cash flows, and (ii) interest rate hedging transactions, such as the 2013 Interest Rate Swap, intended for the purpose of managing interest rate risk associated with Products Corporation’s variable rate indebtedness. | ||||||||||||||||||||
Foreign Currency Forward Exchange Contracts | ||||||||||||||||||||
The FX Contracts are entered into primarily to hedge the anticipated net cash flows resulting from inventory purchases and intercompany payments denominated in currencies other than the local currencies of the Company’s foreign and domestic operations and generally have maturities of less than one year. | ||||||||||||||||||||
The U.S. Dollar notional amount of the FX Contracts outstanding at September 30, 2014 and December 31, 2013 was $19.8 million and $52.9 million, respectively. | ||||||||||||||||||||
Interest Rate Swap Transaction | ||||||||||||||||||||
In November 2013, Products Corporation executed a forward-starting floating-to-fixed interest rate swap transaction with a 1.00% floor, based on a notional amount of $400 million in respect of indebtedness under the Acquisition Term Loan over a period of three years (the "2013 Interest Rate Swap"). The Company designated the 2013 Interest Rate Swap as a cash flow hedge of the variability of the forecasted three-month LIBOR interest rate payments related to its Acquisition Term Loan with respect to the $400 million notional amount over the three-year term of the 2013 Interest Rate Swap. Under the terms of the 2013 Interest Rate Swap, Products Corporation will receive from the counterparty a floating interest rate based on the higher of three-month USD LIBOR or 1.00% commencing in May 2015, while paying a fixed interest rate payment to the counterparty equal to 2.0709% (which effectively fixes the interest rate on such notional amount at 5.0709% over the three-year term of the 2013 Interest Rate Swap.) For the nine months ended September 30, 2014, the 2013 Interest Rate Swap was deemed effective and therefore the changes in fair value related to the 2013 Interest Rate Swap have been recorded in Other Comprehensive Income. As of September 30, 2014, the balance of deferred net losses on derivatives included in accumulated other comprehensive income was $0.8 million after-tax. (See "Quantitative Information – Derivative Financial Instruments" below). The Company expects that $0.6 million of the after-tax amounts related to the 2013 Interest Rate Swap will be reclassified into earnings over the next 12 months as a result of transactions that are expected to occur over that period. The amount ultimately realized in earnings may differ as the LIBOR is subject to change. Realized gains and losses are ultimately determined by actual rates at maturity of the derivative. | ||||||||||||||||||||
Credit Risk | ||||||||||||||||||||
Exposure to credit risk in the event of nonperformance by any of the counterparties is limited to the gross fair value of the derivative instruments in asset positions, which totaled $0.6 million and $3.5 million as of September 30, 2014 and December 31, 2013, respectively. The Company attempts to minimize exposure to credit risk by generally entering into derivative contracts with counterparties that have investment-grade credit ratings and are major financial institutions. The Company also periodically monitors any changes in the credit ratings of its counterparties. Given the current credit standing of the Company's derivative instrument counterparties, the Company believes the risk of loss under these derivative instruments arising from any non-performance by any of the counterparties is remote. | ||||||||||||||||||||
Quantitative Information – Derivative Financial Instruments | ||||||||||||||||||||
The effects of the Company’s derivative instruments on its consolidated financial statements were as follows: | ||||||||||||||||||||
(a) | Fair Values of Derivative Financial Instruments in Consolidated Balance Sheets: | |||||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||
Balance Sheet | September 30, | December 31, | Balance Sheet | September 30, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Classification | Fair Value | Fair Value | Classification | Fair Value | Fair Value | |||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
2013 Interest Rate Swap(i) | Prepaid expenses and other | $ | — | $ | — | Accrued expenses and other | $ | 1 | $ | — | ||||||||||
Other assets | — | 2.5 | Other long-term liabilities | 0.2 | — | |||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
FX Contracts(ii) | Prepaid expenses and other | $ | 0.6 | $ | 1 | Accrued Expenses | $ | — | $ | 0.2 | ||||||||||
(i) The fair values of the 2013 Interest Rate Swap at September 30, 2014 and December 31, 2013 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
(ii) The fair values of the FX Contracts at September 30, 2014 and December 31, 2013 were measured based on observable market transactions of spot and forward rates at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
(b) Effects of Derivative Financial Instruments on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2014 and 2013: | ||||||||||||||||||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
2013 Interest Rate Swap, net of tax (a) | $ | 0.6 | $ | — | $ | (2.3 | ) | $ | — | |||||||||||
(a) | Net of tax expense (benefit) of $0.4 million and $(1.4) million for the three and nine months ended September 30, 2014, respectively. | |||||||||||||||||||
Income Statement Classification | Amount of Gain (Loss) Recognized in Net Income | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
FX Contracts | Foreign currency losses (gains), net | $ | 1.5 | $ | (1.0 | ) | $ | 0.2 | $ | 1.3 | ||||||||||
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The provision for income taxes represents federal, foreign, state and local income taxes. The effective tax rate differs from the applicable federal statutory rate due to the effect of state and local income taxes, tax rates and income in foreign jurisdictions, utilization of tax loss carryforwards, foreign earnings taxable in the U.S., non-deductible expenses and other items. The Company’s tax provision changes quarterly based on various factors including, but not limited to, the geographical mix of earnings, enacted tax legislation, foreign, state and local income taxes, tax audit settlements and the interaction of various global tax strategies. In addition, changes in judgment from the evaluation of new information resulting in the recognition, derecognition and/or re-measurement of a tax position taken in a prior period are recognized in the quarter in which any such change occurs. | |
For the third quarter of 2014 and 2013, the Company recorded a provision for income taxes of $9.6 million and $13.0 million, respectively. The $3.4 million decrease in the provision for income taxes was primarily attributable to certain discrete items that favorably impacted the provision for income taxes in the third quarter of 2014, including return-to-provision adjustments. | |
For the first nine months of 2014 and 2013, the Company recorded a provision for income taxes of $36.6 million and $32.4 million, respectively. The $4.2 million increase in the provision for income taxes was primarily attributable to the loss on early extinguishment of debt recognized in the first nine months of 2013 that did not recur in 2014, which favorably impacted the provision for income taxes, partially offset by the favorable impact of certain discrete items in the period, including the favorable resolution of tax matters in certain foreign jurisdictions and return-to-provision adjustments. | |
The Company's effective tax rate for the three months ended September 30, 2014 was higher than the federal statutory rate of 35% due principally to foreign dividends and earnings taxable in the U.S. and foreign and U.S. tax effects attributable to operations outside the U.S., and state and local taxes, net of U.S. federal income tax benefit, partially offset by certain discrete items in the third quarter of 2014, including the return-to-provision adjustments. | |
The Company's effective tax rate for the nine months ended September 30, 2014 was higher than the federal statutory rate of 35% due principally to foreign dividends and earnings taxable in the U.S. and state and local taxes, net of U.S. federal income tax benefits. | |
The Company remains subject to examination of its income tax returns in various jurisdictions including, without limitation, Australia and Spain, for tax years ended December 31, 2010 through December 31, 2013, South Africa for tax years ended December 31, 2010 through December 31, 2012, and the U.S. (federal) for tax years ended December 31, 2011 through December 31, 2013. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
CONTINGENCIES | ' |
CONTINGENCIES | |
The Company is involved in various routine legal proceedings incidental to the ordinary course of its business. The Company believes that the outcome of all pending legal proceedings in the aggregate is not reasonably likely to have a material adverse effect on the Company’s business, financial condition and/or its results of operations. However, in light of the uncertainties involved in legal proceedings generally, the ultimate outcome of a particular matter could be material to the Company’s operating results for a particular period depending on, among other things, the size of the loss or the nature of the liability imposed and the level of the Company’s income for that particular period. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | |
Reimbursement Agreements | |
As previously disclosed in the Company's 2013 Form 10-K, Revlon, Inc., Products Corporation and MacAndrews & Forbes Inc. (a wholly-owned subsidiary of MacAndrews & Forbes Holdings) have entered into reimbursement agreements (the "Reimbursement Agreements") pursuant to which (i) MacAndrews & Forbes Inc. is obligated to provide (directly or through its affiliates) certain professional and administrative services, including, without limitation, employees, to Revlon, Inc. and its subsidiaries, including, without limitation, Products Corporation, and to purchase services from third party providers, such as insurance, legal, accounting and air transportation services, on behalf of Revlon, Inc. and its subsidiaries, including Products Corporation, to the extent requested by Products Corporation, and (ii) Products Corporation is obligated to provide certain professional and administrative services, including, without limitation, employees, to MacAndrews & Forbes and to purchase services from third party providers, such as insurance, legal and accounting services, on behalf of MacAndrews & Forbes to the extent requested by MacAndrews & Forbes, provided that in each case the performance of such services does not cause an unreasonable burden to MacAndrews & Forbes or Products Corporation, as the case may be. | |
The Company reimburses MacAndrews & Forbes for the allocable costs of the services purchased for or provided by MacAndrews & Forbes to the Company and its subsidiaries and for the reasonable out-of-pocket expenses incurred by MacAndrews & Forbes in connection with the provision of such services. MacAndrews & Forbes reimburses Products Corporation for the allocable costs of the services purchased for or provided by Products Corporation to MacAndrews & Forbes and for the reasonable out-of-pocket expenses incurred in connection with the purchase or provision of such services. Each of the Company, on the one hand, and MacAndrews & Forbes Inc., on the other, has agreed to indemnify the other party for losses arising out of the services provided by it under the Reimbursement Agreements, other than losses resulting from its willful misconduct or gross negligence. | |
The Reimbursement Agreements may be terminated by either party on 90 days' notice. The Company does not intend to request services under the Reimbursement Agreements unless their costs would be at least as favorable to the Company as could be obtained from unaffiliated third parties. | |
The Company participates in MacAndrews & Forbes' directors and officers liability insurance program (the “D&O Insurance Program”), as well as its other insurance coverages, such as property damage, business interruption, cyber liability and other liabilities and other coverages, which cover the Company, as well as MacAndrews & Forbes and its subsidiaries. The limits of coverage for certain of the policies are available on an aggregate basis for losses to any or all of the participating companies and their respective directors and officers. The Company reimburses MacAndrews & Forbes from time to time for its allocable portion of the premiums for such coverage or the Company pays the insurers directly, which premiums the Company believes are more favorable than the premiums the Company would pay were it to secure stand-alone coverage. Any amounts paid by the Company directly to MacAndrews & Forbes in respect of premiums are included in the amounts paid under the Reimbursement Agreements. | |
The net activity related to services provided and/or purchased under the Reimbursement Agreements during the nine months ended September 30, 2014 and 2013 was $3.8 million and $6.1 million, respectively, which primarily includes the partial payments made by the Company to MacAndrews & Forbes during the first quarter of 2014 and 2013 for premiums related to the Company's allocable portion of the 5-year renewal of the D&O Insurance Program for the period from January 31, 2012 through January 31, 2017. The receivable balances from MacAndrews & Forbes were nil at both September 30, 2014 and December 31, 2013 for transactions subject to the Reimbursement Agreements. |
GUARANTOR_FINANCIAL_INFORMATIO
GUARANTOR FINANCIAL INFORMATION (Notes) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||
Guarantor Financial Information | ' | |||||||||||||||||||
GUARANTOR FINANCIAL INFORMATION | ||||||||||||||||||||
Products Corporation’s 5¾% Senior Notes are fully and unconditionally guaranteed on a senior basis by Products Corporation’s domestic subsidiaries (other than certain immaterial subsidiaries) that guarantee Products Corporation’s obligations under its Amended Credit Agreements (the “Guarantor Subsidiaries”). In January 2014, Colomer’s U.S.-domiciled subsidiaries (the “Colomer U.S. Subsidiaries”) became additional guarantors under Products Corporation’s Amended Term Loan Facility and Amended Revolving Credit Facility and the indenture for the 5¾% Senior Notes. | ||||||||||||||||||||
The following Condensed Consolidating Financial Statements present the financial information as of September 30, 2014 and December 31, 2013, and for the three and nine month periods ended September 30, 2014 and 2013 for (i) Products Corporation on a stand-alone basis; (ii) the Guarantor Subsidiaries on a stand-alone basis; (iii) the subsidiaries of Products Corporation that do not guarantee Products Corporation’s Amended Term Loan Facility, Amended Revolving Credit Facility and 5¾% Senior Notes (the “Non-Guarantor Subsidiaries”) on a stand-alone basis; and (iv) Products Corporation, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis. The Condensed Consolidating Financial Statements are presented on the equity method, under which the investments in subsidiaries are recorded at cost and adjusted for the applicable share of the subsidiary’s cumulative results of operations, capital contributions, distributions and other equity changes. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 49.4 | $ | 68 | $ | 61 | $ | — | $ | 178.4 | ||||||||||
Trade receivables, less allowances for doubtful accounts | 84.6 | 44.6 | 126.8 | — | 256 | |||||||||||||||
Inventories | 86.2 | 34.4 | 66.6 | — | 187.2 | |||||||||||||||
Deferred income taxes - current | 49.1 | — | 12.7 | — | 61.8 | |||||||||||||||
Prepaid expenses and other | 127.7 | 6.5 | 29.1 | — | 163.3 | |||||||||||||||
Intercompany receivables | 974.8 | 624.4 | 160.5 | (1,759.7 | ) | — | ||||||||||||||
Investment in subsidiaries | 610.7 | (144.8 | ) | — | (465.9 | ) | — | |||||||||||||
Property, plant and equipment, net | 107.9 | 27.6 | 73.6 | — | 209.1 | |||||||||||||||
Deferred income taxes - noncurrent | 10.2 | — | 11.4 | — | 21.6 | |||||||||||||||
Goodwill | 185.8 | 30 | 251 | — | 466.8 | |||||||||||||||
Intangible assets, net | 54.6 | 165.2 | 116.3 | — | 336.1 | |||||||||||||||
Other assets | 88.2 | 4.6 | 24.3 | — | 117.1 | |||||||||||||||
Total assets | $ | 2,429.20 | $ | 860.5 | $ | 933.3 | $ | (2,225.6 | ) | $ | 1,997.40 | |||||||||
LIABILITIES AND STOCKHOLDER’S DEFICIENCY | ||||||||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | 7.9 | $ | — | $ | 7.9 | ||||||||||
Current portion of long-term debt | 7 | — | — | — | 7 | |||||||||||||||
Accounts payable | 78.3 | 19.3 | 70.1 | — | 167.7 | |||||||||||||||
Accrued expenses and other | 144.7 | 27.7 | 89.1 | — | 261.5 | |||||||||||||||
Intercompany payables | 698.9 | 682.2 | 378.6 | (1,759.7 | ) | — | ||||||||||||||
Long-term debt | 1,857.60 | — | 0.7 | — | 1,858.30 | |||||||||||||||
Other long-term liabilities | 128.7 | 2.9 | 49.4 | — | 181 | |||||||||||||||
Total liabilities | 2,915.20 | 732.1 | 595.8 | (1,759.7 | ) | 2,483.40 | ||||||||||||||
Stockholder’s deficiency | (486.0 | ) | 128.4 | 337.5 | (465.9 | ) | (486.0 | ) | ||||||||||||
Total liabilities and stockholder’s deficiency | $ | 2,429.20 | $ | 860.5 | $ | 933.3 | $ | (2,225.6 | ) | $ | 1,997.40 | |||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Products Corporation (b) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries (a) (b) | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 141.3 | $ | 0.8 | $ | 102 | $ | — | $ | 244.1 | ||||||||||
Trade receivables, less allowances for doubtful accounts | 88.7 | 24.5 | 140.3 | — | 253.5 | |||||||||||||||
Inventories | 78 | 9.5 | 87.5 | — | 175 | |||||||||||||||
Deferred income taxes - current | 52.5 | — | 12.6 | — | 65.1 | |||||||||||||||
Prepaid expenses and other | 111.6 | 4.7 | 39.8 | — | 156.1 | |||||||||||||||
Intercompany receivables | 1,051.30 | 614.5 | 474.1 | (2,139.9 | ) | — | ||||||||||||||
Investment in subsidiaries | 589.7 | (60.2 | ) | — | (529.5 | ) | — | |||||||||||||
Property, plant and equipment, net | 86.7 | 0.6 | 108.6 | — | 195.9 | |||||||||||||||
Deferred income taxes - noncurrent | 38 | — | 12.9 | — | 50.9 | |||||||||||||||
Goodwill | 185.8 | 30 | 256.5 | — | 472.3 | |||||||||||||||
Intangible assets, net | 57.4 | 0.3 | 302.4 | — | 360.1 | |||||||||||||||
Other assets | 90.9 | 1.6 | 31.3 | — | 123.8 | |||||||||||||||
Total assets | $ | 2,571.90 | $ | 626.3 | $ | 1,568.00 | $ | (2,669.4 | ) | $ | 2,096.80 | |||||||||
LIABILITIES AND STOCKHOLDER’S DEFICIENCY | ||||||||||||||||||||
Short-term borrowings | $ | — | $ | 1.8 | $ | 6.1 | $ | — | $ | 7.9 | ||||||||||
Current portion of long-term debt | 65.4 | — | — | — | 65.4 | |||||||||||||||
Accounts payable | 72.2 | 6.2 | 87.3 | — | 165.7 | |||||||||||||||
Accrued expenses and other | 161.8 | 13.4 | 138.4 | — | 313.6 | |||||||||||||||
Intercompany payables | 790 | 675.9 | 674 | (2,139.9 | ) | — | ||||||||||||||
Long-term debt | 1,861.40 | — | 0.9 | — | 1,862.30 | |||||||||||||||
Other long-term liabilities | 137.6 | 2.9 | 57.9 | — | 198.4 | |||||||||||||||
Total liabilities | 3,088.40 | 700.2 | 964.6 | (2,139.9 | ) | 2,613.30 | ||||||||||||||
Stockholder’s deficiency | (516.5 | ) | (73.9 | ) | 603.4 | (529.5 | ) | (516.5 | ) | |||||||||||
Total liabilities and stockholder’s deficiency | $ | 2,571.90 | $ | 626.3 | $ | 1,568.00 | $ | (2,669.4 | ) | $ | 2,096.80 | |||||||||
(a) | During the three months ended March 31, 2014, the Company recorded Measurement Period Adjustments to certain net assets and intangible assets acquired in the Colomer Acquisition on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. | |||||||||||||||||||
(b) | In the second quarter of 2014, the Company retrospectively adjusted deferred taxes for an immaterial correction, as discussed in Note 1, Description of Business and Basis of Presentation. For the Guarantor financials, the correction also included moving certain tax balances from Non-Guarantor to the Products Corporation Balance Sheet as of December 31, 2013. | |||||||||||||||||||
Condensed Consolidating Statements of Income and Comprehensive Income | ||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net Sales | $ | 233.5 | $ | 91.2 | $ | 189.4 | $ | (41.8 | ) | $ | 472.3 | |||||||||
Cost of sales | 100.8 | 37 | 68.6 | (41.8 | ) | 164.6 | ||||||||||||||
Gross profit | 132.7 | 54.2 | 120.8 | — | 307.7 | |||||||||||||||
Selling, general and administrative expenses | 119.7 | 33.5 | 96.1 | — | 249.3 | |||||||||||||||
Acquisition and integration costs | 0.9 | — | — | — | 0.9 | |||||||||||||||
Restructuring charges | (0.1 | ) | 0.2 | 0.7 | — | 0.8 | ||||||||||||||
Operating income | 12.2 | 20.5 | 24 | — | 56.7 | |||||||||||||||
Other expenses, net: | ||||||||||||||||||||
Intercompany interest, net | (2.2 | ) | — | 2.2 | — | — | ||||||||||||||
Interest expense | 20.4 | — | 0.2 | — | 20.6 | |||||||||||||||
Amortization of debt issuance costs | 1.3 | — | — | — | 1.3 | |||||||||||||||
Loss on early extinguishment of debt, net | — | — | — | — | — | |||||||||||||||
Foreign currency losses, net | 1.9 | (0.4 | ) | 7.8 | — | 9.3 | ||||||||||||||
Miscellaneous, net | (9.8 | ) | (3.1 | ) | 13 | — | 0.1 | |||||||||||||
Other expenses, net | 11.6 | (3.5 | ) | 23.2 | — | 31.3 | ||||||||||||||
Income from continuing operations before income taxes | 0.6 | 24 | 0.8 | — | 25.4 | |||||||||||||||
Provision for (benefit from) income taxes | 10.6 | — | (1.0 | ) | — | 9.6 | ||||||||||||||
(Loss) income from continuing operations | (10.0 | ) | 24 | 1.8 | — | 15.8 | ||||||||||||||
(Loss) income from discontinued operations, net of taxes | — | — | 0.4 | — | 0.4 | |||||||||||||||
Equity in income (loss) of subsidiaries | 26.2 | 5.8 | — | (32.0 | ) | — | ||||||||||||||
