Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Aug. 14, 2018 | Dec. 31, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | COTY INC. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Common Stock, Shares Outstanding | 750,792,022 | ||
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, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 8,993,216,977 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | |||
Net revenues | $ 9,398 | $ 7,650.3 | $ 4,349.1 |
Cost of sales | 3,608.4 | 3,028.5 | 1,746 |
Gross profit | 5,789.6 | 4,621.8 | 2,603.1 |
Selling, general and administrative expenses | 5,009.6 | 4,060 | 2,027.8 |
Amortization expense | 352.8 | 275.1 | 79.5 |
Restructuring costs | 173.2 | 372.2 | 86.9 |
Acquisition-related costs | 64.2 | 355.4 | 174 |
Asset impairment charges | 0 | 0 | 5.5 |
Loss (gain) on sale of assets | 28.6 | (3.1) | (24.8) |
Operating income (loss) | 161.2 | (437.8) | 254.2 |
Interest expense, net | 265 | 218.6 | 81.9 |
Loss on early extinguishment of debt | 10.7 | 0 | 3.1 |
Other expense, net | 38 | 1.6 | 30.4 |
(Loss) income before income taxes | (152.5) | (658) | 138.8 |
Benefit for income taxes | (24.7) | (259.5) | (40.4) |
Net (loss) income | (127.8) | (398.5) | 179.2 |
Net income attributable to noncontrolling interests | 2 | 15.4 | 7.6 |
Net income attributable to redeemable noncontrolling interests | 39 | 8.3 | 14.7 |
Net (loss) income attributable to Coty Inc. | $ (168.8) | $ (422.2) | $ 156.9 |
Net (loss) income attributable to Coty Inc. per common share: | |||
Basic (dollars per shares) | $ (0.23) | $ (0.66) | $ 0.45 |
Diluted (dollars per shares) | $ (0.23) | $ (0.66) | $ 0.44 |
Weighted-average common shares outstanding: | |||
Basic (shares) | 749.7 | 642.8 | 345.5 |
Diluted (shares) | 749.7 | 642.8 | 354.2 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (127.8) | $ (398.5) | $ 179.2 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 115.7 | 121.9 | 83.3 |
Net unrealized derivative gain (loss) on cash flow hedges, net of taxes of $(2.2), $(7.7) and $0.3, respectively | 15.2 | 41.5 | (28.8) |
Pension and other post-employment benefits, net of tax of $1.5, $(25.1) and $7.9, respectively | 17.5 | 80.6 | (19.7) |
Total other comprehensive income (loss), net of tax | 148.4 | 244 | 34.8 |
Comprehensive income (loss) | 20.6 | (154.5) | 214 |
Comprehensive income attributable to noncontrolling interests: | |||
Net income | 2 | 15.4 | 7.6 |
Foreign currency translation adjustment | 0.5 | (0.1) | 0.1 |
Total comprehensive income attributable to noncontrolling interests | 2.5 | 15.3 | 7.7 |
Comprehensive income attributable to redeemable noncontrolling interests: | |||
Net income | 39 | 8.3 | 14.7 |
Foreign currency translation adjustment | 0 | 0 | 0.4 |
Total comprehensive income attributable to redeemable noncontrolling interests | 39 | 8.3 | 15.1 |
Comprehensive (loss) income attributable to Coty Inc. | $ (20.9) | $ (178.1) | $ 191.2 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized derivative gain (loss) on cash flow hedges, tax (benefit) | $ (2.2) | $ (7.7) | $ 0.3 |
Pension and other post-employment benefits adjustment, tax (benefit) | $ 1.5 | $ (25.1) | $ 7.9 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 331.6 | $ 535.4 |
Restricted cash | 30.6 | 35.3 |
Trade receivables—less allowances of $81.8 and $58.5, respectively | 1,536 | 1,470.3 |
Inventories | 1,148.9 | 1,052.6 |
Prepaid expenses and other current assets | 603.9 | 487.9 |
Total current assets | 3,651 | 3,581.5 |
Property and equipment, net | 1,680.8 | 1,632.1 |
Goodwill | 8,607.1 | 8,555.5 |
Other intangible assets, net | 8,284.4 | 8,425.2 |
Deferred income taxes | 107.4 | |
Deferred income taxes | 72.6 | |
Other noncurrent assets | 299.5 | 281.3 |
TOTAL ASSETS | 22,630.2 | 22,548.2 |
Current liabilities: | ||
Accounts payable | 1,928.6 | 1,732.1 |
Accrued expenses and other current liabilities | 1,844.4 | 1,796.4 |
Short-term debt and current portion of long-term debt | 218.9 | 209.1 |
Income and other taxes payable | 52.1 | 66 |
Total current liabilities | 4,044 | 3,803.6 |
Long-term debt, net | 7,305.4 | 6,928.3 |
Pension and other post-employment benefits | 533.3 | 549.2 |
Deferred income taxes | 842.5 | 924.9 |
Other noncurrent liabilities | 388.5 | 473.4 |
Total liabilities | 13,113.7 | 12,679.4 |
COMMITMENTS AND CONTINGENCIES | ||
REDEEMABLE NONCONTROLLING INTERESTS | 661.3 | 551.1 |
EQUITY: | ||
Preferred stock, $0.01 par value; 20.0 shares authorized; 5.0 and 4.2 issued and outstanding, at June 30, 2018 and 2017, respectively | 0 | 0 |
Common stock, value | 8.1 | 8.1 |
Additional paid-in capital | 10,750.8 | 11,203.2 |
Accumulated deficit | (626.2) | (459.2) |
Accumulated other comprehensive income | 158.8 | 4.4 |
Treasury stock—at cost, shares: 65.0 at June 30, 2018 and 2017, respectively | (1,441.8) | (1,441.8) |
Total Coty Inc. stockholders’ equity | 8,849.7 | 9,314.7 |
Noncontrolling interests | 5.5 | 3 |
Total equity | 8,855.2 | 9,317.7 |
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | $ 22,630.2 | $ 22,548.2 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Trade receivables, allowances | $ 81.8 | $ 58.5 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (shares) | 5,000,000 | 4,200,000 |
Preferred stock, shares outstanding (shares) | 5,000,000 | 4,200,000 |
Treasury stock, at cost, shares (shares) | 65,000,000 | 65,000,000 |
Common Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 815,800,000 | 812,900,000 |
Common stock, shares outstanding (shares) | 750,700,000 | 747,900,000 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - USD ($) shares in Millions, $ in Millions | Total | Common Class A | Series A Preferred Stock | Total Coty Inc. Stockholders’ Equity | Total Coty Inc. Stockholders’ EquitySeries A Preferred Stock | Preferred Stock | Common StockCommon Class A | Common StockCommon Class B | Additional Paid-in Capital | Additional Paid-in CapitalSeries A Preferred Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Noncontrolling Interest |
BALANCE at Jun. 30, 2015 | $ 984.7 | $ 969.8 | $ 0 | $ 1.3 | $ 2.6 | $ 2,044.4 | $ (193.9) | $ (274) | $ (610.6) | $ 14.9 | ||||
BALANCE (shares) at Jun. 30, 2015 | 1.9 | 134 | 262 | 35.2 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Purchase of Class A Common Stock | (794.9) | $ (767) | (794.9) | $ (794.9) | ||||||||||
Purchase of Class A Common Stock (shares) | 27.4 | 28.4 | ||||||||||||
Exercise of employee stock options | 44.8 | 44.8 | $ 0.1 | 44.7 | ||||||||||
Exercise of employee stock options (shares) | 4.7 | |||||||||||||
Cancellation of Preferred Stock | (0.1) | (0.1) | (0.1) | |||||||||||
Cancellation of Preferred Stock (shares) | (0.2) | |||||||||||||
Reclassification of Class A Common Stock from liability to APIC | 13.8 | 13.8 | 13.8 | |||||||||||
Share-based compensation expense | 20.6 | $ 1.6 | 20.6 | $ 1.6 | 20.6 | $ 1.6 | ||||||||
Dividends | (89.8) | (89.8) | (89.8) | |||||||||||
Net income (loss) | 164.5 | 156.9 | 156.9 | 7.6 | ||||||||||
Other comprehensive income (loss) | 34.4 | 34.3 | 34.3 | 0.1 | ||||||||||
Proceeds from redeemable noncontrolling interests | 15.7 | 15.7 | ||||||||||||
Exercise of employee stock options and restricted stock units and related tax benefits | 3.2 | 3.2 | 3.2 | |||||||||||
BALANCE at Jun. 30, 2016 | 367.1 | 360.2 | $ 0 | $ 1.4 | $ 2.6 | 2,038.4 | (37) | (239.7) | $ (1,405.5) | 6.9 | ||||
BALANCE (shares) at Jun. 30, 2016 | 1.7 | 138.7 | 262 | 63.6 | ||||||||||
BALANCE at Jun. 30, 2015 | 86.3 | |||||||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||||||||||||||
Reclassification of common stock/stock options to liability | 14.7 | |||||||||||||
Reclassification of Class A Common Stock from liability to APIC | 0.4 | |||||||||||||
Proceeds from redeemable noncontrolling interests | (14.8) | |||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (10.1) | |||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (3.2) | |||||||||||||
BALANCE at Jun. 30, 2016 | 73.3 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of Class A Common Stock for acquisition | 9,628.6 | 9,628.6 | $ 4.1 | 9,624.5 | ||||||||||
Issuance of Class A Common Stock for Acquisition (shares) | (409.7) | |||||||||||||
Issuance of Preferred Stock (shares) | 2.5 | |||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 262 | (262) | ||||||||||||
Conversion of Common Stock | $ 2.6 | $ (2.6) | ||||||||||||
Purchase of Class A Common Stock | (36.3) | $ (36.3) | (36.3) | $ (36.3) | ||||||||||
Purchase of Class A Common Stock (shares) | 1.4 | 1.4 | ||||||||||||
Exercise of employee stock options and settlement of restricted stock units (shares) | 2.5 | |||||||||||||
Dividends ($0.500 per Common Share) | 22.8 | 22.8 | 22.8 | |||||||||||
Share-based compensation expense | 20 | 20 | 20 | |||||||||||
Dividends | (375) | (375) | (375) | |||||||||||
Net income (loss) | (406.8) | (422.2) | (422.2) | 15.4 | ||||||||||
Other comprehensive income (loss) | 244 | 244.1 | 244.1 | (0.1) | ||||||||||
Proceeds from redeemable noncontrolling interests | 10 | 10 | ||||||||||||
Reclassification of noncontrolling interest to mandatory redeemable financial interest | (49.9) | (40.7) | (40.7) | (9.2) | ||||||||||
Exercise of employee stock options and restricted stock units and related tax benefits | (86.8) | (86.8) | (86.8) | |||||||||||
BALANCE at Jun. 30, 2017 | 9,317.7 | 9,314.7 | $ 0 | $ 8.1 | $ 0 | 11,203.2 | (459.2) | 4.4 | $ (1,441.8) | 3 | ||||
BALANCE (shares) at Jun. 30, 2017 | 4.2 | 812.9 | 0 | 65 | ||||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||||||||||||||
Reclassification of common stock/stock options to liability | 8.3 | |||||||||||||
Reclassification of Class A Common Stock from liability to APIC | 0 | |||||||||||||
Proceeds from redeemable noncontrolling interests | (32.3) | |||||||||||||
Redeemable noncontrolling interest due to business combination | 415.9 | |||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 86.8 | |||||||||||||
Adjustment to repurchase of redeemable noncontrolling interests | (0.9) | |||||||||||||
BALANCE at Jun. 30, 2017 | 551.1 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
BALANCE as adjusted—July 1, 2017 | 9,326 | 9,323 | $ 0 | $ 8.1 | 11,203.2 | (450.9) | 4.4 | $ (1,441.8) | 3 | |||||
Cumulative effect of new accounting principle in period of adoption | 8.3 | 8.3 | 8.3 | |||||||||||
Issuance of Class A Common Stock for acquisition | 0 | 0 | ||||||||||||
Cancellation of Preferred Stock (in shares) | (0.2) | |||||||||||||
Stock Issued During Period, Value, New Issues | $ 0 | |||||||||||||
Issuance of Preferred Stock (shares) | 1 | |||||||||||||
Purchase of Class A Common Stock | (3.6) | $ 0 | ||||||||||||
Purchase of Class A Common Stock (shares) | 0 | |||||||||||||
Exercise of employee stock options | $ 22.6 | 22.6 | 22.6 | |||||||||||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | (3.6) | (3.6) | ||||||||||||
Exercise of employee stock options (shares) | 2.3 | 2.9 | ||||||||||||
Cancellation of Preferred Stock | $ 0 | 0 | ||||||||||||
Share-based compensation expense | 31.5 | 31.5 | 31.5 | |||||||||||
Dividends ($0.500 per Common Share) | (377.6) | (377.6) | (377.6) | |||||||||||
Share-based compensation expense | (166.8) | |||||||||||||
Net income (loss) | (168.8) | (168.8) | 2 | |||||||||||
Other comprehensive income (loss) | 148.4 | 147.9 | 147.9 | 0.5 | ||||||||||
Temporary equity, stock issued during period, value, new issues | 7.4 | |||||||||||||
Proceeds from redeemable noncontrolling interests | (54.3) | |||||||||||||
Exercise of employee stock options and restricted stock units and related tax benefits | (134.9) | (134.9) | (134.9) | |||||||||||
BALANCE at Jun. 30, 2018 | 8,855.2 | 8,849.7 | $ 0 | $ 8.1 | 10,750.8 | (626.2) | 158.8 | $ (1,441.8) | $ 5.5 | |||||
BALANCE (shares) at Jun. 30, 2018 | 5 | 815.8 | 65 | |||||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||||||||||||||
Reclassification of common stock/stock options to liability | 39 | |||||||||||||
Reclassification of Class A Common Stock from liability to APIC | (17) | |||||||||||||
Proceeds from redeemable noncontrolling interests | 0.2 | |||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 134.9 | |||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (7.4) | (7.4) | (7.4) | |||||||||||
BALANCE at Jun. 30, 2018 | 661.3 | |||||||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||||||||||||||
Reclassifications of Temporary to Permanent Equity | $ 17 | $ 17 | $ 17 | |||||||||||
Cumulative effect of new accounting principle in period of adoption | $ (6.5) | $ 6.5 |
CONSOLIDATED STATEMENTS OF EQU8
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Parentheticals) - $ / shares | May 09, 2018 | Feb. 08, 2018 | Nov. 09, 2017 | Aug. 22, 2017 | May 10, 2017 | Feb. 09, 2017 | Dec. 09, 2016 | Aug. 01, 2016 | Sep. 11, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Statement of Stockholders' Equity [Abstract] | ||||||||||||
Dividends declared (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.275 | $ 0.25 | $ 0.5 | $ 0.65 | $ 0.25 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income | $ (127.8) | $ (398.5) | $ 179.2 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 737 | 555.1 | 232 |
Asset impairment charges | 0 | 0 | 5.5 |
Deferred income taxes | (101.7) | (390) | (139.2) |
Provision for bad debts | 24 | 23.4 | 21.9 |
Provision for pension and other post-employment benefits | 32.4 | 53.6 | 9.2 |
Share-based compensation | 30.6 | 24.6 | 22.2 |
Loss (gain) on sale of assets | 28.6 | (3.1) | (24.8) |
Loss on early extinguishment of debt | 10.7 | 0 | 3.1 |
Other | (1.3) | 25.9 | 12.8 |
Change in operating assets and liabilities, net of effects from purchase of acquired companies: | |||
Trade receivables | (79.6) | (279.8) | (44.5) |
Inventories | (60) | 162.3 | 27.2 |
Prepaid expenses and other current assets | (107.6) | (105.7) | 6.7 |
Accounts payable | 159.5 | 540.9 | 148.2 |
Accrued expenses and other current liabilities | (22.5) | 479.2 | 23.3 |
Income and other taxes payable | (83.2) | 85 | 15.7 |
Other noncurrent assets | (17.9) | 23.4 | 9 |
Other noncurrent liabilities | (7.5) | (38.8) | (6.1) |
Net cash provided by operating activities | 413.7 | 757.5 | 501.4 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (446.4) | (432.3) | (150.1) |
Payments for business combinations, net of cash acquired | (278) | (742.6) | (908.7) |
Proceeds from sale of assets | 36.8 | 11.3 | 29.2 |
Payments related to loss on foreign currency contracts | 0 | 0 | (29.6) |
Net cash used in investing activities | (687.6) | (1,163.6) | (1,059.2) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from short-term debt, original maturity more than three months | 0 | 9.5 | 19.1 |
Repayments of short-term debt, original maturity more than three months | 0 | (10.2) | (28.3) |
Net proceeds from (repayments of) short-term debt, original maturity less than three months | 21 | (49.2) | 25.4 |
Proceeds from revolving loan facilities | 3,185.5 | 2,244.4 | 1,940 |
Repayments of revolving loan facilities | (3,643.2) | (2,074.4) | (1,430) |
Proceeds from term loans and other long term debt | 7,467.2 | 1,075 | 3,506.2 |
Repayments of term loans and other long term debt | (6,492.6) | (136.1) | (2,499.4) |
Dividend payment | (375.8) | (372.6) | (89) |
Net proceeds from issuance of Class A Common Stock | 22.6 | 22.8 | 44.7 |
Payments for purchases of Class A Common Stock | 0 | (36.3) | (794.9) |
Net proceeds (payments) for foreign currency contracts | 12.4 | (1.2) | (9.7) |
Distributions to mandatorily redeemable financial interests, redeemable noncontrolling interests and noncontrolling interests | (66.4) | (42.3) | (33.2) |
Purchase of additional mandatorily redeemable financial interests, redeemable noncontrolling interests and noncontrolling interests | 0 | (9.8) | (0.7) |
Payment of debt issuance costs | (55.1) | (24.4) | (57.6) |
Proceeds from (Payments for) Other Financing Activities | (6.3) | 0 | 0 |
Net cash provided by financing activities | 69.3 | 595.2 | 592.6 |
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (3.9) | 9.2 | (3.7) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (208.5) | 198.3 | 31.1 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 570.7 | 372.4 | 341.3 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period | 362.2 | 570.7 | 372.4 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | |||
Cash paid during the year for interest | 242.8 | 190.2 | 90.3 |
Cash paid during the year for income taxes, net of refunds received | 124.6 | 90.1 | 118.1 |
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES: | |||
Accrued capital expenditure additions | 158.8 | 106.7 | 78 |
Non-cash reclassification from noncontrolling interest to mandatorily redeemable financial interest | 0 | 49.9 | 0 |
Burberry contingent consideration | 8.3 | 0 | 0 |
Non-cash stock issued for business combination | |||
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES: | |||
Non-cash stock issued for business combination | 0 | 9,628.6 | 0 |
Non-cash debt assumed for business combination | |||
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES: | |||
Non-cash acquisition of additional redeemable noncontrolling interests | 0 | 1,943 | 0 |
Non-cash capital contribution associated with special share purchase transaction | |||
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES: | |||
Non-cash capital contribution associated with special share purchase transaction | 0 | 0 | 13.8 |
Non-cash acquisition of additional redeemable noncontrolling interests | |||
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES: | |||
Non-cash acquisition of additional redeemable noncontrolling interests | $ 0 | $ 415.9 | $ 10.1 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Coty Inc. and its subsidiaries (collectively, the “Company” or “Coty”) manufacture, market, sell and distribute branded beauty products, including fragrances, color cosmetics, hair care products and skin & body related products throughout the world. Coty is a global beauty company with a rich entrepreneurial history and an iconic portfolio of brands. 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 2018 ” refer to the fiscal year ending June 30, 2018 . The Company’s sales generally increase during the second fiscal quarter as a result of increased demand associated with the winter holiday season. Financial performance, working capital requirements, sales, cash flows and borrowings generally experience variability during the three to six months preceding the holiday season. Product innovations, new product launches and the size and timing of orders from the Company’s customers may also result in variability. The Company also generally experiences an increase in sales during its fourth fiscal quarter in its Professional Beauty segment as a result of higher demand prior to the summer holiday season. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2018 | |
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 States of America, United Arab Emirates, Kingdom of Saudi Arabia, Malaysia, Indonesia, Philippines, Singapore, Hong Kong, China, South Korea, Thailand and Taiwan where the Company has the ability to exercise controlling influence. Ownership interests of noncontrolling parties are presented as mandatorily redeemable financial interests, noncontrolling interests or redeemable noncontrolling interests, as applicable. 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, pension benefit costs, the assessment of goodwill, other intangible assets and long-lived assets for impairment, income taxes, and redeemable noncontrolling interests. 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. Restricted Cash Restricted cash represents funds that are not readily available for general purpose cash needs due to contractual limitations. Restricted cash is classified as a current or long-term asset based on the timing and nature of when or how the cash is expected to be used or when the restrictions are expected to lapse. As of June 30, 2018 and June 30, 2017 , the Company had restricted cash of $30.6 and $35.3 , respectively, included in Restricted cash in the Consolidated Balance Sheets. The restricted cash balance as of June 30, 2018 provides collateral for certain bank guarantees on rent, customs and duty accounts. Restricted cash is included as a component of Cash, cash equivalents, and restricted cash in the Consolidated Statement of Cash Flows. 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 net realizable 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 net 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 5-34 years Customer relationships 2-28 years Trademarks 2-30 years Product formulations and technology 3-29 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. Goodwill is allocated and evaluated at the reporting unit level, which are the Company’s operating segments. The Company identifies its operating 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. Luxury, Consumer Beauty and Professional Beauty 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. When testing goodwill for impairment, the Company has the option of first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as the basis to determine if it is necessary to perform a quantitative goodwill impairment test. In performing its qualitative assessment, the Company considers the extent to which unfavorable events or circumstances identified, such as changes in economic conditions, industry and market conditions or company specific events, could affect the comparison of the reporting unit’s fair value with its carrying amount. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is required to perform a quantitative impairment test. Quantitative 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 Company makes certain judgments and assumptions in allocating assets and liabilities to determine carrying values for its reporting units. Indefinite-lived other intangible assets principally consist of trademarks. 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 third parties 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 represented 2% , 2% and 3% of gross revenue after customer discounts and allowances in fiscal 2018 , 2017 and 2016 , respectively. Trade spending activities recorded as a reduction to gross revenue after customer discounts and allowances represented 8% , 7% , and 8% in fiscal 2018 , 2017 and 2016 , 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. Additionally, shipping costs, freight-in 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 $2,206.3 , $1,883.3 and $967.6 in fiscal 2018 , 2017 and 2016 , respectively. Included in advertising and promotional costs are $120.9 , $107.4 , and $65.0 of depreciation of marketing furniture and fixtures, such as product displays, in fiscal 2018 , 2017 and 2016 , respectively. Research and development costs are expensed as incurred and totaled $174.6 , $139.2 and $47.7 in fiscal 2018 , 2017 and 2016 , respectively. Share-Based Compensation Common Stock Common shares are available to be awarded for the exercise of phantom units, vested stock options, the settlement of restricted stock units (“RSUs”), and the conversion of Series A Preferred Stock. 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 22 — Share-Based Compensation Plans . The fair value of RSUs is determined on the date of grant based on the Company’s stock price. 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 portion that is liability accounted 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. The fair value of Series A Preferred Stock is determined using the binomial valuation model for fiscal 2018 and 2017 using the weighted-average assumptions discussed in Note 22 — Share-Based Compensation Plans . The fair value of Series A Preferred Stock was determined using the Black-Scholes valuation model for fiscal 2016 using the weighted-average assumptions discussed in Note 22 — Share-Based Compensation Plans . 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 (Loss) 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. Prior to the fourth quarter of fiscal 2017, the 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. In the fourth quarter of fiscal 2017 the Company adopted guidance issued by the Financial Accounting Standards Board (“FASB”) (as later discussed) which allows for presentation of deferred tax assets and liabilities as noncurrent. This guidance was adopted on a prospective basis and Deferred taxes in the Consolidated Balance Sheet for the year ended June 30, 2017 are presented as noncurrent. 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 considers how to recognize, measure, present and disclose in financial statements uncertain tax positions taken or expected to be taken on a tax return. 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. As a result of the 2017 Tax Act changing the U.S. to a modified territorial tax system, the Company no longer asserts that any of its undistributed foreign earnings are permanently reinvested. We do not expect to incur significant withholding or state taxes on future distributions. To the extent there remains a basis difference between the financial reporting and tax basis of an investment in a foreign subsidiary after the repatriation of the previously taxed income of $4,500.0 , the Company is permanently reinvested. 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. These costs can include employee separations, contract and lease terminations, and other direct exit costs. Employee severance and other termination benefits are primarily determined based on established benefit arrangements, local statutory requirements or historical practices. The Company recognizes these benefits when payment is probable and estimable. Additional elements of severance and termination benefits associated with non-recurring benefits are recognized ratably over each employee’s required future service period. Costs to terminate a contract before the end of its term are recognized and measured at their fair value when the Company gives written notice to the counterparty. For lease terminations, a liability based on the remaining lease rentals, reduced by estimated sublease rentals is measured at the cease-use date. All other costs are recognized as incurred. Other business realignment costs represent the incremental cost directly related to the restructuring activities which can include accelerated depreciation, professional or consulting fees and other internal costs including compensation related costs for dedicated internal resources. Other business realignment costs are generally recorded in Selling, general and administrative expenses in the Consolidated Statements of Operations. Charges for accelerated depreciation are recognized on long-lived assets that will be taken out of service before the end of their normal service, in which case depreciation estimates are revised to reflect the use of the asset over its shortened useful life. All other costs are recognized as incurred. 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. 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. 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 generally uses the following methodologies for valuing our significant acquired intangibles assets: • Trademarks (indefinite or finite) - The Company uses a relief from royalty method to value trademarks. The key assumptions for the model are forecasted net revenue, the royalty rate, the effective tax rate and the discount rate. • Customer relationships and license agreements - The Company uses an excess earnings method to value customer relationships and license agreements. The key assumptions for the model are forecasted net revenue, EBITDA, the estimated allocation of earnings between different classes of assets, the attrition rate, the effective tax rate and the discount rate. 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 Refer to Note 18 — Derivative Instruments for the Company’s policies for Derivative Instruments and Hedging Activities. Foreign Currency Exchange gains or losses incurred on non-financing foreign exchange currency 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 losses of $3.9 , $1.5 and $7.2 in fiscal 2018 , 2017 and 2016 , 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 Accumulated other comprehensive income (loss) (“AOCI/(L)”). Net gains (losses) of $8.5 , $(12.8) and $19.2 in fiscal 2018 , 2017 and 2016 , respectively, resulting from financing foreign exchange currency transactions are included in Interest expense, net in the Consolidated Statements of Operations. Net (losses) of nil , $(1.7) and $(29.4) in fiscal 2018 , 2017 and 2016 , respectively, resulting from acquisition-related foreign exchange currency transactions are included in Other expense, net in the Consolidated Statements of Operations. Recently Adopted Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which changes the classification and presentation of certain items within the statement of cash flows including, but not limited to, debt prepayment or debt extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investees. The Company early adopted the ASU during the fourth quarter of fiscal 2018 on a retrospective basis. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows for a reclassification of the stranded tax effects resulting from the enactment of “H.R.1”, formerly known as the “Tax Cuts and Jobs Act,” (“Tax Act”) from AOCI/(L) to Retained earnings. The amendment will be effective for the annual periods beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company adopted the ASU during June 2018. The impact of this adoption on the Company’s Consolidated Financial Statements was an increase of $6.5 to Accumulated deficit and an increase to AOCI/(L). During the first quarter of fiscal 2018, the Company adopted the amended FASB ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of accounting for share-based payment transactions. The adoption of the ASU did not have a material impact on the Company’s Consolidated Financial Statements. The primary impact of the new standard was the recognition of previously unrecognized excess tax benefits as an $8.3 cumulative-effect adjustment to Accumulated deficit as of July 1, 2017 to reflect a modified retrospective application. Prospectively, the excess tax benefits will be recorded as a component of Income tax expense as required, whereas they were previously recorded in Additional paid-in capital (“APIC”). Additionally, the ASU required that $3.6 related to shares withheld for employee taxes to be reported in Cash flows from financing activities for the year ended June 30, 2018 with an insignificant impact to prior periods. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which simplifies the measurement of inventories by requiring inventory to be measured at the lower of cost and net realizable value, rather than at the lower of cost or market. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company adopted ASU No. 2015-11 during the first quarter of fiscal 2018. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. Recently Issued and Not Yet Adopted Accounting Pronouncements Accounting Standard Update(s) Topic Effective Period Summary 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Fiscal 2020. Early adoption is permitted for the Company beginning in fiscal 2019. The FASB issued authoritative guidance for improvements to accounting for hedging activities. The amendments better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The Company is evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements and related disclosures. 2017-09 Scope of Modification Accounting Fiscal 2019. Early adoption is permitted for the Company beginning in fiscal 2018. The FASB issued authoritative guidance regarding changes to terms or conditions of share-based payment awards that require an entity to apply modification accounting. Under this amendment, an entity should not account for the effects of a modification if all of the following conditions are met: i) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified and original award (immediately before modification) is the same; ii) the vesting conditions of the modified and original award (immediately before modification) are the same; iii) the classification of the modified and original award (immediately before modification) as an equity or a liability instrument is the same. The Company is currently evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements. 2017-07 Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Fiscal 2019. Early adoption is permitted for the Company beginning in fiscal 2018. The FASB issued authoritative guidance that requires an employer to report the service cost component of an employee benefits plan in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost as defined in the current guidance are required to be presented in the income statement separately from the service cost component and outside the subtotal of income from operations, if one is presented. If separate line item or items are not used, the line item or items used in the income statement to present the other components of net periodic benefit cost must be disclosed. The amendment allows only the service cost component to be eligible for capitalization, when applicable. The Company is currently evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements. 