Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Aug. 13, 2015 | Dec. 31, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | COTY INC. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --06-30 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,024,305 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Document Period End Date | Jun. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 1,151,146,875 | ||
Common Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 98,814,559 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 262,062,370 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement [Abstract] | |||
Net revenues | $ 4,395.2 | $ 4,551.6 | $ 4,649.1 |
Cost of sales | 1,757 | 1,865.7 | 1,860.3 |
Gross profit | 2,638.2 | 2,685.9 | 2,788.8 |
Selling, general and administrative expenses | 2,066.1 | 2,219.6 | 2,283.7 |
Amortization expense | 74.7 | 85.7 | 90.2 |
Restructuring costs | 75.4 | 37.3 | 29.4 |
Acquisition-related costs | 34.1 | 0.7 | 8.9 |
Asset impairment charges | 0 | 316.9 | 1.5 |
Gain on sale of asset | (7.2) | 0 | (19.3) |
Operating income | 395.1 | 25.7 | 394.4 |
Interest expense, net | 73 | 68.5 | 76.5 |
Loss on early extinguishment of debt | 88.8 | 0 | 0 |
Other expense (income), net | 0 | 1.3 | (0.8) |
Income (loss) before income taxes | 233.3 | (44.1) | 318.7 |
(Benefit) provision for income taxes | (26.1) | 20.1 | 116.8 |
Net income (loss) | 259.4 | (64.2) | 201.9 |
Net income attributable to noncontrolling interests | 15.1 | 17.8 | 15.7 |
Net income attributable to redeemable noncontrolling interests | 11.8 | 15.4 | 18.2 |
Net income (loss) attributable to Coty Inc. | $ 232.5 | $ (97.4) | $ 168 |
Net income (loss) attributable to Coty Inc. per common share: | |||
Basic (dollars per shares) | $ 0.66 | $ (0.26) | $ 0.44 |
Diluted (dollars per shares) | $ 0.64 | $ (0.26) | $ 0.42 |
Weighted-average common shares outstanding: | |||
Basic (shares) | 353.3 | 381.7 | 381.7 |
Diluted (shares) | 362.9 | 381.7 | 396.4 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 259.4 | $ (64.2) | $ 201.9 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (228.4) | 63.8 | 19.9 |
Net unrealized derivative gain (loss) on cash flow hedges, net of taxes of $(1.6), $1.6 and nil, respectively | 8.8 | (8.9) | 0 |
Pension and other post-employment benefits adjustment, net of tax of $(17.6), $9.8 and $(6.0), respectively | 30.1 | (21.3) | 7.5 |
Total other comprehensive (loss) income, net of tax | (189.5) | 33.6 | 27.4 |
Comprehensive income (loss): | 69.9 | (30.6) | 229.3 |
Comprehensive income attributable to noncontrolling interests: | |||
Net income | 15.1 | 17.8 | 15.7 |
Foreign currency translation adjustment | (0.4) | 0.3 | (0.2) |
Total comprehensive income attributable to noncontrolling interests | 14.7 | 18.1 | 15.5 |
Comprehensive income attributable to redeemable noncontrolling interests: | |||
Net income | 11.8 | 15.4 | 18.2 |
Foreign currency translation adjustment | (0.2) | (0.2) | (1) |
Total comprehensive income attributable to redeemable noncontrolling interests | 11.6 | 15.2 | 17.2 |
Comprehensive income (loss) attributable to Coty Inc. | $ 43.6 | $ (63.9) | $ 196.6 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Change in derivative losses on cash flow hedges, taxes | $ (1.6) | $ 1.6 | $ 0 |
Pension and other post-employment benefits, tax | $ (17.6) | $ 9.8 | $ (6) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 341.3 | $ 1,238 |
Trade receivables—less allowances of $19.6 and $16.7, respectively | 679.6 | 664.8 |
Inventories | 557.8 | 617.4 |
Prepaid expenses and other current assets | 191 | 201.2 |
Deferred income taxes | 86.7 | 63.4 |
Total current assets | 1,856.4 | 2,784.8 |
Property and equipment, net | 500.2 | 540.3 |
Goodwill | 1,530.7 | 1,342.8 |
Other intangible assets, net | 1,913.6 | 1,837.1 |
Deferred income taxes | 10.4 | 11.4 |
Other noncurrent assets | 207.6 | 76.1 |
TOTAL ASSETS | 6,018.9 | 6,592.5 |
Current liabilities: | ||
Accounts payable | 748.4 | 810.2 |
Accrued expenses and other current liabilities | 719.2 | 723.6 |
Short-term debt and current portion of long-term debt | 28.8 | 33.4 |
Income and other taxes payable | 22.4 | 29.4 |
Deferred income taxes | 7.4 | 0.7 |
Total current liabilities | 1,526.2 | 1,597.3 |
Long-term debt | 2,605.9 | 3,260.1 |
Pension and other post-employment benefits | 206.5 | 272.5 |
Deferred income taxes | 352.6 | 273.3 |
Other noncurrent liabilities | 256.7 | 228.7 |
Total liabilities | $ 4,947.9 | $ 5,631.9 |
COMMITMENTS AND CONTINGENCIES (Note 25) | ||
REDEEMABLE NONCONTROLLING INTERESTS | $ 86.3 | $ 106.2 |
EQUITY: | ||
Preferred stock, $0.01 par value; 20.0 shares authorized; 1.9 and none issued and outstanding, respectively, at June 30, 2015 and 2014 | 0 | 0 |
Additional paid-in capital | 2,044.4 | 1,926.9 |
Accumulated deficit | (193.9) | (426.4) |
Accumulated other comprehensive loss | (274) | (85.1) |
Treasury stock—at cost, shares: 35.2 and 34.9 at June 30, 2015 and 2014, respectively | (610.6) | (575.4) |
Total Coty Inc. stockholders’ equity | 969.8 | 843.8 |
Noncontrolling interests | 14.9 | 10.6 |
Total equity | 984.7 | 854.4 |
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | 6,018.9 | 6,592.5 |
Common Class A | ||
EQUITY: | ||
Common stock, value | 1.3 | 1.2 |
Common Class B | ||
EQUITY: | ||
Common stock, value | $ 2.6 | $ 2.6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Trade receivables, allowances | $ 19.6 | $ 16.7 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 1,900,000 | 0 |
Preferred stock, shares outstanding | 1,900,000 | 0 |
Treasury stock, at cost, shares | 35,200,000 | 34,900,000 |
Common Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.0001 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 134,000,000 | 125,100,000 |
Common stock, shares outstanding | 98,800,000 | 90,200,000 |
Common Class B | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 262,000,000 | 263,700,000 |
Common stock, shares issued | 262,000,000 | 263,700,000 |
Common stock, shares outstanding | 262,000,000 | 263,700,000 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY, REDEEMABLE COMMON STOCK AND REDEEMABLE NONCONTROLLING INTERESTS - USD ($) shares in Millions, $ in Millions | Total | Common Class A | Total Coty Inc. Stockholders’ Equity | Total Coty Inc. Stockholders’ EquityCEO | Preferred Stock | Common Stock | Common StockCommon Class A | Common StockCommon Class ACEO | Common StockCommon Class B | Additional Paid-in Capital | Additional Paid-in CapitalCEO | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Treasury StockCEO | Noncontrolling Interest | Total Equity Excluding Redeemable Components | Total Equity Excluding Redeemable ComponentsCEO | Redeemable Common Stock | Redeemable Noncontrolling Interests |
BALANCE at Jun. 30, 2012 | $ 857.2 | $ 4 | $ 1,496.2 | $ (390.3) | $ (147.2) | $ (105.5) | $ 12 | $ 869.2 | $ 172.4 | $ 95.9 | ||||||||||
BALANCE (in Shares) at Jun. 30, 2012 | 399.4 | 17.5 | ||||||||||||||||||
Issuance of Common Stock | 15.6 | $ 0 | 15.6 | 15.6 | ||||||||||||||||
Issuance of Common Stock (in Shares) | 1 | |||||||||||||||||||
Reclassification of Common Stock to liability | (15.6) | (15.6) | (15.6) | |||||||||||||||||
Reclassification of liability to redeemable Common Stock | 131.2 | |||||||||||||||||||
Fair value adjustment of redeemable Common Stock | (47.1) | (47.1) | (47.1) | 47.1 | ||||||||||||||||
Transfer of redeemable Common Stock to JAB | 93.5 | 93.5 | 93.5 | (93.5) | ||||||||||||||||
Purchases of redeemable Common Stock | 0 | 2.5 | $ (2.5) | 0 | (0.7) | |||||||||||||||
Purchases of redeemable Common Stock (in Shares) | 0.2 | |||||||||||||||||||
Retirement of Treasury Stock | 0 | $ (0.2) | (106.7) | $ 106.9 | 0 | |||||||||||||||
Retirement of Treasury Stock (in Shares) | (17.6) | (17.6) | ||||||||||||||||||
Conversion of Common Stock | 0 | $ (3.8) | $ 0.7 | $ 3.1 | 0 | |||||||||||||||
Conversion of Common Stock (in Shares) | (382.8) | (72.2) | (310.6) | |||||||||||||||||
Reclassification of redeemable Common Stock to APIC | 256.5 | 256.5 | 256.5 | (256.5) | ||||||||||||||||
Reclassification of liability to APIC | 188.9 | 188.9 | 188.9 | |||||||||||||||||
Settlement of employee IPO restricted stock units | 21 | 21 | 21 | |||||||||||||||||
Settlement of employee IPO restricted stock units (in Shares) | 1.2 | |||||||||||||||||||
Purchase of Class A Common Stock | (5) | $ (5) | (5) | |||||||||||||||||
Purchase of Class A Common Stock (in shares) | 0.3 | |||||||||||||||||||
Exercise of employee stock options | 1.2 | 1.2 | 1.2 | |||||||||||||||||
Exercise of employee stock options (shares) | 0.2 | |||||||||||||||||||
Share-based compensation expense | 2.2 | 2.2 | 2.2 | |||||||||||||||||
Dividends | (57.8) | (57.8) | (57.8) | |||||||||||||||||
Net income (loss) | $ 168 | |||||||||||||||||||
Net income (loss) | 201.9 | 168 | 168 | 15.7 | 183.7 | 18.2 | ||||||||||||||
Other comprehensive income (loss) | 27.4 | 28.6 | 28.6 | (0.2) | 28.4 | (1) | ||||||||||||||
Distribution to noncontrolling interests | (11.8) | (11.8) | (20.5) | |||||||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (13.2) | (13.2) | (13.2) | 13.2 | ||||||||||||||||
BALANCE at Jun. 30, 2013 | 1,494 | $ 0 | $ 0.7 | $ 3.1 | 1,943.9 | (329) | (118.6) | $ (6.1) | 15.7 | 1,509.7 | $ 0 | 105.8 | ||||||||
BALANCE (in Shares) at Jun. 30, 2013 | 0 | 73.6 | 310.6 | 0.4 | ||||||||||||||||
Conversion of Common Stock | 0 | $ 0.5 | $ (0.5) | 0 | ||||||||||||||||
Conversion of Common Stock (in Shares) | (46.9) | (46.9) | ||||||||||||||||||
Purchase of Class A Common Stock | $ (100) | (569) | 0.3 | $ (569.3) | (569) | |||||||||||||||
Purchase of Class A Common Stock (in shares) | 6.6 | 34.5 | ||||||||||||||||||
Exercise of employee stock options | 21.9 | 21.9 | 21.9 | |||||||||||||||||
Exercise of employee stock options (shares) | 4.6 | |||||||||||||||||||
Share-based compensation expense | 41.9 | 41.9 | 41.9 | |||||||||||||||||
Dividends | (77.4) | (77.4) | (77.4) | |||||||||||||||||
Net income (loss) | (97.4) | |||||||||||||||||||
Net income (loss) | (64.2) | (97.4) | (97.4) | 17.8 | (79.6) | 15.4 | ||||||||||||||
Other comprehensive income (loss) | 33.6 | 33.5 | 33.5 | 0.3 | 33.8 | (0.2) | ||||||||||||||
Distribution to noncontrolling interests | (23) | (23) | (14.3) | |||||||||||||||||
Noncontrolling interest purchase adjustment | (4.2) | (4.2) | (0.2) | (4.4) | ||||||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 0.5 | 0.5 | 0.5 | (0.5) | ||||||||||||||||
BALANCE at Jun. 30, 2014 | $ 854.4 | 843.8 | $ 0 | $ 1.2 | $ 2.6 | 1,926.9 | (426.4) | (85.1) | $ (575.4) | 10.6 | 854.4 | 106.2 | ||||||||
BALANCE (in Shares) at Jun. 30, 2014 | 0 | 125.1 | 263.7 | 34.9 | ||||||||||||||||
Issuance of Common Stock | 0 | $ 0 | 0 | |||||||||||||||||
Issuance of Common Stock (in Shares) | 1.9 | |||||||||||||||||||
Reclassification of Common Stock to liability | (29.5) | (29.5) | (29.5) | |||||||||||||||||
Conversion of Common Stock | 0 | $ 0 | $ 0 | 0 | ||||||||||||||||
Conversion of Common Stock (in Shares) | (1.7) | (1.7) | ||||||||||||||||||
Purchase of Class A Common Stock | $ (263.1) | (263.1) | $ (42) | 0 | $ (263.1) | $ (42) | (263.1) | $ (42) | ||||||||||||
Reissuance of Treasury Stock for Bourjois Acquisition | 376.8 | 106.9 | $ 269.9 | 376.8 | ||||||||||||||||
Reissuance of Treasury Stock for Bourjois Acquisition (in shares) | (15.5) | |||||||||||||||||||
Purchase of Class A Common Stock (in shares) | 13.4 | 2.4 | ||||||||||||||||||
Exercise of employee stock options | $ 12.5 | $ 0 | $ 12.5 | $ 12.5 | ||||||||||||||||
Exercise of employee stock options (shares) | 6.8 | 1.4 | ||||||||||||||||||
Reclassification of Class A Common Stock from liability to APIC | 29.5 | 29.5 | 29.5 | |||||||||||||||||
Discount of Class A Common Stock | 1.9 | 1.9 | 1.9 | |||||||||||||||||
Exercise of employee stock options and settlement of restricted stock units (in shares) | 1.4 | 5.8 | ||||||||||||||||||
Exercise of employee stock options and settlement of restricted stock units | 48.5 | $ 0.1 | 48.4 | 48.5 | ||||||||||||||||
Share-based compensation expense | 14.3 | 14.3 | 14.3 | |||||||||||||||||
Dividends | (71.6) | (71.6) | (71.6) | |||||||||||||||||
Net income (loss) | $ 232.5 | 232.5 | ||||||||||||||||||
Net income (loss) | 259.4 | 232.5 | 15.1 | 247.6 | 11.8 | |||||||||||||||
Other comprehensive income (loss) | (189.5) | (188.9) | (188.9) | (0.4) | (189.3) | (0.2) | ||||||||||||||
Proceeds from noncontrolling interests | 1.8 | 1.8 | 0 | |||||||||||||||||
Distribution to noncontrolling interests | (12.2) | (12.2) | (9.1) | |||||||||||||||||
Dividend payable to redeemable noncontrolling interest holder | (1.5) | |||||||||||||||||||
Redeemable noncontrolling interest purchase | (15.8) | |||||||||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 5.1 | 5.1 | 5.1 | (5.1) | ||||||||||||||||
BALANCE at Jun. 30, 2015 | $ 984.7 | $ 969.8 | $ 0 | $ 1.3 | $ 2.6 | $ 2,044.4 | $ (193.9) | $ (274) | $ (610.6) | $ 14.9 | $ 984.7 | $ 86.3 | ||||||||
BALANCE (in Shares) at Jun. 30, 2015 | 1.9 | 134 | 262 | 35.2 |
CONSOLIDATED STATEMENTS OF EQU8
CONSOLIDATED STATEMENTS OF EQUITY, REDEEMABLE COMMON STOCK AND REDEEMABLE NONCONTROLLING INTERESTS (Parentheticals) - $ / shares | Sep. 17, 2014 | Sep. 17, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Stockholders' Equity [Abstract] | |||||
Dividends declared (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.2 | $ 0.15 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income (loss) | $ 259.4 | $ (64.2) | $ 201.9 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | [1] | 230.9 | 250.7 | 259.6 |
Asset impairment charges | 0 | 316.9 | 1.5 | |
Deferred income taxes | (87.2) | (38.4) | 29.9 | |
Provision for bad debts | 4.5 | 3.2 | 3.2 | |
Provision for pension and other post-employment benefits | 16.2 | 17.9 | 16.1 | |
Share-based compensation | 30.6 | 46.8 | 144.4 | |
Gain on sale of asset | (7.2) | 0 | (19.3) | |
Loss on early extinguishment of debt | 88.8 | 0 | 0 | |
Other | 20.5 | 15 | (5.3) | |
Change in operating assets and liabilities, net of effects from purchase of acquired companies: | ||||
Trade receivables | (43.5) | (31.1) | (36.7) | |
Inventories | 29.4 | 2.2 | 48.8 | |
Prepaid expenses and other current assets | 6 | (2.3) | 27.9 | |
Accounts payable | 7 | 72.4 | 2.4 | |
Accrued expenses and other current liabilities | 16.1 | 20.3 | (215.5) | |
Tax accruals | 127.7 | (31.9) | (6.7) | |
Other noncurrent assets | (136.7) | (34.4) | 11.5 | |
Other noncurrent liabilities | (36.2) | (6.6) | 0.2 | |
Net cash provided by operating activities | 526.3 | 536.5 | 463.9 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | (170.9) | (201.5) | (193.9) | |
Payments for business combinations, net of cash acquired | (0.6) | (29.5) | (31) | |
Additions of goodwill | (30) | (30) | (30) | |
Proceeds from sale of assets | 14.8 | 3.4 | 25 | |
Cash acquired from business combination | 12.3 | 0 | 0 | |
Other | 3.2 | 0 | 0 | |
Net cash used in investing activities | (171.2) | (257.6) | (229.9) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from short-term debt, original maturity more than three months | 652.2 | 39.4 | 43.1 | |
Repayments of short-term debt, original maturity more than three months | (655) | (48.1) | (55.5) | |
Net proceeds from (repayments of) short-term debt, original maturity less than three months | 11.6 | (8.4) | (10.7) | |
Proceeds from revolving loan facilities | 853 | 750 | 1,148.5 | |
Repayments of revolving loan facilities | (1,616) | (695.5) | (957) | |
Proceeds from term loans | 800 | 625 | 1,250 | |
Repayments of term loans | (200) | 0 | (1,250) | |
Proceeds from issuance of long term debt | 0.9 | 0 | 0 | |
Repayment of Senior Notes | (584.6) | 0 | 0 | |
Dividend payment | (71) | (76.9) | (57.4) | |
Net proceeds from issuance of Common Stock | 48.5 | 21.9 | 6.2 | |
Payments for purchases of Common Stock held as Treasury Stock | (263.1) | (100.3) | (7.5) | |
Payments for purchases of related party Common Stock held as Treasury Stock | 0 | (469) | 0 | |
Net (payments for) proceeds from foreign currency contracts | (37.9) | (2.1) | 1.5 | |
Payment for business combinations – contingent consideration | (0.8) | (1.1) | 0 | |
Proceeds from mandatorily redeemable noncontrolling interests | 0 | 3.8 | 0 | |
Proceeds from noncontrolling interests | 1.8 | 0 | 1.7 | |
Distributions to noncontrolling interests | (12.2) | (23) | (13.5) | |
Purchase of additional noncontrolling interests | 0 | (4.4) | 0 | |
Distributions to redeemable noncontrolling interests | (9.1) | (14.3) | (20.5) | |
Purchase of additional redeemable noncontrolling interests | (15.8) | 0 | 0 | |
Payment of deferred financing fees | (11.2) | (2.7) | (9.9) | |
Net cash (used in) provided by financing activities | (1,138.2) | (5.7) | 69 | |
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | (113.6) | 44.4 | 8 | |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (896.7) | 317.6 | 311 | |
CASH AND CASH EQUIVALENTS—Beginning of period | 1,238 | 920.4 | 609.4 | |
CASH AND CASH EQUIVALENTS—End of period | 341.3 | 1,238 | 920.4 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||||
Cash paid during the year for interest | 64.7 | 63.7 | 71 | |
Cash paid during the year for income taxes, net of refunds received | 104.8 | 84.1 | 84 | |
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES: | ||||
Accrued capital expenditure additions | 41.2 | 59.2 | 56.7 | |
Issuance of Treasury stock for Bourjois Acquisition | ||||
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES: | ||||
Issuance of Treasury stock for Bourjois acquisition | 376.8 | 0 | 0 | |
CEO | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Net proceeds from issuance of Common Stock | 12.5 | 0 | 0 | |
Payments for purchases of Common Stock held as Treasury Stock | $ (42) | $ 0 | $ 0 | |
[1] | Subsequent to the issuance of the Company’s fiscal 2014 financial statements, the Company determined that amounts presented under depreciation and amortization by operating segment for 2014 and 2013 did not include allocations for corporate depreciation and amortization. The depreciation and amortization for the operating segments was restated by allocating total Corporate depreciation and amortization of $34.5 and $31.9 in fiscal 2014 and 2013, respectively, from Corporate to the three operating segments, consistent with the allocation method used in fiscal 2015. There was no effect on total depreciation and amortization or segment operating income as previously presented. |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS Coty Inc. and its subsidiaries (collectively, the “Company” or “Coty”) engage in the manufacturing, marketing and distribution of fragrances, color cosmetics and skin & body care related products in numerous countries throughout the world. The Company operates on a fiscal year basis with a year-end of June 30 . Unless otherwise noted, any reference to a year preceded by the word “fiscal” refers to the fiscal year ended June 30 of that year. For example, references to “fiscal 2015 ” refer to the fiscal year ending June 30, 2015 . The Company’s revenues generally increase during the second fiscal quarter as a result of increased demand associated with the holiday season. Accordingly, the Company’s financial performance, working capital requirements, cash flow and borrowings experience seasonal variability during the three to six months preceding this season. In June 2013 , the Company completed an initial public offering (“IPO”) in a secondary offering on the New York Stock Exchange (“NYSE”). |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying financial statements of the Company are presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. The Company also consolidates majority-owned entities in the United Arab Emirates, Kingdom of Saudi Arabia, Malaysia, Indonesia, Philippines, Singapore, Hong Kong, China, Japan, South Korea, Thailand, Taiwan and Brazil where the Company has the ability to exercise controlling influence. Ownership interests of noncontrolling parties are presented as noncontrolling interests or redeemable noncontrolling interests, as applicable. Related Parties During fiscal 2015, JAB Holdings B.V. (“JAB”) transferred all of its Coty Inc. Class B shares to JAB Cosmetics B.V. (“JABC”). As of June 30, 2015 , the Company is a majority-owned subsidiary of JABC. Lucresca SE, Agnaten SE and JAB indirectly control JABC and the shares of the Company held by JABC. The Company does not generally enter into transactions with related parties other than certain share transactions with JABC and certain executives as described in Note 22 and 23. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, the market value of inventory, the fair value of acquired assets and liabilities associated with acquisitions, the fair value of share-based compensation, pension and other post-employment benefit costs, the fair value of the Company's reporting units and the assessment of goodwill, other intangible assets and long-lived assets for impairment, income taxes, derivatives and redeemable noncontrolling interests when calculating the impact on Earnings Per Share (“EPS”). Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates and assumptions resulting from continuing changes in the economic environment will be reflected in the Consolidated Financial Statements in future periods. Cash Equivalents Cash equivalents include all highly liquid investments with original maturities of three months or less at the time of purchase. Trade Receivables Trade receivables are stated net of the allowance for doubtful accounts and cash discounts, which is based on the evaluation of the accounts receivable aging, specific exposures, and historical trends. The Company reviews its allowances by assessing factors such as an individual trade receivable aging and liquidity. Trade receivables are written off on a case-by-case basis, net of any amounts that may be collected. Inventories Inventories include items which are considered salable or usable in future periods, and are stated at the lower of cost or market value, with cost being based on standard cost which approximates actual cost on a first-in, first-out basis. Costs include direct materials, direct labor and overhead (e.g., indirect labor, rent and utilities, depreciation, purchasing, receiving, inspection and quality control) and in-bound freight costs. The Company classifies inventories into various categories based upon their stage in the product life cycle, future marketing sales plans and the disposition process. The Company also records an inventory obsolescence reserve, which represents the excess of the cost of the inventory over its estimated realizable value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, and requirements to support forecasted sales. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. Property and Equipment and Other Long-lived Assets Property and equipment is stated at cost less accumulated depreciation or amortization. The cost of renewals and betterments is capitalized and depreciated. Expenditures for maintenance and repairs are expensed as incurred. Property and equipment that is disposed of through sale, trade-in, donation, or scrapping is written off, and any gain or loss on the transaction, net of costs to dispose, is recorded in Gain (loss) on sale of assets. Depreciation and amortization are computed principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives Buildings 20-40 years Marketing furniture and fixtures 3-5 years Machinery and equipment 2-15 years Computer equipment and software 2-5 years Property and equipment under capital leases and leasehold improvements Lesser of lease term or economic life Intangible assets with finite lives are amortized principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives License agreements Lesser of agreement term or economic life Customer relationships 5-20 years Trademarks 5-20 years Product formulations 3-7 years Long-lived assets, including tangible and intangible assets with finite lives, are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. When such events or changes in circumstances occur, a recoverability test is performed comparing projected undiscounted cash flows from the use and eventual disposition of an asset or asset group to its carrying value. If the projected undiscounted cash flows are less than the carrying value, an impairment charge would be recorded for the excess of the carrying value over the fair value. The Company estimates fair value based on the best information available, including discounted cash flows and/or the use of third-party valuations. Goodwill and Other Indefinite-lived Intangible Assets Goodwill is calculated as the excess of the cost of purchased businesses over the fair value of their underlying net assets. Indefinite-lived other intangible assets principally consist of trademarks. Goodwill is allocated and evaluated at the reporting units level which are the Company’s operating segments. The Company identifies its operating segments, which are also its reportable segments, by assessing whether the components of the Company’s reportable segments constitute businesses for which discrete financial information is available and management of each operating segment regularly reviews the operating results of those components. The Company has identified three reporting units. Fragrance, Skin & Body Care, and Color Cosmetics are considered operating segments and each a reporting unit. The Company allocates goodwill to one or more reporting units that are expected to benefit from synergies of the business combination. Goodwill and other intangible assets with indefinite lives are not amortized, but are evaluated for impairment annually as of May 1 or whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Impairment testing for goodwill is performed in two steps: (i) the determination of possible impairment, based upon the fair value of a reporting unit as compared to its carrying value; and (ii) if there is a possible impairment indicated, this step measures the amount of impairment loss, if any, by comparing the implied fair value of goodwill with the carrying amount of that goodwill. The fair values of indefinite-lived other intangible assets are estimated and compared to their respective carrying values. The trademarks’ fair values are based upon the income approach, utilizing the relief from royalty or excess earnings methodology. An impairment loss is recognized when the estimated fair value of the intangible asset is less than its carrying value. Deferred Financing Fees The Company capitalizes costs related to the issuance of debt instruments, as applicable. Such costs are amortized over the contractual term of the related debt instrument in interest expense, net using the straight line method, which approximates the effective interest method, in the Consolidated Statements of Operations. Noncontrolling Interests and Redeemable Noncontrolling Interests Interests held by partners in consolidated majority-owned subsidiaries are presented as noncontrolling interests, which represents the noncontrolling stockholders’ interests in the underlying net assets of the Company’s consolidated majority-owned subsidiaries. Noncontrolling interests that are not redeemable are reported in the equity section of the Consolidated Balance Sheets. Noncontrolling interests, where the Company may be required to repurchase the noncontrolling interest under a put option or other contractual redemption requirement are reported in the Consolidated Balance Sheets between liabilities and equity, as redeemable noncontrolling interests. The Company adjusts the redeemable noncontrolling interests to the redemption values on each balance sheet date with changes recognized as an adjustment to retained earnings, or in the absence of retained earnings, as an adjustment to additional paid-in capital. Revenue Recognition Revenue is recognized when realized or realizable and earned. The Company’s policy is to recognize revenue when risk of loss and title to the product transfers to the customer, which usually occurs upon delivery. Net revenues comprise gross revenues less customer discounts and allowances, actual and expected returns (estimated based on returns history and position in product life cycle) and various trade spending activities. Trade spending activities primarily relate to advertising, product promotions and demonstrations, some of which involve cooperative relationships with customers. Returns represent 3.3% , 3.9% and 3.7% of gross revenue after customer discounts and allowances in fiscal 2015 , 2014 and 2013 , respectively. Trade spending activities recorded as a reduction to gross revenue after customer discounts and allowances represent 9.3% , 9.4% and 9.4% in fiscal 2015 , 2014 and 2013 , respectively. Cost of Sales Cost of sales includes all of the costs to manufacture the Company’s products. For products manufactured in the Company’s own facilities, such costs include raw materials and supplies, direct labor and factory overhead. For products manufactured for the Company by third-party contractors, such costs represent the amounts invoiced by the contractors. Cost of sales also includes royalty expense associated with license agreements as discussed in Note 11. Additionally, shipping costs and depreciation and amortization expenses related to manufacturing equipment and facilities are included in Cost of sales in the Consolidated Statements of Operations. Selling, General and Administrative Expenses Selling, general and administrative expenses include advertising and promotional costs and research and development costs. Also included in Selling, general and administrative expenses are share-based compensation, certain warehousing fees, non-manufacturing overhead, personnel and related expenses, rent on operating leases, and professional fees. Advertising and promotional costs are expensed as incurred and totaled $1,007.7 , $1,070.0 and $1,072.3 in fiscal 2015 , 2014 and 2013 , respectively. Included in advertising and promotional costs are $69.8 , $67.5 , and $65.2 of depreciation of marketing furniture and fixtures, such as product displays, in fiscal 2015 , 2014 and 2013 , respectively. Research and development costs are expensed as incurred and totaled $47.4 , $46.5 and $44.6 in fiscal 2015 , 2014 and 2013 , respectively. Share-Based Compensation Common Stock Common shares are available to be awarded for the exercise of vested stock options, the settlement of restricted stock units (“RSUs”), and the conversion of Series A Preferred Stock. As of June 12, 2013, the effective date of the amendment and restatement of the share-based compensation plans, the Company’s share-based compensation plans for common shares are accounted for as equity plans, as the plans no longer allow for cash settlement or contain put features to sell shares back to the Company. Share-based compensation expense is measured and fixed at the grant date, based on the estimated fair value of the award and is recognized on a straight-line basis, net of estimated forfeitures, over the employee’s requisite service period. The fair value of stock options is determined using the Black-Scholes valuation model using the assumptions discussed in Note 23. The fair value of RSUs is determined on the date of grant based on the Company’s stock price. Prior to June 12, 2013, the Company’s Pre-IPO share-based compensation plans for common stock were accounted for as liability plans as they allowed for cash settlement or contained put features to sell shares back to the Company for cash. Accordingly, share-based compensation expense was measured based on the fair value of the award on each reporting date and was recognized as an expense to the extent vested until the award was settled. If the award was settled for shares, the shares were included in the number of shares of common stock outstanding and the fair value of the shares was re-measured at each reporting period date through Selling, general and administrative expense as share-based compensation expense if the shares were classified as Accrued expenses and other current liabilities. Once the holders had retained the risks and rewards of share ownership by holding the shares for a reasonable period of time after they were vested and issued, generally a period of six months from vesting and issuance, the liability was reclassified, in the Consolidated Balance Sheets, between liabilities and equity as Redeemable common stock at fair value. Subsequent changes in fair value of the shares classified as Redeemable common stock were recognized in Retained earnings or, in the absence of Retained earnings, in Additional paid-in capital. Preferred Stock The Company has issued Series A Preferred Stock that can be converted into Class A Common Stock or settled in cash. Series A Preferred Stock is accounted for using liability plan accounting to the extent the award is expected to be settled in cash. Accordingly, share-based compensation expense for the liability plans is measured based on the fair value of the award on each reporting date and recognized as an expense to the extent earned. Share-based compensation expense for the portion of the grants that the Company is not required to settle in cash is measured based on the estimated fair value of the award at the time it is known that they are going to be settled in shares and is recognized on a straight-line basis, net of estimated forfeitures, over the employee’s requisite service period. All Series A Preferred Stock amounts as of June 30, 2015 are presented as liabilities. Only the number of outstanding shares is presented under Preferred Stock in Equity. The fair value of Series A Preferred Stock is determined using the Black-Scholes valuation model using the weighted-average assumptions discussed in Note 23. Treasury Stock The Company accounts for treasury stock under the cost method. When shares are reissued or retired from treasury stock they are accounted for at an average price. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of additional paid-in-capital in the Company’s Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a reduction of additional paid-in-capital to the extent that there are treasury stock gains to offset the losses. If there are no treasury stock gains in additional paid-in-capital, the losses upon re-issuance of treasury stock are recorded as a reduction of retained earnings in the Company’s Consolidated Balance Sheets. Income Taxes The Company is subject to income taxes in the U.S. and various foreign jurisdictions. The Company accounts for income taxes under the asset and liability method. Therefore, income tax expense is based on reported income before income taxes, and deferred income taxes reflect the effect of temporary differences between the carrying amounts of assets and liabilities that are recognized for financial reporting purposes and the carrying amounts that are recognized for income tax purposes. Classification of deferred tax assets and liabilities corresponds with the classification of the underlying assets and liabilities, giving rise to the temporary differences or the period of expected reversal, as applicable. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized based on currently available evidence. The Company is subject to tax audits in various jurisdictions. The Company regularly assesses the likely outcomes of such audits in order to determine the appropriateness of liabilities for unrecognized tax benefits (“UTBs”). The Company classifies interest and penalties related to UTBs as a component of the provision for income taxes. For UTBs, the Company first determines whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority. As the determination of liabilities related to UTBs and associated interest and penalties requires significant estimates to be made by the Company, there can be no assurance that the Company will accurately predict the outcomes of these audits, and thus the eventual outcomes could have a material impact on the Company’s operating results or financial condition and cash flows. It is the Company’s intention to permanently reinvest undistributed earnings and profits from the Company’s foreign operations that have been generated through June 30, 2015 , and future plans do not demonstrate a need to repatriate the foreign amounts to fund U.S. operations. Accordingly, no provision has been made for U.S. income taxes on undistributed earnings of foreign subsidiaries as of June 30, 2015 . It is not practicable for the Company to determine the amount of additional income and withholding taxes that may be payable in the event the remaining undistributed earnings are repatriated. Restructuring Costs Charges incurred in connection with plans to restructure and integrate acquired businesses or in connection with cost-reduction initiatives that are initiated from time to time are included in Restructuring costs in the Consolidated Statements of Operations if such costs are directly associated with an exit or disposal activity, a reorganization, or with integrating an acquired business. Business Combinations The Company accounts for business combinations using the acquisition method of accounting. The acquisition method of accounting requires that purchase price, including the fair value of contingent consideration, of the acquisition be allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. Payments made for contingent consideration recorded as part of an acquisition’s purchase price are reflected as financing activities in the Company’s Consolidated Statements of Cash Flows, if paid more than three months after the acquisition date. If paid within three months of the acquisition date, these payments are reflected as investing activities in the Company’s Consolidated Statements of Cash Flows. The Company remeasures the fair value of contingent consideration at each reporting period using a probability-adjusted discounted cash flow method based on significant inputs not observable in the market and any change in the fair value from either the passage of time or events occurring after the acquisition date, is recorded in earnings. Contingent consideration payments that exceed the acquisition date fair value of the contingent consideration are reflected as an operating activity in the Consolidated Statements of Cash Flows. For acquisitions completed prior to January 1, 2009, contingent consideration is recognized when the contingency is resolved pursuant to the authoritative guidance on business combinations in effect at the date of the closing of the acquisition and reflected as an investing activity in the Consolidated Statements of Cash Flows. Acquisition-related costs, such as banking, legal, accounting and other costs incurred in connection with an acquisition are expensed as incurred. The Company includes the results of all acquisitions in its Consolidated Financial Statements from the date of acquisition. Fair Value Measurements The following fair value hierarchy is used in selecting inputs for those assets and liabilities measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The Company evaluates these inputs and recognizes transfers between levels, if any, at the end of each reporting period. The hierarchy consists of three levels: Level 1 - Valuation based on quoted market prices in active markets for identical assets or liabilities; Level 2 - Valuation based on inputs other than Level 1 inputs that are observable for the assets or liabilities either directly or indirectly; Level 3 - Valuation based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and supported by little or no observable market activity. The Company has not elected the fair value measurement option for any financial instruments or other assets not required to be measured at fair value on a recurring basis. Derivative Instruments and Hedging Activities The Company utilizes derivative instruments to manage certain foreign currency and interest rate exposures. The Company may also utilize derivative instruments to hedge anticipated transactions where there is a high probability that anticipated exposures will materialize. Derivative financial instruments are recorded as either assets or liabilities on the balance sheet and are measured at fair value. For derivatives not designated as hedging instruments, changes in fair value are recorded in the line item in the Consolidated Statements of Operations to which the derivative relates. For derivatives designated as hedging instruments, changes in the fair value are recorded in Accumulated other comprehensive income (loss) (“AOCI/(L)”). Gains and losses deferred in AOCI/(L) are then recognized in net income (loss) in a manner that matches the timing of the actual income or expense related to the hedging instruments with the hedged transaction or if it is determined that the derivatives are not highly effective or have ceased to be highly effective. The gains and losses related to designated hedging instruments are also recorded in the line item in the Consolidated Statements of Operations to which the derivative relates. Foreign Currency Exchange gains or losses incurred on transactions conducted by one of the Company’s operations in a currency other than the operation’s functional currency are reflected in Cost of sales or operating expenses. Net gains (losses) of $7.9 , $(18.7) and $0.1 in fiscal 2015 , 2014 and 2013 , respectively resulting from non-financing foreign exchange currency transactions are included in the Consolidated Statements of Operations. Assets and liabilities of foreign operations are translated into U.S. dollars at the rates of exchange in effect at the end of the reporting period. Income and expense items are translated at the average exchange rates prevailing during each reporting period presented. Translation gains or losses are reported as cumulative adjustments in AOCI/(L). Net losses of $4.1 , $2.8 and $0.2 in fiscal 2015 , 2014 and 2013 , respectively, resulting from financing foreign exchange currency transactions are included in Interest expense, net and Other expense (income), net in the Consolidated Statements of Operations. Recently Adopted Accounting Pronouncements In March 2013, the FASB issued authoritative guidance to resolve the diversity in practice concerning the release of the cumulative translation adjustment (“CTA”) into net income (i) when a parent sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity, and (ii) in connection with a step acquisition of a foreign entity. This amended guidance requires that CTA be released in net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided, and that a pro rata portion of the CTA be released into net income upon a partial sale of an equity method investment in a foreign entity only. In addition, the amended guidance clarifies the definition of a sale of an investment in a foreign entity to include both events that result in the loss of a controlling financial interest in a foreign entity and events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately prior to the date of acquisition. The CTA should be released into net income upon the occurrence of such events. This guidance became effective prospectively for the Company’s fiscal 2015 first quarter. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In July 2015, the FASB issued authoritative guidance related to Defined Benefits Pension Plans, Defined Contribution Pension Plans, and Health and Welfare Benefit Plans: I. Fully Benefit-Responsive Investment Contracts; II. Plan Investment Disclosures; and III. Measurement Date Practical Expedient. This three-part guidance simplifies current benefit plan accounting and requires (i) fully benefit responsive investment contracts to be measured, presented, and disclosed only at contract value and accordingly removes the requirement to reconcile their contract value to fair value; (ii) benefit plans to disaggregate their investments measured using fair value by general type, either on the face of the financial statements or in the notes to the financial statements; (iii) the net appreciation or depreciation in investments for the period to be presented in the aggregate rather than by general type, and removes certain disclosure requirements relevant to individual investments that represent five percent or more of net assets available for benefits. Further, the amendments eliminate the requirement to disclose the investment strategy for certain investments that are measured using Net Asset Value (“NAV”) per share using the practical expedient. Part III of the amendment provides a practical expedient to permit employee benefit plans to measure investments and investment-related accounts as of the month-end that is closest to the plan’s fiscal year-end, when the fiscal period does not coincide with a month-end, while requiring certain additional disclosures. The guidance in Parts I and II of this standard are effective retrospectively for fiscal year 2017 and early adoption is permitted. The guidance in Part III of this standard are effective prospectively for fiscal 2017 and early adoption is permitted. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements. In July 2015, the FASB issued authoritative guidance for simplifying the measurement of inventory. The amendment requires an entity to measure most inventory at the lower of cost and net realizable value, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. This amendment will not apply to inventories that are measured using either the last-in, first-out (LIFO) method or the retail inventory method. This amendment will be effective for the Company in fiscal 2018 and early adoption is permitted. The Company is evaluating the impact this amendment will have on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued authoritative guidance to clarify the accounting treatment for fees paid by a customer in cloud computing arrangements. Under the revised guidance, if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The revised guidance will not change a customer’s accounting for service contracts. The guidance becomes effective for the Company’s fiscal 2017 first quarter, with early adoption permitted. Upon adoption, a reporting entity can elect to apply the new guidance prospectively after the effective date, or retrospectively. The Company is currently evaluating the impact of adoption of this standard on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued authoritative guidance on the treatment of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This amendment will be effective for the Company’s interim and annual consolidated financial statements for fiscal 2017 using a retrospective approach. The Company is evaluating the impact this amendment will have on the Company’s Consolidated Financial Statements. In February 2015, the FASB issued authoritative guidance on a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to reevaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. This amendment will be effective for the Company’s interim and annual consolidated financial statements for fiscal 2017 using either a modified retrospective, or a retrospective approach. The Company is evaluating the impact this amended guidance will have on the Company’s Consolidated Financial Statements. In June 2014, the FASB issued authoritative guidance that implements a common revenue model that will enhance comparability across industries and require enhanced disclosures. The new standard introduces a five step principles based process to determine the timing and amount of revenue ultimately expected to be received by the customer. This amendment will be effective for the Company’s interim and annual consolidated financial statements for fiscal 2019 with either retrospective or modified retrospective treatment applied, and the Company is evaluating the impact this will have on the Company’s Consolidated Financial Statements upon implementation. In May 2014, the FASB issued authoritative guidance on the treatment of a stock-based compensation award issued with a performance target that could be achieved subsequent to the requisite service period. The gu |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING Operating segments (referred to as “segments”) include components of the enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company has designated its Chief Executive Officer as the CODM. The Company has determined that its operating and reportable segments are Fragrances, Color Cosmetics and Skin & Body Care (also referred to as “segments”). The reportable segments also represent the Company’s product groupings. In addition to reflecting the Company’s business model, these segments also reflect how the CODM reviews operating results when making decisions about resources to be allocated to the segments and when assessing their performance. Fragrances products include a variety of men’s and women’s products and include fashion designer, celebrity and lifestyle brands. Color Cosmetics products include nail and other color cosmetics, consisting of lip, eye and other facial color products. Skin & Body Care products include shower gels, deodorants, skin care and sun treatment products. During the first quarter of fiscal 2015, the Company evaluated the impact of the Organizational Redesign restructuring program (see Note 7) on the determination of its operating segments and reporting units. The Company concluded that its operating and reportable segments continue to be Fragrances, Color Cosmetics and Skin & Body Care. However, based on the organizational changes that result from the Organizational Redesign and the impact on the information used by the CODM, the Company reclassified the revenues and costs associated with one brand from the Fragrances to the Skin & Body Care operating segment. The revenues and costs associated with the reclassification of one brand from Fragrances to Skin & Body Care have been reflected for the fiscal years ending 2015, 2014, and 2013. Further, the Company has reclassified amounts presented for depreciation and amortization to reflect the fully allocated amounts included in Operating income (loss) of the segments. Revenue and cost relating to a brand that generates revenues from more than one of the Company’s product categories are allocated in their entirety to one of the operating segments based on the information used by the CODM, its organizational structure, and the product category that is deemed to be the strategic priority for the brand. The Company evaluates segment performance based on several factors, including Operating income (loss). The Company uses Operating income (loss) as a measure of the segment performance as it excludes the impact of corporate-driven decisions related to interest expense and income taxes. The items within Corporate relate to corporate-based responsibilities and decisions and are not used by the CODM to measure the underlying performance of the segments. Corporate primarily includes a component of share-based compensation expense, restructuring costs and certain other expense items not attributable to ongoing operating activities of the segments. For grants issued prior to June 12, 2013, the effective date of the share-based compensation plan amendments, the component of share-based compensation included in Corporate represents the difference between the grant date fair value and the fair value at June 12, 2013 using equity plan accounting. Corporate also includes share-based compensation expense related to the Special Share Purchase Transaction as discussed in Note 23. With the exception of goodwill and acquired intangible assets, the Company does not identify or monitor assets by segment. The Company does not present assets by reportable segment since various assets are shared between reportable segments. The allocation of goodwill and acquired intangible assets by segment is presented in Note 11. Year Ended June 30, SEGMENT DATA 2015 2014 2013 Net revenues: Fragrances $ 2,178.3 $ 2,324.0 $ 2,312.8 Color Cosmetics 1,445.0 1,366.2 1,468.5 Skin & Body Care 771.9 861.4 867.8 Total $ 4,395.2 $ 4,551.6 $ 4,649.1 Depreciation and amortization (a) : Fragrances $ 90.5 $ 102.8 $ 96.3 Color Cosmetics 99.9 92.6 91.3 Skin & Body Care 39.2 50.8 54.5 Corporate 1.3 4.5 17.5 Total $ 230.9 $ 250.7 $ 259.6 Operating income (loss): Fragrances $ 352.7 $ 341.2 $ 354.9 Color Cosmetics 158.5 154.2 208.8 Skin & Body Care 33.1 (337.3 ) 9.1 Corporate (149.2 ) (132.4 ) (178.4 ) Total $ 395.1 $ 25.7 $ 394.4 Reconciliation: Operating income $ 395.1 $ 25.7 $ 394.4 Interest expense, net 73.0 68.5 76.5 Loss on early extinguishment of debt 88.8 — — Other expense (income), net — 1.3 (0.8 ) Income (loss) before income taxes $ 233.3 $ (44.1 ) $ 318.7 (a) S ubsequent to the issuance of the Company’s fiscal 2014 financial statements, the Company determined that amounts presented under depreciation and amortization by operating segment for 2014 and 2013 did not include allocations for corporate depreciation and amortization. The depreciation and amortization for the operating segments was restated by allocating total Corporate depreciation and amortization of $34.5 and $31.9 in fiscal 2014 and 2013, respectively, from Corporate to the three operating segments, consistent with the allocation method used in fiscal 2015. There was no effect on total depreciation and amortization or segment operating income as previously presented. Year Ended June 30, 2015 2014 2013 GEOGRAPHIC DATA Net revenues: Americas (a) $ 1,696.0 $ 1,703.8 $ 1,914.8 EMEA (b) 2,166.0 2,302.9 2,188.9 Asia Pacific (c) 533.2 544.9 545.4 Total $ 4,395.2 $ 4,551.6 $ 4,649.1 (a) includes North & South America (b) includes Europe, Middle East and Africa (c) includes Asia and Australia Year Ended June 30, 2015 2014 2013 Net revenues: U.S. $ 1,343.1 $ 1,338.6 $ 1,537.4 Switzerland (a) : Travel Retail and Export 482.9 497.8 500.6 United Kingdom 402.5 415.1 388.1 Netherlands 83.2 93.8 98.1 Domestic 30.2 34.8 36.3 Total Switzerland 998.8 1,041.5 1,023.1 All other 2,053.3 2,171.5 2,088.6 Total $ 4,395.2 $ 4,551.6 $ 4,649.1 Long-lived assets: U.S. $ 2,713.9 $ 2,921.2 $ 2,924.3 All other 1,230.6 799.0 1,076.2 Total $ 3,944.5 $ 3,720.2 $ 4,000.5 (a) The Company’s subsidiaries in Switzerland generate revenues from sales in the United Kingdom (“U.K.”), the Netherlands and domestic sales in Switzerland as well as the Travel Retail and Export business (which sells to a large number of travel outlets, including duty free shops, airlines and other tax-free zones in several countries), as specified separately in the table above. For Net revenues, a major country is defined as a group of subsidiaries in a country with combined revenues greater than 10% of consolidated net revenues or as otherwise deemed significant. For Long-lived assets, a major country is defined as a group of subsidiaries within a country with combined long-lived assets greater than 10% of consolidated long-lived assets or as otherwise deemed significant. Long-lived assets include property and equipment, goodwill and other intangible assets. No customer or group of affiliated customers accounted for more than 10% of the Company’s Net revenues in fiscal 2015 , 2014 and 2013 or are otherwise deemed significant. Within the Company’s reportable segments, product categories exceeding 5% of consolidated net revenues are presented below: Year Ended June 30, PRODUCT CATEGORY 2015 2014 2013 Fragrances: Designer 36.9 % 37.4 % 35.8 % Lifestyle 7.4 7.6 6.9 Celebrity 5.3 6.0 7.0 Total 49.6 % 51.0 % 49.7 % Color Cosmetics: Nail Care 14.9 % 14.0 % 16.1 % Other Color Cosmetics 18.0 16.0 15.5 Total 32.9 % 30.0 % 31.6 % Skin & Body Care: Body Care 10.9 % 12.6 % 12.3 % Skin Care 6.6 6.4 6.4 Total 17.5 % 19.0 % 18.7 % Total 100.0 % 100.0 % 100.0 % |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS The company completed one acquisition during fiscal 2015: Acquired entity Date acquired Purchase Price Segment Bourjois cosmetics brand ("Bourjois") April 1, 2015 $ 376.8 Color Cosmetics Bourjois On April 1, 2015, the Company completed its purchase of 100% of the net assets of Bourjois from Chanel International B.V. (“CHANEL”) pursuant to the Stock Purchase Agreement, dated March 12, 2015, between the Company and CHANEL (the “Stock Purchase Agreement”), in order to further strengthen its position in the global color market. The Company issued to its foreign subsidiaries 15.5 million shares of the Company’s Class A Common Stock for $376.8 in cash and subsequently exchanged these shares with CHANEL as consideration for Bourjois. The shares had a fair value of $376.8 based on the closing price of the Company’s Class A Common Stock on the New York Stock Exchange on April 1, 2015. The business purpose of having the Company’s foreign subsidiaries (rather than the parent company) exchange shares with CHANEL was to acquire the respective Bourjois foreign entities based in France, the Netherlands, Switzerland, and the United Kingdom by the Company’s foreign entity organized in the same countries, wherever feasible, in order to make the post-acquisition integration of Bourjois’ foreign businesses and Coty’s foreign businesses as efficient as possible. None of the Bourjois entities acquired from CHANEL were organized or operated as a business in the United States, and thus, none of the shares issued to CHANEL were issued by a U.S. subsidiary. Under applicable tax principles, exchanges of shares between the Company and its affiliates do not result in a taxable gain or loss for the Company or its foreign subsidiaries. The fair value of assets acquired and liabilities assumed from our acquisition of Bourjois was based on a preliminary valuation and the Company’s estimates and assumptions are subject to change within the measurement period. In particular, the Company is still evaluating the fair value of certain intangible assets and finalizing the accounting for income taxes. As the Company finalizes the fair value of assets acquired and liabilities assumed, additional purchase price adjustments may be recorded during the measurement period in fiscal 2016. The following table summarizes the preliminary consideration and the allocation of the purchase price to the net assets acquired in the Bourjois acquisition: Consideration: Fair Value of Coty Inc. Class A Stock $ 376.8 Purchase price $ 376.8 Recognized amounts of identifiable assets and liabilities assumed: Estimated Estimated Cash $ 12.3 Inventories 31.5 Property and equipment 9.0 Goodwill 194.8 Trademark 112.0 Indefinite Customer relationships 66.0 13-14 Product formulations 1.1 3 Net working capital 10.7 Net other assets/(liabilities) (3.9) Deferred tax liability, net (56.7) Total identifiable net assets: $ 376.8 Goodwill is deductible for tax purposes and is attributable to expected synergies. Goodwill of $148.7 , $11.1 , and $35.0 is allocated to the Color Cosmetics, Skin & Body Care, and Fragrances segments, respectively. For the year ended June 30, 2015, Net revenues and Net loss of Bourjois included in the Company’s Consolidated Statements of Operations from the date of acquisition were $46.1 and $(16.1) , respectively. Transaction-related costs associated with this acquisition of $ 3.9 during fiscal 2015 were expensed as incurred and included in Acquisition-related costs in the Consolidated Statements of Operations. Unaudited Pro Forma Information The unaudited historical Consolidated Statements of Operations in the table below summarizes the combined results of operations of Bourjois on a pro forma basis, as though the companies had been combined on July 1, 2013, and gives effect to pro forma events that are: (1) directly attributable to the transaction, (2) factually supportable, and (3) expected to have a continuing impact on the combined results. The unaudited pro forma results include adjustments for non-recurring transaction costs (including distributor termination fees, transaction specific costs, and the amortization of the inventory step-up) and incremental intangible asset amortization to be incurred on a recurring basis, based on preliminary values of each identifiable intangible asset. Pro forma adjustments were tax-effected at the Company’s statutory rates. The pro forma Consolidated Statements of Operations is presented for informational purposes only and may not be indicative of the results of operations that would have been achieved if the acquisition had taken place on July 1, 2013 or that may occur in the future, and does not reflect future synergies, integration costs, or other such costs or savings. The pro forma Consolidated Statements of Operations for fiscal 2015 and 2014 are as follows: Year Ended June 30, 2015 2014 Pro forma Net revenues $ 4,553.2 $ 4,788.7 Pro forma Operating income 420.2 17.4 Pro forma Net income (loss) 275.3 (77.0) Pro forma Net income (loss) attributable to Coty Inc. 248.4 (110.2) Pro forma Net income (loss) attributable to Coty Inc. per common share Basic $ 0.68 $ (0.28 ) Diluted $ 0.66 $ (0.28 ) The Company completed two acquisitions during fiscal 2014: Acquired entity Date acquired Purchase Price Segment Lena White, Ltd. (“Lena White”) January 2, 2014 $ 11.6 Color Cosmetics StarAsia Group Pte Ltd. (“StarAsia”) July 1, 2013 $ 23.5 All segments Lena White On January 2, 2014, the Company executed a Share Purchase Agreement (“Lena White SPA”) and acquired 100% of the shares of Lena White, a U.K. distribution business for approximately £7.0 million ( $11.6 ), after post-closing adjustments, which allowed the Company to integrate sales and distribution of certain Color Cosmetic products in the U.K. The acquisition allowed the Company to integrate sales and distribution of certain Color Cosmetic products in the U.K. Included in the consideration paid is £0.5 million ( $0.8 ) that the Company deposited into escrow under the Lena White SPA, which will be released to the seller subject to subsequent adjustments for indemnities against the seller’s warranties. Also included in the consideration paid is £0.7 million ( $1.1 ) of estimated contingent consideration calculated using a pre-determined formula in the SPA, payable upon completion of a three -year period following the execution of the Lena White SPA and was subject to adjustments based on final calculations. During December 2014, the Company settled a portion of the contingent consideration for £0.5 ($0.8) and recorded an adjustment of £0.4 ($0.6) which was recorded in Selling, general, and administrative expenses in the Consolidated Statements of Operations. The remaining contingent consideration will range between nil and £0.6 million ( $0.9 ). The following table summarizes the consideration and purchase price allocation of net assets acquired in the Lena White acquisition: Consideration: Cash paid $ 8.3 Net cash paid to seller for net working capital adjustments 0.3 Noncash consideration for pre-acquisition trade receivables 1.9 Contingent consideration payable 1.1 Purchase price $ 11.6 Estimated fair value Estimated useful life (in years) Goodwill $ 2.0 Customer relationships 4.2 7 Other net assets 5.4 Total identifiable net assets $ 11.6 The goodwill is not deductible for tax purposes and represents expected benefits associated with the Company’s control over future expansion in the U.K. and the Color Cosmetics segment. Goodwill of $2.0 was allocated to the Color Cosmetics segment. For the year ended June 30, 2014, Net revenues and Net loss of Lena White included in the Company’s Consolidated Statements of Operations from the date of acquisition were $7.8 and $(1.7) , respectively. Transaction-related costs associated with this acquisition of $0.1 during the year ended June 30, 2014 were expensed as incurred and included in Selling, general, and administrative expenses in the Consolidated Statements of Operations. StarAsia On July 1, 2013, the Company executed a Share Purchase Agreement and acquired 100% of the shares of StarAsia for net consideration of $23.5 , after final post-closing adjustments. StarAsia is a regional distribution company that acted as a third party distributor of the Company’s fragrance, color cosmetics and skin & body care products in South East Asia, as well as beauty products supplied by parties other than the Company. The following tables summarize the consideration and purchase price allocation to the net assets acquired in the StarAsia acquisition: Consideration: Cash paid $ 25.0 Noncash consideration for pre-acquisition trade receivables 2.0 Net working capital adjustment received from seller (3.5 ) Purchase price $ 23.5 Estimated fair value Estimated useful life (in years) Goodwill $ 11.5 Customer relationships 7.4 12 Other net assets 4.6 Total identifiable net assets $ 23.5 The goodwill is not deductible for tax purposes and represents expected benefits associated with the Company’s control over future expansion in Asia and all of the Company's segments. Goodwill of $7.0 , $3.8 , and $0.7 is allocated to the Skin & Body Care, Fragrances and Color Cosmetics segments, respectively. For the year ended June 30, 2014, Net revenues and Net loss included in the Company’s Consolidated Statements of Operations from the date of acquisition were $24.6 and $(4.4) , respectively. Transaction-related costs associated with this acquisition of $0.4 and $1.1 during fiscal 2014 and 2013 were expensed as incurred and included in Selling, general, and administrative expenses in the Consolidated Statements of Operations. No transaction-related costs were incurred in fiscal 2015 for the StarAsia acquisition. |
ACQUISITION-RELATED COSTS ACQUI
ACQUISITION-RELATED COSTS ACQUISITION-RELATED COSTS | 12 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
ACQUISITION-RELATED COSTS | ACQUISITION-RELATED COSTS Acquisition-related costs for fiscal 2015, 2014, and 2013 are presented below: 2015 2014 2013 Transaction-related costs $ 34.1 $ 0.7 $ 8.9 $ 34.1 $ 0.7 $ 8.9 Transaction-related costs -Transaction-related costs represent external costs directly related to acquiring a company, for both completed and/or contemplated acquisition offers and can include finder’s fees, legal, accounting, valuation and other professional or consulting fees. Transaction-related costs in fiscal 2015 primarily represents costs incurred for the acquisition of Bourjois for $3.9 as described in Note 4, and costs related for the planned merger with Procter & Gamble’s fine fragrance, color cosmetics, and hair color businesses (the “P&G Beauty Business”) for $30.2 . Transaction-related costs in fiscal 2014 primarily represent costs incurred for the acquisitions of StarAsia for $0.4 , and Lena White and $0.1 as described in Note 4. Transaction-related costs in fiscal 2013 primarily relate to additional charges of $6.7 resulting from the outcome of the arbitration proceeding associated with the TJoy acquisition and costs directly related to contemplated business combinations. |
JOINT VENTURE ARRANGEMENTS
JOINT VENTURE ARRANGEMENTS | 12 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture Arrangements | JOINT VENTURE ARRANGEMENTS Saudi Arabia Effective December 28, 2014, the Company entered into an agreement through a majority-owned subsidiary and a third party to create a new entity in Saudi Arabia (See Note 21). United Arab Emirates On January 1, 2014, the Company, through a majority-owned subsidiary Coty Middle East and two third parties, entered into a shareholders agreement (“U.A.E. Shareholders Agreement”) to create a new subsidiary (“U.A.E. JV”) in the United Arab Emirates (“U.A.E”). In connection with the capitalization of the JV, the Company contributed 18.0 million AED ( $4.9 ) in cash and the third parties contributed 6.0 million AED ( $1.6 ). The U.A.E. JV focuses on the sale, promotion and distribution of fragrances, skin and body care and color cosmetics products in the local markets of the U.A.E. The Company guaranteed up to 18.0 million AED ( $4.9 ) in bank financing to support initial operation requirements if required and as a result of this additional financing requirement, the U.A.E. JV was determined to be a VIE during the fiscal year ending June 30, 2015 and 2014. The Company was considered the primary beneficiary with 49% ownership since the Company has: (a) the power to direct, supervise, and manage the activities of the VIE that most significantly impact the entity’s economic performance, and (b) the obligation to absorb losses of the entity that could potentially be significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. Accordingly, the Company includes the assets and liabilities and results of operations of the U.A.E. JV in its consolidated financial statements. The Company is required under the U.A.E. Shareholders Agreement to purchase all of the shares held by one of the third parties equal to 25% of the outstanding shares of the U.A.E. JV at the termination of the agreement. The Company has determined such shares to be a mandatorily redeemable financial instrument that is recorded as a liability in Other noncurrent liabilities on the Consolidated Balance Sheet. The liability is calculated based upon a pre-determined formula in accordance with the shareholders agreement. As of June 30, 2015 and 2014, the liability amounted to $6.1 and $3.7 , of which $5.1 and $3.7 , respectively, was recorded in Other noncurrent liabilities and $1.0 and nil , respectively, was recorded in Accrued expenses and other current liabilities, respectively. The assets of the JV are restricted in that they are not available for general business use outside the context of the U.A.E. JV and the creditors (or beneficial interest holders) do not have recourse to the Company or to its other assets. The U.A.E. JV has total assets and total liabilities of $20.1 and $10.4 as of June 30, 2015, and $18.0 and $10.5 as of June 30, 2014, respectively. Brazil On April 4, 2013, the Company entered into agreements with a third party to establish an entity that exclusively markets and sells beauty products in retail channels in Brazil. The third party provided 4.9 million Brazilian reais ( $2.2 ) of funding for 49% of the shares of the entity during the year ended June 30, 2014. The funding is classified as Other noncurrent liabilities as of June 30, 2015 and 2014 since the Company is obligated to repay the funding to the third party on April 4, 2023, which is the maximum contract term. The liability is calculated as the combination of contributed capital and the pro-rata share of income less dividends paid to the third party and was $0.0 and $1.8 at June 30, 2015, and 2014, respectively. The third party is entitled to its proportionate share of the earnings of the Brazil entity, payable annually for the expected life of the contract. |
RESTRUCTURING COSTS
RESTRUCTURING COSTS | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | RESTRUCTURING COSTS Restructuring costs for the years ended June 30, 2015 , 2014 and 2013 are presented below: Year Ended June 30, 2015 2014 2013 Organizational Redesign $ 58.6 $ 13.0 $ — Acquisition Integration Program 15.3 — — Productivity Program 2.1 14.2 25.3 China Optimization (0.6 ) 9.8 — Other restructuring programs — 0.3 4.1 Total $ 75.4 $ 37.3 $ 29.4 Organizational Redesign During the fourth quarter of fiscal 2014, the Company’s Board of Directors approved a program associated with an organizational structure (“Organizational Redesign”) that aims to reinforce the Company’s growth path and strengthen its position as a global leader in beauty. The Company anticipates that the Organizational Redesign will result in pre-tax restructuring and related costs of $145.0 to $180.0 , all of which will result in cash payments. The Company anticipates substantial completion of all project activities by the end of fiscal 2017, with the remaining costs primarily charged to Corporate. The Company incurred $71.6 of restructuring costs life-to-date as of June 30, 2015 in Corporate. The related liability balance and activity for the restructuring costs are presented below: Severance and Other Total Balance—July 1, 2014 $ 9.1 $ 1.9 $ 11.0 Restructuring Charges 63.3 2.5 65.8 Payments (28.7 ) (3.8 ) (32.5 ) Changes in estimates (a) (7.2 ) — (7.2 ) Effects of exchange rates (4.5 ) (0.3 ) (4.8 ) Payables — (0.2 ) (0.2 ) Balance—June 30, 2015 $ 32.0 $ 0.1 $ 32.1 (a) The decrease in severance and employee benefits is primarily attributable to employees who have voluntarily left positions that were later eliminated. The Company currently estimates that the total remaining accrual of $32.1 will result in cash expenditures of $27.1 , $4.5 , $0.5 and in fiscal 2016, 2017, and 2018, respectively. Acquisition Integration Program In connection with the acquisition of the Bourjois brand, the Company recorded $15.3 of restructuring costs primarily related to distributor termination fees, recorded in the Corporate segment. The related liability was $15.3 as of June 30, 2015. The Company currently estimates the total remaining accrual of $15.3 will result in cash expenditures of $10.1 and $5.2 in fiscal 2016 and 2017, respectively. China Optimization During the fourth quarter of fiscal 2014, the Company entered into a distribution agreement with a third-party distributor for certain of the Company’s brands sold through the mass distribution channel in China and announced the discontinuation of the Company’s TJoy brand. In conjunction with these events, during fiscal 2015 the Company completed a restructuring and product rationalization of the Company's mass business in China (“China Optimization”) that are aimed at generating operating efficiencies. The China Optimization pre-tax restructuring costs were $9.2 all of which have or will result in cash payments and were charged to Corporate. The related liability balance and activity for the restructuring costs are presented below: Restructuring Costs Severance and Other Total Balance—July 1, 2014 $ 9.6 $ 0.2 $ 9.8 Restructuring charges — — — Payments (8.7 ) — (8.7 ) Changes in estimate (0.6 ) — (0.6 ) Effects of exchange rates 0.1 (0.2 ) (0.1 ) Balance—June 30, 2015 $ 0.4 $ — $ 0.4 The Company currently estimates that the total remaining restructuring accrual of $ 0.4 will result in cash expenditures in fiscal 2016. Productivity Program During the fourth quarter of fiscal 2013 , the Company’s Board of Directors approved a number of business integration and productivity initiatives aimed at enhancing long-term operating margins (the “Productivity Program”). Such activities primarily relate to integration of supply chain and selling activities within the Skin & Body Care segment, as well as certain commercial organization re-design activities, primarily in Europe and optimization of selected administrative support functions. The Company anticipates that the Productivity Program will result in pre-tax restructuring and related costs of approximately $70.0 . The Company anticipates completing the implementation of all project activities by the end of fiscal 2016. The Company incurred $41.6 of restructuring costs life-to-date as of June 30, 2015 in Corporate. The related liability balance and activity for the restructuring costs are presented below: Severance and Employee Benefits Third-Party Contract Terminations Other Exit Costs Total Program Costs Balance—July 1, 2014 $ 15.8 $ 0.2 $ 0.2 $ 16.2 Restructuring charges 2.2 — 1.6 3.8 Payments (8.8 ) — (1.6 ) (10.4 ) Changes in estimates (a) (1.7 ) — — (1.7 ) Effect of exchange rates (0.5 ) (0.2 ) (0.2 ) (0.9 ) Balance—June 30, 2015 $ 7.0 $ — $ — $ 7.0 (a) The decrease in severance and employee benefits is primarily attributable to employees who have voluntarily left positions that were later eliminated. The Company currently estimates that the total remaining accrual of $7.0 will result in cash expenditures of approximately $6.7 and $0.3 in fiscal 2016 and 2017 , respectively. |
TRADE RECEIVABLES - FACTORING
TRADE RECEIVABLES - FACTORING | 12 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
TRADE RECEIVABLES—FACTORING | TRADE RECEIVABLES—FACTORING The Company factors a portion of its trade receivables with unrelated third-party factoring companies on a non-recourse basis. Trade receivables factored throughout the year with the factoring companies amounted to $379.8 and $401.7 in fiscal 2015 and 2014 , respectively. Remaining balances due from factors amounted to $16.6 and $5.6 as of June 30, 2015 and 2014 , respectively, and are included in Trade receivables, net in the Consolidated Balance Sheets. Factoring fees paid under these arrangements were $0.6 , $0.8 and $0.9 in fiscal 2015 , 2014 and 2013 , respectively, which were recorded in Selling, general and administrative expenses in the Consolidated Statements of Operations. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories as of June 30, 2015 and 2014 are presented below: June 30, June 30, Raw materials $ 160.9 $ 189.3 Work-in-process 8.4 12.3 Finished goods 388.5 415.8 Total inventories $ 557.8 $ 617.4 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET Property and equipment, net as of June 30, 2015 and 2014 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 232.4 $ 230.7 Machinery and equipment 471.3 492.8 Marketing furniture and fixtures 267.7 278.1 Computer equipment and software 325.5 339.8 Construction in progress 48.7 45.4 1,345.6 1,386.8 Accumulated depreciation and amortization (845.4 ) (846.5 ) Property and equipment, net $ 500.2 $ 540.3 Depreciation and amortization expense of property and equipment totaled $156.2 , $165.0 and $169.4 in fiscal 2015 , 2014 and 2013 , respectively, and is recorded in Cost of sales and Selling, general and administrative expenses in the Consolidated Statements of Operations. In fiscal 2015 , 2014 and 2013 , the Company recorded asset impairment charges of $0.0 , $6.0 and $1.5 , respectively, primarily relating to the disposal of various manufacturing facilities. In October 2014, the Company agreed to sell certain TJoy assets for cash of 86.0 million RMB ( $14.1 ) in conjunction with China Optimization. As a result, the Company recognized a gain of $7.2 in Gain on sale of asset in the Consolidated Statement of Operations during fiscal 2015. During fiscal 2015 and 2014, the Company removed certain fully depreciated assets from service that had original costs of $71.2 and $175.2 , respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The Company tests goodwill and indefinite lived intangible assets for impairment at least annually as of May 1, or more frequently, if certain events or circumstances warrant. There were no impairments of goodwill at the Company’s reporting units in fiscal year 2015. In the first half of fiscal 2014, the Company anticipated realizing significant improvements in cash flows in the China operations of its Beauty - Skin & Body Care Reporting Units beginning in the third quarter due to the reorganization of the management team and distribution network in China and the launch of new product offerings. In the course of evaluating the results for the third quarter and the preparation of third quarter financial statements, the Company noted the net cash outflows associated with the TJOY Holdings Co., Ltd. (“TJoy”) mass channel business in China were significantly in excess of previous expectations and management concluded that the results in China represented an indicator of impairment that warranted an interim impairment test for goodwill and certain other intangible assets in the Beauty - Skin & Body Care Reporting Unit of $316.9 , of which $256.4 related to goodwill and $60.5 to other long lived assets, as described below and recorded in Asset impairment charges in the Consolidated Statements of Operations. In step one of the goodwill impairment test, the Company identified that the carrying value of the reporting unit exceeded its fair value based on a re-evaluation of discounted cash flows and confirmed by using a market approach to value the reporting units. The main drivers of the decline were a decrease in average net sales growth rates for the reporting unit from high-single digits to mid-single digits and an increase in weighted average cost of capital, based on management's recent estimates. In step two of the test, the implied fair value of goodwill was determined by comparing the fair value of the other assets in the reporting unit to the fair value of the reporting unit. Predominantly as a result of the fair value of the adidas license, the implied fair value of goodwill was determined to be nil. As a result, goodwill for the Beauty - Skin & Body Care reporting unit was fully impaired, resulting from a reduction in fair value of the Beauty - Skin & Body Care reporting unit of 43.4% from the May 1, 2013 fair value and a total non-cash impairment charge of $316.9 , of which $256.4 related to goodwill and $60.5 to other assets. The Company believes the assumptions used in calculating the estimated fair values of its reporting units are reasonable and attainable. However, the Company can provide no assurances that it will achieve such projected results. Further, the Company can provide no assurances that it will not have to recognize additional impairment of goodwill in the future due to other market conditions or changes in interest rates in its reporting units. Recognition of additional impairment of a significant portion of the Company’s goodwill would negatively affect the Company’s reported results of operations and total capitalization. Goodwill as of June 30, 2015 and June 30, 2014 is presented below: Fragrances Color Cosmetics Skin & Body Care Total Gross balance at June 30, 2014 $ 751.9 $ 538.2 $ 693.5 $ 1,983.6 Accumulated impairments (a) — — (640.8 ) (640.8 ) Net balance at June 30, 2014 $ 751.9 $ 538.2 $ 52.7 $ 1,342.8 Changes during the year ended June 30, 2015: Acquisition contingent payment (b) $ 30.0 $ — $ — $ 30.0 Acquisitions (c) 35.0 148.7 11.1 194.8 Foreign currency translation (27.0 ) (9.6 ) (0.3 ) (36.9 ) Reclassification (d) (69.1 ) — 69.1 — Gross balance at June 30, 2015 $ 720.8 $ 677.3 $ 773.4 $ 2,171.5 Accumulated impairments — — (640.8 ) (640.8 ) Net balance at June 30, 2015 $ 720.8 $ 677.3 $ 132.6 $ 1,530.7 (a) Prior to June 30, 2013, the Company recorded pre-tax non-cash impairment in the Skin & Body Care reporting unit of $384.4 . In fiscal 2014, the Company recorded pre-tax non-cash impairment in the Skin & Body Care reporting unit of $256.4 . (b) Pursuant to the Company's fiscal 2006 acquisition of Unilever Cosmetics International, the Company was contractually obligated to make annual contingent purchase price consideration payments for a 10 -year period following the acquisition to the seller. Payments are based on contractually agreed upon sales targets and can range up to $30.0 per year. The Company paid $30.0 during the third quarter of fiscal 2015, 2014 and 2013 for such contingent consideration. The March 2015 payment was the final contingent purchase price payment due under the contract. (c) During the year ended June 30, 2015 , the Company acquired 100% of the assets of Bourjois. This transaction was accounted for as business combinations (See Note 4). (d) As a result of the Company’s Organizational Redesign program announced on July 9, 2014, a certain brand and its attributable goodwill of $69.1 was reclassified from the Fragrances segment to the Skin & Body Care segment. The Company calculated the fair value of the brand relative to the reporting unit using the same methodology utilized in the annual impairment analysis. Other Intangible Assets In fiscal 2015, there were no impairments of Other intangible assets. Other intangible assets, net as of June 30, 2015 and June 30, 2014 are presented below: June 30, June 30, Indefinite-lived other intangible assets (a) $ 1,274.0 $ 1,167.8 Finite-lived other intangible assets, net (b) 639.6 669.3 Total Other intangible assets, net $ 1,913.6 $ 1,837.1 (a) Net of accumulated impairments of $188.6 as of June 30, 2015 and June 30, 2014 . (b) Net of accumulated impairments of $21.0 and $33.5 related to the TJoy trademark and customer relationships, respectively, recorded in fiscal 2014. The changes in the carrying amount of indefinite-lived other intangible assets are presented below: Fragrances Color Skin & Body Total Gross balance at June 30, 2014 $ 25.2 $ 886.5 $ 453.9 $ 1,365.6 Accumulated impairments (a) — (9.2 ) (188.6 ) (197.8 ) Balance—June 30, 2014 25.2 877.3 265.3 1,167.8 Changes during the period ended June 30, 2015 Acquisitions (b) — 112.0 — 112.0 Foreign currency translation (4.5 ) (1.3 ) — (5.8 ) Gross balance at June 30, 2015 20.7 997.2 453.9 1,471.8 Accumulated impairments — (9.2 ) (188.6 ) (197.8 ) Net balance at June 30, 2015 $ 20.7 $ 988.0 $ 265.3 $ 1,274.0 (a) Impairment charges of $197.8 were recorded prior to June 30, 2013. (b) During the year ended June 30, 2015, the Company acquired 100% of the assets of Bourjois. This transaction was accounted for as business combinations (See Note 4). Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2014 License agreements $ 835.0 $ (490.8 ) $ — $ 344.2 Customer relationships 510.8 (169.4 ) (33.5 ) 307.9 Trademarks 125.8 (90.1 ) (21.0 ) 14.7 Product formulations 31.8 (29.3 ) — 2.5 Total $ 1,503.4 $ (779.6 ) $ (54.5 ) $ 669.3 June 30, 2015 License agreements $ 800.7 $ (501.1 ) $ — $ 299.6 Customer relationships (c) 559.1 (232.8 ) — 326.3 Trademarks (c) 119.1 (108.2 ) — 10.9 Product formulations 32.7 (29.9 ) — 2.8 Total $ 1,511.6 $ (872.0 ) $ — $ 639.6 (c) The cost, accumulated amortization and accumulated impairment related to the TJoy customer relationship and trademark was eliminated as of June 30, 2015 due to disposition of the business. In fiscal 2014, concurrently with the evaluation of future cash flows of the reporting unit, the Company also re-evaluated future cash flows from other long lived assets in China, consisting of the TJoy trademark, customer relationships and a manufacturing facility, with a total carrying value of $69.1 . It was determined that the carrying value of this asset group exceeded its fair value resulting in an impairment charge of $60.5 . The TJoy trademark and customer relationships of $21.0 and $33.5 , respectively, were fully impaired and the remaining $6.0 impairment charge was attributable to the reduction of the carrying value of a manufacturing facility. Intangible assets subject to amortization are amortized principally using the straight-line method and have the following weighted-average remaining lives: Description License agreements 10.4 years Customer relationships 8.8 years Trademarks 12.4 years Product formulations 2.6 years As of June 30, 2015 , the remaining weighted-average life of all intangible assets subject to amortization is 9.6 years . Amortization expense totaled $74.7 , $85.7 and $90.2 for the fiscal years ended June 30, 2015 , 2014 and 2013 , respectively. The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below: 2016 $ 78.6 2017 77.8 2018 77.3 2019 76.4 2020 75.0 License Agreements The Company records assets for license agreements (“licenses”) acquired in transactions accounted for as business combinations. These licenses provide the Company with the exclusive right to manufacture and market on a worldwide and/or regional basis, certain of the Company’s products which comprise a significant portion of the Company’s revenues. These licenses have initial terms covering various periods. Certain licenses provide for automatic extensions ranging from 3 to 10 -year terms, contingent upon attaining specified sales levels. Based on the current sales and the time until renewal, management cannot determine whether specified sales levels will be attained, which will permit extensions. There were no licenses acquired during fiscal 2015 and 2014. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities as of June 30, 2015 and 2014 are presented below: June 30, June 30, Advertising, marketing and licensing $ 179.1 $ 194.8 Customer returns, discounts, allowances and bonuses 168.2 196.4 Other compensation and related benefits 132.0 129.3 VAT, sales and other non-income taxes 46.7 41.1 Restructuring costs 44.3 32.9 Acquisition-related costs 31.3 — Payroll and payroll related taxes 21.2 23.2 Share-based compensation liability 13.9 — Unfavorable lease contracts 7.1 18.6 Derivative liabilities 6.3 11.5 Auditing and consulting fees 5.5 8.7 Deferred income 4.1 8.3 Interest 3.5 3.9 Rent 3.1 3.7 Other 52.9 51.2 Total accrued expenses and other current liabilities $ 719.2 $ 723.6 |
DEBT
DEBT | 12 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | DEBT June 30, June 30, Short-term debt $ 22.1 $ 18.8 2015 Credit Agreement due March 2018 800.0 — Coty Inc. Credit Facility 2013 Term Loan due March 2018 1,050.0 1,250.0 Incremental Term Loan due April 2018 625.0 625.0 Revolving Loan Facility due April 2018 136.5 899.5 Senior Notes: 5.12% Series A notes due June 2017 — 100.0 5.67% Series B notes due June 2020 — 225.0 5.82% Series C notes due June 2022 — 175.0 Other long-term debt and capital lease obligations 1.1 0.2 Total debt 2,634.7 3,293.5 Less: Short-term debt and current portion of long-term debt (28.8 ) (33.4 ) Total Long-term debt $ 2,605.9 $ 3,260.1 Short-Term Debt The Company maintains short-term lines of credit with financial institutions around the world. Total available lines of credit were $127.7 and $141.4 , of which $22.1 and $18.8 were outstanding at June 30, 2015 and 2014 , respectively. Interest rates on these short-term lines of credit vary depending on market rates for borrowings within the respective geographic locations plus applicable spreads. Interest rates plus applicable spreads on these lines ranged from 0.7% to 18.0% and from 1.3% to 13.5% as of June 30, 2015 and 2014 , respectively. The weighted-average interest rate on short-term debt outstanding was 7.1% and 6.7% as of June 30, 2015 and 2014 , respectively. In addition, the Company had undrawn letters of credit of $4.1 and $3.6 as of June 30, 2015 and 2014 , respectively. Long Term Debt 2015 Credit Agreement On March 24, 2015, the Company entered into a Credit Agreement (the “2015 Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent, and Bank of America, N.A., BNP Paribas, Credit Agricole Corporate & Investment Bank, ING Bank, N.V., Morgan Stanley MUFG Loan Partners, LLC and Wells Fargo Bank, N.A., as syndication agents. The Company used the proceeds of the 2015 Credit Agreement to repay in full the indebtedness outstanding on its then-existing 2014 Credit Agreement, as defined below, and to repay $200.0 million of indebtedness outstanding on the existing 2013 Term Loan under the 2013 Credit Agreement, each as defined below, resulting in a remaining $1,050.0 term loan. The 2015 Credit Agreement provides for a term loan of $800.0 million (the “2015 Term Loan”), payable in full on March 31, 2018. The terms of the 2015 Term Loan are substantially the same as those of the term loan existing under the 2013 Credit Agreement, after giving effect to the 2015 Amendment as discussed below. Rates of interest on amounts borrowed under the 2015 Credit Agreement were based on the London Interbank Offered Rate (“LIBOR”), a qualified Eurocurrency LIBOR, an alternative base rate, or a qualified local currency rate, as applicable to the borrowings, plus applicable spreads determined by the consolidated leverage ratio. Applicable spreads on the borrowings under the 2015 Credit Agreement could range from 0.125% to 1.875% based on the Company’s consolidated leverage ratio, as defined in the 2015 Credit Agreement. The applicable spread under the 2015 Credit Agreement in effect as of June 30, 2015 was 1.63% . The 2015 Credit Agreement also contained affirmative and negative covenants that are substantially the same as those contained in the 2013 Credit Agreement, as amended, as discussed below. For the year ended June 30, 2015, deferred financing fees of $3.1 were recorded in Other noncurrent assets in the Consolidated Balance Sheet. Additionally, for the year ended June 30, 2015, the Company recorded a write-off of $0.9 of deferred financing fees related to the repayment of $200.0 million of indebtedness outstanding on the 2013 Credit Agreement. Coty Inc. Credit Facility On March 24, 2015, the Company entered into an amendment (“2015 Amendment”) to the 2013 Credit Agreement. The 2015 Amendment amends, among other things, the financial covenants in the 2013 Credit Agreement. After giving effect to the 2015 Amendment, the 2013 Credit Agreement permits the Company to maintain a quarterly base leverage ratio, as defined therein, equal to or less than 3.95 to 1.0 for each fiscal quarter through to December 31, 2015. After December 31, 2015, the quarterly base leverage ratio steps down to 3.75 to 1.0 through the period ending December 31, 2016, and to 3.50 to 1.0 through maturity of the facility. For the year ended June 30, 2015, the Company recorded deferred financing fees of $3.1 in Other noncurrent assets in the Consolidated Balance Sheet in connection with the 2015 Amendment. On September 29, 2014, the Company entered into an Amendment (the “2014 Amendment”) to its existing 2013 Credit Agreement. The 2014 Amendment permits the Company to maintain a consolidated leverage ratio equal to or less than 4.5 to 1.0 for the 12-month period following an acquisition, as defined in the 2013 Credit Agreement. During the year-ended June 30, 2015, the Company recorded deferred financing fees of $3.1 in Other noncurrent assets in the Consolidated Balance Sheet in connection with the 2014 Amendment. On June 25, 2014, the Company entered into the Incremental Term Loan Amendment (“Incremental Amendment”) to the 2013 Credit Agreement. The 2014 Incremental Amendment provides for an incremental term loan of $625.0 ( the “Incremental Term Loan”), and the Incremental Term Loan has substantially the same terms and conditions as those of the 2013 Term Loan, except with respect to principal repayments. The Incremental Term Loan is payable in full on April 2, 2018. The Company entered into the Incremental Term Loan in connection with the repurchase of shares from two related parties during fiscal 2014 and for general corporate purposes. Applicable spreads on the borrowings under the 2014 Incremental Amendment, as amended by the 2014 Amendment may range from 0.0% to 1.75% based on the Company’s consolidated leverage ratio, as defined in the 2013 Credit Agreement. Deferred financing fees of $2.2 were recorded in Other noncurrent assets in the Consolidated Balance Sheet in connection with the amendment as of June 30, 2014 and there were no deferred financing fees written off as a result of the amendment. On April 2, 2013, the Company refinanced its then-existing credit facility by entering into a Credit Agreement (the “2013 Credit Agreement”), with JP Morgan Chase Bank, N.A. as administrative agent and Bank of America, N.A., BNP Paribas, Crédit Agricole Corporate & Investment Bank, Deutsche Bank Securities Inc., ING Bank N.V., Morgan Stanley MUFG Loan Partners, LLC and Wells Fargo Bank, N.A., as syndication agents. The 2013 Credit Agreement provides a term loan of $1,250.0 (the “2013 Term Loan”), which expires on March 31, 2018. The amount outstanding on the 2013 Term Loan is $1,050.0 as of June 30, 2015. The 2013 Credit Agreement additionally provides a revolving loan facility of $1,250.0 (the “2013 Revolving Loan Facility”) expiring on April 2, 2018, which includes up to $80.0 in swingline loans. Rates of interest on amounts borrowed under the 2013 Credit Agreement are based on the London Interbank Offer Rate (“LIBOR”), a qualified Eurocurrency LIBOR, an alternative base rate, or a qualified local currency rate, as applicable to the borrowings, plus applicable spreads determined by the consolidated leverage ratio. Applicable spreads on the borrowings under the 2013 Credit Agreement, as amended by the 2014 Amendment, may range from 0.0% to 1.75% based on the Company’s consolidated leverage ratio, as defined in the 2013 Credit Agreement. In addition to interest on amounts borrowed under the 2013 Credit Agreement, as amended by the 2014 Amendment, the Company pays a quarterly commitment fee, as defined in the 2013 Credit Agreement, on the 2013 Revolving Loan Facility that can range from 0.15% to 0.25% based on the Company’s consolidated leverage ratio, as defined in the 2013 Credit Agreement. Quarterly repayments for the 2013 Term Loan will commence on October 1, 2016 and will total $175.0 , and $875.0 in fiscal years 2017, and 2018 respectively. The Company used the proceeds from the 2013 Credit Agreement to repay in full all amounts outstanding under the Credit Agreement, dated August 22, 2011, with JPMorgan Chase Bank, N.A. as administrative agent and Bank of America, N.A. and Wells Fargo Bank, N.A., as co-syndication agents and for general corporate purposes. In April 2013, the Company wrote off $2.6 of deferred financing fees associated with the refinancing, which was included in interest expense, net in the Consolidated Statements of Operations in fiscal 2013. As of June 30, 2015, the Company had $1,113.5 available for borrowings under the 2013 Credit Agreement. 2014 Credit Agreement On September 29, 2014, the Company entered into a Credit Agreement (the “2014 Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent, and Bank of America, N.A., Morgan Stanley MUFG Loan Partners, LLC and Wells Fargo Bank, N.A., as syndication agents. The 2014 Credit Agreement provided for a term loan of $600.0 scheduled to expire on September 28, 2015 at which time it was payable in full. Rates of interest on amounts borrowed under the 2014 Credit Agreement were based on LIBOR, a qualified Eurocurrency LIBOR, an alternative base rate, or a qualified local currency rate, as applicable to the borrowings, plus applicable spreads determined by the consolidated leverage ratio. Applicable spreads on the borrowings under the 2014 Credit Agreement could have ranged from 0.0% to 1.75% based on the Company’s consolidated leverage ratio, as defined in the 2014 Credit Agreement. The Company used the borrowings under the 2014 Credit Agreement to prepay the outstanding principal amount of the Senior Notes, as described below, prior to their maturity date. For the year-ended June 30, 2015, the Company recorded deferred financing fees of $1.9 in Other noncurrent assets in the Consolidated Balance Sheet in connection with the 2014 Amendment. On March 24, 2015, the Company used the proceeds of the 2015 Credit Agreement to repay in full the indebtedness outstanding under the 2014 Credit Agreement. Interest Interest is payable quarterly or on the last day of the interest period applicable to the borrowing under the Company’s long-term debt facilities. The weighted-average interest rates on the Company’s Term Loans were 1.7% , 1.6% , and 1.9% in fiscal 2015, 2014, and 2013 respectively. The weighted-average interest rates on the Company’s Revolving credit facility was 1.4% , 1.3% , and 1.6% in fiscal 2015, 2014, and 2013. Senior Notes On September 29, 2014, the Company prepaid the Senior Notes. The prepayment included the principal amount of Senior Notes of $500.0 , accrued interest of $8.0 and a make-whole amount of $84.6 . In connection with the prepayment, the Company incurred a loss on early extinguishment of debt of $88.8 , which included the make-whole amount and the write-off of $4.2 of deferred financing fees related to the Senior Notes. On June 16, 2010, the Company issued $500.0 of Senior Secured Notes (the “Senior Notes”) in three series in a private placement transaction pursuant to a Note Purchase Agreement (the “NPA”): (i) $100.0 in aggregate principal amount of 5.12% Series A Senior Secured Notes due June 16, 2017, (ii) $225.0 in aggregate principal amount of 5.67% Series B Senior Secured Notes due June 16, 2020 and (iii) $175.0 in aggregate principal amount of 5.82% Series C Senior Secured Notes due June 16, 2022. Interest payments are payable semi-annually in December and June. In connection with the refinancing of the credit facility in August 2011, the liens that secured the Senior Notes were released as provided in the NPA. Financial Covenants As of June 30, 2015 , the Company is required to comply with certain covenants contained within the 2013 Credit Agreement and the 2015 Credit Agreement (each, as amended, the “Credit Agreements”). These covenants within the Credit Agreements contain customary representations and warranties as well as customary affirmative and negative covenants, including but not limited to, restrictions on incurrence of additional debt, liens, dividends and other restricted payments, asset sales, investments, mergers, acquisitions and affiliate transactions. Events of default permitting acceleration under the Agreements include, among others, nonpayment of principal or interest, covenant defaults, material breaches of representations and warranties, bankruptcy and insolvency events and certain cross defaults. In addition, a change of control is a default under the Credit Agreements. The 2015 Amendment amends, among other things, the financial covenants in the 2013 Credit Agreement. After giving effect to the 2015 Amendment, the 2013 Credit Agreement permits Coty to maintain a quarterly base leverage ratio, as defined therein, equal to or less than 3.95 to 1.0 for each fiscal quarter through to December 31, 2015, subject to certain agreed step-downs thereafter as defined above, a consolidated interest coverage ratio, as these terms are defined in the Credit Agreements, equal to or greater than 3.0 to 1.0 for the previous 12-month period, except that the 2014 Amendment to the 2013 Credit Agreement permits us to maintain a consolidated leverage ratio equal to or less than 4.5 to 1.0 for the 12-month period following an acquisition, as defined in the 2013 Credit Agreement. The Company is in compliance with all financial covenants within the Credit Agreements as of June 30, 2015 . Repayment Schedule Aggregate maturities of all long-term debt, including current portion of long-term debt and excluding capital lease obligations as of June 30, 2015 , are presented below: Fiscal Year Ending June 30 2016 $ 6.5 2017 175.0 2018 2,430.0 2019 — 2020 — Thereafter — Total $ 2,611.5 |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Jun. 30, 2015 | |