Net income (loss) | $ | 16.2 | $ | 29.8 | $ | 2.2 | $ | (32.0 | ) | $ | 16.2 | |||||||||
Other comprehensive (loss) income | (16.6 | ) | 4.9 | (10.7 | ) | 5.8 | (16.6 | ) | ||||||||||||
Total comprehensive (loss) income | $ | (0.4 | ) | $ | 34.7 | $ | (8.5 | ) | $ | (26.2 | ) | $ | (0.4 | ) | ||||||
Condensed Consolidating Statements of Income and Comprehensive Income | ||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net Sales | $ | 229.4 | $ | 25.3 | $ | 126.9 | $ | (48.5 | ) | $ | 333.1 | |||||||||
Cost of sales | 106.2 | 12.6 | 50.8 | (48.5 | ) | 121.1 | ||||||||||||||
Gross profit | 123.2 | 12.7 | 76.1 | — | 212 | |||||||||||||||
Selling, general and administrative expenses | 100.8 | 9.4 | 53.1 | — | 163.3 | |||||||||||||||
Acquisition and integration costs | 5.9 | — | — | — | 5.9 | |||||||||||||||
Restructuring charges | — | 0.1 | (1.6 | ) | — | (1.5 | ) | |||||||||||||
Operating income | 16.5 | 3.2 | 24.6 | — | 44.3 | |||||||||||||||
Other expenses, net: | ||||||||||||||||||||
Intercompany interest, net | 0.2 | (0.1 | ) | 1.5 | — | 1.6 | ||||||||||||||
Interest expense | 16 | 0.1 | 0.1 | — | 16.2 | |||||||||||||||
Amortization of debt issuance costs | 0.8 | — | — | — | 0.8 | |||||||||||||||
Loss on early extinguishment of debt, net | 0.2 | — | — | — | 0.2 | |||||||||||||||
Foreign currency losses, net | (1.5 | ) | 0.5 | 1.4 | — | 0.4 | ||||||||||||||
Miscellaneous, net | (10.9 | ) | (5.8 | ) | 17.3 | — | 0.6 | |||||||||||||
Other expenses, net | 4.8 | (5.3 | ) | 20.3 | — | 19.8 | ||||||||||||||
Income from continuing operations before income taxes | 11.7 | 8.5 | 4.3 | — | 24.5 | |||||||||||||||
Provision for income taxes | 10.9 | 0.4 | 1.7 | — | 13 | |||||||||||||||
Income from continuing operations | 0.8 | 8.1 | 2.6 | — | 11.5 | |||||||||||||||
Loss from discontinued operations, net of taxes | — | — | (1.5 | ) | — | (1.5 | ) | |||||||||||||
Equity in income (loss) of subsidiaries | 9.2 | 2.2 | — | (11.4 | ) | — | ||||||||||||||
Net income (loss) | $ | 10 | $ | 10.3 | $ | 1.1 | $ | (11.4 | ) | $ | 10 | |||||||||
Other comprehensive income (loss) | 3.1 | (1.4 | ) | (1.2 | ) | 2.6 | 3.1 | |||||||||||||
Total comprehensive income (loss) | $ | 13.1 | $ | 8.9 | $ | (0.1 | ) | $ | (8.8 | ) | $ | 13.1 | ||||||||
Condensed Consolidating Statements of Income and Comprehensive Income | ||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net Sales | $ | 729 | $ | 272.7 | $ | 577.5 | $ | (139.2 | ) | $ | 1,440.00 | |||||||||
Cost of sales | 321.5 | 109.8 | 203.2 | (139.2 | ) | 495.3 | ||||||||||||||
Gross profit | 407.5 | 162.9 | 374.3 | — | 944.7 | |||||||||||||||
Selling, general and administrative expenses | 354.1 | 96.8 | 303.7 | — | 754.6 | |||||||||||||||
Acquisition and integration costs | 5.4 | — | — | — | 5.4 | |||||||||||||||
Restructuring charges | 2.2 | 3.3 | 12.6 | — | 18.1 | |||||||||||||||
Operating income | 45.8 | 62.8 | 58 | — | 166.6 | |||||||||||||||
Other expenses, net: | ||||||||||||||||||||
Intercompany interest, net | (6.4 | ) | (0.3 | ) | 6.7 | — | — | |||||||||||||
Interest expense | 63.2 | 0.1 | 0.6 | — | 63.9 | |||||||||||||||
Amortization of debt issuance costs | 4.1 | — | — | — | 4.1 | |||||||||||||||
Loss on early extinguishment of debt, net | 2 | — | — | — | 2 | |||||||||||||||
Foreign currency losses, net | (4.7 | ) | (0.2 | ) | 22.8 | — | 17.9 | |||||||||||||
Miscellaneous, net | (39.1 | ) | (4.0 | ) | 43.3 | — | 0.2 | |||||||||||||
Other expenses, net | 19.1 | (4.4 | ) | 73.4 | — | 88.1 | ||||||||||||||
Income (loss) from continuing operations before income taxes | 26.7 | 67.2 | (15.4 | ) | — | 78.5 | ||||||||||||||
Provision for (benefit from) income taxes | 64.1 | (27.9 | ) | 0.4 | — | 36.6 | ||||||||||||||
Income (loss) from continuing operations | (37.4 | ) | 95.1 | (15.8 | ) | — | 41.9 | |||||||||||||
Income from discontinued operations, net of taxes | 0.2 | — | 0.7 | — | 0.9 | |||||||||||||||
Equity in income (loss) of subsidiaries | 80 | (9.4 | ) | — | (70.6 | ) | — | |||||||||||||
Net income (loss) | $ | 42.8 | $ | 85.7 | $ | (15.1 | ) | $ | (70.6 | ) | $ | 42.8 | ||||||||
Other comprehensive (loss) income | (16.0 | ) | 4.7 | (11.9 | ) | 7.2 | (16.0 | ) | ||||||||||||
Total comprehensive income (loss) | $ | 26.8 | $ | 90.4 | $ | (27.0 | ) | $ | (63.4 | ) | $ | 26.8 | ||||||||
Condensed Consolidating Statements of Income and Comprehensive Income | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net Sales | $ | 713.5 | $ | 63.6 | $ | 372.9 | $ | (146.3 | ) | $ | 1,003.70 | |||||||||
Cost of sales | 325.5 | 30.2 | 148.7 | (146.3 | ) | 358.1 | ||||||||||||||
Gross profit | 388 | 33.4 | 224.2 | — | 645.6 | |||||||||||||||
Selling, general and administrative expenses | 311.8 | 28.3 | 136.1 | — | 476.2 | |||||||||||||||
Acquisition and integration costs | 6.3 | — | — | — | 6.3 | |||||||||||||||
Restructuring charges | — | 0.3 | 1.5 | — | 1.8 | |||||||||||||||
Operating income | 69.9 | 4.8 | 86.6 | — | 161.3 | |||||||||||||||
Other expenses, net: | ||||||||||||||||||||
Intercompany interest, net | 0.7 | (0.5 | ) | 4.5 | — | 4.7 | ||||||||||||||
Interest expense | 50.3 | 0.2 | 0.3 | — | 50.8 | |||||||||||||||
Amortization of debt issuance costs | 2.2 | — | — | — | 2.2 | |||||||||||||||
Loss on early extinguishment of debt | 28.1 | — | — | — | 28.1 | |||||||||||||||
Foreign currency losses, net | 2.5 | 0.4 | 0.3 | — | 3.2 | |||||||||||||||
Miscellaneous, net | (49.4 | ) | 5.2 | 45 | — | 0.8 | ||||||||||||||
Other expenses, net | 34.4 | 5.3 | 50.1 | — | 89.8 | |||||||||||||||
Income (loss) from continuing operations before income taxes | 35.5 | (0.5 | ) | 36.5 | — | 71.5 | ||||||||||||||
Provision for (benefit from) income taxes | 27.3 | (2.0 | ) | 7.1 | 32.4 | |||||||||||||||
Income from continuing operations | 8.2 | 1.5 | 29.4 | — | 39.1 | |||||||||||||||
Income (loss) from discontinued operations, net of taxes | 0.3 | — | (6.6 | ) | — | (6.3 | ) | |||||||||||||
Equity in income (loss) of subsidiaries | 24.3 | 19.7 | — | (44.0 | ) | — | ||||||||||||||
Net income (loss) | $ | 32.8 | $ | 21.2 | $ | 22.8 | $ | (44.0 | ) | $ | 32.8 | |||||||||
Other comprehensive income (loss) | 2.2 | 9.8 | 4 | (13.8 | ) | 2.2 | ||||||||||||||
Total comprehensive income (loss) | $ | 35 | $ | 31 | $ | 26.8 | $ | (57.8 | ) | $ | 35 | |||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 2.2 | $ | 55.7 | $ | (11.2 | ) | $ | — | $ | 46.7 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
Capital expenditures | (23.2 | ) | (0.3 | ) | (6.8 | ) | — | (30.3 | ) | |||||||||||
Proceeds from the sale of certain assets | — | — | 0.9 | — | 0.9 | |||||||||||||||
Net cash used in investing activities | (23.2 | ) | (0.3 | ) | (5.9 | ) | — | (29.4 | ) | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
Net (decrease) increase in short-term borrowings and overdraft | (3.7 | ) | (1.9 | ) | 2.5 | — | (3.1 | ) | ||||||||||||
Repayment under the Amended and Restated Senior Subordinated Term Loan | (58.4 | ) | — | — | — | (58.4 | ) | |||||||||||||
Repayments under the Acquisition Term Loan | (5.3 | ) | — | — | — | (5.3 | ) | |||||||||||||
Payment of financing costs | (1.8 | ) | — | — | — | (1.8 | ) | |||||||||||||
Other financing activities | (1.7 | ) | — | (0.4 | ) | — | (2.1 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (70.9 | ) | (1.9 | ) | 2.1 | — | (70.7 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (12.3 | ) | — | (12.3 | ) | |||||||||||||
Net (decrease) increase in cash and cash equivalents | (91.9 | ) | 53.5 | (27.3 | ) | — | (65.7 | ) | ||||||||||||
Cash and cash equivalents at beginning of period (a) | 141.3 | 14.5 | 88.3 | — | 244.1 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 49.4 | $ | 68 | $ | 61 | $ | — | $ | 178.4 | ||||||||||
(a) In January 2014, Colomer's U.S. subsidiaries became additional guarantors under Products Corporation's Amended Credit Agreements and 5¾% Senior Notes. Accordingly, for cash flow presentation purposes, the cash and cash equivalents at the beginning of the period associated with Colomer's U.S. subsidiaries have been reported under Guarantor Subsidiaries. | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 38.4 | $ | 0.7 | $ | (33.3 | ) | $ | — | $ | 5.8 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
Capital expenditures | (15.5 | ) | (0.5 | ) | (1.9 | ) | — | (17.9 | ) | |||||||||||
Insurance proceeds for property, plant and equipment | — | — | 13.1 | — | 13.1 | |||||||||||||||
Proceeds from the sale of certain assets | 0.3 | — | 3.1 | — | 3.4 | |||||||||||||||
Net cash (used in) provided by investing activities | (15.2 | ) | (0.5 | ) | 14.3 | — | (1.4 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
Net (decrease) increase in short-term borrowings and overdraft | (1.4 | ) | (0.1 | ) | 1.7 | — | 0.2 | |||||||||||||
Proceeds from the issuance of the 5¾% Senior Notes | 500 | — | — | — | 500 | |||||||||||||||
Repayment of the 9¾% Senior Secured Notes | (330.0 | ) | — | — | — | (330.0 | ) | |||||||||||||
Repayment under the 2011 Term Loan Facility | (113.0 | ) | — | — | — | (113.0 | ) | |||||||||||||
Payment of financing costs | (32.7 | ) | — | — | — | (32.7 | ) | |||||||||||||
Other financing activities | (1.5 | ) | — | (0.3 | ) | — | (1.8 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 21.4 | (0.1 | ) | 1.4 | — | 22.7 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (4.1 | ) | — | (4.1 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 44.6 | 0.1 | (21.7 | ) | — | 23 | ||||||||||||||
Cash and cash equivalents at beginning of period | 59.1 | — | 57.2 | — | 116.3 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 103.7 | $ | 0.1 | $ | 35.5 | $ | — | $ | 139.3 | ||||||||||
DESCRIPTION_OF_BUSINESS_AND_BA1
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Business Description And Basis Of Presentation | ' |
The Company’s vision is to establish Revlon as the quintessential and most innovative beauty company in the world by offering products that make consumers feel attractive and beautiful. We want to inspire our consumers to express themselves boldly and confidently. The Company operates in two segments, the consumer division (“Consumer”) and the professional division (“Professional”), and manufactures, markets and sells worldwide an extensive array of beauty and personal care products, including cosmetics, hair color, hair care and hair treatments, beauty tools, men's grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products. The Company’s principal customers for its products in the Consumer segment include large mass volume retailers and chain drug and food stores (collectively, the “mass retail channel”) in the U.S. and internationally, as well as certain department stores and other specialty stores, such as perfumeries, outside the U.S. The Company's principal customers for its products in the Professional segment include hair and nail salons and distributors in the U.S. and internationally. | |
The accompanying Consolidated Financial Statements are unaudited. In management's opinion, all adjustments necessary for a fair presentation have been made. The Unaudited Consolidated Financial Statements include the accounts of the Company after the elimination of all material intercompany balances and transactions. | |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Significant estimates made in the accompanying Unaudited Consolidated Financial Statements include, but are not limited to, allowances for doubtful accounts, inventory valuation reserves, expected sales returns and allowances, trade support costs, certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of intangible and long-lived assets, income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities, restructuring costs, certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. The Unaudited Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, filed with the U.S. Securities and Exchange Commission (the "SEC") on March 5, 2014 (the "2013 Form 10-K"). | |
The Company's results of operations and financial position for interim periods are not necessarily indicative of those to be expected for a full year. | |
Certain prior year amounts in the Unaudited Consolidated Financial Statements have been reclassified to conform to the current period's presentation. | |
Immaterial Correction - Presentation of Consolidated Balance Sheet as of December 31, 2013 | |
The previously recorded deferred income taxes - noncurrent, which represent the Company's noncurrent deferred tax assets, and other long-term liabilities, which include the Company's noncurrent deferred tax liabilities, as of December 31, 2013 were retrospectively corrected to reflect the Consumer and Professional U.S. entities as one tax-paying component, as well as to appropriately reflect offsetting noncurrent deferred tax assets and noncurrent deferred tax liabilities within other Professional entities. The Company has deemed the correction to be immaterial as there is no impact to the Company’s results of operations, cash flows and stockholder's deficiency for any period, and there are no qualitative factors which would indicate that the change is material. This immaterial correction decreased deferred income taxes - noncurrent and other long-term liabilities, as of December 31, 2013, to $50.9 million and $80.1 million, respectively, as reported in the accompanying Consolidated Balance Sheet, from the previously reported amounts of $164.8 million and $194.0 million, respectively. | |
Discontinued Operations Presentation | |
As a result of the Company's decision on December 30, 2013 to exit its business operations in China, the Company is reporting the results of its China operations within income (loss) from discontinued operations, net of taxes in the Company's Unaudited Consolidated Statements of Income and Comprehensive Income. Accordingly, prior year amounts have been reclassified to conform to the current period's presentation. See Note 4, "Discontinued Operations," for further discussion. | |
Impact of Foreign Currency Translation | ' |
Impact of Foreign Currency Translation - Venezuela Currency | |
In January 2014, the Venezuela government announced that the Comisión de Administracion de Divisas (“CADIVI”) would be replaced by the government-operated National Center of Foreign Commerce (the "CENCOEX"), and indicated that the Sistema Complementario de Administración de Divisas (“SICAD”) market would continue to be offered as an alternative foreign currency exchange. Additionally, a parallel foreign currency exchange system has been developed, SICAD II, which started functioning in March 2014, and for the second quarter of 2014 the SICAD II exchange market had an average transaction rate to the Company of approximately 53 Bolivars per U.S. Dollar (the “SICAD II Rate”). The SICAD II market allows companies to apply for the purchase of foreign currency and foreign currency denominated securities for any legal use or purpose. | |
During the first nine months of 2014, the Company continued to exchange Bolivars for U.S. Dollars to the extent permitted through the CENCOEX, SICAD and SICAD II markets based on its ability to participate in those markets. As a result, the Company considered its specific facts and circumstances in order to determine the appropriate rate of exchange to translate Revlon Venezuela’s financial statements. Based on the Company’s assessment of factors, including of its legal ability and intent to continue to participate in the SICAD II exchange market to import finished goods into Venezuela, the Company determined that it was appropriate to utilize the SICAD II Rate of 53 Bolivars per U.S. Dollar to translate Revlon Venezuela’s financial statements beginning on June 30, 2014. | |
As a result of the change from the official rate of 6.3 Bolivars per U.S. Dollar to the SICAD II Rate on June 30, 2014, the Company was required to re-measure all of Revlon Venezuela’s monetary assets and liabilities at the rate of 53 Bolivars per U.S. Dollar as of June 30, 2014. Non-monetary assets and liabilities continue to be measured at their historical rates. The Company recorded a foreign currency loss of $6.0 million in the second quarter of 2014 as a result of the required re-measurement of Revlon Venezuela’s balance sheet. As Venezuela was designated as a highly inflationary economy effective January 1, 2010, the Company reflected this foreign currency loss in earnings. For both the three and nine months ended September 30, 2014, the change to the SICAD II Rate, as compared to the 6.3 Bolivars per U.S. Dollar official rate, had the impact of reducing net sales by $6.7 million and reducing operating income by $4.1 million. | |
Recently Adopted Accounting Pronouncements | ' |
Recently Adopted Accounting Pronouncements | |
In March 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-04, “Accounting for Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date,” requiring an entity to record an obligation resulting from joint and several liability arrangements at the greater of the amount that the entity has agreed to pay or the amount the entity expects to pay. Additional disclosures about joint and several liability arrangements will also be required. This guidance is effective for fiscal periods beginning after December 15, 2013, and is applied retrospectively for obligations that existed at the beginning of the fiscal year for which the entity adopted such guidance, with early adoption permitted. The Company adopted ASU No. 2013-04 beginning January 1, 2014, and such adoption did not have an impact on the Company's results of operations, financial condition or disclosures. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
In April 2014, the FASB issued ASU No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which changes the requirements for reporting discontinued operations under Accounting Standards Codification Topic 205. Under ASU No. 2014-08, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The standard states that a strategic shift could include a disposal of (i) a major geographical area of operations, (ii) a major line of business, (iii) a major equity method investment or (iv) other major parts of an entity. ASU No. 2014-08 no longer precludes presentation as a discontinued operation if (i) there are operations and cash flows of the component that have not been eliminated from the reporting entity’s ongoing operations or (ii) there is significant continuing involvement with a component after its disposal. Additional disclosures about discontinued operations will also be required. The guidance is effective for annual periods beginning on or after December 15, 2014, and is to be applied prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The Company expects to adopt ASU No. 2014-08 on a prospective basis beginning January 1, 2015. | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers," which supersedes the revenue recognition requirements in the Accounting Standards Codification ("Codification") Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of the new ASU No. 2014-09 is for companies to recognize revenue from the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. The guidance is effective for annual and interim periods beginning after December 15, 2016, with early adoption prohibited. The Company expects to adopt ASU No. 2014-09 beginning January 1, 2017 and is in the process of assessing the impact that the new guidance will have on the Company's results of operations, financial condition and disclosures. | |
In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" that will explicitly require management to assess an entity's ability to continue as a going concern and to provide related footnote disclosures if conditions give rise to substantial doubt. According to the new standard, substantial doubt exists if it is probable that the entity will be unable to meet its obligations within one year after the issuance date. The likelihood threshold of "probable", similar to its current use in U.S. GAAP for loss contingencies, is used to define substantial doubt. Disclosures will be required if conditions give rise to substantial doubt including whether and how management's plans will alleviate the substantial doubt. The guidance is effective for annual periods beginning after December 15, 2015, with early adoption prohibited. The Company expects to adopt ASU No. 2014-15 beginning January 1, 2016 and is in the process of assessing the impact that the new guidance will have on the Company's disclosures. |
BUSINESS_COMBINATIONS_Tables
BUSINESS COMBINATIONS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||
Schedule of Acquisition and Integration Costs [Table Text Block] | ' | |||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, respectively, the Company incurred acquisition and integration costs related to the Colomer Acquisition, which consist of the following: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Acquisition costs | $ | 0.1 | $ | 5.9 | $ | 0.5 | $ | 6.3 | ||||||||
Integration costs | 0.8 | — | 4.9 | — | ||||||||||||
Total acquisition and integration costs | $ | 0.9 | $ | 5.9 | $ | 5.4 | $ | 6.3 | ||||||||
The acquisition costs primarily include legal and consulting fees related to the Colomer Acquisition. The integration costs consist of non-restructuring costs related to the Company's plans to integrate Colomer's operations into the Company's business, and, for 2014, primarily include employee-related costs related to management changes and audit-related fees. | ||||||||||||||||
The Colomer Group Participations, S.L. | ' | |||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | |||||||||||||||