2017-04 Simplifying the Test for Goodwill Impairment Fiscal 2021. Early adoption is permitted for the Company beginning in fiscal 2018. The FASB issued authoritative guidance that simplifies the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Under this amendment, an entity should recognize |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS P&G Beauty Business Acquisition On October 1, 2016, the Company acquired the P&G Beauty Business in order to further strengthen the Company’s position in the global beauty industry. The purchase price was $11,570.4 and consisted of $9,628.6 of total equity consideration and $1,941.8 of assumed debt. The Company issued 409.7 million shares of common stock to the former holders of Galleria Co. (“Galleria”) (which held the assets of the P&G Beauty Business) common stock, together with cash in lieu of fractional shares. Coty Inc. is considered to be the acquiring company for accounting purposes. The Company has finalized the valuation of assets acquired and liabilities assumed for the P&G Beauty Business acquisition. The Company recognized certain measurement period adjustments as disclosed below during the quarter ended September 30, 2017. The measurement period for the P&G Beauty Business acquisition closed at the end of the first quarter of fiscal 2018. The following table summarizes the allocation of the purchase price to the net assets of the P&G Beauty Business as of the October 1, 2016 acquisition date: Estimated (a) Measurement (b) Final fair value Estimated Cash and cash equivalents $ 387.6 $ — $ 387.6 Inventories 465.5 — 465.5 Property, plant and equipment 742.9 (16.9 ) 726.0 3 - 40 Goodwill 5,528.4 35.5 5,563.9 Indefinite Trademarks — indefinite 1,575.0 — 1,575.0 Indefinite Trademarks — finite 747.7 — 747.7 10 - 30 Customer relationships 1,074.2 18.8 1,093.0 2 - 26 License agreements 2,299.0 12.0 2,311.0 4 - 30 Product formulations 183.8 (10.0 ) 173.8 5 - 28 Other net working capital (23.2 ) — (23.2 ) Net other assets 64.6 (33.7 ) 30.9 Unfavorable contract liabilities (130.0 ) — (130.0 ) Pension liabilities (404.1 ) — (404.1 ) Deferred tax liability, net (941.0 ) (5.7 ) (946.7 ) Total purchase price $ 11,570.4 $ — $ 11,570.4 (a) As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017. The business combination was completed in fiscal 2017. (b) The Company recorded measurement period adjustments in the first quarter of fiscal 2018. The measurement period adjustments related to Customer relationships, License agreements and Product formulations, collectively, of $20.8 , were a result of changes in assumptions that were used at the date of acquisition for valuation purposes including allocation of costs and synergies. The measurement period adjustments related to Property, plant and equipment and Net other assets of ($16.9) and ($33.7) , respectively, primarily related to obtaining new facts and circumstances about acquired assets and liabilities that existed at the acquisition date. The increase to Deferred tax liability, net was primarily a result of the change of the jurisdictional allocation of the tangible and intangible assets. All measurement period adjustments were offset against Goodwill. Goodwill is primarily attributable to the anticipated company-specific synergies and economies of scale expected from the operations of the combined company. The synergies include certain cost savings, operating efficiencies, and leverage of the acquired brand recognition to be achieved as a result of the P&G Beauty Business acquisition. Goodwill is not expected to be deductible for tax purposes. Goodwill of $1,889.8 , $3,188.1 and $486.0 is allocated to the Luxury, Consumer Beauty and Professional Beauty segments, respectively. The allocation of goodwill to segments was based on the relative fair values of expected future cash flows. ghd Acquisition On November 21, 2016, the Company completed the acquisition of 100% of the equity interest of Lion/Gloria Topco Limited which held the net assets of ghd (“ghd”) which stands for “Good Hair Day,” a premium brand in high-end hair styling appliances. The ghd acquisition further strengthens the Company’s professional hair category and is included in the Professional Beauty segment’s results after the acquisition date. The total cash consideration paid net of acquired cash and cash equivalents was £430.2 million , the equivalent of $531.5 , at the time of closing. The Company has finalized the valuation of assets acquired and liabilities assumed for the ghd acquisition. The Company recognized certain measurement period adjustments as disclosed below during the six months ended December 31, 2017. The measurement period for the ghd acquisition closed on November 21, 2017. The following table summarizes the allocation of the purchase price to the net assets of ghd as of the November 21, 2016 acquisition date: Estimated (a) Measurement (b) Final fair value Estimated Cash and cash equivalents $ 7.1 $ — $ 7.1 Inventories 79.6 — 79.6 Property, plant and equipment 10.0 — 10.0 3 - 10 Goodwill 174.4 24.6 199.0 Indefinite Indefinite-lived other intangible assets 163.8 (14.8 ) 149.0 Indefinite Customer relationships 36.6 (2.3 ) 34.3 11 - 25 Technology 146.6 (17.2 ) 129.4 11 - 17 Other net working capital (16.6 ) 4.7 (11.9 ) Net other assets 0.9 (0.9 ) — Deferred tax liability, net (63.9 ) 5.9 (58.0 ) Total purchase price $ 538.5 $ — $ 538.5 (a) As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017. The business combination was completed in fiscal 2017. (b) The Company recorded measurement period adjustments in the first half of fiscal 2018. The measurement period adjustments related to decreases to Technology, Indefinite-lived other intangible assets and Customer relationships of $17.2 , $14.8 and $2.3 , respectively, and a decrease to the deferred tax liability of $5.9 were a result of changes in assumptions that were used at the date of acquisition for valuation purposes. The measurement period adjustments related to Other net working capital of $4.7 were a result of obtaining new facts and circumstances about acquired accrued expenses that existed as of the acquisition date. All measurement period adjustments were offset against Goodwill. Goodwill is not expected to be deductible for tax purposes. The goodwill is attributable to expected synergies resulting from integrating ghd’s products into the Company’s existing sales channels. Goodwill of $49.0 , $42.0 , and $108.0 is allocated to the Luxury, Consumer Beauty and Professional Beauty segments, respectively. The allocation of goodwill to the segments was due to the reduction in corporate and regional overhead allocated to these segments due to the addition of the ghd acquisition. Younique Acquisition On February 1, 2017, the Company completed its acquisition of 60% of the membership interest in Foundation, LLC (“Foundation”), which held the net assets of Younique, LLC, a Utah limited liability company (“Younique”), for cash consideration of $600.0 , net of acquired cash and assumed debt, and an additional payment of $7.5 for working capital adjustments paid in fiscal 2018. The existing Younique membership holders contributed their 100% membership interest in Younique to Foundation in exchange for a 40% membership interest in Foundation and $607.5 of cash consideration. Younique strengthens the Consumer Beauty segment’s product offerings. The Company accounts for the noncontrolling interest portion of the acquisition as a redeemable noncontrolling interest. The Company has finalized the valuation of assets acquired and liabilities assumed for the Younique acquisition. The Company recognized certain measurement period adjustments as disclosed below during the nine months ended March 31, 2018. The measurement period for the Younique acquisition closed on February 1, 2018. The following table summarizes the allocation of the purchase price to the net assets of Younique as of the February 1, 2017 acquisition date: Estimated (a) Measurement (b) Final fair value Estimated Cash and cash equivalents $ 17.5 $ — $ 17.5 Inventories 88.1 — 88.1 Property, plant and equipment 67.1 — 67.1 3 - 8 Goodwill 575.3 (0.3 ) 575.0 Indefinite Trademark — finite 123.0 — 123.0 20 Product formulations 0.6 — 0.6 5 Customer relationships 197.0 — 197.0 7 - 10 Other net working capital (27.7 ) 0.3 (27.4 ) Short-term and long-term debt (1.2 ) — (1.2 ) Total equity value 1,039.7 — 1,039.7 Redeemable noncontrolling interest 415.9 — 415.9 Net cash and debt acquired 16.3 — 16.3 Total purchase price $ 607.5 $ — $ 607.5 (a) As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017. The business combination was completed in fiscal 2017. (b) The Company recorded measurement period adjustments in the nine months ended March 31, 2018 to account for an increase in the estimated other net working capital of $0.3 as of the February 1, 2017 acquisition date. This adjustment is offset against Goodwill. Goodwill is expected to be deductible for tax purposes. The goodwill is attributable to expected synergies resulting from certain manufacturing and supply chain cost savings. Goodwill of $95.0 , $420.0 and $60.0 is allocated to the Luxury, Consumer Beauty and Professional Beauty segments, respectively. The allocation of goodwill to the segments was due to the reduction in corporate and regional overhead allocated to these segments due to the addition of the Younique acquisition. Burberry Beauty Business Acquisition On October 2, 2017, the Company acquired the exclusive global license rights and other related assets for the Burberry Limited (“Burberry”) luxury fragrances, cosmetics and skincare business (the “Burberry Beauty Business”). The Burberry Beauty Business acquisition is expected to further strengthen the Company’s position in the global luxury beauty industry. Total purchase consideration, after post-closing adjustments, was £191.7 million , the equivalent of $256.3 , at the time of closing. Included in the purchase price was cash consideration of £183.3 million , the equivalent of $245.1 , at the time of closing, in addition to £8.4 million , the equivalent of $11.2 , of estimated contingent consideration, at the time of closing. The future contingent consideration payments will range from zero to £16.7 million and will be payable on a quarterly basis to Burberry as certain items of inventory transferred to the Company at the acquisition date are subsequently used or sold. The amount of the contingent consideration recorded was estimated as of the acquisition date and is subject to change based on the related inventory usage. The fair value of the contingent consideration was determined by estimating the future inventory usage and corresponding payments over a four-year period, with the contingent payments being made in each of the respective years. The estimate of the contingent consideration payable is recorded in Other noncurrent liabilities in the Consolidated Balance Sheet. From the date of acquisition through the end of fiscal 2018, the Company made £2.1 million in contingent payments. The Company estimated the preliminary fair value of acquired assets and liabilities as of the date of acquisition based on information currently available. The Company is still evaluating the fair value of assets acquired and liabilities assumed, therefore, the final allocation of the purchase price has not been completed. As the Company finalizes the fair value of assets acquired and liabilities assumed, additional purchase price adjustments may be recorded during the measurement period. The Company will reflect measurement period adjustments, if any, in the period in which the adjustments are recognized. The following table summarizes the estimated allocation of the purchase price to the net assets of the Burberry Beauty Business as of the October 2, 2017 acquisition date: Estimated (a) Measurement (b) Estimated fair value as adjusted Estimated Inventories $ 55.1 $ (7.2 ) $ 47.9 Property, plant and equipment 5.8 — $ 5.8 1 - 3 License and distribution rights 129.7 48.1 $ 177.8 3 - 15 Goodwill 68.2 (33.3 ) $ 34.9 Indefinite Net other liabilities (8.7 ) (1.4 ) $ (10.1 ) Total purchase price $ 250.1 $ 6.2 $ 256.3 (a) As previously reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2018. (b) The Company recorded measurement period adjustments in the third and fourth quarters of fiscal 2018. The measurement period adjustments related to an increase in the value of the License and distribution rights and a decrease in the Inventory value were due to changes in assumptions that were used at the date of acquisition for valuation purposes. The measurement period adjustment related to an increase in net other liabilities acquired was a result of obtaining new facts and circumstances about acquired accrued expenses that existed as of the acquisition date. In addition, the Company adjusted the estimate of contingent consideration payments due to the seller based on gathering additional information about facts and circumstances that existed at the acquisition date regarding the acquired inventory for which the contingent payments are based. All measurement period adjustments were offset against Goodwill. Goodwill is expected to be deductible for tax purposes. The goodwill is attributable to expected synergies resulting from integrating the Burberry Beauty Business products into the Company’s existing sales channels. Goodwill of $23.4 , $6.2 and $5.3 is allocated to the Luxury, Consumer Beauty and Professional Beauty segments, respectively. The allocation of goodwill to the segments were due to the reduction in corporate and regional overhead allocated to these segments due to the addition of the Burberry Beauty Business acquisition. For the fiscal year ended June 30, 2018 , net revenues and net loss of the Burberry Beauty Business included in the Company’s Consolidated Statements of Operations were $87.0 and $31.3 , respectively. Net loss for the fiscal year ended June 30, 2018 was impacted by the amortization of certain asset values based on the estimated fair values of the acquired assets as determined during the initial purchase accounting, such as the amortization of inventory step-up and finite-lived intangibles. This amortization impacted the net loss for the fiscal year ended June 30, 2018 by $10.3 , net of tax. Hypermarcas Brands Acquisition On February 1, 2016, the Company completed the acquisition of 100% of the net assets of the personal care and beauty business of Hypermarcas S.A. (the “Hypermarcas Brands”) pursuant to a share purchase agreement in order to further strengthen its position in the Brazilian beauty and personal care market. This acquisition was included in the Consumer Beauty segment. The total consideration of R$3,599.5 million , the equivalent of $901.9 , at the time of closing, was paid during fiscal 2016. The Company has finalized the valuation of assets acquired and liabilities assumed for the Hypermarcas Brands. The measurement period for the Hypermarcas Brands was closed as of September 30, 2016. The following table summarizes the allocation of the purchase price to the net assets acquired as of the February 1, 2016 acquisition date: Final Estimated Cash and cash equivalents $ 11.1 Inventories 45.6 Property, plant and equipment 95.4 2 - 40 Goodwill 537.1 Indefinite Trademarks — indefinite 147.1 Indefinite Trademarks — finite 10.3 5 - 15 Customer relationships 44.6 13 - 28 Product formulations 12.8 3 Other net working capital 0.7 Net other assets 1.4 Deferred tax liability, net (4.2 ) Total purchase price $ 901.9 The Company has completed the local tax requirements allowing approximately $500.0 of goodwill and $44.6 of customer relationships assets to be tax deductible. Unaudited Pro Forma Information The unaudited pro forma financial information in the table below summarizes the combined results of the Company and the P&G Beauty Business, Younique and the Hypermarcas Brands (the “Pro Forma Acquisitions”). The information in the table below is presented to reflect the pro forma results as if the combination of the P&G Beauty Business and Younique occurred on July 1, 2015 and the Hypermarcas Brands occurred on July 1, 2014. The fiscal years ended June 30, 2017 and 2016 include pro forma adjustments for all the Pro Forma Acquisitions. The pro forma adjustments include incremental amortization of intangible assets and depreciation adjustment of property, plant and equipment, based on the values of each asset as well as costs related to financing the Pro Forma Acquisitions. The unaudited pro forma information also includes non-recurring acquisition-related costs as well as amortization of the inventory step-up. Pro forma adjustments were tax-effected at the Company’s statutory rates. For the pro forma basic and diluted earnings per share calculation, 409.7 million shares issued in connection with the P&G Beauty Business acquisition were considered as if issued on July 1, 2015. The pro forma information is presented for informational purposes only and may not be indicative of the results of operations that would have been achieved if the acquisitions of the P&G Beauty Business and Younique had taken place on July 1, 2015 and the acquisition of the Hypermarcas Brands on July 1, 2014 or that may occur in the future, and does not reflect future synergies, integration costs, or other such costs or savings. The pro forma information for the fiscal years ended 2017 and 2016, respectively, are as follows: Year Ended June 30, 2017 (a) 2016 (b) Pro forma Net revenues $ 8,889.2 $ 8,219.6 Pro forma Net (loss) income (101.2 ) 171.2 Pro forma Net (loss) income attributable to Coty Inc. (142.7 ) 135.5 Pro forma Net (loss) income attributable to Coty Inc. per common share Basic $ (0.19 ) $ 0.18 Diluted $ (0.19 ) $ 0.18 (a) For the twelve months ended June 30, 2017, the pro forma information excluded $476.3 of non-recurring acquisition-related costs and $89.6 of amortization of inventory step up, respectively. (b ) For the twelve months ended June 30, 2016, the pro forma information included $45.8 of non-recurring acquisition-related costs and $80.1 of amortization of inventory step up, respectively. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company’s organizational structure is category focused, putting the consumer first, by specifically targeting how and where they shop and what and why they purchase. Operating and reportable segments (referred to as “segments”) reflect the way the Company is managed and 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 three divisions are its operating segments and reportable segments. Each division has full end-to-end responsibility to optimize consumers’ beauty experience in the relevant categories and channels. The operating and reportable segments are: Luxury — primarily focused on prestige fragrances, premium skin care and premium cosmetics; Consumer Beauty — primarily focused on color cosmetics, retail hair coloring and styling products, mass fragrance, mass skin care and body care; Professional Beauty — primarily focused on hair and nail care products for professionals. Certain revenues and shared costs and the results of corporate initiatives are being managed outside of the three segments by Corporate. 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 restructuring costs, costs related to acquisition activities and certain other expense items not attributable to ongoing operating activities of the segments. 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 10 — Goodwill and Other Intangible Assets, net . Year Ended June 30, SEGMENT DATA 2018 2017 2016 Net revenues: Luxury $ 3,210.5 $ 2,566.6 $ 1,836.6 Consumer Beauty 4,268.1 3,688.2 2,262.5 Professional Beauty 1,919.4 1,395.5 250.0 Total $ 9,398.0 $ 7,650.3 $ 4,349.1 Depreciation and amortization: Luxury $ 253.3 $ 203.5 $ 99.1 Consumer Beauty 340.4 256.2 114.6 Professional Beauty 143.3 95.4 18.0 Corporate — — 0.3 Total $ 737.0 $ 555.1 $ 232.0 Operating income (loss): Luxury $ 248.7 $ 158.0 $ 228.9 Consumer Beauty 278.9 261.2 246.5 Professional Beauty 119.4 78.5 68.0 Corporate (485.8 ) (935.5 ) (289.2 ) Total $ 161.2 $ (437.8 ) $ 254.2 Reconciliation: Operating income (loss) $ 161.2 $ (437.8 ) $ 254.2 Interest expense, net 265.0 218.6 81.9 Loss on early extinguishment of debt 10.7 — 3.1 Other expense, net 38.0 1.6 30.4 (Loss) income before income taxes $ (152.5 ) $ (658.0 ) $ 138.8 The Company has determined its geographical structure to be North America (Canada and the United States), Europe and ALMEA (Asia, Latin America, the Middle East, Africa and Australia). Year Ended June 30, GEOGRAPHIC DATA 2018 2017 2016 Net revenues: North America $ 2,966.0 $ 2,506.9 $ 1,413.0 Europe 4,201.6 3,325.7 1,924.6 ALMEA 2,230.4 1,817.7 1,011.5 Total $ 9,398.0 $ 7,650.3 $ 4,349.1 Long-lived assets: U.S. $ 7,408.5 $ 7,662.4 $ 2,688.7 Switzerland 8,000.2 6,899.8 508.0 Brazil 718.2 863.3 882.7 All other 2,441.1 3,187.3 830.9 Total $ 18,568.0 $ 18,612.8 $ 4,910.3 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. The United States is the only country that accounts for more than 10% of total net revenues for fiscal years 2018, 2017, and 2016. The United States had net revenues of $2,704.6 , $2,220.4 and $1,256.0 in fiscal 2018 , 2017 and 2016 , respectively. 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 2018 , 2017 and 2016 or are otherwise deemed significant. Presented below are the net revenues associated with Company’s product categories: Year Ended June 30, PRODUCT CATEGORY 2018 2017 2016 Fragrances 36.8 % 36.1 % 46.3 % Color Cosmetics 28.2 % 29.6 % 35.9 % Skin & Body Care 10.1 % 12.4 % 17.6 % Hair Care 24.9 % 21.9 % 0.2 % Total 100.0 % 100.0 % 100.0 % |
ACQUISITION-RELATED COSTS
ACQUISITION-RELATED COSTS | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITION-RELATED COSTS | ACQUISITION-RELATED COSTS Acquisition-related costs, which are expensed as incurred, represent non-restructuring costs directly related to acquiring and integrating an entity, for both completed and contemplated acquisitions and can include finder’s fees, legal, accounting, valuation, other professional or consulting fees, and other internal costs which can include compensation related expenses for dedicated internal resources. The Company recognized acquisition-related costs of $64.2 , $355.4 and $174.0 for the fiscal years ended 2018 , 2017 and 2016 , respectively, which have been recorded in Acquisition-related costs in the Consolidated Statements of Operations. Acquisition-related costs incurred during the fiscal years ended 2018, 2017 and 2016 were primarily related to the P&G Beauty Business acquisition. |
RESTRUCTURING COSTS
RESTRUCTURING COSTS | 12 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING COSTS | RESTRUCTURING COSTS Restructuring costs for the fiscal years ended June 30, 2018 , 2017 and 2016 are presented below: Year Ended June 30, 2018 2017 2016 Global Integration Activities $ 106.5 $ 364.2 $ — Acquisition Integration Program (4.5 ) 2.3 42.3 Other Restructuring 71.2 5.7 44.6 Total $ 173.2 $ 372.2 $ 86.9 Global Integration Activities In connection with the acquisition of the P&G Beauty Business, the Company has, and anticipates, that it will continue to incur restructuring and related costs aimed at integrating and optimizing the combined organization (“Global Integration Activities”). Of the expected costs, the Company has incurred cumulative restructuring charges of $470.7 related to approved initiatives through the fiscal year ended June 30, 2018 , which have been recorded in Corporate. The following table presents aggregate restructuring charges for the program: Severance and Employee Benefits Third-Party Fixed Asset Write-offs Other Exit Costs Total Fiscal 2017 $ 333.9 $ 22.4 $ 4.6 $ 3.3 $ 364.2 Fiscal 2018 67.5 19.3 14.3 5.4 106.5 Cumulative through June 30, 2018 $ 401.4 $ 41.7 $ 18.9 $ 8.7 $ 470.7 Over the next two fiscal years, the Company expects to incur approximately $110.0 of additional restructuring charges pertaining to the approved actions. Of the $110.0 of additional restructuring charges, the Company currently anticipates spending equal amounts related to employee termination benefits, fixed asset write-offs, contract terminations, and other costs to exit facilities and relocate employees. The related liability balance and activity for the Global Integration Activities restructuring costs are presented below: Severance and Third-Party Fixed Asset Write-offs Other Total Balance—July 1, 2017 $ 310.8 $ 14.9 $ — $ 2.8 $ 328.5 Restructuring charges 81.3 21.7 14.3 5.4 122.7 Payments (188.5 ) (17.0 ) — (4.8 ) (210.3 ) Change in estimates (13.8 ) (2.4 ) — — (16.2 ) Non-cash utilization — — (14.3 ) — (14.3 ) Effect of exchange rates 13.2 (0.2 ) — (0.3 ) 12.7 Balance—June 30, 2018 $ 203.0 $ 17.0 $ — $ 3.1 $ 223.1 The Company currently estimates that the total remaining accrual of $223.1 will result in cash expenditures of approximately $202.6 , $16.1 and $4.4 in fiscal 2019 , 2020 and thereafter, respectively. Acquisition Integration Program In the first quarter of fiscal 2016, the Company’s Board of Directors (the “Board”) approved an expansion to a restructuring program in connection with the acquisition of Bourjois (the “Acquisition Integration Program”). Actions associated with the program were initiated after the acquisition of Bourjois and were substantially completed during fiscal 2017 with cash payments continuing through fiscal 2020. The Company incurred $55.4 of restructuring costs life-to-date as of June 30, 2018 , which have been recorded in Corporate. The related liability balance and activity for the Acquisition Integration Program costs are presented below: Severance and Third-Party Other (a) Total Balance—July 1, 2017 $ 24.8 $ 1.5 $ 4.1 $ 30.4 Restructuring charges — — 3.3 3.3 Payments (16.9 ) — (2.2 ) (19.1 ) Changes in estimates (a) (7.8 ) — — (7.8 ) Effect of exchange rates 1.0 — (0.1 ) 0.9 Balance—June 30, 2018 $ 1.1 $ 1.5 $ 5.1 $ 7.7 (a) The decrease in severance and employee benefits is primarily attributable to favorable settlements with restructured employees. The Company currently estimates that the total remaining accrual of $7.7 will result in cash expenditures of approximately $2.5 , $2.3 and $2.9 in fiscal 2019 , 2020 and 2021 , respectively. Other Restructuring The Company continues to analyze its cost structure and evaluate opportunities to streamline operations. Management is considering a range of smaller initiatives and other cost reduction activities in order to reduce fixed costs and enable further investment in the business (the “2018 Restructuring Actions”). Of the expected costs, the Company incurred restructuring charges of $68.4 related to approved initiatives in fiscal 2018, primarily related to role eliminations in Europe and North America, which have been recorded in Corporate. Over the next two fiscal years, the Company expects to incur approximately $9.0 of additional restructuring charges that were approved during fiscal 2018, primarily related to employee termination benefits. See Note 25 — Subsequent Events for additional information. The related liability balance and activity of restructuring costs for the 2018 Restructuring Actions are presented below: Severance and Employee Benefits Third-Party Contract Terminations Fixed Asset Write-offs Other Exit Costs Total Program Costs Balance—July 1, 2017 $ — $ — $ — $ — $ — Restructuring charges 63.7 0.2 1.3 3.4 68.6 Payments (15.1 ) — — (0.4 ) (15.5 ) Changes in estimates (0.2 ) — — — (0.2 ) Non-cash utilization — (1.3 ) 0.3 (1.0 ) Effect of exchange rates (0.4 ) — — — (0.4 ) Balance—June 30, 2018 $ 48.0 $ 0.2 $ — $ 3.3 $ 51.5 The Company currently estimates that the total remaining accrual of $51.5 will result in cash expenditures of approximately $48.9 , $1.8 and $0.8 in fiscal 2019 , 2020 and thereafter, respectively. In connection with the acquisition of the Burberry Beauty Business, the Company recorded $3.9 of restructuring costs relating to third party contract terminations, which have been recorded in Corporate. The related liability balance was $3.9 at June 30, 2018 . The Company currently estimates that the total accrual of $3.9 will result in cash expenditures of $3.9 in fiscal 2019. The Company executed a number of other restructuring activities during 2013 and 2014, which focused primarily on work-force reductions around a new organizational structure, and other productivity initiatives related to the integration of supply chain and selling activities. These programs are substantially completed. The Company incurred (income) expenses of $(2.0) , $5.7 and $44.6 in fiscal 2018 , 2017 and 2016 , respectively. The related liability balances were $1.7 and $10.1 at June 30, 2018 and June 30, 2017 , respectively. The Company currently estimates that the total remaining accrual of $1.7 will result in cash expenditures in fiscal 2019. In connection with the acquisition of the P&G Beauty Business, the Company assumed restructuring liabilities of approximately $21.7 at October 1, 2016. The Company incurred expenses of $0.9 and nil during the fiscal years ended 2018 and 2017, respectively, primarily related to an adjustment for lease termination. The Company estimates that the remaining accrual of $7.0 at June 30, 2018 will result in cash expenditures of $4.2 , $2.1 and $0.7 in fiscal 2019 , 2020 and thereafter, respectively. |
TRADE RECEIVABLES - FACTORING
TRADE RECEIVABLES - FACTORING | 12 Months Ended |
Jun. 30, 2018 | |
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 fiscal year amounted to $300.1 and $344.9 in fiscal 2018 and 2017 , respectively. Remaining balances due from factors amounted to $9.9 and $16.8 as of June 30, 2018 and 2017 , respectively, and are included in Trade receivables, net in the Consolidated Balance Sheets. Factoring fees paid under these arrangements were $0.6 , $0.7 and $0.8 in fiscal 2018 , 2017 and 2016 , respectively, which were recorded in Selling, general and administrative expenses in the Consolidated Statements of Operations. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories as of June 30, 2018 and 2017 are presented below: June 30, June 30, Raw materials $ 278.6 $ 256.4 Work-in-process 21.8 33.4 Finished goods 848.5 762.8 Total inventories $ 1,148.9 $ 1,052.6 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net as of June 30, 2018 and 2017 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 671.2 $ 646.1 Machinery and equipment 866.3 851.5 Marketing furniture and fixtures 514.2 432.8 Computer equipment and software 699.1 459.0 Construction in progress 230.8 286.1 Property and equipment, gross 2,981.6 2,675.5 Accumulated depreciation and amortization (1,300.8 ) (1,043.4 ) Property and equipment, net $ 1,680.8 $ 1,632.1 Depreciation and amortization expense of property and equipment totaled $384.2 , $280.0 and $152.4 in fiscal 2018 , 2017 and 2016 , respectively, and is recorded in Cost of sales and Selling, general and administrative expenses in the Consolidated Statements of Operations. During fiscal 2018, the Company recorded asset impairment charges of $15.6 , primarily relating to the planned disposal of certain manufacturing facilities, and the write-off of machinery and equipment in excess of our needs due to our Global Integration Activities. The impairment charges are included in Restructuring costs in the Consolidated Statements of Operations. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Jun. 30, 2018 | |
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 2018 and 2017 . Goodwill as of June 30, 2018 , 2017 and 2016 is presented below: Luxury Consumer Beauty Professional Beauty Total Gross balance at June 30, 2016 $ 1,294.5 $ 1,288.2 $ 270.8 $ 2,853.5 Accumulated impairments (403.7 ) (237.1 ) — (640.8 ) Net balance at June 30, 2016 $ 890.8 $ 1,051.1 $ 270.8 $ 2,212.7 Changes during the year ended June 30, 2017 Acquisitions 1,866.1 3,285.2 665.5 5,816.8 Measurement period adjustments 308.0 124.7 12.0 444.7 Foreign currency translation 28.2 36.3 19.2 83.7 Dispositions — (2.4 ) — (2.4 ) Gross balance at June 30, 2017 $ 3,496.8 $ 4,732.0 $ 967.5 $ 9,196.3 Accumulated impairments (403.7 ) (237.1 ) — (640.8 ) Net balance at June 30, 2017 $ 3,093.1 $ 4,494.9 $ 967.5 $ 8,555.5 Changes during the year ended June 30, 2018 Acquisitions (a) 68.2 — 2.6 70.8 Measurement period adjustments (b) (185.0 ) 228.8 (17.3 ) 26.5 Foreign currency translation (10.3 ) (24.1 ) 1.0 (33.4 ) Dispositions (3.1 ) (9.2 ) — (12.3 ) Gross balance at June 30, 2018 $ 3,366.6 $ 4,927.5 $ 953.8 $ 9,247.9 Accumulated impairments (403.7 ) (237.1 ) — (640.8 ) Net balance at June 30, 2018 $ 2,962.9 $ 4,690.4 $ 953.8 $ 8,607.1 (a) Includes goodwill resulting from the Burberry Beauty Business acquisition during the year ended June 30, 2018 (Refer to Note 3 — Business Combinations ). (b) Includes measurement period adjustments in connection with the P&G Beauty Business, ghd, Younique and Burberry Beauty Business acquisitions (Refer to Note 3 — Business Combinations ). Other Intangible Assets, net Other intangible assets, net as of June 30, 2018 and 2017 are presented below: June 30, June 30, Indefinite-lived other intangible assets $ 3,186.2 $ 3,186.9 Finite-lived other intangible assets, net 5,098.2 5,238.3 Total Other intangible assets, net $ 8,284.4 $ 8,425.2 The changes in the carrying amount of indefinite-lived other intangible assets are presented below: Luxury Consumer Beauty Professional Beauty Total Gross balance at June 30, 2016 401.2 551.5 662.1 1,614.8 Accumulated impairments (118.8 ) (75.9 ) (3.1 ) (197.8 ) Net balance at June 30, 2016 282.4 475.6 659.0 1,417.0 Changes during the year ended June 30, 2017 Acquisitions — 1,390.0 663.8 2,053.8 Measurement period adjustments — (255.0 ) (60.0 ) (315.0 ) Foreign currency translation 8.6 9.9 12.6 31.1 Gross balance at June 30, 2017 $ 409.8 $ 1,696.4 $ 1,278.5 $ 3,384.7 Accumulated impairments (118.8 ) (75.9 ) (3.1 ) (197.8 ) Net balance at June 30, 2017 291.0 1,620.5 1,275.4 3,186.9 Changes during the year ended June 30, 2018 Measurement period adjustments (a) — — (14.8 ) (14.8 ) Foreign currency translation 4.8 6.7 2.6 14.1 Gross balance at June 30, 2018 414.6 1,703.1 1,266.3 3,384.0 Accumulated impairments (118.8 ) (75.9 ) (3.1 ) (197.8 ) Net balance at June 3 0, 2018 $ 295.8 $ 1,627.2 $ 1,263.2 $ 3,186.2 (a) Includes measurement period adjustments in connection with the ghd acquisition (Refer to Note 3 — Business Combinations ). Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2017 License agreements $ 3,148.4 $ (653.3 ) $ — $ 2,495.1 Customer relationships 1,937.3 (375.0 ) (5.5 ) 1,556.8 Trademarks 1,001.1 (141.0 ) — 860.1 Product formulations and technology 389.3 (63.0 ) — 326.3 Total $ 6,476.1 $ (1,232.3 ) $ (5.5 ) $ 5,238.3 June 30, 2018 License agreements (a)(b) $ 3,362.7 $ (792.9 ) $ — $ 2,569.8 Customer relationships (a)(b) 1,960.5 (508.7 ) (5.5 ) 1,446.3 Trademarks 1,002.1 (185.5 ) (0.4 ) 816.2 Product formulations and technology (a) 361.2 (95.3 ) — 265.9 Total $ 6,686.5 $ (1,582.4 ) $ (5.9 ) $ 5,098.2 (a) Includes measurement period adjustments in connection with the P&G Beauty Business and ghd acquisitions during fiscal 2018. (b) Includes License agreements and Customer relationships of $171.1 and $6.7 , respectively resulting from the Burberry Beauty Business acquisition during the fiscal year ended June 30, 2018 (see Note 3 — Business Combinations ). During fiscal 2018, the Company sold assets related to the Playboy and Cerruti brands (including related licenses of $26.2 and goodwill of $12.3 ) for proceeds of $33.0 , resulting in a noncash loss of $28.6 . During fiscal 2017, the Company sold assets related to the J.Lo brand for a total disposal price of $10.5 . The Company allocated $2.4 of goodwill to the brand as part of the sale. During fiscal 2016, the Company sold assets relating to the Cutex brand for a total disposal price of $29.2 . The Company allocated $4.2 of goodwill to the brand as part of the sale. The Company recorded losses (gains) of $28.6 , $(3.1) and $(24.8) , which are reflected in Loss (gain) on sale of assets in the Consolidated Statements of Operations for the fiscal years ended June 30, 2018 , 2017 and 2016 , respectively. In conjunction with the Company’s analysis of its go-to-market strategy in Southeast Asia during the first quarter of fiscal 2016, the Company evaluated future cash flows for this asset group and determined that the carrying value exceeded the undiscounted cash flows. As a result, the Company evaluated the fair value of the long-lived assets in the asset group, through an analysis of discounted future cash flows, and determined that the customer relationships were fully impaired and thus recorded $5.5 of Asset impairment charges in the Consolidated Statements of Operations for the fiscal year ended June 30, 2016. Amortization expense totaled $352.8 , $275.1 and $79.5 for the June 30, 2018 , 2017 and 2016 , respectively. Intangible assets subject to amortization are amortized principally using the straight-line method and have the following weighted-average remaining lives: Description License agreements 24.6 years Customer relationships 15.9 years Trademarks 22.0 years Product formulations and technology 10.5 years As of June 30, 2018 , the remaining weighted-average life of all intangible assets subject to amortization is 21.0 years . The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below: 2019 $ 353.9 2020 349.1 2021 344.8 2022 326.5 2023 304.4 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 brand licenses provide for automatic extensions ranging from 2 to 10 year terms, at the Company’s discretion. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 and 2017 are presented below: June 30, June 30, Advertising, marketing and licensing $ 435.5 $ 445.1 Compensation and other compensation related benefits 333.1 328.2 Customer returns, discounts, allowances and bonuses 328.2 307.3 Restructuring costs 263.8 301.0 VAT, sales and other non-income taxes 134.5 97.7 Mandatorily redeemable financial instrument liability (See Note 19) 46.6 8.1 Auditing, consulting, legal and litigation accruals 34.1 32.6 Interest 31.5 17.8 Deferred income 25.5 15.8 Tax indemnity liability 21.1 38.0 Unfavorable contract liability 11.3 11.0 Acquisition-related costs 1.3 23.5 Other 177.9 170.3 Total accrued expenses and other current liabilities $ 1,844.4 $ 1,796.4 |