Leases [Abstract] | |
Lease Commitments | LEASE COMMITMENTS The Company has various buildings and equipment under leasing arrangements. The leases generally provide for payment of additional rent based upon increases in items such as real estate taxes and insurance. Certain lease agreements have renewal options for periods typically ranging between two and five years . Certain lease agreements have escalation clauses, which have been straight-lined over the life of the respective lease agreements. The minimum rental lease commitments for non-cancellable operating leases as of June 30, 2015 are presented below: Fiscal Year Ending June 30 2016 $ 59.0 2017 49.5 2018 43.2 2019 37.7 2020 35.7 Thereafter 205.2 430.3 Less: sublease income (41.1 ) Total minimum payments required $ 389.2 Rent expense relating to operating leases in fiscal 2015 , 2014 and 2013 is presented below: Year Ended June 30, 2015 2014 2013 Rent expense $ 87.1 $ 112.5 $ 89.7 Less: sublease income (4.3 ) (1.4 ) (1.2 ) Total $ 82.8 $ 111.1 $ 88.5 Reflected in total rent expense above are estimated net future minimum lease payments and related costs for facilities no longer used in operations of $(0.7) , $ 21.4 and nil and duplicative rent expenses of nil , $5.0 and $ 5.3 in fiscal 2015, 2014 and 2013, respectively. In addition, the Company incurred accelerated depreciation of nil , $4.1 and $16.5 , in fiscal 2015, 2014 and 2013, respectively. These costs relate to the New York real estate consolidation program and were recorded in Selling, general and administrative expenses in the Consolidated Statements of Operations and included in Corporate (Note 3). |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income (loss) from operations before income taxes in fiscal 2015 , 2014 and 2013 is presented below: Year Ended June 30, 2015 2014 2013 United States $ (173.7 ) $ (119.1 ) $ (53.5 ) Foreign 407.0 75.0 372.2 Total $ 233.3 $ (44.1 ) $ 318.7 The components of the Company’s total (benefit) provision for income taxes during fiscal 2015 , 2014 and 2013 are presented below: Year Ended June 30, 2015 2014 2013 (Benefit) provision for income taxes: Current: Federal $ 3.7 $ 5.6 $ (26.5 ) State and local 3.3 2.1 2.8 Foreign 54.1 50.8 110.6 Total 61.1 58.5 86.9 Deferred: Federal (71.0 ) (30.6 ) 8.3 State and local (12.0 ) (0.7 ) 2.6 Foreign (4.2 ) (7.1 ) 19.0 Total (87.2 ) (38.4 ) 29.9 (Benefit) provision for income taxes $ (26.1 ) $ 20.1 $ 116.8 During fiscal 2015, the Company transferred certain international intellectual property rights to its wholly owned subsidiary in Switzerland in order to align the Company’s ownership of these international intellectual property rights with its global operations. Although the transfer of foreign intellectual property rights between consolidated entities did not result in any gain in the consolidated results of operations, the Company generated a taxable gain in the U.S. that was offset by net operating loss carryforwards. Income taxes incurred related to the intercompany transactions are treated as a prepaid income tax in the Company’s consolidated balance sheet and amortized to income tax expense over the life of the intellectual property. The prepaid income tax is included in the “Prepaid expenses and other current assets” and “Other noncurrent assets” lines of the Consolidated Balance Sheet in the amount of $7.6 and $143.4 , respectively. The prepaid income taxes are amortized as a component of income tax expense over twenty years . The reconciliation of the U.S. Federal statutory tax rate to the Company’s effective income tax rate during fiscal 2015 , 2014 and 2013 is presented below: Year Ended June 30, 2015 2014 2013 Income (loss) before income taxes $ 233.3 $ (44.1 ) $ 318.7 Provision (benefit) for income taxes at statutory rate $ 81.7 $ (15.4 ) $ 111.6 State and local taxes—net of federal benefit (5.6 ) 0.9 3.5 Foreign tax differentials (74.4 ) (53.0 ) (44.2 ) Change in valuation allowances (6.6 ) 36.1 18.2 Change in unrecognized tax benefit (35.2 ) (24.4 ) 4.8 Asset impairment charges — 67.4 — Share-based compensation — 1.8 16.0 Permanent differences—net 10.6 1.8 7.2 Other 3.4 4.9 (0.3 ) (Benefit) provision for income taxes $ (26.1 ) $ 20.1 $ 116.8 Effective income tax rate (11.2 )% (45.6 )% 36.6 % Significant components of Deferred income tax assets and liabilities as of June 30, 2015 and 2014 are presented below: June 30, June 30, Deferred income tax assets: Inventories $ 14.0 $ 20.2 Accruals and allowances 77.0 87.4 Sales returns 15.9 20.1 Share-based compensation 26.1 35.4 Employee benefits 38.4 50.9 Net operating loss carry forwards and tax credits 92.4 102.2 Other 27.2 45.3 Less: valuation allowances (81.9 ) (98.6 ) Net deferred income tax assets 209.1 262.9 Deferred income tax liabilities: Intangible assets 436.0 421.9 Licensing rights 6.3 6.4 Other 29.7 33.8 Deferred income tax liabilities 472.0 462.1 Net deferred income tax liabilities $ (262.9 ) $ (199.2 ) The expirations of tax loss carry forwards, amounting to $264.3 as of June 30, 2015 , in each of the fiscal years ending June 30, are presented below: Fiscal Year Ending June 30 United States Western Europe Rest of World Total 2016 $ — $ — $ 14.9 $ 14.9 2017 — — 18.2 18.2 2018 — — 37.8 37.8 2019 — — 51.6 51.6 2020 and thereafter — 44.6 97.2 141.8 Total $ — $ 44.6 $ 219.7 $ 264.3 The total valuation allowances recorded are $81.9 and $98.6 as of June 30, 2015 and 2014 , respectively. In fiscal 2015 , the change in the valuation allowance was due primarily to a decrease in valuation allowance for net operating losses. A reconciliation of the beginning and ending amount of UTBs is presented below: Year Ended June 30, 2015 2014 2013 UTBs—July 1 $ 400.5 $ 331.4 $ 326.5 Additions based on tax positions related to the current year 51.6 29.5 36.8 Additions for tax positions of prior years 6.4 91.9 5.0 Reductions for tax positions of prior years (60.3 ) (9.9 ) — Settlements (29.7 ) (33.8 ) (27.9 ) Lapses in statutes of limitations (14.2 ) (11.6 ) (13.8 ) Foreign currency translation (11.7 ) 3.0 4.8 UTBs—June 30 $ 342.6 $ 400.5 $ 331.4 As of June 30, 2015 , the Company had $342.6 of UTBs of which $315.7 represents the amount that, if recognized, would impact the effective income tax rate in future periods. As of June 30, 2015 and 2014 , the liability associated with UTBs, including accrued interest and penalties, is $182.9 and $159.4 , respectively, which is recorded in Income and other taxes payable and Other non-current liabilities in the Consolidated Balance Sheets. During fiscal 2015 , the Company released interest accruals of ($4.4) , while in fiscal 2014 and 2013 the Company accrued total interest of ($1.7) and $1.1 , respectively, and penalty benefit of ($1.0) , nil and $0.9 , respectively. The total gross accrued interest and penalties recorded in the Other noncurrent liabilities in the Consolidated Balance Sheets related to UTBs as of June 30, 2015 and 2014 is $15.2 and $25.5 , respectively. The Company is present in over 35 tax jurisdictions, and any point in time is subject to several audits at various stages of completion. As a result, the Company evaluates tax positions and establishes liabilities for UTBs that may be challenged by local authorities and may not be fully sustained, despite a belief that the underlying tax positions are fully supportable. UTBs are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, developments in case law, and closing of statute of limitations. Such adjustments are reflected in the provision for income taxes as appropriate. In fiscal year 2015 and 2014, the Company recognized a tax benefit of $62.0 and $49.2 respectively associated with the settlement of tax audits in multiple jurisdictions and the expiration of foreign and state statutes of limitation. The Company has open tax years ranging from 2006 and forward. On the basis of information available at June 30, 2015 , it is reasonably possible that a decrease of up to $93.8 in UTBs related to U.S. and foreign exposures may be necessary within the coming year. It is also possible the ongoing audits by tax authorities may result in increases or decreases to the balance of UTBs. Since it is common practice to extend audits beyond the Statute of Limitations, the Company is unable to predict the timing or conclusion of these audits and, accordingly, the Company is unable to estimate the amount of changes to the balance of UTBs that are reasonably possible at this time. However, the Company believes it has adequately provided for its UTBs for all open tax years in each tax jurisdiction. It is the Company’s intention to permanently reinvest undistributed earnings and income from the Company’s foreign operations that have been generated through June 30, 2015 . Accordingly, no provision has been made for U.S. income taxes on the remaining undistributed earnings of foreign subsidiaries as of June 30, 2015 . Cumulative undistributed earnings of non-U.S. subsidiaries was $2,138.7 as of June 30, 2015 . It is not practicable for the Company to determine the amount of additional income and withholding taxes that may be payable in the event the remaining undistributed earnings are repatriated. |
OTHER NONCURRENT LIABILITIES
OTHER NONCURRENT LIABILITIES | 12 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | OTHER NONCURRENT LIABILITIES Other noncurrent liabilities as of June 30, 2015 and 2014 are presented below: June 30, June 30, Noncurrent income tax liabilities $ 182.9 $ 154.3 Rent 36.3 37.5 Restructuring 10.5 5.3 Unfavorable lease contracts 9.9 11.2 Deferred income 3.6 8.1 Mandatorily redeemable financial instruments 5.1 5.5 Other 8.4 6.8 Total noncurrent liabilities $ 256.7 $ 228.7 |
INTEREST EXPENSE, NET
INTEREST EXPENSE, NET | 12 Months Ended |
Jun. 30, 2015 | |
Interest Income And Interest Expense Disclosure [Abstract] | |
Interest Expense, Net | INTEREST EXPENSE, NET Interest expense, net for the years ended June 30, 2015 , 2014 and 2013 is presented below: Year Ended June 30, 2015 2014 2013 Interest expense $ 71.4 $ 69.8 $ 77.2 Foreign exchange losses, net of derivative contracts 4.1 2.8 — Deferred financing fees write-off 0.9 — 2.6 Accretion of acquisition-related liability — — 0.6 Interest income (3.4 ) (4.1 ) (3.9 ) Total interest expense, net $ 73.0 $ 68.5 $ 76.5 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Savings and Retirement Plans -The Company’s Savings and Retirement Plans include a U.S. defined contribution plan for employees primarily in the U.S. and international savings plans for employees in certain other countries. In the U.S., hourly and salary based employees are eligible to participate in the plan after 90 days of service and the Company matches 100% of employee contributions up to 6.0% of employee compensation. In addition, the Company makes contributions to the plan on behalf of employees determined by their age and compensation. During fiscal 2015 , 2014 and 2013 , the defined contribution expense for the U.S. defined contribution plan was $12.2 , $12.7 and $15.0 , respectively, and the defined contribution expense for the international savings plans was $10.7 , $10.6 and $6.4 , respectively. Pension Plans -The Company sponsors contributory and noncontributory defined benefit pension plans covering certain U.S. and international employees primarily in Austria, France, Germany, the Netherlands, Spain and Switzerland. Participants in the U.S. defined benefit pension plan no longer accrue benefits. The Company measures defined benefit plan assets and obligations as of the date of the Company’s fiscal year-end. The Company’s defined benefit pension plans are funded primarily through contributions from the Company after consideration of recommendations from the pension plans’ independent actuaries and are funded at levels sufficient to comply with local requirements. During June 2015, the Company’s Board of Directors approved the termination of the U.S. Del Labs Pension Plan. The anticipated plan termination date is September 30, 2015. The Company currently expect that the termination of the plan will be completed during fiscal 2017, and intends to fund the plan to provide for all plan benefits. The Company will fully fund the plan prior to the date of assets are distributed with the plan termination. Settlement gain or loss, if any, resulting from the termination will be recognized at that time. On October 27, 2014, the Society of Actuaries published RP-2014 Mortality Tables and Mortality Improvement Scale MP-2014, which both reflect improved longevity. The Company adopted the change to the mortality assumptions to re-measure our US defined benefit pension plan obligations as of June 30, 2015. Other Post-Employment Benefit Plans (“OPEB”) -The Company provides certain post-employment health and life insurance benefits for certain employees and spouses principally in the U.S. and Canada if certain age and service requirements are met. Estimated benefits to be paid by the Company are expensed over the service period of each employee based on calculations performed by an independent actuary. In addition, the Company has a supplemental retirement plan and a termination benefit plan for selected salaried employees. On October 27, 2014, the Society of Actuaries published RP-2014 Mortality Tables and Mortality Improvement Scale MP-2014, which both reflect improved longevity. The Company adopted the change to the mortality assumptions to re-measure our US other post-employment benefit plan obligations as of June 30, 2015. During fiscal 2015, the Company’s U.S. OPEB plan changed to a retiree health exchange with a subsidy to eligible retiree participants through a Health Reimbursement Account (“HRA”). As a result of the plan change, the Company recognized $36.9 of prior service credits which, has been recognized in Other Comprehensive Income for fiscal 2015. The aggregate reconciliation of the projected benefit obligations, plan assets, funded status and amounts recognized in the Company’s Consolidated Financial Statements related to the Company’s pension plans and other post-employment benefit plans is presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2015 2014 2015 2014 2015 2014 2015 2014 Change in benefit obligation Benefit obligation-July 1 $ 80.8 $ 72.8 $ 197.4 $ 166.6 $ 86.0 $77.7 $ 364.2 $317.1 Service cost — — 5.5 5.7 1.9 2.3 7.4 8.0 Interest cost 3.3 3.4 4.3 5.5 2.7 3.4 10.3 12.3 Plan participants’ contributions — — 2.0 1.7 0.4 — 2.4 1.7 Plan amendments — — 0.3 2.1 (36.9 ) — (36.6 ) 2.1 Benefits paid (4.0 ) (4.3 ) (6.4 ) (9.0 ) (3.1 ) (2.0) (13.5 ) (15.3) Premiums paid — — (0.6 ) (0.9 ) — — (0.6 ) (0.9) Pension Curtailment — — (1.5 ) (0.6 ) (0.1 ) — (1.6 ) (0.6) Pension Settlements — — (6.1 ) (0.1 ) — — (6.1 ) (0.1) Acquisition and transfer — — 6.2 1.3 — — 6.2 1.3 Actuarial loss (gain) (2.4 ) 8.9 7.4 17.3 (2.5 ) 5.4 2.5 31.6 Effect of exchange rates — — (31.7 ) 7.8 (0.3 ) — (32.0 ) 7.8 Other — — 0.4 — 0.1 (0.8) 0.5 (0.8) Benefit obligation-June 30 $ 77.7 $ 80.8 $ 177.2 $ 197.4 $ 48.2 $ 86.0 $ 303.1 $ 364.2 Change in plan assets Fair value of plan assets-July 1 $ 45.9 $ 36.9 $ 37.5 $ 30.6 $ — $ — $ 83.4 $ 67.5 Actual return on plan assets 2.5 4.3 2.3 1.8 — — 4.8 6.1 Employer contributions 7.8 9.0 8.6 10.3 2.7 2.0 19.1 21.3 Plan participants’ contributions — — 2.0 1.7 0.4 — 2.4 1.7 Benefits paid (4.0 ) (4.3 ) (6.4 ) (9.0 ) (3.1 ) (2.0 ) (13.5 ) (15.3) Premiums paid — — (0.6 ) (0.9 ) — — (0.6 ) (0.9) Plan settlements — — (6.1 ) — — — (6.1 ) — Acquisition and transfer — — 2.8 1.3 — — 2.8 1.3 Effect of exchange rates — — (3.5 ) 1.7 — — (3.5 ) 1.7 Other — — — — — — — — Fair value of plan assets-June 30 52.2 45.9 36.6 37.5 — — 88.8 83.4 Funded status-June 30 $ (25.5 ) $ (34.9 ) $ (140.6 ) $ (159.9 ) $ (48.2 ) $ (86.0 ) $ (214.3 ) $ (280.8 ) With respect to the Company’s pension plans and other post-employment benefit plans, amounts recognized in the Company’s Consolidated Balance Sheets as of June 30, 2015 and 2014 , are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2015 2014 2015 2014 2015 2014 2015 2014 Noncurrent assets $ — $ — $ — $ — $ — $ — $ — $ — Current liabilities (0.7 ) (1.5 ) (4.6 ) (5.0 ) (2.5 ) (1.8 ) (7.8 ) (8.3 ) Noncurrent liabilities (24.8 ) (33.4 ) (136.0 ) (154.9 ) (45.7 ) (84.2 ) (206.5 ) (272.5 ) Funded Status (25.5 ) (34.9 ) (140.6 ) (159.9 ) (48.2 ) (86.0 ) (214.3 ) (280.8 ) AOC(L)/I (13.6 ) (17.4 ) (48.2 ) (56.1 ) 35.2 (0.8 ) (26.6 ) (74.3 ) Net amount recognized $ (39.1 ) $ (52.3 ) $ (188.8 ) $ (216.0 ) $ (13.0 ) $ (86.8 ) $ (240.9 ) $ (355.1 ) The accumulated benefit obligation for the U.S. defined benefit pension plans was $76.7 and $80.8 as of June 30, 2015 and 2014 , respectively. The accumulated benefit obligation for international defined benefit pension plans was $169.4 and $189.3 as of June 30, 2015 and 2014 , respectively. Pension plans with accumulated benefit obligations in excess of plan assets and projected benefit obligations in excess of plan assets are presented below: Pension plans with accumulated benefit obligations in excess of plan assets Pension plans with projected benefit obligations in excess of plan assets U.S. International U.S. International 2015 2014 2015 2014 2015 2014 2015 2014 Projected benefit obligation $ 77.8 $ 80.8 $ 175.8 $ 195.7 $ 77.8 $ 80.8 $ 177.1 $ 197.6 Accumulated benefit obligation $ 76.7 $ 80.8 $ 168.3 $ 187.7 $ 76.7 $ 80.8 $ 169.4 $ 189.3 Fair value of plan assets $ 52.2 $ 45.9 $ 35.4 $ 35.6 $ 52.2 $ 45.9 $ 36.6 $ 37.5 Net Periodic Benefit Cost The components of net periodic benefit cost for pension plans and other post-employment benefit plans recognized in the Consolidated Statements of Operations are presented below: Year Ended June 30, Pension Plans Other Post- Employment Benefits U.S. International Total 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 Service cost $ — $ — $ — $ 5.5 $ 5.7 $ 4.5 $ 1.9 $ 2.3 $ 2.8 $ 7.4 $ 8.0 $ 7.3 Interest cost 3.3 3.4 3.3 4.3 5.5 5.6 2.7 3.4 3.6 10.3 12.3 12.5 Expected return on plan assets (3.0 ) (2.5 ) (2.3 ) (1.2 ) (1.2 ) (1.0 ) — — — (4.2 ) (3.7 ) (3.3 ) Amortization of prior service (credit) cost — — — 0.3 0.2 0.1 (3.1 ) (0.2 ) (0.2 ) (2.8 ) — (0.1 ) Amortization of net loss (gain) 2.0 1.0 2.9 3.1 2.1 1.3 (0.1 ) (1.1 ) — 5.0 2.0 4.2 Settlements loss (gain) recognized — — — 1.2 (0.1 ) (0.1 ) (0.1 ) — — 1.1 (0.1 ) (0.1 ) Curtailment (gain) loss recognized — — — (0.6 ) (0.6 ) — — — — (0.6 ) (0.6 ) — Net periodic benefit cost $ 2.3 $ 1.9 $ 3.9 $ 12.6 $ 11.6 $ 10.4 $ 1.3 $ 4.4 $ 6.2 $ 16.2 $ 17.9 $ 20.5 Pre-tax amounts recognized in AOC(L)/I, which have not yet been recognized as a component of net periodic benefit cost are presented below: Pension Plans Other Post-Employment Benefits U.S. International Total 2015 2014 2015 2014 2015 2014 2015 2014 Net actuarial (loss) gain $ (13.6 ) $ (17.4 ) $ (45.4 ) $ (52.9 ) $ 1.1 $ (1.0 ) $ (57.9 ) $ (71.3 ) Prior service (cost) credit — — (2.8 ) (3.2 ) 34.1 0.2 31.3 (3.0 ) Total recognized in AOC(L)/I $ (13.6 ) $ (17.4 ) $ (48.2 ) $ (56.1 ) $ 35.2 $ (0.8 ) $ (26.6 ) $ (74.3 ) Changes in plan assets and benefit obligations recognized in OCI/(L) during the fiscal year are presented below: Pension Plans Other Post-Employment Benefits U.S. International Total 2015 2014 2015 2014 2015 2014 2015 2014 Net actuarial (loss) gain $ 1.8 $ (7.1 ) $ (5.6 ) $ (16.7 ) $ 2.3 $ (5.4 ) $ (1.5 ) $ (29.2 ) Amortization of prior service cost (credit) — — 0.3 0.2 (3.1 ) (0.2 ) (2.8 ) — Recognized net actuarial loss (gain) 2.0 1.0 4.3 2.1 (0.1 ) (1.1 ) 6.2 2.0 Prior service cost — — (0.3 ) (2.1 ) 36.9 — 36.6 (2.1 ) Effect of exchange rates — — 9.2 (2.0 ) — 0.2 9.2 (1.8 ) Total recognized in OCI/(L) $ 3.8 $ (6.1 ) $ 7.9 $ (18.5 ) $ 36.0 $ (6.5 ) $ 47.7 $ (31.1 ) Amounts in AOCI/(L) expected to be amortized as components of net periodic benefit cost during fiscal 2016 are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International Prior service (cost) credit $ — $ (0.2 ) $ 5.9 $ 5.7 Net loss (1.2 ) (3.3 ) — (4.5 ) $ (1.2 ) $ (3.5 ) $ 5.9 $ 1.2 Pension and Other Post-Employment Benefit Assumptions The weighted-average assumptions used to determine the Company’s projected benefit obligation above are presented below: Pension Plans Other Post-Employment Benefits U.S. International 2015 2014 2015 2014 2015 2014 Discount rates 4.1%-4.5% 3.1%-4.4% 1.0%-2.7% 1.8%-3.2% 4.1%-4.6 4.8% Future compensation growth rates N/A N/A 1.5%-2.5% 2.0%-2.5% N/A N/A The weighted-average assumptions used to determine the Company’s net periodic benefit cost in fiscal 2015 , 2014 and 2013 are presented below: Pension Plans Other Post- U.S. International 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rates 3.1%-4.5% 3.6%-5.0% 3.4%-4.6% 1.8%-3.2% 2.3%-3.8% 2.2%-4.5% 4.2%-4.8% 5.4% 4.9% Future compensation growth rates N/A N/A N/A 2.0%-2.5% 2.0%-2.5% 2.5%-3.0% N/A N/A N/A Expected long-term rates of return on plan assets 6.5% 6.5% 6.5% 2.8%-4.3% 3.3%-4.3% 3.3%-4.3% N/A N/A N/A The health care cost trend rate assumptions have a significant effect on the amounts reported. 2015 2014 2013 Health care cost trend rate assumed for next year 6.3%-6.7% 6.3%-6.9% 7.1%-8.0% Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5% 5% 5% Year that the rate reaches the ultimate trend rate 2022-2023 2021-2023 2018-2019 A one-percentage point change in assumed health care cost trend rates would have the following effects: One Percentage Point Increase One Percentage Point Decrease Effect on total service cost and interest cost $ 6.1 $ (5.6 ) Effect on post-employment benefit obligation 0.6 (0.5 ) Pension Plan Investment Policy The Company’s investment policies and strategies for plan assets are to achieve the greatest return consistent with the fiduciary character of the plan and to maintain a level of liquidity that is sufficient to meet the need for timely payment of benefits. The goals of the investment managers include minimizing risk and achieving growth in principal value so that the purchasing power of such value is maintained with respect to the rate of inflation. The pension plan’s return on assets is based on management’s expectations of long-term average rates of return to be achieved by the underlying investment portfolios. In establishing this assumption, management considers historical and expected returns for the assets in which the plan is invested, as well as current economic and market conditions. The asset allocation decision includes consideration of future retirements, lump-sum elections, growth in the number of participants, company contributions and cash flow. These actual characteristics of the plan place certain demands upon the level, risk and required growth of trust assets. Actual asset allocation is regularly reviewed and periodically rebalanced to the strategic allocation when considered appropriate. The target and weighted-average asset allocations for the Company’s U.S. pension plans as of June 30, 2015 and 2014 , by asset category are presented below: % of Plan Assets at Year Ended Target 2015 2014 Equity securities 45 % 39 % 44 % Fixed income securities 55 % 46 % 53 % Cash and other investments — % 15 % 3 % The following is a description of the valuation methodologies used for plan assets measured at fair value: Equity securities (domestic and international) -The fair values reflect the closing price reported on a major market where the individual securities are traded. These investments are classified within Level 1 of the valuation hierarchy. U.S. government and government agencies fixed income securities -When quoted prices are available in an active market, the investments are classified as Level 1. When quoted market prices are not available in an active market, these investments are classified as Level 2. Corporate securities -The fair values are based on a compilation of primarily observable market information or a broker quote in a non-active market. These investments are primarily classified within Level 2 of the valuation hierarchy. Cash and cash equivalents -The carrying amount approximates fair value, primarily because of the short maturity of cash equivalent instruments. These investments are classified within Level 1 of the valuation hierarchy. Insurance contracts -These instruments are issued by insurance companies. Insurance contracts are generally classified as Level 3 as there are neither quoted prices nor other observable inputs for pricing. Fair Value of Plan Assets The U.S. and international pension plan assets that the Company measures at fair value on a recurring basis, based on the fair value hierarchy as described in Note 2, as of June 30, 2015 and 2014 are presented below: Level 1 Level 2 Level 3 Total 2015 2014 2015 2014 2015 2014 2015 2014 Equity securities: Domestic equity securities $ 15.8 $ 15.2 $ — $ — $ — $ — $ 15.8 $ 15.2 International equity securities 4.4 4.7 — — — — 4.4 4.7 Fixed income securities: U.S. Government and government agencies 4.9 5.7 12.3 10.8 — — 17.2 16.5 Corporate securities — — 6.8 8.3 — — 6.8 8.3 Other: Cash and cash equivalents 8.0 1.2 — — — — 8.0 1.2 Insurance contracts — — — — 36.6 37.5 36.6 37.5 Total pension plan assets at fair value-June 30 $ 33.1 $ 26.8 $ 19.1 $ 19.1 $ 36.6 $ 37.5 $ 88.8 $ 83.4 The Company sponsors a qualified defined benefit pension plan for all eligible Swiss employees. Retirement benefits are provided based on employees’ years of service and earnings, or in accordance with applicable employee regulations. Consistent with typical Swiss practice, the pension plan is funded through a guaranteed insurance contract with an insurance company (“IC”). The IC is responsible for the investment strategy of the insurance premiums that the Company submits and does not hold individual assets per participating employer. Assets are invested in accordance with the IC’s own strategies and risk assessments. Under the terms of the contract, the interest rate as well as the capital value is guaranteed for each participant, with the IC assuming any risk to the value of the underlying assets. The IC is a member of a security fund, whose purpose is to cover any shortfall in the event they are not able to fulfill its contractual agreements. The plan assets of the Swiss plan are included in the Level 3 valuation. The benefits of the pension plans in the Netherlands are fully insured with an IC which meets all the benefit payments directly to the beneficiaries as they fall due. The contracts included in the Level 3 valuation reflect the expected benefit payments, discounted using the same rate used to determine the projected benefit obligation. In Spain, the plans’ assets represent the computed value of the insurance contracts owned by the Company. These insurance contracts represent a portion of the IC’s general investments linked to the Company. The value of these contracts is determined by the IC. However, a minimum of 4.0% rate of return is stipulated. Upon retirement, the Company calculates the annuity due to a given participant and to the extent that the amounts linked to that specific employee are not sufficient, the Company funds the difference. In the event that a participant terminates employment prior to retirement, the value for that individual reverts back to the Company. The plan assets of the Spanish plan are included in the Level 3 valuation. The reconciliations of Level 3 plan assets measured at fair value in fiscal 2015 and 2014 are presented below: June 30, June 30, Insurance contract: Fair value-July 1 $ 37.5 $ 30.6 Return on plan assets 2.3 1.8 Purchases, sales and settlements, net 0.3 3.4 Effect of exchange rates (3.5 ) 1.7 Fair value-June 30 $ 36.6 $ 37.5 Contributions The Company expects to contribute approximately $0.7 , $9.6 , and $1.6 to its U.S. and international pension plans and other post-employment benefit plans, respectively, during fiscal 2016. Estimated Future Benefit Payments Expected benefit payments, which reflect expected future service, as appropriate, are presented below: Pension Plans Other Post-Employment Benefits Total Fiscal Year Ending June 30 U.S International 2016 $ 3.8 $ 7.6 $ 1.8 $ 13.2 2017 4.5 7.3 1.7 13.5 2018 4.5 7.5 2.0 14 2019 4.6 7.8 2.3 14.7 2020 4.7 8.6 2.5 15.8 2020 - 2023 24.1 41.5 15.3 80.9 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The financial assets and liabilities that the Company measures at fair value on a recurring basis based on the fair value hierarchy, as of June 30, 2015 and 2014 are presented below: Level 1 Level 2 Level 3 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Financial assets and liabilities Recurring fair value measurements Assets: Foreign exchange contracts $ — $ — $ 12.4 $ 2.1 $ — $ — Liabilities: Foreign exchange contracts $ — $ — $ 6.3 $ 11.5 $ — $ — Contingent consideration - business combinations — — — — 0.9 1.1 Total Liabilities $ — $ — $ 6.3 $ 11.5 $ 0.9 $ 1.1 Total recurring fair value measurements $ — $ — $ 6.1 $ (9.4 ) $ (0.9 ) $ (1.1 ) The fair values of the Company’s financial instruments estimated as of June 30, 2015 and 2014 are presented below: June 30, 2015 June 30, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Coty Inc. Credit Agreements $ 2,611.5 $ 2,614.2 $ 2,774.5 $ 2,763.2 Senior Notes - Series A — — 100.0 109.7 Senior Notes - Series B — — 225.0 256.3 Senior Notes - Series C — — 175.0 199.9 Dividends payable 1.4 1.1 0.9 0.7 The Company has concluded that the carrying amounts of cash and cash equivalents, trade receivables, accounts payable, certain accrued expenses, and short-term debt approximate their fair values due to their short-term nature. The following methods and assumptions were used to estimate the fair value of the Company’s other financial instruments for which it is practicable to estimate that value: Foreign exchange contracts —The Company uses currency spot and forward rates to value the foreign exchange contracts, which were obtained from an independent pricing service. Based on the assumptions used to value foreign exchange contracts at fair value, these assets and/or liabilities are categorized as Level 2 in the fair value hierarchy. Contingent consideration - business combinations — The Company uses an industry standard valuation model within the option pricing framework to value the Contingent Consideration. The inputs used to measure the fair value included weighted net sales projections through the settlement date of the contingent consideration, revenue volatility using comparable companies' historical performance and a present value calculation to discount the expected settlement. Based on the assumptions used to value the contingent consideration, these liabilities are categorized as Level 3 in the fair value hierarchy. Coty Inc. Credit Agreements, Term Loans, and Senior Notes —The Company uses the income approach to value the Credit Agreements, Term Loan, and the Senior Notes. The Company uses a present value calculation to discount interest payments and the final maturity payment on the Credit Agreements, Term Loan, and the Senior Notes using a discounted cash flow model based on observable inputs. The Company discounts the debt based on what the current market rates would offer the Company as of the reporting date. Based on the assumptions used to value the Credit Agreements, Term Loan, and the Senior Notes at fair value, this debt is categorized as Level 2 in the fair value hierarchy. Dividends payable — The Company uses the income approach to value the long-term portion of Dividends Payable by utilizing a present value calculation to discount the settlements of the long-term portion of Dividends Payable which is calculated using a discounted cash flow model based on observable inputs. The Company discounts the liability based on an internally developed discount rate as of the reporting date. Based on the assumptions used to value the long-term portion of Dividends Payable at fair value, this debt is categorized as Level 3 in the fair value hierarchy. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company is exposed to foreign currency exchange fluctuations through its global operations, with manufacturing and distribution facilities in various countries around the world. The Company may reduce its exposure to fluctuations in the cash flows associated with changes in foreign exchange rates by creating offsetting positions through the use of derivative instruments. The Company expects that any gain or loss on the derivative instruments would generally offset the expected increase or decrease in the value of the underlying firm commitments or forecasted transactions. During fiscal 2014, the Company launched a program to qualify derivatives for hedge accounting treatment using foreign currency forward contracts. The Company continued entering into derivatives for which hedge accounting treatment has been applied during fiscal 2015 which the Company anticipates realizing in the Consolidated Statements of Operations in fiscal 2016 and 2017. The Company also continued to use certain derivatives as economic hedges of foreign currency exposure on firm commitments and forecasted transactions. Although these derivatives were not designated for hedge accounting, the overall objective of mitigating foreign currency exposure is the same for all derivative instruments. The Company does not enter into derivative financial instruments for trading or speculative purposes, nor is the Company a party to leveraged derivatives. For derivatives accounted for as hedging instruments, the Company formally designates and documents, at inception, the financial instrument as a hedge of specific underlying forecasted transactions, the risk management objective and the strategy for undertaking the hedge transaction. In addition, the Company formally assesses both at inception and at least quarterly thereafter, whether the financial instruments used in hedging transactions are effective at offsetting changes in either the fair values or cash flows of the related underlying exposures. Any ineffective portion of a financial instrument's change in fair value is immediately recognized into earnings. If it is determined that a derivative or a portion of a derivative is not highly effective as a hedge, the Company will discontinue hedge accounting for the affected derivative or related portion in the related period. Additionally, all of the master agreements governing the Company’s derivative contracts contain standard provisions that could trigger early termination of the contracts in certain circumstances which would require the Company to discontinue hedge accounting, including if the Company were to merge with another entity and the creditworthiness of the surviving entity were to be “materially weaker” than that of the Company prior to the merger. As of June 30, 2015 , foreign currency forward contracts in net liability positions that contained credit-risk-related features were $6.3 . The Company also attempts to minimize credit exposure to counterparties by entering into derivative contracts with counterparties that are major financial institutions. Exposure to credit risk in the event of nonperformance by any of the counterparties is limited to the fair value of contracts in net asset positions, which totaled $12.4 and $2.1 at June 30, 2015 and 2014 , respectively. Accordingly, management of the Company believes risk of material loss under these hedging contracts is remote. Quantitative Information Derivatives are recognized on the balance sheet at their fair values. The following table presents the fair value of derivative instruments outstanding at June 30, 2015 and 2014 : Asset Liability Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Derivatives designated as hedges: Foreign exchange forward contracts Prepaid expenses and other current assets $ 6.8 $ — Accrued expenses and other current liabilities $ 4.8 $ 10.5 Total derivatives designated as hedges $ 6.8 $ — $ 4.8 $ 10.5 Derivatives not designated as hedges: Foreign exchange forward contracts Prepaid expenses and other current assets $ 5.6 $ 2.1 Accrued expenses and other current liabilities $ 1.5 $ 1.0 Total derivatives not designated as hedges $ 5.6 $ 2.1 $ 1.5 $ 1.0 Total derivatives $ 12.4 $ 2.1 $ 6.3 $ 11.5 The table below presents the gross amount of foreign exchange contract hedges recorded as assets and liabilities in Prepaid expenses and other current assets and Accrued expenses and other current liabilities in the Consolidated Balance Sheet, respectively, as of June 30, 2015 : Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Assets $ 16.1 $ (3.7 ) $ 12.4 $ — $ — $ 12.4 Liabilities $ (6.5 ) $ 0.2 $ (6.3 ) $ — $ — $ (6.3 ) The table below presents the gross amount of foreign exchange contract hedges recorded as assets and liabilities in Prepaid expenses and other current assets and Accrued expenses and other current liabilities in the Consolidated Balance Sheet, respectively, as of June 30, 2014 : Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Assets $ 2.2 $ (0.1 ) $ 2.1 $ — $ — $ 2.1 Liabilities $ (12.9 ) $ 1.4 $ (11.5 ) $ — $ — $ (11.5 ) The amount of gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments during the fiscal years ended June 30, 2015 , 2014 and 2013 is presented below: Consolidated Statements of Operations Gain (Loss) Recognized 2015 2014 2013 Interest expense, net (a) $ (37.2 ) $ 0.4 $ 0.8 Net revenues $ (0.1 ) $ — $ — Cost of sales $ (0.3 ) $ 0.1 $ 0.9 Selling, general and administrative $ (0.2 ) $ (0.1 ) $ — (a) The impact on interest expense, net at June 30, 2015 related to derivative contracts entered into to offset fluctuations in the underlying non-functional currency cash balances and intercompany loans at June 30, 2015 is due to increased foreign exchange exposure and higher volatility in currencies during the year, which is more than offset by the revaluation of underlying non-functional currency cash balances. The Company enters into foreign currency forward contracts for anticipated transactions for periods consistent with the Company’s identified exposures to minimize the effect of foreign exchange rate movements on revenues and costs and on the cash flows that the Company receives from foreign subsidiaries and third parties where there is a high probability that anticipated exposures will materialize. The foreign currency forward contracts entered into for these anticipated transactions have been designated as foreign currency cash-flow hedges and have varying maturities through the end of June 2016 . Hedge effectiveness of foreign currency forward contracts is based on the forward-to-forward hypothetical derivative methodology and includes all changes in value. The ineffective portion of foreign currency forward contracts is recorded in current-period earnings. For derivative contracts that are no longer deemed highly effective, hedge accounting is discontinued and gains and losses accumulated in Other comprehensive income (loss) (“AOCI”) are reclassified to earnings when the underlying forecasted transaction occurs. If it is no longer probable that the forecasted transaction will occur, then any gains or losses in AOCI are reclassified to current-period earnings. During the year ended June 30, 2015, the Company made a decision to implement a new business model for certain subsidiaries in Europe. As a result, the existing hedges were no longer deemed effective foreign currency cash-flow hedges. Those hedges were de-designated and the Company reclassified a net loss of $3.9 from AOCI to the Consolidated Statements of Operations. As of June 30, 2015 , all of the Company’s remaining foreign currency forward contracts designated as hedges were highly effective in all material respects. The accumulated loss on these derivative instruments in AOCI, net of tax, was $0.1 and $8.9 as of June 30, 2015 and June 30, 2014 , respectively. The estimated net gain related to these effective hedges that is expected to be reclassified from AOCI into earnings, net of tax, within the next twelve months is $0.2 . The amount of gains and losses reclassified from AOCI to the Consolidated Statements of Operations related to the Company’s derivative financial instruments which are designated as hedging instruments during the fiscal years ended June 30, 2015, 2014 and 2013 is presented below: Consolidated Statements of Operations Classification of Gain (Loss) Reclassified from AOCI/(L) Gain (Loss) Recognized in Operations Year Ended June 30, 2015 2014 2013 Net revenues $ 8.1 $ — $ — Cost of sales $ 0.3 $ — $ — As of June 30, 2015 , the Company had foreign currency forward contracts designated as effective hedges in the notional amount of $277.0 , that mature at various dates through June 2016 . The foreign currencies of the counterparties in the hedged foreign currency forward contracts (notional value stated in U.S. dollars) are principally the British pound ( $97.7 ), euro ( $112.1 ), Australian dollar ( $18.7 ), Canadian dollar ( $37.0 ), and the Russian ruble ( $10.3 ). As of June 30, 2014 , the Company had foreign currency forward contracts designated as effective hedges in the notional amount of $361.3 .The foreign currencies of the counterparties in the hedged foreign currency forward contracts (notional value stated in U.S. dollars) are principally the British pound ($108.5) , euro ($85.8) , Australian dollar ($42.4) , Canadian dollar ($49.5) , Russian ruble ($38.3) , Polish zloty ($30.2) , U.S. dollar ($17.4) , and Japanese yen ($2.5) . As of June 30, 2015 and June 30, 2014 , the Company had foreign currency forward contracts not designated as hedges with a notional value of $1,297.6 and $535.4 , respectively, which mature at various dates through June 2016 . |