The Company accounted for the Colomer Acquisition as a business combination during the fourth quarter of 2013. The table below summarizes the amounts recognized for assets acquired and liabilities assumed as of the Acquisition Date, as well as adjustments made in the period after the Acquisition Date to the amounts initially recorded in 2013 (the "Measurement Period Adjustments"). Accordingly, the Company retrospectively adjusted its consolidated balance sheet as of December 31, 2013 to reflect these Measurement Period Adjustments. The Measurement Period Adjustments did not have a material impact on the Company's Consolidated Statements of Income and Comprehensive Income for the year ended December 31, 2013. | ||||||||||||||||
The total consideration of $664.5 million was recorded based on the respective estimated fair values of the net assets acquired on the Acquisition Date with resulting goodwill, as follows: | ||||||||||||||||
Amounts Previously Recognized as of October 9, 2013 (Provisional) (a) | Measurement Period Adjustments | Amounts Recognized as of Acquisition Date (Adjusted) | ||||||||||||||
Cash and cash equivalents | $ | 36.9 | $ | — | $ | 36.9 | ||||||||||
Trade receivables | 83.9 | — | 83.9 | |||||||||||||
Inventories | 75.1 | — | 75.1 | |||||||||||||
Prepaid expenses and other | 31.3 | — | 31.3 | |||||||||||||
Property, plant and equipment | 96.7 | — | 96.7 | |||||||||||||
Intangible assets(b) | 292.7 | 5.4 | 298.1 | |||||||||||||
Goodwill(b)(c) | 255.7 | (2.4 | ) | 253.3 | ||||||||||||
Deferred tax asset - noncurrent | 53.1 | — | 53.1 | |||||||||||||
Other assets(c) | 1.9 | 3.9 | 5.8 | |||||||||||||
Total assets acquired | 927.3 | 6.9 | 934.2 | |||||||||||||
Accounts payable | 48 | — | 48 | |||||||||||||
Accrued expenses and other | 65.6 | — | 65.6 | |||||||||||||
Long-term debt | 0.9 | — | 0.9 | |||||||||||||
Long-term pension and other benefit plan liabilities | 4.5 | — | 4.5 | |||||||||||||
Deferred tax liability(b) | 123.3 | 2.1 | 125.4 | |||||||||||||
Other long-term liabilities(c) | 20.5 | 4.8 | 25.3 | |||||||||||||
Total liabilities assumed | 262.8 | 6.9 | 269.7 | |||||||||||||
Total consideration | $ | 664.5 | $ | — | $ | 664.5 | ||||||||||
(a) As previously reported in the Company's 2013 Form 10-K. | ||||||||||||||||
(b) The Measurement Period Adjustments to intangible assets, deferred tax liability and goodwill in the first quarter of 2014 related to a change in assumptions used to calculate the fair value of an acquired customer relationship intangible asset, which increased the intangible asset by $5.4 million and extended the life of the asset from 10 to 20 years, increased deferred tax liabilities by $2.1 million, and resulted in a net decrease to goodwill of $3.3 million. | ||||||||||||||||
(c) The Company recorded a $3.9 million income tax adjustment to the beginning tax balance within other assets and a $4.8 million adjustment to other long-term liabilities, resulting in a net increase to goodwill of $0.9 million. | ||||||||||||||||
Schedule of Intangible Assets Acquired | ' | |||||||||||||||
The acquired intangible assets, based on the fair values of the identifiable intangible assets, are as follows: | ||||||||||||||||
Fair Values at October 9, 2013 | Weighted Average Useful Life (in years) | |||||||||||||||
Trade names, indefinite-lived | $ | 108.6 | Indefinite | |||||||||||||
Trade names, finite-lived | 109.4 | 20-May | ||||||||||||||
Customer relationships | 62.4 | 15 - 20 | ||||||||||||||
License agreement | 4.1 | 10 | ||||||||||||||
Internally-developed IP | 13.6 | 10 | ||||||||||||||
Total acquired intangible assets | $ | 298.1 | ||||||||||||||
Pro Forma Information | ' | |||||||||||||||
The following table presents the Company's pro forma consolidated net sales and income from continuing operations, before income taxes for the three and nine months ended September 30, 2013. The unaudited pro forma results include the historical consolidated statements of operations of the Company and Colomer, giving effect to the Colomer Acquisition and related financing transactions as if they had occurred on January 1, 2012. | ||||||||||||||||
Unaudited Pro Forma Results | ||||||||||||||||
Three Months Ended | Nine Months Ended September 30, 2013 | |||||||||||||||
September 30, 2013 | ||||||||||||||||
Net sales | $ | 473.9 | $ | 1,408.10 | ||||||||||||
Income from continuing operations, before income taxes | 45.3 | 100.4 | ||||||||||||||
RESTRUCTURING_CHARGES_Tables
RESTRUCTURING CHARGES (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Restructuring Charges [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Restructuring Activities | ' | |||||||||||||||||||||||||||
A summary of the restructuring and related charges incurred through September 30, 2014 and expected to be incurred for the Integration Program, are as follows: | ||||||||||||||||||||||||||||
Restructuring Charges and Other, Net | ||||||||||||||||||||||||||||
Employee Severance and Other Personnel Benefits | Other | Total Restructuring Charges | Inventory Write-offs and Other Manufacturing-Related Costs (a) | Other Charges (b) | Total Restructuring and Related Charges | |||||||||||||||||||||||
Charges incurred through the nine months ended September 30, 2014 | $ | 15.2 | $ | 1.2 | $ | 16.4 | $ | 0.2 | $ | 0.5 | $ | 17.1 | ||||||||||||||||
Total expected charges | $ | 17.5 | $ | 3 | $ | 20.5 | $ | 2 | $ | 3.5 | $ | 26 | ||||||||||||||||
(a) | Inventory write-offs and other manufacturing-related costs are recorded within cost of sales within the Company’s Consolidated Statements of Income and Comprehensive Income. | |||||||||||||||||||||||||||
(b) | Other charges are recorded within SG&A expenses within the Company’s Consolidated Statements of Income and Comprehensive Income. | |||||||||||||||||||||||||||
Of the $17.1 million of restructuring and related charges recognized through the third quarter 2014, $7.3 million relate to the Consumer segment and $9.8 million relate to the Professional segment. | ||||||||||||||||||||||||||||
The Company expects that cash payments related to the restructuring and related charges in connection with the Integration Program will total approximately $25 million, of which $6.4 million was paid during the nine months ended September 30, 2014, approximately $7 million is expected to be paid during the remainder of 2014 and the majority of the remaining balance is expected to be paid in 2015. | ||||||||||||||||||||||||||||
December 2013 Program | ||||||||||||||||||||||||||||
In December 2013, the Company announced restructuring actions that include exiting its business operations in China, as well as implementing other immaterial restructuring actions outside the U.S. that are expected to generate other operating efficiencies (the "December 2013 Program"). Certain of these restructuring actions are subject to consultations with employees, works councils or unions and governmental authorities and has resulted in the Company eliminating approximately 1,100 positions in 2014, primarily in China, which included eliminating in the first quarter of 2014 approximately 940 beauty advisors retained indirectly through a third-party agency. The charges incurred for the December 2013 Program relate entirely to the Consumer segment. | ||||||||||||||||||||||||||||
A summary of the restructuring and related charges incurred through September 30, 2014 and expected to be incurred for the December 2013 Program, are as follows: | ||||||||||||||||||||||||||||
Restructuring Charges and Other, Net | ||||||||||||||||||||||||||||
Employee Severance and Other Personnel Benefits | Other | Total Restructuring Charges | Allowances and Returns | Inventory Write-offs | Other Charges | Total Restructuring and Related Charges | ||||||||||||||||||||||
Charges incurred through December 31, 2013 | $ | 9.1 | $ | 0.5 | $ | 9.6 | $ | 7.4 | $ | 4 | $ | 0.4 | $ | 21.4 | ||||||||||||||
Adjustments recorded for the nine months ended September 30, 2014 (a) | (0.5 | ) | (0.2 | ) | (0.7 | ) | (0.9 | ) | (0.9 | ) | — | (2.5 | ) | |||||||||||||||
Cumulative charges incurred through September 30, 2014 | $ | 8.6 | $ | 0.3 | $ | 8.9 | $ | 6.5 | $ | 3.1 | $ | 0.4 | $ | 18.9 | ||||||||||||||
Total expected charges | $ | 8.6 | $ | 0.3 | $ | 8.9 | $ | 6.5 | $ | 3.1 | $ | 0.4 | $ | 18.9 | ||||||||||||||
(a) | Of the $2.5 million adjustments for the nine months ended September 30, 2014 related to the December 2013 Program, $2.3 million relates to the Company's exit of its business operations in China and is recorded within income (loss) from discontinued operations, net of taxes. See Note 4, "Discontinued Operations," for further discussion. The remaining $0.2 million is recorded in restructuring charges and other, net within income from continuing operations, net of taxes. | |||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||||||||||||||||||||||
The related liability balance and activity for the restructuring costs are presented below: | ||||||||||||||||||||||||||||
Utilized, Net | ||||||||||||||||||||||||||||
Balance | (Income) Expense, Net | Foreign Currency Translation | Cash | Non-cash | Balance End of Year | |||||||||||||||||||||||
Beginning of Year | ||||||||||||||||||||||||||||
Integration Program: | ||||||||||||||||||||||||||||
Employee severance and other personnel benefits | $ | — | $ | 15.2 | $ | — | $ | (5.1 | ) | $ | — | $ | 10.1 | |||||||||||||||
Other | — | 1.2 | — | (1.0 | ) | — | 0.2 | |||||||||||||||||||||
December 2013 Program: | ||||||||||||||||||||||||||||
Employee severance and other personnel benefits | 9 | (0.5 | ) | (0.2 | ) | (7.3 | ) | 0.2 | 1.2 | |||||||||||||||||||
Other | 0.5 | (0.2 | ) | — | (0.3 | ) | — | — | ||||||||||||||||||||
September 2012 Program: | ||||||||||||||||||||||||||||
Employee severance and other personnel benefits | 2.7 | — | (0.1 | ) | (2.4 | ) | 0.2 | |||||||||||||||||||||
Other | 1.5 | — | — | (0.8 | ) | — | 0.7 | |||||||||||||||||||||
2014 Other Immaterial Actions: | ||||||||||||||||||||||||||||
Employee severance and other personnel benefits | — | 2.2 | (0.1 | ) | (1.8 | ) | — | 0.3 | ||||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||||||
Total restructuring reserve | $ | 13.7 | $ | 17.9 | $ | (0.4 | ) | $ | (18.7 | ) | $ | 0.2 | $ | 12.7 | ||||||||||||||
Gain on sale of equipment for 2014 Other Immaterial Actions | (0.3 | ) | ||||||||||||||||||||||||||
Portion of restructuring benefits recorded within income (loss) from discontinued operations (a) | 0.5 | |||||||||||||||||||||||||||
Total restructuring charges and other, net, from continuing operations | $ | 18.1 | ||||||||||||||||||||||||||
(a) Refer to Note 4, "Discontinued Operations" for additional information regarding the Company's exit of its business operations in China. |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
Schedule of Discontinued Operations | ' | |||||||||||||||
The results of the China discontinued operations are included within income (loss) from discontinued operations, net of taxes, within the Consumer segment. The summary comparative financial results of discontinued operations are as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales (a) | $ | — | $ | 6.3 | $ | 2.6 | $ | 17.7 | ||||||||
Income (loss) from discontinued operations, before taxes | 0.4 | (1.6 | ) | 1.1 | (6.7 | ) | ||||||||||
Provision for income taxes | — | 0.1 | 0.2 | 0.4 | ||||||||||||
Income (loss) from discontinued operations, net of taxes | 0.4 | (1.5 | ) | 0.9 | (6.3 | ) | ||||||||||
(a) Net sales during the first nine months of 2014 primarily represent favorable adjustments to sales returns related to the Company's exit of its China operations. | ||||||||||||||||
Assets and liabilities of discontinued operations included in the Consolidated Balance Sheets consist of the following: | ||||||||||||||||
September 30, | December 31, 2013 | |||||||||||||||
2014 | ||||||||||||||||
Cash and cash equivalents | $ | 3.4 | $ | 0.9 | ||||||||||||
Trade receivables, net | 0.2 | 1.9 | ||||||||||||||
Inventories | — | — | ||||||||||||||
Other current assets | 0.1 | — | ||||||||||||||
Total current assets | 3.7 | 2.8 | ||||||||||||||
Total assets | $ | 3.7 | $ | 2.8 | ||||||||||||
Accounts payable | $ | 1.5 | $ | 4.7 | ||||||||||||
Accrued expenses and other | 4 | 27.6 | ||||||||||||||
Total current liabilities | 5.5 | 32.3 | ||||||||||||||
Other long-term liabilities | — | 2.8 | ||||||||||||||
Total liabilities | $ | 5.5 | $ | 35.1 | ||||||||||||
PENSION_AND_POSTRETIREMENT_BEN1
PENSION AND POST-RETIREMENT BENEFITS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Net Benefit Costs | ' | |||||||||||||||
The components of net periodic benefit (income) costs for the Company’s pension and the other post-retirement benefit plans for the third quarter of 2014 and 2013 were as follows: | ||||||||||||||||
Other | ||||||||||||||||
Post-Retirement | ||||||||||||||||
Pension Plans | Benefit Plans | |||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net periodic benefit (income) costs: | ||||||||||||||||
Service cost | $ | 0.2 | $ | 0.3 | $ | — | $ | — | ||||||||
Interest cost | 7.5 | 6.9 | 0.2 | 0.1 | ||||||||||||
Expected return on plan assets | (10.3 | ) | (9.6 | ) | — | — | ||||||||||
Amortization of actuarial loss | 1.1 | 2.1 | — | 0.1 | ||||||||||||
(1.5 | ) | (0.3 | ) | 0.2 | 0.2 | |||||||||||
Portion allocated to Revlon Holdings | (0.1 | ) | — | — | — | |||||||||||
$ | (1.6 | ) | $ | (0.3 | ) | $ | 0.2 | $ | 0.2 | |||||||
The components of net periodic benefit (income) costs for the Company's pension and the other post-retirement benefit plans for the first nine months of 2014 and 2013 were as follows: | ||||||||||||||||
Other | ||||||||||||||||
Post-Retirement | ||||||||||||||||
Pension Plans | Benefit Plans | |||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net periodic benefit (income) costs: | ||||||||||||||||
Service cost | $ | 0.6 | $ | 0.7 | $ | — | $ | — | ||||||||
Interest cost | 22.6 | 20.7 | 0.5 | 0.4 | ||||||||||||
Expected return on plan assets | (31.0 | ) | (28.7 | ) | — | — | ||||||||||
Amortization of actuarial loss | 3.3 | 6.4 | 0.1 | 0.3 | ||||||||||||
(4.5 | ) | (0.9 | ) | 0.6 | 0.7 | |||||||||||
Portion allocated to Revlon Holdings | (0.1 | ) | (0.1 | ) | — | — | ||||||||||
$ | (4.6 | ) | $ | (1.0 | ) | $ | 0.6 | $ | 0.7 | |||||||
Classification of Net Periodic Benefit (Income) Cost | ' | |||||||||||||||
Net periodic benefit (income) costs are reflected in the Company's Unaudited Consolidated Financial Statements as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net periodic benefit (income) costs: | ||||||||||||||||
Cost of sales | $ | (1.2 | ) | $ | (0.6 | ) | $ | (3.0 | ) | $ | (1.5 | ) | ||||
Selling, general and administrative expense | (0.2 | ) | 0.6 | (0.5 | ) | 1.8 | ||||||||||
Inventories | — | (0.1 | ) | (0.5 | ) | (0.6 | ) | |||||||||
$ | (1.4 | ) | $ | (0.1 | ) | $ | (4.0 | ) | $ | (0.3 | ) |
SEGMENT_DATA_AND_RELATED_INFOR1
SEGMENT DATA AND RELATED INFORMATION (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||||||||||||||||
The following table is a comparative summary of the Company’s net sales and segment profit by operating segment for the three and nine months ended September 30, 2014 and 2013: | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2014 (a) | 2013 | 2014 (a) | 2013 | |||||||||||||||||||||
Segment Net Sales: | ||||||||||||||||||||||||
Consumer | $ | 348.2 | $ | 333.1 | $ | 1,055.00 | $ | 1,003.70 | ||||||||||||||||
Professional | 124.1 | — | 385 | — | ||||||||||||||||||||
Total | $ | 472.3 | $ | 333.1 | $ | 1,440.00 | $ | 1,003.70 | ||||||||||||||||
Segment Profit: | ||||||||||||||||||||||||
Consumer | $ | 78.1 | $ | 78.9 | $ | 232 | $ | 240.2 | ||||||||||||||||
Professional | 25.2 | — | 88.5 | — | ||||||||||||||||||||
Total | $ | 103.3 | $ | 78.9 | $ | 320.5 | $ | 240.2 | ||||||||||||||||
Reconciliation: | ||||||||||||||||||||||||
Segment Profit | $ | 103.3 | $ | 78.9 | $ | 320.5 | $ | 240.2 | ||||||||||||||||
Less: | ||||||||||||||||||||||||
Unallocated corporate expenses | 15.8 | 12.7 | 47 | 40.9 | ||||||||||||||||||||
Depreciation and amortization | 25.6 | 17.4 | 76.4 | 51.4 | ||||||||||||||||||||
Non-cash stock compensation expense | 3.2 | — | 3.7 | — | ||||||||||||||||||||
Non-recurring items: | ||||||||||||||||||||||||
Restructuring and related charges | 1.1 | (1.4 | ) | 18.8 | 2.2 | |||||||||||||||||||
Acquisition and integration costs | 0.9 | 5.9 | 5.4 | 6.3 | ||||||||||||||||||||
Inventory purchase accounting adjustment, cost of sales | — | — | 2.6 | — | ||||||||||||||||||||
Gain from insurance proceeds related to Venezuela fire | — | — | — | (26.4 | ) | |||||||||||||||||||
Accrual for clean-up costs related to destroyed facility in Venezuela | — | — | — | 4.5 | ||||||||||||||||||||
Operating Income | 56.7 | 44.3 | 166.6 | 161.3 | ||||||||||||||||||||
Less: | ||||||||||||||||||||||||
Interest Expense | 20.6 | 17.8 | 63.9 | 55.5 | ||||||||||||||||||||
Amortization of debt issuance costs | 1.3 | 0.8 | 4.1 | 2.2 | ||||||||||||||||||||
Loss on early extinguishment of debt | — | 0.2 | 2 | 28.1 | ||||||||||||||||||||
Foreign currency losses (gains), net | 9.3 | 0.4 | 17.9 | 3.2 | ||||||||||||||||||||
Miscellaneous, net | 0.1 | 0.6 | 0.2 | 0.8 | ||||||||||||||||||||
Income from continuing operations before income taxes | $ | 25.4 | $ | 24.5 | $ | 78.5 | $ | 71.5 | ||||||||||||||||
(a) Consumer segment net sales and segment profit include the results of retail brands acquired in the Colomer Acquisition, which had previously been included in the Professional segment. | ||||||||||||||||||||||||
Schedule of Net Sales and Long-Lived Assets by Geographic Area | ' | |||||||||||||||||||||||
In the tables below, certain prior year amounts have been reclassified to conform to the current period’s presentation. | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Geographic area: | ||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
United States | $ | 243.8 | 52% | $ | 185.8 | 56% | $ | 749.2 | 52% | $ | 581.8 | 58% | ||||||||||||
Outside of the United States | 228.5 | 48% | 147.3 | 44% | 690.8 | 48% | 421.9 | 42% | ||||||||||||||||
$ | 472.3 | $ | 333.1 | $ | 1,440.00 | $ | 1,003.70 | |||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Long-lived assets, net: | ||||||||||||||||||||||||
United States | $ | 847.6 | 75% | $ | 837 | 73% | ||||||||||||||||||
Outside of the United States | 281.5 | 25% | 315.1 | 27% | ||||||||||||||||||||
$ | 1,129.10 | $ | 1,152.10 | |||||||||||||||||||||
Schedule of Net Sales by Classes of Similar Products | ' | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Classes of similar products: | ||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
Color cosmetics | $ | 242.6 | 51% | $ | 212.3 | 64% | $ | 763.5 | 53% | $ | 662.1 | 66% | ||||||||||||
Hair care | 132.8 | 28% | 43.1 | 13% | 405.5 | 28% | 131 | 13% | ||||||||||||||||
Beauty care and fragrance | 96.9 | 21% | 77.7 | 23% | 271 | 19% | 210.6 | 21% | ||||||||||||||||
$ | 472.3 | $ | 333.1 | $ | 1,440.00 | $ | 1,003.70 | |||||||||||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of Inventories | ' | |||||||
30-Sep-14 | December 31, | |||||||
2013 | ||||||||
Raw materials and supplies | $ | 53.7 | $ | 50.8 | ||||
Work-in-process | 13.4 | 12.8 | ||||||
Finished goods | 120.1 | 111.4 | ||||||
$ | 187.2 | $ | 175 | |||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Summary of Changes in Goodwill | ' | |||||||||||
The following table presents the changes in goodwill by segment during the nine months ended September 30, 2014: | ||||||||||||
Consumer | Professional | Total | ||||||||||
Balance at December 31, 2013 before Measurement Period Adjustments (a) | $ | 217.9 | $ | 256.8 | $ | 474.7 | ||||||
Measurement Period Adjustments | — | (2.4 | ) | (2.4 | ) | |||||||
Balance at December 31, 2013 | 217.9 | 254.4 | 472.3 | |||||||||
Foreign currency translation adjustment | — | (5.5 | ) | (5.5 | ) | |||||||
Balance at September 30, 2014 | $ | 217.9 | $ | 248.9 | $ | 466.8 | ||||||
(a) As previously reported in the Company's 2013 Form 10-K. | ||||||||||||
Summary of Total Purchased Intangible Assets | ' | |||||||||||
The following tables present details of the Company's total intangible assets: | ||||||||||||
30-Sep-14 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Finite-lived intangible assets: | ||||||||||||
Trademarks and Licenses | $ | 140.6 | $ | (20.8 | ) | $ | 119.8 | |||||
Customer relationships | 110 | (11.8 | ) | 98.2 | ||||||||
Patents and Internally-Developed IP | 16.1 | (2.0 | ) | 14.1 | ||||||||
Total finite-lived intangible assets | $ | 266.7 | $ | (34.6 | ) | $ | 232.1 | |||||
Indefinite-lived intangible assets: | ||||||||||||
Trade Names | $ | 104 | $ | 104 | ||||||||
Total indefinite-lived intangible assets | $ | 104 | $ | 104 | ||||||||
Total intangible assets | $ | 370.7 | $ | (34.6 | ) | $ | 336.1 | |||||
December 31, 2013 (a) | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Finite-lived intangible assets: | ||||||||||||
Trademarks and Licenses | $ | 142.1 | $ | (11.0 | ) | $ | 131.1 | |||||
Customer relationships | 111.5 | (6.7 | ) | 104.8 | ||||||||
Patents and Internally-Developed IP | 15.8 | (1.3 | ) | 14.5 | ||||||||
Total finite-lived intangible assets | $ | 269.4 | $ | (19.0 | ) | $ | 250.4 | |||||
Indefinite-lived intangible assets: | ||||||||||||
Trade Names | $ | 109.7 | $ | 109.7 | ||||||||
Total indefinite-lived intangible assets | $ | 109.7 | $ | 109.7 | ||||||||
Total intangible assets | $ | 379.1 | $ | (19.0 | ) | $ | 360.1 | |||||
(a) During the first quarter of 2014, the Company recorded Measurement Period Adjustments to customer relationships acquired in the Colomer Acquisition on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. |
ACCRUED_EXPENSES_AND_OTHER_Tab
ACCRUED EXPENSES AND OTHER (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Components of Accrued Expenses and Other | ' | |||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Sales returns and allowances | $ | 61.3 | $ | 91.5 | ||||
Compensation and related benefits | 71.2 | 74.5 | ||||||
Advertising and promotional costs | 48.1 | 42.9 | ||||||
Taxes | 21 | 28.4 | ||||||
Interest | 3.8 | 13.8 | ||||||
Restructuring reserve | 12.2 | 13.7 | ||||||
Other | 43.9 | 48.8 | ||||||
$ | 261.5 | $ | 313.6 | |||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Components of Long-Term Debt | ' | |||||||