OTHER NONCURRENT LIABILITIES
OTHER NONCURRENT LIABILITIES | 12 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
OTHER NONCURRENT LIABILITIES | OTHER NONCURRENT LIABILITIES Other noncurrent liabilities as of June 30, 2018 and 2017 are presented below: June 30, June 30, Noncurrent income tax liabilities $ 137.7 $ 154.2 Unfavorable contract liabilities 104.1 113.2 Deferred rent 54.2 49.0 Restructuring costs 31.1 82.3 Burberry contingent consideration 8.3 — Mandatorily redeemable financial instrument liability (See Note 19) 6.7 46.4 Other 46.4 28.3 Total other noncurrent liabilities $ 388.5 $ 473.4 |
DEBT
DEBT | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT June 30, June 30, Short-term debt $ 9.2 $ 3.7 2018 Coty Credit Agreement 2018 Coty Revolving Credit Facility due April 2023 368.1 — 2018 Coty Term A Facility due April 2023 3,371.5 — 2018 Coty Term B Facility due April 2025 2,390.5 — Senior Unsecured Notes 2026 Dollar Notes due April 2026 550.0 — 2023 Euro Notes due April 2023 640.9 — 2026 Euro Notes due April 2026 291.4 — Galleria Credit Agreement Galleria Revolving Credit Facility due September 2021 — — Galleria Term Loan A Facility due September 2021 — 944.3 Galleria Term Loan B Facility due September 2023 — 1,000.0 2015 Coty Credit Agreement Coty Revolving Credit Facility due October 2020 — 810.0 Coty Term Loan A Facility due October 2020 — 1,792.8 Coty Term Loan A Facility due October 2021 — 950.6 Coty Term Loan B Facility due October 2022 — 1,712.5 Other long-term debt and capital lease obligations 1.6 1.7 Total debt 7,623.2 7,215.6 Less: Short-term debt and current portion of long-term debt (218.9 ) (209.1 ) Total Long-term debt 7,404.3 7,006.5 Less: Unamortized debt issuance costs (a) (b) (86.2 ) (67.6 ) Less: Discount on Long-term debt (12.7 ) (10.6 ) Total Long-term debt, net $ 7,305.4 $ 6,928.3 (a) Balances as of June 30, 2018 consist of unamortized debt issuance costs of $31.4 for the 2018 Coty Revolving Credit Facility, $29.2 for the 2018 Coty Term A Facility, $10.9 for the 2018 Coty Term B Facility, $8.3 for the 2026 Dollar and Euro Notes and $6.4 for the 2023 Euro Notes. (b) Balances as of June 30, 2017 consist of unamortized debt issuance costs of $17.5 for the Coty Revolving Credit Facility, $33.2 for the Coty Term Loan A Facility, $11.3 for the Coty Term Loan B Facility, $2.7 for the Galleria Term Loan A Facility and $3.0 for the Galleria Term Loan B Facility. Unamortized debt issuance costs of $4.2 for the Galleria Revolving Credit Facility were classified as Other noncurrent assets as of June 30, 2017 . Short-Term Debt The Company maintains short-term lines of credit with financial institutions around the world. Total available lines of credit were $129.2 and $132.4 , of which $4.7 and $3.2 were outstanding at June 30, 2018 and 2017 , 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 0.2% to 10.7% and from 0.4% to 11.2% as of June 30, 2018 and 2017 , respectively. The weighted-average interest rate on short-term debt outstanding was 2.2% and 3.0% as of June 30, 2018 and 2017 , respectively. In addition, the Company had undrawn letters of credit of $5.4 and $5.5 as of June 30, 2018 and 2017 , respectively. Long-Term Debt The Company’s long-term debt facilities consisted of the following as of June 30, 2018 : Facility Maturity Date Borrowing Capacity (in millions) Interest Rate Terms Applicable Interest Rate Spread as of Debt Discount Repayment Schedule 2018 Coty Revolving Credit Facility April 2023 $3,250.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) (e) 1.75% N/A (b) Payable in full at maturity date 2018 Coty Term A Facility - USD Portion April 2023 $1,000.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) 1.75% N/A (b) Quarterly repayments beginning September 30, 2018 at 1.25% of original principal amount 2018 Coty Term A Facility - EUR Portion April 2023 €2,035.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) 1.75% N/A (b) Quarterly repayments beginning September 30, 2018 at 1.25% of original principal amount 2018 Coty Term B Facility - USD Portion April 2025 $1,400.0 LIBOR (a) plus a margin of 2.25% per annum or a base rate plus a margin of 1.25% per annum (d) 2.25% 0.25% Quarterly repayments beginning September 30, 2018 at 0.25% of original principal amount 2018 Coty Term B Facility - EUR Portion April 2025 €850.0 LIBOR (a) plus a margin of 2.50% per annum (d) 2.50% 0.25% Quarterly repayments beginning September 30, 2018 at 0.25% of original principal amount 2026 Dollar Notes April 2026 $550.0 6.5% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018 N/A (b) N/A (b) Payable in full at maturity date 2023 Euro Notes April 2023 €550.0 4.0% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018 N/A (b) N/A (b) Payable in full at maturity date 2026 Euro Notes April 2026 €250.0 4.75% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018 N/A (b) N/A (b) Payable in full at maturity date (a) As defined below. (b) N/A - Not Applicable. (c) As defined per the 2018 Coty Credit Agreement. (d) The selection of the applicable one, two, three, six or twelve month interest rate for the period is at the discretion of the Company. (e) The Company will pay to the Revolving Credit Facility lenders an unused commitment fee calculated at a rate ranging from 0.10% to 0.35% per annum, based on the Company’s total net leverage ratio (c) . As of June 30, 2018 , the applicable rate on the unused commitment fee was 0.30% . The Company’s long-term debt facilities consisted of the following as of June 30, 2017: Facility Maturity Date Borrowing Capacity (in millions) Interest Rate Terms Applicable Interest Rate Spread as of Debt Discount Repayment Schedule Galleria Revolving Credit Facility (a) September 2021 $1,500.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) (f) 1.75% N/A (b) Payable in full at maturity date Galleria Term Loan A Facility (a) September 2021 $2,000.0 (g) LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (f) 1.75% N/A (b) Quarterly repayments beginning December 31, 2017 at 1.25% of original principal amount Galleria Term Loan B Facility (a) September 2023 $1,000.0 LIBOR (a) plus a margin of 3.00% or a base rate, plus a margin of 2.00% (f) 3.00% 0.50% Quarterly repayments Coty Revolving Credit Facility (a) October 2020 $1,500.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) (f) 1.75% N/A (b) Payable in full at maturity date Coty Term Loan A Facility (a) - USD Portion October 2020 $1,750.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (f) 1.75% N/A (b) Quarterly repayments beginning June 30, 2016 at 1.25% of original principal amount Coty Term Loan A Facility (a) - Euro Portion October 2020 €140.0 EURIBOR (a) plus a margin of 1.00% to 2.00% per annum, based on the Company’s total net leverage ratio (c) (f) 1.75% N/A (b) Quarterly repayments beginning September 30, 2016 at 1.25% of original principal amount Incremental Term A Facility (a) October 2021 $975.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (f) 1.75% N/A (b) Quarterly repayments beginning March 31, 2017 at 1.25% of original principal amount Coty Term Loan B Facility (a)(h) - USD Portion and Incremental Term B Facility (a) October 2022 $600.0 LIBOR (a) plus a margin of 2.50% or a base rate, plus a margin of 2.00% (f) 2.50% 0.50% Quarterly repayments beginning June 30, 2016 at 0.25% of original principal amount Coty Term Loan B Facility (a) - Euro Portion October 2022 €990.0 (e) EURIBOR (a) plus a margin of 2.75% 2.75% 0.50% See below. (e) (a) As defined below. (b) N/A - Not Applicable. (c) As defined per the respective loan agreement. (d) Additionally the Company paid to the Revolving Credit Facility lenders an unused commitment fee calculated at a rate ranging from 0.25% to 0.50% per annum, based on the Company’s total net leverage ratio (c) . As of June 30, 2017 , the applicable rate on the unused commitment fee was 0.50% . (e) Included €665.0 million of the Euro portion of Coty Term Loan B Facility originated on October 27, 2015, and the €325.0 million from the Incremental Term Loans, as defined below, originated on April 8, 2016. Repayments on the €665.0 million portion were payable quarterly beginning on June 30, 2016 at 0.25% of the original principal amount. Repayments on the €325.0 million Incremental Term Loan B were payable quarterly beginning on September 30, 2016 at 0.25% of the original principal amount. (f) The selection of the applicable interest rate for the period is at the discretion of the Company. (g) At the closing of the P&G Beauty Business acquisition, $944.3 were assumed under the Galleria Credit Agreement. The remaining unused loan commitments for the Galleria Term Loan A Facility expired. (h) Refinanced as part of the Incremental Assumption Agreement (a) on October 28, 2016 and part of the Refinancing Facilities (a) . The Company’s long term debt facilities consisted of the following as of June 30, 2016: Facility Maturity Date Borrowing Capacity (in millions) Interest Rate Terms Applicable Interest Rate Spread as of June 30, 2016 Debt Discount Repayment Schedule Coty Revolving Credit Facility (a) October 2020 $1,500.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) (f) 1.75% N/A (b) Payable in full at maturity date Coty Term Loan A Facility (a) - USD Portion October 2020 $1,750.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (f) 1.75% N/A (b) Quarterly repayments beginning June 30, 2016 at 1.25% of original principal amount Coty Term Loan A Facility (a) - Euro Portion October 2020 €140.0 EURIBOR (a) plus a margin of 1.00% to 2.00% per annum, based on the Company’s total net leverage ratio (c) (f) 1.75% N/A (b) Quarterly repayments beginning September 30, 2016 at 1.25% of original principal amount Coty Term Loan B Facility (a) - USD portion October 2022 $500.0 LIBOR (a) (subject to a 0.75% floor) plus a margin of 3.00% or a base rate (subject to a 1.75% floor), plus a margin of 2.00% (f) 3.00% 0.50% Quarterly repayments beginning June 30, 2016 at 0.25% of original principal amount Coty Term Loan B Facility (a) - Euro portion October 2022 €990.0 (e) EURIBOR (a) (subject to a 0.75% floor) plus a margin of 2.75% 2.75% 0.50% Quarterly repayments beginning June 30, 2016 at 0.25% of original principal amount (e) (a) As defined below. (b) N/A - Not Applicable. (c) As defined per the respective loan agreement. (d) Additionally the Company paid to the Coty Revolving Credit Facility and Galleria Revolving Facility lenders an unused commitment fee calculated at a rate ranging from 0.25% to 0.50% per annum, based on the Company’s total net leverage ratio (c) . As of June 30, 2016, the applicable rate on the unused commitment fee was 0.50% . (e) Included €665.0 million of the Euro portion of Term Loan B originated on October 27, 2015, and the €325.0 million from the Incremental Term Loans, as defined below, originated on April 8, 2016. Repayments on the €325.0 million Incremental Term Loan B were payable quarterly beginning on September 30, 2016 at 0.25% of the original principal amount. (f) The selection of the applicable interest rate for the period is at the discretion of the Company. Offering of Senior Unsecured Notes On April 5, 2018 the Company issued, at par, $550.0 of 6.50% senior unsecured notes due 2026 (the “2026 Dollar Notes”), €550.0 million of 4.00% senior unsecured notes due 2023 (the “2023 Euro Notes”) and €250.0 million of 4.75% senior unsecured notes due 2026 (the “2026 Euro Notes” and, together with the 2023 Euro Notes, the “Euro Notes,” and the Euro Notes together with the 2026 Dollar Notes, the “Senior Unsecured Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the U.S. pursuant to Regulation S under the Securities Act. The net proceeds of this offering, together with borrowings under the Company’s 2018 Credit Agreement were used to repay in full and refinance the indebtedness outstanding under the 2015 Coty Credit Agreement and Galleria Credit Agreement and to pay accrued interest, related premiums, fees and expenses in connection therewith. The Senior Unsecured Notes are senior unsecured debt obligations of the Company and will be pari passu in right of payment with all of the Company’s existing and future senior indebtedness (including the 2018 Coty Credit Facilities described below). The Senior Unsecured Notes are guaranteed, jointly and severally, on a senior basis by the Guarantors (as later defined under “ 2018 Coty Credit Agreement” ). The Senior Unsecured Notes are senior unsecured obligations of the Company and are effectively junior to all existing and future secured indebtedness of the Company to the extent of the value of the collateral securing such secured indebtedness. The related guarantees are senior unsecured obligations of each Guarantor and are effectively junior to all existing and future secured indebtedness of such Guarantor to the extent of the value of the collateral securing such indebtedness. In addition to the optional redemption outlined below, the Company may, at its option, redeem either series of the Euro Notes, in whole but not in part, at a redemption price equal to 100% of the principal amount of the Euro Notes to be redeemed, together with any accrued and unpaid interest thereon to, but excluding, the redemption date, at any time, upon the occurrence of certain tax events. Upon the occurrence of certain change of control triggering events with respect to a series of Senior Unsecured Notes, the Company will be required to offer to repurchase all or part of the Senior Unsecured Notes of such series at 101% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the purchase date applicable to such Senior Unsecured Notes. The Notes contain customary covenants that place restrictions in certain circumstances on, among other things, incurrence of liens, entry into sale or leaseback transactions, sales of all or substantially all of the Company’s assets and certain merger or consolidation transactions. The Notes also provide for customary events of default. Optional Redemption Applicable Premium The indenture governing the Senior Unsecured Notes (the “Indenture”) specifies the Applicable Premium (as defined in the Indenture) to be paid upon early redemption of some or all of the 2026 Dollar Notes, 2023 Euro Notes or 2026 Euro Notes. The Applicable Premium related to the 2026 Dollar Notes, 2023 Euro Notes and 2026 Euro Notes on any redemption date and as calculated by the Company is the greater of: (1) 1.0% of the then outstanding principal amount of the respective 2026 Dollar Notes, 2023 Euro Notes and 2026 Euro Notes; and (2) the excess, if any, of (a) the present value at such redemption date of (i) the redemption price of such 2026 Dollar Notes, 2023 Euro Notes or 2026 Euro Notes that would apply if such 2026 Dollar Notes, 2023 Euro Notes or 2026 Euro Notes were redeemed on April 15, 2021, April 15, 2020 or April 15, 2021, respectively (such redemption price is expressed as a percentage of the principal amount being set forth in the table appearing in the Redemption Pricing section below), plus (ii) all remaining scheduled payments of interest due on the 2026 Dollar Notes, 2023 Euro Notes or 2026 Euro Notes to and including April 15, 2021, April 15, 2020 and April 15, 2021, respectively (excluding accrued but unpaid interest, if any, to, but excluding, the redemption date), with respect to each of subclause (i) and (ii), computed using a discount rate equal to the Treasury Rate in the case of the 2026 Dollar Notes or Bund Rate in the case of both the 2020 Euro Notes or 2026 Euro Notes (both Treasury Rate and Bund Rate as defined in the Indenture) as of such redemption date plus 50 basis points; over (b) the principal amount of the respective 2026 Dollar Notes, 2023 Euro Notes or 2026 Euro Notes. Redemption Pricing At any time and from time to time prior to April 15, 2021, April 15, 2020 and April 15, 2021, the Company may redeem some or all of the 2026 Dollar Notes, 2023 Euro Notes and 2026 Euro Notes, respectively, at redemption prices equal to 100% of the respective principal amounts being redeemed plus the Applicable Premium, plus accrued and unpaid interest, if any, to, but excluding, the redemption dates. At any time on or after April 15, 2021, April 15, 2020 and April 15, 2021, the Company may redeem some or all of the 2026 Dollar Notes, 2023 Euro Notes and 2026 Euro Notes, respectively, at the redemption prices (expressed in percentage of principal amount) set forth below, plus accrued and unpaid interest, if any, to, but excluding, the redemption dates, if redeemed during the twelve-month period beginning on April 15 of each of the years indicated below: Price Year 2026 Dollar Notes 2023 Euro Notes 2026 Euro Notes 2020 N/A 102.0000% N/A 2021 104.8750% 101.0000% 103.5625% 2022 103.2500% 100.0000% 102.3750% 2023 101.6250% 100.0000% 101.1875% 2024 and thereafter 100.0000% N/A 100.0000% In addition, at any time prior to April 15, 2021, April 15, 2020 and April 15, 2021, the Company may redeem up to 35% of the aggregate principal amounts of the outstanding 2026 Dollar Notes, 2023 Euro Notes and 2026 Euro Notes, respectively, using the net cash proceeds from certain equity offerings at redemption prices (expressed as a percentage of the principal amount) of 106.50% , 104.00% and 104.75% , respectively, plus accrued and unpaid interest, if any, to, but excluding, the redemption dates; provided that (i) at least 65% of the aggregate principal amount of 2026 Dollar Notes, 2023 Euro Notes and 2026 Euro Notes, respectively, originally issued on the date of the Indenture remain outstanding after each such redemption, and (ii) notice of any such redemption is delivered to the Trustee within 90 days of the closing of each such equity offering. 2018 Coty Credit Agreement On April 5, 2018, the Company entered into a new credit agreement (the “2018 Coty Credit Agreement”), which amended and restated the previously existing 2015 Coty Credit Agreement. The 2018 Coty Credit Agreement provides for (a) the incurrence by the Company of (1) a senior secured term A facility in an aggregate principal amount of (i) $1,000.0 denominated in U.S. dollars and (ii) €2,035.0 million denominated in euros (the “2018 Coty Term A Facility”) and (2) a senior secured term B facility in an aggregate principal amount of (i) $1,400.0 denominated in U.S. dollars and (ii) €850.0 million denominated in euros (the “2018 Coty Term B Facility”) and (b) the incurrence by the Company and Coty B.V., a Dutch subsidiary of the Company (the “Dutch Borrower” and, together with the Company, the “Borrowers”), of a senior secured revolving facility in an aggregate principal amount of $3,250.0 denominated in U.S. dollars, specified alternative currencies or other currencies freely convertible into U.S. dollars and readily available in the London interbank market (the “2018 Coty Revolving Credit Facility”) (the 2018 Coty Term A Facility, together with the 2018 Coty Term B Facility and the 2018 Coty Revolving Credit Facility, the “2018 Coty Credit Facilities”). Initial borrowings under the 2018 Coty Term Loan B Facility were issued at a 0.250% discount. The 2018 Coty Credit Agreement provides that with respect to the 2018 Coty Revolving Credit Facility, up to $150.0 is available for letters of credit and up to $150.0 is available for swing line loans. The 2018 Coty Credit Agreement also permits, subject to certain terms and conditions, the incurrence of incremental facilities thereunder in an aggregate amount of (i) $1,700.0 plus (ii) an unlimited amount if the First Lien Net Leverage Ratio (as defined in the 2018 Coty Credit Agreement), at the time of incurrence of such incremental facilities and after giving effect thereto on a pro forma basis, is less than or equal to 3.00 to 1.00. The net proceeds of the Senior Unsecured Notes and the 2018 Coty Credit Facilities were used to repay in full and refinance the indebtedness outstanding under the 2015 Coty Credit Agreement and Galleria Credit Agreement and to pay accrued interest, related premiums, fees and expenses in connection therewith. Future borrowings under the 2018 Coty Credit Agreement could be used for corporate purposes. The obligations of the Company under the 2018 Coty Credit Agreement are guaranteed by the material wholly-owned subsidiaries of the Company organized in the U.S., subject to certain exceptions (the “Guarantors”) and the obligations of the Company and the Guarantors under the 2018 Coty Credit Agreement are secured by a perfected first priority lien (subject to permitted liens) on substantially all of the assets of the Company and the Guarantors, subject to certain exceptions. The Dutch Borrower does not guarantee the obligations of the Company under the 2018 Coty Credit Agreement or grant any liens on its assets to secure any obligations under the 2018 Coty Credit Agreement. 2015 Coty Credit Agreement On October 27, 2015, the Company entered into a Credit Agreement (the “2015 Coty Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent. The 2015 Coty Credit Agreement provided for senior secured credit facilities comprised of (i) a revolving credit facility in an aggregate principal amount up to $1,500.0 (the “Coty Revolving Credit Facility”), which included up to $80.0 in swingline loans available for short term borrowings, (ii) a $1,750.0 term loan A facility (“Coty Term Loan A Facility”) and (iii) a term loan B facility comprising of a $500.0 tranche and a €665.0 million tranche (“Coty Term Loan B Facility”). The Coty Term Loan B Facility was issued at a 0.50% discount. The proceeds of the Coty Credit Agreement were primarily used to refinance the Company’s previously existing debt, which included the 2015 Credit Agreement due March 2018 and facilities under the Coty Inc. Credit Facility (together, the “Prior Coty Inc. Credit Facilities”). On April 8, 2016, the Company entered into an Incremental Assumption Agreement and Amendment No. 1 (the “Incremental Credit Agreement”) to the Coty Credit Agreement. The Incremental Credit Agreement provided for an additional €140.0 million in commitments under the Coty Term Loan A Facility and an additional €325.0 million in commitments under the Coty Term Loan B Facility of the Coty Credit Agreement (the “Incremental Term Loans”). The proceeds of the Incremental Term Loans were used to partially repay outstanding balances under the Revolving Credit Facility. The terms of the €140.0 million and €325.0 million portions of the Incremental Term Loans were substantially the same as the respective existing Coty Term Loan A Facility and Euro denominated portion of the Coty Term Loan B Facility. On October 28, 2016, the Company entered into an Incremental Assumption Agreement and Refinancing Amendment (the “Incremental and Refinancing Agreement”), which amended the Coty Credit Agreement. The Incremental and Refinancing Agreement provided for: (i) an additional Coty Term Loan A Facility in aggregate principal amount of $975.0 in commitments (the “Incremental Term A Facility”), (ii) an additional Coty Term Loan B Facility in aggregate principal amount of $100.0 in commitments (the “Incremental Term B Facility”) and (iii) a refinancing of the previously existing USD and Euro denominated Coty Term Loan B Facility loans (the “Refinancing Facilities”) under the Coty Credit Agreement. The loans made under the Incremental Term A Facility had terms that were substantially identical to the existing Coty Term Loan A Facility except that the loans would have matured on the date that is five years after October 28, 2016. The loans under the Incremental Term B Facility and the Refinancing Facilities had substantially identical terms as the term B loans existing under the 2015 Coty Credit Agreement prior to effectiveness of the Incremental and Refinancing Agreement, except that, among other things: (i) the interest rate with respect to the USD denominated tranche of the Refinancing Facilities and the Incremental Term B Facility would have been, at the Company’s option, either the London Interbank Offered Rate (“LIBOR”) plus an applicable margin of 2.50% or an alternate base rate (“ABR”) equal to the highest of (1) JPMorgan Chase Bank N.A.’s prime rate, (2) the federal funds rate plus 0.50% and (3) one-month LIBOR plus 1.00% , in each case plus an applicable margin of 1.50% and (ii) the LIBOR floor with respect to the LIBOR loans under the Incremental Term B Facility and the Refinancing Facilities is 0.00% . The Company recognized $13.0 of deferred debt issuance costs in connection with the Incremental and Refinancing Agreement. The 2015 Coty Credit Agreement was guaranteed by Coty Inc.’s wholly-owned domestic subsidiaries and secured by a first priority lien on substantially all of Coty Inc. and its wholly-owned domestic subsidiaries’ assets, in each case subject to certain carve outs and exceptions. Galleria Credit Agreement On October 1, 2016, at the closing of the P&G Beauty Business acquisition, the Company assumed the debt facilities available under the Galleria Credit Agreement (the “Galleria Credit Agreement”), which was initially entered into by Galleria on January 26, 2016. The Galleria Credit Agreement provided for the senior secured credit facilities comprised of (i) a $2,000.0 five year term loan A facility (“Galleria Term Loan A Facility”), (ii) a $1,000.0 seven year term loan B facility (“Galleria Term Loan B Facility”) and (iii) a $1,500.0 five year revolving credit facility (“Galleria Revolving Facility”). The Galleria Term Loan B Facility was issued at a 0.5% discount. In connection with the closing of the P&G Beauty Business acquisition, the Company assumed $1,941.8 of aggregate debt outstanding consisting of $944.3 Galleria Term Loan A Facility, $995.0 Galleria Term Loan B Facility, net of a discount and $0.0 outstanding under the Galleria Revolving Facility, as well as $2.5 in assumed fees payable. At the closing of the P&G Beauty Business acquisition, the remaining unused loan commitments for the Galleria Term Loan A Facility expired. The Company recognized $11.4 of deferred debt issuance costs in connection with the Galleria Credit Agreement. The Galleria Credit Agreement was guaranteed by Coty Inc. and its wholly-owned domestic subsidiaries (other than Galleria) and secured by a first priority lien on substantially all of Coty Inc. and its wholly-owned domestic subsidiaries’ assets, in each case subject to certain carve outs and exceptions. Scheduled Amortization The Company will make quarterly payments of 1.25% and 0.25% , beginning on September 30, 2018, of the initial aggregate principal amounts of the 2018 Coty Term A Facility and the 2018 Coty Term B Facility, respectively. The remaining balance of the initial aggregate principal amounts of the 2018 Coty Term A Facility and the 2018 Coty Term B Facility will be payable on the maturity date for each facility, respectively. Deferred Issuance Costs For the fiscal years ended June 30, 2018, 2017 and 2016 , the Company capitalized deferred financing fees of $37.8 , $24.4 , and $59.0 , respectively. As of June 30, 2018 and 2017 , the Company had deferred financing fees of $0.0 and $4.2 recorded in Other noncurrent assets on the Company’s Consolidated Balance Sheets. In connection with the refinancing of the 2015 Coty Credit Agreement and Galleria Credit Agreement, the Company incurred $24.1 in third-party debt issuance costs during the year ended June 30, 2018 . These costs were recorded as Other expense, net in the Consolidated Statement of Operations. Loss on Early Extinguishment on Debt During the fiscal years ended June 30, 2018, 2017 and 2016 , the Company wrote-off $8.7 , $0.0 and $3.1 of unamortized deferred financing fees. Also during the fiscal years ended June 30, 2018, 2017 and 2016 , the Company wrote-off $2.0 , $0.0 and $0.0 of unamortized original issue debt discounts. The write-offs of these unamortized deferred financing fees and unamortized original issue debt discounts are included in Loss on early extinguishment of debt in the Consolidated Statements of Operations. Interest The 2018 Coty Credit Agreement facilities will bear interest at rates equal to, at the Company’s option, either: • LIBOR of the applicable qualified currency, of which the Company can elect the applicable one, two, three, six or twelve month rate, plus the applicable margin; or • ABR plus the applicable margin. In the case of the 2018 Coty Revolving Credit Facility and the 2018 Coty Term A Facility, the applicable margin means the lesser of a percentage per annum to be determined in accordance with the leverage-based pricing grid and the debt rating-based grid below: Pricing Tier Total Net Leverage Ratio: LIBOR plus: Alternative Base Rate Margin: 1.0 Greater than or equal to 4.75:1 2.000% 1.000% 2.0 Less than 4.75:1 but greater than or equal to 4.00:1 1.750% 0.750% 3.0 Less than 4.00:1 but greater than or equal to 2.75:1 1.500% 0.500% 4.0 Less than 2.75:1 but greater than or equal to 2.00:1 1.250% 0.250% 5.0 Less than 2.00:1 but greater than or equal to 1.50:1 1.125% 0.125% 6.0 Less than 1.50:1 1.000% —% Pricing Tier Debt Ratings S&P/Moody’s: LIBOR plus: Alternative Base Rate Margin: 5.0 Less than BB+/Ba1 2.000% 1.000% 4.0 BB+/Ba1 1.750% 0.750% 3.0 BBB-/Baa3 1.500% 0.500% 2.0 BBB/Baa2 1.250% 0.250% 1.0 BBB+/Baa1 or higher 1.125% 0.125% In the case of the USD portion of the 2018 Coty Term B Facility, the applicable margin means 2.25% per annum, in the case of LIBOR loans, and 1.25% per annum, in the case of ABR loans. In the case of the Euro portion of the 2018 Coty Term B Facility, the applicable margin means 2.50% per annum, in the case of EURIBOR loans. In no event will LIBOR be deemed to be less than 0.00% per annum. Fair Value of Debt June 30, 2018 June 30, 2017 Carrying Fair Carrying Fair 2018 Coty Credit Agreement $ 6,130.1 $ 6,070.8 $ — $ — Senior Unsecured Notes 1,482.3 1,449.9 — — Galleria Credit Agreement — — 1,944.3 1,944.0 2015 Coty Credit Agreement — — 5,265.9 5,275.4 The Company uses the market approach to value the 2018 Coty Credit Agreement and the Senior Unsecured Notes. The Company used the market approach to value the 2015 Coty Credit Agreement and the Galleria Credit Agreement. The Company obtains fair values from independent pricing services to determine the fair value of these debt instruments. Based on the assumptions used to value these liabilities at fair value, these debt instruments are categorized a Level 2 in the fair value hierarchy. Debt Maturities Schedule Aggregate maturities of all long-term debt, including current portion of long-term debt and excluding capital lease obligations as of June 30, 2018 , are presented below: Fiscal Year Ending June 30, 2019 $ 192.5 2020 192.5 2021 192.5 2022 192.5 2023 3,730.1 Thereafter 3,112.3 Total $ 7,612.4 Covenants The 2018 Coty Credit Agreement contains affirmative and negative covenants. The negative covenants include, among other things, limitations on debt, liens, dispositions, investments, fundamental changes, restricted payments and affiliate transactions. With certain exceptions as described below, the 2018 Coty Credit Agreement includes a financial covenant that requires us to maintain a Total Net Leverage Ratio (as defined below), equal to or less than the ratios shown below for each respective test period. Quarterly Test Period Ending Total Net Leverage Ratio (a) June 30, 2018 5.50 to 1.00 September 30, 2018 through December 31, 2018 5.50 to 1.00 March 31, 2019 through June 30, 2019 5.25 to 1.00 Septe |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Jun. 30, 2018 | |