NONCONTROLLING INTERESTS AND RE
NONCONTROLLING INTERESTS AND REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests and Redeemable Noncontrolling Interests | NONCONTROLLING INTERESTS AND REDEEMABLE NONCONTROLLING INTERESTS Effective December 28, 2014, the Company entered into an agreement through a majority-owned subsidiary and a third party to create a new subsidiary in Saudi Arabia. The Company contributed 20.25 million SAR ( $5.4 ) for a 75% ownership interest. The new subsidiary engages in the sale, promotion and distribution of fragrances, color cosmetics, and skin & body care products. The Company has the right to purchase the noncontrolling interests (“NCI”) in certain subsidiaries from the NCI holders (each such right, a “Call right”) at certain points in time. On August 23, 2013 , the Company exercised its Call right for 7% of a certain Hong Kong subsidiary from the NCI holder, and it consummated the purchase on January 10, 2014 for $4.4 . The $4.4 is recorded as a reduction to Additional paid-in capital (“APIC”) and NCI of $4.2 and $0.2 , respectively. The effect of the change in the ownership percentage of the NCI on Net income attributable to Coty Inc. is presented below: Year Ended June 30, 2015 2014 2013 Net (loss) income attributable to Coty Inc. $ 232.5 $ (97.4 ) $ 168.0 Decrease in APIC for purchase of Hong Kong NCI — (4.2 ) — Net (loss) income attributable to Coty Inc. and transfers from NCI $ 232.5 $ (101.6 ) $ 168.0 Redeemable Noncontrolling Interests The redeemable noncontrolling interests consist of a 33.0% interest in a consolidated subsidiary in the United Arab Emirates and a 45.0% interest in a consolidated subsidiary in Hong Kong. The Company has the right to purchase the redeemable noncontrolling interests (“RNCI”) in certain subsidiaries from the RNCI holders (each such right, a “Call right”) at certain points in time. In addition to the Call right feature, the noncontrolling interest holders of the Company’s consolidated foreign subsidiaries in the United Arab Emirates (“Middle East”) and Hong Kong have the right to sell the noncontrolling interests to the Company at certain points in time (each such right, a “Put right”). The amount at which the Put right and Call right can be exercised is based on a formula prescribed by the stockholder agreements as summarized in the table below, multiplied by the noncontrolling interest holder’s percentage of stock-holding in the Company. Given the provision of the Put right, the entire noncontrolling interests are redeemable outside of the Company’s control and are recorded in the Consolidated Balance Sheets at the estimated redemption value. The Company adjusts the redeemable noncontrolling interests to the redemption values at the end of each reporting period with changes recognized as adjustments to APIC. On September 20, 2013, the Company gave notice to purchase 7% of a certain Middle East (M.E.) subsidiary. The Company and the RNCI holder amended the M.E. subsidiary’s Shareholders’ Agreement resulting in the Company recording an additional 7% interest in the M.E. subsidiary as of July 1, 2014 and consummated the purchase during the three months ended September 30, 2014 for a purchase price of $15.8 . The $15.8 is recorded as a reduction to Redeemable Noncontrolling Interest in the Company’s Consolidated Statements of Equity and Redeemable Noncontrolling Interests as of June 30, 2015. The purchase price of $15.8 was paid in full as of June 30, 2015. The Company also has the ability to exercise the Call right for the remaining noncontrolling interest of 33% on July 1, 2028, with such transaction to close on July 1, 2029. Middle East Hong Kong Percentage of redeemable noncontrolling interest 33% 45% Earliest exercise date(s) 33.0% in July 2028 June 2016 Formula of redemption value (a) 3-year average 3-year average of EBIT (b) * 6 of EBIT (b) * 8 plus retained earnings less liabilities (c) (a) The redemption value formula related to Hong Kong is subject to a 110% of three year’s averaged net sales cap and net asset value minimum. (b) EBIT is defined in the respective stockholder agreements as earnings before interest and income taxes. (c) Liabilities are defined in the stockholder agreement as all financial indebtedness except bank overdraft required for normalized trading working capital. |
EQUITY
EQUITY | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Equity | EQUITY Initial Public Offering In June 2013 , the Company completed an IPO in which the selling stockholders sold 57.1 million shares of Class A Common Stock. The Company did not receive any proceeds from the sale of shares. Prior to the IPO, the Company’s outstanding shares consisted of 382.8 million shares of Common Stock and no Preferred Stock, each with a value of $0.01 . On the date of the IPO, all shares of Common Stock converted to 72.2 million shares of Class A Common Stock and 310.6 million shares of Class B Common Stock. Common Stock As of June 30, 2015 , the Company’s common stock consisted of Class A Common Stock and Class B Common Stock, each with a par value of $0.01 . Class A Common Stock and Class B Common Stock are identical in all respects except for voting rights, certain conversion rights, and transfer restrictions in respect to the shares of Class B Common Stock. The holders of Class A Common Stock are entitled to one vote per share and the holders of Class B Common Stock are entitled to ten votes per share. Holders of Class A Common Stock and Class B Common Stock are entitled to pro rata distribution of dividends if and when declared by the Board of Directors. As of June 30, 2015 , total authorized shares of Class A Common Stock and Class B Common Stock are 800.0 million and 262.0 million , respectively, and total outstanding shares of Class A Common Stock and Class B Common Stock are 98.8 million and 262.0 million , respectively. During the year ended June 30, 2015 the Company issued 5.8 million shares of its Class A Common Stock and received $48.5 in cash in connection with exercise of employee stock options, settlement of RSUs and special incentive awards, and purchase of shares by employees under the Platinum Program (“Platinum”), which is an employee stock ownership program under the Omnibus Equity and Long-Term Incentive Plan (“Omnibus LTIP”). Additionally, the Company issued 1.4 million shares of its Class A Common Stock and recorded Additional Paid in Capital (“APIC”) of $12.5 in relation to the exercise of stock options by Mr. Michele Scannavini (“Mr. Scannavini”), its former Chief Executive Officer. Between April 8, 2015 and June 12, 2015, JABC, the Company’s controlling stockholder sold 1.7 million shares of its Class B shares to certain Coty executives and two individuals intended to become Coty executives. Upon the consummation of these sales of the Class B shares, such shares converted into an equal number of Class A Common Stock and the Company reclassified 1.7 million shares from Class B to Class A Common Stock on the Consolidated Balance Sheets and Consolidated Statements of Equity and Redeemable Noncontrolling Interests as of June 30, 2015. The Company did not receive any shares or proceeds from the sale of shares by JABC. On June 5, 2014, the Company entered into a Stock Purchase Agreement (the “PE Stock Purchase Agreement”) with Worldwide Beauty Offshore L.P. and Worldwide Beauty Onshore L.P. (“Rhone”), Berkshire Fund VII, L.P., Berkshire Fund VII-A, L.P., Berkshire Investors III LLC and Berkshire Investor IV LLC ("Berkshire"), M. Steven Langman and Bradley Bloom. Rhone, Berkshire, M. Steven Langman and Bradley Bloom were all considered related parties. In connection with the agreement, the Company agreed to repurchase a total of 27.9 million and less than 0.1 million shares of Class B Common Stock and Class A Common Stock, respectively, on June 12, 2014, as further discussed in the Treasury Stock section below. On December 13, 2013 , Berkshire distributed 4.0 million shares of its Class B Common Stock to its general and limited partners and members. On March 14 and June 6, 2014, Berkshire distributed an additional 6.0 million shares and 1.0 million shares of its Class B Common Stock, respectively. The Company did not receive any shares or proceeds from the distribution of shares by Berkshire. On July 12, 2013, the underwriters of the Company’s IPO exercised their option under the underwriting agreement to purchase from the selling stockholders 8.0 million additional shares of Class A Common Stock at the initial offering price (the “Overallotment Option”). The Company did not receive any proceeds from the sale of shares by the selling stockholders. In connection with the Overallotment Option, the distributions of Class B Common Stock and repurchase of Class B Common Stock disclosed above, the Company reclassified 46.9 million shares from Class B Common Stock to Class A Common Stock on the Consolidated Balance Sheets and Consolidated Statements of Equity and Redeemable Noncontrolling Interests as of June 30, 2014. Preferred Stock As of June 30, 2015, the Company’s preferred stock consisted of Series A Preferred Stock with a par value of $0.01 . The Series A Preferred Stock is not entitled to receive any dividends and has no voting rights except as required by law. As of June 30, 2015, total authorized shares of preferred stock are 20.0 million and total outstanding shares of Series A Preferred Stock are 1.9 million . In April 2015, the Company sold 7.4 million shares of Series A Preferred Stock for $0.01 par value to four executives, of which 5.5 million were subsequently forfeited and repurchased by the Company at the $0.01 par value. The outstanding 1.9 million Series A Preferred Stock generally vest on April 15, 2020. Under the terms provided in the various subscription agreements, the holders of the vested Series A Preferred Stock are entitled to exchange the Series A Preferred Stock at the election of the Company into either: (i) cash equal to the market value of a share of Class A Common Stock on the date of conversion less $27.97 or (ii) the number of whole shares whose value is equal to the aggregate market value of a share of Class A Common Stock on the date of conversion less $27.97 . If the holder does not exchange the vested Series A Preferred Stock by a certain expiration date, the Company must automatically exchange the Series A Preferred Stock into cash for the pro-rata portion of the grants attributable to services rendered by the holder within the United States. Therefore, these grants are accounted for using the liability plan accounting at issuance. As a holder provides service outside the U.S., a pro-rata portion of the grants are converted to equity awards to the extent the Company is not required to settle the award in cash, which are measured and fixed at the quarter end date that such services are provided, based on the estimated fair value of the award and recognized on a straight-line basis, net of estimated forfeitures, over the employee’s requisite service period. As of June 30, 2015, all of these Series A Preferred Stock have been classified as a liability in Other noncurrent liabilities. Accumulated Other Comprehensive Income (Loss) (Losses) Gains on Cash Flow Hedges Pension and Other Post-Employment Benefit Plans Foreign Currency Translation Adjustments Total Beginning Balance at July 1, 2013 $ — $ (33.4 ) $ (85.2 ) $ (118.6 ) Other Comprehensive income before reclassifications (8.9 ) (22.7 ) 63.7 32.1 Amounts reclassified from AOCL (a) — 1.4 — 1.4 Net current-period other comprehensive income (8.9 ) (21.3 ) 63.7 33.5 Ending balance at June 30, 2014 $ (8.9 ) $ (54.7 ) $ (21.5 ) $ (85.1 ) Other Comprehensive income before reclassifications $ 12.8 $ 27.7 $ (227.8 ) $ (187.3 ) Less: Net Amounts reclassified from AOCL (a) (4.0 ) 2.4 — (1.6 ) Net current-period other comprehensive income $ 8.8 $ 30.1 $ (227.8 ) $ (188.9 ) Ending balance at June 30, 2015 $ (0.1 ) $ (24.6 ) $ (249.3 ) $ (274.0 ) (a) Amortization of actuarial losses of $3.4 and $2.0 , net of taxes of $1.0 and $(0.6) , were reclassified out of AOCL and included in the computation of net period pension costs for the fiscal year ending June 30, 2015 and 2014, respectively (see Note 18). Treasury Stock In connection with the Company’s Class A Common Stock repurchase program announced on February 14, 2014 and June 3, 2014, the Company repurchased 13.4 shares of its Class A Common Stock during the fiscal years ended June 30, 2015. The shares were purchased in multiple transactions at prices ranging from $18.64 to $21.99 during the fiscal year end June 30, 2015. The fair value of all shares repurchased was $263.1 during the fiscal year end June 30, 2015 and was reflected as an increase to Treasury stock in the Company’s Consolidated Balance Sheets and Consolidated Statements of Equity and Redeemable Noncontrolling Interests. On April 1, 2015, the Company completed its previously announced purchase of 100% of the net assets of the Bourjois cosmetics brand (“Bourjois”) from Chanel International B.V. (“CHANEL”) pursuant to the Stock Purchase Agreement, dated as of March 12, 2015, between the Company and CHANEL (the “Stock Purchase Agreement”). The Company issued to its foreign subsidiaries 15.5 million shares of its Class A Common Stock for $376.8 in cash and subsequently exchanged these shares with CHANEL as consideration for Bourjois. The shares had an approximate value of $376.8 based on the closing value of the Company’s Class A Common Stock on the New York Stock Exchange. As a result of the purchase, the Company reissued the total of $269.9 Treasury Stock with a charge to APIC of $106.9 . On September 29, 2014, the Company entered into an agreement with Mr. Scannavini, the Company’s former Chief Executive Officer in connection with his resignation. The agreement required the Company to purchase on or before January 27, 2015 all Class A Common Stock Mr. Scannavini held directly or indirectly, including shares of Class A Common Stock obtained upon the exercise of certain stock options, for a share price of $17.21 , which is the average closing value of the Class A Common Stock on the New York Stock Exchange over five business days immediately preceding September 29, 2014. As a result of the agreement, the Company purchased 2.4 million shares of its Class A Common Stock for $42.0 , which is reflected as an increase to Treasury stock in the Company’s Consolidated Balance Sheets and Consolidated Statements of Equity and Redeemable Noncontrolling Interests during the year ended June 30, 2015. The Company made a net payment to Mr. Scannavini of $29.5 , which is the purchase amount of $42.0 net of the aggregate exercise price of his vested stock options of $12.5 . On June 12, 2014, in connection with the PE Stock Purchase Agreement, a related party transaction, the Company repurchased a total of 27.9 million and less than 0.1 million shares of Class B Common Stock and Class A Common Stock, respectively, for $16.78 per share, which was determined by calculating the volume weighted average price of the Company's Class A Common Stock from May 30, 2014 through June 5, 2014, inclusive. The fair value of Class B shares and Class A shares repurchased was $468.0 and $1.0 , respectively, and was reflected as an increase to Treasury stock in the Company’s Consolidated Balance Sheets and Consolidated Statements of Equity and Redeemable Noncontrolling Interests. In connection with its repurchase program, the Company repurchased 6.6 million shares of its Class A Common Stock during fiscal 2014. The shares were purchased in multiple transactions at prices ranging from $14.64 to $15.69 . The fair value of all shares repurchased was $100.0 and was reflected as an increase to Treasury stock in the Company’s Consolidated Balance Sheets and Consolidated Statements of Equity and Redeemable Noncontrolling Interests. Dividends On September 16, 2014, the Company announced a cash dividend of $0.20 per share, or $71.9 on its Class A and Class B Common Stock. Of the $71.9 , $71.0 was paid on October 15, 2014 to holders of record of Class A and Class B Common Stock on October 1, 2014 and was recorded as a decrease to APIC in the Consolidated Balance Sheet as of June 30, 2015. The remaining $0.9 is payable upon settlement of the RSUs outstanding as of October 1, 2014, and is recorded as Other noncurrent liabilities in the Consolidated Balance Sheet. Additionally, the Company reduced the dividend accrual recorded in a prior period by $0.3 to adjust for accrued dividends on RSUs no longer expected to vest, which was recorded as an increase to APIC in the Consolidated Balance Sheet as of June 30, 2015. Total accrued dividends on unvested RSUs of $1.4 are included in Other noncurrent liabilities in the Consolidated Balance Sheet as of June 30, 2015. On September 17, 2013 , the Company declared a cash dividend of $0.20 per share, or $77.6 on its Class A Common Stock and Class B Common Stock. Of the $77.6 , which was recorded as a decrease to APIC in the Consolidated Balance Sheet, $76.9 was paid on October 31, 2013 to holders of record of Class A Common Stock and Class B Common Stock on October 11, 2013 . The remaining $0.7 is payable upon settlement of RSUs and vesting of restricted shares of Class A Common Stock, each outstanding as of October 11, 2013 , and is recorded as Other noncurrent liabilities in the Consolidated Balance Sheet. Additionally, the Company reduced the dividend accrual recorded in a prior period by $0.2 to adjust for accrued dividends on RSUs no longer expected to vest, which was recorded as an increase to APIC in the Consolidated Balance Sheet. Total accrued dividends on unvested RSUs of $0.9 are included in Other noncurrent liabilities in the Consolidated Balance Sheet as of June 30, 2014. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans | SHARE-BASED COMPENSATION PLANS The Company has various share-based compensation programs (the “Plans”) under which awards, including non-qualified stock options, Series A Preferred Stock, RSUs and other share-based awards, may be granted or shares of Class A Common Stock may be purchased. As of June 30, 2015 , approximately 12.5 million shares of the Company's Class A Common Stock were available to be granted pursuant to these Plans. The Company accounts for its share-based compensation plans for common stock as equity plans. The share-based compensation for equity plans is estimated and fixed at the grant date, based on the estimated fair value of the award. Series A Preferred Stock is accounted for using the liability plan accounting to the extent the award is expected to be settled in cash. Accordingly, share-based compensation expense for the liability plan awards are measured at the end of each reporting period based on the fair value of the award on each reporting date and recognized as an expense to the extent earned. Total share-based compensation expense for fiscal 2015 , 2014 and 2013 of $35.9 , $46.8 and $144.4 , respectively, is included in Selling, general and administrative expenses in the Consolidated Statements of Operations. As of June 30, 2015 , the total unrecognized share-based compensation expense related to unvested stock options, Series A Preferred Stock, restricted, and other share awards is $19.6 , $16.0 and $32.8 , respectively. The unrecognized share-based compensation expense related to unvested stock options, Series A Preferred Stock, and restricted and other share awards is expected to be recognized over a weighted-average period of 2.91 , 4.87 , and 3.22 years, respectively. Nonqualified Stock Options In April 2015, the Company granted 1.7 million nonqualified stock option awards to a select group of key executives. These options are accounted for using equity plan accounting whereby the share-based compensation expense is estimated and fixed at the grant date based on the estimated value of the options using the Black-Scholes valuation model. Prior to June 12, 2013 , the Company’s nonqualified and tandem stock option plans allowed all option holders to exercise their vested options for cash or for shares of Common Stock. These options were granted to eligible employees as specified in the terms of the plans. For these awards, the fair value of the award which determined the measurement of the equity on the balance sheet was measured at the grant date. Fluctuations in the fair value of the liability awards were recorded as increases or decreases in share-based compensation expense until the award was settled. During fiscal 2015, the share-based compensation expense recognized on nonqualified stock options is based upon the fair value on April 15, 2015, and June 12, 2013 were estimated using the Black-Scholes valuation model with the following assumptions: 2015 2014 2013 Expected life 7.50 years N/A 4.03 years Risk-free interest rate 1.79 % N/A 0.84 % Expected volatility 31.73 % N/A 32.53 % Expected dividend yield 0.80 % N/A 0.86 % Expected life —The expected life represents the period of time (years) that options granted are expected to be outstanding, which the Company calculates using a formula based on the vesting term and the contractual life of the respective option. Risk-free interest rate —The Company bases the risk-free interest rate on the implied yield available on a U.S. Treasury note with a term equal to the expected term of the underlying options was 1.79% as of April 15, 2015, and ranged from 0.11% to 1.30% as of June 12, 2013. Expected volatility —The Company calculates expected volatility based on median volatility for peer companies using expected life daily stock price history equal to the expected life. Expected dividend yield —The Company used an expected dividend yield of 0.80% as of April 15, 2015, and 0.86% as of June 12, 2013, respectively, which is based upon the Company’s expectation to pay dividends over the contractual term of the options. Prior to June 12, 2013 , all options related to share-based compensation plans were granted at the estimated fair value of Common Stock, which was determined based upon, in each instance, an evaluation by management with assistance from a major investment banking firm. The valuation of shares was based on (i) an aggregate value Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) benchmark of future earnings and (ii) a price earnings growth rate benchmark, with a comparison to peer group companies and market multiples. Additionally, the Company applied a theoretical liquidity discount of 10% to the valuation associated with the illiquidity of the Common Stock due to the absence of a public market for the stock and certain restrictions from the transfer of stock in a private entity. Nonqualified stock options generally become exercisable 5 years from the date of the grant and have a 5 -year exercise period from the date the grant becomes fully vested for a total contractual life of 10 years . The Company’s outstanding nonqualified stock options as of June 30, 2015 and activity during the fiscal year then ended are presented below: Shares (in millions) Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term Outstanding at July 1, 2014 23.2 $ 9.32 Granted 1.7 24.13 Exercised (6.8 ) 8.59 Forfeited (4.1 ) 9.99 Outstanding at June 30, 2015 14.0 $ 11.32 Vested and expected to vest at June 30, 2015 12.5 $ 10.79 $ 264.3 5.15 Exercisable at June 30, 2015 3.7 $ 8.41 $ 87.7 2.97 The grant prices of the outstanding options as of June 30, 2015 ranged from $5.10 to $24.13 . The grant prices for exercisable options ranged from $5.10 to $10.50 . A summary of the aggregated weighted-average grant date fair value of stock options granted, total intrinsic value of stock options exercised and payment to settle nonqualified stock options for fiscal 2015 , 2014 and 2013 is presented below: 2015 2014 2013 Weighted-average grant date fair value of stock options $ 8.75 $ — $ — Intrinsic value of options exercised 77.2 28.3 160.6 Payment to settle nonqualified stock options of former CEOs 12.0 — 101.4 Payment to settle nonqualified stock options 53.0 The Company’s non-vested nonqualified stock options as of June 30, 2015 and activity during the fiscal year then ended are presented below: Shares (in millions) Weighted Average Grant Date Fair Value Non-vested at July 1, 2014 16.2 $ 3.81 Granted 1.7 24.13 Vested (3.5 ) 3.56 Forfeited (4.1 ) 3.89 Non-vested at June 30, 2015 10.3 $ 4.70 The share-based compensation expense recognized on the nonqualified stock options is $9.5 , $28.6 and $98.8 during fiscal 2015 , 2014 and 2013 , respectively. Prior to June 12, 2013 , the Pre-IPO share-based compensation plans governing the exercised options contained a clause permitting the participants to sell their unrestricted shares of Common Stock back to the Company without restrictions. During the period of time that the Company retained the risks and rewards of share ownership, the Company recorded the value of Common Stock in excess of par value to Accrued expenses and other current liabilities and the change in fair value of Common Stock issued to option holders of $0.4 to share-based compensation expense in fiscal 2013. There was no fair value adjustment recorded for fiscal 2015 or 2014. Series A Preferred Stock The Company sold 7.4 million shares of Series A Preferred Stock for $0.01 par value to four executives, of which 5.5 million were subsequently forfeited and repurchased by the Company at the $0.01 par value. The exercise price of the outstanding Series A Preferred Stock as of June 30, 2015 was $27.97 . The holders of the 1.9 million Series A Preferred Stock are entitled to initiate an exchange into, at the election of the Company, either: (i) cash equal to the market value of a share of Class A Common Stock on the date of conversion less $27.97 or (ii) the number of whole shares whose value is equal to the market value of a share of Class A Common Stock on the date of conversion less $27.97 . The Series A Preferred Stock are accounted for as a liability as of June 30, 2015 and the Company recognized an expense of $0.4 in fiscal 2015, accordingly. The fair value of the Company’s outstanding Series A Preferred Stock liability on June 30, 2015 were estimated using the Black-Scholes valuation model with the following assumptions: 2015 Expected life 5.79 years Risk-free interest rate 1.96 % Expected volatility 26.14 % Expected dividend yield 0.63 % Expected life -The expected life represents the period of time (years) that Series A Preferred Stock granted are expected to be outstanding, which the Company calculates using a formula based on the vesting term and the contractual life of the respective Series A Preferred Stock. Risk-free interest rate -The Company bases the risk-free interest rate on the implied yield available on a U.S. Treasury note with a term equal to the expected term of the underlying Series A Preferred Stock, which is 1.96% as of June 30, 2015. Expected volatility -The Company calculates expected volatility based on median volatility for peer companies using 5.79 years of daily stock price history. Expected dividend yield -The Company used an expected dividend yield of 0.63% as of June 30, 2015, which is based upon the Company’s expectation to pay dividends over the contractual term of the shares of Series A Preferred Stock. Shares of Series A Preferred Stock generally become exercisable 5 years from the date of the grant and have a 2 -year exercise period from the date the grant becomes fully vested for a total contractual life of 7 years. The Company’s non-vested shares of Series A Preferred Stock as of June 30, 2015 and activity during the fiscal year then ended are presented below: Shares Weighted Non-vested at July 1, 2014 — $ — Granted 7.4 5.24 Vested — — Forfeited (5.5 ) 5.24 Non-vested at June 30, 2015 1.9 $ 5.24 Restricted Share Units During fiscal 2015 , 1.7 million RSUs were granted under the Omnibus LTIP and 0.1 million RSUs were granted under the 2007 Stock Plan for Directors. During fiscal 2014, 2.1 million RSUs were granted under the Omnibus LTIP and 0.1 million RSUs were granted under the 2007 Stock Plan for Directors. The Company’s outstanding RSUs as of June 30, 2015 and activity during the fiscal year then ended are presented below: Shares (in millions) Aggregate Intrinsic Value Weighted Average Remaining Contractual Term Outstanding at July 1, 2014 4.4 Granted 1.8 Settled (0.3 ) Cancelled (1.6 ) Outstanding at June 30, 2015 4.3 Vested and expected to vest at June 30, 2015 3.4 $ 107.4 3.14 The share-based compensation expense recorded in connection with the RSUs was $9.7 , $10.8 and $9.1 during fiscal 2015 , 2014 and 2013 , respectively. Prior to June 12, 2013 , the Pre-IPO share-based compensation plans governing the released awards contained a clause permitting the participants to sell their unrestricted shares of Common Stock back to the Company without restrictions. During the period of time that the Company retained the risks and rewards of ownership, the Company recorded the value of Common Stock in excess of par value to Accrued expenses and other current liabilities and the change in fair value of Common Stock issued to holders of RSUs of $0.7 to share-based compensation expense for fiscal 2013. There was no fair value adjustment recorded for fiscal 2015 or 2014. The Company’s outstanding and non-vested RSUs as of June 30, 2015 and activity during the fiscal year then ended are presented below: Shares (in millions) Weighted Average Grant Date Fair Value Outstanding and nonvested at July 1, 2014 4.0 $ 15.77 Granted 1.8 16.95 Vested (0.3 ) 14.32 Cancelled (1.6 ) 15.82 Outstanding and nonvested at June 30, 2015 3.9 $ 16.23 The total intrinsic value of RSUs vested and settled during fiscal 2015 , 2014 , and 2013 is $6.2 , $2.8 and $4.2 , respectively. Executive Ownership Programs The Company encourages stock ownership through various programs. These programs govern shares purchased by employees (“Purchased Shares”). During fiscal 2012 , the Company adopted the Omnibus LTIP, which governs Platinum, and amended and restated the previous ownership program. As a result, all outstanding shares purchased by employees were considered vested as of the adoption date or the amendment date, as applicable, and no longer incur expense. Employees purchased 0.1 million and 0.1 million shares in fiscal 2015 and 2014 , respectively, and received matching RSUs in accordance with the terms of Platinum under the Omnibus LTIP. There were 1.4 million and 1.3 million Purchased Shares outstanding as of June 30, 2015 and 2014 , respectively. There was $(0.5) share-based compensation (income) expense recorded in connection with Purchased Shares during fiscal 2015 . During the first quarter of fiscal 2015, Mr. Scannavini forfeited less than 0.1 million restricted shares. Share-based compensation expense recorded for fiscal 2014 and fiscal 2013 was nil and $10.7 , respectively. Prior to June 12, 2013 , the Pre-IPO share-based compensation plans governing the restricted and released shares contained a clause permitting the participants to sell their Purchased Shares of Common Stock back to the Company without restrictions once the restriction period on the Purchased Shares expired. During the period of time that the Company retained the risks and rewards of ownership, the Company recorded the value of Common Stock in excess of par value to Accrued expenses and other current liabilities and the change in fair value of Common Stock issued to holders of Purchased Shares of $5.8 to share-based compensation expense for fiscal 2013. There was no fair value adjustment recorded for fiscal 2015 or 2014 . Special Incentive Award In February 2012 and September 2010, the Company granted a special incentive award to a select group of key executives that, upon vesting, provides 3.9 million shares of Common Stock, of which 1.5 million shares of Common Stock were forfeited by one holder during fiscal 2013. Prior to June 13, 2013, the date the Class A Common Stock began trading on the NYSE, vesting of these awards was dependent upon the occurrence of (i) an initial public offering by September 14, 2015 or (ii) if an initial public offering had not occurred by September 14, 2015, upon achievement of a target fair value of the Company’s share price and the completion of the service period upon the vesting date of September 14, 2015. During December 2012, the target fair value of the Company’s share price was achieved and as a result, share-based compensation expense was recorded based on the fair value of the Company’s Common Shares on each reporting period date from December 2012 through June 13, 2013. On June 13, 2013, the date Class A Common Stock began trading on the New York Stock Exchange, the special incentive awards were re-measured at the IPO price and 50% of the outstanding awards vested immediately. The remaining awards vested on June 13, 2014, the one-year anniversary date of the IPO. The 1.2 million shares that vested during fiscal 2013 and 2014 had a weighted average grant date fair value of $6.82 . There were no special incentive awards outstanding as of June 30, 2015 or 2014. Share-based compensation expense recorded in connection with special incentive awards is $0.0 , $7.4 and $18.9 for fiscal 2015 , 2014 and 2013 , respectively. The total intrinsic value of special incentive awards vested and settled during fiscal 2015 , 2014 , and 2013 is $0.0 , $20.4 , and $20.9 , respectively. As of June 30, 2015, there were no special incentive awards outstanding as all special incentive awards vested as of June 13, 2014. There was no vesting or forfeiture activity during fiscal 2015. Special Share Purchase Transaction As noted at Special Share Purchase Transaction described in Note 22, “Equity”, JABC sold 1.7 million shares of its Class B shares to certain Coty executives and individuals intended to become Coty executives. One of these individuals purchased the 1.4 million shares on March 13, 2015 at a purchase price representing a discount of $1.9 below the market price on the purchase date, which was determined to be share-based compensation expense to the Company. Subsequently, the individual that had purchased the 1.4 million shares on March 13, 2015 indicated a desire to sell the Class A Common Stock back to JABC. JABC entered into an agreement and repurchased these shares on July 8, 2015 at the market price on that date. At June 30, 2015, the Company determined that the individual was not expected to hold the shares for a period of at least six months and therefore, the shares should be deemed compensatory and accounted for under liability plan accounting. The Company recorded a total of $15.8 share-based compensation expense to Selling, general and administrative expense which includes: (a) $1.9 for the discount recorded to APIC and (b) $13.9 for the difference between the market price of the shares as of June 30, 2015 and the original sale date of March 13, 2015 recorded to Accrued expenses and other current liabilities. Phantom Units On December 1, 2014, the Board granted Lambertus J.H. Becht (“Mr. Becht”), the Company’s Chairman of the Board and interim Chief Executive Officer, an award of 49,432 phantom units, in consideration of Mr. Becht’s increased responsibilities as interim Chief Executive Officer of the Company. At the time of grant, the phantom units had a value of $1.0 based on the closing price of the Company’s Class A Common Stock on December 1, 2014, and each phantom unit has an economic value equivalent to one share of the Company’s Class A Common Stock. Mr. Becht elected to receive payment of the phantom units in the form of shares of Class A Common Stock. As a result the phantom units will be settled in shares of Class A Common Stock on the fifth anniversary of the grant date or, in the event of a change of control or Mr. Becht’s death or disability, immediately. The Company recognized $1.0 of share-based compensation expense during fiscal year 2015 as there are no service or performance conditions with respect to the phantom units. |
NET INCOME (LOSS) ATTRIBUTABLE
NET INCOME (LOSS) ATTRIBUTABLE TO COTY INC. PER COMMON SHARE | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Attributable To Coty Inc. Per Common Share | NET INCOME (LOSS) ATTRIBUTABLE TO COTY INC. PER COMMON SHARE Net income (loss) attributable to Coty Inc. per common share (“basic EPS”) is computed by dividing net income (loss) attributable to Coty Inc. by the weighted-average number of common shares outstanding during the period. Net income (loss) attributable to Coty Inc. per common share assuming dilution (“diluted EPS”) is computed by using the basic EPS weighted-average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of nonqualified stock options and RSUs as of June 30, 2015 and 2014. Potentially dilutive securities also included restricted shares and special incentive awards as of June 30, 2013. The dilutive effect of these outstanding instruments is reflected in diluted EPS by application of the treasury stock method. Due to the net loss incurred in fiscal 2014, no stock options, restricted shares, restricted stock units or special incentive awards were included in the computation of diluted loss per share. Net income (loss) attributable to Coty Inc. is adjusted through the application of the two-class method of income per share to reflect a portion of the periodic adjustment of the redemption value in excess of fair value of the redeemable noncontrolling interests. There is no excess of redemption value over fair value of the redeemable noncontrolling interests in fiscal 2015, 2014 and 2013. In addition, there are no participating securities requiring the application of the two-class method of income per share. Reconciliation between the numerators and denominators of the basic and diluted EPS computations is presented below: Year Ended June 30, 2015 2014 2013 Net income (loss) attributable to Coty Inc. $ 232.5 $ (97.4 ) $ 168.0 Weighted-average common shares outstanding—Basic 353.3 381.7 381.7 Effect of dilutive stock options and Series A Preferred Stock (a) 7.6 — 12.3 Effect of restricted stock and RSUs (b) 2.0 — 2.4 Weighted-average common shares outstanding—Diluted $ 362.9 $ 381.7 $ 396.4 Net income (loss) attributable to Coty Inc. per common share: Basic $ 0.66 $ (0.26 ) $ 0.44 Diluted 0.64 (0.26 ) 0.42 (a) As of June 30, 2015 and 2013, outstanding stock options and Series A Preferred Stock to purchase 0.7 million and 1.2 million shares of Common Stock, respectively, are excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. Due to the net loss incurred in fiscal 2014, stock options are excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. (b) As of June 30, 2015 and 2013, there are 0.4 million and zero anti-dilutive RSUs excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. Due to the net loss incurred in fiscal 2014, RSUs are excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Matters The Company is involved, from time to time, in litigation, other regulatory actions and other legal proceedings incidental to the business. Other than as described below, management believes that the outcome of current litigation will not have a material adverse impact on the Company's results of operations, financial condition, or cash flows. However, management’s assessment of the Company’s current litigation, regulatory actions and other legal proceedings could change in light of the discovery of facts with respect to litigation, regulatory actions or other proceedings pending against the Company not presently known to the Company or determinations by judges, juries or other finders of fact which are not in accord with management’s evaluation of the possible liability or outcome of such litigation, regulatory actions and legal proceedings. In fiscal 2014, two putative class action complaints were filed in the United States District Court for the Southern District of New York against the Company, its directors and certain of its executive officers, and the underwriters of the IPO, alleging violations of the federal securities laws in connection with the Company's initial public offering (“IPO”). Those lawsuits were consolidated under the caption In re Coty Inc. Securities Litigation, and following the court’s appointment of lead plaintiffs and lead counsel, a consolidated and amended complaint (the “Securities Complaint”) was filed on July 7, 2014. The Securities Complaint asserts claims against the Company, its directors, and certain of its executive officers, under Sections 11, 12 and 15 of the Securities Act of 1933, as amended (the “Securities Act”), and seeks, on behalf of persons who purchased the Company’s Class A Common Stock in the IPO, damages of an unspecified amount and equitable or injunctive relief. On September 9, 2014, Plaintiffs voluntarily dismissed their claims against the underwriter defendants without prejudice. The Securities Complaint was further amended on October 18, 2014. The Company has filed a motion to dismiss the Securities Complaint, which has been fully briefed since December 2014. The motion to dismiss is currently pending. The Company believes the Securities Complaint is without merit and intends to vigorously defend it. On December 21, 2012, the Company voluntarily disclosed to the U.S. Commerce Department’s Bureau of Industry and Security’s Office of Export Enforcement (“OEE”) results of the Company’s internal due diligence review conducted with the advice of outside counsel regarding certain export transactions from January 2008 through March 2012. In particular, the Company disclosed information relating to overall compliance with U.S. Export Administration Regulations (“EAR”). In its submission, the Company has provided OEE with an explanation of the activities that led to the sales of its products in Syria. In addition, the Company disclosed that prior to January 2010 some of its subsidiary’s sales to Syria were made to a party that was designated as a target of U.S. economic sanctions by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”). The Company did not believe these sales constituted a violation of U.S. trade sanctions administered by OFAC, however, the Company also notified the Office of Foreign Assets Control of its voluntary disclosure to the OEE. On May 12, 2015, OFAC decided to resolve the matter of these sales by issuing a cautionary letter and declining to impose a financial penalty. The cautionary letter does not preclude OFAC from taking further action if the Company violates OFAC administered sanctions in the future. On June 28, 2013 , the Company submitted the final voluntary disclosure to the OEE which disclosed the results of the Company's internal due diligence review conducted with the advice of outside counsel regarding certain export transactions from January 2008 through March 2012. In particular, the Company disclosed information relating to overall compliance with U.S. export control laws by its majority-owned subsidiary in the UAE, and the nature and quantity of its re-exports to Syria that the Company believed may constitute violations of the EAR. The disclosure addressed the above described findings and the remedial actions the Company has taken to date. On January 6, 2014, the Company received a warning letter from the OEE stating that the bureau has closed its investigation of the Company's final voluntary disclosure and determined not to pursue administrative or criminal prosecution even though the transactions violated EAR. The OEE imposed no financial penalties. On January 14, 2013 , the Company voluntarily disclosed to the U.S. Department of Commerce’s Bureau of Industry and Security’s Office of Antiboycott Compliance (“OAC”) additional results of the Company’s internal due diligence review. In particular, the Company disclosed information relating to overall compliance with U.S. antiboycott laws by a majority-owned subsidiary in the UAE, including with respect to the former inclusion of a legend on invoices, confirming that the corresponding goods did not contain materials of Israeli origin. A number of the invoices involved U.S. origin goods. The Company believes inclusions of this legend may constitute violations of U.S. antiboycott laws. On June 28, 2013 , the Company voluntarily disclosed to the OAC the final results of the Company’s internal due diligence review. The disclosure addressed the above described findings and the remedial actions the Company has taken to date. The Company cannot predict when the OAC will complete its review. Penalties for EAR violations can be significant and civil penalties can be imposed on a strict liability basis, without any showing of knowledge or willfulness. OAC has wide discretion to settle claims for violations. The Company believes that a penalty or penalties could be imposed from its voluntary disclosures, and that such penalty or penalties would result in a material loss is reasonably possible. Irrespective of any penalty, the Company could suffer other adverse effects on its business as a result of any violations or the potential violations, including legal costs and harm to its reputation, and the Company also will incur costs associated with its efforts to improve its compliance procedures. The Company has not established a reserve for potential penalties and does not know whether OAC will assess a penalty or what the amount of any penalty would be, if a penalty or penalties were assessed. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On July 8, 2015 Coty announced the signing of a definitive agreement to merge the P&G Beauty Business into Coty through a tax-free Reverse Morris Trust transaction. The transaction is based on a proposal by Coty valuing the P&G Beauty Business at approximately $12,500.0 at the time the proposal was made. Following the transaction, P&G shareholders are expected to own 52% of all outstanding shares on a fully diluted basis (inclusive of all outstanding equity grants), while Coty’s existing shareholders would own 48% percent of the combined company. It is expected to close in the second half of calendar year 2016, subject to regulatory clearances, works council consultations, and other customary conditions. On July 8, 2015, JABC repurchased 1.4 million shares of Class A Common Stock, for an aggregate amount of approximately $45.7 from an affiliate of an individual originally intended to become an executive of the Company. The Company recognized compensation expense of $13.9 in fiscal 2015 relating to this transaction as disclosed in Note 23. The repurchase will be reported in the first quarter of fiscal 2016 as the settlement of the liability with a deemed capital contribution from JABC, which will be recorded in APIC. On July 21, 2015, the Company’s Board of Directors granted Mr. Becht an award of 300,000 phantom units in consideration of the extension of Mr. Becht’s responsibilities as interim Chief Executive Officer of the Company into fiscal 2016. The award to Mr. Becht was made outside of the Company’s Equity and Long-Term Incentive Plan. At the time of grant, the phantom units had a value of $8.1 based on the closing price of the Company’s Class A Common Stock on July 21, 2015. On August 13, 2015, the Company announced that its Board of Directors has authorized the Company to repurchase up to $700.0 million of its Class A common stock, which amount is inclusive of any amounts existing under the Company’s previously announced share repurchase program (the “Repurchase Program”). Repurchases will be made from time to time at the Company’s discretion, based on ongoing assessments of the capital needs of the business, the market price of its common stock, and general market conditions. No time has been set for the completion of the Repurchase Program, and the program may be suspended or discontinued at any time. The Repurchase Program authorizes the company to purchase its common stock from time to time through open market purchases, negotiated transactions or other means, including 10b5-1 trading plans in accordance with applicable securities laws and other restrictions. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jun. 30, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Years Ended June 30, 2015 , 2014 , and 2013 ($ in millions, except per share data) Valuation and Qualifying Accounts Description Three Years Ended June 30, Balance at Charged to Deductions Balance at Allowance for doubtful accounts: 2015 $ 16.7 $ 4.5 $ (1.6 ) (a) $ 19.6 2014 14.5 3.2 (1.0 ) (a) 16.7 2013 19.6 3.2 (8.3 ) (a) 14.5 Allowance for customer returns: 2015 $ 87.3 $ 153.9 $ (181.3 ) $ 59.9 2014 76.0 173.8 (162.5 ) 87.3 2013 74.9 158.6 (157.5 ) 76.0 Deferred tax valuation allowances: 2015 $ 98.6 $ 7.9 (b) $ (24.6 ) $ 81.9 2014 61.5 42.2 (b) (5.1 ) 98.6 2013 47.1 20.6 (b) (6.2 ) 61.5 (a) Includes amounts written-off, net of recoveries and cash discounts. (b) Includes foreign currency translation adjustments unless otherwise noted. |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying financial statements of the Company are presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. The Company also consolidates majority-owned entities in the United Arab Emirates, Kingdom of Saudi Arabia, Malaysia, Indonesia, Philippines, Singapore, Hong Kong, China, Japan, South Korea, Thailand, Taiwan and Brazil where the Company has the ability to exercise controlling influence. Ownership interests of noncontrolling parties are presented as noncontrolling interests or redeemable noncontrolling interests, as applicable. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, the market value of inventory, the fair value of acquired assets and liabilities associated with acquisitions, the fair value of share-based compensation, pension and other post-employment benefit costs, the fair value of the Company's reporting units and the assessment of goodwill, other intangible assets and long-lived assets for impairment, income taxes, derivatives and redeemable noncontrolling interests when calculating the impact on Earnings Per Share (“EPS”). Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates and assumptions resulting from continuing changes in the economic environment will be reflected in the Consolidated Financial Statements in future periods. |
