Using the Pen Tool, draw a moustache shape as shown to the left in the illustration on the left. Use the Shape Tool to smooth the half moustache as shown on the right. Flop a duplicate so Santa has a symmetrical moustache.

You could repeat this process to make the eyebrows if you really want to. I just flopped one half of the moustache and re-sized it. Instant recycled eyebrows. Create a three-sided shape for the mouth as shown. Use the Shape Tool to conform it to the moustache.

And while we're recycling, flop a duplicate of one of the eye shapes and place it as shown under the mouth for a shadow to define the lower lip.