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 one and ten years . Certain lease agreements have escalation clauses for rent, 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, 2018 are presented below: Fiscal Year Ending June 30, 2019 $ 128.9 2020 112.1 2021 97.0 2022 80.4 2023 71.8 Thereafter 339.3 829.5 Less: sublease income (23.9 ) Total minimum payments required $ 805.6 The Company incurred rent expense of $208.2 , $166.1 and $82.5 relating to operating leases in fiscal 2018 , 2017 and 2016 , respectively. The Company collected payments from sub-lessors relating to facilities no longer in use by the Company of $6.2 , $6.0 and $5.4 for fiscal 2018 , 2017 and 2016 , respectively. Included in rent expense are estimated net future minimum lease payments (recoveries) and related costs for facilities no longer used in operations of $8.6 , $9.2 and nil for fiscal 2018 , 2017 and 2016 , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES (Loss) income before income taxes in fiscal 2018 , 2017 and 2016 is presented below: Year Ended June 30, 2018 2017 2016 United States $ (324.2 ) $ (524.8 ) $ (153.6 ) Foreign 171.7 (133.2 ) 292.4 Total $ (152.5 ) $ (658.0 ) $ 138.8 The components of the Company’s total (benefit) provision for income taxes during fiscal 2018 , 2017 and 2016 are presented below: Year Ended June 30, 2018 2017 2016 (Benefit) provision for income taxes: Current: Federal $ 0.2 $ 0.4 $ (30.0 ) State and local 9.8 1.1 (2.7 ) Foreign 67.0 129.0 131.5 Total 77.0 130.5 98.8 Deferred: Federal 25.2 (256.9 ) (91.7 ) State and local (0.7 ) (24.2 ) (9.9 ) Foreign (126.2 ) (108.9 ) (37.6 ) Total (101.7 ) (390.0 ) (139.2 ) Benefit for income taxes $ (24.7 ) $ (259.5 ) $ (40.4 ) During fiscal 2018, the Company incurred an expense of $41.0 as a result of the Tax Act. During the second quarter of fiscal 2017, the Company released a valuation allowance in the U.S. as a result of the P&G Beauty Business acquisition of $111.2 . During the first quarter of fiscal 2016, the Company reached final settlement with the IRS in connection with the 2004–2012 examination periods. The settlement primarily relates to the acquisition of the Calvin Klein fragrance business. In connection with the settlement, the Company recognized a tax benefit of approximately $194.4 of which $164.7 was mainly due to the recognition of additional deferred tax assets related to the basis of the Calvin Klein trademark, and approximately $29.7 resulted from the reduction of gross unrecognized tax benefits. Of the $194.4 tax benefit, $111.2 was offset by a valuation allowance due to on-going operating losses in the U.S. 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. For the fiscal years ending June 30, 2018 and 2017 , the prepaid income taxes of $7.6 and $7.6 , respectively, are included in Prepaid expenses and other current assets and $120.6 and $128.2 , respectively, are included in Other noncurrent assets in the Consolidated Balance Sheets. 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 2018 , 2017 and 2016 is presented below: Year Ended June 30, 2018 2017 2016 Income (loss) before income taxes $ (152.5 ) $ (658.0 ) $ 138.8 (Benefit) provision for income taxes at statutory rate $ (42.8 ) $ (230.3 ) $ 48.5 State and local taxes—net of federal benefit 9.9 (15.0 ) (8.3 ) Foreign tax differentials (21.9 ) 53.3 (50.8 ) Change in valuation allowances 8.6 (108.2 ) (7.6 ) Change in unrecognized tax benefit (24.8 ) 25.6 45.8 U.S. audit settlement, net — — (83.2 ) Tax Act 41.0 — — Permanent differences—net (8.5 ) 1.2 4.7 Amortization on intercompany sale 5.4 5.7 5.7 Other 8.4 8.2 4.8 (Benefit) provision for income taxes $ (24.7 ) $ (259.5 ) $ (40.4 ) Effective income tax rate 16.2 % 39.4 % (29.1 )% Significant components of deferred income tax assets and liabilities as of June 30, 2018 and 2017 are presented below: June 30, June 30, Deferred income tax assets: Inventories $ 9.0 $ 11.7 Accruals and allowances 84.2 108.8 Sales returns 13.1 14.8 Share-based compensation 13.4 14.2 Employee benefits 115.7 141.2 Net operating loss carry forwards and tax credits 285.1 436.9 Other 48.3 40.7 Less: valuation allowances (104.6 ) (60.3 ) Net deferred income tax assets 464.2 708.0 Deferred income tax liabilities: Intangible assets 1,115.7 1,420.9 Property, plant and equipment 18.9 44.1 Unrealized gain 5.4 44.0 Licensing rights 21.5 30.4 Other 37.8 20.9 Deferred income tax liabilities 1,199.3 1,560.3 Net deferred income tax liabilities $ (735.1 ) $ (852.3 ) The expirations of tax loss carry forwards, amounting to $1,134.1 as of June 30, 2018 , 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 2019 $ — $ — $ 15.2 $ 15.2 2020 — — 75.3 75.3 2021 — 0.8 12.4 13.2 2022 — 1.9 21.4 23.3 2023 and thereafter 1.7 828.9 176.5 1,007.1 Total $ 1.7 $ 831.6 $ 300.8 $ 1,134.1 The total valuation allowances recorded are $104.6 and $60.3 as of June 30, 2018 and 2017 , respectively. In fiscal 2018 , the change in the valuation allowance was due primarily to valuation allowances recorded on net operating losses and foreign tax credits that are not expected to be utilized. A reconciliation of the beginning and ending amount of UTBs is presented below: Year Ended June 30, 2018 2017 2016 UTBs—July 1 $ 257.9 $ 228.9 $ 342.6 Additions based on tax positions related to the current year 44.1 43.6 60.4 Additions for tax positions of prior years 97.4 0.4 — Reductions for tax positions of prior years (39.9 ) — (70.5 ) Settlements (42.3 ) (1.5 ) (72.7 ) Lapses in statutes of limitations (11.0 ) (13.2 ) (37.9 ) Foreign currency translation (2.6 ) (0.3 ) 7.0 UTBs—June 30 $ 303.6 $ 257.9 $ 228.9 As of June 30, 2018 , the Company had $303.6 of UTBs of which $124.7 represents the amount that, if recognized, would impact the effective income tax rate in future periods. As of June 30, 2018 and 2017 , the liability associated with UTBs, including accrued interest and penalties, is $135.4 and $154.6 , respectively, which is recorded in Income and other taxes payable and Other non-current liabilities in the Consolidated Balance Sheets. During fiscal 2018 , the Company accrued interest of $0.8 , while in fiscal 2017 and 2016 the Company accrued and released interest of $1.4 and $1.2 , respectively. During fiscal 2018 , the Company accrued penalty of $0.4 , while in fiscal 2017 and 2016 the Company accrued and released penalty of $0.1 and $0.1 , 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, 2018 and 2017 is $13.1 and $11.7 , respectively. The Company is present in approximately 55 tax jurisdictions, and at 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 2018 and 2017 , the Company recognized a tax benefit of $53.3 and $12.3 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 2009 and forward. On the basis of information available at June 30, 2018 , it is reasonably possible that a decrease of up to $9.0 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. On December 22, 2017, “H.R.1”, formerly known as the “Tax Cuts and Jobs Act” (“Tax Act”) was enacted. The Tax Act significantly revises the U.S. corporate income tax system by, amongst other things, reducing the federal tax rate on U.S. earnings to 21%, implementing a modified territorial tax system and imposing a one-time deemed repatriation tax on historical earnings generated by foreign subsidiaries that have not been repatriated to the U.S. As a result of the 2017 Tax Act changing the U.S. to a modified territorial tax system, the Company no longer asserts that any of its undistributed foreign earnings are permanently reinvested. We do not expect to incur significant withholding or state taxes on future distributions. To the extent there remains a basis difference between the financial reporting and tax basis of an investment in a foreign subsidiary after the repatriation of the previously taxed income of $4,500.0 , the Company is permanently reinvested. On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date of the Tax Act for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. In connection with the Company’s initial analysis of the impact of the Tax Act, the Company estimates the overall impact to be approximately $41.0 from a financial statement perspective and neutral from a cash perspective for fiscal 2018. The Company expects to fully offset the cash impact of the one-time deemed repatriation tax with tax attributes (e.g., net operating loss carryforwards, net operating losses generated in fiscal 2018, foreign tax credits, etc.). The expense in the financial statements as a result of utilizing these tax attributes of approximately $311.0 is expected to be largely offset by the tax benefit estimated on the revaluation of its deferred taxes of approximately $270.0 . For various reasons that are discussed more fully below, the Company has not completed its accounting for the income tax effects of certain elements of the Tax Act. Where the Company was able to make reasonable estimates of the effects of elements for which the analysis is not yet complete, provisional adjustments were recorded. These provisional estimates may be affected by other elements related to the Tax Act, including, but not limited to, the state tax effect of adjustments made to federal temporary differences, confirming the amount of fiscal 2018 foreign earnings that will be subject to the one-time deemed repatriation tax, the division of foreign earnings subject to the repatriation tax between cash and non-liquid assets, and validating the amount of tax attributes the Company expects to utilize against the repatriation tax. As the Company finalizes the analysis of the impact of the Tax Act, additional adjustments may be recorded during the measurement period. The Company will reflect measurement period adjustments, if any, in the period in which the adjustments are recognized. The Tax Act requires a U.S. shareholder of a foreign corporation to include in income its global intangible low-taxed income (“GILTI”). In general, GILTI is described as the excess of a U.S. shareholder’s total net foreign income over a deemed return on tangible assets. As a result of recently released FASB guidance, an entity may choose to recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or an entity can elect to treat GILTI as a period cost and include it in the tax expense of the year it is incurred. As such, the Company has elected to treat the tax on GILTI as a tax expense in the year it is incurred rather than recognizing deferred taxes. |
INTEREST EXPENSE, NET
INTEREST EXPENSE, NET | 12 Months Ended |
Jun. 30, 2018 | |
Interest Income (Expense), Net [Abstract] | |
INTEREST EXPENSE, NET | INTEREST EXPENSE, NET Interest expense, net for the years ended June 30, 2018 , 2017 and 2016 is presented below: Year Ended June 30, 2018 2017 2016 Interest expense $ 287.1 $ 219.6 $ 112.9 Foreign exchange (gain) losses, net of derivative contracts (a) (8.5 ) 3.4 (26.9 ) Interest income (13.6 ) (4.4 ) (4.1 ) Total interest expense, net $ 265.0 $ 218.6 $ 81.9 (a) In the years ended June 30, 2018 and 2016, the Company recorded gains of $1.4 and $11.1 , respectively, related to short-term forward contracts to exchange euros for U.S. dollars to facilitate the repayment of U.S. dollar denominated debt. Fluctuations in exchange rates between the dates the short-term forward contracts were entered into and the settlement date resulted in a gain upon settlement of $1.4 and $11.1 included within total Interest expense, net for the fiscal years end June 30, 2018 and 2016, respectively in the Company’s Consolidated Statements of Operations. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [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 2018 , 2017 and 2016 , the defined contribution expense for the U.S. defined contribution plan was $22.0 , $20.6 and $12.7 , respectively, and the defined contribution expense for the international savings plans was $18.3 , $13.3 and $5.7 , 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. Settlements and Curtailments for Pension Plans The Company settled obligations to U.S. Del Laboratories, Inc. pension plan (the “Del Plan”) participants during the first and second quarters of fiscal year 2017 resulting in the recognition of pre-tax settlement losses of $15.9 , included in Selling, general and administrative expenses in the Consolidated Statement of Operations for the year ended June 30, 2017 . As of December 31, 2016, the Del Plan had been fully terminated as a result of these actions. Additionally during fiscal year 2017, the Company recognized a curtailment gain of $1.8 in connection with involuntary employee terminations as part of the Acquisition Integration Program, which significantly reduced the expected years of future service of employees within one of the Company’s international pension plans. The curtailment gain is included in Restructuring costs in the Company’s Consolidated Statements of Operations for the year ended June 30, 2017. Refer to Note 6 — Restructuring Costs for further information about the Acquisition Integration Program. P&G Beauty Business Employee Benefit Plans In connection with the P&G Beauty Business acquisition, the Company assumed certain international pension and other post-employment benefit plan obligations and assets. The assumed benefit plans resulted in liabilities of $404.1 , representing the aggregate funded status of these plans as of the date of acquisition. As part of Global Integration Activities initiated during fiscal 2017, we concluded that our restructuring actions resulted in a significant reduction of future services of active employees primarily in our non-U.S. pension plans. As a result, we recognized net settlement and curtailment gains of $0.4 and $0.4 , respectively, in restructuring costs during fiscal 2017. 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., France, 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. Settlements and Curtailments for OPEB Plans The Company amended one of our non-U.S. postretirement healthcare plans during fiscal 2018, which significantly reduced the expected years of future service for employees participating in the plan. The amendment triggered a curtailment gain of $10.4 , which is included in Selling, general and administrative expenses in the Consolidated Statement of Operations for the year ended June 30, 2018. 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 2018 2017 2018 2017 2018 2017 2018 2017 Change in benefit obligation Benefit obligation—July 1 $ 18.8 $ 82.1 $ 708.8 $ 203.6 $ 63.8 $ 47.7 $ 791.4 $ 333.4 Service cost — — 38.8 34.8 1.4 1.9 40.2 36.7 Interest cost 0.7 1.6 12.6 6.6 2.0 1.8 15.3 10.0 Plan participants’ contributions — — 7.1 15.0 0.2 0.2 7.3 15.2 Benefits paid (1.3 ) (2.5 ) (29.6 ) (9.6 ) (1.6 ) (2.0 ) (32.5 ) (14.1 ) Premiums paid — — (2.7 ) (2.9 ) — — (2.7 ) (2.9 ) Pension curtailment — — 0.3 (2.2 ) (10.4 ) — (10.1 ) (2.2 ) Pension settlements — (60.2 ) (1.0 ) (23.0 ) — — (1.0 ) (83.2 ) Actuarial (gain) loss (0.7 ) (2.2 ) (6.3 ) (80.9 ) (2.5 ) (1.4 ) (9.5 ) (84.5 ) Acquired obligations (a) — — — 557.4 — 15.4 — 572.8 Effect of exchange rates — — 4.6 10.1 0.3 0.1 4.9 10.2 Other — — — (0.1 ) — 0.1 — — Benefit obligation—June 30 $ 17.5 $ 18.8 $ 732.6 $ 708.8 $ 53.2 $ 63.8 $ 803.3 $ 791.4 Change in plan assets Fair value of plan assets—July 1 $ — $ 53.2 $ 234.2 $ 42.4 $ 0.4 $ — $ 234.6 $ 95.6 Actual return on plan assets — (0.8 ) 18.8 10.6 — — 18.8 9.8 Employer contributions 1.3 10.1 37.1 29.8 1.4 1.8 39.8 41.7 Plan participants’ contributions — — 7.1 15.0 0.2 0.2 7.3 15.2 Benefits paid (1.3 ) (2.5 ) (29.2 ) (9.6 ) (1.6 ) (2.0 ) (32.1 ) (14.1 ) Premiums paid — — (2.7 ) (2.9 ) — — (2.7 ) (2.9 ) Plan settlements — (60.2 ) (1.0 ) (23.0 ) — — (1.0 ) (83.2 ) Acquired plan assets (a) — — — 168.3 — 0.4 — 168.7 Effect of exchange rates — — (2.5 ) 3.6 — — (2.5 ) 3.6 Other — 0.2 — — — — — 0.2 Fair value of plan assets—June 30 — — 261.8 234.2 0.4 0.4 262.2 234.6 Funded status—June 30 $ (17.5 ) $ (18.8 ) $ (470.8 ) $ (474.6 ) $ (52.8 ) $ (63.4 ) $ (541.1 ) $ (556.8 ) (a) As a result of the acquisition of the P&G Beauty Business, the Company acquired certain international pension plans during Fiscal 2017. See Note 3 — Business Combinations for additional information. 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, 2018 and 2017 , are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2018 2017 2018 2017 2018 2017 2018 2017 Noncurrent assets $ — $ — $ 1.1 $ 0.5 $ — $ — $ 1.1 $ 0.5 Current liabilities (1.3 ) (1.3 ) (5.5 ) (4.9 ) (2.1 ) (1.9 ) (8.9 ) (8.1 ) Noncurrent liabilities (16.2 ) (17.5 ) (466.4 ) (470.2 ) (50.7 ) (61.5 ) (533.3 ) (549.2 ) Funded status (17.5 ) (18.8 ) (470.8 ) (474.6 ) (52.8 ) (63.4 ) (541.1 ) (556.8 ) AOC(L)/I 1.7 2.5 44.7 25.1 20.1 23.9 66.5 51.5 Net amount recognized $ (15.8 ) $ (16.3 ) $ (426.1 ) $ (449.5 ) $ (32.7 ) $ (39.5 ) $ (474.6 ) $ (505.3 ) The accumulated benefit obligation for the U.S. defined benefit pension plans was $17.5 and $18.8 as of June 30, 2018 and 2017 , respectively. The accumulated benefit obligation for international defined benefit pension plans was $669.1 and $640.6 as of June 30, 2018 and 2017 , 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 2018 2017 2018 2017 2018 2017 2018 2017 Projected benefit obligation $ 17.5 $ 18.8 $ 713.9 $ 695.0 $ 17.5 $ 18.8 $ 725.0 $ 705.6 Accumulated benefit obligation 17.5 18.8 657.8 631.6 17.5 18.8 669.1 640.6 Fair value of plan assets — — 247.0 223.9 — — 254.2 230.4 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 2018 2017 2016 2018 2017 2016 2018 2017 2016 2018 2017 2016 Service cost $ — $ — $ — $ 38.8 $ 34.8 $ 6.5 $ 1.4 $ 1.9 $ 1.1 $ 40.2 $ 36.7 $ 7.6 Interest cost 0.7 1.6 3.4 12.6 6.6 3.6 2.0 1.8 1.9 15.3 10.0 8.9 Expected return on plan assets — (0.9 ) (2.6 ) (7.5 ) (6.3 ) (1.1 ) — — — (7.5 ) (7.2 ) (3.7 ) Amortization of prior service (credit) cost — — — 0.2 0.2 0.2 (5.9 ) (5.9 ) (5.9 ) (5.7 ) (5.7 ) (5.7 ) Amortization of net loss (gain) (0.7 ) 2.3 1.2 1.2 4.2 2.6 (0.1 ) 0.1 — 0.4 6.6 3.8 Settlements loss (gain) recognized — 15.9 — — (0.5 ) 0.1 — — — — 15.4 0.1 Curtailment (gain) loss recognized — — — 0.1 (2.2 ) — (10.4 ) — (1.8 ) (10.3 ) (2.2 ) (1.8 ) Net periodic benefit cost $ — $ 18.9 $ 2.0 $ 45.4 $ 36.8 $ 11.9 $ (13.0 ) $ (2.1 ) $ (4.7 ) $ 32.4 $ 53.6 $ 9.2 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 2018 2017 2018 2017 2018 2017 2018 2017 Net actuarial (loss) gain $ 1.7 $ 2.5 $ 46.7 $ 27.4 $ 3.8 $ 1.7 $ 52.2 $ 31.6 Prior service (cost) credit — — (2.0 ) (2.3 ) 16.3 22.2 14.3 19.9 Total recognized in AOC(L)/I $ 1.7 $ 2.5 $ 44.7 $ 25.1 $ 20.1 $ 23.9 $ 66.5 $ 51.5 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 2018 2017 2018 2017 2018 2017 2018 2017 Net actuarial (loss) gain $ 0.7 $ 0.4 $ 17.8 $ 85.2 $ 2.3 $ 1.4 $ 20.8 $ 87.0 Amortization of prior service cost (credit) — — 0.2 0.2 (5.9 ) (5.9 ) (5.7 ) (5.7 ) Recognized net actuarial loss (gain) (0.6 ) 17.6 1.2 3.7 (0.1 ) 0.1 0.5 21.4 Effect of exchange rates — — 0.3 2.7 0.1 0.3 0.4 3.0 Total recognized in OCI/(L) $ 0.1 $ 18.0 $ 19.5 $ 91.8 $ (3.6 ) $ (4.1 ) $ 16.0 $ 105.7 Amounts in AOCI/(L) expected to be amortized as components of net periodic benefit cost during fiscal 2019 are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International Prior service (cost) credit $ — $ (0.2 ) $ 5.9 $ 5.7 Net gain (loss) 0.7 (0.4 ) 0.1 0.4 Total $ 0.7 $ (0.6 ) $ 6.0 $ 6.1 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 2018 2017 2018 2017 2018 2017 Discount rates 4.0% 3.6% 0.6%-8.0% 0.4%-7.5% 2.3%-4.2% 1.9%-7.6% Future compensation growth rates N/A N/A 1.5%-5.8% 0%-6.0% N/A N/A The weighted-average assumptions used to determine the Company’s net periodic benefit cost in fiscal 2018 , 2017 and 2016 are presented below: Pension Plans Other Post- U.S. International 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rates 3.6% 3.3%-3.8% 4.1%-4.5% 0.4%-7.5% 0.2%-7.8% 1.0%-2.7% 1.9%-7.6% 1.4%-8.0% 4.1%-4.6% Future compensation growth rates N/A N/A N/A 1.5%-6.0% 1.5%-5.8% 1.5%-2.5% N/A N/A N/A Expected long-term rates of return on plan assets N/A N/A 5.1% 1.8%-8.2% 1.6%-6.0% 2.3%-4.3% N/A N/A N/A The health care cost trend rate assumptions have a significant effect on the amounts reported. Year Ended June 30, 2018 2017 2016 Health care cost trend rate assumed for next year 7.4%-8.5% 7.2%-7.4% 7.2%-7.4% 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 2026 2025 2024 - 2025 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 $ (5.3 ) Effect on post-employment benefit obligation 0.4 (0.4 ) 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, the Company’s 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 asset allocations for the Company’s pension plans as of June 30, 2018 and 2017 , by asset category are presented below: % of Plan Assets at Year Ended Target 2018 2017 Equity securities 40 % 41 % 41 % Fixed income securities 50 % 42 % 39 % Cash and other investments 10 % 17 % 20 % Fair Value of Plan Assets The 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 — Summary of Significant Accounting Policies , as of June 30, 2018 and 2017 are presented below: Level 1 Level 2 Level 3 Total 2018 2017 2018 2017 2018 2017 2018 2017 Equity securities $ 63.0 $ 53.4 $ — $ — $ — $ — $ 63.0 $ 53.4 Fixed income securities: Corporate securities 54.6 50.5 — — — — 54.6 50.5 Other: Cash and cash equivalents 0.9 0.5 — — — — 0.9 0.5 Insurance contracts and other — — — — 143.7 130.2 143.7 130.2 Total pension plan assets $ 118.5 $ 104.4 $ — $ — $ 143.7 $ 130.2 $ 262.2 $ 234.6 The following is a description of the valuation methodologies used for plan assets measured at fair value: Equity securities -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. 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 1 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 and other - Includes contracts issued by insurance companies and other investments that are not publicly traded. These investments are generally classified as Level 3 as there are neither quoted prices nor other observable inputs for pricing. Insurance contracts are valued at cash surrender value, which approximates the contract fair value. Other Level 3 plan assets include real estate and other alternative investment funds requiring inputs that cannot be readily derived from observable market data due to the infrequency with which the underlying assets trade. 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 Company also sponsors qualified defined benefit pension plans for certain eligible German employees. The Company’s German pension plans are partially funded with plan assets held in a Contractual Trust Arrangement, under which Company assets have been irrevocably transferred to a registered association for the exclusive purpose of securing and funding pension obligations in Germany. The association invests primarily in publicly tradable equity and fixed income securities, using a funding strategy that is reviewed on a regular basis. Plan assets are also held in the Company’s other non-U.S. defined benefit pension plans. The other non-U.S. defined benefit pension plans provide benefits primarily based on earnings and years of service and are funded in compliance with local laws and practices. The plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification and investment return over the long term at an acceptable level of risk. The reconciliations of Level 3 plan assets measured at fair value in fiscal 2018 and 2017 are presented below: June 30, June 30, Insurance contracts: Fair value—July 1 $ 130.2 $ 42.4 Plan assets from acquisitions — 75.7 Return on plan assets 14.0 4.7 Purchases, sales and settlements, net 3.9 5.3 Effect of exchange rates (4.4 ) 2.1 Fair value—June 30 $ 143.7 $ 130.2 Contributions The Company plans to contribute approximately $1.3 to its remaining U.S. pension plan and expects to contribute approximately $36.8 and $2.1 to its international pension and other post-employment benefit plans, respectively, during fiscal 2019 . 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 2019 $ 1.3 $ 40.5 $ 2.1 $ 43.9 2020 1.3 26.6 2.5 30.4 2021 1.3 26.5 2.9 30.7 2022 1.3 29.1 3.1 33.5 2023 1.2 28.0 3.3 32.5 2024 - 2027 5.9 167.2 17.5 190.6 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Foreign Exchange Risk The Company is exposed to foreign currency exchange fluctuations through its global operations. 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 and also by designating foreign currency denominated borrowings as hedges of net investments in foreign subsidiaries. The Company expects that through hedging, any gain or loss on the derivative instruments would generally offset the expected increase or decrease in the value of the underlying forecasted transactions. The Company entered into derivatives for which hedge accounting treatment has been applied which the Company anticipates realizing in the Consolidated Statements of Operations through fiscal 2019 . The Company enters into foreign exchange forward contracts to hedge anticipated transactions for periods consistent with the Company’s identified exposures to minimize the effect of foreign exchange rate movements on revenues, 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 exchange forward contracts used to hedge anticipated transactions have been designated as foreign exchange cash-flow hedges. Hedge effectiveness of foreign exchange forward contracts is based on the forward-to-forward hypothetical derivative methodology and includes all changes in value. The Company also continued to use certain derivatives as economic hedges of foreign currency exposure on firm commitments and forecasted transactions, which do not qualify for hedge accounting. 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 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. Interest Rate Risk The Company is exposed to interest rate fluctuations related to its variable rate debt instruments. The Company may reduce its exposure to fluctuations in the cash flows associated with changes in the variable interest rates by entering into offsetting positions through the use of derivative instruments, such as interest rate swap contracts. The interest rate swap contracts result in recognizing a fixed interest rate for the portion of the Company’s variable rate debt that was hedged. This will reduce the negative impact of increases in the variable rates over the term of the contracts. During fiscal 2016, the Company entered into interest rate swap contracts that have been designated as cash-flow hedges. Hedge effectiveness of interest rate swap contracts is based on a long-haul hypothetical derivative methodology and includes all changes in value. As of June 30, 2018 and 2017 , the Company had interest rate swap contracts designated as effective hedges in the notional amount of $2,000.0 . Hedge Accounting Derivative financial instruments are recorded as either assets or liabilities on the Consolidated Balance Sheets and are measured at fair value. 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. 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. For derivatives designated as cash flow hedges, changes in the fair value are recorded in 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. 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. Cash flows from derivative instruments designated as cash flow hedges are recorded in the same category as the cash flows from the items being hedged in the Consolidated Statements of Cash Flows. The ineffective portion of foreign exchange forward and interest rate swap contracts are recorded in current-period earnings. For hedge contracts that are no longer deemed highly effective, hedge accounting is discontinued and gains and losses accumulated in Other comprehensive income (loss) (“OCI”) 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/(L) are reclassified to current-period earnings. For fiscal 2018 , all of the Company’s foreign exchange forward and interest rate swap contracts designated as hedges were highly effective. The Company also attempts to minimize credit exposure to counterparties by entering into derivative contracts with counterparties that are major financial institutions and utilizing master netting arrangements. Exposure to credit risk in the event of nonperformance by any of the counterparties with respect to the Company’s foreign exchange forward contracts is limited to the fair value of contracts in net asset positions under master netting arrangements. Exposure to credit risk in the event of nonperformance by any of the counterparties with respect to the Company’s interest rate swap contracts is limited to the fair value of contracts in net asset positions. Accordingly, management of the Company believes risk of material loss under these hedging contracts is remote. Net Investment Hedge Foreign currency gains and losses on borrowings designated as a net investment hedge, except ineffective portions, are reported in the cumulative translation adjustment (“CTA”) component of AOCI/(L), along with the foreign currency translation adjustments on those investments. Foreign currency denominated borrowings designated as net investment hedges had nominal exposures of €3,204.1 million and €656.7 million as of June 30, 2018 and 2017 , respectively. Net investment hedge effectiveness is assessed based on the change in the spot rate of the foreign currency denominated loans payable. The critical terms (underlying notional and currency) of the loans payable match the portion of the net investments designated as being hedged. The net investment hedges were equal to the designated portions of the international subsidiaries’ investment balances as of June 30, 2018 . As such, the net investment hedges were considered to be effective, and, as a result, the changes in the fair value were recorded within CTA on the Company’s Consolidated Balance Sheets. Derivative and non-derivative financial instruments which are designated as hedging instruments: The accumulated gain (loss) on foreign currency borrowings classified as net investment hedges in the foreign currency translation adjustment component of AOCI/(L) was $115.0 and $(23.7) as of June 30, 2018 and 2017 , respectively. The amount of gains and losses recognized in OCI in the Consolidated Balance Sheets related to the Company’s derivative and non-derivative financial instruments which are designated as hedging instruments is presented below: Gain (Loss) Recognized in OCI Fiscal Year Ended June 30, 2018 2017 2016 Foreign exchange forward contracts $ (0.3 ) $ (0.8 ) $ 6.0 Interest rate swap contracts 27.0 40.8 (36.6 ) Net investment hedges 138.7 (21.2 ) (2.5 ) The accumulated gain on derivative instruments classified as cash flow hedges in AOCI/(L), net of tax, was $31.7 and $12.6 as of June 30, 2018 and 2017 , respectively. The estimated net gain related to these effective hedges that is expected to be reclassified from AOCI/(L) into earnings, net of tax, within the next twelve months is $13.0 . The amount of gains and losses reclassified from AOCI/(L) to the Consolidated Statements of Operations related to the Company’s derivative financial instruments which are designated as hedging instruments is presented below: Consolidated Statements of Operations Classification of Gain (Loss) Reclassified from AOCI/(L) Fiscal Year Ended June 30, 2018 2017 2016 Foreign exchange forward contract: Net revenues $ (0.8 ) $ 2.4 $ 5.5 Cost of sales (0.7 ) (2.2 ) 0.7 Interest rate swap contracts: Interest income (expense), net 6.9 (9.3 ) (7.7 ) Derivatives not designated as hedging instruments: The amount of gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments is presented below: Consolidated Statements of Operations Fiscal Year Ended June 30, 2018 2017 2016 Selling, general and administrative $ (0.8 ) $ (0.1 ) $ 1.8 Interest income (expense), net 17.5 (6.5 ) (11.3 ) Other income (expense), net (a) 0.2 (1.1 ) (29.3 ) (a) During fiscal 2016, the Company recognized $29.6 of realized losses on foreign currency forward contracts related to an advanced payment for the Hypermarcas Brands. |
MANDATORILY REDEEMABLE FINANCIA
MANDATORILY REDEEMABLE FINANCIAL INTEREST | 12 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
MANDATORILY REDEEMABLE FINANCIAL INTEREST | MANDATORILY REDEEMABLE FINANCIAL INTEREST United Arab Emirates subsidiary The Company is required under a shareholders agreement to purchase all of the shares held by the noncontrolling interest holder equal to 25% of the outstanding shares of a certain subsidiary in the United Arab Emirates (the “U.A.E. subsidiary”) at the termination of the agreement. The Company has determined such shares to be a mandatorily redeemable financial instrument (“MRFI”) that is recorded as a liability. The liability is calculated based upon a pre-determined formula in accordance with the related U.A.E. Shareholders Agreement. As of June 30, 2018 and 2017 , the liability amounted to $8.2 and $5.2 , respectively, of which $6.7 and $4.7 , respectively, was recorded in Other noncurrent liabilities and $1.5 and $0.5 , respectively, was recorded in Accrued expenses and other current liabilities. The assets of the U.A.E. subsidiary are restricted in that they are not available for general business use outside the context of the U.A.E. subsidiary and creditors (or beneficial interest holders) do not have recourse to the Company or to its other assets. The U.A.E. subsidiary has total assets and total liabilities of $33.2 and $20.2 as of June 30, 2018 , and $22.8 and $16.5 as of June 30, 2017 , respectively. Southeast Asian subsidiary On May 23, 2017, the Company entered into the Sale of Shares and Termination Deed (the “Termination Agreement”) to purchase the remaining 49% noncontrolling interest from the noncontrolling interest holder of a certain Southeast Asian subsidiary for a purchase price of $45.0 . Additionally, all remaining retained earnings will be paid out as dividends prior to the purchase. The payment and termination will be effective on June 30, 2019. As a result of the Termination Agreement, the noncontrolling interest balance is recorded as an MRFI. The MRFI balance will be accreted to the redemption value until the effective date of the purchase with changes in the balance being reflected in Other income (expense) in the Consolidated Statements of Operations. As of June 30, 2018 and 2017 , the MRFI liability amounted to $45.1 and $49.3 , respectively, of which $0.0 and $41.7 , respectively, was recorded in Other noncurrent liabilities and $45.1 and $7.6 , respectively, was recorded in Accrued expenses and other current liabilities. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS As of June 30, 2018 , the redeemable noncontrolling interests (“RNCI”) consist of interests in a consolidated subsidiary in the Middle East and in the consolidated subsidiaries related to the Younique acquisition. See Note 3 — Business Combinations . Younique On February 1, 2017, after the close of the acquisition, the pre-acquisition Younique membership holders had a 40.0% membership interest in Foundation. On October 15, 2017, shares of Foundation were issued to employees of Younique under a stock ownership program and incentive stock grants were granted, resulting in a 0.7% increase to the noncontrolling interest ownership percentage. During the quarter ended March 31, 2018, additional shares of Foundation were issued and additionally shares were forfeited under the program resulting in a net decrease of 0.1% to the noncontrolling interest ownership percentage. The cumulative impact of the additional shares for the nine months ended March 31, 2018 was recorded as an increase to RNCI of $7.6 , a decrease in APIC of $7.4 and cash proceeds of $0.2 . The Company accounts for the 40.6% noncontrolling interest portion of Foundation as RNCI due to the noncontrolling interest holder’s ability to put their shares to the Company in certain circumstances. While Foundation is a majority-owned consolidated subsidiary, the Company records income tax expense based on the Company’s 59.4% membership interest in Foundation due to its treatment as a partnership for U.S. income tax purposes. Accordingly, Foundation’s net income attributable to RNCI is equal to the 40.6% noncontrolling interest of Foundation’s net income excluding a provision for income taxes. On December 22, 2017, the Tax Act was enacted, which included a reduction of the U.S. corporate tax rate. The tax rate change was the primary driver of a $79.2 adjustment to the fair value of the RNCI balance for the quarter ended December 31, 2017. The Company recognized $597.7 and $481.6 as the redeemable noncontrolling interest balances as of June 30, 2018 and 2017 , respectively. The Company has the right to purchase the RNCI in Foundation from the RNCI holders (each such right, a “Foundation Call right”) upon the occurrence of certain events that are not in the Company’s control. In addition to the Foundation Call right features, the noncontrolling interest holders of Foundation have the right to sell the noncontrolling interests to the Company upon the occurrence of certain events (each such right, a “Foundation Put right”). The amount at which the Foundation Put right and Foundation Call right can be exercised is based on a fair value at the exercise date, multiplied by the noncontrolling interest holder’s percentage interest in Foundation. In certain circumstances the Foundation Put right or the Foundation Call right may be exercised at a discount or a premium. Currently management views the possibility of these circumstances occurring as remote. The noncontrolling interests are redeemable outside of the Company’s control and are recorded in the Consolidated Balance Sheets at the estimated fair value. The Company adjusts Foundation’s RNCI to the fair values at the end of each reporting period with changes recognized as adjustments to APIC. The Company uses an income approach, a market approach or a combination of these approaches to estimate the fair value of the Foundation RNCI. The income approach is used to determine the fair value of the Foundation RNCI using a discounted cash flow method, projecting future cash flows of the business, as well as a terminal value, and discounting such cash flows at a rate of return that reflects the relative risk of the cash flows. For the market approach the Company uses a selected multiple based on comparable companies multiplied by the forecasted cash flows. The key estimates and factors used in this approach include, but are not limited to, revenue growth rates and profit margins based on our internal forecasts and the entity specific weighted-average cost of capital used to discount future cash flows. Subsidiary in the Middle East As of July 1, 2017, the amended shareholders’ agreement relating to the Company’s subsidiary in the Middle East (“Middle East Subsidiary”) reduced the percentage of the noncontrolling interest holder’s share to 25% in exchange for Coty contributing the brands acquired as part of the P&G Beauty Business acquisition to the subsidiary’s portfolio of brands. This resulted in a dilution of the RNCI that resulted in a decrease of the RNCI and an increase of APIC of $17.0 . The Company has the ability to exercise the Call right for the remaining noncontrolling interest of 25% on December 31, 2028, with such transaction to close on December 31, 2029. In addition to the Call right feature, the noncontrolling interest holder has the right to sell the noncontrolling interest to the Company on December 31, 2028, with such transaction to close on December 31, 2029 (a “Put right”). The amount at which the Put right and Call right can be exercised is based on a formula prescribed by the amended shareholders’ agreement as summarized in the table below, multiplied by the noncontrolling interest holder’s percentage interest in the Middle East Subsidiary. Given the provision of the Put right, the entire noncontrolling interest is redeemable outside of the Company’s control and is recorded in the Consolidated Balance Sheets at the estimated redemption value. The Company adjusts the redeemable noncontrolling interest to the redemption values at the end of each reporting period with changes recognized as adjustments to APIC. The Company recognized $63.6 and $70.2 as the redeemable noncontrolling interest balances as of June 30, 2018 and 2017 , respectively. Middle East Percentage of redeemable noncontrolling interest 25.0% (a) Earliest exercise date(s) December 2028 (b) Formula of redemption value 3-year average of EBIT (c) * 6 (a) Upon the effective date of the amendment (July 1, 2017), the parties will be entitled to call or put the remaining interest in July 2028. The Put right and Call right will be exercised in respect of the noncontrolling interest holder’s percentage of shares of the Middle East subsidiary at the time of the exercise. (b) Upon the effective date of the amendment (July 1, 2017), the parties will be entitled to call or put the noncontrolling interest holder’s percentage of shares of the subsidiary in December 2028. (c) EBIT is defined in the amended shareholders’ agreement as the consolidated net earnings before interest and income tax. |
