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NOTE 17 - SEGMENT DATA AND RELATED INFORMATION
Reportable operating segments, as defined by SFAS
No. 131, "Disclosures about Segments of an Enterprise
and Related Information," 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") in deciding how to
allocate resources and in assessing performance. As a
result of the similarities in the manufacturing, 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 Chief Executive.
Although the Company operates in one business segment,
beauty products, management also evaluates performance
on a product category basis.
While the Company's results of operations are also
reviewed on a consolidated basis, the Chief Executive
reviews data segmented on a basis that facilitates
comparison to industry statistics. Accordingly, net sales,
depreciation and amortization, and operating income are
available with respect to the manufacture and distribution
of skin care, makeup, fragrance, hair care and other
products. These product categories meet the FASB's definition of operating segments and, accordingly, additional
financial data are provided below. The "other" segment
includes the sales and related results of ancillary products
and services that do not fit the definition of skin care,
makeup, fragrance and hair care.
The Company evaluates segment performance based
upon operating income, which represents earnings before
income taxes, minority interest, net interest expense and
discontinued operations. The accounting policies for each
of the reportable segments are the same as those
described in the summary of significant accounting
policies, except for depreciation and amortization charges,
which are allocated, primarily, based upon net sales. 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 is produced for the Chief Executive or
included herein.
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