September 30, | 31-Dec-13 | |||||||
2014 | ||||||||
Amended Term Loan Facility: Acquisition Term Loan due 2019, net of discounts (a) | $ | 693.3 | $ | 698.3 | ||||
Amended Term Loan Facility: 2011 Term Loan due 2017, net of discounts (a) | 671.3 | 670.1 | ||||||
Amended Revolving Credit Facility (b) | — | — | ||||||
5¾% Senior Notes due 2021 (c) | 500 | 500 | ||||||
Non-Contributed Loan Portion of the Amended and Restated Senior Subordinated Term Loan due 2014 (d) | — | 58.4 | ||||||
Spanish Government Loan due 2025 (e) | 0.7 | 0.9 | ||||||
1,865.30 | 1,927.70 | |||||||
Less current portion | (7.0 | ) | (65.4 | ) | ||||
$ | 1,858.30 | $ | 1,862.30 | |||||
(a) In February 2014, Products Corporation entered into an amendment (the “February 2014 Term Loan Amendment”) to its amended term loan agreement, which is comprised of (i) the $675.0 million term loan due November 19, 2017 (the "2011 Term Loan") and (ii) the $700.0 million term loan due October 8, 2019 (the "Acquisition Term Loan"), which had $694.8 million in aggregate principal balance outstanding as of September 30, 2014 (together, the "Amended Term Loan Agreement"). The February 2014 Term Loan Amendment reduced the interest rates applicable to the 2011 Term Loan. See "Recent Debt Transactions - February 2014 Term Loan Amendment" below for further discussion. Additionally, see Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for additional details regarding Products Corporation's Amended Term Loan Agreement. | ||||||||
(b) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding Products Corporation's existing $175.0 million asset-based, multi-currency revolving credit facility (the "Amended Revolving Credit Facility"). | ||||||||
(c) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding Products Corporation's 5¾% Senior Notes that mature on February 15, 2021. | ||||||||
(d) See "Recent Debt Transactions - Repayment of Non-Contributed Loan" below and Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding the $58.4 million non-contributed loan portion of the Amended and Restated Senior Subordinated Term Loan Agreement (the "Non-Contributed Loan"), which Products Corporation optionally prepaid in full on May 1, 2014. | ||||||||
(e) See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding the euro-denominated loan payable to the Spanish government which matures on June 30, 2025. |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
Components of Accumulated Other Comprehensive Loss | ' | |||||||||||||||
The components of accumulated other comprehensive loss as of September 30, 2014 are as follows: | ||||||||||||||||
Foreign Currency Translation | Actuarial (Loss) Gain on Post-retirement Benefits | Deferred Gain (Loss) - Hedging | Accumulated Other Comprehensive Loss | |||||||||||||
Balance, January 1, 2014 | $ | 19.2 | $ | (170.5 | ) | $ | 1.5 | $ | (149.8 | ) | ||||||
Currency translation adjustment, net of tax benefit of $0.4 million | (17.1 | ) | — | — | (17.1 | ) | ||||||||||
Amortization of pension related costs, net of tax of nil (a) | — | 3.4 | — | 3.4 | ||||||||||||
Revaluation of derivative financial instrument, net of tax benefit of $1.4 million(b) | — | — | (2.3 | ) | (2.3 | ) | ||||||||||
Other comprehensive income (loss) | (17.1 | ) | 3.4 | (2.3 | ) | (16.0 | ) | |||||||||
Balance, September 30, 2014 | $ | 2.1 | $ | (167.1 | ) | $ | (0.8 | ) | $ | (165.8 | ) | |||||
(a) | Amount represents the change in accumulated other comprehensive loss as a result of the amortization of unrecognized prior service costs and actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 5, “Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. | |||||||||||||||
(b) | For the nine months ended September 30, 2014, the 2013 Interest Rate Swap (as hereinafter defined) was deemed effective and therefore the changes in fair value related to the 2013 Interest Rate Swap are recorded in other comprehensive income. See Note 13, "Financial Instruments," for further discussion of the 2013 Interest Rate Swap. |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Schedule of Fair Values of Financial Assets and Liabilities | ' | |||||||||||||||||||
As of September 30, 2014, the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: | ||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
FX Contracts(a) | $ | 0.6 | $ | — | $ | 0.6 | $ | — | ||||||||||||
Total assets at fair value | $ | 0.6 | $ | — | $ | 0.6 | $ | — | ||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
FX Contracts(a) | $ | — | $ | — | $ | — | $ | — | ||||||||||||
2013 Interest Rate Swap(b) | 1.2 | — | 1.2 | — | ||||||||||||||||
Total liabilities at fair value | $ | 1.2 | $ | — | $ | 1.2 | $ | — | ||||||||||||
As of December 31, 2013, the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below: | ||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
FX Contracts(a) | $ | 1 | $ | — | $ | 1 | $ | — | ||||||||||||
2013 Interest Rate Swap(b) | 2.5 | — | 2.5 | — | ||||||||||||||||
Total assets at fair value | $ | 3.5 | $ | — | $ | 3.5 | $ | — | ||||||||||||
Liabilities: | ||||||||||||||||||||
Derivatives: | ||||||||||||||||||||
FX Contracts(a) | $ | 0.2 | $ | — | $ | 0.2 | $ | — | ||||||||||||
Total liabilities at fair value | $ | 0.2 | $ | — | $ | 0.2 | $ | — | ||||||||||||
(a) | The fair value of the Company’s foreign currency forward exchange contracts ("FX Contracts") was measured based on observable market transactions of spot and forward rates on the respective dates. See Note 13, “Financial Instruments.” | |||||||||||||||||||
(b) | The fair value of the Company's 2013 Interest Rate Swap was measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve on the respective dates. See Note 13, “Financial Instruments.” | |||||||||||||||||||
Financial Liabilities Not Measured At Fair Value But For Which Fair Value Disclosure Is Required | ' | |||||||||||||||||||
As of September 30, 2014, the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Long-term debt, including current portion | $ | — | $ | 1,837.30 | $ | — | $ | 1,837.30 | $ | 1,865.30 | ||||||||||
As of December 31, 2013, the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below: | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Long-term debt, including current portion | $ | — | $ | 1,931.90 | $ | — | $ | 1,931.90 | $ | 1,927.70 | ||||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||
Fair Value of Derivative Financial Instruments in Consolidated Balance Sheet | ' | |||||||||||||||||||
Fair Values of Derivative Financial Instruments in Consolidated Balance Sheets: | ||||||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||
Balance Sheet | September 30, | December 31, | Balance Sheet | September 30, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Classification | Fair Value | Fair Value | Classification | Fair Value | Fair Value | |||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
2013 Interest Rate Swap(i) | Prepaid expenses and other | $ | — | $ | — | Accrued expenses and other | $ | 1 | $ | — | ||||||||||
Other assets | — | 2.5 | Other long-term liabilities | 0.2 | — | |||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
FX Contracts(ii) | Prepaid expenses and other | $ | 0.6 | $ | 1 | Accrued Expenses | $ | — | $ | 0.2 | ||||||||||
(i) The fair values of the 2013 Interest Rate Swap at September 30, 2014 and December 31, 2013 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
(ii) The fair values of the FX Contracts at September 30, 2014 and December 31, 2013 were measured based on observable market transactions of spot and forward rates at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
Effects of Derivative Financial Instruments on Income and Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
Effects of Derivative Financial Instruments on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2014 and 2013: | ||||||||||||||||||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
2013 Interest Rate Swap, net of tax (a) | $ | 0.6 | $ | — | $ | (2.3 | ) | $ | — | |||||||||||
(a) | Net of tax expense (benefit) of $0.4 million and $(1.4) million for the three and nine months ended September 30, 2014, respectively. | |||||||||||||||||||
Income Statement Classification | Amount of Gain (Loss) Recognized in Net Income | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
FX Contracts | Foreign currency losses (gains), net | $ | 1.5 | $ | (1.0 | ) | $ | 0.2 | $ | 1.3 | ||||||||||
GUARANTOR_FINANCIAL_INFORMATIO1
GUARANTOR FINANCIAL INFORMATION (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||
Condensed Balance Sheet | ' | |||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 49.4 | $ | 68 | $ | 61 | $ | — | $ | 178.4 | ||||||||||
Trade receivables, less allowances for doubtful accounts | 84.6 | 44.6 | 126.8 | — | 256 | |||||||||||||||
Inventories | 86.2 | 34.4 | 66.6 | — | 187.2 | |||||||||||||||
Deferred income taxes - current | 49.1 | — | 12.7 | — | 61.8 | |||||||||||||||
Prepaid expenses and other | 127.7 | 6.5 | 29.1 | — | 163.3 | |||||||||||||||
Intercompany receivables | 974.8 | 624.4 | 160.5 | (1,759.7 | ) | — | ||||||||||||||
Investment in subsidiaries | 610.7 | (144.8 | ) | — | (465.9 | ) | — | |||||||||||||
Property, plant and equipment, net | 107.9 | 27.6 | 73.6 | — | 209.1 | |||||||||||||||
Deferred income taxes - noncurrent | 10.2 | — | 11.4 | — | 21.6 | |||||||||||||||
Goodwill | 185.8 | 30 | 251 | — | 466.8 | |||||||||||||||
Intangible assets, net | 54.6 | 165.2 | 116.3 | — | 336.1 | |||||||||||||||
Other assets | 88.2 | 4.6 | 24.3 | — | 117.1 | |||||||||||||||
Total assets | $ | 2,429.20 | $ | 860.5 | $ | 933.3 | $ | (2,225.6 | ) | $ | 1,997.40 | |||||||||
LIABILITIES AND STOCKHOLDER’S DEFICIENCY | ||||||||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | 7.9 | $ | — | $ | 7.9 | ||||||||||
Current portion of long-term debt | 7 | — | — | — | 7 | |||||||||||||||
Accounts payable | 78.3 | 19.3 | 70.1 | — | 167.7 | |||||||||||||||
Accrued expenses and other | 144.7 | 27.7 | 89.1 | — | 261.5 | |||||||||||||||
Intercompany payables | 698.9 | 682.2 | 378.6 | (1,759.7 | ) | — | ||||||||||||||
Long-term debt | 1,857.60 | — | 0.7 | — | 1,858.30 | |||||||||||||||
Other long-term liabilities | 128.7 | 2.9 | 49.4 | — | 181 | |||||||||||||||
Total liabilities | 2,915.20 | 732.1 | 595.8 | (1,759.7 | ) | 2,483.40 | ||||||||||||||
Stockholder’s deficiency | (486.0 | ) | 128.4 | 337.5 | (465.9 | ) | (486.0 | ) | ||||||||||||
Total liabilities and stockholder’s deficiency | $ | 2,429.20 | $ | 860.5 | $ | 933.3 | $ | (2,225.6 | ) | $ | 1,997.40 | |||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Products Corporation (b) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries (a) (b) | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 141.3 | $ | 0.8 | $ | 102 | $ | — | $ | 244.1 | ||||||||||
Trade receivables, less allowances for doubtful accounts | 88.7 | 24.5 | 140.3 | — | 253.5 | |||||||||||||||
Inventories | 78 | 9.5 | 87.5 | — | 175 | |||||||||||||||
Deferred income taxes - current | 52.5 | — | 12.6 | — | 65.1 | |||||||||||||||
Prepaid expenses and other | 111.6 | 4.7 | 39.8 | — | 156.1 | |||||||||||||||
Intercompany receivables | 1,051.30 | 614.5 | 474.1 | (2,139.9 | ) | — | ||||||||||||||
Investment in subsidiaries | 589.7 | (60.2 | ) | — | (529.5 | ) | — | |||||||||||||
Property, plant and equipment, net | 86.7 | 0.6 | 108.6 | — | 195.9 | |||||||||||||||
Deferred income taxes - noncurrent | 38 | — | 12.9 | — | 50.9 | |||||||||||||||
Goodwill | 185.8 | 30 | 256.5 | — | 472.3 | |||||||||||||||
Intangible assets, net | 57.4 | 0.3 | 302.4 | — | 360.1 | |||||||||||||||
Other assets | 90.9 | 1.6 | 31.3 | — | 123.8 | |||||||||||||||
Total assets | $ | 2,571.90 | $ | 626.3 | $ | 1,568.00 | $ | (2,669.4 | ) | $ | 2,096.80 | |||||||||
LIABILITIES AND STOCKHOLDER’S DEFICIENCY | ||||||||||||||||||||
Short-term borrowings | $ | — | $ | 1.8 | $ | 6.1 | $ | — | $ | 7.9 | ||||||||||
Current portion of long-term debt | 65.4 | — | — | — | 65.4 | |||||||||||||||
Accounts payable | 72.2 | 6.2 | 87.3 | — | 165.7 | |||||||||||||||
Accrued expenses and other | 161.8 | 13.4 | 138.4 | — | 313.6 | |||||||||||||||
Intercompany payables | 790 | 675.9 | 674 | (2,139.9 | ) | — | ||||||||||||||
Long-term debt | 1,861.40 | — | 0.9 | — | 1,862.30 | |||||||||||||||
Other long-term liabilities | 137.6 | 2.9 | 57.9 | — | 198.4 | |||||||||||||||
Total liabilities | 3,088.40 | 700.2 | 964.6 | (2,139.9 | ) | 2,613.30 | ||||||||||||||
Stockholder’s deficiency | (516.5 | ) | (73.9 | ) | 603.4 | (529.5 | ) | (516.5 | ) | |||||||||||
Total liabilities and stockholder’s deficiency | $ | 2,571.90 | $ | 626.3 | $ | 1,568.00 | $ | (2,669.4 | ) | $ | 2,096.80 | |||||||||
(a) | During the three months ended March 31, 2014, the Company recorded Measurement Period Adjustments to certain net assets and intangible assets acquired in the Colomer Acquisition on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. | |||||||||||||||||||
(b) | In the second quarter of 2014, the Company retrospectively adjusted deferred taxes for an immaterial correction, as discussed in Note 1, Description of Business and Basis of Presentation. For the Guarantor financials, the correction also included moving certain tax balances from Non-Guarantor to the Products Corporation Balance Sheet as of December 31, 2013. | |||||||||||||||||||
Condensed Income Statement and Statement of Comprehensive Income | ' | |||||||||||||||||||
Condensed Consolidating Statements of Income and Comprehensive Income | ||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net Sales | $ | 233.5 | $ | 91.2 | $ | 189.4 | $ | (41.8 | ) | $ | 472.3 | |||||||||
Cost of sales | 100.8 | 37 | 68.6 | (41.8 | ) | 164.6 | ||||||||||||||
Gross profit | 132.7 | 54.2 | 120.8 | — | 307.7 | |||||||||||||||
Selling, general and administrative expenses | 119.7 | 33.5 | 96.1 | — | 249.3 | |||||||||||||||
Acquisition and integration costs | 0.9 | — | — | — | 0.9 | |||||||||||||||
Restructuring charges | (0.1 | ) | 0.2 | 0.7 | — | 0.8 | ||||||||||||||
Operating income | 12.2 | 20.5 | 24 | — | 56.7 | |||||||||||||||
Other expenses, net: | ||||||||||||||||||||
Intercompany interest, net | (2.2 | ) | — | 2.2 | — | — | ||||||||||||||
Interest expense | 20.4 | — | 0.2 | — | 20.6 | |||||||||||||||
Amortization of debt issuance costs | 1.3 | — | — | — | 1.3 | |||||||||||||||
Loss on early extinguishment of debt, net | — | — | — | — | — | |||||||||||||||
Foreign currency losses, net | 1.9 | (0.4 | ) | 7.8 | — | 9.3 | ||||||||||||||
Miscellaneous, net | (9.8 | ) | (3.1 | ) | 13 | — | 0.1 | |||||||||||||
Other expenses, net | 11.6 | (3.5 | ) | 23.2 | — | 31.3 | ||||||||||||||
Income from continuing operations before income taxes | 0.6 | 24 | 0.8 | — | 25.4 | |||||||||||||||
Provision for (benefit from) income taxes | 10.6 | — | (1.0 | ) | — | 9.6 | ||||||||||||||
(Loss) income from continuing operations | (10.0 | ) | 24 | 1.8 | — | 15.8 | ||||||||||||||
(Loss) income from discontinued operations, net of taxes | — | — | 0.4 | — | 0.4 | |||||||||||||||
Equity in income (loss) of subsidiaries | 26.2 | 5.8 | — | (32.0 | ) | — | ||||||||||||||
Net income (loss) | $ | 16.2 | $ | 29.8 | $ | 2.2 | $ | (32.0 | ) | $ | 16.2 | |||||||||
Other comprehensive (loss) income | (16.6 | ) | 4.9 | (10.7 | ) | 5.8 | (16.6 | ) | ||||||||||||
Total comprehensive (loss) income | $ | (0.4 | ) | $ | 34.7 | $ | (8.5 | ) | $ | (26.2 | ) | $ | (0.4 | ) | ||||||
Condensed Consolidating Statements of Income and Comprehensive Income | ||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net Sales | $ | 229.4 | $ | 25.3 | $ | 126.9 | $ | (48.5 | ) | $ | 333.1 | |||||||||
Cost of sales | 106.2 | 12.6 | 50.8 | (48.5 | ) | 121.1 | ||||||||||||||
Gross profit | 123.2 | 12.7 | 76.1 | — | 212 | |||||||||||||||
Selling, general and administrative expenses | 100.8 | 9.4 | 53.1 | — | 163.3 | |||||||||||||||
Acquisition and integration costs | 5.9 | — | — | — | 5.9 | |||||||||||||||
Restructuring charges | — | 0.1 | (1.6 | ) | — | (1.5 | ) | |||||||||||||
Operating income | 16.5 | 3.2 | 24.6 | — | 44.3 | |||||||||||||||
Other expenses, net: | ||||||||||||||||||||
Intercompany interest, net | 0.2 | (0.1 | ) | 1.5 | — | 1.6 | ||||||||||||||
Interest expense | 16 | 0.1 | 0.1 | — | 16.2 | |||||||||||||||
Amortization of debt issuance costs | 0.8 | — | — | — | 0.8 | |||||||||||||||
Loss on early extinguishment of debt, net | 0.2 | — | — | — | 0.2 | |||||||||||||||
Foreign currency losses, net | (1.5 | ) | 0.5 | 1.4 | — | 0.4 | ||||||||||||||
Miscellaneous, net | (10.9 | ) | (5.8 | ) | 17.3 | — | 0.6 | |||||||||||||
Other expenses, net | 4.8 | (5.3 | ) | 20.3 | — | 19.8 | ||||||||||||||
Income from continuing operations before income taxes | 11.7 | 8.5 | 4.3 | — | 24.5 | |||||||||||||||
Provision for income taxes | 10.9 | 0.4 | 1.7 | — | 13 | |||||||||||||||
Income from continuing operations | 0.8 | 8.1 | 2.6 | — | 11.5 | |||||||||||||||
Loss from discontinued operations, net of taxes | — | — | (1.5 | ) | — | (1.5 | ) | |||||||||||||
Equity in income (loss) of subsidiaries | 9.2 | 2.2 | — | (11.4 | ) | — | ||||||||||||||
Net income (loss) | $ | 10 | $ | 10.3 | $ | 1.1 | $ | (11.4 | ) | $ | 10 | |||||||||
Other comprehensive income (loss) | 3.1 | (1.4 | ) | (1.2 | ) | 2.6 | 3.1 | |||||||||||||
Total comprehensive income (loss) | $ | 13.1 | $ | 8.9 | $ | (0.1 | ) | $ | (8.8 | ) | $ | 13.1 | ||||||||
Condensed Consolidating Statements of Income and Comprehensive Income | ||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net Sales | $ | 729 | $ | 272.7 | $ | 577.5 | $ | (139.2 | ) | $ | 1,440.00 | |||||||||
Cost of sales | 321.5 | 109.8 | 203.2 | (139.2 | ) | 495.3 | ||||||||||||||
Gross profit | 407.5 | 162.9 | 374.3 | — | 944.7 | |||||||||||||||
Selling, general and administrative expenses | 354.1 | 96.8 | 303.7 | — | 754.6 | |||||||||||||||
Acquisition and integration costs | 5.4 | — | — | — | 5.4 | |||||||||||||||
Restructuring charges | 2.2 | 3.3 | 12.6 | — | 18.1 | |||||||||||||||
Operating income | 45.8 | 62.8 | 58 | — | 166.6 | |||||||||||||||
Other expenses, net: | ||||||||||||||||||||
Intercompany interest, net | (6.4 | ) | (0.3 | ) | 6.7 | — | — | |||||||||||||
Interest expense | 63.2 | 0.1 | 0.6 | — | 63.9 | |||||||||||||||
Amortization of debt issuance costs | 4.1 | — | — | — | 4.1 | |||||||||||||||
Loss on early extinguishment of debt, net | 2 | — | — | — | 2 | |||||||||||||||
Foreign currency losses, net | (4.7 | ) | (0.2 | ) | 22.8 | — | 17.9 | |||||||||||||
Miscellaneous, net | (39.1 | ) | (4.0 | ) | 43.3 | — | 0.2 | |||||||||||||
Other expenses, net | 19.1 | (4.4 | ) | 73.4 | — | 88.1 | ||||||||||||||
Income (loss) from continuing operations before income taxes | 26.7 | 67.2 | (15.4 | ) | — | 78.5 | ||||||||||||||
Provision for (benefit from) income taxes | 64.1 | (27.9 | ) | 0.4 | — | 36.6 | ||||||||||||||
Income (loss) from continuing operations | (37.4 | ) | 95.1 | (15.8 | ) | — | 41.9 | |||||||||||||
Income from discontinued operations, net of taxes | 0.2 | — | 0.7 | — | 0.9 | |||||||||||||||
Equity in income (loss) of subsidiaries | 80 | (9.4 | ) | — | (70.6 | ) | — | |||||||||||||
Net income (loss) | $ | 42.8 | $ | 85.7 | $ | (15.1 | ) | $ | (70.6 | ) | $ | 42.8 | ||||||||
Other comprehensive (loss) income | (16.0 | ) | 4.7 | (11.9 | ) | 7.2 | (16.0 | ) | ||||||||||||
Total comprehensive income (loss) | $ | 26.8 | $ | 90.4 | $ | (27.0 | ) | $ | (63.4 | ) | $ | 26.8 | ||||||||
Condensed Consolidating Statements of Income and Comprehensive Income | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net Sales | $ | 713.5 | $ | 63.6 | $ | 372.9 | $ | (146.3 | ) | $ | 1,003.70 | |||||||||
Cost of sales | 325.5 | 30.2 | 148.7 | (146.3 | ) | 358.1 | ||||||||||||||
Gross profit | 388 | 33.4 | 224.2 | — | 645.6 | |||||||||||||||
Selling, general and administrative expenses | 311.8 | 28.3 | 136.1 | — | 476.2 | |||||||||||||||
Acquisition and integration costs | 6.3 | — | — | — | 6.3 | |||||||||||||||
Restructuring charges | — | 0.3 | 1.5 | — | 1.8 | |||||||||||||||
Operating income | 69.9 | 4.8 | 86.6 | — | 161.3 | |||||||||||||||
Other expenses, net: | ||||||||||||||||||||
Intercompany interest, net | 0.7 | (0.5 | ) | 4.5 | — | 4.7 | ||||||||||||||
Interest expense | 50.3 | 0.2 | 0.3 | — | 50.8 | |||||||||||||||
Amortization of debt issuance costs | 2.2 | — | — | — | 2.2 | |||||||||||||||
Loss on early extinguishment of debt | 28.1 | — | — | — | 28.1 | |||||||||||||||
Foreign currency losses, net | 2.5 | 0.4 | 0.3 | — | 3.2 | |||||||||||||||
Miscellaneous, net | (49.4 | ) | 5.2 | 45 | — | 0.8 | ||||||||||||||
Other expenses, net | 34.4 | 5.3 | 50.1 | — | 89.8 | |||||||||||||||
Income (loss) from continuing operations before income taxes | 35.5 | (0.5 | ) | 36.5 | — | 71.5 | ||||||||||||||
Provision for (benefit from) income taxes | 27.3 | (2.0 | ) | 7.1 | 32.4 | |||||||||||||||
Income from continuing operations | 8.2 | 1.5 | 29.4 | — | 39.1 | |||||||||||||||
Income (loss) from discontinued operations, net of taxes | 0.3 | — | (6.6 | ) | — | (6.3 | ) | |||||||||||||
Equity in income (loss) of subsidiaries | 24.3 | 19.7 | — | (44.0 | ) | — | ||||||||||||||
Net income (loss) | $ | 32.8 | $ | 21.2 | $ | 22.8 | $ | (44.0 | ) | $ | 32.8 | |||||||||
Other comprehensive income (loss) | 2.2 | 9.8 | 4 | (13.8 | ) | 2.2 | ||||||||||||||
Total comprehensive income (loss) | $ | 35 | $ | 31 | $ | 26.8 | $ | (57.8 | ) | $ | 35 | |||||||||
Condensed Cash Flow Statement | ' | |||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 2.2 | $ | 55.7 | $ | (11.2 | ) | $ | — | $ | 46.7 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
Capital expenditures | (23.2 | ) | (0.3 | ) | (6.8 | ) | — | (30.3 | ) | |||||||||||
Proceeds from the sale of certain assets | — | — | 0.9 | — | 0.9 | |||||||||||||||
Net cash used in investing activities | (23.2 | ) | (0.3 | ) | (5.9 | ) | — | (29.4 | ) | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
Net (decrease) increase in short-term borrowings and overdraft | (3.7 | ) | (1.9 | ) | 2.5 | — | (3.1 | ) | ||||||||||||