EQUITY
EQUITY | 12 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
EQUITY | EQUITY Common Stock As of June 30, 2018 , the Company’s common stock consisted of Class A Common Stock with a par value of $0.01 per share. The holders of Class A Common Stock are entitled to one vote per share. Prior to September 30, 2016, the Company had Class B Common Stock outstanding. As of June 30, 2018 , total authorized shares of Class A Common Stock was 1,000.0 million and total outstanding shares of Class A Common Stock was 750.7 million . In the fiscal years ended June 30, 2018 , 2017 , and 2016 , the Company issued 2.9 million , 2.5 million , and 4.7 million shares of its Class A Common Stock, respectively, and received $22.6 , $21.3 , and $40.9 , in cash, respectively, in connection with the exercise of employee stock options and settlement of RSUs and special incentive awards. On October 1, 2016, the Company issued 409.7 million shares of Class A Common Stock in connection with the closing of the P&G Beauty Business acquisition as described in Note 3 — Business Combinations . On September 30, 2016, JABC converted all of its shares of Class B Common Stock of the Company into shares of Class A Common Stock of the Company. The Company issued approximately 262.0 million shares of Class A Common Stock to JABC upon the conversion of JABC’s shares of Class B Common Stock. Prior to October 1, 2016, the Company was a majority-owned subsidiary of JAB Cosmetics B.V. (“JABC”). Both JABC and the shares of the Company held by JABC are indirectly controlled by Lucresca SE, Agnaten SE and JAB Holdings B.V. (“JAB”). During the fiscal years ended June 30, 2018 and 2017 , JABC acquired 14.9 million and 2.6 million shares, respectively, of Class A Common Stock in the open market. The Company did not receive any proceeds from these stock purchases conducted by JABC. As of June 30, 2018 , the Company was not a majority-owned subsidiary of JAB. On September 29, 2016, the Company filed with the Secretary of State of the State of Delaware a Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation amending the Amended and Restated Certificate of Incorporation of the Company to increase the number of authorized shares of Class A Common Stock from 800.0 million shares to 1,000.0 million shares. Preferred Stock As of June 30, 2018 , 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. On May 18, 2018, the Company reduced the total authorized number of shares of Series A Preferred Stock from 6,506,106 to 6,319,641 . The Series A Preferred Stock are issued to executive officers and directors under subscription agreements. Generally, the subscription agreements entitle the holder of the vested Series A Preferred Stock to exchange the Series A Preferred Stock into either cash or shares of Class A Common Stock, at the election of the Company, at the exchange value. The exchange value generally is equal to the difference between the 10-day trailing average closing price of a share of Class A Common Stock on the date of exchange and a predetermined hurdle price. The Series A Preferred Stock generally vests on the fifth anniversary of issuance, subject to continued employment with the Company and investment by the holder in shares of Class A Common Stock throughout the vesting period. To the extent the Company controls whether such shares will be settled in cash or equity and intends to settle the grant in equity, the grant is treated as an equity grant, otherwise the grant is treated as a liability grant. The following table summarizes the key terms of each issuance of Series A Preferred Stock: Issuance Date Number of Shares Awarded at Grant Date (millions of shares) Number of Shares Outstanding (millions of shares) Hurdle Price per Share April 2015 (a) 6.8 1.1 $ 27.97 April 2015 (a) 0.6 0.6 $ 26.87 November 25, 2016 (b) 1.0 1.0 $ 22.34 February 16, 2017 (b) 0.5 0.3 $ 22.66 March 27, 2017 (b) (c) 1.0 1.0 $ 22.39 November 16, 2017 (b) 1.0 1.0 $ 19.85 (a) If the holder does not exchange the vested Series A Preferred Stock by a specified 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. The portion related to service outside the United States, may be settled in cash or shares, at election of the Company. (b) If the holder does not exchange the vested Series A Preferred Stock by a specified expiration date, the Company must automatically exchange the Series A Preferred Stock into cash or shares, at election of the Company. (c) This grant was sold to Lambertus J.H. Becht (“Mr. Becht”), the Company’s Chairman of the Board. Under the terms provided in the subscription agreement, the Series A Preferred Stock immediately vested on the grant date and the holder may exchange the vested shares after the fifth anniversary of the date of issuance. The Company requires shareholder approval in order to settle the exchange in shares of Class A Common Stock. Therefore, the award is classified as a liability as of June 30, 2018 . An expense (income) of $(1.7) and $3.8 was recorded during fiscal 2018 and 2017, respectively, and has been included in Selling, general and administrative expense on the Consolidated Statements of Operations. As of June 30, 2018 , total authorized shares of Series A Preferred Stock are 6.3 million and total outstanding shares of Series A Preferred Stock are 5.0 million . Of the 5.0 million outstanding shares of Series A Preferred Stock, 1.0 million shares vested on March 27, 2017, 1.7 million shares vest on April 15, 2020, 1.0 million shares vest on November 25, 2021, 0.3 million shares vest on February 16, 2022 and 1.0 million shares vest on November 16, 2022. As of June 30, 2018 , the Company classified $2.7 Series A Preferred Stock as equity and $4.3 as a liability, inclusive of the related cash bonuses, recorded in Other noncurrent liabilities in the Consolidated Balance Sheet. Dividends Prior to October 2016, the Company declared annual cash dividends in the first quarter of the fiscal year. Beginning after October 2016, the Company began declaring cash dividends on a quarterly basis. The Transaction Agreement restricted the Company’s ability to declare, make or pay any dividends, other than in the ordinary course and for an amount not to exceed $0.25 per share prior to the closing of the P&G Beauty Business transaction, without P&G consent. In July 2016, P&G provided consent to the Company’s dividend declared on August 1, 2016. The following dividends were declared during fiscal years 2018 , 2017 and 2016 : Declaration Date Dividend Type Dividend Per Share Holders of Record Date Dividend Value Dividend Payment Date Dividends Paid Dividends Payable (a) Fiscal 2018 August 22, 2017 Quarterly $ 0.125 September 1, 2017 $ 94.4 September 14, 2017 $ 93.6 $ 0.8 November 9, 2017 Quarterly $ 0.125 November 30, 2017 $ 94.6 December 14, 2017 $ 93.7 $ 0.9 February 8, 2018 Quarterly $ 0.125 February 28, 2018 $ 94.6 March 15, 2018 $ 93.8 $ 0.8 May 9, 2018 Quarterly $ 0.125 May 31, 2018 $ 94.6 June 14, 2018 $ 93.8 $ 0.8 Fiscal 2018 $ 0.500 $ 378.2 $ 374.9 $ 3.3 Fiscal 2017 August 1, 2016 Annual $ 0.275 August 11, 2016 $ 93.4 August 19, 2016 $ 92.4 $ 1.0 December 9, 2016 Quarterly $ 0.125 December 19, 2016 $ 94.0 December 28, 2016 $ 93.4 $ 0.6 February 9, 2017 Quarterly $ 0.125 February 28, 2017 $ 94.0 March 10, 2017 $ 93.4 $ 0.6 May 10, 2017 Quarterly $ 0.125 May 31, 2017 $ 94.0 June 13, 2017 $ 93.4 $ 0.6 Fiscal 2017 $ 0.650 $ 375.4 $ 372.6 $ 2.8 Fiscal 2016 September 11, 2015 Annual $ 0.250 October 1, 2015 $ 90.1 October 15, 2015 $ 89.0 $ 1.1 (a) The dividend payable is the value of the remaining dividends payable upon settlement of the RSUs and phantom units outstanding as of the Holders of Record Date. Dividends payable are recorded as Accrued expense and other current liabilities and Other noncurrent liabilities in the Consolidated Balance Sheet. The Company decreased the dividend accrual recorded in a prior period by $0.9 to adjust for the payment of previously accrued dividends on RSUs that vested during the twelve months ended June 30, 2018 . Additionally, the Company decreased the dividend accrual recorded in a prior period by $0.6 , $0.4 and $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, 2018 , 2017 and 2016 , respectively. Total accrued dividends on unvested RSUs and phantom units of $0.8 and $5.2 , $1.0 and $3.2 and nil and $1.8 are included in Accrued expense and other current liabilities and Other noncurrent liabilities, respectively, in the Condensed Consolidated Balance Sheet as of June 30, 2018 , 2017 and 2016 , respectively. Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustments (Losses) Gains on Cash Flow Hedges (Losses) Gains on Net Investment Hedge Foreign Currency Translation Adjustments Pension and Other Post-Employment Benefit Plans Total Beginning balance at July 1, 2016 $ (28.9 ) $ (2.5 ) $ (164.0 ) $ (44.3 ) $ (239.7 ) Other comprehensive income before reclassifications 35.9 (21.2 ) 143.2 80.5 238.4 Net amounts reclassified from AOCI/(L) (a) 5.6 — — 0.1 5.7 Net current-period other comprehensive income 41.5 (21.2 ) 143.2 80.6 244.1 Ending balance at June 30, 2017 $ 12.6 $ (23.7 ) $ (20.8 ) $ 36.3 $ 4.4 Other comprehensive income before reclassifications 19.2 138.7 (23.5 ) 20.8 155.2 Net amounts reclassified from AOCI/(L) (a) (4.0 ) — — (3.3 ) (7.3 ) Net current-period other comprehensive income 15.2 138.7 (23.5 ) 17.5 147.9 Adjustment due to the adoption of ASU 2018-02 (Note 2) 3.9 — — 2.6 6.5 Ending balance at June 30, 2018 $ 31.7 $ 115.0 $ (44.3 ) $ 56.4 $ 158.8 (a) Amortization of actuarial gains (losses) of $5.2 and $0.4 , net of taxes of $1.9 and $0.3 , were reclassified out of AOCI/(L) and included in the computation of net period pension costs for the fiscal years ended June 30, 2018 and 2017 , respectively (see Note 17 — Employee Benefit Plans ). Treasury Stock - Share Repurchase Program Since February 2014, the Board has authorized the Company to repurchase its Class A Common Stock under approved repurchase programs. On February 3, 2016, the Board authorized the Company to repurchase up to $500.0 of its Class A Common Stock (the “Incremental Repurchase Program”). Subject to certain restrictions on repurchases of shares through September 30, 2018 imposed by the tax matters agreement, dated October 1, 2016, between the Company and P&G entered into in connection with the P&G Beauty Business acquisition, repurchases may 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 Class A Common Stock, and general market conditions. As of June 30, 2018 , the Company has $396.8 remaining under the Incremental Repurchase Program. The following table summarizes the share repurchase activities during the years ended June 30, 2018, 2017 and 2016 : Period Number of shares repurchased (in millions) Cost of shares repurchased (in millions) Lowest fair value of shares repurchased per share Highest fair value of shares repurchased per share Fiscal Year Ended June 30, 2018 — $ — $ — $ — Fiscal Year Ended June 30, 2017 1.4 $ 36.3 $ 25.35 $ 27.40 Fiscal Year Ended June 30, 2016 27.4 $ 767.0 $ 25.10 $ 30.35 Treasury Stock - Other Repurchases In addition to the above mentioned repurchase activities, on December 3, 2015, the Company entered into a stock purchase agreement with a shareholder holding more than 5% of the Company’s Class A Common Stock to repurchase 1.0 million shares of its Class A Common Stock. On December 17, 2015, the Company remitted payment for the repurchased shares at a price of $27.91 per share. The fair value of shares repurchased was approximately $27.9 , which was recorded as an increase to Treasury stock in the Consolidated Balance Sheets and Consolidated Statements of Equity and Redeemable Noncontrolling Interests. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Jun. 30, 2018 | |
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 “the Compensation 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, 2018 , approximately 58.6 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 partially as equity and partially using 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 2018 , 2017 and 2016 of $33.4 , $29.0 and $35.4 , respectively, is included in Selling, general and administrative expenses in the Consolidated Statements of Operations. The related tax benefits for share-based compensation are $2.8 , $4.4 , and $6.7 for fiscal 2018 , 2017 and 2016 , respectively. As of June 30, 2018 , the total unrecognized share-based compensation expense related to unvested stock options, Series A Preferred Stock and restricted stock units and other share awards is $38.4 , $6.4 and $72.6 , respectively. The unrecognized share-based compensation expense related to unvested stock options, Series A Preferred Stock, restricted stock units and other share awards is expected to be recognized over a weighted-average period of 3.91 , 3.38 and 3.26 years, respectively. Nonqualified Stock Options During fiscal 2018 and 2017 , the Company granted 5.9 million and 9.3 million nonqualified stock option awards, respectively. These options are accounted for using equity 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. There were no stock options accounted for under equity plans granted during fiscal 2016. During fiscal 2018 and 2017 , the share-based compensation expense recognized on nonqualified stock options is based upon the fair value on the grant date estimated using the Black-Scholes valuation model with the following weighted-average assumptions: 2018 2017 Expected life 7.50 years 7.50 years Risk-free interest rate 2.19% 1.60% Expected volatility 36.03% 36.74% Expected dividend yield 2.98% 1.62% 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. 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 weighted-average expected dividend yield is based upon the Company’s expectation to pay dividends over the contractual term of the options. 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, 2018 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 (in years) Outstanding at July 1, 2017 12.0 $ 15.64 Granted 5.9 16.86 Exercised (2.3 ) 9.76 Forfeited (2.2 ) 18.45 Outstanding at June 30, 2018 13.4 $ 16.75 Vested and expected to vest at June 30, 2018 10.5 $ 16.63 $ — 7.73 Exercisable at June 30, 2018 1.7 $ 9.71 $ 7.4 1.96 The grant prices of the outstanding options as of June 30, 2018 ranged from $6.40 to $20.42 . The grant prices for exercisable options ranged from $6.40 to $10.50 . A summary of the aggregated weighted-average grant date fair value of stock options granted and total intrinsic value of stock options exercised for fiscal 2018 , 2017 and 2016 is presented below: 2018 2017 2016 Weighted-average grant date fair value of stock options $ 4.87 $ 6.34 $ — Intrinsic value of options exercised 32.2 26.3 87.6 The Company’s non-vested nonqualified stock options as of June 30, 2018 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, 2017 8.0 $ 6.33 Granted 5.9 4.87 Forfeited (2.2 ) 6.27 Non-vested at June 30, 2018 11.7 $ 5.60 The share-based compensation expense recognized on the nonqualified stock options is $11.9 , $9.1 and $14.7 during fiscal 2018 , 2017 and 2016 , respectively. Executive Ownership Programs The Company encourages executive stock ownership through various programs. These programs govern shares of Class A Common Stock purchased by employees (“Purchased Shares”). Employees purchased 2.0 million , 0.8 million and 0.1 million shares in fiscal 2018 , 2017 and 2016 , respectively, and received matching nonqualified stock options or RSUs in accordance with the terms of the Compensation Plans under the Omnibus LTIP. There was no share-based compensation (income) expense recorded in connection with Purchased Shares for fiscal 2018 , 2017 and 2016 . Additionally, share-based compensation expense recorded in connection with matching stock awards granted in accordance with the Compensation Plans are noted in their respective section of this footnote. Series A Preferred Stock In addition to the Executive Ownership Programs discussed above, the Series A Preferred Stock are accounted for partially as equity and partially as a liability as of June 30, 2018 , 2017 and 2016 and the Company recognized an expense of $0.1 , $4.4 and $2.0 in fiscal 2018 , 2017 and 2016 , respectively. See Note 21 — Equity for additional information. The Series A Preferred Stock were accounted for using the Black-Scholes valuation model in fiscal 2016. In fiscal 2017, the Company granted Series A Preferred Stock that included cash bonus payments tied to the exercisability of the awards. Due to the addition of cash bonus payments in connection with the grant of Series A Preferred Stock to certain executives in fiscal 2017, the Company began estimating the fair value of the Series A Preferred Stock using a binomial lattice model to value the equity and cash bonus components of the combined instrument. The lattice structure the Company uses to value the awards consists of (i) a common stock lattice that models the possible stock price movements from the valuation date to the maturity date consistent with the stock price and estimated volatility on the valuation date; (ii) a share exchange lattice that calculates the value of the common stock received on conversion; (iii) a cash exchange lattice that calculates the value of the cash bonus; and (iv) a continuation value lattice that tracks the holding value of the combined instrument. As of June 30, 2018 , the fair value of the Company’s outstanding Series A Preferred Stock that are liability accounted were estimated with the following weighted-average assumptions. 2018 2017 Expected life, in years 4.52 years 5.86 years Expected volatility 35.00% 30.00% Risk-free rate of return 2.70% 1.99% Dividend yield on Class A Common Stock 3.55% 2.67% Yield on cash N/A 4.70% Expected life, in years - 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. Expected volatility - The Company calculates expected volatility based on the average of historical and implied volatilities. Risk-free rate of return - The Company bases the risk-free rate of return on the US Constant Maturity Treasury Rate. Dividend yield on Class A Common Stock - The Company calculated the weighted-average dividend yield on shares using the annualized dividend rate calculated on the per share cash dividend paid quarterly and the stock price as of the valuation date. Yield on cash - The Company calculated the weighted-average yield of comparable securities with a similar credit rating to the Company as of June 30, 2018 and 2017 , respectively. The fair value of the Company’s outstanding Series A Preferred Stock liability on June 30, 2016 was estimated using the Black-Scholes valuation model with the following assumptions: 2016 Expected life 4.79 years Risk-free interest rate 1.01% Expected volatility 36.74% Expected dividend yield 0.96% 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. Expected volatility -The Company calculates expected volatility based on median volatility for peer companies using 4.79 years of daily stock price history as of June 30, 2016 . Expected dividend yield -The Company used an expected dividend yield 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. See Note 21 — Equity for additional information. The Company’s outstanding Series A Preferred Shares as of June 30, 2018 and activity during the fiscal year then ended are presented below: Shares Weighted Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Outstanding at July 1, 2017 4.2 $ 24.66 Granted 1.0 19.85 Forfeited (0.2 ) 22.66 Outstanding at June 30, 2018 5.0 $ 23.62 Vested and expected to vest at June 30, 2018 4.4 $ 23.57 $ — 5.17 The Company’s non-vested shares of Series A Preferred Stock as of June 30, 2018 and activity during the fiscal year then ended are presented below: Shares Weighted Non-vested at July 1, 2017 3.2 $ 5.19 Granted 1.0 4.12 Forfeited (0.2 ) 3.63 Non-vested at June 30, 2018 4.0 $ 4.99 Restricted Share Units During fiscal 2018 , 3.7 million RSUs were granted under the Omnibus LTIP and 0.1 million RSUs were granted under the 2007 Stock Plan for Directors. During fiscal 2017 , 2.7 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, 2018 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, 2017 5.6 Granted 3.8 Settled (0.7 ) Cancelled (1.2 ) Outstanding at June 30, 2018 7.5 Vested and expected to vest at June 30, 2018 6.1 $ 84.5 3.12 The share-based compensation expense recorded in connection with the RSUs was $21.4 , $15.4 and $18.2 during fiscal 2018 , 2017 and 2016 , respectively. The Company’s outstanding and non-vested RSUs as of June 30, 2018 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, 2017 5.3 $ 21.76 Granted 3.8 16.53 Vested (0.7 ) 16.40 Cancelled (1.2 ) 20.94 Outstanding and nonvested at June 30, 2018 7.2 $ 19.57 The total intrinsic value of RSUs vested and settled during fiscal 2018 , 2017 and 2016 is $12.5 , $3.5 and $4.0 , respectively. Phantom Units On July 21, 2015, the Board granted Lambertus J.H. Becht (“Mr. Becht”), the Company’s Chairman of the Board and interim Chief Executive Officer (“CEO”), an award of 300,000 phantom units, in consideration of Mr. Becht’s increased and continuing responsibilities as interim CEO of the Company. 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. Each phantom unit has an economic value equivalent to one share of the Company’s Class A Common Stock settleable in cash or shares at the election of Mr. Becht. The award to Mr. Becht was made outside of the Company’s Omnibus LTIP. On July 24, 2015, Mr. Becht elected to receive payment of the phantom units in the form of shares of Class A Common Stock and the phantom units were valued at $8.0 . 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 $8.0 of share-based compensation expense during the fiscal year ended June 30, 2016 as there are no service or performance conditions with respect to the phantom units. |
NET (LOSS) INCOME ATTRIBUTABLE
NET (LOSS) INCOME ATTRIBUTABLE TO COTY INC. PER COMMON SHARE | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
NET (LOSS) INCOME ATTRIBUTABLE TO COTY INC. PER COMMON SHARE | NET (LOSS) INCOME ATTRIBUTABLE TO COTY INC. PER COMMON SHARE Net (loss) income 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, Series A Preferred Stock and RSUs as of June 30, 2018 and 2017 . The dilutive effect of these outstanding instruments is reflected in diluted EPS by application of the treasury stock method. Net (loss) income 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 2018 , 2017 and 2016 . 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, 2018 2017 2016 Net (loss) income attributable to Coty Inc. $ (168.8 ) $ (422.2 ) $ 156.9 Weighted-average common shares outstanding—Basic 749.7 642.8 345.5 Effect of dilutive stock options and Series A Preferred Stock (a) — — 5.7 Effect of restricted stock and RSUs (b) — — 3.0 Weighted-average common shares outstanding—Diluted 749.7 642.8 354.2 Net (loss) income attributable to Coty Inc. per common share: Basic $ (0.23 ) $ (0.66 ) $ 0.45 Diluted (0.23 ) (0.66 ) 0.44 (a) As of June 30, 2018 and 2017 , outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase shares of common stock were excluded in the computation of diluted loss per share due to the net loss incurred during the period. As of June 30, 2016 , outstanding stock options and Series A Preferred Stock to purchase 3.0 million shares of Common Stock are excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. (b) As of June 30, 2018 and 2017 , RSUs were excluded in the computation of diluted loss per share due to the net loss incurred during the period. As of June 30, 2016 , there were 0.1 million anti-dilutive RSUs 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, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Matters The Company is involved, from time to time, in various litigation and administrative and other legal proceedings including regulatory actions, incidental or related to its business, including consumer class or collective action, personal injury, intellectual property, competition, and advertising claims litigation, among others (collectively, “Legal Proceedings”). While the Company cannot predict any final outcomes relating thereto, management believes that the outcome of current Legal Proceedings will not have a material effect upon its business, prospects, financial condition, results of operations, cash flows, as well as the trading price of the Company’s securities. However, management’s assessment of the Company’s Legal Proceedings is ongoing, and could change in light of the discovery of additional facts with respect to Legal Proceedings pending against the Company not presently known to the Company or determinations by judges, arbitrators, juries or other finders of fact or deciders of law which are not in accord with management’s evaluation of the probable liability or outcome of such Legal Proceedings. From time to time, the Company is in discussions with regulators, including discussions initiated by the Company, about actual or potential violations of law in order to remediate or mitigate associated legal or compliance risks. As the outcomes of such proceedings are unpredictable, the Company can give no assurance that the results of any such proceedings will not materially affect its reputation, its business, prospects, financial condition, results of operations, cash flows, as well as the trading price of its securities. Brazilian Tax Assessments In connection with a local tax audit of one of the Company’s subsidiaries in Brazil, the Company was notified of tax assessments issued in March of 2018. The assessments relate to local sales tax credits, which the Treasury Office of the State of Goiás considers improperly registered for 2016-2017 tax periods. The Company is currently seeking a favorable administrative decision on the tax enforcement action filed by the Treasury Office of the State of Goiás. These tax assessments, including estimated interest and penalties, through June 30, 2018 amount to a total R$249.0 million (approximately $65.0 as of June 30, 2018). The Company believes it has meritorious defenses and it has not recognized a loss for these assessments as the Company does not believe a loss is probable. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Quarterly Dividend On August 21, 2018, the Company announced a quarterly cash dividend of $0.125 per share on its Common Stock, restricted stock units (the “RSUs”) and phantom units. The dividend will be payable on September 14, 2018 to holders of record of Common Stock on August 31, 2018. Trademark Acquisition On July 3, 2018, the Company acquired the Escada trademark for €35.0 million , the equivalent of $40.8 at the time of closing, from an existing licensor. The acquired trademark covers the world wide use of the trademark for cosmetics, perfumes and beauty products. Escada will continue to be included in the Company’s Luxury division. 2018 Restructuring Actions As described in Note 6 — Restructuring Costs , in connection with the combination and expansion of the 2018 Restructuring Actions, the Company is evaluating initiatives to reduce fixed costs and enable further investment in the business. As part of these initiatives, on August 20, 2018, Management approved plans to rationalize headcount and fixed cost commitments with estimated pre-tax restructuring and related costs of approximately $250.0 , to be incurred over the next three years. The estimate includes costs primarily related to employee termination benefits, all of which will result in cash payments. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jun. 30, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Years Ended June 30, 2018 , 2017 , and 2016 ($ in millions, except per share data) Valuation and Qualifying Accounts Description Three Years Ended June 30, Balance at Balance Received through Acquisition Charged to Deductions Balance at Allowance for doubtful accounts: 2018 $ 58.5 $ — $ 16.3 $ 7.0 (a)(b) $ 81.8 2017 35.2 — 32.8 (9.5 ) (b) 58.5 2016 19.6 — 21.9 (6.3 ) (b) 35.2 Allowance for customer returns: 2018 $ 67.3 $ 10.1 $ 169.8 $ (166.1 ) $ 81.1 2017 57.3 11.4 165.7 (167.1 ) 67.3 2016 59.9 — 132.8 (135.4 ) 57.3 Deferred tax valuation allowances: 2018 $ 60.3 $ — $ 54.7 (c) $ (10.4 ) $ 104.6 2017 179.2 — 9.2 (c) (128.1 ) 60.3 2016 81.9 — 117.9 (c) (20.6 ) 179.2 (a) Includes reclassification between the allowance for doubtful accounts and gross trade receivables for presentation purposes. (b) Includes amounts written-off, net of recoveries and cash discounts. (c) Includes foreign currency translation adjustments unless otherwise noted. |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
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 States of America, United Arab Emirates, Kingdom of Saudi Arabia, Malaysia, Indonesia, Philippines, Singapore, Hong Kong, China, South Korea, Thailand and Taiwan where the Company has the ability to exercise controlling influence. Ownership interests of noncontrolling parties are presented as mandatorily redeemable financial interests, 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, pension benefit costs, the assessment of goodwill, other intangible assets and long-lived assets for impairment, income taxes, and redeemable noncontrolling interests. 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. |
Restricted Cash | Restricted Cash Restricted cash represents funds that are not readily available for general purpose cash needs due to contractual limitations. Restricted cash is classified as a current or long-term asset based on the timing and nature of when or how the cash is expected to be used or when the restrictions are expected to lapse. As of June 30, 2018 and June 30, 2017 , the Company had restricted cash of $30.6 and $35.3 , respectively, included in Restricted cash in the Consolidated Balance Sheets. The restricted cash balance as of June 30, 2018 provides collateral for certain bank guarantees on rent, customs and duty accounts. Restricted cash is included as a component of Cash, cash equivalents, and restricted cash in the Consolidated Statement of Cash Flows. |
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 net realizable 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 net 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 5-34 years Customer relationships 2-28 years Trademarks 2-30 years Product formulations and technology 3-29 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. Goodwill is allocated and evaluated at the reporting unit level, which are the Company’s operating segments. The Company identifies its operating 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. Luxury, Consumer Beauty and Professional Beauty 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. When testing goodwill for impairment, the Company has the option of first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as the basis to determine if it is necessary to perform a quantitative goodwill impairment test. In performing its qualitative assessment, the Company considers the extent to which unfavorable events or circumstances identified, such as changes in economic conditions, industry and market conditions or company specific events, could affect the comparison of the reporting unit’s fair value with its carrying amount. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is required to perform a quantitative impairment test. Quantitative 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 Company makes certain judgments and assumptions in allocating assets and liabilities to determine carrying values for its reporting units. Indefinite-lived other intangible assets principally consist of trademarks. 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 third parties 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. Additionally, shipping costs, freight-in 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 phantom units, vested stock options, the settlement of restricted stock units (“RSUs”), and the conversion of Series A Preferred Stock. 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 22 — Share-Based Compensation Plans . The fair value of RSUs is determined on the date of grant based on the Company’s stock price. 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 portion that is liability accounted 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. The fair value of Series A Preferred Stock is determined using the binomial valuation model for fiscal 2018 and 2017 using the weighted-average assumptions discussed in Note 22 — Share-Based Compensation Plans . The fair value of Series A Preferred Stock was determined using the Black-Scholes valuation model for fiscal 2016 using the weighted-average assumptions discussed in Note 22 — Share-Based Compensation Plans . |