Cash Equivalents | Cash Equivalents Cash equivalents include all highly liquid investments with original maturities of three months or less at the time of purchase. |
Trade Receivables | Trade Receivables Trade receivables are stated net of the allowance for doubtful accounts and cash discounts, which is based on the evaluation of the accounts receivable aging, specific exposures, and historical trends. The Company reviews its allowances by assessing factors such as an individual trade receivable aging and liquidity. Trade receivables are written off on a case-by-case basis, net of any amounts that may be collected. |
Inventories | Inventories Inventories include items which are considered salable or usable in future periods, and are stated at the lower of cost or market value, with cost being based on standard cost which approximates actual cost on a first-in, first-out basis. Costs include direct materials, direct labor and overhead (e.g., indirect labor, rent and utilities, depreciation, purchasing, receiving, inspection and quality control) and in-bound freight costs. The Company classifies inventories into various categories based upon their stage in the product life cycle, future marketing sales plans and the disposition process. The Company also records an inventory obsolescence reserve, which represents the excess of the cost of the inventory over its estimated realizable value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, and requirements to support forecasted sales. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. |
Property and Equipment | Property and Equipment and Other Long-lived Assets Property and equipment is stated at cost less accumulated depreciation or amortization. The cost of renewals and betterments is capitalized and depreciated. Expenditures for maintenance and repairs are expensed as incurred. Property and equipment that is disposed of through sale, trade-in, donation, or scrapping is written off, and any gain or loss on the transaction, net of costs to dispose, is recorded in Gain (loss) on sale of assets. Depreciation and amortization are computed principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives Buildings 20-40 years Marketing furniture and fixtures 3-5 years Machinery and equipment 2-15 years Computer equipment and software 2-5 years Property and equipment under capital leases and leasehold improvements Lesser of lease term or economic life |
Other Long-lived Assets | Intangible assets with finite lives are amortized principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives License agreements Lesser of agreement term or economic life Customer relationships 5-20 years Trademarks 5-20 years Product formulations 3-7 years Long-lived assets, including tangible and intangible assets with finite lives, are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. When such events or changes in circumstances occur, a recoverability test is performed comparing projected undiscounted cash flows from the use and eventual disposition of an asset or asset group to its carrying value. If the projected undiscounted cash flows are less than the carrying value, an impairment charge would be recorded for the excess of the carrying value over the fair value. The Company estimates fair value based on the best information available, including discounted cash flows and/or the use of third-party valuations. |
Goodwill and Other Indefinite-lived Intangible Assets | Goodwill and Other Indefinite-lived Intangible Assets Goodwill is calculated as the excess of the cost of purchased businesses over the fair value of their underlying net assets. Indefinite-lived other intangible assets principally consist of trademarks. Goodwill is allocated and evaluated at the reporting units level which are the Company’s operating segments. The Company identifies its operating segments, which are also its reportable segments, by assessing whether the components of the Company’s reportable segments constitute businesses for which discrete financial information is available and management of each operating segment regularly reviews the operating results of those components. The Company has identified three reporting units. Fragrance, Skin & Body Care, and Color Cosmetics are considered operating segments and each a reporting unit. The Company allocates goodwill to one or more reporting units that are expected to benefit from synergies of the business combination. Goodwill and other intangible assets with indefinite lives are not amortized, but are evaluated for impairment annually as of May 1 or whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Impairment testing for goodwill is performed in two steps: (i) the determination of possible impairment, based upon the fair value of a reporting unit as compared to its carrying value; and (ii) if there is a possible impairment indicated, this step measures the amount of impairment loss, if any, by comparing the implied fair value of goodwill with the carrying amount of that goodwill. The fair values of indefinite-lived other intangible assets are estimated and compared to their respective carrying values. The trademarks’ fair values are based upon the income approach, utilizing the relief from royalty or excess earnings methodology. An impairment loss is recognized when the estimated fair value of the intangible asset is less than its carrying value. |
Deferred Financing Fees | Deferred Financing Fees The Company capitalizes costs related to the issuance of debt instruments, as applicable. Such costs are amortized over the contractual term of the related debt instrument in interest expense, net using the straight line method, which approximates the effective interest method, in the Consolidated Statements of Operations. |
Noncontrolling Interests and Redeemable Noncontrolling Interests | Noncontrolling Interests and Redeemable Noncontrolling Interests Interests held by partners in consolidated majority-owned subsidiaries are presented as noncontrolling interests, which represents the noncontrolling stockholders’ interests in the underlying net assets of the Company’s consolidated majority-owned subsidiaries. Noncontrolling interests that are not redeemable are reported in the equity section of the Consolidated Balance Sheets. Noncontrolling interests, where the Company may be required to repurchase the noncontrolling interest under a put option or other contractual redemption requirement are reported in the Consolidated Balance Sheets between liabilities and equity, as redeemable noncontrolling interests. The Company adjusts the redeemable noncontrolling interests to the redemption values on each balance sheet date with changes recognized as an adjustment to retained earnings, or in the absence of retained earnings, as an adjustment to additional paid-in capital. |
Revenue Recognition | Revenue Recognition Revenue is recognized when realized or realizable and earned. The Company’s policy is to recognize revenue when risk of loss and title to the product transfers to the customer, which usually occurs upon delivery. Net revenues comprise gross revenues less customer discounts and allowances, actual and expected returns (estimated based on returns history and position in product life cycle) and various trade spending activities. Trade spending activities primarily relate to advertising, product promotions and demonstrations, some of which involve cooperative relationships with customers. |
Cost of Sales | Cost of Sales Cost of sales includes all of the costs to manufacture the Company’s products. For products manufactured in the Company’s own facilities, such costs include raw materials and supplies, direct labor and factory overhead. For products manufactured for the Company by third-party contractors, such costs represent the amounts invoiced by the contractors. Cost of sales also includes royalty expense associated with license agreements as discussed in Note 11. Additionally, shipping costs and depreciation and amortization expenses related to manufacturing equipment and facilities are included in Cost of sales in the Consolidated Statements of Operations. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses include advertising and promotional costs and research and development costs. Also included in Selling, general and administrative expenses are share-based compensation, certain warehousing fees, non-manufacturing overhead, personnel and related expenses, rent on operating leases, and professional fees. |
Share-Based Compensation | Share-Based Compensation Common Stock Common shares are available to be awarded for the exercise of vested stock options, the settlement of restricted stock units (“RSUs”), and the conversion of Series A Preferred Stock. As of June 12, 2013, the effective date of the amendment and restatement of the share-based compensation plans, the Company’s share-based compensation plans for common shares are accounted for as equity plans, as the plans no longer allow for cash settlement or contain put features to sell shares back to the Company. Share-based compensation expense is measured and fixed at the grant date, based on the estimated fair value of the award and is recognized on a straight-line basis, net of estimated forfeitures, over the employee’s requisite service period. The fair value of stock options is determined using the Black-Scholes valuation model using the assumptions discussed in Note 23. The fair value of RSUs is determined on the date of grant based on the Company’s stock price. Prior to June 12, 2013, the Company’s Pre-IPO share-based compensation plans for common stock were accounted for as liability plans as they allowed for cash settlement or contained put features to sell shares back to the Company for cash. Accordingly, share-based compensation expense was measured based on the fair value of the award on each reporting date and was recognized as an expense to the extent vested until the award was settled. If the award was settled for shares, the shares were included in the number of shares of common stock outstanding and the fair value of the shares was re-measured at each reporting period date through Selling, general and administrative expense as share-based compensation expense if the shares were classified as Accrued expenses and other current liabilities. Once the holders had retained the risks and rewards of share ownership by holding the shares for a reasonable period of time after they were vested and issued, generally a period of six months from vesting and issuance, the liability was reclassified, in the Consolidated Balance Sheets, between liabilities and equity as Redeemable common stock at fair value. Subsequent changes in fair value of the shares classified as Redeemable common stock were recognized in Retained earnings or, in the absence of Retained earnings, in Additional paid-in capital. Preferred Stock The Company has issued Series A Preferred Stock that can be converted into Class A Common Stock or settled in cash. Series A Preferred Stock is accounted for using liability plan accounting to the extent the award is expected to be settled in cash. Accordingly, share-based compensation expense for the liability plans is measured based on the fair value of the award on each reporting date and recognized as an expense to the extent earned. Share-based compensation expense for the portion of the grants that the Company is not required to settle in cash is measured based on the estimated fair value of the award at the time it is known that they are going to be settled in shares and is recognized on a straight-line basis, net of estimated forfeitures, over the employee’s requisite service period. All Series A Preferred Stock amounts as of June 30, 2015 are presented as liabilities. Only the number of outstanding shares is presented under Preferred Stock in Equity. The fair value of Series A Preferred Stock is determined using the Black-Scholes valuation model using the weighted-average assumptions discussed in Note 23. |
Treasury Stock | Treasury Stock The Company accounts for treasury stock under the cost method. When shares are reissued or retired from treasury stock they are accounted for at an average price. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of additional paid-in-capital in the Company’s Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a reduction of additional paid-in-capital to the extent that there are treasury stock gains to offset the losses. If there are no treasury stock gains in additional paid-in-capital, the losses upon re-issuance of treasury stock are recorded as a reduction of retained earnings in the Company’s Consolidated Balance Sheets. |
Income Taxes | Income Taxes The Company is subject to income taxes in the U.S. and various foreign jurisdictions. The Company accounts for income taxes under the asset and liability method. Therefore, income tax expense is based on reported income before income taxes, and deferred income taxes reflect the effect of temporary differences between the carrying amounts of assets and liabilities that are recognized for financial reporting purposes and the carrying amounts that are recognized for income tax purposes. Classification of deferred tax assets and liabilities corresponds with the classification of the underlying assets and liabilities, giving rise to the temporary differences or the period of expected reversal, as applicable. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized based on currently available evidence. The Company is subject to tax audits in various jurisdictions. The Company regularly assesses the likely outcomes of such audits in order to determine the appropriateness of liabilities for unrecognized tax benefits (“UTBs”). The Company classifies interest and penalties related to UTBs as a component of the provision for income taxes. For UTBs, the Company first determines whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority. As the determination of liabilities related to UTBs and associated interest and penalties requires significant estimates to be made by the Company, there can be no assurance that the Company will accurately predict the outcomes of these audits, and thus the eventual outcomes could have a material impact on the Company’s operating results or financial condition and cash flows. It is the Company’s intention to permanently reinvest undistributed earnings and profits from the Company’s foreign operations that have been generated through June 30, 2015 , and future plans do not demonstrate a need to repatriate the foreign amounts to fund U.S. operations. Accordingly, no provision has been made for U.S. income taxes on undistributed earnings of foreign subsidiaries as of June 30, 2015 . It is not practicable for the Company to determine the amount of additional income and withholding taxes that may be payable in the event the remaining undistributed earnings are repatriated. |
Restructuring Costs | Restructuring Costs Charges incurred in connection with plans to restructure and integrate acquired businesses or in connection with cost-reduction initiatives that are initiated from time to time are included in Restructuring costs in the Consolidated Statements of Operations if such costs are directly associated with an exit or disposal activity, a reorganization, or with integrating an acquired business. |
Business Combinations | Business Combinations The Company accounts for business combinations using the acquisition method of accounting. The acquisition method of accounting requires that purchase price, including the fair value of contingent consideration, of the acquisition be allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. Payments made for contingent consideration recorded as part of an acquisition’s purchase price are reflected as financing activities in the Company’s Consolidated Statements of Cash Flows, if paid more than three months after the acquisition date. If paid within three months of the acquisition date, these payments are reflected as investing activities in the Company’s Consolidated Statements of Cash Flows. The Company remeasures the fair value of contingent consideration at each reporting period using a probability-adjusted discounted cash flow method based on significant inputs not observable in the market and any change in the fair value from either the passage of time or events occurring after the acquisition date, is recorded in earnings. Contingent consideration payments that exceed the acquisition date fair value of the contingent consideration are reflected as an operating activity in the Consolidated Statements of Cash Flows. For acquisitions completed prior to January 1, 2009, contingent consideration is recognized when the contingency is resolved pursuant to the authoritative guidance on business combinations in effect at the date of the closing of the acquisition and reflected as an investing activity in the Consolidated Statements of Cash Flows. Acquisition-related costs, such as banking, legal, accounting and other costs incurred in connection with an acquisition are expensed as incurred. The Company includes the results of all acquisitions in its Consolidated Financial Statements from the date of acquisition. |
Fair Value Measurements | Fair Value Measurements The following fair value hierarchy is used in selecting inputs for those assets and liabilities measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The Company evaluates these inputs and recognizes transfers between levels, if any, at the end of each reporting period. The hierarchy consists of three levels: Level 1 - Valuation based on quoted market prices in active markets for identical assets or liabilities; Level 2 - Valuation based on inputs other than Level 1 inputs that are observable for the assets or liabilities either directly or indirectly; Level 3 - Valuation based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and supported by little or no observable market activity. The Company has not elected the fair value measurement option for any financial instruments or other assets not required to be measured at fair value on a recurring basis. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company utilizes derivative instruments to manage certain foreign currency and interest rate exposures. The Company may also utilize derivative instruments to hedge anticipated transactions where there is a high probability that anticipated exposures will materialize. Derivative financial instruments are recorded as either assets or liabilities on the balance sheet and are measured at fair value. For derivatives not designated as hedging instruments, changes in fair value are recorded in the line item in the Consolidated Statements of Operations to which the derivative relates. For derivatives designated as hedging instruments, changes in the fair value are recorded in Accumulated other comprehensive income (loss) (“AOCI/(L)”). Gains and losses deferred in AOCI/(L) are then recognized in net income (loss) in a manner that matches the timing of the actual income or expense related to the hedging instruments with the hedged transaction or if it is determined that the derivatives are not highly effective or have ceased to be highly effective. The gains and losses related to designated hedging instruments are also recorded in the line item in the Consolidated Statements of Operations to which the derivative relates. |
Foreign Currency | Foreign Currency Exchange gains or losses incurred on transactions conducted by one of the Company’s operations in a currency other than the operation’s functional currency are reflected in Cost of sales or operating expenses. Net gains (losses) of $7.9 , $(18.7) and $0.1 in fiscal 2015 , 2014 and 2013 , respectively resulting from non-financing foreign exchange currency transactions are included in the Consolidated Statements of Operations. Assets and liabilities of foreign operations are translated into U.S. dollars at the rates of exchange in effect at the end of the reporting period. Income and expense items are translated at the average exchange rates prevailing during each reporting period presented. Translation gains or losses are reported as cumulative adjustments in AOCI/(L). |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2013, the FASB issued authoritative guidance to resolve the diversity in practice concerning the release of the cumulative translation adjustment (“CTA”) into net income (i) when a parent sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity, and (ii) in connection with a step acquisition of a foreign entity. This amended guidance requires that CTA be released in net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided, and that a pro rata portion of the CTA be released into net income upon a partial sale of an equity method investment in a foreign entity only. In addition, the amended guidance clarifies the definition of a sale of an investment in a foreign entity to include both events that result in the loss of a controlling financial interest in a foreign entity and events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately prior to the date of acquisition. The CTA should be released into net income upon the occurrence of such events. This guidance became effective prospectively for the Company’s fiscal 2015 first quarter. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In July 2015, the FASB issued authoritative guidance related to Defined Benefits Pension Plans, Defined Contribution Pension Plans, and Health and Welfare Benefit Plans: I. Fully Benefit-Responsive Investment Contracts; II. Plan Investment Disclosures; and III. Measurement Date Practical Expedient. This three-part guidance simplifies current benefit plan accounting and requires (i) fully benefit responsive investment contracts to be measured, presented, and disclosed only at contract value and accordingly removes the requirement to reconcile their contract value to fair value; (ii) benefit plans to disaggregate their investments measured using fair value by general type, either on the face of the financial statements or in the notes to the financial statements; (iii) the net appreciation or depreciation in investments for the period to be presented in the aggregate rather than by general type, and removes certain disclosure requirements relevant to individual investments that represent five percent or more of net assets available for benefits. Further, the amendments eliminate the requirement to disclose the investment strategy for certain investments that are measured using Net Asset Value (“NAV”) per share using the practical expedient. Part III of the amendment provides a practical expedient to permit employee benefit plans to measure investments and investment-related accounts as of the month-end that is closest to the plan’s fiscal year-end, when the fiscal period does not coincide with a month-end, while requiring certain additional disclosures. The guidance in Parts I and II of this standard are effective retrospectively for fiscal year 2017 and early adoption is permitted. The guidance in Part III of this standard are effective prospectively for fiscal 2017 and early adoption is permitted. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements. In July 2015, the FASB issued authoritative guidance for simplifying the measurement of inventory. The amendment requires an entity to measure most inventory at the lower of cost and net realizable value, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. This amendment will not apply to inventories that are measured using either the last-in, first-out (LIFO) method or the retail inventory method. This amendment will be effective for the Company in fiscal 2018 and early adoption is permitted. The Company is evaluating the impact this amendment will have on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued authoritative guidance to clarify the accounting treatment for fees paid by a customer in cloud computing arrangements. Under the revised guidance, if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The revised guidance will not change a customer’s accounting for service contracts. The guidance becomes effective for the Company’s fiscal 2017 first quarter, with early adoption permitted. Upon adoption, a reporting entity can elect to apply the new guidance prospectively after the effective date, or retrospectively. The Company is currently evaluating the impact of adoption of this standard on the Company’s Consolidated Financial Statements. In April 2015, the FASB issued authoritative guidance on the treatment of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This amendment will be effective for the Company’s interim and annual consolidated financial statements for fiscal 2017 using a retrospective approach. The Company is evaluating the impact this amendment will have on the Company’s Consolidated Financial Statements. In February 2015, the FASB issued authoritative guidance on a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to reevaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. This amendment will be effective for the Company’s interim and annual consolidated financial statements for fiscal 2017 using either a modified retrospective, or a retrospective approach. The Company is evaluating the impact this amended guidance will have on the Company’s Consolidated Financial Statements. In June 2014, the FASB issued authoritative guidance that implements a common revenue model that will enhance comparability across industries and require enhanced disclosures. The new standard introduces a five step principles based process to determine the timing and amount of revenue ultimately expected to be received by the customer. This amendment will be effective for the Company’s interim and annual consolidated financial statements for fiscal 2019 with either retrospective or modified retrospective treatment applied, and the Company is evaluating the impact this will have on the Company’s Consolidated Financial Statements upon implementation. In May 2014, the FASB issued authoritative guidance on the treatment of a stock-based compensation award issued with a performance target that could be achieved subsequent to the requisite service period. The guidance will require the performance target to be treated as a performance condition that effects vesting or as a non-vesting condition that affects the grant-date fair value of the award. This amendment will be effective for the Company’s interim and annual consolidated financial statements for fiscal 2017 with either prospective or retrospective treatment applied, and is not expected to have a material impact on the Company’s Consolidated Financial Statements. In April 2014, the FASB issued authoritative guidance that modified the criteria utilized to determine discontinued operations. In accordance with the new guidance, only disposals of a component that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results are considered discontinued operations. The modified guidance also requires expanded disclosures about discontinued operations and disposals of a significant part of an entity that does not qualify for discontinued operations reporting. This amendment will be effective for the Company’s interim and annual consolidated financial statements for fiscal 2016 with early adoption permitted, but only for disposals (or classifications as held for sale) that have not been reported in previously-issued financial statements. The adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Property and Equipment, Useful Lives | Depreciation and amortization are computed principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives Buildings 20-40 years Marketing furniture and fixtures 3-5 years Machinery and equipment 2-15 years Computer equipment and software 2-5 years Property and equipment under capital leases and leasehold improvements Lesser of lease term or economic life Property and equipment, net as of June 30, 2015 and 2014 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 232.4 $ 230.7 Machinery and equipment 471.3 492.8 Marketing furniture and fixtures 267.7 278.1 Computer equipment and software 325.5 339.8 Construction in progress 48.7 45.4 1,345.6 1,386.8 Accumulated depreciation and amortization (845.4 ) (846.5 ) Property and equipment, net $ 500.2 $ 540.3 |
Finite-Lived Intangible Assets, Useful Lives | Intangible assets with finite lives are amortized principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives License agreements Lesser of agreement term or economic life Customer relationships 5-20 years Trademarks 5-20 years Product formulations 3-7 years Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2014 License agreements $ 835.0 $ (490.8 ) $ — $ 344.2 Customer relationships 510.8 (169.4 ) (33.5 ) 307.9 Trademarks 125.8 (90.1 ) (21.0 ) 14.7 Product formulations 31.8 (29.3 ) — 2.5 Total $ 1,503.4 $ (779.6 ) $ (54.5 ) $ 669.3 June 30, 2015 License agreements $ 800.7 $ (501.1 ) $ — $ 299.6 Customer relationships (c) 559.1 (232.8 ) — 326.3 Trademarks (c) 119.1 (108.2 ) — 10.9 Product formulations 32.7 (29.9 ) — 2.8 Total $ 1,511.6 $ (872.0 ) $ — $ 639.6 (c) The cost, accumulated amortization and accumulated impairment related to the TJoy customer relationship and trademark was eliminated as of June 30, 2015 due to disposition of the business. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of reportable segments | The allocation of goodwill and acquired intangible assets by segment is presented in Note 11. Year Ended June 30, SEGMENT DATA 2015 2014 2013 Net revenues: Fragrances $ 2,178.3 $ 2,324.0 $ 2,312.8 Color Cosmetics 1,445.0 1,366.2 1,468.5 Skin & Body Care 771.9 861.4 867.8 Total $ 4,395.2 $ 4,551.6 $ 4,649.1 Depreciation and amortization (a) : Fragrances $ 90.5 $ 102.8 $ 96.3 Color Cosmetics 99.9 92.6 91.3 Skin & Body Care 39.2 50.8 54.5 Corporate 1.3 4.5 17.5 Total $ 230.9 $ 250.7 $ 259.6 Operating income (loss): Fragrances $ 352.7 $ 341.2 $ 354.9 Color Cosmetics 158.5 154.2 208.8 Skin & Body Care 33.1 (337.3 ) 9.1 Corporate (149.2 ) (132.4 ) (178.4 ) Total $ 395.1 $ 25.7 $ 394.4 Reconciliation: Operating income $ 395.1 $ 25.7 $ 394.4 Interest expense, net 73.0 68.5 76.5 Loss on early extinguishment of debt 88.8 — — Other expense (income), net — 1.3 (0.8 ) Income (loss) before income taxes $ 233.3 $ (44.1 ) $ 318.7 (a) S ubsequent to the issuance of the Company’s fiscal 2014 financial statements, the Company determined that amounts presented under depreciation and amortization by operating segment for 2014 and 2013 did not include allocations for corporate depreciation and amortization. The depreciation and amortization for the operating segments was restated by allocating total Corporate depreciation and amortization of $34.5 and $31.9 in fiscal 2014 and 2013, respectively, from Corporate to the three operating segments, consistent with the allocation method used in fiscal 2015. There was no effect on total depreciation and amortization or segment operating income as previously presented. |
Schedule of revenue from external customers and long-lived assets by geographical areas | Year Ended June 30, 2015 2014 2013 GEOGRAPHIC DATA Net revenues: Americas (a) $ 1,696.0 $ 1,703.8 $ 1,914.8 EMEA (b) 2,166.0 2,302.9 2,188.9 Asia Pacific (c) 533.2 544.9 545.4 Total $ 4,395.2 $ 4,551.6 $ 4,649.1 (a) includes North & South America (b) includes Europe, Middle East and Africa (c) includes Asia and Australia Year Ended June 30, 2015 2014 2013 Net revenues: U.S. $ 1,343.1 $ 1,338.6 $ 1,537.4 Switzerland (a) : Travel Retail and Export 482.9 497.8 500.6 United Kingdom 402.5 415.1 388.1 Netherlands 83.2 93.8 98.1 Domestic 30.2 34.8 36.3 Total Switzerland 998.8 1,041.5 1,023.1 All other 2,053.3 2,171.5 2,088.6 Total $ 4,395.2 $ 4,551.6 $ 4,649.1 Long-lived assets: U.S. $ 2,713.9 $ 2,921.2 $ 2,924.3 All other 1,230.6 799.0 1,076.2 Total $ 3,944.5 $ 3,720.2 $ 4,000.5 (a) The Company’s subsidiaries in Switzerland generate revenues from sales in the United Kingdom (“U.K.”), the Netherlands and domestic sales in Switzerland as well as the Travel Retail and Export business (which sells to a large number of travel outlets, including duty free shops, airlines and other tax-free zones in several countries), as specified separately in the table above. |
Schedule of product categories exceeding 5% of consolidated net revenues | Within the Company’s reportable segments, product categories exceeding 5% of consolidated net revenues are presented below: Year Ended June 30, PRODUCT CATEGORY 2015 2014 2013 Fragrances: Designer 36.9 % 37.4 % 35.8 % Lifestyle 7.4 7.6 6.9 Celebrity 5.3 6.0 7.0 Total 49.6 % 51.0 % 49.7 % Color Cosmetics: Nail Care 14.9 % 14.0 % 16.1 % Other Color Cosmetics 18.0 16.0 15.5 Total 32.9 % 30.0 % 31.6 % Skin & Body Care: Body Care 10.9 % 12.6 % 12.3 % Skin Care 6.6 6.4 6.4 Total 17.5 % 19.0 % 18.7 % Total 100.0 % 100.0 % 100.0 % |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Business Acquisition [Line Items] | |
Schedule of preliminary consideration and purchase price allocation | The Company completed two acquisitions during fiscal 2014: Acquired entity Date acquired Purchase Price Segment Lena White, Ltd. (“Lena White”) January 2, 2014 $ 11.6 Color Cosmetics StarAsia Group Pte Ltd. (“StarAsia”) July 1, 2013 $ 23.5 All segments The company completed one acquisition during fiscal 2015: Acquired entity Date acquired Purchase Price Segment Bourjois cosmetics brand ("Bourjois") April 1, 2015 $ 376.8 Color Cosmetics |
Bourjois | |
Business Acquisition [Line Items] | |
Schedule of preliminary consideration and purchase price allocation | The following table summarizes the preliminary consideration and the allocation of the purchase price to the net assets acquired in the Bourjois acquisition: Consideration: Fair Value of Coty Inc. Class A Stock $ 376.8 Purchase price $ 376.8 Recognized amounts of identifiable assets and liabilities assumed: Estimated Estimated Cash $ 12.3 Inventories 31.5 Property and equipment 9.0 Goodwill 194.8 Trademark 112.0 Indefinite Customer relationships 66.0 13-14 Product formulations 1.1 3 Net working capital 10.7 Net other assets/(liabilities) (3.9) Deferred tax liability, net (56.7) Total identifiable net assets: $ 376.8 |
Business acquisition, pro forma information | The unaudited historical Consolidated Statements of Operations in the table below summarizes the combined results of operations of Bourjois on a pro forma basis, as though the companies had been combined on July 1, 2013, and gives effect to pro forma events that are: (1) directly attributable to the transaction, (2) factually supportable, and (3) expected to have a continuing impact on the combined results. The unaudited pro forma results include adjustments for non-recurring transaction costs (including distributor termination fees, transaction specific costs, and the amortization of the inventory step-up) and incremental intangible asset amortization to be incurred on a recurring basis, based on preliminary values of each identifiable intangible asset. Pro forma adjustments were tax-effected at the Company’s statutory rates. The pro forma Consolidated Statements of Operations is presented for informational purposes only and may not be indicative of the results of operations that would have been achieved if the acquisition had taken place on July 1, 2013 or that may occur in the future, and does not reflect future synergies, integration costs, or other such costs or savings. The pro forma Consolidated Statements of Operations for fiscal 2015 and 2014 are as follows: Year Ended June 30, 2015 2014 Pro forma Net revenues $ 4,553.2 $ 4,788.7 Pro forma Operating income 420.2 17.4 Pro forma Net income (loss) 275.3 (77.0) Pro forma Net income (loss) attributable to Coty Inc. 248.4 (110.2) Pro forma Net income (loss) attributable to Coty Inc. per common share Basic $ 0.68 $ (0.28 ) Diluted $ 0.66 $ (0.28 ) |
Lena White Limited | |
Business Acquisition [Line Items] | |
Schedule of preliminary consideration and purchase price allocation | The following table summarizes the consideration and purchase price allocation of net assets acquired in the Lena White acquisition: Consideration: Cash paid $ 8.3 Net cash paid to seller for net working capital adjustments 0.3 Noncash consideration for pre-acquisition trade receivables 1.9 Contingent consideration payable 1.1 Purchase price $ 11.6 Estimated fair value Estimated useful life (in years) Goodwill $ 2.0 Customer relationships 4.2 7 Other net assets 5.4 Total identifiable net assets $ 11.6 |
StarAsia | |
Business Acquisition [Line Items] | |
Schedule of preliminary consideration and purchase price allocation | The following tables summarize the consideration and purchase price allocation to the net assets acquired in the StarAsia acquisition: Consideration: Cash paid $ 25.0 Noncash consideration for pre-acquisition trade receivables 2.0 Net working capital adjustment received from seller (3.5 ) Purchase price $ 23.5 Estimated fair value Estimated useful life (in years) Goodwill $ 11.5 Customer relationships 7.4 12 Other net assets 4.6 Total identifiable net assets $ 23.5 |
ACQUISITION-RELATED COSTS (Tabl
ACQUISITION-RELATED COSTS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisition, Integration, Restructuring and Other Related Costs | Acquisition-related costs for fiscal 2015, 2014, and 2013 are presented below: 2015 2014 2013 Transaction-related costs $ 34.1 $ 0.7 $ 8.9 $ 34.1 $ 0.7 $ 8.9 |
RESTRUCTURING COSTS (Tables)
RESTRUCTURING COSTS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Costs | Restructuring costs for the years ended June 30, 2015 , 2014 and 2013 are presented below: Year Ended June 30, 2015 2014 2013 Organizational Redesign $ 58.6 $ 13.0 $ — Acquisition Integration Program 15.3 — — Productivity Program 2.1 14.2 25.3 China Optimization (0.6 ) 9.8 — Other restructuring programs — 0.3 4.1 Total $ 75.4 $ 37.3 $ 29.4 |
Organizational Redesign | |
Restructuring Cost and Reserve [Line Items] | |
The related liability balance and activity for restructuring costs | The related liability balance and activity for the restructuring costs are presented below: Severance and Other Total Balance—July 1, 2014 $ 9.1 $ 1.9 $ 11.0 Restructuring Charges 63.3 2.5 65.8 Payments (28.7 ) (3.8 ) (32.5 ) Changes in estimates (a) (7.2 ) — (7.2 ) Effects of exchange rates (4.5 ) (0.3 ) (4.8 ) Payables — (0.2 ) (0.2 ) Balance—June 30, 2015 $ 32.0 $ 0.1 $ 32.1 (a) The decrease in severance and employee benefits is primarily attributable to employees who have voluntarily left positions that were later eliminated. |
China Optimization | |
Restructuring Cost and Reserve [Line Items] | |
The related liability balance and activity for restructuring costs | The related liability balance and activity for the restructuring costs are presented below: Restructuring Costs Severance and Other Total Balance—July 1, 2014 $ 9.6 $ 0.2 $ 9.8 Restructuring charges — — — Payments (8.7 ) — (8.7 ) Changes in estimate (0.6 ) — (0.6 ) Effects of exchange rates 0.1 (0.2 ) (0.1 ) Balance—June 30, 2015 $ 0.4 $ — $ 0.4 |
Productivity Program | |
Restructuring Cost and Reserve [Line Items] | |
The related liability balance and activity for restructuring costs | The related liability balance and activity for the restructuring costs are presented below: Severance and Employee Benefits Third-Party Contract Terminations Other Exit Costs Total Program Costs Balance—July 1, 2014 $ 15.8 $ 0.2 $ 0.2 $ 16.2 Restructuring charges 2.2 — 1.6 3.8 Payments (8.8 ) — (1.6 ) (10.4 ) Changes in estimates (a) (1.7 ) — — (1.7 ) Effect of exchange rates (0.5 ) (0.2 ) (0.2 ) (0.9 ) Balance—June 30, 2015 $ 7.0 $ — $ — $ 7.0 (a) The decrease in severance and employee benefits is primarily attributable to employees who have voluntarily left positions that were later eliminated. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories as of June 30, 2015 and 2014 are presented below: June 30, June 30, Raw materials $ 160.9 $ 189.3 Work-in-process 8.4 12.3 Finished goods 388.5 415.8 Total inventories $ 557.8 $ 617.4 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Depreciation and amortization are computed principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives Buildings 20-40 years Marketing furniture and fixtures 3-5 years Machinery and equipment 2-15 years Computer equipment and software 2-5 years Property and equipment under capital leases and leasehold improvements Lesser of lease term or economic life Property and equipment, net as of June 30, 2015 and 2014 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 232.4 $ 230.7 Machinery and equipment 471.3 492.8 Marketing furniture and fixtures 267.7 278.1 Computer equipment and software 325.5 339.8 Construction in progress 48.7 45.4 1,345.6 1,386.8 Accumulated depreciation and amortization (845.4 ) (846.5 ) Property and equipment, net $ 500.2 $ 540.3 |
GOODWILL AND OTHER INTANGIBLE45
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and other intangible assets | Goodwill as of June 30, 2015 and June 30, 2014 is presented below: Fragrances Color Cosmetics Skin & Body Care Total Gross balance at June 30, 2014 $ 751.9 $ 538.2 $ 693.5 $ 1,983.6 Accumulated impairments (a) — — (640.8 ) (640.8 ) Net balance at June 30, 2014 $ 751.9 $ 538.2 $ 52.7 $ 1,342.8 Changes during the year ended June 30, 2015: Acquisition contingent payment (b) $ 30.0 $ — $ — $ 30.0 Acquisitions (c) 35.0 148.7 11.1 194.8 Foreign currency translation (27.0 ) (9.6 ) (0.3 ) (36.9 ) Reclassification (d) (69.1 ) — 69.1 — Gross balance at June 30, 2015 $ 720.8 $ 677.3 $ 773.4 $ 2,171.5 Accumulated impairments — — (640.8 ) (640.8 ) Net balance at June 30, 2015 $ 720.8 $ 677.3 $ 132.6 $ 1,530.7 (a) Prior to June 30, 2013, the Company recorded pre-tax non-cash impairment in the Skin & Body Care reporting unit of $384.4 . In fiscal 2014, the Company recorded pre-tax non-cash impairment in the Skin & Body Care reporting unit of $256.4 . (b) Pursuant to the Company's fiscal 2006 acquisition of Unilever Cosmetics International, the Company was contractually obligated to make annual contingent purchase price consideration payments for a 10 -year period following the acquisition to the seller. Payments are based on contractually agreed upon sales targets and can range up to $30.0 per year. The Company paid $30.0 during the third quarter of fiscal 2015, 2014 and 2013 for such contingent consideration. The March 2015 payment was the final contingent purchase price payment due under the contract. (c) During the year ended June 30, 2015 , the Company acquired 100% of the assets of Bourjois. This transaction was accounted for as business combinations (See Note 4). (d) As a result of the Company’s Organizational Redesign program announced on July 9, 2014, a certain brand and its attributable goodwill of $69.1 was reclassified from the Fragrances segment to the Skin & Body Care segment. The Company calculated the fair value of the brand relative to the reporting unit using the same methodology utilized in the annual impairment analysis. Other Intangible Assets In fiscal 2015, there were no impairments of Other intangible assets. Other intangible assets, net as of June 30, 2015 and June 30, 2014 are presented below: June 30, June 30, Indefinite-lived other intangible assets (a) $ 1,274.0 $ 1,167.8 Finite-lived other intangible assets, net (b) 639.6 669.3 Total Other intangible assets, net $ 1,913.6 $ 1,837.1 (a) Net of accumulated impairments of $188.6 as of June 30, 2015 and June 30, 2014 . (b) Net of accumulated impairments of $21.0 and $33.5 related to the TJoy trademark and customer relationships, respectively, recorded in fiscal 2014. |
Schedule of impaired intangible assets | The changes in the carrying amount of indefinite-lived other intangible assets are presented below: Fragrances Color Skin & Body Total Gross balance at June 30, 2014 $ 25.2 $ 886.5 $ 453.9 $ 1,365.6 Accumulated impairments (a) — (9.2 ) (188.6 ) (197.8 ) Balance—June 30, 2014 25.2 877.3 265.3 1,167.8 Changes during the period ended June 30, 2015 Acquisitions (b) — 112.0 — 112.0 Foreign currency translation (4.5 ) (1.3 ) — (5.8 ) Gross balance at June 30, 2015 20.7 997.2 453.9 1,471.8 Accumulated impairments — (9.2 ) (188.6 ) (197.8 ) Net balance at June 30, 2015 $ 20.7 $ 988.0 $ 265.3 $ 1,274.0 (a) Impairment charges of $197.8 were recorded prior to June 30, 2013. (b) During the year ended June 30, 2015, the Company acquired 100% of the assets of Bourjois. This transaction was accounted for as business combinations (See Note 4). |