Repayment under the Amended and Restated Senior Subordinated Term Loan | (58.4 | ) | — | — | — | (58.4 | ) | |||||||||||||
Repayments under the Acquisition Term Loan | (5.3 | ) | — | — | — | (5.3 | ) | |||||||||||||
Payment of financing costs | (1.8 | ) | — | — | — | (1.8 | ) | |||||||||||||
Other financing activities | (1.7 | ) | — | (0.4 | ) | — | (2.1 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (70.9 | ) | (1.9 | ) | 2.1 | — | (70.7 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (12.3 | ) | — | (12.3 | ) | |||||||||||||
Net (decrease) increase in cash and cash equivalents | (91.9 | ) | 53.5 | (27.3 | ) | — | (65.7 | ) | ||||||||||||
Cash and cash equivalents at beginning of period (a) | 141.3 | 14.5 | 88.3 | — | 244.1 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 49.4 | $ | 68 | $ | 61 | $ | — | $ | 178.4 | ||||||||||
(a) In January 2014, Colomer's U.S. subsidiaries became additional guarantors under Products Corporation's Amended Credit Agreements and 5¾% Senior Notes. Accordingly, for cash flow presentation purposes, the cash and cash equivalents at the beginning of the period associated with Colomer's U.S. subsidiaries have been reported under Guarantor Subsidiaries. | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 38.4 | $ | 0.7 | $ | (33.3 | ) | $ | — | $ | 5.8 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
Capital expenditures | (15.5 | ) | (0.5 | ) | (1.9 | ) | — | (17.9 | ) | |||||||||||
Insurance proceeds for property, plant and equipment | — | — | 13.1 | — | 13.1 | |||||||||||||||
Proceeds from the sale of certain assets | 0.3 | — | 3.1 | — | 3.4 | |||||||||||||||
Net cash (used in) provided by investing activities | (15.2 | ) | (0.5 | ) | 14.3 | — | (1.4 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
Net (decrease) increase in short-term borrowings and overdraft | (1.4 | ) | (0.1 | ) | 1.7 | — | 0.2 | |||||||||||||
Proceeds from the issuance of the 5¾% Senior Notes | 500 | — | — | — | 500 | |||||||||||||||
Repayment of the 9¾% Senior Secured Notes | (330.0 | ) | — | — | — | (330.0 | ) | |||||||||||||
Repayment under the 2011 Term Loan Facility | (113.0 | ) | — | — | — | (113.0 | ) | |||||||||||||
Payment of financing costs | (32.7 | ) | — | — | — | (32.7 | ) | |||||||||||||
Other financing activities | (1.5 | ) | — | (0.3 | ) | — | (1.8 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 21.4 | (0.1 | ) | 1.4 | — | 22.7 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (4.1 | ) | — | (4.1 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 44.6 | 0.1 | (21.7 | ) | — | 23 | ||||||||||||||
Cash and cash equivalents at beginning of period | 59.1 | — | 57.2 | — | 116.3 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 103.7 | $ | 0.1 | $ | 35.5 | $ | — | $ | 139.3 | ||||||||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | ||
segment | Revlon Venezuela | Revlon Venezuela | Previously Reported | Consumer Segment | Consumer Segment | ||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of operating segment (segment) | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ||
Deferred income taxes – noncurrent | $21.60 | $21.60 | ' | $50.90 | [1] | ' | ' | $164.80 | [1] | ' | ' |
Other long-term liabilities | 84.6 | 84.6 | ' | 80.1 | [1] | ' | ' | 194 | [1] | ' | ' |
Foreign Currency Exchange Rate, Translation | ' | ' | ' | ' | 53 | 6.3 | ' | ' | ' | ||
Foreign currency loss from Venezuela re-measurement | 6 | 6 | 0.6 | ' | ' | ' | ' | ' | ' | ||
Decrease in net sales from devaluation | ' | ' | ' | ' | ' | ' | ' | 6.7 | 6.7 | ||
Decrease in operating income from devaluation | ' | ' | ' | ' | ' | ' | ' | $4.10 | $4.10 | ||
[1] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Oct. 09, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Oct. 09, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Oct. 09, 2013 | Oct. 09, 2013 | Dec. 31, 2013 | Oct. 09, 2013 | Oct. 09, 2013 | Oct. 09, 2013 | |||||
The Colomer Group Participations, S.L. | The Colomer Group Participations, S.L. | The Colomer Group Participations, S.L. | Acquisition and Integration Costs | Acquisition and Integration Costs | Acquisition and Integration Costs | Acquisition and Integration Costs | Measurement Period Adjustment | Before Measurement Period Adjustment | Before Measurement Period Adjustment | Customer relationships | Customer relationships | Customer relationships | ||||||||||||
The Colomer Group Participations, S.L. | The Colomer Group Participations, S.L. | The Colomer Group Participations, S.L. | The Colomer Group Participations, S.L. | Minimum | Maximum | Before Measurement Period Adjustment | ||||||||||||||||||
The Colomer Group Participations, S.L. | The Colomer Group Participations, S.L. | Maximum | ||||||||||||||||||||||
The Colomer Group Participations, S.L. | ||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Effective date of acquisition | ' | ' | ' | ' | ' | ' | 9-Oct-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Acquisition related costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | $5.90 | $0.50 | $6.30 | ' | ' | ' | ' | ' | ' | |||||
Integration related costs | ' | ' | ' | ' | ' | ' | ' | 4.9 | 12.5 | 0.8 | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | |||||
Total consideration | 664.5 | ' | ' | ' | ' | ' | 664.5 | ' | ' | ' | ' | ' | ' | 0 | 664.5 | [1] | ' | ' | ' | ' | ||||
Acquisition and integration costs | ' | 0.9 | 5.9 | 5.4 | 6.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Trade receivables | 83.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 83.9 | [1] | ' | ' | ' | ' | ||||
Intangible assets | 298.1 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.4 | [2] | 292.7 | [1],[2] | ' | ' | ' | ' | ||
Weighted Average Useful Life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | '20 years | '10 years | |||||
Goodwill | 253.3 | [2],[3] | 466.8 | ' | 466.8 | ' | 472.3 | [4] | ' | ' | ' | ' | ' | ' | ' | -2.4 | [2],[3] | 255.7 | [1],[2],[3] | 474.7 | [5] | ' | ' | ' |
Deferred tax liability | 125.4 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.1 | [2] | 123.3 | [1],[2] | ' | ' | ' | ' | ||
Net impact of measurement period adjustment related to purchase intangible asset on goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.3 | ' | ' | ' | ' | ' | |||||
Other assets | 5.8 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.9 | [3] | 1.9 | [1],[3] | ' | ' | ' | ' | ||
Other long-term liabilities | 25.3 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.8 | [3] | 20.5 | [1],[3] | ' | ' | ' | ' | ||
Net impact of measurement period adjustment related to taxes on goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.90 | ' | ' | ' | ' | ' | |||||
[1] | As previously reported in the Company's 2013 Form 10-K | |||||||||||||||||||||||
[2] | The Measurement Period Adjustments to intangible assets, deferred tax liability and goodwill in the first quarter of 2014 related to a change in assumptions used to calculate the fair value of an acquired customer relationship intangible asset, which increased the intangible asset by $5.4 million and extended the life of the asset from 10 to 20 years, increased deferred tax liabilities by $2.1 million, and resulted in a net decrease to goodwill of $3.3 million. | |||||||||||||||||||||||
[3] | The Company recorded a $3.9 million income tax adjustment to the beginning tax balance within other assets and a $4.8 million adjustment to other long-term liabilities, resulting in a net increase to goodwill of $0.9 million. | |||||||||||||||||||||||
[4] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. | |||||||||||||||||||||||
[5] | As previously reported in the Company's 2013 Form 10-K. |
Business_Combinations_Schedule
Business Combinations - Schedule of Net Asset Acquired (Detail) (USD $) | 0 Months Ended | ||||
In Millions, unless otherwise specified | Oct. 09, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | ||
Assets [Abstract] | ' | ' | ' | ||
Cash and cash equivalents | $36.90 | ' | ' | ||
Trade receivables | 83.9 | ' | ' | ||
Inventories | 75.1 | ' | ' | ||
Prepaid expenses and other | 31.3 | ' | ' | ||
Property, plant and equipment | 96.7 | ' | ' | ||
Intangible assets | 298.1 | [1] | ' | ' | |
Goodwill | 253.3 | [1],[2] | 466.8 | 472.3 | [3] |
Deferred tax asset - non-current | 53.1 | ' | ' | ||
Other assets | 5.8 | [2] | ' | ' | |
Total assets acquired | 934.2 | ' | ' | ||
Liabilities [Abstract] | ' | ' | ' | ||
Accounts payable | 48 | ' | ' | ||
Accrued expenses and other | 65.6 | ' | ' | ||
Long-term debt | 0.9 | ' | ' | ||
Long-term pension and other benefit plan liabilities | 4.5 | ' | ' | ||
Deferred tax liability | 125.4 | [1] | ' | ' | |
Other long-term liabilities | 25.3 | [2] | ' | ' | |
Total liabilities acquired | 269.7 | ' | ' | ||
Total consideration | 664.5 | ' | ' | ||
The Colomer Group Participations, S.L. | ' | ' | ' | ||
Liabilities [Abstract] | ' | ' | ' | ||
Total consideration | 664.5 | ' | ' | ||
Before Measurement Period Adjustment | ' | ' | ' | ||
Assets [Abstract] | ' | ' | ' | ||
Cash and cash equivalents | 36.9 | [4] | ' | ' | |
Trade receivables | 83.9 | [4] | ' | ' | |
Inventories | 75.1 | [4] | ' | ' | |
Prepaid expenses and other | 31.3 | [4] | ' | ' | |
Property, plant and equipment | 96.7 | [4] | ' | ' | |
Intangible assets | 292.7 | [1],[4] | ' | ' | |
Goodwill | 255.7 | [1],[2],[4] | ' | 474.7 | [5] |
Deferred tax asset - non-current | 53.1 | [4] | ' | ' | |
Other assets | 1.9 | [2],[4] | ' | ' | |
Total assets acquired | 927.3 | [4] | ' | ' | |
Liabilities [Abstract] | ' | ' | ' | ||
Accounts payable | 48 | [4] | ' | ' | |
Accrued expenses and other | 65.6 | [4] | ' | ' | |
Long-term debt | 0.9 | [4] | ' | ' | |
Long-term pension and other benefit plan liabilities | 4.5 | [4] | ' | ' | |
Deferred tax liability | 123.3 | [1],[4] | ' | ' | |
Other long-term liabilities | 20.5 | [2],[4] | ' | ' | |
Total liabilities acquired | 262.8 | [4] | ' | ' | |
Total consideration | 664.5 | [4] | ' | ' | |
Measurement Period Adjustment | ' | ' | ' | ||
Assets [Abstract] | ' | ' | ' | ||
Cash and cash equivalents | 0 | ' | ' | ||
Trade receivables | 0 | ' | ' | ||
Inventories | 0 | ' | ' | ||
Prepaid expenses and other | 0 | ' | ' | ||
Property, plant and equipment | 0 | ' | ' | ||
Intangible assets | 5.4 | [1] | ' | ' | |
Goodwill | -2.4 | [1],[2] | ' | ' | |
Deferred tax asset - non-current | 0 | ' | ' | ||
Other assets | 3.9 | [2] | ' | ' | |
Total assets acquired | 6.9 | ' | ' | ||
Liabilities [Abstract] | ' | ' | ' | ||
Accounts payable | 0 | ' | ' | ||
Accrued expenses and other | 0 | ' | ' | ||
Long-term debt | 0 | ' | ' | ||
Long-term pension and other benefit plan liabilities | 0 | ' | ' | ||
Deferred tax liability | 2.1 | [1] | ' | ' | |
Other long-term liabilities | 4.8 | [2] | ' | ' | |
Total liabilities acquired | 6.9 | ' | ' | ||
Total consideration | $0 | ' | ' | ||
[1] | The Measurement Period Adjustments to intangible assets, deferred tax liability and goodwill in the first quarter of 2014 related to a change in assumptions used to calculate the fair value of an acquired customer relationship intangible asset, which increased the intangible asset by $5.4 million and extended the life of the asset from 10 to 20 years, increased deferred tax liabilities by $2.1 million, and resulted in a net decrease to goodwill of $3.3 million. | ||||
[2] | The Company recorded a $3.9 million income tax adjustment to the beginning tax balance within other assets and a $4.8 million adjustment to other long-term liabilities, resulting in a net increase to goodwill of $0.9 million. | ||||
[3] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. | ||||
[4] | As previously reported in the Company's 2013 Form 10-K | ||||
[5] | As previously reported in the Company's 2013 Form 10-K. |
Business_Combinations_Schedule1
Business Combinations - Schedule of Intangible Assets Acquired by Major Asset Category (Detail) (The Colomer Group Participations, S.L., USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Oct. 09, 2013 |
Business Acquisition [Line Items] | ' |
Purchased Intangible Assets | $298.10 |
Trade Names | ' |
Business Acquisition [Line Items] | ' |
Purchased Intangible Assets | 109.4 |
Customer relationships | ' |
Business Acquisition [Line Items] | ' |
Purchased Intangible Assets | 62.4 |
Licenses | ' |
Business Acquisition [Line Items] | ' |
Purchased Intangible Assets | 4.1 |
Weighted Average Useful Life (in years) | '10 years |
Internally developed IP | ' |
Business Acquisition [Line Items] | ' |
Purchased Intangible Assets | 13.6 |
Weighted Average Useful Life (in years) | '10 years |
Minimum | Trade Names | ' |
Business Acquisition [Line Items] | ' |
Weighted Average Useful Life (in years) | '5 years |
Minimum | Customer relationships | ' |
Business Acquisition [Line Items] | ' |
Weighted Average Useful Life (in years) | '15 years |
Maximum | Trade Names | ' |
Business Acquisition [Line Items] | ' |
Weighted Average Useful Life (in years) | '20 years |
Maximum | Customer relationships | ' |
Business Acquisition [Line Items] | ' |
Weighted Average Useful Life (in years) | '20 years |
Trade Names | ' |
Business Acquisition [Line Items] | ' |
Indefinite-lived intangible assets | $108.60 |
Business_CombinationsPro_Forma
Business Combinations-Pro Forma Information (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
The Colomer Group Participations, S.L. | The Colomer Group Participations, S.L. | Acquisition and Integration Costs | |||
The Colomer Group Participations, S.L. | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Net sales | ' | ' | $473.90 | $1,408.10 | ' |
Income from continuing operations, before income taxes | ' | ' | 45.3 | 100.4 | ' |
Depreciation and amortization | 76.4 | 51.4 | 4.6 | 13.8 | ' |
Goodwill, Impairment Loss | ' | ' | 9 | ' | 9 |
ProForma Acquisition and Integration Costs | ' | ' | 5.9 | 6.7 | 0.8 |
Debt Facility Fees | ' | ' | 3.6 | ' | 3.6 |
Interest Expense and Debt Issuance Cost | ' | ' | $6.20 | $18.50 | ' |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | ||
Accrued Expenses and Other | Other long-term liabilities | Integration Program | Integration Program | Integration Program | Integration Program | December 2013 Program | December 2013 Program | December 2013 Program | December 2013 Program | December 2013 Program | December 2013 Program | December 2013 Program | December 2013 Program | December 2013 Program | December 2013 Program | December 2013 Program | 2012 Restructuring Program | 2012 Restructuring Program | 2012 Restructuring Program | 2012 Restructuring Program | 2012 Restructuring Program | 2012 Restructuring Program | Other | Other | Other | Other | Other | Other | Other | Other | Employee Severance and Other Personnel Benefits | Employee Severance and Other Personnel Benefits | Employee Severance and Other Personnel Benefits | Employee Severance and Other Personnel Benefits | Employee Severance and Other Personnel Benefits | Employee Severance and Other Personnel Benefits | Employee Severance and Other Personnel Benefits | Employee Severance and Other Personnel Benefits | Gain on Sale of Equipment | Maximum | Consumer Segment | Professional | The Colomer Group Participations, S.L. | The Colomer Group Participations, S.L. | ||||||||
Total Restructuring Charges | Cost of Sales | Other Charges | job_position | job_position | Total Restructuring Charges | Total Restructuring Charges | Allowances and Returns | Allowances and Returns | Cost of Sales | Cost of Sales | Other Charges | Other Charges | Total Restructuring Charges | Cost of Sales | Other Charges | Integration Program | Integration Program | December 2013 Program | December 2013 Program | 2012 Restructuring Program | 2012 Restructuring Program | 2014 Other Immaterial Actions | 2014 Other Immaterial Actions | Integration Program | Integration Program | December 2013 Program | December 2013 Program | 2012 Restructuring Program | 2012 Restructuring Program | 2014 Other Immaterial Actions | 2014 Other Immaterial Actions | 2014 Other Immaterial Actions | Integration Program | Integration Program | ||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Capital expenditure and related non-restructuring costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50 | ' | ' | ' | ' | ||
Integration related costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.9 | 12.5 | ||
Expected Acquisition and integration expected related capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ||
Acquisition and integration related capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.3 | ' | ||
Expected acquisition and integration related capital expenditures (current year) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.9 | ' | ||
Restructuring charges and other, net | 0.8 | -1.5 | 18.1 | 1.8 | ' | ' | ' | 17.1 | 16.4 | 0.2 | [1] | 0.5 | [2] | ' | -2.5 | 21.4 | -0.7 | 9.6 | -0.9 | 7.4 | -0.9 | 4 | 0 | 0.4 | ' | 2.2 | ' | 1.8 | 0.2 | 0.2 | 1.2 | ' | -0.2 | 0.5 | ' | ' | 1.9 | ' | 15.2 | ' | -0.5 | 9.1 | ' | ' | 2.2 | ' | -0.3 | ' | 7.3 | 9.8 | ' | ' |
Restructuring and Related Cost, Incurred Cost | ' | ' | 17.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.2 | ' | -0.2 | ' | 0 | ' | 0 | ' | 15.2 | ' | -0.5 | ' | 0 | ' | 2.2 | ' | ' | ' | ' | ' | ' | ' | ||
Total expected net charges | ' | ' | ' | ' | ' | ' | ' | 26 | 20.5 | 2 | [1] | 3.5 | [2] | ' | 18.9 | ' | 8.9 | ' | 6.5 | ' | 3.1 | ' | 0.4 | ' | ' | ' | ' | ' | ' | ' | 3 | ' | 0.3 | ' | ' | ' | ' | ' | 17.5 | ' | 8.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and related costs expected for remainder of year | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total expected restructuring cash payments | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | 17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Payments for restructuring | ' | ' | 18.7 | ' | ' | ' | ' | 6.4 | ' | ' | ' | ' | 15.1 | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | 3.2 | ' | 21.1 | ' | ' | ' | 1 | ' | 0.3 | ' | 0.8 | ' | 0 | ' | 5.1 | ' | 7.3 | ' | 2.4 | ' | 1.8 | ' | ' | ' | ' | ' | ' | ' | ||
Restructuring payments expected In remainder of current year | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of positions eliminated (job positions) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of positions eliminated related to employees retained indirectly through a third party (job positions) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 940 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Restructuring and related costs incurred to date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.9 | ' | 8.9 | ' | 6.5 | ' | 3.1 | ' | 0.4 | ' | ' | ' | 27.2 | ' | ' | ' | ' | ' | 0.3 | ' | ' | ' | ' | ' | ' | ' | 8.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Balance End of Year | 12.7 | ' | 12.7 | ' | 13.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | 0 | 0 | 0.5 | 0.7 | 1.5 | 0 | 0 | 10.1 | 0 | 1.2 | 9 | 0.2 | 2.7 | 0.3 | 0 | ' | ' | ' | ' | ' | ' | ||
Restructuring reserve within accrued expenses and other | 12.2 | ' | 12.2 | ' | 13.7 | 12.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Restructuring reserve within other long-term liabilities | ' | ' | ' | ' | ' | ' | $0.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Inventory write-offs and other manufacturing-related costs are recorded within cost of sales within the Company’s Consolidated Statements of Income and Comprehensive Income. | |||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Other charges are recorded within SG&A expenses within the Company’s Consolidated Statements of Income and Comprehensive Income. |
Restructuring_Charges_Schedule
Restructuring Charges - Schedule of Restructuring Activities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |||
Integration Program | Integration Program | Integration Program | Integration Program | Integration Program | December 2013 Program | December 2013 Program | December 2013 Program | December 2013 Program | December 2013 Program | December 2013 Program | December 2013 Program | December 2013 Program | 2012 Restructuring Program | 2012 Restructuring Program | 2012 Restructuring Program | 2012 Restructuring Program | 2012 Restructuring Program | 2012 Restructuring Program | 2012 Restructuring Program | 2014 Other Immaterial Actions | 2014 Other Immaterial Actions | 2014 Other Immaterial Actions | 2014 Other Immaterial Actions | 2014 Other Immaterial Actions | Total Restructuring Charges | Total Restructuring Charges | Total Restructuring Charges | Total Restructuring Charges | Allowances and Returns | Allowances and Returns | Cost of Sales | Cost of Sales | Cost of Sales | Cost of Sales | Other Charges | Other Charges | Other Charges | Other Charges | Discontinued Operations | Discontinued Operations | Continuing Operations [Member] | |||||||||
Employee Severance and Other Personnel Benefits | Employee Severance and Other Personnel Benefits | Other | Other | Employee Severance and Other Personnel Benefits | Employee Severance and Other Personnel Benefits | Employee Severance and Other Personnel Benefits | Other | Other | Other | Employee Severance and Other Personnel Benefits | Employee Severance and Other Personnel Benefits | Other | Other | Employee Severance and Other Personnel Benefits | Employee Severance and Other Personnel Benefits | Other | Other | Gain on Sale of Equipment | Integration Program | December 2013 Program | December 2013 Program | 2012 Restructuring Program | December 2013 Program | December 2013 Program | Integration Program | December 2013 Program | December 2013 Program | 2012 Restructuring Program | Integration Program | December 2013 Program | December 2013 Program | 2012 Restructuring Program | Operations in China | Operations in China | December 2013 Program | |||||||||||||||