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 (Loss) 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. Prior to the fourth quarter of fiscal 2017, the 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. In the fourth quarter of fiscal 2017 the Company adopted guidance issued by the Financial Accounting Standards Board (“FASB”) (as later discussed) which allows for presentation of deferred tax assets and liabilities as noncurrent. This guidance was adopted on a prospective basis and Deferred taxes in the Consolidated Balance Sheet for the year ended June 30, 2017 are presented as noncurrent. 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 considers how to recognize, measure, present and disclose in financial statements uncertain tax positions taken or expected to be taken on a tax return. 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. As a result of the 2017 Tax Act changing the U.S. to a modified territorial tax system, the Company no longer asserts that any of its undistributed foreign earnings are permanently reinvested. We do not expect to incur significant withholding or state taxes on future distributions. To the extent there remains a basis difference between the financial reporting and tax basis of an investment in a foreign subsidiary after the repatriation of the previously taxed income of $4,500.0 , the Company is permanently reinvested. |
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. These costs can include employee separations, contract and lease terminations, and other direct exit costs. Employee severance and other termination benefits are primarily determined based on established benefit arrangements, local statutory requirements or historical practices. The Company recognizes these benefits when payment is probable and estimable. Additional elements of severance and termination benefits associated with non-recurring benefits are recognized ratably over each employee’s required future service period. Costs to terminate a contract before the end of its term are recognized and measured at their fair value when the Company gives written notice to the counterparty. For lease terminations, a liability based on the remaining lease rentals, reduced by estimated sublease rentals is measured at the cease-use date. All other costs are recognized as incurred. Other business realignment costs represent the incremental cost directly related to the restructuring activities which can include accelerated depreciation, professional or consulting fees and other internal costs including compensation related costs for dedicated internal resources. Other business realignment costs are generally recorded in Selling, general and administrative expenses in the Consolidated Statements of Operations. Charges for accelerated depreciation are recognized on long-lived assets that will be taken out of service before the end of their normal service, in which case depreciation estimates are revised to reflect the use of the asset over its shortened useful life. All other costs are recognized as incurred. |
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. 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. 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 generally uses the following methodologies for valuing our significant acquired intangibles assets: • Trademarks (indefinite or finite) - The Company uses a relief from royalty method to value trademarks. The key assumptions for the model are forecasted net revenue, the royalty rate, the effective tax rate and the discount rate. • Customer relationships and license agreements - The Company uses an excess earnings method to value customer relationships and license agreements. The key assumptions for the model are forecasted net revenue, EBITDA, the estimated allocation of earnings between different classes of assets, the attrition rate, the effective tax rate and the discount rate. |
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 | Hedge Accounting Derivative financial instruments are recorded as either assets or liabilities on the Consolidated Balance Sheets and are measured at fair value. 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. 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. For derivatives designated as cash flow hedges, changes in the fair value are recorded in 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. 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. Cash flows from derivative instruments designated as cash flow hedges are recorded in the same category as the cash flows from the items being hedged in the Consolidated Statements of Cash Flows. The ineffective portion of foreign exchange forward and interest rate swap contracts are recorded in current-period earnings. For hedge contracts that are no longer deemed highly effective, hedge accounting is discontinued and gains and losses accumulated in Other comprehensive income (loss) (“OCI”) 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/(L) are reclassified to current-period earnings. For fiscal 2018 , all of the Company’s foreign exchange forward and interest rate swap contracts designated as hedges were highly effective. The Company also attempts to minimize credit exposure to counterparties by entering into derivative contracts with counterparties that are major financial institutions and utilizing master netting arrangements. Exposure to credit risk in the event of nonperformance by any of the counterparties with respect to the Company’s foreign exchange forward contracts is limited to the fair value of contracts in net asset positions under master netting arrangements. Exposure to credit risk in the event of nonperformance by any of the counterparties with respect to the Company’s interest rate swap contracts is limited to the fair value of contracts in net asset positions. Accordingly, management of the Company believes risk of material loss under these hedging contracts is remote. Net Investment Hedge Foreign currency gains and losses on borrowings designated as a net investment hedge, except ineffective portions, are reported in the cumulative translation adjustment (“CTA”) component of AOCI/(L), along with the foreign currency translation adjustments on those investments. Foreign currency denominated borrowings designated as net investment hedges had nominal exposures of €3,204.1 million and €656.7 million as of June 30, 2018 and 2017 , respectively. Net investment hedge effectiveness is assessed based on the change in the spot rate of the foreign currency denominated loans payable. The critical terms (underlying notional and currency) of the loans payable match the portion of the net investments designated as being hedged. The net investment hedges were equal to the designated portions of the international subsidiaries’ investment balances as of June 30, 2018 . As such, the net investment hedges were considered to be effective, and, as a result, the changes in the fair value were recorded within CTA on the Company’s Consolidated Balance Sheets. Interest Rate Risk The Company is exposed to interest rate fluctuations related to its variable rate debt instruments. The Company may reduce its exposure to fluctuations in the cash flows associated with changes in the variable interest rates by entering into offsetting positions through the use of derivative instruments, such as interest rate swap contracts. The interest rate swap contracts result in recognizing a fixed interest rate for the portion of the Company’s variable rate debt that was hedged. This will reduce the negative impact of increases in the variable rates over the term of the contracts. During fiscal 2016, the Company entered into interest rate swap contracts that have been designated as cash-flow hedges. Hedge effectiveness of interest rate swap contracts is based on a long-haul hypothetical derivative methodology and includes all changes in value. Foreign Exchange Risk The Company is exposed to foreign currency exchange fluctuations through its global operations. 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 and also by designating foreign currency denominated borrowings as hedges of net investments in foreign subsidiaries. The Company expects that through hedging, any gain or loss on the derivative instruments would generally offset the expected increase or decrease in the value of the underlying forecasted transactions. The Company entered into derivatives for which hedge accounting treatment has been applied which the Company anticipates realizing in the Consolidated Statements of Operations through fiscal 2019 . The Company enters into foreign exchange forward contracts to hedge anticipated transactions for periods consistent with the Company’s identified exposures to minimize the effect of foreign exchange rate movements on revenues, 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 exchange forward contracts used to hedge anticipated transactions have been designated as foreign exchange cash-flow hedges. Hedge effectiveness of foreign exchange forward contracts is based on the forward-to-forward hypothetical derivative methodology and includes all changes in value. |
Foreign Currency | Foreign Currency Exchange gains or losses incurred on non-financing foreign exchange currency 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 losses of $3.9 , $1.5 and $7.2 in fiscal 2018 , 2017 and 2016 , 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 Accumulated other comprehensive income (loss) (“AOCI/(L)”). |
Recently Adopted Accounting Pronouncements and Recently Issued and Not Yet Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which changes the classification and presentation of certain items within the statement of cash flows including, but not limited to, debt prepayment or debt extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investees. The Company early adopted the ASU during the fourth quarter of fiscal 2018 on a retrospective basis. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows for a reclassification of the stranded tax effects resulting from the enactment of “H.R.1”, formerly known as the “Tax Cuts and Jobs Act,” (“Tax Act”) from AOCI/(L) to Retained earnings. The amendment will be effective for the annual periods beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company adopted the ASU during June 2018. The impact of this adoption on the Company’s Consolidated Financial Statements was an increase of $6.5 to Accumulated deficit and an increase to AOCI/(L). During the first quarter of fiscal 2018, the Company adopted the amended FASB ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of accounting for share-based payment transactions. The adoption of the ASU did not have a material impact on the Company’s Consolidated Financial Statements. The primary impact of the new standard was the recognition of previously unrecognized excess tax benefits as an $8.3 cumulative-effect adjustment to Accumulated deficit as of July 1, 2017 to reflect a modified retrospective application. Prospectively, the excess tax benefits will be recorded as a component of Income tax expense as required, whereas they were previously recorded in Additional paid-in capital (“APIC”). Additionally, the ASU required that $3.6 related to shares withheld for employee taxes to be reported in Cash flows from financing activities for the year ended June 30, 2018 with an insignificant impact to prior periods. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which simplifies the measurement of inventories by requiring inventory to be measured at the lower of cost and net realizable value, rather than at the lower of cost or market. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company adopted ASU No. 2015-11 during the first quarter of fiscal 2018. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. Recently Issued and Not Yet Adopted Accounting Pronouncements Accounting Standard Update(s) Topic Effective Period Summary 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Fiscal 2020. Early adoption is permitted for the Company beginning in fiscal 2019. The FASB issued authoritative guidance for improvements to accounting for hedging activities. The amendments better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The Company is evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements and related disclosures. 2017-09 Scope of Modification Accounting Fiscal 2019. Early adoption is permitted for the Company beginning in fiscal 2018. The FASB issued authoritative guidance regarding changes to terms or conditions of share-based payment awards that require an entity to apply modification accounting. Under this amendment, an entity should not account for the effects of a modification if all of the following conditions are met: i) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified and original award (immediately before modification) is the same; ii) the vesting conditions of the modified and original award (immediately before modification) are the same; iii) the classification of the modified and original award (immediately before modification) as an equity or a liability instrument is the same. The Company is currently evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements. 2017-07 Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Fiscal 2019. Early adoption is permitted for the Company beginning in fiscal 2018. The FASB issued authoritative guidance that requires an employer to report the service cost component of an employee benefits plan in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost as defined in the current guidance are required to be presented in the income statement separately from the service cost component and outside the subtotal of income from operations, if one is presented. If separate line item or items are not used, the line item or items used in the income statement to present the other components of net periodic benefit cost must be disclosed. The amendment allows only the service cost component to be eligible for capitalization, when applicable. The Company is currently evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements. 2017-04 Simplifying the Test for Goodwill Impairment Fiscal 2021. Early adoption is permitted for the Company beginning in fiscal 2018. The FASB issued authoritative guidance that simplifies the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Under this amendment, an entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The amendment also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step two of the goodwill impairment test. The Company does not expect this guidance to impact the Company’s Consolidated Financial Statements. 2016-16 Intra-Entity Transfers of Assets Other Than Inventory Fiscal 2019. Early adoption is permitted for the Company beginning in fiscal 2018. The FASB issued authoritative guidance that amends accounting guidance for intra-entity transfer of assets other than inventory to require the recognition of taxes when the transfer occurs. The Company is currently evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements. Accounting Standard Update(s) Topic Effective Period Summary 2014-09 2015-14 2016-08 2016-10 2016-12 Revenue from Contracts with Customers Fiscal 2019 with either retrospective or modified retrospective treatment applied. Early adoption is permitted for the Company beginning in fiscal 2018. In May 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. In March 2016, the FASB issued authoritative guidance amending certain portions of this standard to clarify the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued authoritative guidance amending certain portions of this standard to clarify the considerations for identifying performance obligations and to clarify the implementation guidance for revenue recognized from licensing arrangements. In May 2016, the FASB issued authoritative guidance amending certain portions of the standard to narrow the scope over, or to provide practical expedients, for assessing collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The Company adopted the standard on July 1, 2018 using the modified retrospective transition method of adoption. The Company’s evaluation indicated that the adoption impact is expected to be primarily related to the timing of certain accruals associated with customer incentives and potential reclassifications of certain costs between Selling, general and administrative expenses and trade spending activities recorded as a reduction to gross revenue resulting from changes in the accounting treatment of store fixtures under the new standard. If this ASU had been adopted in fiscal 2018, the impact on the Company’s Consolidated Financial Statements would have been a reduction in Net revenues of $25.2. Additionally, the Company expects to provide expanded financial statements disclosures as a result of the adoption of this ASU. 2016-02 2018-10 2018-11 Leases Fiscal 2020 with early adoption permitted. The FASB issued authoritative guidance requiring that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in its balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. The Company is currently evaluating the impact the standard will have on the Company’s Consolidated Financial Statements and related disclosures. Lessees and lessors have the option to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach or to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company has selected the transition method provided by the authoritative guidance in ASU 2018-11 and will recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 and 2017 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 671.2 $ 646.1 Machinery and equipment 866.3 851.5 Marketing furniture and fixtures 514.2 432.8 Computer equipment and software 699.1 459.0 Construction in progress 230.8 286.1 Property and equipment, gross 2,981.6 2,675.5 Accumulated depreciation and amortization (1,300.8 ) (1,043.4 ) Property and equipment, net $ 1,680.8 $ 1,632.1 |
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 5-34 years Customer relationships 2-28 years Trademarks 2-30 years Product formulations and technology 3-29 years Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2017 License agreements $ 3,148.4 $ (653.3 ) $ — $ 2,495.1 Customer relationships 1,937.3 (375.0 ) (5.5 ) 1,556.8 Trademarks 1,001.1 (141.0 ) — 860.1 Product formulations and technology 389.3 (63.0 ) — 326.3 Total $ 6,476.1 $ (1,232.3 ) $ (5.5 ) $ 5,238.3 June 30, 2018 License agreements (a)(b) $ 3,362.7 $ (792.9 ) $ — $ 2,569.8 Customer relationships (a)(b) 1,960.5 (508.7 ) (5.5 ) 1,446.3 Trademarks 1,002.1 (185.5 ) (0.4 ) 816.2 Product formulations and technology (a) 361.2 (95.3 ) — 265.9 Total $ 6,686.5 $ (1,582.4 ) $ (5.9 ) $ 5,098.2 (a) Includes measurement period adjustments in connection with the P&G Beauty Business and ghd acquisitions during fiscal 2018. (b) Includes License agreements and Customer relationships of $171.1 and $6.7 , respectively resulting from the Burberry Beauty Business acquisition during the fiscal year ended June 30, 2018 (see Note 3 — Business Combinations ). Other intangible assets, net as of June 30, 2018 and 2017 are presented below: June 30, June 30, Indefinite-lived other intangible assets $ 3,186.2 $ 3,186.9 Finite-lived other intangible assets, net 5,098.2 5,238.3 Total Other intangible assets, net $ 8,284.4 $ 8,425.2 |
Recently Issued and Not Yet Adopted Accounting Pronouncements | Recently Issued and Not Yet Adopted Accounting Pronouncements Accounting Standard Update(s) Topic Effective Period Summary 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Fiscal 2020. Early adoption is permitted for the Company beginning in fiscal 2019. The FASB issued authoritative guidance for improvements to accounting for hedging activities. The amendments better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The Company is evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements and related disclosures. 2017-09 Scope of Modification Accounting Fiscal 2019. Early adoption is permitted for the Company beginning in fiscal 2018. The FASB issued authoritative guidance regarding changes to terms or conditions of share-based payment awards that require an entity to apply modification accounting. Under this amendment, an entity should not account for the effects of a modification if all of the following conditions are met: i) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified and original award (immediately before modification) is the same; ii) the vesting conditions of the modified and original award (immediately before modification) are the same; iii) the classification of the modified and original award (immediately before modification) as an equity or a liability instrument is the same. The Company is currently evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements. 2017-07 Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Fiscal 2019. Early adoption is permitted for the Company beginning in fiscal 2018. The FASB issued authoritative guidance that requires an employer to report the service cost component of an employee benefits plan in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost as defined in the current guidance are required to be presented in the income statement separately from the service cost component and outside the subtotal of income from operations, if one is presented. If separate line item or items are not used, the line item or items used in the income statement to present the other components of net periodic benefit cost must be disclosed. The amendment allows only the service cost component to be eligible for capitalization, when applicable. The Company is currently evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements. 2017-04 Simplifying the Test for Goodwill Impairment Fiscal 2021. Early adoption is permitted for the Company beginning in fiscal 2018. The FASB issued authoritative guidance that simplifies the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Under this amendment, an entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The amendment also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step two of the goodwill impairment test. The Company does not expect this guidance to impact the Company’s Consolidated Financial Statements. 2016-16 Intra-Entity Transfers of Assets Other Than Inventory Fiscal 2019. Early adoption is permitted for the Company beginning in fiscal 2018. The FASB issued authoritative guidance that amends accounting guidance for intra-entity transfer of assets other than inventory to require the recognition of taxes when the transfer occurs. The Company is currently evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements. Accounting Standard Update(s) Topic Effective Period Summary 2014-09 2015-14 2016-08 2016-10 2016-12 Revenue from Contracts with Customers Fiscal 2019 with either retrospective or modified retrospective treatment applied. Early adoption is permitted for the Company beginning in fiscal 2018. In May 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. In March 2016, the FASB issued authoritative guidance amending certain portions of this standard to clarify the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued authoritative guidance amending certain portions of this standard to clarify the considerations for identifying performance obligations and to clarify the implementation guidance for revenue recognized from licensing arrangements. In May 2016, the FASB issued authoritative guidance amending certain portions of the standard to narrow the scope over, or to provide practical expedients, for assessing collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The Company adopted the standard on July 1, 2018 using the modified retrospective transition method of adoption. The Company’s evaluation indicated that the adoption impact is expected to be primarily related to the timing of certain accruals associated with customer incentives and potential reclassifications of certain costs between Selling, general and administrative expenses and trade spending activities recorded as a reduction to gross revenue resulting from changes in the accounting treatment of store fixtures under the new standard. If this ASU had been adopted in fiscal 2018, the impact on the Company’s Consolidated Financial Statements would have been a reduction in Net revenues of $25.2. Additionally, the Company expects to provide expanded financial statements disclosures as a result of the adoption of this ASU. 2016-02 2018-10 2018-11 Leases Fiscal 2020 with early adoption permitted. The FASB issued authoritative guidance requiring that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in its balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. The Company is currently evaluating the impact the standard will have on the Company’s Consolidated Financial Statements and related disclosures. Lessees and lessors have the option to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach or to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company has selected the transition method provided by the authoritative guidance in ASU 2018-11 and will recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of the allocation of the purchase price to net assets acquired | The following table summarizes the allocation of the purchase price to the net assets of ghd as of the November 21, 2016 acquisition date: Estimated (a) Measurement (b) Final fair value Estimated Cash and cash equivalents $ 7.1 $ — $ 7.1 Inventories 79.6 — 79.6 Property, plant and equipment 10.0 — 10.0 3 - 10 Goodwill 174.4 24.6 199.0 Indefinite Indefinite-lived other intangible assets 163.8 (14.8 ) 149.0 Indefinite Customer relationships 36.6 (2.3 ) 34.3 11 - 25 Technology 146.6 (17.2 ) 129.4 11 - 17 Other net working capital (16.6 ) 4.7 (11.9 ) Net other assets 0.9 (0.9 ) — Deferred tax liability, net (63.9 ) 5.9 (58.0 ) Total purchase price $ 538.5 $ — $ 538.5 (a) As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017. The business combination was completed in fiscal 2017. (b) The Company recorded measurement period adjustments in the first half of fiscal 2018. The measurement period adjustments related to decreases to Technology, Indefinite-lived other intangible assets and Customer relationships of $17.2 , $14.8 and $2.3 , respectively, and a decrease to the deferred tax liability of $5.9 were a result of changes in assumptions that were used at the date of acquisition for valuation purposes. The measurement period adjustments related to Other net working capital of $4.7 were a result of obtaining new facts and circumstances about acquired accrued expenses that existed as of the acquisition date. All measurement period adjustments were offset against Goodwill. The following table summarizes the allocation of the purchase price to the net assets of Younique as of the February 1, 2017 acquisition date: Estimated (a) Measurement (b) Final fair value Estimated Cash and cash equivalents $ 17.5 $ — $ 17.5 Inventories 88.1 — 88.1 Property, plant and equipment 67.1 — 67.1 3 - 8 Goodwill 575.3 (0.3 ) 575.0 Indefinite Trademark — finite 123.0 — 123.0 20 Product formulations 0.6 — 0.6 5 Customer relationships 197.0 — 197.0 7 - 10 Other net working capital (27.7 ) 0.3 (27.4 ) Short-term and long-term debt (1.2 ) — (1.2 ) Total equity value 1,039.7 — 1,039.7 Redeemable noncontrolling interest 415.9 — 415.9 Net cash and debt acquired 16.3 — 16.3 Total purchase price $ 607.5 $ — $ 607.5 (a) As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017. The business combination was completed in fiscal 2017. (b) The Company recorded measurement period adjustments in the nine months ended March 31, 2018 to account for an increase in the estimated other net working capital of $0.3 as of the February 1, 2017 acquisition date. This adjustment is offset against Goodwill. The following table summarizes the allocation of the purchase price to the net assets of the P&G Beauty Business as of the October 1, 2016 acquisition date: Estimated (a) Measurement (b) Final fair value Estimated Cash and cash equivalents $ 387.6 $ — $ 387.6 Inventories 465.5 — 465.5 Property, plant and equipment 742.9 (16.9 ) 726.0 3 - 40 Goodwill 5,528.4 35.5 5,563.9 Indefinite Trademarks — indefinite 1,575.0 — 1,575.0 Indefinite Trademarks — finite 747.7 — 747.7 10 - 30 Customer relationships 1,074.2 18.8 1,093.0 2 - 26 License agreements 2,299.0 12.0 2,311.0 4 - 30 Product formulations 183.8 (10.0 ) 173.8 5 - 28 Other net working capital (23.2 ) — (23.2 ) Net other assets 64.6 (33.7 ) 30.9 Unfavorable contract liabilities (130.0 ) — (130.0 ) Pension liabilities (404.1 ) — (404.1 ) Deferred tax liability, net (941.0 ) (5.7 ) (946.7 ) Total purchase price $ 11,570.4 $ — $ 11,570.4 (a) As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017. The business combination was completed in fiscal 2017. (b) The Company recorded measurement period adjustments in the first quarter of fiscal 2018. The measurement period adjustments related to Customer relationships, License agreements and Product formulations, collectively, of $20.8 , were a result of changes in assumptions that were used at the date of acquisition for valuation purposes including allocation of costs and synergies. The measurement period adjustments related to Property, plant and equipment and Net other assets of ($16.9) and ($33.7) , respectively, primarily related to obtaining new facts and circumstances about acquired assets and liabilities that existed at the acquisition date. The increase to Deferred tax liability, net was primarily a result of the change of the jurisdictional allocation of the tangible and intangible assets. All measurement period adjustments were offset against Goodwill. The following table summarizes the allocation of the purchase price to the net assets acquired as of the February 1, 2016 acquisition date: Final Estimated Cash and cash equivalents $ 11.1 Inventories 45.6 Property, plant and equipment 95.4 2 - 40 Goodwill 537.1 Indefinite Trademarks — indefinite 147.1 Indefinite Trademarks — finite 10.3 5 - 15 Customer relationships 44.6 13 - 28 Product formulations 12.8 3 Other net working capital 0.7 Net other assets 1.4 Deferred tax liability, net (4.2 ) Total purchase price $ 901.9 The following table summarizes the estimated allocation of the purchase price to the net assets of the Burberry Beauty Business as of the October 2, 2017 acquisition date: Estimated (a) Measurement (b) Estimated fair value as adjusted Estimated Inventories $ 55.1 $ (7.2 ) $ 47.9 Property, plant and equipment 5.8 — $ 5.8 1 - 3 License and distribution rights 129.7 48.1 $ 177.8 3 - 15 Goodwill 68.2 (33.3 ) $ 34.9 Indefinite Net other liabilities (8.7 ) (1.4 ) $ (10.1 ) Total purchase price $ 250.1 $ 6.2 $ 256.3 (a) As previously reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2018. (b) The Company recorded measurement period adjustments in the third and fourth quarters of fiscal 2018. The measurement period adjustments related to an increase in the value of the License and distribution rights and a decrease in the Inventory value were due to changes in assumptions that were used at the date of acquisition for valuation purposes. The measurement period adjustment related to an increase in net other liabilities acquired was a result of obtaining new facts and circumstances about acquired accrued expenses that existed as of the acquisition date. In addition, the Company adjusted the estimate of contingent consideration payments due to the seller based on gathering additional information about facts and circumstances that existed at the acquisition date regarding the acquired inventory for which the contingent payments are based. All measurement period adjustments were offset against Goodwill. |
Schedule of unaudited pro forma information | The pro forma information for the fiscal years ended 2017 and 2016, respectively, are as follows: Year Ended June 30, 2017 (a) 2016 (b) Pro forma Net revenues $ 8,889.2 $ 8,219.6 Pro forma Net (loss) income (101.2 ) 171.2 Pro forma Net (loss) income attributable to Coty Inc. (142.7 ) 135.5 Pro forma Net (loss) income attributable to Coty Inc. per common share Basic $ (0.19 ) $ 0.18 Diluted $ (0.19 ) $ 0.18 (a) For the twelve months ended June 30, 2017, the pro forma information excluded $476.3 of non-recurring acquisition-related costs and $89.6 of amortization of inventory step up, respectively. (b ) For the twelve months ended June 30, 2016, the pro forma information included $45.8 of non-recurring acquisition-related costs and $80.1 of amortization of inventory step up, respectively. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of reportable segments | Year Ended June 30, SEGMENT DATA 2018 2017 2016 Net revenues: Luxury $ 3,210.5 $ 2,566.6 $ 1,836.6 Consumer Beauty 4,268.1 3,688.2 2,262.5 Professional Beauty 1,919.4 1,395.5 250.0 Total $ 9,398.0 $ 7,650.3 $ 4,349.1 Depreciation and amortization: Luxury $ 253.3 $ 203.5 $ 99.1 Consumer Beauty 340.4 256.2 114.6 Professional Beauty 143.3 95.4 18.0 Corporate — — 0.3 Total $ 737.0 $ 555.1 $ 232.0 Operating income (loss): Luxury $ 248.7 $ 158.0 $ 228.9 Consumer Beauty 278.9 261.2 246.5 Professional Beauty 119.4 78.5 68.0 Corporate (485.8 ) (935.5 ) (289.2 ) Total $ 161.2 $ (437.8 ) $ 254.2 Reconciliation: Operating income (loss) $ 161.2 $ (437.8 ) $ 254.2 Interest expense, net 265.0 218.6 81.9 Loss on early extinguishment of debt 10.7 — 3.1 Other expense, net 38.0 1.6 30.4 (Loss) income before income taxes $ (152.5 ) $ (658.0 ) $ 138.8 |
Schedule of revenue from external customers and long-lived assets by geographical areas | The Company has determined its geographical structure to be North America (Canada and the United States), Europe and ALMEA (Asia, Latin America, the Middle East, Africa and Australia). Year Ended June 30, GEOGRAPHIC DATA 2018 2017 2016 Net revenues: North America $ 2,966.0 $ 2,506.9 $ 1,413.0 Europe 4,201.6 3,325.7 1,924.6 ALMEA 2,230.4 1,817.7 1,011.5 Total $ 9,398.0 $ 7,650.3 $ 4,349.1 Long-lived assets: U.S. $ 7,408.5 $ 7,662.4 $ 2,688.7 Switzerland 8,000.2 6,899.8 508.0 Brazil 718.2 863.3 882.7 All other 2,441.1 3,187.3 830.9 Total $ 18,568.0 $ 18,612.8 $ 4,910.3 |
Schedule of product categories exceeding 5% of consolidated net revenues | Presented below are the net revenues associated with Company’s product categories: Year Ended June 30, PRODUCT CATEGORY 2018 2017 2016 Fragrances 36.8 % 36.1 % 46.3 % Color Cosmetics 28.2 % 29.6 % 35.9 % Skin & Body Care 10.1 % 12.4 % 17.6 % Hair Care 24.9 % 21.9 % 0.2 % Total 100.0 % 100.0 % 100.0 % |
RESTRUCTURING COSTS (Tables)