Intangible assets subject to amortization | Intangible assets with finite lives are amortized principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives License agreements Lesser of agreement term or economic life Customer relationships 5-20 years Trademarks 5-20 years Product formulations 3-7 years Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2014 License agreements $ 835.0 $ (490.8 ) $ — $ 344.2 Customer relationships 510.8 (169.4 ) (33.5 ) 307.9 Trademarks 125.8 (90.1 ) (21.0 ) 14.7 Product formulations 31.8 (29.3 ) — 2.5 Total $ 1,503.4 $ (779.6 ) $ (54.5 ) $ 669.3 June 30, 2015 License agreements $ 800.7 $ (501.1 ) $ — $ 299.6 Customer relationships (c) 559.1 (232.8 ) — 326.3 Trademarks (c) 119.1 (108.2 ) — 10.9 Product formulations 32.7 (29.9 ) — 2.8 Total $ 1,511.6 $ (872.0 ) $ — $ 639.6 (c) The cost, accumulated amortization and accumulated impairment related to the TJoy customer relationship and trademark was eliminated as of June 30, 2015 due to disposition of the business. |
Schedule of finite-lived intangible assets weighted average remaining lives | Intangible assets subject to amortization are amortized principally using the straight-line method and have the following weighted-average remaining lives: Description License agreements 10.4 years Customer relationships 8.8 years Trademarks 12.4 years Product formulations 2.6 years |
Amortization expense | Amortization expense totaled $74.7 , $85.7 and $90.2 for the fiscal years ended June 30, 2015 , 2014 and 2013 , respectively. The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below: 2016 $ 78.6 2017 77.8 2018 77.3 2019 76.4 2020 75.0 |
ACCRUED EXPENSES AND OTHER CU46
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities as of June 30, 2015 and 2014 are presented below: June 30, June 30, Advertising, marketing and licensing $ 179.1 $ 194.8 Customer returns, discounts, allowances and bonuses 168.2 196.4 Other compensation and related benefits 132.0 129.3 VAT, sales and other non-income taxes 46.7 41.1 Restructuring costs 44.3 32.9 Acquisition-related costs 31.3 — Payroll and payroll related taxes 21.2 23.2 Share-based compensation liability 13.9 — Unfavorable lease contracts 7.1 18.6 Derivative liabilities 6.3 11.5 Auditing and consulting fees 5.5 8.7 Deferred income 4.1 8.3 Interest 3.5 3.9 Rent 3.1 3.7 Other 52.9 51.2 Total accrued expenses and other current liabilities $ 719.2 $ 723.6 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of debt | June 30, June 30, Short-term debt $ 22.1 $ 18.8 2015 Credit Agreement due March 2018 800.0 — Coty Inc. Credit Facility 2013 Term Loan due March 2018 1,050.0 1,250.0 Incremental Term Loan due April 2018 625.0 625.0 Revolving Loan Facility due April 2018 136.5 899.5 Senior Notes: 5.12% Series A notes due June 2017 — 100.0 5.67% Series B notes due June 2020 — 225.0 5.82% Series C notes due June 2022 — 175.0 Other long-term debt and capital lease obligations 1.1 0.2 Total debt 2,634.7 3,293.5 Less: Short-term debt and current portion of long-term debt (28.8 ) (33.4 ) Total Long-term debt $ 2,605.9 $ 3,260.1 |
Aggregate maturities of long-term debt | Aggregate maturities of all long-term debt, including current portion of long-term debt and excluding capital lease obligations as of June 30, 2015 , are presented below: Fiscal Year Ending June 30 2016 $ 6.5 2017 175.0 2018 2,430.0 2019 — 2020 — Thereafter — Total $ 2,611.5 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Leases [Abstract] | |
Schedule of future minimum rental payments for operating leases | The minimum rental lease commitments for non-cancellable operating leases as of June 30, 2015 are presented below: Fiscal Year Ending June 30 2016 $ 59.0 2017 49.5 2018 43.2 2019 37.7 2020 35.7 Thereafter 205.2 430.3 Less: sublease income (41.1 ) Total minimum payments required $ 389.2 |
Rent expense relating to operating leases | Rent expense relating to operating leases in fiscal 2015 , 2014 and 2013 is presented below: Year Ended June 30, 2015 2014 2013 Rent expense $ 87.1 $ 112.5 $ 89.7 Less: sublease income (4.3 ) (1.4 ) (1.2 ) Total $ 82.8 $ 111.1 $ 88.5 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax | ncome (loss) from operations before income taxes in fiscal 2015 , 2014 and 2013 is presented below: Year Ended June 30, 2015 2014 2013 United States $ (173.7 ) $ (119.1 ) $ (53.5 ) Foreign 407.0 75.0 372.2 Total $ 233.3 $ (44.1 ) $ 318.7 |
Schedule of components of income tax expense (benefit) | The components of the Company’s total (benefit) provision for income taxes during fiscal 2015 , 2014 and 2013 are presented below: Year Ended June 30, 2015 2014 2013 (Benefit) provision for income taxes: Current: Federal $ 3.7 $ 5.6 $ (26.5 ) State and local 3.3 2.1 2.8 Foreign 54.1 50.8 110.6 Total 61.1 58.5 86.9 Deferred: Federal (71.0 ) (30.6 ) 8.3 State and local (12.0 ) (0.7 ) 2.6 Foreign (4.2 ) (7.1 ) 19.0 Total (87.2 ) (38.4 ) 29.9 (Benefit) provision for income taxes $ (26.1 ) $ 20.1 $ 116.8 |
Schedule of effective income tax rate reconciliation | The reconciliation of the U.S. Federal statutory tax rate to the Company’s effective income tax rate during fiscal 2015 , 2014 and 2013 is presented below: Year Ended June 30, 2015 2014 2013 Income (loss) before income taxes $ 233.3 $ (44.1 ) $ 318.7 Provision (benefit) for income taxes at statutory rate $ 81.7 $ (15.4 ) $ 111.6 State and local taxes—net of federal benefit (5.6 ) 0.9 3.5 Foreign tax differentials (74.4 ) (53.0 ) (44.2 ) Change in valuation allowances (6.6 ) 36.1 18.2 Change in unrecognized tax benefit (35.2 ) (24.4 ) 4.8 Asset impairment charges — 67.4 — Share-based compensation — 1.8 16.0 Permanent differences—net 10.6 1.8 7.2 Other 3.4 4.9 (0.3 ) (Benefit) provision for income taxes $ (26.1 ) $ 20.1 $ 116.8 Effective income tax rate (11.2 )% (45.6 )% 36.6 % |
Schedule of deferred tax assets and liabilities | Significant components of Deferred income tax assets and liabilities as of June 30, 2015 and 2014 are presented below: June 30, June 30, Deferred income tax assets: Inventories $ 14.0 $ 20.2 Accruals and allowances 77.0 87.4 Sales returns 15.9 20.1 Share-based compensation 26.1 35.4 Employee benefits 38.4 50.9 Net operating loss carry forwards and tax credits 92.4 102.2 Other 27.2 45.3 Less: valuation allowances (81.9 ) (98.6 ) Net deferred income tax assets 209.1 262.9 Deferred income tax liabilities: Intangible assets 436.0 421.9 Licensing rights 6.3 6.4 Other 29.7 33.8 Deferred income tax liabilities 472.0 462.1 Net deferred income tax liabilities $ (262.9 ) $ (199.2 ) |
Expirations of tax loss carryforwards | The expirations of tax loss carry forwards, amounting to $264.3 as of June 30, 2015 , in each of the fiscal years ending June 30, are presented below: Fiscal Year Ending June 30 United States Western Europe Rest of World Total 2016 $ — $ — $ 14.9 $ 14.9 2017 — — 18.2 18.2 2018 — — 37.8 37.8 2019 — — 51.6 51.6 2020 and thereafter — 44.6 97.2 141.8 Total $ — $ 44.6 $ 219.7 $ 264.3 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of UTBs is presented below: Year Ended June 30, 2015 2014 2013 UTBs—July 1 $ 400.5 $ 331.4 $ 326.5 Additions based on tax positions related to the current year 51.6 29.5 36.8 Additions for tax positions of prior years 6.4 91.9 5.0 Reductions for tax positions of prior years (60.3 ) (9.9 ) — Settlements (29.7 ) (33.8 ) (27.9 ) Lapses in statutes of limitations (14.2 ) (11.6 ) (13.8 ) Foreign currency translation (11.7 ) 3.0 4.8 UTBs—June 30 $ 342.6 $ 400.5 $ 331.4 |
OTHER NONCURRENT LIABILITIES (T
OTHER NONCURRENT LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other noncurrent liabilities | Other noncurrent liabilities as of June 30, 2015 and 2014 are presented below: June 30, June 30, Noncurrent income tax liabilities $ 182.9 $ 154.3 Rent 36.3 37.5 Restructuring 10.5 5.3 Unfavorable lease contracts 9.9 11.2 Deferred income 3.6 8.1 Mandatorily redeemable financial instruments 5.1 5.5 Other 8.4 6.8 Total noncurrent liabilities $ 256.7 $ 228.7 |
INTEREST EXPENSE, NET (Tables)
INTEREST EXPENSE, NET (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Interest Income And Interest Expense Disclosure [Abstract] | |
Interest expense, net | Interest expense, net for the years ended June 30, 2015 , 2014 and 2013 is presented below: Year Ended June 30, 2015 2014 2013 Interest expense $ 71.4 $ 69.8 $ 77.2 Foreign exchange losses, net of derivative contracts 4.1 2.8 — Deferred financing fees write-off 0.9 — 2.6 Accretion of acquisition-related liability — — 0.6 Interest income (3.4 ) (4.1 ) (3.9 ) Total interest expense, net $ 73.0 $ 68.5 $ 76.5 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The aggregate reconciliation of the projected benefit obligations, plan assets, funded status and amounts recognized in the Company’s Consolidated Financial Statements related to the Company’s pension plans and other post-employment benefit plans is presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2015 2014 2015 2014 2015 2014 2015 2014 Change in benefit obligation Benefit obligation-July 1 $ 80.8 $ 72.8 $ 197.4 $ 166.6 $ 86.0 $77.7 $ 364.2 $317.1 Service cost — — 5.5 5.7 1.9 2.3 7.4 8.0 Interest cost 3.3 3.4 4.3 5.5 2.7 3.4 10.3 12.3 Plan participants’ contributions — — 2.0 1.7 0.4 — 2.4 1.7 Plan amendments — — 0.3 2.1 (36.9 ) — (36.6 ) 2.1 Benefits paid (4.0 ) (4.3 ) (6.4 ) (9.0 ) (3.1 ) (2.0) (13.5 ) (15.3) Premiums paid — — (0.6 ) (0.9 ) — — (0.6 ) (0.9) Pension Curtailment — — (1.5 ) (0.6 ) (0.1 ) — (1.6 ) (0.6) Pension Settlements — — (6.1 ) (0.1 ) — — (6.1 ) (0.1) Acquisition and transfer — — 6.2 1.3 — — 6.2 1.3 Actuarial loss (gain) (2.4 ) 8.9 7.4 17.3 (2.5 ) 5.4 2.5 31.6 Effect of exchange rates — — (31.7 ) 7.8 (0.3 ) — (32.0 ) 7.8 Other — — 0.4 — 0.1 (0.8) 0.5 (0.8) Benefit obligation-June 30 $ 77.7 $ 80.8 $ 177.2 $ 197.4 $ 48.2 $ 86.0 $ 303.1 $ 364.2 Change in plan assets Fair value of plan assets-July 1 $ 45.9 $ 36.9 $ 37.5 $ 30.6 $ — $ — $ 83.4 $ 67.5 Actual return on plan assets 2.5 4.3 2.3 1.8 — — 4.8 6.1 Employer contributions 7.8 9.0 8.6 10.3 2.7 2.0 19.1 21.3 Plan participants’ contributions — — 2.0 1.7 0.4 — 2.4 1.7 Benefits paid (4.0 ) (4.3 ) (6.4 ) (9.0 ) (3.1 ) (2.0 ) (13.5 ) (15.3) Premiums paid — — (0.6 ) (0.9 ) — — (0.6 ) (0.9) Plan settlements — — (6.1 ) — — — (6.1 ) — Acquisition and transfer — — 2.8 1.3 — — 2.8 1.3 Effect of exchange rates — — (3.5 ) 1.7 — — (3.5 ) 1.7 Other — — — — — — — — Fair value of plan assets-June 30 52.2 45.9 36.6 37.5 — — 88.8 83.4 Funded status-June 30 $ (25.5 ) $ (34.9 ) $ (140.6 ) $ (159.9 ) $ (48.2 ) $ (86.0 ) $ (214.3 ) $ (280.8 ) |
Schedule of Amounts Recognized in Balance Sheet | With respect to the Company’s pension plans and other post-employment benefit plans, amounts recognized in the Company’s Consolidated Balance Sheets as of June 30, 2015 and 2014 , are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2015 2014 2015 2014 2015 2014 2015 2014 Noncurrent assets $ — $ — $ — $ — $ — $ — $ — $ — Current liabilities (0.7 ) (1.5 ) (4.6 ) (5.0 ) (2.5 ) (1.8 ) (7.8 ) (8.3 ) Noncurrent liabilities (24.8 ) (33.4 ) (136.0 ) (154.9 ) (45.7 ) (84.2 ) (206.5 ) (272.5 ) Funded Status (25.5 ) (34.9 ) (140.6 ) (159.9 ) (48.2 ) (86.0 ) (214.3 ) (280.8 ) AOC(L)/I (13.6 ) (17.4 ) (48.2 ) (56.1 ) 35.2 (0.8 ) (26.6 ) (74.3 ) Net amount recognized $ (39.1 ) $ (52.3 ) $ (188.8 ) $ (216.0 ) $ (13.0 ) $ (86.8 ) $ (240.9 ) $ (355.1 ) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Pension plans with accumulated benefit obligations in excess of plan assets and projected benefit obligations in excess of plan assets are presented below: Pension plans with accumulated benefit obligations in excess of plan assets Pension plans with projected benefit obligations in excess of plan assets U.S. International U.S. International 2015 2014 2015 2014 2015 2014 2015 2014 Projected benefit obligation $ 77.8 $ 80.8 $ 175.8 $ 195.7 $ 77.8 $ 80.8 $ 177.1 $ 197.6 Accumulated benefit obligation $ 76.7 $ 80.8 $ 168.3 $ 187.7 $ 76.7 $ 80.8 $ 169.4 $ 189.3 Fair value of plan assets $ 52.2 $ 45.9 $ 35.4 $ 35.6 $ 52.2 $ 45.9 $ 36.6 $ 37.5 |
Components of net periodic benefit cost for pension plans and other post-employment plans | The components of net periodic benefit cost for pension plans and other post-employment benefit plans recognized in the Consolidated Statements of Operations are presented below: Year Ended June 30, Pension Plans Other Post- Employment Benefits U.S. International Total 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 Service cost $ — $ — $ — $ 5.5 $ 5.7 $ 4.5 $ 1.9 $ 2.3 $ 2.8 $ 7.4 $ 8.0 $ 7.3 Interest cost 3.3 3.4 3.3 4.3 5.5 5.6 2.7 3.4 3.6 10.3 12.3 12.5 Expected return on plan assets (3.0 ) (2.5 ) (2.3 ) (1.2 ) (1.2 ) (1.0 ) — — — (4.2 ) (3.7 ) (3.3 ) Amortization of prior service (credit) cost — — — 0.3 0.2 0.1 (3.1 ) (0.2 ) (0.2 ) (2.8 ) — (0.1 ) Amortization of net loss (gain) 2.0 1.0 2.9 3.1 2.1 1.3 (0.1 ) (1.1 ) — 5.0 2.0 4.2 Settlements loss (gain) recognized — — — 1.2 (0.1 ) (0.1 ) (0.1 ) — — 1.1 (0.1 ) (0.1 ) Curtailment (gain) loss recognized — — — (0.6 ) (0.6 ) — — — — (0.6 ) (0.6 ) — Net periodic benefit cost $ 2.3 $ 1.9 $ 3.9 $ 12.6 $ 11.6 $ 10.4 $ 1.3 $ 4.4 $ 6.2 $ 16.2 $ 17.9 $ 20.5 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Pre-tax amounts recognized in AOC(L)/I, which have not yet been recognized as a component of net periodic benefit cost are presented below: Pension Plans Other Post-Employment Benefits U.S. International Total 2015 2014 2015 2014 2015 2014 2015 2014 Net actuarial (loss) gain $ (13.6 ) $ (17.4 ) $ (45.4 ) $ (52.9 ) $ 1.1 $ (1.0 ) $ (57.9 ) $ (71.3 ) Prior service (cost) credit — — (2.8 ) (3.2 ) 34.1 0.2 31.3 (3.0 ) Total recognized in AOC(L)/I $ (13.6 ) $ (17.4 ) $ (48.2 ) $ (56.1 ) $ 35.2 $ (0.8 ) $ (26.6 ) $ (74.3 ) Changes in plan assets and benefit obligations recognized in OCI/(L) during the fiscal year are presented below: Pension Plans Other Post-Employment Benefits U.S. International Total 2015 2014 2015 2014 2015 2014 2015 2014 Net actuarial (loss) gain $ 1.8 $ (7.1 ) $ (5.6 ) $ (16.7 ) $ 2.3 $ (5.4 ) $ (1.5 ) $ (29.2 ) Amortization of prior service cost (credit) — — 0.3 0.2 (3.1 ) (0.2 ) (2.8 ) — Recognized net actuarial loss (gain) 2.0 1.0 4.3 2.1 (0.1 ) (1.1 ) 6.2 2.0 Prior service cost — — (0.3 ) (2.1 ) 36.9 — 36.6 (2.1 ) Effect of exchange rates — — 9.2 (2.0 ) — 0.2 9.2 (1.8 ) Total recognized in OCI/(L) $ 3.8 $ (6.1 ) $ 7.9 $ (18.5 ) $ 36.0 $ (6.5 ) $ 47.7 $ (31.1 ) |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | Amounts in AOCI/(L) expected to be amortized as components of net periodic benefit cost during fiscal 2016 are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International Prior service (cost) credit $ — $ (0.2 ) $ 5.9 $ 5.7 Net loss (1.2 ) (3.3 ) — (4.5 ) $ (1.2 ) $ (3.5 ) $ 5.9 $ 1.2 |
Schedule of Assumptions Used | The weighted-average assumptions used to determine the Company’s projected benefit obligation above are presented below: Pension Plans Other Post-Employment Benefits U.S. International 2015 2014 2015 2014 2015 2014 Discount rates 4.1%-4.5% 3.1%-4.4% 1.0%-2.7% 1.8%-3.2% 4.1%-4.6 4.8% Future compensation growth rates N/A N/A 1.5%-2.5% 2.0%-2.5% N/A N/A The weighted-average assumptions used to determine the Company’s net periodic benefit cost in fiscal 2015 , 2014 and 2013 are presented below: Pension Plans Other Post- U.S. International 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rates 3.1%-4.5% 3.6%-5.0% 3.4%-4.6% 1.8%-3.2% 2.3%-3.8% 2.2%-4.5% 4.2%-4.8% 5.4% 4.9% Future compensation growth rates N/A N/A N/A 2.0%-2.5% 2.0%-2.5% 2.5%-3.0% N/A N/A N/A Expected long-term rates of return on plan assets 6.5% 6.5% 6.5% 2.8%-4.3% 3.3%-4.3% 3.3%-4.3% N/A N/A N/A |
Schedule of Health Care Cost Trend Rates | The health care cost trend rate assumptions have a significant effect on the amounts reported. 2015 2014 2013 Health care cost trend rate assumed for next year 6.3%-6.7% 6.3%-6.9% 7.1%-8.0% Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5% 5% 5% Year that the rate reaches the ultimate trend rate 2022-2023 2021-2023 2018-2019 |
Schedule of Effect of 1% Change in Assumed Health Care Cost Trend Rates | A one-percentage point change in assumed health care cost trend rates would have the following effects: One Percentage Point Increase One Percentage Point Decrease Effect on total service cost and interest cost $ 6.1 $ (5.6 ) Effect on post-employment benefit obligation 0.6 (0.5 ) |
Schedule of Allocation of Plan Assets | The U.S. and international pension plan assets that the Company measures at fair value on a recurring basis, based on the fair value hierarchy as described in Note 2, as of June 30, 2015 and 2014 are presented below: Level 1 Level 2 Level 3 Total 2015 2014 2015 2014 2015 2014 2015 2014 Equity securities: Domestic equity securities $ 15.8 $ 15.2 $ — $ — $ — $ — $ 15.8 $ 15.2 International equity securities 4.4 4.7 — — — — 4.4 4.7 Fixed income securities: U.S. Government and government agencies 4.9 5.7 12.3 10.8 — — 17.2 16.5 Corporate securities — — 6.8 8.3 — — 6.8 8.3 Other: Cash and cash equivalents 8.0 1.2 — — — — 8.0 1.2 Insurance contracts — — — — 36.6 37.5 36.6 37.5 Total pension plan assets at fair value-June 30 $ 33.1 $ 26.8 $ 19.1 $ 19.1 $ 36.6 $ 37.5 $ 88.8 $ 83.4 The target and weighted-average asset allocations for the Company’s U.S. pension plans as of June 30, 2015 and 2014 , by asset category are presented below: % of Plan Assets at Year Ended Target 2015 2014 Equity securities 45 % 39 % 44 % Fixed income securities 55 % 46 % 53 % Cash and other investments — % 15 % 3 % |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The reconciliations of Level 3 plan assets measured at fair value in fiscal 2015 and 2014 are presented below: June 30, June 30, Insurance contract: Fair value-July 1 $ 37.5 $ 30.6 Return on plan assets 2.3 1.8 Purchases, sales and settlements, net 0.3 3.4 Effect of exchange rates (3.5 ) 1.7 Fair value-June 30 $ 36.6 $ 37.5 |
Schedule of Expected Benefit Payments | Expected benefit payments, which reflect expected future service, as appropriate, are presented below: Pension Plans Other Post-Employment Benefits Total Fiscal Year Ending June 30 U.S International 2016 $ 3.8 $ 7.6 $ 1.8 $ 13.2 2017 4.5 7.3 1.7 13.5 2018 4.5 7.5 2.0 14 2019 4.6 7.8 2.3 14.7 2020 4.7 8.6 2.5 15.8 2020 - 2023 24.1 41.5 15.3 80.9 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities measured at fair value on recurring basis | The financial assets and liabilities that the Company measures at fair value on a recurring basis based on the fair value hierarchy, as of June 30, 2015 and 2014 are presented below: Level 1 Level 2 Level 3 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Financial assets and liabilities Recurring fair value measurements Assets: Foreign exchange contracts $ — $ — $ 12.4 $ 2.1 $ — $ — Liabilities: Foreign exchange contracts $ — $ — $ 6.3 $ 11.5 $ — $ — Contingent consideration - business combinations — — — — 0.9 1.1 Total Liabilities $ — $ — $ 6.3 $ 11.5 $ 0.9 $ 1.1 Total recurring fair value measurements $ — $ — $ 6.1 $ (9.4 ) $ (0.9 ) $ (1.1 ) |
Fair value of financial instruments | The fair values of the Company’s financial instruments estimated as of June 30, 2015 and 2014 are presented below: June 30, 2015 June 30, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Coty Inc. Credit Agreements $ 2,611.5 $ 2,614.2 $ 2,774.5 $ 2,763.2 Senior Notes - Series A — — 100.0 109.7 Senior Notes - Series B — — 225.0 256.3 Senior Notes - Series C — — 175.0 199.9 Dividends payable 1.4 1.1 0.9 0.7 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivative instruments | The following table presents the fair value of derivative instruments outstanding at June 30, 2015 and 2014 : Asset Liability Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Derivatives designated as hedges: Foreign exchange forward contracts Prepaid expenses and other current assets $ 6.8 $ — Accrued expenses and other current liabilities $ 4.8 $ 10.5 Total derivatives designated as hedges $ 6.8 $ — $ 4.8 $ 10.5 Derivatives not designated as hedges: Foreign exchange forward contracts Prepaid expenses and other current assets $ 5.6 $ 2.1 Accrued expenses and other current liabilities $ 1.5 $ 1.0 Total derivatives not designated as hedges $ 5.6 $ 2.1 $ 1.5 $ 1.0 Total derivatives $ 12.4 $ 2.1 $ 6.3 $ 11.5 |
Gross amount of foreign exchange hedges recorded in Condensed Consolidated Balance Sheet | The table below presents the gross amount of foreign exchange contract hedges recorded as assets and liabilities in Prepaid expenses and other current assets and Accrued expenses and other current liabilities in the Consolidated Balance Sheet, respectively, as of June 30, 2015 : Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Assets $ 16.1 $ (3.7 ) $ 12.4 $ — $ — $ 12.4 Liabilities $ (6.5 ) $ 0.2 $ (6.3 ) $ — $ — $ (6.3 ) The table below presents the gross amount of foreign exchange contract hedges recorded as assets and liabilities in Prepaid expenses and other current assets and Accrued expenses and other current liabilities in the Consolidated Balance Sheet, respectively, as of June 30, 2014 : Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Assets $ 2.2 $ (0.1 ) $ 2.1 $ — $ — $ 2.1 Liabilities $ (12.9 ) $ 1.4 $ (11.5 ) $ — $ — $ (11.5 ) |
Gross amount of foreign exchange hedges recorded as liabilities in Condensed Consolidated Balance Sheet | The table below presents the gross amount of foreign exchange contract hedges recorded as assets and liabilities in Prepaid expenses and other current assets and Accrued expenses and other current liabilities in the Consolidated Balance Sheet, respectively, as of June 30, 2015 : Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Assets $ 16.1 $ (3.7 ) $ 12.4 $ — $ — $ 12.4 Liabilities $ (6.5 ) $ 0.2 $ (6.3 ) $ — $ — $ (6.3 ) The table below presents the gross amount of foreign exchange contract hedges recorded as assets and liabilities in Prepaid expenses and other current assets and Accrued expenses and other current liabilities in the Consolidated Balance Sheet, respectively, as of June 30, 2014 : Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Assets $ 2.2 $ (0.1 ) $ 2.1 $ — $ — $ 2.1 Liabilities $ (12.9 ) $ 1.4 $ (11.5 ) $ — $ — $ (11.5 ) |
Amount of gains and losses related to derivative financial instruments not designated as hedging instruments | The amount of gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments during the fiscal years ended June 30, 2015 , 2014 and 2013 is presented below: Consolidated Statements of Operations Gain (Loss) Recognized 2015 2014 2013 Interest expense, net (a) $ (37.2 ) $ 0.4 $ 0.8 Net revenues $ (0.1 ) $ — $ — Cost of sales $ (0.3 ) $ 0.1 $ 0.9 Selling, general and administrative $ (0.2 ) $ (0.1 ) $ — (a) The impact on interest expense, net at June 30, 2015 related to derivative contracts entered into to offset fluctuations in the underlying non-functional currency cash balances and intercompany loans at June 30, 2015 is due to increased foreign exchange exposure and higher volatility in currencies during the year, which is more than offset by the revaluation of underlying non-functional currency cash balances. |
Reclassification out of Accumulated Other Comprehensive Income | The amount of gains and losses reclassified from AOCI to the Consolidated Statements of Operations related to the Company’s derivative financial instruments which are designated as hedging instruments during the fiscal years ended June 30, 2015, 2014 and 2013 is presented below: Consolidated Statements of Operations Classification of Gain (Loss) Reclassified from AOCI/(L) Gain (Loss) Recognized in Operations Year Ended June 30, 2015 2014 2013 Net revenues $ 8.1 $ — $ — Cost of sales $ 0.3 $ — $ — |
NONCONTROLLING INTERESTS AND 55
NONCONTROLLING INTERESTS AND REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
The effect of the change in the ownership percentage of the NCI on net income attributable to Coty Inc. | The effect of the change in the ownership percentage of the NCI on Net income attributable to Coty Inc. is presented below: Year Ended June 30, 2015 2014 2013 Net (loss) income attributable to Coty Inc. $ 232.5 $ (97.4 ) $ 168.0 Decrease in APIC for purchase of Hong Kong NCI — (4.2 ) — Net (loss) income attributable to Coty Inc. and transfers from NCI $ 232.5 $ (101.6 ) $ 168.0 |
Redeemable noncontrolling interest redemption adjustments | The Company adjusts the redeemable noncontrolling interests to the redemption values at the end of each reporting period with changes recognized as adjustments to APIC. On September 20, 2013, the Company gave notice to purchase 7% of a certain Middle East (M.E.) subsidiary. The Company and the RNCI holder amended the M.E. subsidiary’s Shareholders’ Agreement resulting in the Company recording an additional 7% interest in the M.E. subsidiary as of July 1, 2014 and consummated the purchase during the three months ended September 30, 2014 for a purchase price of $15.8 . The $15.8 is recorded as a reduction to Redeemable Noncontrolling Interest in the Company’s Consolidated Statements of Equity and Redeemable Noncontrolling Interests as of June 30, 2015. The purchase price of $15.8 was paid in full as of June 30, 2015. The Company also has the ability to exercise the Call right for the remaining noncontrolling interest of 33% on July 1, 2028, with such transaction to close on July 1, 2029. Middle East Hong Kong Percentage of redeemable noncontrolling interest 33% 45% Earliest exercise date(s) 33.0% in July 2028 June 2016 Formula of redemption value (a) 3-year average 3-year average of EBIT (b) * 6 of EBIT (b) * 8 plus retained earnings less liabilities (c) (a) The redemption value formula related to Hong Kong is subject to a 110% of three year’s averaged net sales cap and net asset value minimum. (b) EBIT is defined in the respective stockholder agreements as earnings before interest and income taxes. (c) Liabilities are defined in the stockholder agreement as all financial indebtedness except bank overdraft required for normalized trading working capital. |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) (Losses) Gains on Cash Flow Hedges Pension and Other Post-Employment Benefit Plans Foreign Currency Translation Adjustments Total Beginning Balance at July 1, 2013 $ — $ (33.4 ) $ (85.2 ) $ (118.6 ) Other Comprehensive income before reclassifications (8.9 ) (22.7 ) 63.7 32.1 Amounts reclassified from AOCL (a) — 1.4 — 1.4 Net current-period other comprehensive income (8.9 ) (21.3 ) 63.7 33.5 Ending balance at June 30, 2014 $ (8.9 ) $ (54.7 ) $ (21.5 ) $ (85.1 ) Other Comprehensive income before reclassifications $ 12.8 $ 27.7 $ (227.8 ) $ (187.3 ) Less: Net Amounts reclassified from AOCL (a) (4.0 ) 2.4 — (1.6 ) Net current-period other comprehensive income $ 8.8 $ 30.1 $ (227.8 ) $ (188.9 ) Ending balance at June 30, 2015 $ (0.1 ) $ (24.6 ) $ (249.3 ) $ (274.0 ) (a) Amortization of actuarial losses of $3.4 and $2.0 , net of taxes of $1.0 and $(0.6) , were reclassified out of AOCL and included in the computation of net period pension costs for the fiscal year ending June 30, 2015 and 2014, respectively (see Note 18). |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Fair value of outstanding stock option liability using Black-Scholes valuation model | were estimated using the Black-Scholes valuation model with the following assumptions: 2015 2014 2013 Expected life 7.50 years N/A 4.03 years Risk-free interest rate 1.79 % N/A 0.84 % Expected volatility 31.73 % N/A 32.53 % Expected dividend yield 0.80 % N/A 0.86 % The fair value of the Company’s outstanding Series A Preferred Stock liability on June 30, 2015 were estimated using the Black-Scholes valuation model with the following assumptions: 2015 Expected life 5.79 years Risk-free interest rate 1.96 % Expected volatility 26.14 % Expected dividend yield 0.63 % |
Outstanding nonqualified stock option activity | The Company’s outstanding nonqualified stock options as of June 30, 2015 and activity during the fiscal year then ended are presented below: Shares (in millions) Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term Outstanding at July 1, 2014 23.2 $ 9.32 Granted 1.7 24.13 Exercised (6.8 ) 8.59 Forfeited (4.1 ) 9.99 Outstanding at June 30, 2015 14.0 $ 11.32 Vested and expected to vest at June 30, 2015 12.5 $ 10.79 $ 264.3 5.15 Exercisable at June 30, 2015 3.7 $ 8.41 $ 87.7 2.97 |
A summary of the total intrinsic value of stock options exercised and payments to settle nonqualified stock options | A summary of the aggregated weighted-average grant date fair value of stock options granted, total intrinsic value of stock options exercised and payment to settle nonqualified stock options for fiscal 2015 , 2014 and 2013 is presented below: 2015 2014 2013 Weighted-average grant date fair value of stock options $ 8.75 $ — $ — Intrinsic value of options exercised 77.2 28.3 160.6 Payment to settle nonqualified stock options of former CEOs 12.0 — 101.4 Payment to settle nonqualified stock options 53.0 |
Schedule of non-vested nonqualified share activity | The Company’s non-vested nonqualified stock options as of June 30, 2015 and activity during the fiscal year then ended are presented below: Shares (in millions) Weighted Average Grant Date Fair Value Non-vested at July 1, 2014 16.2 $ 3.81 Granted 1.7 24.13 Vested (3.5 ) 3.56 Forfeited (4.1 ) 3.89 Non-vested at June 30, 2015 10.3 $ 4.70 The Company’s non-vested shares of Series A Preferred Stock as of June 30, 2015 and activity during the fiscal year then ended are presented below: Shares Weighted Non-vested at July 1, 2014 — $ — Granted 7.4 5.24 Vested — — Forfeited (5.5 ) 5.24 Non-vested at June 30, 2015 1.9 $ 5.24 |
Outstanding RSU activity | The Company’s outstanding RSUs as of June 30, 2015 and activity during the fiscal year then ended are presented below: Shares (in millions) Aggregate Intrinsic Value Weighted Average Remaining Contractual Term Outstanding at July 1, 2014 4.4 Granted 1.8 Settled (0.3 ) Cancelled (1.6 ) Outstanding at June 30, 2015 4.3 Vested and expected to vest at June 30, 2015 3.4 $ 107.4 3.14 |
Outstanding and non-vested RSU activity | The Company’s outstanding and non-vested RSUs as of June 30, 2015 and activity during the fiscal year then ended are presented below: Shares (in millions) Weighted Average Grant Date Fair Value Outstanding and nonvested at July 1, 2014 4.0 $ 15.77 Granted 1.8 16.95 Vested (0.3 ) 14.32 Cancelled (1.6 ) 15.82 Outstanding and nonvested at June 30, 2015 3.9 $ 16.23 |
NET INCOME (LOSS) ATTRIBUTABL58
NET INCOME (LOSS) ATTRIBUTABLE TO COTY INC. PER COMMON SHARE (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of numerators and denominators of basic and diluted EPS computations | Reconciliation between the numerators and denominators of the basic and diluted EPS computations is presented below: Year Ended June 30, 2015 2014 2013 Net income (loss) attributable to Coty Inc. $ 232.5 $ (97.4 ) $ 168.0 Weighted-average common shares outstanding—Basic 353.3 381.7 381.7 Effect of dilutive stock options and Series A Preferred Stock (a) 7.6 — 12.3 Effect of restricted stock and RSUs (b) 2.0 — 2.4 Weighted-average common shares outstanding—Diluted $ 362.9 $ 381.7 $ 396.4 Net income (loss) attributable to Coty Inc. per common share: Basic $ 0.66 $ (0.26 ) $ 0.44 Diluted 0.64 (0.26 ) 0.42 (a) As of June 30, 2015 and 2013, outstanding stock options and Series A Preferred Stock to purchase 0.7 million and 1.2 million shares of Common Stock, respectively, are excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. Due to the net loss incurred in fiscal 2014, stock options are excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. (b) As of June 30, 2015 and 2013, there are 0.4 million and zero anti-dilutive RSUs excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. Due to the net loss incurred in fiscal 2014, RSUs are excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. |
SUMMARY OF SIGNIFICANT ACCOUN59
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property Plant and Equipment (Details) | 12 Months Ended |
Jun. 30, 2015 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Marketing furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 2 years |
Marketing furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 4 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 2 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
Computer equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 2 years |
Computer equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN60
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Finite Lived Intangible Assets (Details) | 12 Months Ended |
Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives | 9 years 7 months 6 days |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives | 8 years 9 months 18 days |
Customer relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives | 5 years |
Customer relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives | 20 years |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives | 12 years 4 months 24 days |
Trademarks | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives | 5 years |
Trademarks | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives | 20 years |
Product Formulations | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives | 2 years 7 months 6 days |
Product Formulations | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives | 3 years |
Product Formulations | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN61
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015USD ($)unit | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Number of reporting units | unit | 3 | ||
Sales returns | 3.30% | 3.90% | 3.70% |
Trade spending | 9.30% | 9.40% | 9.40% |
Selling, general and administrative | |||
Property, Plant and Equipment [Line Items] | |||
Advertising expense | $ 1,007.7 | $ 1,070 | $ 1,072.3 |
Depreciation and amortization | 69.8 | 67.5 | 65.2 |
Research and development expense | 47.4 | 46.5 | 44.6 |
Operating Income (Loss) | |||
Property, Plant and Equipment [Line Items] | |||
Gains (losses) from foreign currency exchange transactions | 7.9 | (18.7) | 0.1 |
Interest Expense, Net and Other Expense (Income), Net | |||
Property, Plant and Equipment [Line Items] | |||
Gains (losses) from foreign currency exchange transactions | $ (4.1) | $ (2.8) | $ (0.2) |
SEGMENT REPORTING - Reporting S
SEGMENT REPORTING - Reporting Segments (Details) $ in Millions | 12 Months Ended | |||
Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | ||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 4,395.2 | $ 4,551.6 | $ 4,649.1 | |
Depreciation and amortization | [1] | 230.9 | 250.7 | 259.6 |
Operating (loss) income | 395.1 | 25.7 | 394.4 | |
Interest expense, net | 73 | 68.5 | 76.5 | |
Loss on early extinguishment of debt | 88.8 | 0 | 0 | |
Other expense (income), net | 0 | 1.3 | (0.8) | |
Income (loss) before income taxes | $ 233.3 | (44.1) | 318.7 | |
Number of operating segments | segment | 3 | |||
Operating Segments | Fragrances | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 2,178.3 | 2,324 | 2,312.8 | |
Depreciation and amortization | [1] | 90.5 | 102.8 | 96.3 |
Operating (loss) income | 352.7 | 341.2 | 354.9 | |
Operating Segments | Color Cosmetics | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,445 | 1,366.2 | 1,468.5 | |
Depreciation and amortization | [1] | 99.9 | 92.6 | 91.3 |
Operating (loss) income | 158.5 | 154.2 | 208.8 | |
Operating Segments | Skin & Body Care | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 771.9 | 861.4 | 867.8 | |
Depreciation and amortization | [1] | 39.2 | 50.8 | 54.5 |
Operating (loss) income | 33.1 | (337.3) | 9.1 | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | [1] | 1.3 | 4.5 | 17.5 |
Operating (loss) income | (149.2) | (132.4) | (178.4) | |
Corporate | Restatement adjustment | Allocation of Depreciation and Amortization to Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 34.5 | 31.9 | ||
Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Operating (loss) income | 395.1 | 25.7 | 394.4 | |
Interest expense, net | 73 | 68.5 | 76.5 | |
Loss on early extinguishment of debt | 88.8 | 0 | 0 | |
Other expense (income), net | 0 | 1.3 | (0.8) | |
Income (loss) before income taxes | $ 233.3 | $ (44.1) | $ 318.7 | |
[1] | Subsequent to the issuance of the Company’s fiscal 2014 financial statements, the Company determined that amounts presented under depreciation and amortization by operating segment for 2014 and 2013 did not include allocations for corporate depreciation and amortization. The depreciation and amortization for the operating segments was restated by allocating total Corporate depreciation and amortization of $34.5 and $31.9 in fiscal 2014 and 2013, respectively, from Corporate to the three operating segments, consistent with the allocation method used in fiscal 2015. There was no effect on total depreciation and amortization or segment operating income as previously presented. |
SEGMENT REPORTING - Geographic
SEGMENT REPORTING - Geographic Data (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | $ 4,395.2 | $ 4,551.6 | $ 4,649.1 | |
Long-lived assets | 3,944.5 | 3,720.2 | 4,000.5 | |
Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | [1] | 1,696 | 1,703.8 | 1,914.8 |
EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | [2] | 2,166 | 2,302.9 | 2,188.9 |
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | [3] | 533.2 | 544.9 | 545.4 |
U.S. | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | 1,343.1 | 1,338.6 | 1,537.4 | |
Long-lived assets | 2,713.9 | 2,921.2 | 2,924.3 | |
Switzerland | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | [4] | 998.8 | 1,041.5 | 1,023.1 |
Switzerland | Travel Retail and Export | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | [4] | 482.9 | 497.8 | 500.6 |
Switzerland | U. K. | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | [4] | 402.5 | 415.1 | 388.1 |
Switzerland | Netherlands | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | [4] | 83.2 | 93.8 | 98.1 |
Switzerland | Domestic | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | [4] | 30.2 | 34.8 | 36.3 |
All Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenues | 2,053.3 | 2,171.5 | 2,088.6 | |
Long-lived assets | $ 1,230.6 | $ 799 | $ 1,076.2 | |
[1] | includes North & South America | |||
[2] | includes Europe, Middle East and Africa | |||
[3] | includes Asia and Australia | |||
[4] | The Company’s subsidiaries in Switzerland generate revenues from sales in the United Kingdom (“U.K.”), the Netherlands and domestic sales in Switzerland as well as the Travel Retail and Export business (which sells to a large number of travel outlets, including duty free shops, airlines and other tax-free zones in several countries), as specified separately in the table above. |
SEGMENT REPORTING - Reportable
SEGMENT REPORTING - Reportable Segments, Product Categories Exceeding 5% Of Consolidated Net Revenues (Details) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Geographic Concentration Risk | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 10.00% | ||
Geographic Concentration Risk | Long-lived Assets | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 10.00% | ||
Customer Concentration Risk | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 10.00% | 10.00% | 10.00% |
Product Concentration Risk | Operating Segments | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 100.00% | 100.00% | 100.00% |
Product Concentration Risk | Operating Segments | Sales Revenue | Fragrances | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 49.60% | 51.00% | 49.70% |
Product Concentration Risk | Operating Segments | Sales Revenue | Fragrances | Designer | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 36.90% | 37.40% | 35.80% |
Product Concentration Risk | Operating Segments | Sales Revenue | Fragrances | Lifestyle | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 7.40% | 7.60% | 6.90% |
Product Concentration Risk | Operating Segments | Sales Revenue | Fragrances | Celebrity | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 5.30% | 6.00% | 7.00% |
Product Concentration Risk | Operating Segments | Sales Revenue | Color Cosmetics | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 32.90% | 30.00% | 31.60% |
Product Concentration Risk | Operating Segments | Sales Revenue | Color Cosmetics | Nail Care | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 14.90% | 14.00% | 16.10% |
Product Concentration Risk | Operating Segments | Sales Revenue | Color Cosmetics | Other Color Cosmetics | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 18.00% | 16.00% | 15.50% |
Product Concentration Risk | Operating Segments | Sales Revenue | Skin & Body Care | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 17.50% | 19.00% | 18.70% |
Product Concentration Risk | Operating Segments | Sales Revenue | Skin & Body Care | Body Care | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 10.90% | 12.60% | 12.30% |
Product Concentration Risk | Operating Segments | Sales Revenue | Skin & Body Care | Skin Care | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 6.60% | 6.40% | 6.40% |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) £ in Millions, shares in Millions, $ in Millions | Apr. 01, 2015USD ($)shares | Jan. 02, 2014USD ($) | Jan. 02, 2014GBP (£) | Jul. 02, 2013USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014GBP (£) | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($)Acquisition | Jun. 30, 2014USD ($)Acquisition | Jun. 30, 2013USD ($) | Jan. 02, 2014GBP (£) |
Business Acquisition [Line Items] | |||||||||||
Number of businesses acquired during period | Acquisition | 1 | 2 | |||||||||
Goodwill | $ 1,530.7 | $ 1,530.7 | $ 1,342.8 | ||||||||
Acquisition-related costs | 34.1 | 0.7 | $ 8.9 | ||||||||
Net revenues | 4,395.2 | 4,551.6 | 4,649.1 | ||||||||
Net loss | 259.4 | (64.2) | 201.9 | ||||||||
Color Cosmetics | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | 677.3 | 677.3 | 538.2 | ||||||||
Skin & Body Care | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | 132.6 | 132.6 | 52.7 | ||||||||
Fragrances | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 720.8 | $ 720.8 | 751.9 | ||||||||
Bourjois | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price | $ 376.8 | ||||||||||
Percentage of shares acquired | 100.00% | 100.00% | 100.00% | ||||||||
Goodwill | $ 194.8 | ||||||||||
Net revenues from date of acquisition | $ 46.1 | ||||||||||
Net loss from date of acquisition | $ (16.1) | ||||||||||
Acquisition-related costs | $ 3.9 | ||||||||||
Bourjois | Acquisition-related costs | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquisition-related costs | 3.9 | ||||||||||
Bourjois | Color Cosmetics | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | 148.7 | ||||||||||
Bourjois | Skin & Body Care | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | 11.1 | ||||||||||
Bourjois | Fragrances | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 35 | ||||||||||
Bourjois | Common Class A | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of shares issued | shares | 15.5 | ||||||||||
Bourjois | Common Class A | Common Stock | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of shares issued | shares | 15.5 | ||||||||||
Fair Value of Coty Inc. Class A Stock | $ 376.8 | ||||||||||
Fair value of shares of Class A Common Stock | $ 376.8 | ||||||||||
StarAsia | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price | $ 23.5 | ||||||||||
Percentage of shares acquired | 100.00% | ||||||||||
Goodwill | $ 11.5 | ||||||||||
Acquisition-related costs | 0.4 | ||||||||||
Net revenues | 24.6 | ||||||||||
Net loss | (4.4) | ||||||||||
StarAsia | Selling, general and administrative | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquisition-related costs | $ 0 | 0.4 | $ 1.1 | ||||||||
StarAsia | Color Cosmetics | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | 0.7 | ||||||||||
StarAsia | Skin & Body Care | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | 7 | ||||||||||
StarAsia | Fragrances | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 3.8 | ||||||||||
Lena White Limited | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price | $ 11.6 | £ 7 | |||||||||
Percentage of shares acquired | 100.00% | 100.00% | |||||||||
Goodwill | $ 2 | ||||||||||
Acquisition-related costs | 0.1 | ||||||||||
Escrow deposit | 0.8 | 0.5 | |||||||||
Contingent consideration payable | $ 1.1 | £ 0.7 | |||||||||
Contingent consideration payable period | 3 years | 3 years | |||||||||
Contingent consideration, range of outcomes, low | £ | £ 0 | ||||||||||
Contingent consideration, range of outcomes, high | $ 0.9 | £ 0.6 | |||||||||
Amount paid out for a portion of the contingent consideration | $ (0.8) | £ (0.5) | |||||||||
Net revenues | 7.8 | ||||||||||
Net loss | (1.7) | ||||||||||
Lena White Limited | Selling, general and administrative | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquisition-related costs | $ 0.1 | ||||||||||
Adjustment to contingent consideration | $ (0.6) | £ 0.4 | |||||||||
Lena White Limited | Color Cosmetics | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price | 11.6 | ||||||||||
Goodwill | $ 2 |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of Consideration (Details) £ in Millions, $ in Millions | Apr. 01, 2015USD ($) | Jan. 02, 2014USD ($) | Jan. 02, 2014GBP (£) | Jul. 02, 2013USD ($) |
Bourjois | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 376.8 | |||
Purchase price | 376.8 | |||
Bourjois | Common Stock | Common Class A | ||||
Business Acquisition [Line Items] | ||||
Fair Value of Coty Inc. Class A Stock | $ 376.8 | |||
Lena White Limited | ||||
Business Acquisition [Line Items] | ||||
Cash paid | $ 8.3 | |||
Cash received from seller for net working capital adjustment | 0.3 | |||
Noncash consideration for pre-acquisition trade receivables | 1.9 | |||
Contingent consideration payable | 1.1 | £ 0.7 | ||
Purchase price | $ 11.6 | £ 7 | ||
StarAsia | ||||
Business Acquisition [Line Items] | ||||
Cash paid | $ 25 | |||
Cash received from seller for net working capital adjustment | (3.5) | |||
Noncash consideration for pre-acquisition trade receivables | 2 | |||
Purchase price | $ 23.5 |
BUSINESS COMBINATIONS - Purchas
BUSINESS COMBINATIONS - Purchase Price Allocation (Details) - USD ($) $ in Millions | Apr. 01, 2015 | Jan. 02, 2014 | Jul. 02, 2013 | Jun. 30, 2015 | Jun. 30, 2014 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,530.7 | $ 1,342.8 | |||
Bourjois | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 12.3 | ||||
Inventories | 31.5 | ||||
Property and equipment | 9 | ||||
Goodwill | 194.8 | ||||
Trademark | 112 | ||||
Net working capital | 10.7 | ||||
Net other assets/(liabilities) | (3.9) | ||||
Deferred tax liability, net | (56.7) | ||||
Total identifiable net assets: | 376.8 | ||||
Bourjois | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangibles | $ 66 | ||||
Bourjois | Customer relationships | Minimum | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 13 years | ||||
Bourjois | Customer relationships | Maximum | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 14 years | ||||
Bourjois | Product Formulations | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangibles | $ 1.1 | ||||
Acquired finite-lived intangible assets, weighted average useful life | 3 years | ||||
StarAsia | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 11.5 | ||||
Finite-lived intangibles | 7.4 | ||||
Other net assets | 4.6 | ||||
Total identifiable net assets: | $ 23.5 | ||||
StarAsia | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 12 years | ||||
Lena White Limited | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 2 | ||||
Finite-lived intangibles | 4.2 | ||||
Other net assets | 5.4 | ||||
Total identifiable net assets: | $ 11.6 | ||||
Lena White Limited | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 7 years |
BUSINESS COMBINATIONS - Unaudit
BUSINESS COMBINATIONS - Unaudited Pro Forma Information (Details) - Bourjois - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Business Acquisition [Line Items] | ||