December 2013 Program | ||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Balance Beginning of Year | ' | ' | $13.70 | ' | $12.70 | ' | $0 | $10.10 | $0 | $0.20 | ' | ' | $9 | ' | $1.20 | $0.50 | ' | $0 | ' | ' | ' | $2.70 | $0.20 | $1.50 | $0.70 | $0 | $0.30 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Restructuring and Related Cost, Incurred Cost | ' | ' | 17.9 | ' | ' | ' | 15.2 | ' | 1.2 | ' | ' | ' | -0.5 | ' | ' | -0.2 | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | 2.2 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Restructuring charges and other, net | 0.8 | -1.5 | 18.1 | 1.8 | ' | 17.1 | 15.2 | ' | 1.2 | ' | -2.5 | 21.4 | -0.5 | 9.1 | ' | -0.2 | 0.5 | ' | ' | 2.2 | ' | ' | ' | ' | ' | 2.2 | ' | 1.9 | ' | -0.3 | 16.4 | -0.7 | 9.6 | 1.8 | -0.9 | 7.4 | 0.2 | [1] | -0.9 | 4 | 0.2 | 0.5 | [2] | 0 | 0.4 | 0.2 | ' | 2.3 | 0.2 | |
Restructuring charges and other, net included in discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | [3] | ' | ' | ||
Foreign Currency Translation | ' | ' | -0.4 | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | -0.2 | ' | ' | 0 | ' | ' | ' | ' | ' | -0.1 | ' | 0 | ' | -0.1 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Cash utilized, net | ' | ' | -18.7 | ' | ' | -6.4 | -5.1 | ' | -1 | ' | -15.1 | -0.1 | -7.3 | ' | ' | -0.3 | ' | ' | -3.2 | ' | -21.1 | -2.4 | ' | -0.8 | ' | -1.8 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Non utilized, net | ' | ' | 0.2 | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | 0.2 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Restructuring and related costs incurred to date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.9 | ' | 8.6 | ' | ' | 0.3 | ' | ' | ' | ' | 27.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.9 | ' | ' | 6.5 | ' | ' | 3.1 | ' | ' | ' | 0.4 | ' | ' | ' | ' | ' | |||
Total expected net charges | ' | ' | ' | ' | ' | $26 | $17.50 | ' | $3 | ' | $18.90 | ' | $8.60 | ' | ' | $0.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20.50 | $8.90 | ' | ' | $6.50 | ' | $2 | [1] | $3.10 | ' | ' | $3.50 | [2] | $0.40 | ' | ' | ' | ' | ' | |
[1] | Inventory write-offs and other manufacturing-related costs are recorded within cost of sales within the Company’s Consolidated Statements of Income and Comprehensive Income. | |||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Other charges are recorded within SG&A expenses within the Company’s Consolidated Statements of Income and Comprehensive Income. | |||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Refer to Note 4, "Discontinued Operations" for additional information regarding the Company's exit of its business operations in China. |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||
Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ||
Income (loss) from discontinued operations, net of taxes | $0.40 | ($1.50) | $0.90 | ($6.30) | ' | ||
Operations in China | ' | ' | ' | ' | ' | ||
Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ||
Net sales | 0 | [1] | 6.3 | 2.6 | [1] | 17.7 | ' |
Income (loss) from discontinued operations, before taxes | 0.4 | -1.6 | 1.1 | -6.7 | ' | ||
Provision for income taxes | 0 | 0.1 | 0.2 | 0.4 | ' | ||
Income (loss) from discontinued operations, net of taxes | 0.4 | -1.5 | 0.9 | -6.3 | ' | ||
Balance Sheet Disclosures [Abstract] | ' | ' | ' | ' | ' | ||
Cash and cash equivalents | 3.4 | ' | 3.4 | ' | 0.9 | ||
Trade receivables, net | 0.2 | ' | 0.2 | ' | 1.9 | ||
Inventories | 0 | ' | 0 | ' | 0 | ||
Other current assets | 0.1 | ' | 0.1 | ' | 0 | ||
Total current assets | 3.7 | ' | 3.7 | ' | 2.8 | ||
Total assets | 3.7 | ' | 3.7 | ' | 2.8 | ||
Accounts payable | 1.5 | ' | 1.5 | ' | 4.7 | ||
Accrued expenses and other | 4 | ' | 4 | ' | 27.6 | ||
Total current liabilities | 5.5 | ' | 5.5 | ' | 32.3 | ||
Other long-term liabilities | 0 | ' | 0 | ' | 2.8 | ||
Total liabilities | $5.50 | ' | $5.50 | ' | $35.10 | ||
[1] | Net sales during the first nine months of 2014 primarily represent favorable adjustments to sales returns related to the Company's exit of its China operations. |
Recovered_Sheet1
Pension and Post-Retirement Benefits - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Net periodic benefit costs | ($1.40) | ($0.10) | ($4) | ($0.30) | ($0.40) |
Defined Benefit Plan Expected Net Periodic Benefit Cost In Current Fiscal Year | ' | ' | -5 | ' | ' |
Expected contributions to benefit plans | ' | ' | 20 | ' | ' |
Cost of Sales | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Net periodic benefit costs | -1.2 | -0.6 | -3 | -1.5 | ' |
SG&A Expenses | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Net periodic benefit costs | -0.2 | 0.6 | -0.5 | 1.8 | ' |
Inventories | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Net periodic benefit costs | 0 | -0.1 | -0.5 | -0.6 | ' |
Pension Plans | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Net periodic benefit costs | -1.6 | -0.3 | -4.6 | -1 | ' |
Contributions made to benefit plans | 4.5 | 0.2 | 15.8 | ' | ' |
Other Post-Retirement Benefit Plans | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Net periodic benefit costs | 0.2 | 0.2 | 0.6 | 0.7 | ' |
Contributions made to benefit plans | ' | ' | $0.60 | ' | ' |
Recovered_Sheet2
Pension and Post-Retirement Benefits - Components of Net Periodic Benefit Costs (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Net periodic benefit (income) costs: | ' | ' | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | ($1.40) | ($0.10) | ($4) | ($0.30) | ($0.40) |
Pension Plans | ' | ' | ' | ' | ' |
Net periodic benefit (income) costs: | ' | ' | ' | ' | ' |
Service cost | 0.2 | 0.3 | 0.6 | 0.7 | ' |
Interest cost | 7.5 | 6.9 | 22.6 | 20.7 | ' |
Expected return on plan assets | -10.3 | -9.6 | -31 | -28.7 | ' |
Amortization of actuarial loss | 1.1 | 2.1 | 3.3 | 6.4 | ' |
Defined Benefit Plan Net Periodic Benefit Cost Before Portion Allocated To Affiliate | -1.5 | -0.3 | -4.5 | -0.9 | ' |
Defined Benefit Plan Net Periodic Benefit Cost Portion Allocated To Affiliate | -0.1 | 0 | -0.1 | -0.1 | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | -1.6 | -0.3 | -4.6 | -1 | ' |
Other Post-Retirement Benefit Plans | ' | ' | ' | ' | ' |
Net periodic benefit (income) costs: | ' | ' | ' | ' | ' |
Service cost | 0 | 0 | 0 | 0 | ' |
Interest cost | 0.2 | 0.1 | 0.5 | 0.4 | ' |
Expected return on plan assets | 0 | 0 | 0 | 0 | ' |
Amortization of actuarial loss | 0 | 0.1 | 0.1 | 0.3 | ' |
Defined Benefit Plan Net Periodic Benefit Cost Before Portion Allocated To Affiliate | 0.2 | 0.2 | 0.6 | 0.7 | ' |
Defined Benefit Plan Net Periodic Benefit Cost Portion Allocated To Affiliate | 0 | 0 | 0 | 0 | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | $0.20 | $0.20 | $0.60 | $0.70 | ' |
Pension_and_PostRetirement_Ben2
Pension and Post-Retirement Benefits - Classification of Net Periodic Pension (Income) Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' |
Net periodic benefit costs | ($1.40) | ($0.10) | ($4) | ($0.30) | ($0.40) |
Cost of Sales | ' | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' |
Net periodic benefit costs | -1.2 | -0.6 | -3 | -1.5 | ' |
SG&A Expenses | ' | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' |
Net periodic benefit costs | -0.2 | 0.6 | -0.5 | 1.8 | ' |
Inventories | ' | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' |
Net periodic benefit costs | $0 | ($0.10) | ($0.50) | ($0.60) | ' |
SEGMENT_DATA_AND_RELATED_INFOR2
SEGMENT DATA AND RELATED INFORMATION- Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of reportable operating segments (segments) | 2 |
Outside of the United States | ' |
Segment Reporting Information [Line Items] | ' |
Number of countries in which entity operates (countries) | 24 |
SEGMENT_DATA_AND_RELATED_INFOR3
SEGMENT DATA AND RELATED INFORMATION-Income from continuing operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net sales | $472.30 | $333.10 | $1,440 | $1,003.70 | ||
Operating Income (Loss) | 56.7 | 44.3 | 166.6 | 161.3 | ||
Depreciation and amortization | ' | ' | 76.4 | 51.4 | ||
Interest expense | 20.6 | 17.8 | 63.9 | 55.5 | ||
Amortization of debt issuance costs | 1.3 | 0.8 | 4.1 | 2.2 | ||
Loss on early extinguishment of debt | 0 | 0.2 | 2 | 28.1 | ||
Foreign currency losses (gains), net | 9.3 | 0.4 | 17.9 | 3.2 | ||
Miscellaneous, net | 0.1 | 0.6 | 0.2 | 0.8 | ||
Income (loss) from continuing operations before income taxes | 25.4 | 24.5 | 78.5 | 71.5 | ||
Non-recurring items: | ' | ' | ' | ' | ||
Restructuring and related charges | 0.8 | -1.5 | 18.1 | 1.8 | ||
Acquisition and integration costs | 0.9 | 5.9 | 5.4 | 6.3 | ||
Corporate Segment | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Unallocated corporate expenses | 15.8 | 12.7 | 47 | 40.9 | ||
Segment Reconciling Items | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Depreciation and amortization | 25.6 | 17.4 | 76.4 | 51.4 | ||
Restricted Stock or Unit Expense | 3.2 | 0 | 3.7 | 0 | ||
Non-recurring items: | ' | ' | ' | ' | ||
Restructuring and related charges | 1.1 | -1.4 | 18.8 | 2.2 | ||
Acquisition and integration costs | 0.9 | 5.9 | 5.4 | 6.3 | ||
Inventory purchase accounting adjustment, cost of sales | 0 | 0 | 2.6 | 0 | ||
Gain from insurance proceeds related to Venezuela fire | 0 | 0 | 0 | -26.4 | ||
Demolition Costs | 0 | 0 | 0 | 4.5 | ||
Operating Segments | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net sales | 472.3 | 333.1 | 1,440 | 1,003.70 | ||
Operating Income (Loss) | 103.3 | 78.9 | 320.5 | 240.2 | ||
Operating Segments | Consumer | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net sales | 348.2 | [1] | 333.1 | 1,055 | [1] | 1,003.70 |
Operating Income (Loss) | 78.1 | [1] | 78.9 | 232 | [1] | 240.2 |
Operating Segments | Professional | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Net sales | 124.1 | 0 | 385 | 0 | ||
Operating Income (Loss) | $25.20 | $0 | $88.50 | $0 | ||
[1] | Consumer segment net sales and segment profit include the results of retail brands acquired in the Colomer Acquisition, which had previously been included in the Professional segment. |
SEGMENT_DATA_AND_RELATED_INFOR4
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales and Long-Lived Assets by Geographic Area (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Net sales | $472.30 | $333.10 | $1,440 | $1,003.70 | ' |
Long-Lived Assets, net | 1,129.10 | ' | 1,129.10 | ' | 1,152.10 |
United States | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Net sales | 243.8 | 185.8 | 749.2 | 581.8 | ' |
Percentage of net sales by geographic location (percent) | 52.00% | 56.00% | 52.00% | 58.00% | ' |
Long-Lived Assets, net | 847.6 | ' | 847.6 | ' | 837 |
Percentage of long lived assets, net by geographic location (percent) | 75.00% | ' | 75.00% | ' | 73.00% |
Outside of the United States | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Net sales | 228.5 | 147.3 | 690.8 | 421.9 | ' |
Percentage of net sales by geographic location (percent) | 48.00% | 44.00% | 48.00% | 42.00% | ' |
Long-Lived Assets, net | $281.50 | ' | $281.50 | ' | $315.10 |
Percentage of long lived assets, net by geographic location (percent) | 25.00% | ' | 25.00% | ' | 27.00% |
SEGMENT_DATA_AND_RELATED_INFOR5
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales by Classes of Similar Products (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net sales | $472.30 | $333.10 | $1,440 | $1,003.70 |
Color cosmetics | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net sales | 242.6 | 212.3 | 763.5 | 662.1 |
Percentage of net sales by classes of similar products (percent) | 51.00% | 64.00% | 53.00% | 66.00% |
Hair care | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net sales | 132.8 | 43.1 | 405.5 | 131 |
Percentage of net sales by classes of similar products (percent) | 28.00% | 13.00% | 28.00% | 13.00% |
Beauty care and fragrance | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net sales | $96.90 | $77.70 | $271 | $210.60 |
Percentage of net sales by classes of similar products (percent) | 21.00% | 23.00% | 19.00% | 21.00% |
Inventories_Components_of_Inve
Inventories - Components of Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Inventory Disclosure [Abstract] | ' | ' | |
Raw materials and supplies | $53.70 | $50.80 | |
Work-in-process | 13.4 | 12.8 | |
Finished goods | 120.1 | 111.4 | |
Inventories | $187.20 | $175 | [1] |
[1] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. |
Recovered_Sheet3
Goodwill and Intangible Assets, Net - Changes in Balance of Goodwill (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Oct. 09, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Oct. 09, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Oct. 09, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |||||||
Consumer | Professional | Before Measurement Period Adjustment | Before Measurement Period Adjustment | Before Measurement Period Adjustment | Before Measurement Period Adjustment | Measurement Period Adjustment | Measurement Period Adjustment | Measurement Period Adjustment | Measurement Period Adjustment | ||||||||||
Consumer | Professional | Consumer | Professional | ||||||||||||||||
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Beginning Balance | $472.30 | [1] | $253.30 | [2],[3] | $217.90 | $254.40 | $474.70 | [4] | $255.70 | [2],[3],[5] | $217.90 | [4] | $256.80 | [4] | ' | ($2.40) | [2],[3] | ' | ' |
Goodwill, Purchase Accounting Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | -2.4 | ' | 0 | -2.4 | |||||||
Goodwill, Translation Adjustments | -5.5 | ' | 0 | -5.5 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Ending Balance | $466.80 | $253.30 | [2],[3] | $217.90 | $248.90 | $474.70 | [4] | $255.70 | [2],[3],[5] | $217.90 | [4] | $256.80 | [4] | ' | ($2.40) | [2],[3] | ' | ' | |
[1] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. | ||||||||||||||||||
[2] | The Company recorded a $3.9 million income tax adjustment to the beginning tax balance within other assets and a $4.8 million adjustment to other long-term liabilities, resulting in a net increase to goodwill of $0.9 million. | ||||||||||||||||||
[3] | The Measurement Period Adjustments to intangible assets, deferred tax liability and goodwill in the first quarter of 2014 related to a change in assumptions used to calculate the fair value of an acquired customer relationship intangible asset, which increased the intangible asset by $5.4 million and extended the life of the asset from 10 to 20 years, increased deferred tax liabilities by $2.1 million, and resulted in a net decrease to goodwill of $3.3 million. | ||||||||||||||||||
[4] | As previously reported in the Company's 2013 Form 10-K. | ||||||||||||||||||
[5] | As previously reported in the Company's 2013 Form 10-K |
Recovered_Sheet4
Goodwill and Intangible Assets, Net - Summary of Intangible Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross Carrying Amount | $266.70 | $269.40 | |
Accumulated Amortization | -34.6 | -19 | |
Total | 232.1 | 250.4 | |
Indefinite-lived intangible assets: | 104 | 109.7 | |
Total intangible assets, gross | 370.7 | 379.1 | |
Intangible assets, net | 336.1 | 360.1 | [1] |
Trademarks and Licenses | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross Carrying Amount | 140.6 | 142.1 | |
Accumulated Amortization | -20.8 | -11 | |
Total | 119.8 | 131.1 | |
Customer relationships | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross Carrying Amount | 110 | 111.5 | [2] |
Accumulated Amortization | -11.8 | -6.7 | [2] |
Total | 98.2 | 104.8 | [2] |
Patents and Internally-Developed IP | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Gross Carrying Amount | 16.1 | 15.8 | |
Accumulated Amortization | -2 | -1.3 | |
Total | 14.1 | 14.5 | |
Trade Names | ' | ' | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | |
Indefinite-lived intangible assets: | $104 | $109.70 | |
[1] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. | ||
[2] | During the first quarter of 2014, the Company recorded Measurement Period Adjustments to customer relationships acquired in the Colomer Acquisition on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. |
Accrued_Expenses_and_Other_Com
Accrued Expenses and Other - Components of Accrued Expenses and Other (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Payables and Accruals [Abstract] | ' | ' | |
Sales returns and allowances | $61.30 | $91.50 | |
Compensation and related benefits | 71.2 | 74.5 | |
Advertising and promotional costs | 48.1 | 42.9 | |
Taxes | 21 | 28.4 | |
Interest | 3.8 | 13.8 | |
Restructuring reserve | 12.2 | 13.7 | |
Other | 43.9 | 48.8 | |
Accrued expenses and other | $261.50 | $313.60 | [1] |
[1] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. |
LongTerm_Debt_Components_of_Lo
Long-Term Debt - Components of Long-Term Debt (Detail) (USD $) | Sep. 30, 2014 | Apr. 30, 2014 | Dec. 31, 2013 | |||
In Millions, unless otherwise specified | ||||||
Debt Instrument [Line Items] | ' | ' | ' | |||
Total long-term debt, net of discounts | $1,865.30 | ' | $1,927.70 | |||
Less current portion | -7 | ' | -65.4 | [1] | ||
Long-term debt | 1,858.30 | ' | 1,862.30 | [1] | ||
Amended Revolving Credit Facility | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | |||
Revolving credit facility | 0 | [2] | ' | 0 | [2] | |
5 3/4% Senior Notes Due 2021 | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | |||
Senior Secured Notes, net of discounts | 500 | [3] | ' | 500 | [3] | |
Amended and Restated Senior Subordinated Term Loan Due 2014 | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | |||
Senior subordinated term loan | 0 | [4] | 58.4 | [4] | 58.4 | [4] |
Spanish Government Loan Due 2025 | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | |||
Other Long-term Debt | 0.7 | [5] | ' | 0.9 | [5] | |
Amended Term Loan Facility | Acquisition Term Loan | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | |||
Other Long-term Debt | 693.3 | [6] | ' | 698.3 | [6] | |
Amended Term Loan Facility | 2011 Term Loan | ' | ' | ' | |||
Debt Instrument [Line Items] | ' | ' | ' | |||
Other Long-term Debt | $671.30 | [6] | ' | $670.10 | [6] | |
[1] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. | |||||
[2] | See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding Products Corporation's existing $175.0 million asset-based, multi-currency revolving credit facility (the "Amended Revolving Credit Facility"). | |||||
[3] | See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding Products Corporation's 5¾% Senior Notes that mature on February 15, 2021. | |||||
[4] | Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding the $58.4 million non-contributed loan portion of the Amended and Restated Senior Subordinated Term Loan Agreement (the "Non-Contributed Loan"), which Products Corporation optionally prepaid in full on May 1, 2014. | |||||
[5] | See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding the euro-denominated loan payable to the Spanish government which matures on June 30, 2025. | |||||
[6] | In February 2014, Products Corporation entered into an amendment (the “February 2014 Term Loan Amendmentâ€) to its amended term loan agreement, which is comprised of (i) the $675.0 million term loan due November 19, 2017 (the "2011 Term Loan") and (ii) the $700.0 million term loan due October 8, 2019 (the "Acquisition Term Loan"), which had $694.8 million in aggregate principal balance outstanding as of September 30, 2014 (together, the "Amended Term Loan Agreement"). The February 2014 Term Loan Amendment reduced the interest rates applicable to the 2011 Term Loan. See "Recent Debt Transactions - February 2014 Term Loan Amendment" below for further discussion. Additionally, see Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for additional details regarding Products Corporation's Amended Term Loan Agreement. |
LongTerm_Debt_Components_of_Lo1
Long-Term Debt - Components of Long-Term Debt (Parenthetical) (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 09, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 30, 2014 | Dec. 31, 2013 | |||
In Millions, unless otherwise specified | 2011 Term Loan | Acquisition Term Loan | Acquisition Term Loan | Amended Revolving Credit Facility | 5 3/4% Senior Notes Due 2021 | Amended and Restated Senior Subordinated Term Loan Due 2014 | Amended and Restated Senior Subordinated Term Loan Due 2014 | Amended and Restated Senior Subordinated Term Loan Due 2014 | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | |||
Aggregate principal amount outstanding | $675 | $694.80 | $700 | ' | ' | ' | ' | ' | |||
Maximum borrowings available under credit facility | ' | ' | ' | 175 | ' | ' | ' | ' | |||
Senior subordinated term loan | ' | ' | ' | ' | ' | $0 | [1] | $58.40 | [1] | $58.40 | [1] |
Stated interest rate (percent) | ' | ' | ' | ' | 5.75% | ' | ' | ' | |||
[1] | Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding the $58.4 million non-contributed loan portion of the Amended and Restated Senior Subordinated Term Loan Agreement (the "Non-Contributed Loan"), which Products Corporation optionally prepaid in full on May 1, 2014. |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 2 Months Ended | 5 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Oct. 09, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 27, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |||||
Acquisition Term Loan | Acquisition Term Loan | Amended Revolving Credit Facility | Amended Revolving Credit Facility | 2011 Term Loan | 2011 Term Loan | 2011 Term Loan | Amended and Restated Senior Subordinated Term Loan Due 2014 | Amended and Restated Senior Subordinated Term Loan Due 2014 | Amended and Restated Senior Subordinated Term Loan Due 2014 | February 2014 Term Loan Amendment | |||||||||||
2011 Term Loan | |||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Aggregate principal amount outstanding | ' | ' | ' | ' | ' | $694.80 | $700 | ' | ' | ' | ' | $675 | ' | ' | ' | ' | |||||
Maximum borrowings available under credit facility | ' | ' | ' | ' | ' | ' | ' | 175 | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Senior subordinated term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | 58.4 | [1] | 58.4 | [1] | ' | ||