RESTRUCTURING COSTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | Restructuring costs for the fiscal years ended June 30, 2018 , 2017 and 2016 are presented below: Year Ended June 30, 2018 2017 2016 Global Integration Activities $ 106.5 $ 364.2 $ — Acquisition Integration Program (4.5 ) 2.3 42.3 Other Restructuring 71.2 5.7 44.6 Total $ 173.2 $ 372.2 $ 86.9 Of the expected costs, the Company has incurred cumulative restructuring charges of $470.7 related to approved initiatives through the fiscal year ended June 30, 2018 , which have been recorded in Corporate. The following table presents aggregate restructuring charges for the program: Severance and Employee Benefits Third-Party Fixed Asset Write-offs Other Exit Costs Total Fiscal 2017 $ 333.9 $ 22.4 $ 4.6 $ 3.3 $ 364.2 Fiscal 2018 67.5 19.3 14.3 5.4 106.5 Cumulative through June 30, 2018 $ 401.4 $ 41.7 $ 18.9 $ 8.7 $ 470.7 |
Restructuring charges | The related liability balance and activity of restructuring costs for the 2018 Restructuring Actions are presented below: Severance and Employee Benefits Third-Party Contract Terminations Fixed Asset Write-offs Other Exit Costs Total Program Costs Balance—July 1, 2017 $ — $ — $ — $ — $ — Restructuring charges 63.7 0.2 1.3 3.4 68.6 Payments (15.1 ) — — (0.4 ) (15.5 ) Changes in estimates (0.2 ) — — — (0.2 ) Non-cash utilization — (1.3 ) 0.3 (1.0 ) Effect of exchange rates (0.4 ) — — — (0.4 ) Balance—June 30, 2018 $ 48.0 $ 0.2 $ — $ 3.3 $ 51.5 |
Global Integration Activities | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | The related liability balance and activity for the Global Integration Activities restructuring costs are presented below: Severance and Third-Party Fixed Asset Write-offs Other Total Balance—July 1, 2017 $ 310.8 $ 14.9 $ — $ 2.8 $ 328.5 Restructuring charges 81.3 21.7 14.3 5.4 122.7 Payments (188.5 ) (17.0 ) — (4.8 ) (210.3 ) Change in estimates (13.8 ) (2.4 ) — — (16.2 ) Non-cash utilization — — (14.3 ) — (14.3 ) Effect of exchange rates 13.2 (0.2 ) — (0.3 ) 12.7 Balance—June 30, 2018 $ 203.0 $ 17.0 $ — $ 3.1 $ 223.1 |
Acquisition Integration Program | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | The related liability balance and activity for the Acquisition Integration Program costs are presented below: Severance and Third-Party Other (a) Total Balance—July 1, 2017 $ 24.8 $ 1.5 $ 4.1 $ 30.4 Restructuring charges — — 3.3 3.3 Payments (16.9 ) — (2.2 ) (19.1 ) Changes in estimates (a) (7.8 ) — — (7.8 ) Effect of exchange rates 1.0 — (0.1 ) 0.9 Balance—June 30, 2018 $ 1.1 $ 1.5 $ 5.1 $ 7.7 (a) The decrease in severance and employee benefits is primarily attributable to favorable settlements with restructured employees. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories as of June 30, 2018 and 2017 are presented below: June 30, June 30, Raw materials $ 278.6 $ 256.4 Work-in-process 21.8 33.4 Finished goods 848.5 762.8 Total inventories $ 1,148.9 $ 1,052.6 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 and 2017 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 671.2 $ 646.1 Machinery and equipment 866.3 851.5 Marketing furniture and fixtures 514.2 432.8 Computer equipment and software 699.1 459.0 Construction in progress 230.8 286.1 Property and equipment, gross 2,981.6 2,675.5 Accumulated depreciation and amortization (1,300.8 ) (1,043.4 ) Property and equipment, net $ 1,680.8 $ 1,632.1 |
GOODWILL AND OTHER INTANGIBLE43
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Goodwill as of June 30, 2018 , 2017 and 2016 is presented below: Luxury Consumer Beauty Professional Beauty Total Gross balance at June 30, 2016 $ 1,294.5 $ 1,288.2 $ 270.8 $ 2,853.5 Accumulated impairments (403.7 ) (237.1 ) — (640.8 ) Net balance at June 30, 2016 $ 890.8 $ 1,051.1 $ 270.8 $ 2,212.7 Changes during the year ended June 30, 2017 Acquisitions 1,866.1 3,285.2 665.5 5,816.8 Measurement period adjustments 308.0 124.7 12.0 444.7 Foreign currency translation 28.2 36.3 19.2 83.7 Dispositions — (2.4 ) — (2.4 ) Gross balance at June 30, 2017 $ 3,496.8 $ 4,732.0 $ 967.5 $ 9,196.3 Accumulated impairments (403.7 ) (237.1 ) — (640.8 ) Net balance at June 30, 2017 $ 3,093.1 $ 4,494.9 $ 967.5 $ 8,555.5 Changes during the year ended June 30, 2018 Acquisitions (a) 68.2 — 2.6 70.8 Measurement period adjustments (b) (185.0 ) 228.8 (17.3 ) 26.5 Foreign currency translation (10.3 ) (24.1 ) 1.0 (33.4 ) Dispositions (3.1 ) (9.2 ) — (12.3 ) Gross balance at June 30, 2018 $ 3,366.6 $ 4,927.5 $ 953.8 $ 9,247.9 Accumulated impairments (403.7 ) (237.1 ) — (640.8 ) Net balance at June 30, 2018 $ 2,962.9 $ 4,690.4 $ 953.8 $ 8,607.1 (a) Includes goodwill resulting from the Burberry Beauty Business acquisition during the year ended June 30, 2018 (Refer to Note 3 — Business Combinations ). (b) Includes measurement period adjustments in connection with the P&G Beauty Business, ghd, Younique and Burberry Beauty Business acquisitions (Refer to Note 3 — Business Combinations ). |
Schedule of indefinite-lived other intangible assets | The changes in the carrying amount of indefinite-lived other intangible assets are presented below: Luxury Consumer Beauty Professional Beauty Total Gross balance at June 30, 2016 401.2 551.5 662.1 1,614.8 Accumulated impairments (118.8 ) (75.9 ) (3.1 ) (197.8 ) Net balance at June 30, 2016 282.4 475.6 659.0 1,417.0 Changes during the year ended June 30, 2017 Acquisitions — 1,390.0 663.8 2,053.8 Measurement period adjustments — (255.0 ) (60.0 ) (315.0 ) Foreign currency translation 8.6 9.9 12.6 31.1 Gross balance at June 30, 2017 $ 409.8 $ 1,696.4 $ 1,278.5 $ 3,384.7 Accumulated impairments (118.8 ) (75.9 ) (3.1 ) (197.8 ) Net balance at June 30, 2017 291.0 1,620.5 1,275.4 3,186.9 Changes during the year ended June 30, 2018 Measurement period adjustments (a) — — (14.8 ) (14.8 ) Foreign currency translation 4.8 6.7 2.6 14.1 Gross balance at June 30, 2018 414.6 1,703.1 1,266.3 3,384.0 Accumulated impairments (118.8 ) (75.9 ) (3.1 ) (197.8 ) Net balance at June 3 0, 2018 $ 295.8 $ 1,627.2 $ 1,263.2 $ 3,186.2 (a) Includes measurement period adjustments in connection with the ghd acquisition (Refer to Note 3 — Business Combinations ). Other intangible assets, net as of June 30, 2018 and 2017 are presented below: June 30, June 30, Indefinite-lived other intangible assets $ 3,186.2 $ 3,186.9 Finite-lived other intangible assets, net 5,098.2 5,238.3 Total Other intangible assets, net $ 8,284.4 $ 8,425.2 |
Schedule of finite-lived other intangible 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 5-34 years Customer relationships 2-28 years Trademarks 2-30 years Product formulations and technology 3-29 years Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2017 License agreements $ 3,148.4 $ (653.3 ) $ — $ 2,495.1 Customer relationships 1,937.3 (375.0 ) (5.5 ) 1,556.8 Trademarks 1,001.1 (141.0 ) — 860.1 Product formulations and technology 389.3 (63.0 ) — 326.3 Total $ 6,476.1 $ (1,232.3 ) $ (5.5 ) $ 5,238.3 June 30, 2018 License agreements (a)(b) $ 3,362.7 $ (792.9 ) $ — $ 2,569.8 Customer relationships (a)(b) 1,960.5 (508.7 ) (5.5 ) 1,446.3 Trademarks 1,002.1 (185.5 ) (0.4 ) 816.2 Product formulations and technology (a) 361.2 (95.3 ) — 265.9 Total $ 6,686.5 $ (1,582.4 ) $ (5.9 ) $ 5,098.2 (a) Includes measurement period adjustments in connection with the P&G Beauty Business and ghd acquisitions during fiscal 2018. (b) Includes License agreements and Customer relationships of $171.1 and $6.7 , respectively resulting from the Burberry Beauty Business acquisition during the fiscal year ended June 30, 2018 (see Note 3 — Business Combinations ). Other intangible assets, net as of June 30, 2018 and 2017 are presented below: June 30, June 30, Indefinite-lived other intangible assets $ 3,186.2 $ 3,186.9 Finite-lived other intangible assets, net 5,098.2 5,238.3 Total Other intangible assets, net $ 8,284.4 $ 8,425.2 |
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 24.6 years Customer relationships 15.9 years Trademarks 22.0 years Product formulations and technology 10.5 years |
Schedule of finite-lived intangible assets, future amortization expense | The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below: 2019 $ 353.9 2020 349.1 2021 344.8 2022 326.5 2023 304.4 |
ACCRUED EXPENSES AND OTHER CU44
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities as of June 30, 2018 and 2017 are presented below: June 30, June 30, Advertising, marketing and licensing $ 435.5 $ 445.1 Compensation and other compensation related benefits 333.1 328.2 Customer returns, discounts, allowances and bonuses 328.2 307.3 Restructuring costs 263.8 301.0 VAT, sales and other non-income taxes 134.5 97.7 Mandatorily redeemable financial instrument liability (See Note 19) 46.6 8.1 Auditing, consulting, legal and litigation accruals 34.1 32.6 Interest 31.5 17.8 Deferred income 25.5 15.8 Tax indemnity liability 21.1 38.0 Unfavorable contract liability 11.3 11.0 Acquisition-related costs 1.3 23.5 Other 177.9 170.3 Total accrued expenses and other current liabilities $ 1,844.4 $ 1,796.4 |
OTHER NONCURRENT LIABILITIES (T
OTHER NONCURRENT LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other noncurrent liabilities | Other noncurrent liabilities as of June 30, 2018 and 2017 are presented below: June 30, June 30, Noncurrent income tax liabilities $ 137.7 $ 154.2 Unfavorable contract liabilities 104.1 113.2 Deferred rent 54.2 49.0 Restructuring costs 31.1 82.3 Burberry contingent consideration 8.3 — Mandatorily redeemable financial instrument liability (See Note 19) 6.7 46.4 Other 46.4 28.3 Total other noncurrent liabilities $ 388.5 $ 473.4 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt | June 30, June 30, Short-term debt $ 9.2 $ 3.7 2018 Coty Credit Agreement 2018 Coty Revolving Credit Facility due April 2023 368.1 — 2018 Coty Term A Facility due April 2023 3,371.5 — 2018 Coty Term B Facility due April 2025 2,390.5 — Senior Unsecured Notes 2026 Dollar Notes due April 2026 550.0 — 2023 Euro Notes due April 2023 640.9 — 2026 Euro Notes due April 2026 291.4 — Galleria Credit Agreement Galleria Revolving Credit Facility due September 2021 — — Galleria Term Loan A Facility due September 2021 — 944.3 Galleria Term Loan B Facility due September 2023 — 1,000.0 2015 Coty Credit Agreement Coty Revolving Credit Facility due October 2020 — 810.0 Coty Term Loan A Facility due October 2020 — 1,792.8 Coty Term Loan A Facility due October 2021 — 950.6 Coty Term Loan B Facility due October 2022 — 1,712.5 Other long-term debt and capital lease obligations 1.6 1.7 Total debt 7,623.2 7,215.6 Less: Short-term debt and current portion of long-term debt (218.9 ) (209.1 ) Total Long-term debt 7,404.3 7,006.5 Less: Unamortized debt issuance costs (a) (b) (86.2 ) (67.6 ) Less: Discount on Long-term debt (12.7 ) (10.6 ) Total Long-term debt, net $ 7,305.4 $ 6,928.3 (a) Balances as of June 30, 2018 consist of unamortized debt issuance costs of $31.4 for the 2018 Coty Revolving Credit Facility, $29.2 for the 2018 Coty Term A Facility, $10.9 for the 2018 Coty Term B Facility, $8.3 for the 2026 Dollar and Euro Notes and $6.4 for the 2023 Euro Notes. (b) Balances as of June 30, 2017 consist of unamortized debt issuance costs of $17.5 for the Coty Revolving Credit Facility, $33.2 for the Coty Term Loan A Facility, $11.3 for the Coty Term Loan B Facility, $2.7 for the Galleria Term Loan A Facility and $3.0 for the Galleria Term Loan B Facility. Unamortized debt issuance costs of $4.2 for the Galleria Revolving Credit Facility were classified as Other noncurrent assets as of June 30, 2017 . |
Schedule of long term debt facilities | The Company’s long-term debt facilities consisted of the following as of June 30, 2018 : Facility Maturity Date Borrowing Capacity (in millions) Interest Rate Terms Applicable Interest Rate Spread as of Debt Discount Repayment Schedule 2018 Coty Revolving Credit Facility April 2023 $3,250.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) (e) 1.75% N/A (b) Payable in full at maturity date 2018 Coty Term A Facility - USD Portion April 2023 $1,000.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) 1.75% N/A (b) Quarterly repayments beginning September 30, 2018 at 1.25% of original principal amount 2018 Coty Term A Facility - EUR Portion April 2023 €2,035.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) 1.75% N/A (b) Quarterly repayments beginning September 30, 2018 at 1.25% of original principal amount 2018 Coty Term B Facility - USD Portion April 2025 $1,400.0 LIBOR (a) plus a margin of 2.25% per annum or a base rate plus a margin of 1.25% per annum (d) 2.25% 0.25% Quarterly repayments beginning September 30, 2018 at 0.25% of original principal amount 2018 Coty Term B Facility - EUR Portion April 2025 €850.0 LIBOR (a) plus a margin of 2.50% per annum (d) 2.50% 0.25% Quarterly repayments beginning September 30, 2018 at 0.25% of original principal amount 2026 Dollar Notes April 2026 $550.0 6.5% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018 N/A (b) N/A (b) Payable in full at maturity date 2023 Euro Notes April 2023 €550.0 4.0% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018 N/A (b) N/A (b) Payable in full at maturity date 2026 Euro Notes April 2026 €250.0 4.75% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018 N/A (b) N/A (b) Payable in full at maturity date (a) As defined below. (b) N/A - Not Applicable. (c) As defined per the 2018 Coty Credit Agreement. (d) The selection of the applicable one, two, three, six or twelve month interest rate for the period is at the discretion of the Company. (e) The Company will pay to the Revolving Credit Facility lenders an unused commitment fee calculated at a rate ranging from 0.10% to 0.35% per annum, based on the Company’s total net leverage ratio (c) . As of June 30, 2018 , the applicable rate on the unused commitment fee was 0.30% . The Company’s long-term debt facilities consisted of the following as of June 30, 2017: Facility Maturity Date Borrowing Capacity (in millions) Interest Rate Terms Applicable Interest Rate Spread as of Debt Discount Repayment Schedule Galleria Revolving Credit Facility (a) September 2021 $1,500.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) (f) 1.75% N/A (b) Payable in full at maturity date Galleria Term Loan A Facility (a) September 2021 $2,000.0 (g) LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (f) 1.75% N/A (b) Quarterly repayments beginning December 31, 2017 at 1.25% of original principal amount Galleria Term Loan B Facility (a) September 2023 $1,000.0 LIBOR (a) plus a margin of 3.00% or a base rate, plus a margin of 2.00% (f) 3.00% 0.50% Quarterly repayments Coty Revolving Credit Facility (a) October 2020 $1,500.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) (f) 1.75% N/A (b) Payable in full at maturity date Coty Term Loan A Facility (a) - USD Portion October 2020 $1,750.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (f) 1.75% N/A (b) Quarterly repayments beginning June 30, 2016 at 1.25% of original principal amount Coty Term Loan A Facility (a) - Euro Portion October 2020 €140.0 EURIBOR (a) plus a margin of 1.00% to 2.00% per annum, based on the Company’s total net leverage ratio (c) (f) 1.75% N/A (b) Quarterly repayments beginning September 30, 2016 at 1.25% of original principal amount Incremental Term A Facility (a) October 2021 $975.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (f) 1.75% N/A (b) Quarterly repayments beginning March 31, 2017 at 1.25% of original principal amount Coty Term Loan B Facility (a)(h) - USD Portion and Incremental Term B Facility (a) October 2022 $600.0 LIBOR (a) plus a margin of 2.50% or a base rate, plus a margin of 2.00% (f) 2.50% 0.50% Quarterly repayments beginning June 30, 2016 at 0.25% of original principal amount Coty Term Loan B Facility (a) - Euro Portion October 2022 €990.0 (e) EURIBOR (a) plus a margin of 2.75% 2.75% 0.50% See below. (e) (a) As defined below. (b) N/A - Not Applicable. (c) As defined per the respective loan agreement. (d) Additionally the Company paid to the Revolving Credit Facility lenders an unused commitment fee calculated at a rate ranging from 0.25% to 0.50% per annum, based on the Company’s total net leverage ratio (c) . As of June 30, 2017 , the applicable rate on the unused commitment fee was 0.50% . (e) Included €665.0 million of the Euro portion of Coty Term Loan B Facility originated on October 27, 2015, and the €325.0 million from the Incremental Term Loans, as defined below, originated on April 8, 2016. Repayments on the €665.0 million portion were payable quarterly beginning on June 30, 2016 at 0.25% of the original principal amount. Repayments on the €325.0 million Incremental Term Loan B were payable quarterly beginning on September 30, 2016 at 0.25% of the original principal amount. (f) The selection of the applicable interest rate for the period is at the discretion of the Company. (g) At the closing of the P&G Beauty Business acquisition, $944.3 were assumed under the Galleria Credit Agreement. The remaining unused loan commitments for the Galleria Term Loan A Facility expired. (h) Refinanced as part of the Incremental Assumption Agreement (a) on October 28, 2016 and part of the Refinancing Facilities (a) . The Company’s long term debt facilities consisted of the following as of June 30, 2016: Facility Maturity Date Borrowing Capacity (in millions) Interest Rate Terms Applicable Interest Rate Spread as of June 30, 2016 Debt Discount Repayment Schedule Coty Revolving Credit Facility (a) October 2020 $1,500.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) (f) 1.75% N/A (b) Payable in full at maturity date Coty Term Loan A Facility (a) - USD Portion October 2020 $1,750.0 LIBOR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (f) 1.75% N/A (b) Quarterly repayments beginning June 30, 2016 at 1.25% of original principal amount Coty Term Loan A Facility (a) - Euro Portion October 2020 €140.0 EURIBOR (a) plus a margin of 1.00% to 2.00% per annum, based on the Company’s total net leverage ratio (c) (f) 1.75% N/A (b) Quarterly repayments beginning September 30, 2016 at 1.25% of original principal amount Coty Term Loan B Facility (a) - USD portion October 2022 $500.0 LIBOR (a) (subject to a 0.75% floor) plus a margin of 3.00% or a base rate (subject to a 1.75% floor), plus a margin of 2.00% (f) 3.00% 0.50% Quarterly repayments beginning June 30, 2016 at 0.25% of original principal amount Coty Term Loan B Facility (a) - Euro portion October 2022 €990.0 (e) EURIBOR (a) (subject to a 0.75% floor) plus a margin of 2.75% 2.75% 0.50% Quarterly repayments beginning June 30, 2016 at 0.25% of original principal amount (e) (a) As defined below. (b) N/A - Not Applicable. (c) As defined per the respective loan agreement. (d) Additionally the Company paid to the Coty Revolving Credit Facility and Galleria Revolving Facility lenders an unused commitment fee calculated at a rate ranging from 0.25% to 0.50% per annum, based on the Company’s total net leverage ratio (c) . As of June 30, 2016, the applicable rate on the unused commitment fee was 0.50% . (e) Included €665.0 million of the Euro portion of Term Loan B originated on October 27, 2015, and the €325.0 million from the Incremental Term Loans, as defined below, originated on April 8, 2016. Repayments on the €325.0 million Incremental Term Loan B were payable quarterly beginning on September 30, 2016 at 0.25% of the original principal amount. (f) The selection of the applicable interest rate for the period is at the discretion of the Company. |
Debt Instrument Redemption | At any time on or after April 15, 2021, April 15, 2020 and April 15, 2021, the Company may redeem some or all of the 2026 Dollar Notes, 2023 Euro Notes and 2026 Euro Notes, respectively, at the redemption prices (expressed in percentage of principal amount) set forth below, plus accrued and unpaid interest, if any, to, but excluding, the redemption dates, if redeemed during the twelve-month period beginning on April 15 of each of the years indicated below: Price Year 2026 Dollar Notes 2023 Euro Notes 2026 Euro Notes 2020 N/A 102.0000% N/A 2021 104.8750% 101.0000% 103.5625% 2022 103.2500% 100.0000% 102.3750% 2023 101.6250% 100.0000% 101.1875% 2024 and thereafter 100.0000% N/A 100.0000% |
Schedule of Leverage-based Pricing | With certain exceptions as described below, the 2018 Coty Credit Agreement includes a financial covenant that requires us to maintain a Total Net Leverage Ratio (as defined below), equal to or less than the ratios shown below for each respective test period. Quarterly Test Period Ending Total Net Leverage Ratio (a) June 30, 2018 5.50 to 1.00 September 30, 2018 through December 31, 2018 5.50 to 1.00 March 31, 2019 through June 30, 2019 5.25 to 1.00 September 30, 2019 through December 31, 2019 5.00 to 1.00 March 31, 2020 through June 30, 2020 4.75 to 1.00 September 30, 2020 through December 31, 2020 4.50 to 1.00 March 31, 2021 through June 30, 2021 4.25 to 1.00 September 30, 2021 through June 30, 2023 4.00 to 1.00 (a) Total Net Leverage Ratio means, as of any date of determination, the ratio of: (a) (i) Total Indebtedness minus (ii) unrestricted cash and Cash Equivalents of the Parent Borrower and its Restricted Subsidiaries as determined in accordance with GAAP to (b) Adjusted EBITDA for the most recently ended Test Period (each of the defined terms used within the definition of Total Net Leverage Ratio have the meanings ascribed to them within the 2018 Coty Credit Agreement). In the case of the 2018 Coty Revolving Credit Facility and the 2018 Coty Term A Facility, the applicable margin means the lesser of a percentage per annum to be determined in accordance with the leverage-based pricing grid and the debt rating-based grid below: Pricing Tier Total Net Leverage Ratio: LIBOR plus: Alternative Base Rate Margin: 1.0 Greater than or equal to 4.75:1 2.000% 1.000% 2.0 Less than 4.75:1 but greater than or equal to 4.00:1 1.750% 0.750% 3.0 Less than 4.00:1 but greater than or equal to 2.75:1 1.500% 0.500% 4.0 Less than 2.75:1 but greater than or equal to 2.00:1 1.250% 0.250% 5.0 Less than 2.00:1 but greater than or equal to 1.50:1 1.125% 0.125% 6.0 Less than 1.50:1 1.000% —% Pricing Tier Debt Ratings S&P/Moody’s: LIBOR plus: Alternative Base Rate Margin: 5.0 Less than BB+/Ba1 2.000% 1.000% 4.0 BB+/Ba1 1.750% 0.750% 3.0 BBB-/Baa3 1.500% 0.500% 2.0 BBB/Baa2 1.250% 0.250% 1.0 BBB+/Baa1 or higher 1.125% 0.125% |
Fair value of debt | June 30, 2018 June 30, 2017 Carrying Fair Carrying Fair 2018 Coty Credit Agreement $ 6,130.1 $ 6,070.8 $ — $ — Senior Unsecured Notes 1,482.3 1,449.9 — — Galleria Credit Agreement — — 1,944.3 1,944.0 2015 Coty Credit Agreement — — 5,265.9 5,275.4 |
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, 2018 , are presented below: Fiscal Year Ending June 30, 2019 $ 192.5 2020 192.5 2021 192.5 2022 192.5 2023 3,730.1 Thereafter 3,112.3 Total $ 7,612.4 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 are presented below: Fiscal Year Ending June 30, 2019 $ 128.9 2020 112.1 2021 97.0 2022 80.4 2023 71.8 Thereafter 339.3 829.5 Less: sublease income (23.9 ) Total minimum payments required $ 805.6 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax | (Loss) income before income taxes in fiscal 2018 , 2017 and 2016 is presented below: Year Ended June 30, 2018 2017 2016 United States $ (324.2 ) $ (524.8 ) $ (153.6 ) Foreign 171.7 (133.2 ) 292.4 Total $ (152.5 ) $ (658.0 ) $ 138.8 |
Schedule of components of income tax expense (benefit) | The components of the Company’s total (benefit) provision for income taxes during fiscal 2018 , 2017 and 2016 are presented below: Year Ended June 30, 2018 2017 2016 (Benefit) provision for income taxes: Current: Federal $ 0.2 $ 0.4 $ (30.0 ) State and local 9.8 1.1 (2.7 ) Foreign 67.0 129.0 131.5 Total 77.0 130.5 98.8 Deferred: Federal 25.2 (256.9 ) (91.7 ) State and local (0.7 ) (24.2 ) (9.9 ) Foreign (126.2 ) (108.9 ) (37.6 ) Total (101.7 ) (390.0 ) (139.2 ) Benefit for income taxes $ (24.7 ) $ (259.5 ) $ (40.4 ) |
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 2018 , 2017 and 2016 is presented below: Year Ended June 30, 2018 2017 2016 Income (loss) before income taxes $ (152.5 ) $ (658.0 ) $ 138.8 (Benefit) provision for income taxes at statutory rate $ (42.8 ) $ (230.3 ) $ 48.5 State and local taxes—net of federal benefit 9.9 (15.0 ) (8.3 ) Foreign tax differentials (21.9 ) 53.3 (50.8 ) Change in valuation allowances 8.6 (108.2 ) (7.6 ) Change in unrecognized tax benefit (24.8 ) 25.6 45.8 U.S. audit settlement, net — — (83.2 ) Tax Act 41.0 — — Permanent differences—net (8.5 ) 1.2 4.7 Amortization on intercompany sale 5.4 5.7 5.7 Other 8.4 8.2 4.8 (Benefit) provision for income taxes $ (24.7 ) $ (259.5 ) $ (40.4 ) Effective income tax rate 16.2 % 39.4 % (29.1 )% |
Schedule of deferred tax assets and liabilities | Significant components of deferred income tax assets and liabilities as of June 30, 2018 and 2017 are presented below: June 30, June 30, Deferred income tax assets: Inventories $ 9.0 $ 11.7 Accruals and allowances 84.2 108.8 Sales returns 13.1 14.8 Share-based compensation 13.4 14.2 Employee benefits 115.7 141.2 Net operating loss carry forwards and tax credits 285.1 436.9 Other 48.3 40.7 Less: valuation allowances (104.6 ) (60.3 ) Net deferred income tax assets 464.2 708.0 Deferred income tax liabilities: Intangible assets 1,115.7 1,420.9 Property, plant and equipment 18.9 44.1 Unrealized gain 5.4 44.0 Licensing rights 21.5 30.4 Other 37.8 20.9 Deferred income tax liabilities 1,199.3 1,560.3 Net deferred income tax liabilities $ (735.1 ) $ (852.3 ) |
Expirations of tax loss carryforwards | The expirations of tax loss carry forwards, amounting to $1,134.1 as of June 30, 2018 , 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 2019 $ — $ — $ 15.2 $ 15.2 2020 — — 75.3 75.3 2021 — 0.8 12.4 13.2 2022 — 1.9 21.4 23.3 2023 and thereafter 1.7 828.9 176.5 1,007.1 Total $ 1.7 $ 831.6 $ 300.8 $ 1,134.1 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of UTBs is presented below: Year Ended June 30, 2018 2017 2016 UTBs—July 1 $ 257.9 $ 228.9 $ 342.6 Additions based on tax positions related to the current year 44.1 43.6 60.4 Additions for tax positions of prior years 97.4 0.4 — Reductions for tax positions of prior years (39.9 ) — (70.5 ) Settlements (42.3 ) (1.5 ) (72.7 ) Lapses in statutes of limitations (11.0 ) (13.2 ) (37.9 ) Foreign currency translation (2.6 ) (0.3 ) 7.0 UTBs—June 30 $ 303.6 $ 257.9 $ 228.9 |
INTEREST EXPENSE, NET (Tables)
INTEREST EXPENSE, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Interest Income (Expense), Net [Abstract] | |
Interest expense, net | Interest expense, net for the years ended June 30, 2018 , 2017 and 2016 is presented below: Year Ended June 30, 2018 2017 2016 Interest expense $ 287.1 $ 219.6 $ 112.9 Foreign exchange (gain) losses, net of derivative contracts (a) (8.5 ) 3.4 (26.9 ) Interest income (13.6 ) (4.4 ) (4.1 ) Total interest expense, net $ 265.0 $ 218.6 $ 81.9 (a) In the years ended June 30, 2018 and 2016, the Company recorded gains of $1.4 and $11.1 , respectively, related to short-term forward contracts to exchange euros for U.S. dollars to facilitate the repayment of U.S. dollar denominated debt. Fluctuations in exchange rates between the dates the short-term forward contracts were entered into and the settlement date resulted in a gain upon settlement of $1.4 and $11.1 included within total Interest expense, net for the fiscal years end June 30, 2018 and 2016, respectively in the Company’s Consolidated Statements of Operations. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [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 2018 2017 2018 2017 2018 2017 2018 2017 Change in benefit obligation Benefit obligation—July 1 $ 18.8 $ 82.1 $ 708.8 $ 203.6 $ 63.8 $ 47.7 $ 791.4 $ 333.4 Service cost — — 38.8 34.8 1.4 1.9 40.2 36.7 Interest cost 0.7 1.6 12.6 6.6 2.0 1.8 15.3 10.0 Plan participants’ contributions — — 7.1 15.0 0.2 0.2 7.3 15.2 Benefits paid (1.3 ) (2.5 ) (29.6 ) (9.6 ) (1.6 ) (2.0 ) (32.5 ) (14.1 ) Premiums paid — — (2.7 ) (2.9 ) — — (2.7 ) (2.9 ) Pension curtailment — — 0.3 (2.2 ) (10.4 ) — (10.1 ) (2.2 ) Pension settlements — (60.2 ) (1.0 ) (23.0 ) — — (1.0 ) (83.2 ) Actuarial (gain) loss (0.7 ) (2.2 ) (6.3 ) (80.9 ) (2.5 ) (1.4 ) (9.5 ) (84.5 ) Acquired obligations (a) — — — 557.4 — 15.4 — 572.8 Effect of exchange rates — — 4.6 10.1 0.3 0.1 4.9 10.2 Other — — — (0.1 ) — 0.1 — — Benefit obligation—June 30 $ 17.5 $ 18.8 $ 732.6 $ 708.8 $ 53.2 $ 63.8 $ 803.3 $ 791.4 Change in plan assets Fair value of plan assets—July 1 $ — $ 53.2 $ 234.2 $ 42.4 $ 0.4 $ — $ 234.6 $ 95.6 Actual return on plan assets — (0.8 ) 18.8 10.6 — — 18.8 9.8 Employer contributions 1.3 10.1 37.1 29.8 1.4 1.8 39.8 41.7 Plan participants’ contributions — — 7.1 15.0 0.2 0.2 7.3 15.2 Benefits paid (1.3 ) (2.5 ) (29.2 ) (9.6 ) (1.6 ) (2.0 ) (32.1 ) (14.1 ) Premiums paid — — (2.7 ) (2.9 ) — — (2.7 ) (2.9 ) Plan settlements — (60.2 ) (1.0 ) (23.0 ) — — (1.0 ) (83.2 ) Acquired plan assets (a) — — — 168.3 — 0.4 — 168.7 Effect of exchange rates — — (2.5 ) 3.6 — — (2.5 ) 3.6 Other — 0.2 — — — — — 0.2 Fair value of plan assets—June 30 — — 261.8 234.2 0.4 0.4 262.2 234.6 Funded status—June 30 $ (17.5 ) $ (18.8 ) $ (470.8 ) $ (474.6 ) $ (52.8 ) $ (63.4 ) $ (541.1 ) $ (556.8 ) (a) As a result of the acquisition of the P&G Beauty Business, the Company acquired certain international pension plans during Fiscal 2017. See Note 3 — Business Combinations for additional information. |
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, 2018 and 2017 , are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2018 2017 2018 2017 2018 2017 2018 2017 Noncurrent assets $ — $ — $ 1.1 $ 0.5 $ — $ — $ 1.1 $ 0.5 Current liabilities (1.3 ) (1.3 ) (5.5 ) (4.9 ) (2.1 ) (1.9 ) (8.9 ) (8.1 ) Noncurrent liabilities (16.2 ) (17.5 ) (466.4 ) (470.2 ) (50.7 ) (61.5 ) (533.3 ) (549.2 ) Funded status (17.5 ) (18.8 ) (470.8 ) (474.6 ) (52.8 ) (63.4 ) (541.1 ) (556.8 ) AOC(L)/I 1.7 2.5 44.7 25.1 20.1 23.9 66.5 51.5 Net amount recognized $ (15.8 ) $ (16.3 ) $ (426.1 ) $ (449.5 ) $ (32.7 ) $ (39.5 ) $ (474.6 ) $ (505.3 ) |
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 2018 2017 2018 2017 2018 2017 2018 2017 Projected benefit obligation $ 17.5 $ 18.8 $ 713.9 $ 695.0 $ 17.5 $ 18.8 $ 725.0 $ 705.6 Accumulated benefit obligation 17.5 18.8 657.8 631.6 17.5 18.8 669.1 640.6 Fair value of plan assets — — 247.0 223.9 — — 254.2 230.4 |
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 2018 2017 2016 2018 2017 2016 2018 2017 2016 2018 2017 2016 Service cost $ — $ — $ — $ 38.8 $ 34.8 $ 6.5 $ 1.4 $ 1.9 $ 1.1 $ 40.2 $ 36.7 $ 7.6 Interest cost 0.7 1.6 3.4 12.6 6.6 3.6 2.0 1.8 1.9 15.3 10.0 8.9 Expected return on plan assets — (0.9 ) (2.6 ) (7.5 ) (6.3 ) (1.1 ) — — — (7.5 ) (7.2 ) (3.7 ) Amortization of prior service (credit) cost — — — 0.2 0.2 0.2 (5.9 ) (5.9 ) (5.9 ) (5.7 ) (5.7 ) (5.7 ) Amortization of net loss (gain) (0.7 ) 2.3 1.2 1.2 4.2 2.6 (0.1 ) 0.1 — 0.4 6.6 3.8 Settlements loss (gain) recognized — 15.9 — — (0.5 ) 0.1 — — — — 15.4 0.1 Curtailment (gain) loss recognized — — — 0.1 (2.2 ) — (10.4 ) — (1.8 ) (10.3 ) (2.2 ) (1.8 ) Net periodic benefit cost $ — $ 18.9 $ 2.0 $ 45.4 $ 36.8 $ 11.9 $ (13.0 ) $ (2.1 ) $ (4.7 ) $ 32.4 $ 53.6 $ 9.2 |
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 2018 2017 2018 2017 2018 2017 2018 2017 Net actuarial (loss) gain $ 1.7 $ 2.5 $ 46.7 $ 27.4 $ 3.8 $ 1.7 $ 52.2 $ 31.6 Prior service (cost) credit — — (2.0 ) (2.3 ) 16.3 22.2 14.3 19.9 Total recognized in AOC(L)/I $ 1.7 $ 2.5 $ 44.7 $ 25.1 $ 20.1 $ 23.9 $ 66.5 $ 51.5 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 2018 2017 2018 2017 2018 2017 2018 2017 Net actuarial (loss) gain $ 0.7 $ 0.4 $ 17.8 $ 85.2 $ 2.3 $ 1.4 $ 20.8 $ 87.0 Amortization of prior service cost (credit) — — 0.2 0.2 (5.9 ) (5.9 ) (5.7 ) (5.7 ) Recognized net actuarial loss (gain) (0.6 ) 17.6 1.2 3.7 (0.1 ) 0.1 0.5 21.4 Effect of exchange rates — — 0.3 2.7 0.1 0.3 0.4 3.0 Total recognized in OCI/(L) $ 0.1 $ 18.0 $ 19.5 $ 91.8 $ (3.6 ) $ (4.1 ) $ 16.0 $ 105.7 |
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 2019 are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International Prior service (cost) credit $ — $ (0.2 ) $ 5.9 $ 5.7 Net gain (loss) 0.7 (0.4 ) 0.1 0.4 Total $ 0.7 $ (0.6 ) $ 6.0 $ 6.1 |
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 2018 2017 2018 2017 2018 2017 Discount rates 4.0% 3.6% 0.6%-8.0% 0.4%-7.5% 2.3%-4.2% 1.9%-7.6% Future compensation growth rates N/A N/A 1.5%-5.8% 0%-6.0% N/A N/A The weighted-average assumptions used to determine the Company’s net periodic benefit cost in fiscal 2018 , 2017 and 2016 are presented below: Pension Plans Other Post- U.S. International 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rates 3.6% 3.3%-3.8% 4.1%-4.5% 0.4%-7.5% 0.2%-7.8% 1.0%-2.7% 1.9%-7.6% 1.4%-8.0% 4.1%-4.6% Future compensation growth rates N/A N/A N/A 1.5%-6.0% 1.5%-5.8% 1.5%-2.5% N/A N/A N/A Expected long-term rates of return on plan assets N/A N/A 5.1% 1.8%-8.2% 1.6%-6.0% 2.3%-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. Year Ended June 30, 2018 2017 2016 Health care cost trend rate assumed for next year 7.4%-8.5% 7.2%-7.4% 7.2%-7.4% 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 2026 2025 2024 - 2025 |
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 $ (5.3 ) Effect on post-employment benefit obligation 0.4 (0.4 ) |
Schedule of Allocation of Plan Assets | The 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 — Summary of Significant Accounting Policies , as of June 30, 2018 and 2017 are presented below: Level 1 Level 2 Level 3 Total 2018 2017 2018 2017 2018 2017 2018 2017 Equity securities $ 63.0 $ 53.4 $ — $ — $ — $ — $ 63.0 $ 53.4 Fixed income securities: Corporate securities 54.6 50.5 — — — — 54.6 50.5 Other: Cash and cash equivalents 0.9 0.5 — — — — 0.9 0.5 Insurance contracts and other — — — — 143.7 130.2 143.7 130.2 Total pension plan assets $ 118.5 $ 104.4 $ — $ — $ 143.7 $ 130.2 $ 262.2 $ 234.6 The target asset allocations for the Company’s pension plans as of June 30, 2018 and 2017 , by asset category are presented below: % of Plan Assets at Year Ended Target 2018 2017 Equity securities 40 % 41 % 41 % Fixed income securities 50 % 42 % 39 % Cash and other investments 10 % 17 % 20 % |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The reconciliations of Level 3 plan assets measured at fair value in fiscal 2018 and 2017 are presented below: June 30, June 30, Insurance contracts: Fair value—July 1 $ 130.2 $ 42.4 Plan assets from acquisitions — 75.7 Return on plan assets 14.0 4.7 Purchases, sales and settlements, net 3.9 5.3 Effect of exchange rates (4.4 ) 2.1 Fair value—June 30 $ 143.7 $ 130.2 |
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 2019 $ 1.3 $ 40.5 $ 2.1 $ 43.9 2020 1.3 26.6 2.5 30.4 2021 1.3 26.5 2.9 30.7 2022 1.3 29.1 3.1 33.5 2023 1.2 28.0 3.3 32.5 2024 - 2027 5.9 167.2 17.5 190.6 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Amount of gains and losses recognized in OCI | The amount of gains and losses recognized in OCI in the Consolidated Balance Sheets related to the Company’s derivative and non-derivative financial instruments which are designated as hedging instruments is presented below: Gain (Loss) Recognized in OCI Fiscal Year Ended June 30, 2018 2017 2016 Foreign exchange forward contracts $ (0.3 ) $ (0.8 ) $ 6.0 Interest rate swap contracts 27.0 40.8 (36.6 ) Net investment hedges 138.7 (21.2 ) (2.5 ) |
