Focus on revenues and operating income

Perelman. The operation of this company contains four segments: consumer division; professional division; Elizabeth Arden among others. Company is involved in manufacturing, marketing and selling of extensive array of beauty and personal care products worldwide. Operating revenues of the company decreased due to the following factors; there was consolidated loss from continued operations from the net taxes of the year 2016 as it was $17. 0 million as compared to $59. Another $23. 4 million non-cash impairment loss on goodwill and acquired intangible assets for the company's other reporting unit recognized in 2016, as compared to $89. 7 million non-cash impairment loss on goodwill for the company's global color brands reporting unit recognized in 2015. 9 million increase in interest expense incurred during 2016 was primarily as a result of the debt-related transactions completed during the third quarter of 2016 in connection with financing the Elizabeth Arden acquisition and the complete refinancing of the old term loan facility as discussed below; and a further $16.

9 million aggregate loss on the early extinguishment of debt recognized in the third quarter of 2016 as a result of the complete refinancing of the old term loan facility in connection with the Elizabeth Arden acquisition. 4 percentage points. Favorable volume also increased gross profit by $25. 8- million, with no impact on gross profit as a percentage of net sales; and the favorable impact in 2016 related to the portion of the 2015 pension lump sum settlement charge recorded in the fourth quarter of 2015 with cost of sales in the amount of $10. 5 million which did not recur in 2016 and increased gross profit as a percentage of net sales by 0. 3 percentage points. Gross profit decreased in 2015 as a percentage of net sales by 0. 5 percentage points, decreasing by $26.

2 million in 2015 as compared to 2014. The drivers of the changes in gross profit in 2015 as compared to 2014 primarily included: unfavorable foreign currency fluctuations which reduced gross profit by $901 million and reduced gross profit as a percentage of net sales by 0. 5 percentage points; the unfavorable impact of a portion of the 2015 pension lump sum settlement charge recorded in the fourth quarter of 2015 within cost of sales in the amount of $10. There are main primary considerations that management of a company has to have in mind when managing the capital of the company and also liquidity. First the company has to meet the credit needs of the customers when they are planning to borrow. The other consideration that has to be taken into consideration is; the company has to sell some of its loans so as to help in managing costs.