Basis spread on variable rate (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 2.50% | ' | ' | ' | ' | ' | |||||
Variable rate floor (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 0.75% | ' | ' | ' | ' | ' | |||||
Basis spread on alternative base rate (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 1.50% | ' | ' | ' | ' | ' | |||||
Floor on alternate base rate (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 1.75% | ' | ' | ' | ' | ' | |||||
Premium in connection with repricing transaction (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | |||||
Debt issuance cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | |||||
Write off of deferred debt issuance cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | ' | ' | 0.8 | |||||
Loss on early extinguishment of debt | 0 | 0.2 | 2 | 28.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.9 | |||||
Standby and trade letters of credit for various corporate purposes | 9 | ' | 9 | ' | 9.9 | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revolving credit facility | ' | ' | ' | ' | ' | ' | ' | 0 | [2] | 0 | [2] | ' | ' | ' | ' | ' | ' | ' | |||
Remaining borrowing capacity | ' | ' | ' | ' | ' | ' | ' | $166 | ' | ' | ' | ' | ' | ' | ' | ' | |||||
[1] | Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding the $58.4 million non-contributed loan portion of the Amended and Restated Senior Subordinated Term Loan Agreement (the "Non-Contributed Loan"), which Products Corporation optionally prepaid in full on May 1, 2014. | ||||||||||||||||||||
[2] | See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in the Company's 2013 Form 10-K for certain details regarding Products Corporation's existing $175.0 million asset-based, multi-currency revolving credit facility (the "Amended Revolving Credit Facility"). |
Recovered_Sheet5
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ||||
Beginning Balance | ' | ' | ($149.80) | [1] | ' | |||
Currency translation adjustment, net of tax benefit of $0.4 million | -18.3 | [2] | 1.1 | [2] | -17.1 | [2] | -3.6 | [2] |
Amortization of pension related costs, net of tax | 1.1 | [3],[4] | 2 | [3],[4] | 3.4 | [3],[4],[5] | 5.8 | [3],[4] |
Revaluation of derivative financial instruments, net of tax | 0.6 | [6] | 0 | [6] | -2.3 | [6],[7] | 0 | [6] |
Other comprehensive income (loss) | -16.6 | 3.1 | -16 | [8] | 2.2 | |||
Ending Balance | -165.8 | ' | -165.8 | ' | ||||
Foreign Currency Translation | ' | ' | ' | ' | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ||||
Beginning Balance | ' | ' | 19.2 | ' | ||||
Currency translation adjustment, net of tax benefit of $0.4 million | ' | ' | -17.1 | ' | ||||
Amortization of pension related costs, net of tax | ' | ' | 0 | [5] | ' | |||
Revaluation of derivative financial instruments, net of tax | ' | ' | 0 | [7] | ' | |||
Other comprehensive income (loss) | ' | ' | -17.1 | ' | ||||
Ending Balance | 2.1 | ' | 2.1 | ' | ||||
Actuarial (Loss) Gain on Post-retirement Benefits | ' | ' | ' | ' | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ||||
Beginning Balance | ' | ' | -170.5 | ' | ||||
Currency translation adjustment, net of tax benefit of $0.4 million | ' | ' | 0 | ' | ||||
Amortization of pension related costs, net of tax | ' | ' | 3.4 | [5] | ' | |||
Revaluation of derivative financial instruments, net of tax | ' | ' | 0 | [7] | ' | |||
Other comprehensive income (loss) | ' | ' | 3.4 | ' | ||||
Ending Balance | -167.1 | ' | -167.1 | ' | ||||
Deferred Gain - Hedging | ' | ' | ' | ' | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ||||
Beginning Balance | ' | ' | 1.5 | ' | ||||
Currency translation adjustment, net of tax benefit of $0.4 million | ' | ' | 0 | ' | ||||
Amortization of pension related costs, net of tax | ' | ' | 0 | [5] | ' | |||
Revaluation of derivative financial instruments, net of tax | ' | ' | -2.3 | [7] | ' | |||
Other comprehensive income (loss) | ' | ' | -2.3 | ' | ||||
Ending Balance | ($0.80) | ' | ($0.80) | ' | ||||
[1] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. | |||||||
[2] | Net of tax expense (benefit) of $0.2 million and $0.9 million for the three months ended September 30, 2014 and 2013, respectively, and $(0.4) million and $3.2 million for the nine months ended September 30, 2014 and 2013, respectively. | |||||||
[3] | Net of tax benefit of nil and $(0.2) million for the three months ended September 30, 2014 and 2013, respectively, and nil and $(0.9) million for the nine months ended September 30, 2014 and 2013, respectively. | |||||||
[4] | This other comprehensive income component is included in the computation of net periodic benefit (income) costs. See Note 5, “Pension and Post-Retirement Benefits,†for additional information regarding net periodic benefit (income) costs. | |||||||
[5] | Amount represents the change in accumulated other comprehensive loss as a result of the amortization of unrecognized prior service costs and actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 5, “Pension and Post-retirement Benefits,†for further discussion of the Company’s pension and other post-retirement plans. | |||||||
[6] | Net of tax expense (benefit) of $0.4 million and $(1.4) million for the three and nine months ended September 30, 2014, respectively. | |||||||
[7] | For the nine months ended September 30, 2014, the 2013 Interest Rate Swap (as hereinafter defined) was deemed effective and therefore the changes in fair value related to the 2013 Interest Rate Swap are recorded in other comprehensive income. See Note 13, "Financial Instruments," for further discussion of the 2013 Interest Rate Swap. | |||||||
[8] | See Note 11, “Accumulated Other Comprehensive Loss,†regarding the changes in the accumulated balances for each component of other comprehensive income during the nine months ended September 30, 2014. |
Recovered_Sheet6
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Parentheticals) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Currency translation adjustment, tax | $0.20 | $0.90 | ($0.40) | $3.20 |
Amortization of pension related costs, tax benefit | 0 | -0.2 | 0 | -0.9 |
Revaluation of derivative financial instruments, tax | $0.40 | ' | ($1.40) | ' |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Fair Values of Financial Assets and Liabilities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Level 1 | ' | ' | ||
Assets: | ' | ' | ||
FX Contracts | $0 | [1] | $0 | [1] |
Interest Rate Cash Flow Hedge Asset at Fair Value | ' | 0 | [1] | |
Total assets at fair value | 0 | 0 | ||
Liabilities: | ' | ' | ||
FX Contracts | 0 | [1] | 0 | [1] |
Interest Rate Swap, Liability, Fair Value Disclosure | 0 | [1] | ' | |
Total liabilities at fair value | 0 | 0 | ||
Level 2 | ' | ' | ||
Assets: | ' | ' | ||
FX Contracts | 0.6 | [1] | 1 | [1] |
Interest Rate Cash Flow Hedge Asset at Fair Value | ' | 2.5 | [2] | |
Total assets at fair value | 0.6 | 3.5 | ||
Liabilities: | ' | ' | ||
FX Contracts | 0 | [1] | 0.2 | [1] |
Interest Rate Swap, Liability, Fair Value Disclosure | 1.2 | [2] | ' | |
Total liabilities at fair value | 1.2 | 0.2 | ||
Level 3 | ' | ' | ||
Assets: | ' | ' | ||
FX Contracts | 0 | [1] | 0 | [1] |
Interest Rate Cash Flow Hedge Asset at Fair Value | ' | 0 | [1] | |
Total assets at fair value | 0 | 0 | ||
Liabilities: | ' | ' | ||
FX Contracts | 0 | [1] | 0 | [1] |
Interest Rate Swap, Liability, Fair Value Disclosure | 0 | [1] | ' | |
Total liabilities at fair value | 0 | 0 | ||
Total | ' | ' | ||
Assets: | ' | ' | ||
FX Contracts | 0.6 | [1] | 1 | [1] |
Interest Rate Cash Flow Hedge Asset at Fair Value | ' | 2.5 | [2] | |
Total assets at fair value | 0.6 | 3.5 | ||
Liabilities: | ' | ' | ||
FX Contracts | 0 | [1] | 0.2 | [1] |
Interest Rate Swap, Liability, Fair Value Disclosure | 1.2 | [2] | ' | |
Total liabilities at fair value | $1.20 | $0.20 | ||
[1] | The fair value of the Company’s foreign currency forward exchange contracts ("FX Contracts") was measured based on observable market transactions of spot and forward rates on the respective dates. See Note 13, “Financial Instruments.†| |||
[2] | The fair value of the Company's 2013 Interest Rate Swap was measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve on the respective dates. See Note 13, “Financial Instruments.†|
Fair_Value_Measurements_Schedu1
Fair Value Measurements - Schedule of Fair Values of Financial Liabilities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Level 1 | ' | ' |
Liabilities: | ' | ' |
Long-term debt, including current portion | $0 | $0 |
Level 2 | ' | ' |
Liabilities: | ' | ' |
Long-term debt, including current portion | 1,837.30 | 1,931.90 |
Level 3 | ' | ' |
Liabilities: | ' | ' |
Long-term debt, including current portion | 0 | 0 |
Total | ' | ' |
Liabilities: | ' | ' |
Long-term debt, including current portion | 1,837.30 | 1,931.90 |
Carrying Value | ' | ' |
Liabilities: | ' | ' |
Long-term debt, including current portion | $1,865.30 | $1,927.70 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | Standby Letters Of Credit Which Support Products Corporations Self Insurance Programs | Standby Letters Of Credit Which Support Products Corporations Self Insurance Programs | Foreign exchange contracts | Foreign exchange contracts | Interest Rate Swap | Total | Total | Deferred Gain - Hedging | Deferred Gain - Hedging | |||
Fair Value Measurements Of Financial Instruments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Standby and trade letters of credit for various corporate purposes | $9 | $9.90 | $7.70 | $8.10 | ' | ' | ' | ' | ' | ' | ' | |
Derivative, notional amount | ' | ' | ' | ' | 19.8 | 52.9 | 400 | ' | ' | ' | ' | |
Term of contract | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | |
Floor interest rate (percent) | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | |
Fixed interest rate (percent) | ' | ' | ' | ' | ' | ' | 2.07% | ' | ' | ' | ' | |
Fixed interest rate on debt (percent) | ' | ' | ' | ' | ' | ' | 5.07% | ' | ' | ' | ' | |
Accumulated other comprehensive loss | -165.8 | -149.8 | [1] | ' | ' | ' | ' | ' | ' | ' | -0.8 | 1.5 |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | ' | ' | ' | ' | ' | ' | 0.6 | ' | ' | ' | ' | |
Fair value of assets | ' | ' | ' | ' | ' | ' | ' | $0.60 | $3.50 | ' | ' | |
[1] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. |
Financial_Instruments_Fair_Val
Financial Instruments - Fair Value of Derivative Financial Instruments in Consolidated Balance Sheet (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Interest Rate Swap | Designated as Hedging Instrument | Other assets | ' | ' | ||
Derivative Instruments [Abstract] | ' | ' | ||
Fair value of gross derivative asset | $0 | [1] | $2.50 | [1] |
Interest Rate Swap | Designated as Hedging Instrument | Other Noncurrent Liabilities | ' | ' | ||
Derivative Instruments [Abstract] | ' | ' | ||
Fair value of gross liabilities | 0.2 | [1] | 0 | [1] |
Interest Rate Swap | Designated as Hedging Instrument | Prepaid expenses and other | ' | ' | ||
Derivative Instruments [Abstract] | ' | ' | ||
Fair value of gross derivative asset | 0 | [1] | 0 | [1] |
Interest Rate Swap | Designated as Hedging Instrument | Accrued Expenses | ' | ' | ||
Derivative Instruments [Abstract] | ' | ' | ||
Fair value of gross liabilities | 1 | [1] | 0 | [1] |
Foreign exchange contracts | Not Designated as Hedging Instrument | Prepaid expenses and other | ' | ' | ||
Derivative Instruments [Abstract] | ' | ' | ||
Fair value of gross derivative asset | 0.6 | [2] | 1 | [2] |
Foreign exchange contracts | Not Designated as Hedging Instrument | Accrued Expenses | ' | ' | ||
Derivative Instruments [Abstract] | ' | ' | ||
Fair value of gross liabilities | $0 | [2] | $0.20 | [2] |
[1] | The fair values of the 2013 Interest Rate Swap at September 30, 2014 and December 31, 2013 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at September 30, 2014 and December 31, 2013, respectively. | |||
[2] | The fair values of the FX Contracts at September 30, 2014 and December 31, 2013 were measured based on observable market transactions of spot and forward rates at September 30, 2014 and December 31, 2013, respectively. |
Financial_Instruments_Effects_
Financial Instruments - Effects of Derivative Financial Instruments on Income and Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Revaluation of derivative financial instruments, tax | $0.40 | ' | ($1.40) | ' |
Foreign exchange contracts | Not Designated as Hedging Instrument | Foreign Currency Gain (Loss) | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Net Income | 1.5 | -1 | 0.2 | 1.3 |
Interest Rate Swap | Designated as Hedging Instrument | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | $0.60 | $0 | ($2.30) | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Provision for income taxes | $9.60 | $13 | $36.60 | $32.40 |
Increase in provision for income taxes | ($3.40) | ' | $4.20 | ' |
Federal statutory effective tax rate (percent) | 35.00% | ' | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' | ' |
Reimbursement Agreements termination period by either party | '90 days | ' | ' |
Insurance Program Renewal Period | '5 years | ' | ' |
Insurance program renewal term period | 'January 31, 2012 through January 31, 2017 | ' | ' |
Reimbursement Agreement | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Reimbursements from (to) related party | $3.80 | $6.10 | ' |
Due from Related Parties | $0 | ' | $0 |
GUARANTOR_FINANCIAL_INFORMATIO2
GUARANTOR FINANCIAL INFORMATION Balance Sheet (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Oct. 09, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | |||||||
Assets: | ' | ' | ' | ' | ' | ||
Cash and cash equivalents | $178.40 | $244.10 | [1] | ' | $139.30 | $116.30 | |
Trade receivables, less allowances for doubtful accounts | 256 | 253.5 | [1] | ' | ' | ' | |
Inventories | 187.2 | 175 | [1] | ' | ' | ' | |
Deferred income taxes – current | 61.8 | 65.1 | [1] | ' | ' | ' | |
Prepaid expenses and other | 61.5 | 61.4 | [1] | ' | ' | ' | |
Property, plant and equipment, net | 209.1 | 195.9 | [1] | ' | ' | ' | |
Deferred income taxes – noncurrent | 21.6 | 50.9 | [1] | ' | ' | ' | |
Goodwill | 466.8 | 472.3 | [1] | 253.3 | [2],[3] | ' | ' |
Intangible assets, net | 336.1 | 360.1 | [1] | ' | ' | ' | |
Other assets | 117.1 | 123.8 | [1] | ' | ' | ' | |
Total assets | 1,997.40 | 2,096.80 | [1] | ' | ' | ' | |
Liabilities and Equity [Abstract] | ' | ' | ' | ' | ' | ||
Short-term borrowings | 7.9 | 7.9 | [1] | ' | ' | ' | |
Current portion of long-term debt | 7 | 65.4 | [1] | ' | ' | ' | |
Accounts payable | 167.7 | 165.7 | [1] | ' | ' | ' | |
Accrued expenses and other | 261.5 | 313.6 | [1] | ' | ' | ' | |
Long-term debt | 1,858.30 | 1,862.30 | [1] | ' | ' | ' | |
Other long-term liabilities | 84.6 | 80.1 | [1] | ' | ' | ' | |
Total stockholder's deficiency | -486 | -516.5 | [1] | ' | ' | ' | |
Total liabilities and stockholder's deficiency | 1,997.40 | 2,096.80 | [1] | ' | ' | ' | |
Products Corporation | ' | ' | ' | ' | ' | ||
Assets: | ' | ' | ' | ' | ' | ||
Cash and cash equivalents | 49.4 | 141.3 | [4] | ' | 103.7 | 59.1 | |
Trade receivables, less allowances for doubtful accounts | 84.6 | 88.7 | [4] | ' | ' | ' | |
Inventories | 86.2 | 78 | [4] | ' | ' | ' | |
Deferred income taxes – current | 49.1 | 52.5 | [4] | ' | ' | ' | |
Prepaid expenses and other | 127.7 | 111.6 | [4] | ' | ' | ' | |
Intercompany receivables | 974.8 | 1,051.30 | [4] | ' | ' | ' | |
Investment in subsidiaries | 610.7 | 589.7 | [4] | ' | ' | ' | |
Property, plant and equipment, net | 107.9 | 86.7 | [4] | ' | ' | ' | |
Deferred income taxes – noncurrent | 10.2 | 38 | [4] | ' | ' | ' | |
Goodwill | 185.8 | 185.8 | [4] | ' | ' | ' | |
Intangible assets, net | 54.6 | 57.4 | [4] | ' | ' | ' | |
Other assets | 88.2 | 90.9 | [4] | ' | ' | ' | |
Total assets | 2,429.20 | 2,571.90 | [4] | ' | ' | ' | |
Liabilities and Equity [Abstract] | ' | ' | ' | ' | ' | ||
Short-term borrowings | 0 | 0 | [4] | ' | ' | ' | |
Current portion of long-term debt | 7 | 65.4 | [4] | ' | ' | ' | |
Accounts payable | 78.3 | 72.2 | [4] | ' | ' | ' | |
Accrued expenses and other | 144.7 | 161.8 | [4] | ' | ' | ' | |
Intercompany payables | 698.9 | 790 | [4] | ' | ' | ' | |
Long-term debt | 1,857.60 | 1,861.40 | [4] | ' | ' | ' | |
Other long-term liabilities | 128.7 | 137.6 | [4] | ' | ' | ' | |
Total liabilities | 2,915.20 | 3,088.40 | [4] | ' | ' | ' | |
Total stockholder's deficiency | -486 | -516.5 | [4] | ' | ' | ' | |
Total liabilities and stockholder's deficiency | 2,429.20 | 2,571.90 | [4] | ' | ' | ' | |
Guarantor Subsidiaries | ' | ' | ' | ' | ' | ||
Assets: | ' | ' | ' | ' | ' | ||
Cash and cash equivalents | 68 | 0.8 | ' | 0.1 | 0 | ||
Trade receivables, less allowances for doubtful accounts | 44.6 | 24.5 | ' | ' | ' | ||
Inventories | 34.4 | 9.5 | ' | ' | ' | ||
Deferred income taxes – current | 0 | 0 | ' | ' | ' | ||
Prepaid expenses and other | 6.5 | 4.7 | ' | ' | ' | ||
Intercompany receivables | 624.4 | 614.5 | ' | ' | ' | ||
Investment in subsidiaries | -144.8 | -60.2 | ' | ' | ' | ||
Property, plant and equipment, net | 27.6 | 0.6 | ' | ' | ' | ||
Deferred income taxes – noncurrent | 0 | 0 | ' | ' | ' | ||
Goodwill | 30 | 30 | ' | ' | ' | ||
Intangible assets, net | 165.2 | 0.3 | ' | ' | ' | ||
Other assets | 4.6 | 1.6 | ' | ' | ' | ||
Total assets | 860.5 | 626.3 | ' | ' | ' | ||
Liabilities and Equity [Abstract] | ' | ' | ' | ' | ' | ||
Short-term borrowings | 0 | 1.8 | ' | ' | ' | ||
Current portion of long-term debt | 0 | 0 | ' | ' | ' | ||
Accounts payable | 19.3 | 6.2 | ' | ' | ' | ||
Accrued expenses and other | 27.7 | 13.4 | ' | ' | ' | ||
Intercompany payables | 682.2 | 675.9 | ' | ' | ' | ||
Long-term debt | 0 | 0 | ' | ' | ' | ||
Other long-term liabilities | 2.9 | 2.9 | ' | ' | ' | ||
Total liabilities | 732.1 | 700.2 | ' | ' | ' | ||
Total stockholder's deficiency | 128.4 | -73.9 | ' | ' | ' | ||
Total liabilities and stockholder's deficiency | 860.5 | 626.3 | ' | ' | ' | ||
Non-Guarantor Subsidiaries | ' | ' | ' | ' | ' | ||
Assets: | ' | ' | ' | ' | ' | ||
Cash and cash equivalents | 61 | 102 | [4],[5] | ' | 35.5 | 57.2 | |
Trade receivables, less allowances for doubtful accounts | 126.8 | 140.3 | [4],[5] | ' | ' | ' | |
Inventories | 66.6 | 87.5 | [4],[5] | ' | ' | ' | |
Deferred income taxes – current | 12.7 | 12.6 | [4],[5] | ' | ' | ' | |
Prepaid expenses and other | 29.1 | 39.8 | [4],[5] | ' | ' | ' | |
Intercompany receivables | 160.5 | 474.1 | [4],[5] | ' | ' | ' | |
Investment in subsidiaries | 0 | 0 | [4],[5] | ' | ' | ' | |
Property, plant and equipment, net | 73.6 | 108.6 | [4],[5] | ' | ' | ' | |
Deferred income taxes – noncurrent | 11.4 | 12.9 | [4],[5] | ' | ' | ' | |
Goodwill | 251 | 256.5 | [4],[5] | ' | ' | ' | |
Intangible assets, net | 116.3 | 302.4 | [4],[5] | ' | ' | ' | |
Other assets | 24.3 | 31.3 | [4],[5] | ' | ' | ' | |
Total assets | 933.3 | 1,568 | [4],[5] | ' | ' | ' | |
Liabilities and Equity [Abstract] | ' | ' | ' | ' | ' | ||
Short-term borrowings | 7.9 | 6.1 | [4],[5] | ' | ' | ' | |
Current portion of long-term debt | 0 | 0 | [4],[5] | ' | ' | ' | |
Accounts payable | 70.1 | 87.3 | [4],[5] | ' | ' | ' | |
Accrued expenses and other | 89.1 | 138.4 | [4],[5] | ' | ' | ' | |
Intercompany payables | 378.6 | 674 | [4],[5] | ' | ' | ' | |
Long-term debt | 0.7 | 0.9 | [4],[5] | ' | ' | ' | |
Other long-term liabilities | 49.4 | 57.9 | [4],[5] | ' | ' | ' | |
Total liabilities | 595.8 | 964.6 | [4],[5] | ' | ' | ' | |
Total stockholder's deficiency | 337.5 | 603.4 | [4],[5] | ' | ' | ' | |
Total liabilities and stockholder's deficiency | 933.3 | 1,568 | [4],[5] | ' | ' | ' | |
Eliminations | ' | ' | ' | ' | ' | ||
Assets: | ' | ' | ' | ' | ' | ||
Cash and cash equivalents | 0 | 0 | [6] | ' | 0 | 0 | |
Trade receivables, less allowances for doubtful accounts | 0 | 0 | ' | ' | ' | ||
Inventories | 0 | 0 | ' | ' | ' | ||
Deferred income taxes – current | 0 | 0 | ' | ' | ' | ||
Prepaid expenses and other | 0 | 0 | ' | ' | ' | ||
Intercompany receivables | -1,759.70 | -2,139.90 | ' | ' | ' | ||
Investment in subsidiaries | -465.9 | -529.5 | ' | ' | ' | ||
Property, plant and equipment, net | 0 | 0 | ' | ' | ' | ||
Deferred income taxes – noncurrent | 0 | 0 | ' | ' | ' | ||
Goodwill | 0 | 0 | ' | ' | ' | ||
Intangible assets, net | 0 | 0 | ' | ' | ' | ||
Other assets | 0 | 0 | ' | ' | ' | ||
Total assets | -2,225.60 | -2,669.40 | ' | ' | ' | ||
Liabilities and Equity [Abstract] | ' | ' | ' | ' | ' | ||
Short-term borrowings | 0 | 0 | ' | ' | ' | ||
Current portion of long-term debt | 0 | 0 | ' | ' | ' | ||
Accounts payable | 0 | 0 | ' | ' | ' | ||
Accrued expenses and other | 0 | 0 | ' | ' | ' | ||
Intercompany payables | -1,759.70 | -2,139.90 | ' | ' | ' | ||
Long-term debt | 0 | 0 | ' | ' | ' | ||
Other long-term liabilities | 0 | 0 | ' | ' | ' | ||
Total liabilities | -1,759.70 | -2,139.90 | ' | ' | ' | ||
Total stockholder's deficiency | -465.9 | -529.5 | ' | ' | ' | ||
Total liabilities and stockholder's deficiency | -2,225.60 | -2,669.40 | ' | ' | ' | ||
Consolidated | ' | ' | ' | ' | ' | ||
Assets: | ' | ' | ' | ' | ' | ||
Cash and cash equivalents | 178.4 | 244.1 | ' | 139.3 | 116.3 | ||
Trade receivables, less allowances for doubtful accounts | 256 | 253.5 | ' | ' | ' | ||
Inventories | 187.2 | 175 | ' | ' | ' | ||
Deferred income taxes – current | 61.8 | 65.1 | ' | ' | ' | ||
Prepaid expenses and other | 163.3 | 156.1 | ' | ' | ' | ||
Intercompany receivables | 0 | 0 | ' | ' | ' | ||
Investment in subsidiaries | 0 | 0 | ' | ' | ' | ||
Property, plant and equipment, net | 209.1 | 195.9 | ' | ' | ' | ||
Deferred income taxes – noncurrent | 21.6 | 50.9 | ' | ' | ' | ||
Goodwill | 466.8 | 472.3 | ' | ' | ' | ||
Intangible assets, net | 336.1 | 360.1 | ' | ' | ' | ||
Other assets | 117.1 | 123.8 | ' | ' | ' | ||
Total assets | 1,997.40 | 2,096.80 | ' | ' | ' | ||
Liabilities and Equity [Abstract] | ' | ' | ' | ' | ' | ||
Short-term borrowings | 7.9 | 7.9 | ' | ' | ' | ||
Current portion of long-term debt | 7 | 65.4 | ' | ' | ' | ||