Pro forma Net revenues | $ 4,553.2 | $ 4,788.7 |
Pro forma Operating income | 420.2 | 17.4 |
Pro forma Net income (loss) | 275.3 | (77) |
Pro forma Net income (loss) attributable to Coty Inc. | $ 248.4 | $ (110.2) |
Pro forma Earnings per share, Basic | $ 0.68 | $ (0.28) |
Pro forma Earnings per share, Diluted | $ 0.66 | $ (0.28) |
ACQUISITION-RELATED COSTS (Deta
ACQUISITION-RELATED COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Business Acquisition [Line Items] | |||
Transaction-related costs | $ 34.1 | $ 0.7 | $ 8.9 |
Bourjois | |||
Business Acquisition [Line Items] | |||
Transaction-related costs | 3.9 | ||
Planned Merger with Procter and Gamble Fine Fragrance, Color Cosmetics, and Hair Color Businesses | |||
Business Acquisition [Line Items] | |||
Transaction-related costs | $ 30.2 | ||
StarAsia | |||
Business Acquisition [Line Items] | |||
Transaction-related costs | 0.4 | ||
Lena White Limited | |||
Business Acquisition [Line Items] | |||
Transaction-related costs | $ 0.1 | ||
TJoy Brand | |||
Business Acquisition [Line Items] | |||
Transaction-related costs | $ 6.7 |
JOINT VENTURE ARRANGEMENTS (Det
JOINT VENTURE ARRANGEMENTS (Details) BRL in Millions, AED in Millions, $ in Millions | Jan. 02, 2014USD ($)third_party_partnerthird_party | Jan. 02, 2014AEDthird_party_partnerthird_party | Apr. 04, 2013USD ($) | Apr. 04, 2013BRL | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2014AED | Jan. 01, 2014 |
Schedule of Equity Method Investments [Line Items] | ||||||||
Number of third parties | third_party_partner | 2 | 2 | ||||||
Repurchase requirement of partnership interest | third_party | 1 | 1 | ||||||
Other Noncurrent Liabilities | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Proceeds from third party funding of interest in joint venture | $ 2.2 | BRL 4.9 | ||||||
Commitment to Lend | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Guaranteed bank financing | $ 4.9 | AED 18 | ||||||
Primary Beneficiary | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 49.00% | 49.00% | ||||||
Parent | Primary Beneficiary | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Payments to acquire interest in joint venture | $ 4.9 | AED 18 | ||||||
Affiliate | Third Party | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Payments to acquire interest in joint venture | $ 1.6 | AED 6 | ||||||
U.A.E. JV | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Outstanding shares of the JV owned by third party | 25.00% | |||||||
Liability for mandatorily redeemable financial instrument | $ 6.1 | 3.7 | ||||||
U.A.E. JV | Other Noncurrent Liabilities | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Liability for mandatorily redeemable financial instrument | 5.1 | 3.7 | ||||||
U.A.E. JV | Accrued Expenses and Other Current Liabilities | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Liability for mandatorily redeemable financial instrument | 1 | 0 | ||||||
U.A.E. JV | Primary Beneficiary | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Joint venture total assets | 20.1 | 18 | ||||||
Joint venture total liabilities | 10.4 | $ 10.5 | ||||||
Brazilian JV | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Outstanding shares of the JV owned by third party | 49.00% | 49.00% | ||||||
Brazilian JV | Other Noncurrent Liabilities | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Liability for mandatorily redeemable financial instrument | $ 0 | $ 1.8 |
RESTRUCTURING COSTS - Restructu
RESTRUCTURING COSTS - Restructuring Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 75.4 | $ 37.3 | $ 29.4 |
Organizational Redesign | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 58.6 | 13 | 0 |
Acquisition Integration Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 15.3 | 0 | 0 |
Productivity Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 2.1 | 14.2 | 25.3 |
China Optimization | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (0.6) | 9.8 | 0 |
Other restructuring programs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 0 | $ 0.3 | $ 4.1 |
RESTRUCTURING COSTS - Related l
RESTRUCTURING COSTS - Related liability balance and activity for the restructuring costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2015 | ||
Organizational Redesign | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 11 | |
Restructuring charges | 65.8 | |
Payments | (32.5) | |
Changes in estimates | (7.2) | |
Effect of exchange rates | (4.8) | |
Payables | (0.2) | |
Ending balance | 32.1 | |
Organizational Redesign | Severance and Employee Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 9.1 | |
Restructuring charges | 63.3 | |
Payments | (28.7) | |
Changes in estimates | (7.2) | |
Effect of exchange rates | (4.5) | |
Payables | 0 | |
Ending balance | 32 | |
Organizational Redesign | Other Exit Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 1.9 | |
Restructuring charges | 2.5 | |
Payments | (3.8) | |
Changes in estimates | 0 | |
Effect of exchange rates | (0.3) | |
Payables | (0.2) | |
Ending balance | 0.1 | |
China Optimization | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 9.8 | |
Restructuring charges | 0 | |
Payments | (8.7) | |
Changes in estimates | (0.6) | |
Effect of exchange rates | (0.1) | |
Ending balance | 0.4 | |
China Optimization | Severance and Employee Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 9.6 | |
Restructuring charges | 0 | |
Payments | (8.7) | |
Changes in estimates | (0.6) | |
Effect of exchange rates | 0.1 | |
Ending balance | 0.4 | |
China Optimization | Other Exit Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0.2 | |
Restructuring charges | 0 | |
Payments | 0 | |
Changes in estimates | 0 | |
Effect of exchange rates | (0.2) | |
Ending balance | 0 | |
Productivity Program | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 16.2 | |
Restructuring charges | 3.8 | |
Payments | (10.4) | |
Changes in estimates | [1] | (1.7) |
Effect of exchange rates | (0.9) | |
Ending balance | 7 | |
Productivity Program | Severance and Employee Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 15.8 | |
Restructuring charges | 2.2 | |
Payments | (8.8) | |
Changes in estimates | [1] | (1.7) |
Effect of exchange rates | (0.5) | |
Ending balance | 7 | |
Productivity Program | Third-Party Contract Terminations | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0.2 | |
Restructuring charges | 0 | |
Payments | 0 | |
Changes in estimates | [1] | 0 |
Effect of exchange rates | (0.2) | |
Ending balance | 0 | |
Productivity Program | Other Exit Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0.2 | |
Restructuring charges | 1.6 | |
Payments | (1.6) | |
Changes in estimates | [1] | 0 |
Effect of exchange rates | (0.2) | |
Ending balance | $ 0 | |
[1] | The decrease in severance and employee benefits is primarily attributable to employees who have voluntarily left positions that were later eliminated. |
RESTRUCTURING COSTS - Narrative
RESTRUCTURING COSTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 75.4 | $ 37.3 | $ 29.4 | ||
Bourjois | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 15.3 | ||||
Restructuring costs recorded | 15.3 | ||||
Bourjois | Scenario, Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Payments | $ 5.2 | $ 10.1 | |||
Organizational Redesign | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 58.6 | 13 | 0 | ||
Restructuring reserve | 32.1 | 11 | |||
2016 cash expenditures | 27.1 | ||||
2017 cash expenditures | 4.5 | ||||
2018 cash expenditures | 0.5 | ||||
Payments | 32.5 | ||||
Organizational Redesign | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expected cost | 145 | ||||
Organizational Redesign | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expected cost | 180 | ||||
Organizational Redesign | Corporate Segment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 71.6 | ||||
China Optimization | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | (0.6) | 9.8 | 0 | ||
Restructuring reserve | 0.4 | 9.8 | |||
Restructuring costs recorded | 9.2 | ||||
Payments | 8.7 | ||||
China Optimization | Scenario, Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Payments | $ 0.4 | ||||
Productivity Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expected cost | 70 | ||||
Restructuring costs | 2.1 | 14.2 | 25.3 | ||
Restructuring reserve | 7 | 16.2 | |||
2016 cash expenditures | 6.7 | ||||
2017 cash expenditures | 0.3 | ||||
Payments | 10.4 | ||||
Restructuring costs incurred | 41.6 | ||||
Other Exit Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 0 | $ 0.3 | $ 4.1 |
TRADE RECEIVABLES - FACTORING (
TRADE RECEIVABLES - FACTORING (Details) - Factored Receivable - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables, factored | $ 379.8 | $ 401.7 | |
Selling, general and administrative | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables, factoring fees | 0.6 | 0.8 | $ 0.9 |
Trade Receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables, factored, amounts due from factors | $ 16.6 | $ 5.6 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 160.9 | $ 189.3 |
Work-in-process | 8.4 | 12.3 |
Finished goods | 388.5 | 415.8 |
Total inventories | $ 557.8 | $ 617.4 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2014USD ($) | Oct. 31, 2014CNY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 1,345.6 | $ 1,386.8 | |||
Accumulated depreciation and amortization | (845.4) | (846.5) | |||
Property and equipment, net | 500.2 | 540.3 | |||
Asset impairment charges | 0 | 316.9 | $ 1.5 | ||
China Optimization | |||||
Property, Plant and Equipment [Line Items] | |||||
Sales price of TJOY assets | $ 86 | ¥ 14.1 | |||
Cost of Sales and Selling, General and Administrative Expenses | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization | 156.2 | 165 | 169.4 | ||
Gain on Sale of Asset | China Optimization | |||||
Property, Plant and Equipment [Line Items] | |||||
Gain recognized on sale of assets | $ 7.2 | ||||
Land, buildings and leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 232.4 | 230.7 | |||
Machinery and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 471.3 | 492.8 | |||
Marketing furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 267.7 | 278.1 | |||
Computer equipment and software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 325.5 | 339.8 | |||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 48.7 | 45.4 | |||
Property and Equipment, no longer in use | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, net | 71.2 | 175.2 | |||
Manufacturing Facility | |||||
Property, Plant and Equipment [Line Items] | |||||
Asset impairment charges | $ 0 | $ 6 | $ 1.5 |
GOODWILL AND OTHER INTANGIBLE77
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | May. 01, 2013 | |
Business Acquisition [Line Items] | ||||
Asset impairment charges | $ 0 | $ 316.9 | $ 1.5 | |
Accumulated impairment | $ 0 | 54.5 | ||
Weighted-average remaining lives | 9 years 7 months 6 days | |||
Amortization expense | $ 74.7 | 85.7 | 90.2 | |
Amortization expense | 90.2 | |||
Trademarks | ||||
Business Acquisition [Line Items] | ||||
Accumulated impairment | $ 0 | 21 | ||
Weighted-average remaining lives | 12 years 4 months 24 days | |||
Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Accumulated impairment | $ 0 | 33.5 | ||
Weighted-average remaining lives | 8 years 9 months 18 days | |||
Minimum | ||||
Business Acquisition [Line Items] | ||||
Renewal term | 3 years | |||
Minimum | Trademarks | ||||
Business Acquisition [Line Items] | ||||
Weighted-average remaining lives | 5 years | |||
Minimum | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Weighted-average remaining lives | 5 years | |||
Maximum | ||||
Business Acquisition [Line Items] | ||||
Renewal term | 10 years | |||
Maximum | Trademarks | ||||
Business Acquisition [Line Items] | ||||
Weighted-average remaining lives | 20 years | |||
Maximum | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Weighted-average remaining lives | 20 years | |||
Manufacturing Facility | ||||
Business Acquisition [Line Items] | ||||
Asset impairment charges | $ 0 | 6 | 1.5 | |
Skin & Body Care | ||||
Business Acquisition [Line Items] | ||||
Asset impairment charges | 256.4 | $ 384.4 | ||
Percentage of fair value in excess of carrying amount | 43.40% | |||
China | ||||
Business Acquisition [Line Items] | ||||
Carrying value of long lived assets | 69.1 | |||
China | Manufacturing Facility | ||||
Business Acquisition [Line Items] | ||||
Asset impairment charges | 6 | |||
China | Skin & Body Care | ||||
Business Acquisition [Line Items] | ||||
Impairment charges | 256.4 | |||
Impairment of long-lived assets | $ 60.5 |
GOODWILL AND OTHER INTANGIBLE78
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Goodwill And Other Intangible Assets, Net (Details) - USD ($) $ in Millions | Jul. 09, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Goodwill [Roll Forward] | |||||||||
Gross beginning balance | $ 1,983.6 | $ 1,983.6 | |||||||
Accumulated impairments | (640.8) | $ (640.8) | [1] | ||||||
Goodwill | 1,342.8 | 1,342.8 | |||||||
Acquisition contingent payment | [2] | 30 | |||||||
Acquisitions | [3] | 194.8 | |||||||
Foreign currency translation | (36.9) | ||||||||
Reclassification | [4] | 69.1 | |||||||
Gross beginning balance | 2,171.5 | 1,983.6 | |||||||
Accumulated impairments | (640.8) | (640.8) | [1] | ||||||
Goodwill | 1,530.7 | 1,342.8 | |||||||
Asset impairment charges | 0 | 316.9 | $ 1.5 | ||||||
Indefinite-lived other intangible assets | [5] | 1,274 | 1,167.8 | ||||||
Finite-lived other intangible assets, net | [6] | 639.6 | 669.3 | ||||||
Total Other intangible assets, net | 1,913.6 | 1,837.1 | |||||||
Accumulated impairment, indefinite-lived assets | 188.6 | 186.6 | |||||||
Accumulated impairment, finite-lived assets | 0 | 54.5 | |||||||
Customer relationships | |||||||||
Goodwill [Roll Forward] | |||||||||
Finite-lived other intangible assets, net | 326.3 | 307.9 | |||||||
Accumulated impairment, finite-lived assets | 0 | 33.5 | |||||||
Trademarks | |||||||||
Goodwill [Roll Forward] | |||||||||
Finite-lived other intangible assets, net | 10.9 | 14.7 | |||||||
Accumulated impairment, finite-lived assets | $ 0 | 21 | |||||||
Unilever Cosmetics International | |||||||||
Goodwill [Roll Forward] | |||||||||
Contractual contingent consideration period | 10 years | ||||||||
Contingent consideration, range of outcomes, high | $ 30 | ||||||||
Contingent consideration paid | $ 30 | $ 30 | 30 | ||||||
Star Asia and Lena White | |||||||||
Goodwill [Roll Forward] | |||||||||
Percentage of shares acquired | 100.00% | ||||||||
Fragrances | |||||||||
Goodwill [Roll Forward] | |||||||||
Gross beginning balance | 751.9 | $ 751.9 | |||||||
Accumulated impairments | 0 | 0 | [1] | ||||||
Goodwill | 751.9 | 751.9 | |||||||
Acquisition contingent payment | [2] | 30 | |||||||
Acquisitions | [3] | 35 | |||||||
Foreign currency translation | (27) | ||||||||
Reclassification | [4] | (69.1) | |||||||
Gross beginning balance | 720.8 | 751.9 | |||||||
Accumulated impairments | 0 | 0 | [1] | ||||||
Goodwill | 720.8 | 751.9 | |||||||
Indefinite-lived other intangible assets | 20.7 | 25.2 | |||||||
Color Cosmetics | |||||||||
Goodwill [Roll Forward] | |||||||||
Gross beginning balance | 538.2 | 538.2 | |||||||
Accumulated impairments | 0 | 0 | [1] | ||||||
Goodwill | 538.2 | 538.2 | |||||||
Acquisition contingent payment | [2] | 0 | |||||||
Acquisitions | [3] | 148.7 | |||||||
Foreign currency translation | (9.6) | ||||||||
Reclassification | [4] | 0 | |||||||
Gross beginning balance | 677.3 | 538.2 | |||||||
Accumulated impairments | 0 | 0 | [1] | ||||||
Goodwill | 677.3 | 538.2 | |||||||
Indefinite-lived other intangible assets | 988 | 877.3 | |||||||
Skin & Body Care | |||||||||
Goodwill [Roll Forward] | |||||||||
Gross beginning balance | 693.5 | 693.5 | |||||||
Accumulated impairments | (640.8) | (640.8) | [1] | ||||||
Goodwill | $ 52.7 | 52.7 | |||||||
Acquisition contingent payment | [2] | 0 | |||||||
Acquisitions | [3] | 11.1 | |||||||
Foreign currency translation | (0.3) | ||||||||
Reclassification | [4] | 0 | |||||||
Gross beginning balance | 773.4 | 693.5 | |||||||
Accumulated impairments | (640.8) | (640.8) | [1] | ||||||
Goodwill | 132.6 | 52.7 | |||||||
Asset impairment charges | 256.4 | $ 384.4 | |||||||
Indefinite-lived other intangible assets | $ 265.3 | $ 265.3 | |||||||
Transfer From Fragrance To Skin And Body Care | |||||||||
Goodwill [Roll Forward] | |||||||||
Reclassification | $ 69.1 | ||||||||
[1] | Prior to June 30, 2013, the Company recorded pre-tax non-cash impairment in the Skin & Body Care reporting unit of $384.4. In fiscal 2014, the Company recorded pre-tax non-cash impairment in the Skin & Body Care reporting unit of $256.4. | ||||||||
[2] | Pursuant to the Company's fiscal 2006 acquisition of Unilever Cosmetics International, the Company was contractually obligated to make annual contingent purchase price consideration payments for a 10-year period following the acquisition to the seller. Payments are based on contractually agreed upon sales targets and can range up to $30.0 per year. The Company paid $30.0 during the third quarter of fiscal 2015, 2014 and 2013 for such contingent consideration. The March 2015 payment was the final contingent purchase price payment due under the contract. | ||||||||
[3] | During the year ended June 30, 2015, the Company acquired 100% of the assets of Bourjois. This transaction was accounted for as business combinations (See Note 4). | ||||||||
[4] | As a result of the Company’s Organizational Redesign program announced on July 9, 2014, a certain brand and its attributable goodwill of $69.1 was reclassified from the Fragrances segment to the Skin & Body Care segment. The Company calculated the fair value of the brand relative to the reporting unit using the same methodology utilized in the annual impairment analysis. | ||||||||
[5] | Net of accumulated impairments of $188.6 as of June 30, 2015 and June 30, 2014. | ||||||||
[6] | Net of accumulated impairments of $21.0 and $33.5 related to the TJoy trademark and customer relationships, respectively, recorded in fiscal 2014. |
GOODWILL AND OTHER INTANGIBLE79
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Changes in the carrying amount of indefinite-lived other intangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 01, 2015 | |||
Indefinite-lived Intangible Assets [Roll Forward] | ||||||
Beginning balance | [1] | $ 1,167.8 | ||||
Acquisitions | [2] | 112 | ||||
Foreign currency translation | (5.8) | |||||
Gross balance | 1,471.8 | $ 1,365.6 | ||||
Accumulated impairments | (197.8) | (197.8) | [3] | $ (197.8) | ||
Ending balance | [1] | $ 1,274 | 1,167.8 | |||
Bourjois | ||||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||||
Percentage of shares acquired | 100.00% | 100.00% | ||||
Fragrances | ||||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||||
Beginning balance | $ 25.2 | |||||
Acquisitions | [2] | 0 | ||||
Foreign currency translation | (4.5) | |||||
Gross balance | 20.7 | 25.2 | ||||
Accumulated impairments | 0 | 0 | [3] | |||
Ending balance | 20.7 | 25.2 | ||||
Color Cosmetics | ||||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||||
Beginning balance | 877.3 | |||||
Acquisitions | [2] | 112 | ||||
Foreign currency translation | (1.3) | |||||
Gross balance | 997.2 | 886.5 | ||||
Accumulated impairments | (9.2) | (9.2) | [3] | |||
Ending balance | 988 | 877.3 | ||||
Skin & Body Care | ||||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||||
Beginning balance | 265.3 | |||||
Acquisitions | [2] | 0 | ||||
Foreign currency translation | 0 | |||||
Gross balance | 453.9 | 453.9 | ||||
Accumulated impairments | (188.6) | (188.6) | [3] | |||
Ending balance | $ 265.3 | $ 265.3 | ||||
[1] | Net of accumulated impairments of $188.6 as of June 30, 2015 and June 30, 2014. | |||||
[2] | During the year ended June 30, 2015, the Company acquired 100% of the assets of Bourjois. This transaction was accounted for as business combinations (See Note 4). | |||||
[3] | Impairment charges of $197.8 were recorded prior to June 30, 2013. |
GOODWILL AND OTHER INTANGIBLE80
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 1,511.6 | $ 1,503.4 | |
Accumulated Amortization | (872) | (779.6) | |
Accumulated impairment | 0 | (54.5) | |
Net | [1] | 639.6 | 669.3 |
Licensing agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 800.7 | 835 | |
Accumulated Amortization | (501.1) | (490.8) | |
Accumulated impairment | 0 | 0 | |
Net | 299.6 | 344.2 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 559.1 | 510.8 | |
Accumulated Amortization | (232.8) | (169.4) | |
Accumulated impairment | 0 | (33.5) | |
Net | 326.3 | 307.9 | |
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 119.1 | 125.8 | |
Accumulated Amortization | (108.2) | (90.1) | |
Accumulated impairment | 0 | (21) | |
Net | 10.9 | 14.7 | |
Product Formulations | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 32.7 | 31.8 | |
Accumulated Amortization | (29.9) | (29.3) | |
Accumulated impairment | 0 | 0 | |
Net | $ 2.8 | $ 2.5 | |
[1] | Net of accumulated impairments of $21.0 and $33.5 related to the TJoy trademark and customer relationships, respectively, recorded in fiscal 2014. |
GOODWILL AND OTHER INTANGIBLE81
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Intangible assets subject to amortization (Details) | 12 Months Ended |
Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 9 years 7 months 6 days |
Licensing agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 10 years 4 months 24 days |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 8 years 9 months 18 days |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 12 years 4 months 24 days |
Product Formulations | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 2 years 7 months 6 days |
GOODWILL AND OTHER INTANGIBLE82
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Amortization expense (Details) $ in Millions | Jun. 30, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 78.6 |
2,017 | 77.8 |
2,018 | 77.3 |
2,019 | 76.4 |
2,020 | $ 75 |
ACCRUED EXPENSES AND OTHER CU83
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Payables and Accruals [Abstract] | ||
Advertising, marketing and licensing | $ 179.1 | $ 194.8 |
Customer returns, discounts, allowances and bonuses | 168.2 | 196.4 |
Other compensation and related benefits | 132 | 129.3 |
VAT, sales and other non-income taxes | 46.7 | 41.1 |
Restructuring costs | 44.3 | 32.9 |
Acquisition-related costs | 31.3 | 0 |
Payroll and payroll related taxes | 21.2 | 23.2 |
Share-based compensation liability | 13.9 | 0 |
Unfavorable lease contracts | 7.1 | 18.6 |
Derivative liabilities | 6.3 | 11.5 |
Auditing and consulting fees | 5.5 | 8.7 |
Deferred income | 4.1 | 8.3 |
Interest | 3.5 | 3.9 |
Rent | 3.1 | 3.7 |
Other | 52.9 | 51.2 |
Total accrued expenses and other current liabilities | $ 719.2 | $ 723.6 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Mar. 24, 2015USD ($) | Sep. 29, 2014USD ($) | Apr. 02, 2013USD ($) | Apr. 30, 2013USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Mar. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015USD ($) | Jun. 25, 2014USD ($) | Jun. 16, 2010USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Short-term debt | $ 22,100,000 | $ 18,800,000 | |||||||||||
Weighted-average interest rate (as a percent) | 7.10% | 6.70% | |||||||||||
Amount of debt | $ 2,611,500,000 | ||||||||||||
Deferred financing fees write-off | 900,000 | $ 0 | $ 2,600,000 | ||||||||||
Loss on early extinguishment of debt | 88,800,000 | $ 0 | $ 0 | ||||||||||
Senior Notes: | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment amount | $ 500,000,000 | ||||||||||||
Deferred financing fees write-off | 4,200,000 | ||||||||||||
Accrued interest | 8,000,000 | ||||||||||||
Make-whole amount | $ 84,600,000 | ||||||||||||
Loss on early extinguishment of debt | 88,800,000 | ||||||||||||
Coty Inc. Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment amount | $ 200,000,000 | ||||||||||||
Deferred financing fees write-off | 900,000 | ||||||||||||
Coty Inc. Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Consolidated leverage ratio | 4.5 | ||||||||||||
Coty Inc. Credit Facility | Scenario, Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Consolidated leverage ratio | 3.50 | 3.75 | 3.95 | ||||||||||
Coty Inc. Credit Facility | Other Noncurrent Assets | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Deferred finance fees | $ 3,100,000 | $ 3,100,000 | |||||||||||
Credit Agreement due April 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amount of debt | $ 800,000,000 | ||||||||||||
Credit Agreement due April 2018 | Consolidated Leverage Ratio | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Spread on variable rate (as a percent) | 1.63% | ||||||||||||
Credit Agreement due April 2018 | Minimum | Consolidated Leverage Ratio | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Spread on variable rate (as a percent) | 0.125% | ||||||||||||
Credit Agreement due April 2018 | Maximum | Consolidated Leverage Ratio | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Spread on variable rate (as a percent) | 1.875% | ||||||||||||
Senior Notes: | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 500,000,000 | ||||||||||||
Credit Agreement Due September 2015 | Prepaid Expenses and Other Current Assets | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Deferred financing fees | $ 1,900,000 | ||||||||||||
Credit Agreement Due September 2015 | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Spread on variable rate (as a percent) | 0.00% | ||||||||||||
Credit Agreement Due September 2015 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Spread on variable rate (as a percent) | 1.75% | ||||||||||||
Incremental Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Weighted average interest rate (as a percent) | 1.70% | 1.60% | 1.90% | ||||||||||
Incremental Term Loan | Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Deferred finance fees | $ 2,200,000 | ||||||||||||
Long-term debt | $ 625,000,000 | ||||||||||||
2013 Revolving Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Consolidated leverage ratio | 3.95 | ||||||||||||
Weighted average interest rate (as a percent) | 1.40% | 1.30% | 1.60% | ||||||||||
Interest coverage ratio | 3 | ||||||||||||
Interest coverage ratio following an acquisition | 4.5 | ||||||||||||
5.12% Series A notes due June 2017 | Senior Notes: | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 100,000,000 | ||||||||||||
Stated interest rate (as a percent) | 5.12% | 5.12% | |||||||||||
5.67% Series B notes due June 2020 | Senior Notes: | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 225,000,000 | ||||||||||||
Stated interest rate (as a percent) | 5.67% | 5.67% | |||||||||||
5.82% Series C notes due June 2022 | Senior Notes: | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 175,000,000 | ||||||||||||
Stated interest rate (as a percent) | 5.82% | 5.82% | |||||||||||
Short-term Lines of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Available lines of credit | $ 127,700,000 | $ 141,400,000 | |||||||||||
Short-term debt | $ 22,100,000 | $ 18,800,000 | |||||||||||
Short-term Lines of Credit | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate spread (as a percent) | 0.74% | 1.30% | |||||||||||
Short-term Lines of Credit | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate spread (as a percent) | 18.00% | 13.50% | |||||||||||
Revolving Credit Facility, Swing Line Loan | Line of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Available lines of credit | $ 80,000,000 | ||||||||||||
Letter of credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Undrawn letters of credit | $ 4,100,000 | $ 3,600,000 | |||||||||||
Revolving Loan Facility due April 2018 | 2013 Term Loan | Line of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Available lines of credit | $ 1,250,000,000 | ||||||||||||
Quarterly repayments 2016 (as a percent) | 17500000000.00% | ||||||||||||
Quarterly repayments 2017 (as a percent) | 87500000000.00% | ||||||||||||
2013 Revolving Facility | Line of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Available lines of credit | $ 1,250,000,000 | ||||||||||||
Undrawn letters of credit | $ 1,113,500,000 | ||||||||||||
Deferred financing fees write-off | $ 2,600,000 | ||||||||||||
2013 Revolving Facility | Line of Credit | Minimum | Consolidated Leverage Ratio | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment fee (as a percent) | 0.15% | ||||||||||||
2013 Revolving Facility | Line of Credit | Maximum | Consolidated Leverage Ratio | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commitment fee (as a percent) | 0.25% | ||||||||||||
2013 Revolving Facility | Term Loan | Minimum | Consolidated Leverage Ratio | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Spread on variable rate (as a percent) | 0.00% | ||||||||||||
2013 Revolving Facility | Term Loan | Maximum | Consolidated Leverage Ratio | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Spread on variable rate (as a percent) | 1.75% | ||||||||||||
2013 Revolving Facility | Incremental Term Loan | Minimum | Consolidated Leverage Ratio | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Spread on variable rate (as a percent) | 0.00% | ||||||||||||
2013 Revolving Facility | Incremental Term Loan | Maximum | Consolidated Leverage Ratio | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Spread on variable rate (as a percent) | 1.75% | ||||||||||||
Term Loan | Credit Agreement Due September 2015 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Available lines of credit | $ 600,000,000 | ||||||||||||
Term Loan | 2013 Term Loan due March 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Remaining amount outstanding of term loan | $ 1,050,000,000 | ||||||||||||
Amount of debt | $ 1,050,000,000 | $ 1,250,000,000 |
LEASE COMMITMENTS - Narrative (
LEASE COMMITMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
New York | Selling, general and administrative | |||
Operating Leased Assets [Line Items] | |||
Provision for lease losses | $ (0.7) | $ 21.4 | $ 0 |
Duplicative rent expense | 0 | 5 | 5.3 |
Accelerated depreciation | $ 0 | $ 4.1 | $ 16.5 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Operating leases renewal term | 2 years | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating leases renewal term | 5 years |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 16, 2010 |
Debt Instrument [Line Items] | |||
Short-term debt | $ 22.1 | $ 18.8 | |
Long-term Debt | 2,611.5 | ||
Long-term debt | 2,605.9 | 3,260.1 | |
Other long-term debt and capital lease obligations | 1.1 | 0.2 | |
Total debt | 2,634.7 | 3,293.5 | |
Less: Short-term debt and current portion of long-term debt | (28.8) | (33.4) | |
Line of Credit | 2015 Credit Agreement due March 2018 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 800 | $ 0 | |
Senior Notes: | 5.12% Series A notes due June 2017 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.12% | 5.12% | |
Long-term debt | 0 | $ 100 | |
Senior Notes: | 5.67% Series B notes due June 2020 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.67% | 5.67% | |
Long-term debt | 0 | $ 225 | |
Senior Notes: | 5.82% Series C notes due June 2022 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 5.82% | 5.82% | |
Long-term debt | 0 | $ 175 | |
Term Loan | 2013 Term Loan due March 2018 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 1,050 | 1,250 | |
Term Loan | Incremental Term Loan due April 2018 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 625 | 625 | |
Revolving Loan Facility due April 2018 | Coty Inc. Credit Facility | |||
Debt Instrument [Line Items] | |||
Coty Inc. Credit Facility | $ 136.5 | $ 899.5 |
LEASE COMMITMENTS - Minimum ren
LEASE COMMITMENTS - Minimum rental lease commitments (Details) $ in Millions | Jun. 30, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 59 |
2,017 | 49.5 |
2,018 | 43.2 |
2,019 | 37.7 |
2,020 | 35.7 |
Thereafter | 205.2 |
Gross minimum payments required | 430.3 |
Less: sublease income | (41.1) |
Total minimum payments required | $ 389.2 |
DEBT - Long-term Debt Repayment
DEBT - Long-term Debt Repayment Schedule (Details) $ in Millions | Jun. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 6.5 |
2,017 | 175 |
2,018 | 2,430 |
2,019 | 0 |
2,020 | 0 |
Thereafter | 0 |
Total | $ 2,611.5 |
LEASE COMMITMENTS - Rent expens
LEASE COMMITMENTS - Rent expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Leases [Abstract] | |||
Rent expense | $ 87.1 | $ 112.5 | $ 89.7 |
Less: sublease income | (4.3) | (1.4) | (1.2) |
Total | $ 82.8 | $ 111.1 | $ 88.5 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | 12 Months Ended | |||
Jun. 30, 2015USD ($)jurisdiction | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Jun. 30, 2012USD ($) | |
Income Tax Contingency [Line Items] | ||||
Useful lives | 9 years 7 months 6 days | |||
Operating loss carryforwards | $ 264.3 | |||
Valuation allowance | 81.9 | $ 98.6 | ||
Unrecognized tax benefits | 342.6 | 400.5 | $ 331.4 | $ 326.5 |
Unrecognized tax benefits that would impact effective tax rate | 315.7 | |||
Accrued interest and penalties | 182.9 | 159.4 | ||
Interest accrued | (4.4) | (1.7) | 1.1 | |
Penalties accrued | $ (1) | 0 | $ 0.9 | |
Number of tax jurisdictions | jurisdiction | 35 | |||
Income tax expense (benefit) | $ 62 | 49.2 | ||
Estimate of possible loss | 93.8 | |||
Undistributed earnings of foreign subsidiaries | 2,138.7 | |||
Other Noncurrent Liabilities | ||||
Income Tax Contingency [Line Items] | ||||
Accrued interest and penalties | $ 15.2 | $ 25.5 | ||
Intellectual Property | ||||
Income Tax Contingency [Line Items] | ||||
Useful lives | 20 years | |||
Intellectual Property | Prepaid Expenses and Other Current Assets | ||||
Income Tax Contingency [Line Items] | ||||
Prepaid income taxes | $ 7.6 | |||
Intellectual Property | Other Assets | ||||
Income Tax Contingency [Line Items] | ||||
Prepaid income taxes | $ 143.4 |
INCOME TAXES - Income (loss) fr
INCOME TAXES - Income (loss) from operations before income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (173.7) | $ (119.1) | $ (53.5) |
Foreign | 407 | 75 | 372.2 |
Income (loss) before income taxes | $ 233.3 | $ (44.1) | $ 318.7 |
INCOME TAXES - Components of pr
INCOME TAXES - Components of provision (benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Current: | |||
Federal | $ 3.7 | $ 5.6 | $ (26.5) |
State and local | 3.3 | 2.1 | 2.8 |
Foreign | 54.1 | 50.8 | 110.6 |
Total | 61.1 | 58.5 | 86.9 |
Deferred: | |||
Federal | (71) | (30.6) | 8.3 |
State and local | (12) | (0.7) | 2.6 |
Foreign | (4.2) | (7.1) | 19 |
Total | (87.2) | (38.4) | 29.9 |
(Benefit) provision for income taxes | $ (26.1) | $ 20.1 | $ 116.8 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Federal statutory tax rate to effective tax rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes | $ 233.3 | $ (44.1) | $ 318.7 |
Provision (benefit) for income taxes at statutory rate | 81.7 | (15.4) | 111.6 |
State and local taxes—net of federal benefit | (5.6) | 0.9 | 3.5 |
Foreign tax differentials | (74.4) | (53) | (44.2) |
Change in valuation allowances | (6.6) | 36.1 | 18.2 |
Change in unrecognized tax benefit | (35.2) | (24.4) | 4.8 |
Asset impairment charges | 0 | 67.4 | 0 |
Share-based compensation | 0 | 1.8 | 16 |
Permanent differences—net | 10.6 | 1.8 | 7.2 |
Other | 3.4 | 4.9 | (0.3) |
(Benefit) provision for income taxes | $ (26.1) | $ 20.1 | $ 116.8 |
Effective income tax rate | (11.20%) | (45.60%) | 36.60% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred income tax assets and liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred income tax assets: | ||
Inventories | $ 14 | $ 20.2 |
Accruals and allowances | 77 | 87.4 |
Sales returns | 15.9 | 20.1 |
Share-based compensation | 26.1 | 35.4 |
Employee benefits | 38.4 | 50.9 |
Net operating loss carry forwards and tax credits | 92.4 | 102.2 |
Other | 27.2 | 45.3 |
Less: valuation allowances | (81.9) | (98.6) |
Net deferred income tax assets | 209.1 | 262.9 |
Deferred income tax liabilities: | ||
Intangible assets | 436 | 421.9 |
Licensing rights | 6.3 | 6.4 |
Other | 29.7 | 33.8 |
Deferred income tax liabilities | 472 | 462.1 |
Net deferred income tax liabilities | $ (262.9) | $ (199.2) |
INCOME TAXES - Expirations of t
INCOME TAXES - Expirations of tax loss carry forwards (Details) $ in Millions | Jun. 30, 2015USD ($) |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 264.3 |
Tax Year 2016 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 14.9 |
Tax Year 2017 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 18.2 |
Tax Year 2018 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 37.8 |
Tax Year 2019 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 51.6 |
Tax Year 2020 and Thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 141.8 |
United States | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | Tax Year 2016 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | Tax Year 2017 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | Tax Year 2018 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | Tax Year 2019 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | Tax Year 2020 and Thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
Western Europe | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 44.6 |
Western Europe | Tax Year 2016 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
Western Europe | Tax Year 2017 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
Western Europe | Tax Year 2018 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
Western Europe | Tax Year 2019 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
Western Europe | Tax Year 2020 and Thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 44.6 |
Rest of World | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 219.7 |
Rest of World | Tax Year 2016 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 14.9 |
Rest of World | Tax Year 2017 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 18.2 |
Rest of World | Tax Year 2018 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 37.8 |
Rest of World | Tax Year 2019 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 51.6 |
Rest of World | Tax Year 2020 and Thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 97.2 |
INCOME TAXES - Unrecognized tax
INCOME TAXES - Unrecognized tax benefit reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning Balance | $ 400.5 | $ 331.4 | $ 326.5 |
Additions based on tax positions related to the current year | 51.6 | 29.5 | 36.8 |
Additions for tax positions of prior years | 6.4 | 91.9 | 5 |
Reductions for tax positions of prior years | (60.3) | (9.9) | 0 |
Settlements | (29.7) | (33.8) | (27.9) |
Lapses in statutes of limitations | (14.2) | (11.6) | (13.8) |
Foreign currency translation | (11.7) | 3 | 4.8 |
Unrecognized Tax Benefits, Ending Balance | $ 342.6 | $ 400.5 | $ 331.4 |
OTHER NONCURRENT LIABILITIES (D
OTHER NONCURRENT LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Noncurrent income tax liabilities | $ 182.9 | $ 154.3 |
Rent | 36.3 | 37.5 |
Restructuring | 10.5 | 5.3 |
Unfavorable lease contracts | 9.9 | 11.2 |
Deferred income | 3.6 | 8.1 |
Mandatorily redeemable financial instruments | 5.1 | 5.5 |
Other | 8.4 | 6.8 |
Total noncurrent liabilities | $ 256.7 | $ 228.7 |
INTEREST EXPENSE, NET (Details)
INTEREST EXPENSE, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Interest Expense | |||
Interest expense | $ 71.4 | $ 69.8 | $ 77.2 |
Foreign exchange losses, net of derivative contracts | 4.1 | 2.8 | 0 |
Deferred financing fees write-off | 0.9 | 0 | 2.6 |
Accretion of acquisition-related liability | 0 | 0 | 0.6 |
Interest income | (3.4) | (4.1) | (3.9) |
Total interest expense, net | $ 73 | $ 68.5 | $ 76.5 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service Period | 90 days | ||
Percent of Company match to plan | 100.00% | ||
Percent of employee salary eligible for contribution | 6.00% | ||
SPAIN | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum rate of return | 4.00% | ||
US OPEB plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service credits recognized as a result of the change in plan | $ 36.9 | ||
U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 76.7 | $ 80.8 | |
Expected contributions in 2015 | 0.7 | ||
International Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 169.4 | 189.3 | |
Expected contributions in 2015 | 9.6 | ||
Other Post-Employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions in 2015 | 1.6 | ||
U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | 12.2 | 12.7 | $ 15 |
International Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 10.7 | $ 10.6 | $ 6.4 |
EMPLOYEE BENEFIT PLANS - Reconc
EMPLOYEE BENEFIT PLANS - Reconciliation of the projected benefit obligations, plan assets, funded status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation - beginning balance | $ 364.2 | $ 317.1 | |
Service cost | 7.4 | 8 | $ 7.3 |
Interest cost | 10.3 | 12.3 | 12.5 |
Plan participants’ contributions | 2.4 | 1.7 | |
Plan amendments | (36.6) | 2.1 | |
Benefits paid | (13.5) | (15.3) | |
Premiums paid | (0.6) | (0.9) | |
Pension Curtailment | (1.6) | (0.6) | |
Pension Settlements | (6.1) | (0.1) | |
Acquisition and transfer | 6.2 | 1.3 | |
Actuarial loss (gain) | 2.5 | 31.6 | |
Effect of exchange rates | (32) | 7.8 | |
Other | 0.5 | (0.8) | |
Benefit obligation - ending balance | 303.1 | 364.2 | 317.1 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets - beginning balance | 83.4 | 67.5 | |
Actual return on plan assets | 4.8 | 6.1 | |
Employer contributions | 19.1 | 21.3 | |
Plan participants’ contributions | 2.4 | 1.7 | |
Benefits paid | (13.5) | (15.3) | |
Premiums paid | (0.6) | (0.9) | |
Plan settlements | (6.1) | 0 | |
Acquisition and transfer | 2.8 | 1.3 | |
Acquisition and transfer | 6.2 | 1.3 | |
Effect of exchange rates | (3.5) | 1.7 | |
Other | 0 | 0 | |
Fair value of plan assets - ending balance | 88.8 | 83.4 | 67.5 |
Funded Status | (214.3) | (280.8) | |
U.S. Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation - beginning balance | 80.8 | 72.8 | |
Service cost | 0 | 0 | 0 |
Interest cost | 3.3 | 3.4 | 3.3 |
Plan participants’ contributions | 0 | 0 | |
Plan amendments | 0 | 0 | |
Benefits paid | (4) | (4.3) | |
Premiums paid | 0 | 0 | |
Pension Curtailment | 0 | 0 | |
Pension Settlements | 0 | 0 | |
Acquisition and transfer | 0 | 0 | |
Actuarial loss (gain) | (2.4) | 8.9 | |
Effect of exchange rates | 0 | 0 | |
Other | 0 | 0 | |
Benefit obligation - ending balance | 77.7 | 80.8 | 72.8 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets - beginning balance | 45.9 | 36.9 | |
Actual return on plan assets | 2.5 | 4.3 | |
Employer contributions | 7.8 | 9 | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (4) | (4.3) | |
Premiums paid | 0 | 0 | |
Plan settlements | 0 | 0 | |
Acquisition and transfer | 0 | 0 | |
Acquisition and transfer | 0 | 0 | |
Effect of exchange rates | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets - ending balance | 52.2 | 45.9 | 36.9 |
Funded Status | (25.5) | (34.9) | |
International Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation - beginning balance | 197.4 | 166.6 | |
Service cost | 5.5 | 5.7 | 4.5 |
Interest cost | 4.3 | 5.5 | 5.6 |
Plan participants’ contributions | 2 | 1.7 | |
Plan amendments | 0.3 | 2.1 | |
Benefits paid | (6.4) | (9) | |
Premiums paid | (0.6) | (0.9) | |
Pension Curtailment | (1.5) | (0.6) | |
Pension Settlements | (6.1) | (0.1) | |
Acquisition and transfer | 6.2 | 1.3 | |
Actuarial loss (gain) | 7.4 | 17.3 | |
Effect of exchange rates | (31.7) | 7.8 | |
Other | 0.4 | 0 | |
Benefit obligation - ending balance | 177.2 | 197.4 | 166.6 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets - beginning balance | 37.5 | 30.6 | |
Actual return on plan assets | 2.3 | 1.8 | |
Employer contributions | 8.6 | 10.3 | |
Plan participants’ contributions | 2 | 1.7 | |
Benefits paid | (6.4) | (9) | |
Premiums paid | (0.6) | (0.9) | |
Plan settlements | (6.1) | 0 | |
Acquisition and transfer | 2.8 | 1.3 | |
Acquisition and transfer | 6.2 | 1.3 | |
Effect of exchange rates | (3.5) | 1.7 | |
Other | 0 | 0 | |
Fair value of plan assets - ending balance | 36.6 | 37.5 | 30.6 |
Funded Status | (140.6) | (159.9) | |
Other Post-Employment Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation - beginning balance | 86 | 77.7 | |
Service cost | 1.9 | 2.3 | 2.8 |
Interest cost | 2.7 | 3.4 | 3.6 |
Plan participants’ contributions | 0.4 | 0 | |
Plan amendments | (36.9) | 0 | |
Benefits paid | (3.1) | (2) | |
Premiums paid | 0 | 0 | |
Pension Curtailment | (0.1) | 0 | |
Pension Settlements | 0 | 0 | |
Acquisition and transfer | 0 | 0 | |
Actuarial loss (gain) | (2.5) | 5.4 | |
Effect of exchange rates | (0.3) | 0 | |
Other | 0.1 | (0.8) | |
Benefit obligation - ending balance | 48.2 | 86 | 77.7 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets - beginning balance | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 2.7 | 2 | |
Plan participants’ contributions | 0.4 | 0 | |
Benefits paid | (3.1) | (2) | |
Premiums paid | 0 | 0 | |
Plan settlements | 0 | 0 | |
Acquisition and transfer | 0 | 0 | |
Acquisition and transfer | 0 | 0 | |
Effect of exchange rates | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets - ending balance | 0 | 0 | $ 0 |
Funded Status | $ (48.2) | $ (86) |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amount recognized in Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | $ 0 | $ 0 |
Current liabilities | (7.8) | (8.3) |
Noncurrent liabilities | (206.5) | (272.5) |
Funded Status | (214.3) | (280.8) |
AOC(L)/I | (26.6) | (74.3) |
Net amount recognized | (240.9) | (355.1) |
U.S. Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (0.7) | (1.5) |
Noncurrent liabilities | (24.8) | (33.4) |
Funded Status | (25.5) | (34.9) |
AOC(L)/I | (13.6) | (17.4) |
Net amount recognized | (39.1) | (52.3) |
International Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (4.6) | (5) |
Noncurrent liabilities | (136) | (154.9) |
Funded Status | (140.6) | (159.9) |
AOC(L)/I | (48.2) | (56.1) |
Net amount recognized | (188.8) | (216) |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (2.5) | (1.8) |
Noncurrent liabilities | (45.7) | (84.2) |
Funded Status | (48.2) | (86) |
AOC(L)/I | 35.2 | (0.8) |
Net amount recognized | $ (13) | $ (86.8) |
EMPLOYEE BENEFIT PLANS - Pensio
EMPLOYEE BENEFIT PLANS - Pension plans with accumulated benefit obligations in excess of plan assets (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
U.S. Pension Plan | ||
Pension plans with accumulated benefit obligations in excess of plan assets | ||
Projected benefit obligation | $ 77.8 | $ 80.8 |
Accumulated benefit obligation | 76.7 | 80.8 |
Fair value of plan assets | 52.2 | 45.9 |
Pension plans with projected benefit obligations in excess of plan assets | ||
Projected benefit obligation | 77.8 | 80.8 |
Accumulated benefit obligation | 76.7 | 80.8 |
Fair value of plan assets | 52.2 | 45.9 |
International Pension Plan | ||
Pension plans with accumulated benefit obligations in excess of plan assets | ||
Projected benefit obligation | 175.8 | 195.7 |
Accumulated benefit obligation | 168.3 | 187.7 |
Fair value of plan assets | 35.4 | 35.6 |
Pension plans with projected benefit obligations in excess of plan assets | ||
Projected benefit obligation | 177.1 | 197.6 |
Accumulated benefit obligation | 169.4 | 189.3 |
Fair value of plan assets | $ 36.6 | $ 37.5 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of net periodic benefit cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 7.4 | $ 8 | $ 7.3 |
Interest cost | 10.3 | 12.3 | 12.5 |
Expected return on plan assets | (4.2) | (3.7) | (3.3) |
Amortization of prior service (credit) cost | (2.8) | 0 | (0.1) |
Amortization of net loss (gain) | 5 | 2 | 4.2 |