Accounts payable | 167.7 | 165.7 | ' | ' | ' | ||
Accrued expenses and other | 261.5 | 313.6 | ' | ' | ' | ||
Intercompany payables | 0 | 0 | ' | ' | ' | ||
Long-term debt | 1,858.30 | 1,862.30 | ' | ' | ' | ||
Other long-term liabilities | 181 | 198.4 | ' | ' | ' | ||
Total liabilities | 2,483.40 | 2,613.30 | ' | ' | ' | ||
Total stockholder's deficiency | -486 | -516.5 | ' | ' | ' | ||
Total liabilities and stockholder's deficiency | $1,997.40 | $2,096.80 | ' | ' | ' | ||
[1] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. | ||||||
[2] | The Company recorded a $3.9 million income tax adjustment to the beginning tax balance within other assets and a $4.8 million adjustment to other long-term liabilities, resulting in a net increase to goodwill of $0.9 million. | ||||||
[3] | The Measurement Period Adjustments to intangible assets, deferred tax liability and goodwill in the first quarter of 2014 related to a change in assumptions used to calculate the fair value of an acquired customer relationship intangible asset, which increased the intangible asset by $5.4 million and extended the life of the asset from 10 to 20 years, increased deferred tax liabilities by $2.1 million, and resulted in a net decrease to goodwill of $3.3 million. | ||||||
[4] | In the second quarter of 2014, the Company retrospectively adjusted deferred taxes for an immaterial correction, as discussed in Note 1, Description of Business and Basis of Presentation. For the Guarantor financials, the correction also included moving certain tax balances from Non-Guarantor to the Products Corporation Balance Sheet as of December 31, 2013. | ||||||
[5] | During the three months ended March 31, 2014, the Company recorded Measurement Period Adjustments to certain net assets and intangible assets acquired in the Colomer Acquisition on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. | ||||||
[6] | In January 2014, Colomer's U.S. subsidiaries became additional guarantors under Products Corporation's Amended Credit Agreements and 5¾% Senior Notes. Accordingly, for cash flow presentation purposes, the cash and cash equivalents at the beginning of the period associated with Colomer's U.S. subsidiaries have been reported under Guarantor Subsidiaries. |
GUARANTOR_FINANCIAL_INFORMATIO3
GUARANTOR FINANCIAL INFORMATION Statements of Income and Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | |
Net sales | $472.30 | $333.10 | $1,440 | $1,003.70 | |
Cost of sales | 164.6 | 121.1 | 495.3 | 358.1 | |
Gross profit | 307.7 | 212 | 944.7 | 645.6 | |
Selling, general and administrative expenses | 249.3 | 163.3 | 754.6 | 476.2 | |
Acquisition and integration costs | 0.9 | 5.9 | 5.4 | 6.3 | |
Restructuring and related charges | 0.8 | -1.5 | 18.1 | 1.8 | |
Operating income | 56.7 | 44.3 | 166.6 | 161.3 | |
Other expenses, net: | ' | ' | ' | ' | |
Interest expense | 20.6 | 17.8 | 63.9 | 55.5 | |
Amortization of debt issuance costs | 1.3 | 0.8 | 4.1 | 2.2 | |
Loss on early extinguishment of debt, net | 0 | 0.2 | 2 | 28.1 | |
Foreign currency losses, net | 9.3 | 0.4 | 17.9 | 3.2 | |
Miscellaneous, net | 0.1 | 0.6 | 0.2 | 0.8 | |
Other expenses, net | 31.3 | 19.8 | 88.1 | 89.8 | |
Income from continuing operations before income taxes | 25.4 | 24.5 | 78.5 | 71.5 | |
Provision for (benefit from) income taxes | 9.6 | 13 | 36.6 | 32.4 | |
Income from continuing operations, net of taxes | 15.8 | 11.5 | 41.9 | 39.1 | |
Income (loss) from discontinued operations, net of taxes | 0.4 | -1.5 | 0.9 | -6.3 | |
Net income | 16.2 | 10 | 42.8 | 32.8 | |
Other comprehensive (loss) income | -16.6 | 3.1 | -16 | [1] | 2.2 |
Total comprehensive (loss) income | -0.4 | 13.1 | 26.8 | 35 | |
Products Corporation | ' | ' | ' | ' | |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | |
Net sales | 233.5 | 229.4 | 729 | 713.5 | |
Cost of sales | 100.8 | 106.2 | 321.5 | 325.5 | |
Gross profit | 132.7 | 123.2 | 407.5 | 388 | |
Selling, general and administrative expenses | 119.7 | 100.8 | 354.1 | 311.8 | |
Acquisition and integration costs | 0.9 | 5.9 | 5.4 | 6.3 | |
Restructuring and related charges | -0.1 | 0 | 2.2 | 0 | |
Operating income | 12.2 | 16.5 | 45.8 | 69.9 | |
Other expenses, net: | ' | ' | ' | ' | |
Intercompany interest, net | -2.2 | 0.2 | -6.4 | 0.7 | |
Interest expense | 20.4 | 16 | 63.2 | 50.3 | |
Amortization of debt issuance costs | 1.3 | 0.8 | 4.1 | 2.2 | |
Loss on early extinguishment of debt, net | 0 | 0.2 | 2 | 28.1 | |
Foreign currency losses, net | 1.9 | -1.5 | -4.7 | 2.5 | |
Miscellaneous, net | -9.8 | -10.9 | -39.1 | -49.4 | |
Other expenses, net | 11.6 | 4.8 | 19.1 | 34.4 | |
Income from continuing operations before income taxes | 0.6 | 11.7 | 26.7 | 35.5 | |
Provision for (benefit from) income taxes | 10.6 | 10.9 | 64.1 | 27.3 | |
Income from continuing operations, net of taxes | -10 | 0.8 | -37.4 | 8.2 | |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0.2 | 0.3 | |
Equity in income (loss) of subsidiaries | 26.2 | 9.2 | 80 | 24.3 | |
Net income | 16.2 | 10 | 42.8 | 32.8 | |
Other comprehensive (loss) income | -16.6 | 3.1 | -16 | 2.2 | |
Total comprehensive (loss) income | -0.4 | 13.1 | 26.8 | 35 | |
Guarantor Subsidiaries | ' | ' | ' | ' | |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | |
Net sales | 91.2 | 25.3 | 272.7 | 63.6 | |
Cost of sales | 37 | 12.6 | 109.8 | 30.2 | |
Gross profit | 54.2 | 12.7 | 162.9 | 33.4 | |
Selling, general and administrative expenses | 33.5 | 9.4 | 96.8 | 28.3 | |
Acquisition and integration costs | 0 | 0 | 0 | 0 | |
Restructuring and related charges | 0.2 | 0.1 | 3.3 | 0.3 | |
Operating income | 20.5 | 3.2 | 62.8 | 4.8 | |
Other expenses, net: | ' | ' | ' | ' | |
Intercompany interest, net | 0 | -0.1 | -0.3 | -0.5 | |
Interest expense | 0 | 0.1 | 0.1 | 0.2 | |
Amortization of debt issuance costs | 0 | 0 | 0 | 0 | |
Loss on early extinguishment of debt, net | 0 | 0 | 0 | 0 | |
Foreign currency losses, net | -0.4 | 0.5 | -0.2 | 0.4 | |
Miscellaneous, net | -3.1 | -5.8 | -4 | 5.2 | |
Other expenses, net | -3.5 | -5.3 | -4.4 | 5.3 | |
Income from continuing operations before income taxes | 24 | 8.5 | 67.2 | -0.5 | |
Provision for (benefit from) income taxes | 0 | 0.4 | -27.9 | -2 | |
Income from continuing operations, net of taxes | 24 | 8.1 | 95.1 | 1.5 | |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | |
Equity in income (loss) of subsidiaries | 5.8 | 2.2 | -9.4 | 19.7 | |
Net income | 29.8 | 10.3 | 85.7 | 21.2 | |
Other comprehensive (loss) income | 4.9 | -1.4 | 4.7 | 9.8 | |
Total comprehensive (loss) income | 34.7 | 8.9 | 90.4 | 31 | |
Non-Guarantor Subsidiaries | ' | ' | ' | ' | |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | |
Net sales | 189.4 | 126.9 | 577.5 | 372.9 | |
Cost of sales | 68.6 | 50.8 | 203.2 | 148.7 | |
Gross profit | 120.8 | 76.1 | 374.3 | 224.2 | |
Selling, general and administrative expenses | 96.1 | 53.1 | 303.7 | 136.1 | |
Acquisition and integration costs | 0 | 0 | 0 | 0 | |
Restructuring and related charges | 0.7 | -1.6 | 12.6 | 1.5 | |
Operating income | 24 | 24.6 | 58 | 86.6 | |
Other expenses, net: | ' | ' | ' | ' | |
Intercompany interest, net | 2.2 | 1.5 | 6.7 | 4.5 | |
Interest expense | 0.2 | 0.1 | 0.6 | 0.3 | |
Amortization of debt issuance costs | 0 | 0 | 0 | 0 | |
Loss on early extinguishment of debt, net | 0 | 0 | 0 | 0 | |
Foreign currency losses, net | 7.8 | 1.4 | 22.8 | 0.3 | |
Miscellaneous, net | 13 | 17.3 | 43.3 | 45 | |
Other expenses, net | 23.2 | 20.3 | 73.4 | 50.1 | |
Income from continuing operations before income taxes | 0.8 | 4.3 | -15.4 | 36.5 | |
Provision for (benefit from) income taxes | -1 | 1.7 | 0.4 | 7.1 | |
Income from continuing operations, net of taxes | 1.8 | 2.6 | -15.8 | 29.4 | |
Income (loss) from discontinued operations, net of taxes | 0.4 | -1.5 | 0.7 | -6.6 | |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Net income | 2.2 | 1.1 | -15.1 | 22.8 | |
Other comprehensive (loss) income | -10.7 | -1.2 | -11.9 | 4 | |
Total comprehensive (loss) income | -8.5 | -0.1 | -27 | 26.8 | |
Eliminations | ' | ' | ' | ' | |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | |
Net sales | -41.8 | -48.5 | -139.2 | -146.3 | |
Cost of sales | -41.8 | -48.5 | -139.2 | -146.3 | |
Gross profit | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | |
Acquisition and integration costs | 0 | 0 | 0 | 0 | |
Restructuring and related charges | 0 | 0 | 0 | 0 | |
Operating income | 0 | 0 | 0 | 0 | |
Other expenses, net: | ' | ' | ' | ' | |
Intercompany interest, net | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Amortization of debt issuance costs | 0 | 0 | 0 | 0 | |
Loss on early extinguishment of debt, net | 0 | 0 | 0 | 0 | |
Foreign currency losses, net | 0 | 0 | 0 | 0 | |
Miscellaneous, net | 0 | 0 | 0 | 0 | |
Other expenses, net | 0 | 0 | 0 | 0 | |
Income from continuing operations before income taxes | 0 | 0 | 0 | 0 | |
Provision for (benefit from) income taxes | 0 | 0 | 0 | ' | |
Income from continuing operations, net of taxes | 0 | 0 | 0 | 0 | |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | |
Equity in income (loss) of subsidiaries | -32 | -11.4 | -70.6 | -44 | |
Net income | -32 | -11.4 | -70.6 | -44 | |
Other comprehensive (loss) income | 5.8 | 2.6 | 7.2 | -13.8 | |
Total comprehensive (loss) income | -26.2 | -8.8 | -63.4 | -57.8 | |
Consolidated | ' | ' | ' | ' | |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | |
Net sales | 472.3 | 333.1 | 1,440 | 1,003.70 | |
Cost of sales | 164.6 | 121.1 | 495.3 | 358.1 | |
Gross profit | 307.7 | 212 | 944.7 | 645.6 | |
Selling, general and administrative expenses | 249.3 | 163.3 | 754.6 | 476.2 | |
Acquisition and integration costs | 0.9 | 5.9 | 5.4 | 6.3 | |
Restructuring and related charges | 0.8 | -1.5 | 18.1 | 1.8 | |
Operating income | 56.7 | 44.3 | 166.6 | 161.3 | |
Other expenses, net: | ' | ' | ' | ' | |
Intercompany interest, net | 0 | 1.6 | 0 | 4.7 | |
Interest expense | 20.6 | 16.2 | 63.9 | 50.8 | |
Amortization of debt issuance costs | 1.3 | 0.8 | 4.1 | 2.2 | |
Loss on early extinguishment of debt, net | 0 | 0.2 | 2 | 28.1 | |
Foreign currency losses, net | 9.3 | 0.4 | 17.9 | 3.2 | |
Miscellaneous, net | 0.1 | 0.6 | 0.2 | 0.8 | |
Other expenses, net | 31.3 | 19.8 | 88.1 | 89.8 | |
Income from continuing operations before income taxes | 25.4 | 24.5 | 78.5 | 71.5 | |
Provision for (benefit from) income taxes | 9.6 | 13 | 36.6 | 32.4 | |
Income from continuing operations, net of taxes | 15.8 | 11.5 | 41.9 | 39.1 | |
Income (loss) from discontinued operations, net of taxes | 0.4 | -1.5 | 0.9 | -6.3 | |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Net income | 16.2 | 10 | 42.8 | 32.8 | |
Other comprehensive (loss) income | -16.6 | 3.1 | -16 | 2.2 | |
Total comprehensive (loss) income | ($0.40) | $13.10 | $26.80 | $35 | |
[1] | See Note 11, “Accumulated Other Comprehensive Loss,†regarding the changes in the accumulated balances for each component of other comprehensive income during the nine months ended September 30, 2014. |
GUARANTOR_FINANCIAL_INFORMATIO4
GUARANTOR FINANCIAL INFORMATION Statement of Cash Flows (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | |
Net cash provided by operating activities | $46.70 | $5.80 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | |
Capital expenditures | -30.3 | -17.9 | |
Insurance proceeds for property, plant and equipment | 0 | 13.1 | |
Proceeds from the sale of certain assets | 0.9 | 3.4 | |
Net cash used in investing activities | -29.4 | -1.4 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Net (decrease) increase in short-term borrowings and overdraft | -3.1 | 0.2 | |
Payment of financing costs | -1.8 | -32.7 | |
Other financing activities | -2.1 | -1.8 | |
Net cash (used in) provided by financing activities | -70.7 | 22.7 | |
Effect of exchange rate changes on cash and cash equivalents | -12.3 | -4.1 | |
Net (decrease) increase in cash and cash equivalents | -65.7 | 23 | |
Cash and cash equivalents at beginning of period | 244.1 | [1] | 116.3 |
Cash and cash equivalents at end of period | 178.4 | 139.3 | |
Products Corporation | ' | ' | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | |
Net cash provided by operating activities | 2.2 | 38.4 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | |
Capital expenditures | -23.2 | -15.5 | |
Insurance proceeds for property, plant and equipment | ' | 0 | |
Proceeds from the sale of certain assets | 0 | 0.3 | |
Net cash used in investing activities | -23.2 | -15.2 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Net (decrease) increase in short-term borrowings and overdraft | -3.7 | -1.4 | |
Payment of financing costs | -1.8 | -32.7 | |
Other financing activities | -1.7 | -1.5 | |
Net cash (used in) provided by financing activities | -70.9 | 21.4 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |
Net (decrease) increase in cash and cash equivalents | -91.9 | 44.6 | |
Cash and cash equivalents at beginning of period | 141.3 | [2] | 59.1 |
Cash and cash equivalents at end of period | 49.4 | 103.7 | |
Guarantor Subsidiaries | ' | ' | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | |
Net cash provided by operating activities | 55.7 | 0.7 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | |
Capital expenditures | -0.3 | -0.5 | |
Insurance proceeds for property, plant and equipment | ' | 0 | |
Proceeds from the sale of certain assets | 0 | 0 | |
Net cash used in investing activities | -0.3 | -0.5 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Net (decrease) increase in short-term borrowings and overdraft | -1.9 | -0.1 | |
Payment of financing costs | 0 | 0 | |
Other financing activities | 0 | 0 | |
Net cash (used in) provided by financing activities | -1.9 | -0.1 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |
Net (decrease) increase in cash and cash equivalents | 53.5 | 0.1 | |
Cash and cash equivalents at beginning of period | 0.8 | 0 | |
Cash and cash equivalents at end of period | 68 | 0.1 | |
Non-Guarantor Subsidiaries | ' | ' | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | |
Net cash provided by operating activities | -11.2 | -33.3 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | |
Capital expenditures | -6.8 | -1.9 | |
Insurance proceeds for property, plant and equipment | ' | 13.1 | |
Proceeds from the sale of certain assets | 0.9 | 3.1 | |
Net cash used in investing activities | -5.9 | 14.3 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Net (decrease) increase in short-term borrowings and overdraft | 2.5 | 1.7 | |
Payment of financing costs | 0 | 0 | |
Other financing activities | -0.4 | -0.3 | |
Net cash (used in) provided by financing activities | 2.1 | 1.4 | |
Effect of exchange rate changes on cash and cash equivalents | -12.3 | -4.1 | |
Net (decrease) increase in cash and cash equivalents | -27.3 | -21.7 | |
Cash and cash equivalents at beginning of period | 102 | [2],[3] | 57.2 |
Cash and cash equivalents at end of period | 61 | 35.5 | |
Eliminations | ' | ' | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | |
Net cash provided by operating activities | 0 | 0 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | |
Capital expenditures | 0 | 0 | |
Insurance proceeds for property, plant and equipment | ' | 0 | |
Proceeds from the sale of certain assets | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Net (decrease) increase in short-term borrowings and overdraft | 0 | 0 | |
Payment of financing costs | 0 | 0 | |
Other financing activities | 0 | 0 | |
Net cash (used in) provided by financing activities | 0 | 0 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents at beginning of period | 0 | [4] | 0 |
Cash and cash equivalents at end of period | 0 | 0 | |
Consolidated | ' | ' | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | |
Net cash provided by operating activities | 46.7 | 5.8 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | |
Capital expenditures | -30.3 | -17.9 | |
Insurance proceeds for property, plant and equipment | ' | 13.1 | |
Proceeds from the sale of certain assets | 0.9 | 3.4 | |
Net cash used in investing activities | -29.4 | -1.4 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Net (decrease) increase in short-term borrowings and overdraft | -3.1 | 0.2 | |
Payment of financing costs | -1.8 | -32.7 | |
Other financing activities | -2.1 | -1.8 | |
Net cash (used in) provided by financing activities | -70.7 | 22.7 | |
Effect of exchange rate changes on cash and cash equivalents | -12.3 | -4.1 | |
Net (decrease) increase in cash and cash equivalents | -65.7 | 23 | |
Cash and cash equivalents at beginning of period | 244.1 | 116.3 | |
Cash and cash equivalents at end of period | 178.4 | 139.3 | |
5 3/4% Senior Notes Due 2021 | ' | ' | |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' | |
Stated interest rate (percent) | 5.75% | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from the issuance of the 5¾% Senior Notes | 0 | 500 | |
5 3/4% Senior Notes Due 2021 | Products Corporation | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from the issuance of the 5¾% Senior Notes | ' | 500 | |
5 3/4% Senior Notes Due 2021 | Guarantor Subsidiaries | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from the issuance of the 5¾% Senior Notes | ' | 0 | |
5 3/4% Senior Notes Due 2021 | Non-Guarantor Subsidiaries | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from the issuance of the 5¾% Senior Notes | ' | 0 | |
5 3/4% Senior Notes Due 2021 | Eliminations | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from the issuance of the 5¾% Senior Notes | ' | 0 | |
5 3/4% Senior Notes Due 2021 | Consolidated | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Proceeds from the issuance of the 5¾% Senior Notes | ' | 500 | |
9 3/4% Senior Secured Notes Due 2015 | ' | ' | |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' | |
Stated interest rate (percent) | 9.75% | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | 0 | -330 | |
9 3/4% Senior Secured Notes Due 2015 | Products Corporation | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | ' | -330 | |
9 3/4% Senior Secured Notes Due 2015 | Guarantor Subsidiaries | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | ' | 0 | |
9 3/4% Senior Secured Notes Due 2015 | Non-Guarantor Subsidiaries | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | ' | 0 | |
9 3/4% Senior Secured Notes Due 2015 | Eliminations | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | ' | 0 | |
9 3/4% Senior Secured Notes Due 2015 | Consolidated | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | ' | -330 | |
Senior Subordinated Term Loan Due 2014 | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | -58.4 | 0 | |
Senior Subordinated Term Loan Due 2014 | Products Corporation | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | -58.4 | ' | |
Senior Subordinated Term Loan Due 2014 | Guarantor Subsidiaries | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | 0 | ' | |
Senior Subordinated Term Loan Due 2014 | Non-Guarantor Subsidiaries | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | 0 | ' | |
Senior Subordinated Term Loan Due 2014 | Eliminations | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | 0 | ' | |
Senior Subordinated Term Loan Due 2014 | Consolidated | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | -58.4 | ' | |
Acquisition Term Loan | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | -5.3 | 0 | |
Acquisition Term Loan | Products Corporation | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | -5.3 | ' | |
Acquisition Term Loan | Guarantor Subsidiaries | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | 0 | ' | |
Acquisition Term Loan | Non-Guarantor Subsidiaries | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | 0 | ' | |
Acquisition Term Loan | Eliminations | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | 0 | ' | |
Acquisition Term Loan | Consolidated | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | -5.3 | ' | |
2011 Term Loan | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | 0 | -113 | |
2011 Term Loan | Products Corporation | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | ' | -113 | |
2011 Term Loan | Guarantor Subsidiaries | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | ' | 0 | |
2011 Term Loan | Non-Guarantor Subsidiaries | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | ' | 0 | |
2011 Term Loan | Eliminations | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | ' | 0 | |
2011 Term Loan | Consolidated | ' | ' | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Repayments of long term debt | ' | ($113) | |
[1] | During the nine months ended September 30, 2014, the Company recorded Measurement Period Adjustments (as hereinafter defined) to certain net assets and intangible assets acquired in the Colomer Acquisition (as hereinafter defined) on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. | ||
[2] | In the second quarter of 2014, the Company retrospectively adjusted deferred taxes for an immaterial correction, as discussed in Note 1, Description of Business and Basis of Presentation. For the Guarantor financials, the correction also included moving certain tax balances from Non-Guarantor to the Products Corporation Balance Sheet as of December 31, 2013. | ||
[3] | During the three months ended March 31, 2014, the Company recorded Measurement Period Adjustments to certain net assets and intangible assets acquired in the Colomer Acquisition on October 9, 2013. Accordingly, the prior period has been retrospectively adjusted for such Measurement Period Adjustments. Refer to Note 2, "Business Combination" for additional details. | ||
[4] | In January 2014, Colomer's U.S. subsidiaries became additional guarantors under Products Corporation's Amended Credit Agreements and 5¾% Senior Notes. Accordingly, for cash flow presentation purposes, the cash and cash equivalents at the beginning of the period associated with Colomer's U.S. subsidiaries have been reported under Guarantor Subsidiaries. |