Settlements loss (gain) recognized | 1.1 | (0.1) | (0.1) |
Curtailment (gain) loss recognized | (0.6) | (0.6) | 0 |
Net periodic benefit cost | 16.2 | 17.9 | 20.5 |
U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 3.3 | 3.4 | 3.3 |
Expected return on plan assets | (3) | (2.5) | (2.3) |
Amortization of prior service (credit) cost | 0 | 0 | 0 |
Amortization of net loss (gain) | 2 | 1 | 2.9 |
Settlements loss (gain) recognized | 0 | 0 | 0 |
Curtailment (gain) loss recognized | 0 | 0 | 0 |
Net periodic benefit cost | 2.3 | 1.9 | 3.9 |
International Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 5.5 | 5.7 | 4.5 |
Interest cost | 4.3 | 5.5 | 5.6 |
Expected return on plan assets | (1.2) | (1.2) | (1) |
Amortization of prior service (credit) cost | 0.3 | 0.2 | 0.1 |
Amortization of net loss (gain) | 3.1 | 2.1 | 1.3 |
Settlements loss (gain) recognized | 1.2 | (0.1) | (0.1) |
Curtailment (gain) loss recognized | (0.6) | (0.6) | 0 |
Net periodic benefit cost | 12.6 | 11.6 | 10.4 |
Other Post-Employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1.9 | 2.3 | 2.8 |
Interest cost | 2.7 | 3.4 | 3.6 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (3.1) | (0.2) | (0.2) |
Amortization of net loss (gain) | (0.1) | (1.1) | 0 |
Settlements loss (gain) recognized | (0.1) | 0 | 0 |
Curtailment (gain) loss recognized | 0 | 0 | 0 |
Net periodic benefit cost | $ 1.3 | $ 4.4 | $ 6.2 |
EMPLOYEE BENEFIT PLANS - Pre-ta
EMPLOYEE BENEFIT PLANS - Pre-tax amounts recognized in AOCI (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | $ (57.9) | $ (71.3) |
Prior service (cost) credit | 31.3 | (3) |
Total recognized in AOC(L)/I | (26.6) | (74.3) |
U.S. Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | (13.6) | (17.4) |
Prior service (cost) credit | 0 | 0 |
Total recognized in AOC(L)/I | (13.6) | (17.4) |
International Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | (45.4) | (52.9) |
Prior service (cost) credit | (2.8) | (3.2) |
Total recognized in AOC(L)/I | (48.2) | (56.1) |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 1.1 | (1) |
Prior service (cost) credit | 34.1 | 0.2 |
Total recognized in AOC(L)/I | $ 35.2 | $ (0.8) |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Changes in plan assets and benefit obligations recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | $ (1.5) | $ (29.2) |
Amortization of prior service cost (credit) | (2.8) | 0 |
Recognized net actuarial loss (gain) | 6.2 | 2 |
Prior service cost | 36.6 | (2.1) |
Effect of exchange rates | 9.2 | (1.8) |
Total recognized in OCI/(L) | 47.7 | (31.1) |
U.S. Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 1.8 | (7.1) |
Amortization of prior service cost (credit) | 0 | 0 |
Recognized net actuarial loss (gain) | 2 | 1 |
Prior service cost | 0 | 0 |
Effect of exchange rates | 0 | 0 |
Total recognized in OCI/(L) | 3.8 | (6.1) |
International Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | (5.6) | (16.7) |
Amortization of prior service cost (credit) | 0.3 | 0.2 |
Recognized net actuarial loss (gain) | 4.3 | 2.1 |
Prior service cost | (0.3) | (2.1) |
Effect of exchange rates | 9.2 | (2) |
Total recognized in OCI/(L) | 7.9 | (18.5) |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 2.3 | (5.4) |
Amortization of prior service cost (credit) | (3.1) | (0.2) |
Recognized net actuarial loss (gain) | (0.1) | (1.1) |
Prior service cost | 36.9 | 0 |
Effect of exchange rates | 0 | 0.2 |
Total recognized in OCI/(L) | $ 36 | $ (6.5) |
EMPLOYEE BENEFIT PLANS - Amo106
EMPLOYEE BENEFIT PLANS - Amounts in AOCI to be amortized (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service (cost) credit | $ 5.7 |
Net loss | (4.5) |
Total amount to be amortized | 1.2 |
U.S. Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service (cost) credit | 0 |
Net loss | (1.2) |
Total amount to be amortized | (1.2) |
International Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service (cost) credit | (0.2) |
Net loss | (3.3) |
Total amount to be amortized | (3.5) |
Other Post-Employment Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service (cost) credit | 5.9 |
Net loss | 0 |
Total amount to be amortized | $ 5.9 |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Assumptions (Details) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% | 5.00% |
U.S. Pension Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Expected long-term rate of return, Benefit Cost | 6.50% | 6.50% | 6.50% |
Other Post-Employment Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates, Benefit Obligation | 4.80% | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 5.40% | 4.90% | |
Minimum | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rate assumed for next year | 6.30% | 6.30% | 7.10% |
Minimum | U.S. Pension Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates, Benefit Obligation | 4.10% | 3.10% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 3.10% | 3.60% | 3.40% |
Minimum | International Pension Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates, Benefit Obligation | 1.00% | 1.80% | |
Rate of compensation growth, Benefit Obligation | 1.00% | 2.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 1.80% | 2.30% | 2.20% |
Future compensation growth rates, Benefit Cost | 2.00% | 2.00% | 2.50% |
Expected long-term rate of return, Benefit Cost | 2.80% | 3.30% | 3.30% |
Minimum | Other Post-Employment Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates, Benefit Obligation | 4.10% | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 4.20% | ||
Maximum | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rate assumed for next year | 6.70% | 6.90% | 8.00% |
Maximum | U.S. Pension Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates, Benefit Obligation | 4.50% | 4.40% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 4.50% | 5.00% | 4.60% |
Maximum | International Pension Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates, Benefit Obligation | 2.70% | 3.20% | |
Rate of compensation growth, Benefit Obligation | 2.50% | 2.50% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 3.20% | 3.80% | 4.50% |
Future compensation growth rates, Benefit Cost | 2.50% | 2.50% | 3.00% |
Expected long-term rate of return, Benefit Cost | 4.30% | 4.30% | 4.30% |
Maximum | Other Post-Employment Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates, Benefit Obligation | 4.60% | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 4.80% |
EMPLOYEE BENEFIT PLANS - Effect
EMPLOYEE BENEFIT PLANS - Effect of one percent point change in assumed health care cost trend rates (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Effect of one percentage point increase on service cost and interest cost | $ 6.1 |
Effect of one percentage point decrease on service cost and interest cost | (5.6) |
Effect of one percentage point increase on post-employment benefit obligation | 0.6 |
Effect of one percentage point decrease on post-employment benefit obligation | $ (0.5) |
EMPLOYEE BENEFIT PLANS - Target
EMPLOYEE BENEFIT PLANS - Target and weighted-average asset allocations (Details) - U.S. Pension Plan | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations | 45.00% | |
Actual Plan Asset Allocations | 39.00% | 44.00% |
Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations | 55.00% | |
Actual Plan Asset Allocations | 46.00% | 53.00% |
Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations | 0.00% | |
Actual Plan Asset Allocations | 15.00% | 3.00% |
EMPLOYEE BENEFIT PLANS - Fair v
EMPLOYEE BENEFIT PLANS - Fair value of Plan Assets (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 88.8 | $ 83.4 | $ 67.5 |
Insurance Contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 36.6 | 37.5 | $ 30.6 |
Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 88.8 | 83.4 | |
Recurring | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 33.1 | 26.8 | |
Recurring | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 19.1 | 19.1 | |
Recurring | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 36.6 | 37.5 | |
Recurring | Domestic Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 15.8 | 15.2 | |
Recurring | Domestic Equity Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 15.8 | 15.2 | |
Recurring | Domestic Equity Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Recurring | Domestic Equity Securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Recurring | International Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 4.4 | 4.7 | |
Recurring | International Equity Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 4.4 | 4.7 | |
Recurring | International Equity Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Recurring | International Equity Securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Recurring | US Government and Government Agencies and Authorities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 17.2 | 16.5 | |
Recurring | US Government and Government Agencies and Authorities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 4.9 | 5.7 | |
Recurring | US Government and Government Agencies and Authorities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 12.3 | 10.8 | |
Recurring | US Government and Government Agencies and Authorities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Recurring | Corporate Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 6.8 | 8.3 | |
Recurring | Corporate Debt Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Recurring | Corporate Debt Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 6.8 | 8.3 | |
Recurring | Corporate Debt Securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Recurring | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 8 | 1.2 | |
Recurring | Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 8 | 1.2 | |
Recurring | Cash and Cash Equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Recurring | Cash and Cash Equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Recurring | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 36.6 | 37.5 | |
Recurring | Insurance Contracts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Recurring | Insurance Contracts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Recurring | Insurance Contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 36.6 | $ 37.5 |
EMPLOYEE BENEFIT PLANS - Rec111
EMPLOYEE BENEFIT PLANS - Reconciliations of Level 3 plan assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets - beginning balance | $ 83.4 | $ 67.5 |
Return on plan assets | 4.8 | 6.1 |
Effect of exchange rates | (3.5) | 1.7 |
Fair value of plan assets - ending balance | 88.8 | 83.4 |
Insurance Contracts | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets - beginning balance | 37.5 | 30.6 |
Return on plan assets | 2.3 | 1.8 |
Purchases, sales and settlements, net | 0.3 | 3.4 |
Effect of exchange rates | (3.5) | 1.7 |
Fair value of plan assets - ending balance | $ 36.6 | $ 37.5 |
EMPLOYEE BENEFIT PLANS - Expect
EMPLOYEE BENEFIT PLANS - Expected benefit payments (Details) $ in Millions | Jun. 30, 2015USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 13.2 |
2,017 | 13.5 |
2,018 | 14 |
2,019 | 14.7 |
2,020 | 15.8 |
2020 - 2023 | 80.9 |
U.S. Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 3.8 |
2,017 | 4.5 |
2,018 | 4.5 |
2,019 | 4.6 |
2,020 | 4.7 |
2020 - 2023 | 24.1 |
International Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 7.6 |
2,017 | 7.3 |
2,018 | 7.5 |
2,019 | 7.8 |
2,020 | 8.6 |
2020 - 2023 | 41.5 |
Other Post-Employment Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 1.8 |
2,017 | 1.7 |
2,018 | 2 |
2,019 | 2.3 |
2,020 | 2.5 |
2020 - 2023 | $ 15.3 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Assets And Liabilities Measured On A Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Level 1 | ||
Assets: | ||
Foreign exchange contracts | $ 0 | $ 0 |
Liabilities: | ||
Foreign exchange contracts | 0 | 0 |
Contingent consideration - business combinations | 0 | 0 |
Total Liabilities | 0 | 0 |
Total recurring fair value measurements | 0 | 0 |
Level 2 | ||
Assets: | ||
Foreign exchange contracts | 12.4 | 2.1 |
Liabilities: | ||
Foreign exchange contracts | 6.3 | 11.5 |
Contingent consideration - business combinations | 0 | 0 |
Total Liabilities | 6.3 | 11.5 |
Total recurring fair value measurements | 6.1 | (9.4) |
Level 3 | ||
Assets: | ||
Foreign exchange contracts | 0 | 0 |
Liabilities: | ||
Foreign exchange contracts | 0 | 0 |
Contingent consideration - business combinations | 0.9 | 1.1 |
Total Liabilities | 0.9 | 1.1 |
Total recurring fair value measurements | $ (0.9) | $ (1.1) |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Values Of The Company’s Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Carrying Amount | ||
Debt Instrument [Line Items] | ||
Dividends payable | $ 1.4 | $ 0.9 |
Carrying Amount | Senior Notes: | Senior Notes Series A | ||
Debt Instrument [Line Items] | ||
Debt instrument, value | 0 | 100 |
Carrying Amount | Senior Notes: | Senior Notes Series B | ||
Debt Instrument [Line Items] | ||
Debt instrument, value | 0 | 225 |
Carrying Amount | Senior Notes: | Senior Notes Series C | ||
Debt Instrument [Line Items] | ||
Debt instrument, value | 0 | 175 |
Carrying Amount | Coty Inc. Credit Agreements | ||
Debt Instrument [Line Items] | ||
Debt instrument, value | 2,611.5 | 2,774.5 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Dividends payable | 1.1 | 0.7 |
Fair Value | Senior Notes: | Senior Notes Series A | ||
Debt Instrument [Line Items] | ||
Debt instrument, value | 0 | 109.7 |
Fair Value | Senior Notes: | Senior Notes Series B | ||
Debt Instrument [Line Items] | ||
Debt instrument, value | 0 | 256.3 |
Fair Value | Senior Notes: | Senior Notes Series C | ||
Debt Instrument [Line Items] | ||
Debt instrument, value | 0 | 199.9 |
Fair Value | Coty Inc. Credit Agreements | ||
Debt Instrument [Line Items] | ||
Debt instrument, value | $ 2,614.2 | $ 2,763.2 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Derivative [Line Items] | |||
Derivative asset | $ 12.4 | $ 2.1 | |
Net loss reclassified from AOCI | (232.5) | 97.4 | $ (168) |
Foreign Exchange Contract | (Losses) Gains on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative [Line Items] | |||
Net loss reclassified from AOCI | 3.9 | ||
Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Foreign currency forward contracts in net liability position | 6.3 | ||
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative asset | 6.8 | 0 | |
Designated as Hedging Instrument | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Accumulated loss recognized in OCI,net | 0.1 | 8.9 | |
Estimated loss that is expected to be reclassified into from AOCI into earnings in next 12 months | 0.2 | ||
Notional amounts of derivatives | (277) | (361.3) | |
Designated as Hedging Instrument | Foreign Exchange Forward | British Pound | |||
Derivative [Line Items] | |||
Notional amounts of derivatives | (97.7) | (108.5) | |
Designated as Hedging Instrument | Foreign Exchange Forward | Euro | |||
Derivative [Line Items] | |||
Notional amounts of derivatives | (112.1) | (85.8) | |
Designated as Hedging Instrument | Foreign Exchange Forward | Australia, Dollars | |||
Derivative [Line Items] | |||
Notional amounts of derivatives | (18.7) | (42.4) | |
Designated as Hedging Instrument | Foreign Exchange Forward | Canadian Dollar | |||
Derivative [Line Items] | |||
Notional amounts of derivatives | (37) | (49.5) | |
Designated as Hedging Instrument | Foreign Exchange Forward | Russian Rubles | |||
Derivative [Line Items] | |||
Notional amounts of derivatives | (10.3) | (38.3) | |
Designated as Hedging Instrument | Foreign Exchange Forward | Polish Zloty | |||
Derivative [Line Items] | |||
Notional amounts of derivatives | (30.2) | ||
Designated as Hedging Instrument | Foreign Exchange Forward | U.S. Dollar | |||
Derivative [Line Items] | |||
Notional amounts of derivatives | (17.4) | ||
Designated as Hedging Instrument | Foreign Exchange Forward | Japanese Yen | |||
Derivative [Line Items] | |||
Notional amounts of derivatives | (2.5) | ||
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative asset | 5.6 | 2.1 | |
Not Designated as Hedging Instrument | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Notional amounts of derivatives | $ (1,297.6) | $ (535.4) |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Value Of Derivative Instruments Outstanding (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 12.4 | $ 2.1 |
Derivative Liability | 6.3 | 11.5 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 6.8 | 0 |
Derivative Liability | 4.8 | 10.5 |
Designated as Hedging Instrument | Foreign Exchange Contract | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 6.8 | 0 |
Designated as Hedging Instrument | Foreign Exchange Contract | Accrued Expenses and Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | 4.8 | 10.5 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 5.6 | 2.1 |
Derivative Liability | 1.5 | 1 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 5.6 | 2.1 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Accrued Expenses and Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | $ 1.5 | $ 1 |
DERIVATIVE INSTRUMENTS - Gross
DERIVATIVE INSTRUMENTS - Gross Amount Of Foreign Exchange Contract Hedges Recorded As Assets And Liabilities In The Condensed Consolidated Balance Sheet (Details) - Foreign Exchange Contract - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Prepaid Expenses and Other Current Assets | ||
Offsetting Derivative Assets [Abstract] | ||
Derivative Asset, Gross Amount Recognized | $ 16.1 | $ 2.2 |
Derivative Asset, Gross Amount Offset in the Condensed Consolidated Statement of Operations | (3.7) | (0.1) |
Derivative Asset, Fair Value, After Netting | 12.4 | 2.1 |
Derivative, Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 0 | 0 |
Derivative, Gross Amounts Not Offset in the Consolidated Balance Sheet, Cash Collateral Received | 0 | 0 |
Derivative Asset, Net Amount | 12.4 | 2.1 |
Accrued Expenses and Other Current Liabilities | ||
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liability, Gross Amounts Recognized | (6.5) | (12.9) |
Derivative Liability, Gross Amount Offset in the Condensed Consolidated Statement of Operations | 0.2 | 1.4 |
Derivative Liability, After Netting | (6.3) | (11.5) |
Derivative, Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments | 0 | 0 |
Derivative, Gross Amounts Not Offset in the Consolidated Balance Sheet, Cash Collateral Received | 0 | 0 |
Derivative Liability, Net Amount | $ (6.3) | $ (11.5) |
DERIVATIVE INSTRUMENTS - Amount
DERIVATIVE INSTRUMENTS - Amount Of Gains And Losses Related Derivative Financial Instruments Not Designated As Hedging Instruments (Details) - Not Designated as Hedging Instrument - Foreign Exchange Contract - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Operations | [1] | $ (37.2) | $ 0.4 | $ 0.8 |
Net revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Operations | (0.1) | 0 | 0 | |
Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Operations | (0.3) | 0.1 | 0.9 | |
Selling, general and administrative | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Operations | $ (0.2) | $ (0.1) | $ 0 | |
[1] | The impact on interest expense, net at June 30, 2015 related to derivative contracts entered into to offset fluctuations in the underlying non-functional currency cash balances and intercompany loans at June 30, 2015 is due to increased foreign exchange exposure and higher volatility in currencies during the year, which is more than offset by the revaluation of underlying non-functional currency cash balances. |
DERIVATIVE INSTRUMENTS - Schedu
DERIVATIVE INSTRUMENTS - Schedule of Gains and Losses Reclassified from AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net revenues | $ 4,395.2 | $ 4,551.6 | $ 4,649.1 |
Cost of sales | 1,757 | 1,865.7 | 1,860.3 |
Foreign Exchange Contract | (Losses) Gains on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net revenues | 8.1 | 0 | 0 |
Cost of sales | $ 0.3 | $ 0 | $ 0 |
NONCONTROLLING INTERESTS AND120
NONCONTROLLING INTERESTS AND REDEEMABLE NONCONTROLLING INTERESTS - Narrative (Details) SAR in Thousands, $ in Millions | Dec. 29, 2014USD ($) | Dec. 29, 2014SAR | Jan. 10, 2014USD ($) | Aug. 23, 2013 | Sep. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Dec. 28, 2014 | Jul. 01, 2014 | Sep. 20, 2013 |
Redeemable Noncontrolling Interest [Line Items] | |||||||||||
Ownership interest percentage | 75.00% | ||||||||||
Payments for additional interest | $ 0 | $ 4.4 | $ 0 | ||||||||
KSA Subsidiary | |||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||
Payments to acquire interest in joint venture | $ 5.4 | SAR 20,250 | |||||||||
Hong Kong Subsidiary | |||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||
Call right | 7.00% | ||||||||||
Payments for additional interest | $ 4.4 | ||||||||||
Outstanding shares of the JV owned by third party | 45.00% | ||||||||||
Redemption assumptions, minimum percentage required | 110.00% | ||||||||||
Redemption assumptions, minimum percentage period of calculation | 3 years | ||||||||||
Hong Kong Subsidiary | Additional Paid-in Capital | |||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||
Reduction in APIC | 4.2 | ||||||||||
Hong Kong Subsidiary | Noncontrolling Interest | |||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||
Reduction in APIC | $ 0.2 | ||||||||||
United Arab Emirates Subsidiary | |||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||
Payments for additional interest | $ 15.8 | ||||||||||
Outstanding shares of the JV owned by third party | 33.00% | ||||||||||
Percentage interest in M.E. subsidiary | 7.00% | 7.00% | |||||||||
Redeemable noncontrolling interest purchase | $ (15.8) | $ (15.8) | |||||||||
Remaining call option percentage | 33.00% |
NONCONTROLLING INTERESTS AND121
NONCONTROLLING INTERESTS AND REDEEMABLE NONCONTROLLING INTERESTS - Effects of Change in the Ownership Percentage of Noncontrolling Interest on Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Noncontrolling Interest [Line Items] | |||
Net income attributable to Coty Inc. | $ 232.5 | $ (97.4) | $ 168 |
Net (loss) income attributable to Coty Inc. and transfers from NCI | 232.5 | (101.6) | 168 |
HONG KONG | |||
Noncontrolling Interest [Line Items] | |||
Decrease in APIC for purchase of Hong Kong NCI | $ 0 | $ (4.2) | $ 0 |
NONCONTROLLING INTERESTS AND122
NONCONTROLLING INTERESTS AND REDEEMABLE NONCONTROLLING INTERESTS - Redeemable Noncontrolling Interest Adjustments (Details) - Jun. 30, 2015 | Total | |
United Arab Emirates Subsidiary | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Percentage of redeemable noncontrolling interest | 33.00% | |
First Call Period | Jul. 1, 2028 | |
Remaining call option percentage | 33.00% | |
Redemption Assumptions, EBIT Average Period | [1] | 3 years |
Redemption Assumptions, Percentage Applied to EBIT Average | [2] | 6.00% |
Hong Kong Subsidiary | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Percentage of redeemable noncontrolling interest | 45.00% | |
First Call Period | Jun. 1, 2016 | |
Redemption Assumptions, EBIT Average Period | [1] | 3 years |
Redemption Assumptions, Percentage Applied to EBIT Average | [2] | 8.00% |
[1] | The redemption value formula related to Hong Kong is subject to a 110% of three year’s averaged net sales cap and net asset value minimum. | |
[2] | EBIT is defined in the respective stockholder agreements as earnings before interest and income taxes. |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) $ / shares in Units, $ in Thousands | Apr. 01, 2015USD ($)shares | Mar. 13, 2015shares | Oct. 15, 2014USD ($) | Sep. 29, 2014USD ($)$ / sharesshares | Sep. 17, 2014USD ($)$ / shares | Jun. 12, 2014USD ($)$ / sharesshares | Oct. 31, 2013USD ($) | Sep. 17, 2013USD ($)$ / shares | Jul. 12, 2013shares | Jun. 13, 2013shares | Jun. 12, 2015individualshares | Jun. 30, 2015USD ($)vote$ / sharesshares | Sep. 30, 2014shares | Jun. 30, 2015USD ($)voteindividual$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2013USD ($)$ / sharesshares | Oct. 01, 2014USD ($) | Jun. 06, 2014shares | Mar. 14, 2014shares | Dec. 13, 2013shares | Oct. 11, 2013USD ($) | May. 31, 2013$ / sharesshares |
Class of Stock [Line Items] | ||||||||||||||||||||||
Common stock, shares outstanding | 382,800,000 | |||||||||||||||||||||
Preferred stock, shares outstanding | 1,900,000 | 1,900,000 | 0 | 0 | ||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | |||||||||||||||||||
Shares repurchased, cost per share (in dollars per share) | $ / shares | $ 16.78 | |||||||||||||||||||||
Percentage of assets acquired | 100.00% | |||||||||||||||||||||
Treasury stock reissued | $ | $ 269,900 | |||||||||||||||||||||
Charge to APIC | $ | 106,900 | |||||||||||||||||||||
Net payment | $ | $ 29,500 | |||||||||||||||||||||
Shares repurchased amount | $ | $ 0 | $ 469,000 | $ 0 | |||||||||||||||||||
Dividends declared (in dollars per share) | $ / shares | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.2 | $ 0.15 | |||||||||||||||||
Minimum | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Shares repurchased, cost per share (in dollars per share) | $ / shares | 18.64 | 14.64 | ||||||||||||||||||||
Maximum | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Shares repurchased, cost per share (in dollars per share) | $ / shares | $ 21.99 | $ 15.69 | ||||||||||||||||||||
Common Class A | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Common stock, shares outstanding | 98,800,000 | 98,800,000 | 90,200,000 | |||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.0001 | |||||||||||||||||||
Voting rights per share | vote | 1 | 1 | ||||||||||||||||||||
Shares issued | 1,400,000 | |||||||||||||||||||||
Common stock, shares authorized | 800,000,000 | 800,000,000 | 800,000,000 | |||||||||||||||||||
Treasury stock, shares purchased (less than) | 100,000 | 13,400,000 | 6,600,000 | |||||||||||||||||||
Treasury stock, value acquired | $ | $ 263,100 | $ 100,000 | ||||||||||||||||||||
Shares repurchased amount | $ | $ 1,000 | |||||||||||||||||||||
Common Class A | Former CEO | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
APIC, exercise of stock options | $ | $ 12,500 | |||||||||||||||||||||
Treasury stock, shares purchased (less than) | 2,400,000 | |||||||||||||||||||||
Shares repurchased, cost per share (in dollars per share) | $ / shares | $ 17.21 | |||||||||||||||||||||
Treasury stock, value acquired | $ | $ 42,000 | |||||||||||||||||||||
Common Class B | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Common stock, shares outstanding | 262,000,000 | 262,000,000 | 263,700,000 | |||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||
Voting rights per share | vote | 10 | 10 | ||||||||||||||||||||
Common stock, shares authorized | 262,000,000 | 262,000,000 | 263,700,000 | |||||||||||||||||||
Conversion of class B to class A common stock (in shares) | 1,700,000 | |||||||||||||||||||||
Treasury stock, shares purchased (less than) | 27,900,000 | |||||||||||||||||||||
Shares repurchased amount | $ | $ 468,000 | |||||||||||||||||||||
Common Class B | Berkshire Partners LLC | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Common stock, shares sold | 1,000,000 | 6,000,000 | 4,000,000 | |||||||||||||||||||
Series A Preferred Stock | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Preferred stock, shares outstanding | 1,900,000 | 1,900,000 | ||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||||||||||||
Number of individuals | individual | 4 | |||||||||||||||||||||
Granted | 7,400,000 | |||||||||||||||||||||
Forfeited | 5,500,000 | |||||||||||||||||||||
Less than convertible amount | $ | $ 27,970 | $ 27,970 | ||||||||||||||||||||
Preferred Stock | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | ||||||||||||||||||||
Common Class A and B | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Dividends paid | $ | $ 71,000 | $ 71,900 | $ 76,900 | $ 77,600 | ||||||||||||||||||
Stock Option | Former CEO | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Exercise of employee stock options and settlement of restricted stock units | $ | $ 12,500 | |||||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Granted | 1,800,000 | |||||||||||||||||||||
Forfeited | 1,600,000 | |||||||||||||||||||||
Restricted Stock Units | Former CEO | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Forfeited | 100,000 | |||||||||||||||||||||
Restricted Stock Units | Other Noncurrent Liabilities | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Dividends payable | $ | $ 1,400 | $ 1,400 | $ 900 | |||||||||||||||||||
Restricted Stock Units | Additional Paid-in Capital | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Reduction of dividend accrual recorded in prior period | $ | $ 300 | $ 200 | ||||||||||||||||||||
RSU and Restricted Shares of Class A Common Stock | Other Noncurrent Liabilities | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Dividends payable | $ | $ 900 | $ 700 | ||||||||||||||||||||
IPO | Common Class A | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Common stock, shares sold | 57,100,000 | |||||||||||||||||||||
Conversion of stock, shares issued | 72,200,000 | |||||||||||||||||||||
IPO | Common Class B | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Conversion of stock, shares issued | 310,600,000 | |||||||||||||||||||||
Over-Allotment Option | Common Class A | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Common stock, shares sold | 8,000,000 | |||||||||||||||||||||
Over-Allotment Option | Common Class B | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Shares converted | 46,900,000 | |||||||||||||||||||||
Platinum | Common Class A | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Shares issued | 5,800,000 | |||||||||||||||||||||
Platinum | Employee Stock Options, Restricted Stock Units RSUs Member And Employee Stock Ownership Program | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Exercise of employee stock options and settlement of restricted stock units | $ | $ 48,500 | |||||||||||||||||||||
JABC | Common Class B | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Number of individuals | individual | 2 | |||||||||||||||||||||
JABC | Common Class B | Executive Officer | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Shares issued in transaction | 1,700,000 | 1,700,000 | ||||||||||||||||||||
Bourjois | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Reissuance of treasury stock for Bourjois acquisition | $ | $ 376,800 | |||||||||||||||||||||
Bourjois | Common Class A | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Number of shares issued | 15,500,000 |
EQUITY - Accumulated Other Comp
EQUITY - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | $ (85.1) | $ (118.6) | |
Other Comprehensive income before reclassifications | (187.3) | 32.1 | |
Amounts reclassified from AOCL | [1] | (1.6) | 1.4 |
Net current-period other comprehensive income | (188.9) | 33.5 | |
Ending Balance | (274) | (85.1) | |
Amortization of actuarial losses | 3.4 | 2 | |
Recognized net actuarial loss (gain), tax | 1 | (0.6) | |
(Losses) Gains on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (8.9) | 0 | |
Other Comprehensive income before reclassifications | 12.8 | (8.9) | |
Amounts reclassified from AOCL | [1] | (4) | 0 |
Net current-period other comprehensive income | 8.8 | (8.9) | |
Ending Balance | (0.1) | (8.9) | |
Pension and Other Post-Employment Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (54.7) | (33.4) | |
Other Comprehensive income before reclassifications | 27.7 | (22.7) | |
Amounts reclassified from AOCL | [1] | 2.4 | 1.4 |
Net current-period other comprehensive income | 30.1 | (21.3) | |
Ending Balance | (24.6) | (54.7) | |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (21.5) | (85.2) | |
Other Comprehensive income before reclassifications | (227.8) | 63.7 | |
Amounts reclassified from AOCL | [1] | 0 | 0 |
Net current-period other comprehensive income | (227.8) | 63.7 | |
Ending Balance | $ (249.3) | $ (21.5) | |
[1] | Amortization of actuarial losses of $3.4 and $2.0, net of taxes of $1.0 and $(0.6), were reclassified out of AOCL and included in the computation of net period pension costs for the fiscal year ending June 30, 2015 and 2014, respectively (see Note 18). |
SHARE-BASED COMPENSATION PLA125
SHARE-BASED COMPENSATION PLANS - Narrative (Details) | Mar. 13, 2015USD ($)shares | Dec. 02, 2014USD ($)shares | Jun. 13, 2013 | Jun. 11, 2013 | Apr. 30, 2015shares | Sep. 30, 2010shares | Jun. 12, 2015individualshares | Sep. 30, 2014shares | Jun. 30, 2015USD ($)individual$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2013USD ($)executive$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares available for grant | 12,500,000 | ||||||||||
Granted | 1,700,000 | ||||||||||
Risk-free interest rate | 1.79% | 0.84% | |||||||||
Expected life | 7 years 6 months | 4 years 10 days | |||||||||
Expected dividend yield | 0.80% | 0.86% | |||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||||
Preferred stock, shares | 1,900,000 | 0 | |||||||||
Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Outstanding options grant price | $ / shares | $ 5.10 | ||||||||||
Exercisable options grant price | $ / shares | 5.10 | ||||||||||
Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Outstanding options grant price | $ / shares | 24.13 | ||||||||||
Exercisable options grant price | $ / shares | $ 10.50 | ||||||||||
Selling, general and administrative | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total share-based compensation expense | $ | $ 35,900,000 | $ 46,800,000 | $ 144,400,000 | ||||||||
Immediate Vesting | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percent of awards vested due to re-measurement | 50.00% | ||||||||||
One-Year Vesting | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percent of awards vested due to re-measurement | 50.00% | ||||||||||
Certain Senior Executives | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted | 1,700,000 | ||||||||||
Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Adjustments to APIC | $ | 1,900,000 | ||||||||||
Executive Officer | Selling, general and administrative | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total share-based compensation expense | $ | 15,800,000 | ||||||||||
Stock Option | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total share-based compensation expense | $ | 9,500,000 | 28,600,000 | $ 98,800,000 | ||||||||
Total unrecognized share-based compensation expense | $ | $ 19,600,000 | ||||||||||
Weighted-average period for unrecognized share-based compensation | 2 years 10 months 28 days | ||||||||||
Expected dividend yield | 0.80% | 0.86% | |||||||||
Theoretical liquidity discount | 10.00% | ||||||||||
Stock options vesting period | 5 years | ||||||||||
Nonqualified stock options exercise period | 5 years | ||||||||||
Nonqualified stock options contractual life | 10 years | ||||||||||
Fair value adjustment, common stock issued | $ | 400,000 | ||||||||||
Stock Option | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Risk-free interest rate | 1.79% | 0.11% | |||||||||
Stock Option | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Risk-free interest rate | 1.30% | ||||||||||
Restricted and Other Share Awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total unrecognized share-based compensation expense | $ | $ 32,800,000 | ||||||||||
Weighted-average period for unrecognized share-based compensation | 3 years 2 months 19 days | ||||||||||
Restricted Stock Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total share-based compensation expense | $ | $ 9,700,000 | 10,800,000 | $ 9,100,000 | ||||||||
Fair value adjustment, common stock issued | $ | 700,000 | ||||||||||
Granted | 1,800,000 | ||||||||||
Forfeited | 1,600,000 | ||||||||||
Total intrinsic value of restricted shares vested and settled | $ | $ 6,200,000 | 2,800,000 | 4,200,000 | ||||||||
Vested shares | 300,000 | ||||||||||
Vested, weighted average grant date fair value | $ / shares | $ 14.32 | ||||||||||
Restricted Stock Units | Former CEO | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Forfeited | 100,000 | ||||||||||
Special Incentive Award | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total share-based compensation expense | $ | $ 0 | 7,400,000 | $ 18,900,000 | ||||||||
Granted | 3,900,000 | ||||||||||
Forfeited | 1,500,000 | ||||||||||
Total intrinsic value of restricted shares vested and settled | $ | 0 | $ 20,400,000 | $ 20,900,000 | ||||||||
Vested shares | 1,200,000 | 1,200,000 | |||||||||
Vested, weighted average grant date fair value | $ / shares | $ 6.82 | $ 6.82 | |||||||||
Number of executives that forfeited award | executive | 1 | ||||||||||
Phantom Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total share-based compensation expense | $ | $ 1,000,000 | ||||||||||
Granted | 49,432 | ||||||||||
Weighted-average grant date fair value of stock options | $ | $ 1,000,000 | ||||||||||
Omnibus Long-Term Incentive Plan | Restricted Stock Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted | 1,700,000 | 2,100,000 | |||||||||
2007 Stock Plan for Directors | Restricted Stock Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted | 100,000 | 100,000 | |||||||||
EOP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total share-based compensation expense | $ | $ (500,000) | $ 0 | $ 10,700,000 | ||||||||
Fair value adjustment, common stock issued | $ | $ 5,800,000 | ||||||||||
Shares purchased during period | 100,000 | 100,000 | |||||||||
Purchase shares outstanding | 1,400,000 | 1,300,000 | |||||||||
Series A Preferred Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total unrecognized share-based compensation expense | $ | $ 16,000,000 | ||||||||||
Weighted-average period for unrecognized share-based compensation | 4 years 10 months 13 days | ||||||||||
Risk-free interest rate | 1.96% | ||||||||||
Expected life | 5 years 9 months 15 days | ||||||||||
Expected dividend yield | 0.63% | ||||||||||
Stock options vesting period | 5 years | ||||||||||
Nonqualified stock options exercise period | 2 years | ||||||||||
Nonqualified stock options contractual life | 7 years | ||||||||||
Granted | 7,400,000 | ||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||||
Number of individuals | individual | 4 | ||||||||||
Exercise price | $ / shares | $ 27.97 | ||||||||||
Preferred stock, shares | 1,900,000 | ||||||||||
Compensation expense | $ | $ 400,000 | ||||||||||
Forfeited | 5,500,000 | ||||||||||
Vested shares | 0 | ||||||||||
Vested, weighted average grant date fair value | $ / shares | $ 0 | ||||||||||
JABC | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total share-based compensation expense | $ | $ 13,900,000 | ||||||||||
JABC | Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares sold in transaction by related party | 1,400,000 | ||||||||||
Discount on shares | $ | $ 1,900,000 | ||||||||||
JABC | Common Class B | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of individuals | individual | 2 | ||||||||||
JABC | Common Class B | Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares issued in transaction | 1,700,000 | 1,700,000 | |||||||||
Accrued Expenses and Other Current Liabilities | Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Difference between market price of the shares and sale date | $ | $ 13,900,000 |
SHARE-BASED COMPENSATION PLA126
SHARE-BASED COMPENSATION PLANS - Black-Scholes Valuation Assumptions (Details) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 7 years 6 months | 4 years 10 days |
Risk-free interest rate | 1.79% | 0.84% |
Expected volatility | 31.73% | 32.53% |
Expected dividend yield | 0.80% | 0.86% |
Series A Preferred Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 5 years 9 months 15 days | |
Risk-free interest rate | 1.96% | |
Expected volatility | 26.14% | |
Expected dividend yield | 0.63% |
SHARE-BASED COMPENSATION PLA127
SHARE-BASED COMPENSATION PLANS - Outstanding Non-qualified Stock Options Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Jun. 30, 2015 | |
Shares | |
Outstanding, beginning balance | 23.2 |
Granted | 1.7 |
Exercised | (6.8) |
Forfeited or expired | (4.1) |
Outstanding, ending balance | 14 |
Vested and expected to vest | 12.5 |
Exercisable | 3.7 |
Weighted Average Exercise Price | |
Outstanding, weighted average exercise price, beginning balance | $ 9.32 |
Granted | 24.13 |
Exercised | 8.59 |
Forfeited or expired | 9.99 |
Outstanding, weighted average exercise price, ending balance | 11.32 |
Vested and expected to vest | 10.79 |
Exercisable | $ 8.41 |
Aggregate Intrinsic Value and Weighted Average Remaining Contractual Term | |
Vested and expected to vest, aggregate intrinsic value | $ 264.3 |
Exercisable, aggregate intrinsic value | $ 87.7 |
Vested and expected to vest, weighted average remaining contractual term | 5 years 1 month 24 days |
Exercisable, weighted average remaining contractual term | 2 years 11 months 19 days |
SHARE-BASED COMPENSATION PLA128
SHARE-BASED COMPENSATION PLANS - Summary of the Total Intrinsic Value of Stock Options Exercised and Payment to Settle Nonqualified Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value of stock options | $ 8.75 | $ 0 | $ 0 |
Intrinsic value of options exercised | $ 77.2 | $ 28.3 | $ 160.6 |
Payment to settle nonqualified stock options | 53 | ||
Former CEO | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payment to settle nonqualified stock options | $ 12 | $ 0 | $ 101.4 |
SHARE-BASED COMPENSATION PLA129
SHARE-BASED COMPENSATION PLANS - Non-vested Nonqualified Stock Options (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Number of Shares | |||
Granted | 1.7 | ||
Weighted Average Grant Date Fair Value | |||
Weighted-average grant date fair value of stock options | $ 8.75 | $ 0 | $ 0 |
Non Qualified Options | |||
Number of Shares | |||
Non-vested, beginning balance | 16.2 | ||
Granted | 1.7 | ||
Vested | (3.5) | ||
Forfeited | (4.1) | ||
Non-vested, ending balance | 10.3 | 16.2 | |
Weighted Average Grant Date Fair Value | |||
Non-vested, beginning balance | $ 3.81 | ||
Weighted-average grant date fair value of stock options | 24.13 | ||
Vested | 3.56 | ||
Forfeited | 3.89 | ||
Non-vested, ending balance | $ 4.70 | $ 3.81 |
SHARE-BASED COMPENSATION PLA130
SHARE-BASED COMPENSATION PLANS - Non-Vested Shares of Series A Preferred Stock (Details) - Series A Preferred Stock - $ / shares shares in Millions | 12 Months Ended |
Jun. 30, 2015 | |
Shares | |
Outstanding, beginning balance | 0 |
Granted | 7.4 |
Vested | 0 |
Forfeited | (5.5) |
Outstanding, ending balance | 1.9 |
Weighted Average Grant Date Fair Value | |
Outstanding and nonvested, beginning balance | $ 0 |
Granted | 5.24 |
Vested | 0 |
Forfeited | 5.24 |
Outstanding and nonvested, ending balance | $ 5.24 |
SHARE-BASED COMPENSATION PLA131
SHARE-BASED COMPENSATION PLANS - RSU Activity (Details) - Restricted Stock Units - USD ($) shares in Millions, $ in Millions | 12 Months Ended |
Jun. 30, 2015 | |
Shares | |
Outstanding, beginning balance | 4.4 |
Granted | 1.8 |
Settled | (0.3) |
Cancelled | (1.6) |
Outstanding, ending balance | 4.3 |
Vested and expected to vest | 3.4 |
Vested and expected to vest, Aggregate intrinsic value | $ 107.4 |
Vested and expected to vest, Weighted average remaining contractual term | 3 years 1 month 21 days |
SHARE-BASED COMPENSATION PLA132
SHARE-BASED COMPENSATION PLANS - Outstanding and Non-vested RSUs Activity (Details) - Restricted Stock Units - $ / shares shares in Millions | 12 Months Ended |
Jun. 30, 2015 | |
Shares | |
Outstanding, beginning balance | 4 |
Granted | 1.8 |
Vested | (0.3) |
Cancelled | (1.6) |
Outstanding, ending balance | 3.9 |
Weighted Average Grant Date Fair Value | |
Outstanding and nonvested, beginning balance | $ 15.77 |
Granted | 16.95 |
Vested | 14.32 |
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue | 15.82 |
Outstanding and nonvested, ending balance | $ 16.23 |
NET INCOME (LOSS) ATTRIBUTAB133
NET INCOME (LOSS) ATTRIBUTABLE TO COTY INC. PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Earnings Per Share [Abstract] | |||||
Net income attributable to Coty Inc. | $ 232.5 | $ (97.4) | $ 168 | ||
Weighted-average common shares outstanding: | |||||
Weighted-average common shares outstanding—Basic | 353,300,000 | 381,700,000 | 381,700,000 | ||
Effect of dilutive stock options and Series A Preferred Stock | [1] | 7,600,000 | 0 | 12,300,000 | |
Effect of restricted stock and RSUs | [2] | 2,000,000 | 0 | 2,400,000 | |
Weighted-average common shares outstanding—Diluted | 362,900,000 | 381,700,000 | 396,400,000 | ||
Net income (loss) attributable to Coty Inc. per common share: | |||||
Basic (dollars per shares) | $ 0.66 | $ (0.26) | $ 0.44 | ||
Diluted (dollars per shares) | $ 0.64 | $ (0.26) | $ 0.42 | ||
Stock Option | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Outstanding options excluded from diluted earnings per share calculation due to anti-dilutive effect | 700,000 | 0 | 1,200,000 | ||
Restricted Stock Units | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Outstanding options excluded from diluted earnings per share calculation due to anti-dilutive effect | 400,000 | 0 | 0 | ||
[1] | As of June 30, 2015 and 2013, outstanding stock options and Series A Preferred Stock to purchase 0.7 million and 1.2 million shares of Common Stock, respectively, are excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. Due to the net loss incurred in fiscal 2014, stock options are excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. | ||||
[2] | As of June 30, 2015 and 2013, there are 0.4 million and zero anti-dilutive RSUs excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. Due to the net loss incurred in fiscal 2014, RSUs are excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) | 12 Months Ended |
Jun. 30, 2014claim | |
Pending Litigation | New York | |
Loss Contingencies [Line Items] | |
Number of complaints filed | 2 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions | Jul. 21, 2015 | Jul. 08, 2015 | Jun. 30, 2015 | Aug. 13, 2015 |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 700 | |||
P&G Beauty Business | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Purchase price | $ 12,500 | |||
P&Gs percent ownership | 52.00% | |||
Percentage of company owned | 48.00% | |||
Phantom Units | ||||
Subsequent Event [Line Items] | ||||
Total share-based compensation expense | $ 1 | |||
Phantom Units | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Phantom units value | $ 8.1 | |||
Phantom Units | CEO | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Units granted | 300,000 | |||
JABC | ||||
Subsequent Event [Line Items] | ||||
Total share-based compensation expense | $ 13.9 | |||
Common Class A | JABC | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Stock repurchased during period, shares | 1,400,000 | |||
Stock repurchased during period, value | $ 45.7 |
VALUATION AND QUALIFYING ACC136
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Allowance for doubtful accounts | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 16.7 | $ 14.5 | $ 19.6 | |
Charged to Costs and Expenses | 4.5 | 3.2 | 3.2 | |
Deductions | [1] | (1.6) | (1) | (8.3) |
Balance at End of Period | 19.6 | 16.7 | 14.5 | |
Allowance for customer returns | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 87.3 | 76 | 74.9 | |
Charged to Costs and Expenses | 153.9 | 173.8 | 158.6 | |
Deductions | (181.3) | (162.5) | (157.5) | |
Balance at End of Period | 59.9 | 87.3 | 76 | |
Deferred tax valuation allowances | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 98.6 | 61.5 | 47.1 | |
Charged to Costs and Expenses | [2] | 7.9 | 42.2 | 20.6 |
Deductions | (24.6) | (5.1) | (6.2) | |
Balance at End of Period | $ 81.9 | $ 98.6 | $ 61.5 | |
[1] | Includes amounts written-off, net of recoveries and cash discounts. | |||
[2] | Includes foreign currency translation adjustments unless otherwise noted. |