Amount of gains and losses reclassified from OCI | The amount of gains and losses reclassified from AOCI/(L) to the Consolidated Statements of Operations related to the Company’s derivative financial instruments which are designated as hedging instruments is presented below: Consolidated Statements of Operations Classification of Gain (Loss) Reclassified from AOCI/(L) Fiscal Year Ended June 30, 2018 2017 2016 Foreign exchange forward contract: Net revenues $ (0.8 ) $ 2.4 $ 5.5 Cost of sales (0.7 ) (2.2 ) 0.7 Interest rate swap contracts: Interest income (expense), net 6.9 (9.3 ) (7.7 ) |
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 is presented below: Consolidated Statements of Operations Fiscal Year Ended June 30, 2018 2017 2016 Selling, general and administrative $ (0.8 ) $ (0.1 ) $ 1.8 Interest income (expense), net 17.5 (6.5 ) (11.3 ) Other income (expense), net (a) 0.2 (1.1 ) (29.3 ) (a) During fiscal 2016, the Company recognized $29.6 of realized losses on foreign currency forward contracts related to an advanced payment for the Hypermarcas Brands. |
REDEEMABLE NONCONTROLLING INT52
REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Redeemable noncontrolling interest redemption adjustments | Middle East Percentage of redeemable noncontrolling interest 25.0% (a) Earliest exercise date(s) December 2028 (b) Formula of redemption value 3-year average of EBIT (c) * 6 (a) Upon the effective date of the amendment (July 1, 2017), the parties will be entitled to call or put the remaining interest in July 2028. The Put right and Call right will be exercised in respect of the noncontrolling interest holder’s percentage of shares of the Middle East subsidiary at the time of the exercise. (b) Upon the effective date of the amendment (July 1, 2017), the parties will be entitled to call or put the noncontrolling interest holder’s percentage of shares of the subsidiary in December 2028. (c) EBIT is defined in the amended shareholders’ agreement as the consolidated net earnings before interest and income tax. |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Series A Preferred Stock | The following table summarizes the key terms of each issuance of Series A Preferred Stock: Issuance Date Number of Shares Awarded at Grant Date (millions of shares) Number of Shares Outstanding (millions of shares) Hurdle Price per Share April 2015 (a) 6.8 1.1 $ 27.97 April 2015 (a) 0.6 0.6 $ 26.87 November 25, 2016 (b) 1.0 1.0 $ 22.34 February 16, 2017 (b) 0.5 0.3 $ 22.66 March 27, 2017 (b) (c) 1.0 1.0 $ 22.39 November 16, 2017 (b) 1.0 1.0 $ 19.85 (a) If the holder does not exchange the vested Series A Preferred Stock by a specified 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. The portion related to service outside the United States, may be settled in cash or shares, at election of the Company. (b) If the holder does not exchange the vested Series A Preferred Stock by a specified expiration date, the Company must automatically exchange the Series A Preferred Stock into cash or shares, at election of the Company. (c) This grant was sold to Lambertus J.H. Becht (“Mr. Becht”), the Company’s Chairman of the Board. Under the terms provided in the subscription agreement, the Series A Preferred Stock immediately vested on the grant date and the holder may exchange the vested shares after the fifth anniversary of the date of issuance. The Company requires shareholder approval in order to settle the exchange in shares of Class A Common Stock. Therefore, the award is classified as a liability as of June 30, 2018 . An expense (income) of $(1.7) and $3.8 was recorded during fiscal 2018 and 2017, respectively, and has been included in Selling, general and administrative expense on the Consolidated Statements of Operations. |
Schedule of Dividends Declared | The following dividends were declared during fiscal years 2018 , 2017 and 2016 : Declaration Date Dividend Type Dividend Per Share Holders of Record Date Dividend Value Dividend Payment Date Dividends Paid Dividends Payable (a) Fiscal 2018 August 22, 2017 Quarterly $ 0.125 September 1, 2017 $ 94.4 September 14, 2017 $ 93.6 $ 0.8 November 9, 2017 Quarterly $ 0.125 November 30, 2017 $ 94.6 December 14, 2017 $ 93.7 $ 0.9 February 8, 2018 Quarterly $ 0.125 February 28, 2018 $ 94.6 March 15, 2018 $ 93.8 $ 0.8 May 9, 2018 Quarterly $ 0.125 May 31, 2018 $ 94.6 June 14, 2018 $ 93.8 $ 0.8 Fiscal 2018 $ 0.500 $ 378.2 $ 374.9 $ 3.3 Fiscal 2017 August 1, 2016 Annual $ 0.275 August 11, 2016 $ 93.4 August 19, 2016 $ 92.4 $ 1.0 December 9, 2016 Quarterly $ 0.125 December 19, 2016 $ 94.0 December 28, 2016 $ 93.4 $ 0.6 February 9, 2017 Quarterly $ 0.125 February 28, 2017 $ 94.0 March 10, 2017 $ 93.4 $ 0.6 May 10, 2017 Quarterly $ 0.125 May 31, 2017 $ 94.0 June 13, 2017 $ 93.4 $ 0.6 Fiscal 2017 $ 0.650 $ 375.4 $ 372.6 $ 2.8 Fiscal 2016 September 11, 2015 Annual $ 0.250 October 1, 2015 $ 90.1 October 15, 2015 $ 89.0 $ 1.1 (a) The dividend payable is the value of the remaining dividends payable upon settlement of the RSUs and phantom units outstanding as of the Holders of Record Date. Dividends payable are recorded as Accrued expense and other current liabilities and Other noncurrent liabilities in the Consolidated Balance Sheet. |
Schedule of Accumulated Other Comprehensive (Loss) | Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustments (Losses) Gains on Cash Flow Hedges (Losses) Gains on Net Investment Hedge Foreign Currency Translation Adjustments Pension and Other Post-Employment Benefit Plans Total Beginning balance at July 1, 2016 $ (28.9 ) $ (2.5 ) $ (164.0 ) $ (44.3 ) $ (239.7 ) Other comprehensive income before reclassifications 35.9 (21.2 ) 143.2 80.5 238.4 Net amounts reclassified from AOCI/(L) (a) 5.6 — — 0.1 5.7 Net current-period other comprehensive income 41.5 (21.2 ) 143.2 80.6 244.1 Ending balance at June 30, 2017 $ 12.6 $ (23.7 ) $ (20.8 ) $ 36.3 $ 4.4 Other comprehensive income before reclassifications 19.2 138.7 (23.5 ) 20.8 155.2 Net amounts reclassified from AOCI/(L) (a) (4.0 ) — — (3.3 ) (7.3 ) Net current-period other comprehensive income 15.2 138.7 (23.5 ) 17.5 147.9 Adjustment due to the adoption of ASU 2018-02 (Note 2) 3.9 — — 2.6 6.5 Ending balance at June 30, 2018 $ 31.7 $ 115.0 $ (44.3 ) $ 56.4 $ 158.8 (a) Amortization of actuarial gains (losses) of $5.2 and $0.4 , net of taxes of $1.9 and $0.3 , were reclassified out of AOCI/(L) and included in the computation of net period pension costs for the fiscal years ended June 30, 2018 and 2017 , respectively (see Note 17 — Employee Benefit Plans ). |
Schedule of Share Repurchase Activities | The following table summarizes the share repurchase activities during the years ended June 30, 2018, 2017 and 2016 : Period Number of shares repurchased (in millions) Cost of shares repurchased (in millions) Lowest fair value of shares repurchased per share Highest fair value of shares repurchased per share Fiscal Year Ended June 30, 2018 — $ — $ — $ — Fiscal Year Ended June 30, 2017 1.4 $ 36.3 $ 25.35 $ 27.40 Fiscal Year Ended June 30, 2016 27.4 $ 767.0 $ 25.10 $ 30.35 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Fair value valuation assumptions | During fiscal 2018 and 2017 , the share-based compensation expense recognized on nonqualified stock options is based upon the fair value on the grant date estimated using the Black-Scholes valuation model with the following weighted-average assumptions: 2018 2017 Expected life 7.50 years 7.50 years Risk-free interest rate 2.19% 1.60% Expected volatility 36.03% 36.74% Expected dividend yield 2.98% 1.62% The fair value of the Company’s outstanding Series A Preferred Stock liability on June 30, 2016 was estimated using the Black-Scholes valuation model with the following assumptions: 2016 Expected life 4.79 years Risk-free interest rate 1.01% Expected volatility 36.74% Expected dividend yield 0.96% As of June 30, 2018 , the fair value of the Company’s outstanding Series A Preferred Stock that are liability accounted were estimated with the following weighted-average assumptions. 2018 2017 Expected life, in years 4.52 years 5.86 years Expected volatility 35.00% 30.00% Risk-free rate of return 2.70% 1.99% Dividend yield on Class A Common Stock 3.55% 2.67% Yield on cash N/A 4.70% |
Outstanding nonqualified stock option activity | The Company’s outstanding nonqualified stock options as of June 30, 2018 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 (in years) Outstanding at July 1, 2017 12.0 $ 15.64 Granted 5.9 16.86 Exercised (2.3 ) 9.76 Forfeited (2.2 ) 18.45 Outstanding at June 30, 2018 13.4 $ 16.75 Vested and expected to vest at June 30, 2018 10.5 $ 16.63 $ — 7.73 Exercisable at June 30, 2018 1.7 $ 9.71 $ 7.4 1.96 |
Schedule of Stock Summary | A summary of the aggregated weighted-average grant date fair value of stock options granted and total intrinsic value of stock options exercised for fiscal 2018 , 2017 and 2016 is presented below: 2018 2017 2016 Weighted-average grant date fair value of stock options $ 4.87 $ 6.34 $ — Intrinsic value of options exercised 32.2 26.3 87.6 |
Schedule of non-vested nonqualified share activity | The Company’s non-vested nonqualified stock options as of June 30, 2018 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, 2017 8.0 $ 6.33 Granted 5.9 4.87 Forfeited (2.2 ) 6.27 Non-vested at June 30, 2018 11.7 $ 5.60 The Company’s non-vested shares of Series A Preferred Stock as of June 30, 2018 and activity during the fiscal year then ended are presented below: Shares Weighted Non-vested at July 1, 2017 3.2 $ 5.19 Granted 1.0 4.12 Forfeited (0.2 ) 3.63 Non-vested at June 30, 2018 4.0 $ 4.99 |
Scheduled of outstanding Series A Preferred shares | The Company’s outstanding Series A Preferred Shares as of June 30, 2018 and activity during the fiscal year then ended are presented below: Shares Weighted Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Outstanding at July 1, 2017 4.2 $ 24.66 Granted 1.0 19.85 Forfeited (0.2 ) 22.66 Outstanding at June 30, 2018 5.0 $ 23.62 Vested and expected to vest at June 30, 2018 4.4 $ 23.57 $ — 5.17 |
Outstanding RSU activity | The Company’s outstanding RSUs as of June 30, 2018 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, 2017 5.6 Granted 3.8 Settled (0.7 ) Cancelled (1.2 ) Outstanding at June 30, 2018 7.5 Vested and expected to vest at June 30, 2018 6.1 $ 84.5 3.12 |
Outstanding and non-vested RSU activity | The Company’s outstanding and non-vested RSUs as of June 30, 2018 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, 2017 5.3 $ 21.76 Granted 3.8 16.53 Vested (0.7 ) 16.40 Cancelled (1.2 ) 20.94 Outstanding and nonvested at June 30, 2018 7.2 $ 19.57 |
NET (LOSS) INCOME ATTRIBUTABL55
NET (LOSS) INCOME ATTRIBUTABLE TO COTY INC. PER COMMON SHARE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 2016 Net (loss) income attributable to Coty Inc. $ (168.8 ) $ (422.2 ) $ 156.9 Weighted-average common shares outstanding—Basic 749.7 642.8 345.5 Effect of dilutive stock options and Series A Preferred Stock (a) — — 5.7 Effect of restricted stock and RSUs (b) — — 3.0 Weighted-average common shares outstanding—Diluted 749.7 642.8 354.2 Net (loss) income attributable to Coty Inc. per common share: Basic $ (0.23 ) $ (0.66 ) $ 0.45 Diluted (0.23 ) (0.66 ) 0.44 (a) As of June 30, 2018 and 2017 , outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase shares of common stock were excluded in the computation of diluted loss per share due to the net loss incurred during the period. As of June 30, 2016 , outstanding stock options and Series A Preferred Stock to purchase 3.0 million shares of Common Stock are excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. (b) As of June 30, 2018 and 2017 , RSUs were excluded in the computation of diluted loss per share due to the net loss incurred during the period. As of June 30, 2016 , there were 0.1 million anti-dilutive RSUs excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. |
SUMMARY OF SIGNIFICANT ACCOUN56
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property Plant and Equipment (Details) | 12 Months Ended |
Jun. 30, 2018 | |
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 | 3 years |
Marketing furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 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 ACCOUN57
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Finite Lived Intangible Assets (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 21 years |
License agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 24 years 7 months 6 days |
License agreements | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 5 years |
License agreements | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 34 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 15 years 10 months 24 days |
Customer relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 2 years |
Customer relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 28 years |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 22 years |
Trademarks | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 2 years |
Trademarks | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 30 years |
Product formulations and technology | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 10 years 6 months |
Product formulations and technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 3 years |
Product formulations and technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 29 years |
SUMMARY OF SIGNIFICANT ACCOUN58
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 12 Months Ended | |||||
Jun. 30, 2018USD ($)unit | Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Significant Accounting Policies [Line Items] | ||||||
Foreign earnings repatriated | $ 4,500,000,000 | |||||
Restricted cash | $ 30,600,000 | $ 30,600,000 | 30,600,000 | $ 30,600,000 | $ 35,300,000 | |
Number of reporting units | 3 | 3 | ||||
Sales returns, percentage | 2.00% | 2.00% | 3.00% | |||
Trade spending activities, percentage | 8.00% | 7.00% | 8.00% | |||
Advertising expense | 2,206,300,000 | $ 1,883,300,000 | $ 967,600,000 | |||
Depreciation and amortization | 384,200,000 | 280,000,000 | 152,400,000 | |||
Research and development expense | 174,600,000 | 139,200,000 | 47,700,000 | |||
Deferred financing fees | $ 86,200,000 | $ 86,200,000 | 86,200,000 | $ 86,200,000 | 67,600,000 | |
Cumulative effect of new accounting principle in period of adoption | 8,300,000 | |||||
Payments related to tax withholding for share-based compensation | 3,600,000 | |||||
Operating Income (Loss) | ||||||
Significant Accounting Policies [Line Items] | ||||||
Net losses (gains) from foreign currency exchange transactions | 3,900,000 | 1,500,000 | 7,200,000 | |||
Interest Expense, Net and Other Expense (Income), Net | ||||||
Significant Accounting Policies [Line Items] | ||||||
Net losses (gains) from foreign currency exchange transactions | 8,500,000 | (12,800,000) | 19,200,000 | |||
Other Expense, Net | ||||||
Significant Accounting Policies [Line Items] | ||||||
Net losses (gains) from foreign currency exchange transactions | 0 | 1,700,000 | 29,400,000 | |||
Marketing furniture and fixtures | ||||||
Significant Accounting Policies [Line Items] | ||||||
Depreciation and amortization | 120,900,000 | 107,400,000 | $ 65,000,000 | |||
Accumulated Deficit | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cumulative effect of new accounting principle in period of adoption | $ (6,500,000) | $ (6,500,000) | (6,500,000) | $ (6,500,000) | $ 8,300,000 | |
Pro Forma | Accounting Standards Update 2014-09 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Revenues | $ 25,200,000 |
BUSINESS COMBINATIONS - P&G Bea
BUSINESS COMBINATIONS - P&G Beauty Business Acquisition (Details) - USD ($) shares in Millions, $ in Millions | Oct. 01, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 8,607.1 | $ 8,555.5 | $ 2,212.7 | |
Galleria | ||||
Business Acquisition [Line Items] | ||||
Total consideration to acquire business | $ 11,570.4 | |||
Total equity consideration transferred | 9,628.6 | |||
Amount of assumed debt | $ 1,941.8 | |||
Goodwill | 5,563.9 | $ 5,528.4 | ||
Galleria | Majority Shareholders | Pre-Merger Holders of Galleria Common Stock | ||||
Business Acquisition [Line Items] | ||||
Number of shares received by former holders of Galleria common stock (in shares) | 409.7 | |||
Galleria | Luxury | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 1,889.8 | |||
Galleria | Consumer Beauty | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 3,188.1 | |||
Galleria | Professional Beauty | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 486 |
BUSINESS COMBINATIONS - P&G Sch
BUSINESS COMBINATIONS - P&G Schedule of Allocation of Purchase Price to Net Assets Acquired (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Estimated fair value as previously reported (a) | ||||
Goodwill | $ 8,607.1 | $ 8,555.5 | $ 2,212.7 | |
Unfavorable contract liabilities | (104.1) | (113.2) | ||
Measurement period adjustments (b) | ||||
Goodwill | $ 26.5 | 444.7 | ||
Acquired finite-lived intangible assets, useful life | 21 years | |||
Trademarks | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 22 years | |||
Trademarks | Minimum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 2 years | |||
Trademarks | Maximum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 30 years | |||
Customer relationships | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 15 years 10 months 24 days | |||
Customer relationships | Minimum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 2 years | |||
Customer relationships | Maximum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 28 years | |||
License agreements | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 24 years 7 months 6 days | |||
License agreements | Minimum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 5 years | |||
License agreements | Maximum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 34 years | |||
Product formulations and technology | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 10 years 6 months | |||
Product formulations and technology | Minimum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 3 years | |||
Product formulations and technology | Maximum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 29 years | |||
Galleria | ||||
Estimated fair value as previously reported (a) | ||||
Cash and cash equivalents | $ 387.6 | 387.6 | ||
Inventories | 465.5 | 465.5 | ||
Property, plant and equipment | 726 | 742.9 | ||
Goodwill | 5,563.9 | 5,528.4 | ||
Other net working capital | (23.2) | (23.2) | ||
Net other assets | 30.9 | 64.6 | ||
Unfavorable contract liabilities | (130) | (130) | ||
Pension liabilities | (404.1) | (404.1) | ||
Deferred tax liability, net | (946.7) | (941) | ||
Total equity value | $ 11,570.4 | 11,570.4 | ||
Measurement period adjustments (b) | ||||
Cash and cash equivalents | $ 0 | |||
Inventories | 0 | |||
Property, plant and equipment | (16.9) | |||
Goodwill | 35.5 | |||
Other net working capital | 0 | |||
Net other assets | (33.7) | |||
Unfavorable contract liabilities | 0 | |||
Pension liabilities | 0 | |||
Deferred tax liability, net | (5.7) | |||
Total purchase price | 0 | |||
Galleria | Minimum | ||||
Measurement period adjustments (b) | ||||
Property, plant and equipment, estimated useful life | 3 years | |||
Galleria | Maximum | ||||
Measurement period adjustments (b) | ||||
Property, plant and equipment, estimated useful life | 40 years | |||
Galleria | Trademarks | ||||
Estimated fair value as previously reported (a) | ||||
Finite-lived intangible assets | $ 747.7 | 747.7 | ||
Measurement period adjustments (b) | ||||
Intangibles | 0 | |||
Galleria | Trademarks | Minimum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 10 years | |||
Galleria | Trademarks | Maximum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 30 years | |||
Galleria | Customer relationships | ||||
Estimated fair value as previously reported (a) | ||||
Finite-lived intangible assets | $ 1,093 | 1,074.2 | ||
Measurement period adjustments (b) | ||||
Intangibles | 18.8 | |||
Galleria | Customer relationships | Minimum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 2 years | |||
Galleria | Customer relationships | Maximum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 26 years | |||
Galleria | License agreements | ||||
Estimated fair value as previously reported (a) | ||||
Finite-lived intangible assets | $ 2,311 | 2,299 | ||
Measurement period adjustments (b) | ||||
Intangibles | 12 | |||
Galleria | License agreements | Minimum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 4 years | |||
Galleria | License agreements | Maximum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 30 years | |||
Galleria | Trademarks, customer relationships, and license agreements | ||||
Measurement period adjustments (b) | ||||
Intangibles | 20.8 | |||
Galleria | Product formulations and technology | ||||
Estimated fair value as previously reported (a) | ||||
Finite-lived intangible assets | $ 173.8 | 183.8 | ||
Measurement period adjustments (b) | ||||
Intangibles | (10) | |||
Galleria | Product formulations and technology | Minimum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 5 years | |||
Galleria | Product formulations and technology | Maximum | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 28 years | |||
Galleria | Trademarks | ||||
Estimated fair value as previously reported (a) | ||||
Indefinite-lived other intangibles assets | $ 1,575 | $ 1,575 | ||
Measurement period adjustments (b) | ||||
Intangibles | $ 0 |
BUSINESS COMBINATIONS - ghd Acq
BUSINESS COMBINATIONS - ghd Acquisition (Details) £ in Millions | Nov. 21, 2016USD ($) | Nov. 21, 2016GBP (£) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 8,607,100,000 | $ 8,555,500,000 | $ 2,212,700,000 | ||
ghd | |||||
Business Acquisition [Line Items] | |||||
Net assets acquired (percent) | 100.00% | 100.00% | |||
Total consideration to acquire business | $ 531,500,000 | £ 430.2 | |||
Goodwill to be tax deductible | 0 | ||||
Goodwill | 199,000,000 | $ 174,400,000 | |||
Luxury | ghd | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 49,000,000 | ||||
Consumer Beauty | ghd | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 42,000,000 | ||||
Professional Beauty | ghd | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 108,000,000 |
BUSINESS COMBINATIONS - ghd Sch
BUSINESS COMBINATIONS - ghd Schedule of Allocation of Purchase Price to Net Assets Acquired (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Estimated fair value as previously reported (a) | ||||
Goodwill | $ 8,607.1 | $ 8,555.5 | $ 2,212.7 | |
Measurement period adjustments (b) | ||||
Goodwill | $ 26.5 | 444.7 | ||
Acquired finite-lived intangible assets, useful life | 21 years | |||
Customer relationships | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 15 years 10 months 24 days | |||
ghd | ||||
Estimated fair value as previously reported (a) | ||||
Cash and cash equivalents | $ 7.1 | 7.1 | ||
Inventories | 79.6 | 79.6 | ||
Property, plant and equipment | 10 | 10 | ||
Goodwill | 199 | 174.4 | ||
Other net working capital | (11.9) | (16.6) | ||
Net other assets | 0 | 0.9 | ||
Deferred tax liability, net | (58) | (63.9) | ||
Total equity value | 538.5 | 538.5 | ||
Measurement period adjustments (b) | ||||
Cash and cash equivalents | $ 0 | |||
Inventories | 0 | |||
Property, plant and equipment | 0 | |||
Goodwill | 24.6 | |||
Other net working capital | 4.7 | |||
Net other assets | (0.9) | |||
Deferred tax liability, net | 5.9 | |||
Total purchase price | 0 | |||
ghd | Customer relationships | ||||
Estimated fair value as previously reported (a) | ||||
Finite-lived intangible assets | 34.3 | 36.6 | ||
Measurement period adjustments (b) | ||||
Intangibles | (2.3) | |||
ghd | Technology | ||||
Estimated fair value as previously reported (a) | ||||
Finite-lived intangible assets | 129.4 | 146.6 | ||
Measurement period adjustments (b) | ||||
Intangibles | (17.2) | |||
ghd | Other Intangible Assets | ||||
Estimated fair value as previously reported (a) | ||||
Indefinite-lived other intangibles assets | $ 149 | $ 163.8 | ||
Measurement period adjustments (b) | ||||
Intangibles | $ (14.8) | |||
Minimum | Customer relationships | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 2 years | |||
Minimum | ghd | ||||
Measurement period adjustments (b) | ||||
Property, plant and equipment, estimated useful life | 3 years | |||
Minimum | ghd | Customer relationships | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 11 years | |||
Minimum | ghd | Technology | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 11 years | |||
Maximum | Customer relationships | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 28 years | |||
Maximum | ghd | ||||
Measurement period adjustments (b) | ||||
Property, plant and equipment, estimated useful life | 10 years | |||
Maximum | ghd | Customer relationships | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 25 years | |||
Maximum | ghd | Technology | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 17 years |
BUSINESS COMBINATIONS - Youniqu
BUSINESS COMBINATIONS - Younique Acquisition (Details) - USD ($) $ in Millions | Feb. 01, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 8,607.1 | $ 8,555.5 | $ 2,212.7 | |
Foundation, LLC | ||||
Business Acquisition [Line Items] | ||||
Net assets acquired (percent) | 60.00% | 59.40% | ||
Total consideration to acquire business | $ 600 | |||
Additional payment for working capital adjustments expected to be paid in the future | $ 7.5 | |||
Foundation, LLC | Younique, LLC | ||||
Business Acquisition [Line Items] | ||||
Net assets acquired (percent) | 40.00% | |||
Total consideration to acquire business | $ 607.5 | |||
Business acquisition, equity interest issued or issuable, percentage | 100.00% | |||
Younique, LLC | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 575 | $ 575.3 | ||
Luxury | Younique, LLC | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 95 | |||
Consumer Beauty | Younique, LLC | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 420 | |||
Professional Beauty | Younique, LLC | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 60 |
BUSINESS COMBINATIONS - Youni64
BUSINESS COMBINATIONS - Younique Schedule of Allocation of Purchase Price to Net Assets Acquired (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Estimated fair value as previously reported (a) | ||||
Goodwill | $ 8,607.1 | $ 8,555.5 | $ 2,212.7 | |
Measurement period adjustments (b) | ||||
Goodwill | $ 26.5 | 444.7 | ||
Acquired finite-lived intangible assets, useful life | 21 years | |||
Younique, LLC | ||||
Estimated fair value as previously reported (a) | ||||
Cash and cash equivalents | $ 17.5 | 17.5 | ||
Inventories | 88.1 | 88.1 | ||
Property, plant and equipment | 67.1 | 67.1 | ||
Goodwill | 575 | 575.3 | ||
Other net working capital | (27.4) | (27.7) | ||
Short-term and long-term debt | (1.2) | (1.2) | ||
Total equity value | 1,039.7 | 1,039.7 | ||
Redeemable noncontrolling interest | 415.9 | 415.9 | ||
Net cash and debt acquired | 16.3 | 16.3 | ||
Total purchase price | $ 607.5 | 607.5 | ||
Measurement period adjustments (b) | ||||
Cash and cash equivalents | $ 0 | |||
Inventories | 0 | |||
Property, plant and equipment | 0 | |||
Goodwill | (0.3) | |||
Other net working capital | 0.3 | |||
Short-term and long-term debt | 0 | |||
Total purchase price | 0 | |||
Redeemable noncontrolling interest | 0 | |||
Net cash and debt acquired | 0 | |||
Total purchase price | 0 | |||
Trademarks | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 22 years | |||
Trademarks | Younique, LLC | ||||
Estimated fair value as previously reported (a) | ||||
Finite-lived intangible assets | $ 123 | 123 | ||
Measurement period adjustments (b) | ||||
Intangibles | 0 | |||
Acquired finite-lived intangible assets, useful life | 20 years | |||
Product formulations and technology | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 10 years 6 months | |||
Product formulations and technology | Younique, LLC | ||||
Estimated fair value as previously reported (a) | ||||
Finite-lived intangible assets | $ 0.6 | 0.6 | ||
Measurement period adjustments (b) | ||||
Intangibles | 0 | |||
Acquired finite-lived intangible assets, useful life | 5 years | |||
Customer relationships | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 15 years 10 months 24 days | |||
Customer relationships | Younique, LLC | ||||
Estimated fair value as previously reported (a) | ||||
Finite-lived intangible assets | $ 197 | $ 197 | ||
Measurement period adjustments (b) | ||||
Intangibles | $ 0 | |||
Minimum | Younique, LLC | ||||
Measurement period adjustments (b) | ||||
Property, plant and equipment, estimated useful life | 3 years | |||
Minimum | Trademarks | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 2 years | |||
Minimum | Product formulations and technology | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 3 years | |||
Minimum | Customer relationships | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 2 years | |||
Minimum | Customer relationships | Younique, LLC | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 7 years | |||
Maximum | Younique, LLC | ||||
Measurement period adjustments (b) | ||||
Property, plant and equipment, estimated useful life | 8 years | |||
Maximum | Trademarks | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 30 years | |||
Maximum | Product formulations and technology | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 29 years | |||
Maximum | Customer relationships | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 28 years | |||
Maximum | Customer relationships | Younique, LLC | ||||
Measurement period adjustments (b) | ||||
Acquired finite-lived intangible assets, useful life | 10 years |
BUSINESS COMBINATIONS - Burberr
BUSINESS COMBINATIONS - Burberry Business Acquisition (Details) $ in Millions | Oct. 02, 2017USD ($) | Oct. 02, 2017GBP (£) | Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2017USD ($) | Oct. 02, 2017GBP (£) | Oct. 01, 2016USD ($) |
Business Acquisition [Line Items] | |||||||||
Business combination, contingent consideration, liability | $ 8.3 | $ 8.3 | $ 0 | ||||||
Business combination, contingent consideration arrangements, range of outcomes, value, low | £ | £ 0 | ||||||||
Business combination, contingent consideration arrangements, range of outcomes, value, high | £ | 16,700,000 | ||||||||
Goodwill | 8,607.1 | 8,607.1 | 8,555.5 | $ 2,212.7 | |||||
Amortization of intangible assets | 352.8 | $ 275.1 | $ 79.5 | ||||||
Burberry Beauty Business | |||||||||
Business Acquisition [Line Items] | |||||||||
Total consideration to acquire business | $ 256.3 | £ 191,700,000 | |||||||
Payments to acquire businesses, gross | 245.1 | £ 183,300,000 | |||||||
Business combination, contingent consideration, liability | $ 11.2 | £ 8,400,000 | |||||||
Contingent Consideration Payments For Business Combinations | 2.1 | ||||||||
Goodwill | $ 34.9 | 34.9 | $ 68.2 | ||||||
Revenue since acquisition | 87 | ||||||||
Earnings (loss) of acquire since acquisition | 31.3 | ||||||||
Amortization of intangible assets | $ 10.3 | ||||||||
Luxury | Burberry Beauty Business | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 23.4 | ||||||||
Consumer Beauty | Burberry Beauty Business | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | 6.2 | ||||||||
Professional Beauty | Burberry Beauty Business | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 5.3 |
BUSINESS COMBINATIONS - Burbe66
BUSINESS COMBINATIONS - Burberry Business Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 8,607.1 | $ 8,607.1 | $ 8,555.5 | $ 2,212.7 | |
Goodwill, Purchase Accounting Adjustments | 26.5 | $ 444.7 | |||
Burberry Beauty Business | |||||
Business Acquisition [Line Items] | |||||
Inventories | 47.9 | 47.9 | $ 55.1 | ||
Inventories, purchase accounting adjustments | (7.2) | ||||
Property, plant and equipment | 5.8 | 5.8 | 5.8 | ||
License and distribution rights | 177.8 | 177.8 | 129.7 | ||
Intangibles, purchase accounting adjustments | 48.1 | ||||
Goodwill | 34.9 | 34.9 | 68.2 | ||
Goodwill, Purchase Accounting Adjustments | (33.3) | ||||
Net other liabilities | (10.1) | (10.1) | (8.7) | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 256.3 | $ 256.3 | $ 250.1 | ||
Net other liabilities, purchase accounting adjustments | (1.4) | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Adjustment, Less Noncontrolling Interest | $ 6.2 | ||||
Minimum | Burberry Beauty Business | |||||
Business Acquisition [Line Items] | |||||
Property, plant and equipment, estimated useful life | 1 year | ||||
License and distribution rights, useful life | 3 years | ||||
Maximum | Burberry Beauty Business | |||||
Business Acquisition [Line Items] | |||||
Property, plant and equipment, estimated useful life | 3 years | ||||
License and distribution rights, useful life | 15 years |
BUSINESS COMBINATIONS - Hyperma
BUSINESS COMBINATIONS - Hypermarcas Brands Acquisition (Details) - Brazilian Beauty Business R$ in Millions, $ in Millions | Feb. 01, 2016USD ($) | Feb. 01, 2016BRL (R$) | Jun. 30, 2018USD ($) |
Business Acquisition [Line Items] | |||
Net assets acquired (percent) | 100.00% | 100.00% | |
Total consideration to acquire business | $ 901.9 | R$ 3599.5 | |
Goodwill to be tax deductible | $ 500 | ||
Customer relationships | |||
Business Acquisition [Line Items] | |||
Customer relationship assets to be tax deductible | $ 44.6 |
BUSINESS COMBINATIONS - Hyper68
BUSINESS COMBINATIONS - Hypermarcas Brands Acquisition Schedule of Allocation of Purchase Price to Net Assets Acquired (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Estimated fair value as previously reported (a) | |||
Goodwill | $ 8,607.1 | $ 8,555.5 | $ 2,212.7 |
Acquired finite-lived intangible assets, useful life | 21 years | ||
Brazilian Beauty Business | |||
Estimated fair value as previously reported (a) | |||
Cash and cash equivalents | $ 11.1 | ||
Inventories | 45.6 | ||
Property, plant and equipment | 95.4 | ||
Goodwill | 537.1 | ||
Other net working capital | 0.7 | ||
Net other assets | 1.4 | ||
Deferred tax liability, net | (4.2) | ||
Total equity value | 901.9 | ||
Trademarks | Brazilian Beauty Business | |||
Estimated fair value as previously reported (a) | |||
Indefinite-lived other intangibles assets | $ 147.1 | ||
Trademarks | |||
Estimated fair value as previously reported (a) | |||
Acquired finite-lived intangible assets, useful life | 22 years | ||
Trademarks | Brazilian Beauty Business | |||
Estimated fair value as previously reported (a) | |||
Finite-lived intangible assets | $ 10.3 | ||
Customer relationships | |||
Estimated fair value as previously reported (a) | |||
Acquired finite-lived intangible assets, useful life | 15 years 10 months 24 days | ||
Customer relationships | Brazilian Beauty Business | |||
Estimated fair value as previously reported (a) | |||
Finite-lived intangible assets | $ 44.6 | ||
Product formulations and technology | |||
Estimated fair value as previously reported (a) | |||
Acquired finite-lived intangible assets, useful life | 10 years 6 months | ||
Product formulations and technology | Brazilian Beauty Business | |||
Estimated fair value as previously reported (a) | |||
Finite-lived intangible assets | $ 12.8 | ||
Acquired finite-lived intangible assets, useful life | 3 years | ||
Minimum | Brazilian Beauty Business | |||
Estimated fair value as previously reported (a) | |||
Property, plant and equipment, estimated useful life | 2 years | ||
Minimum | Trademarks | |||
Estimated fair value as previously reported (a) | |||
Acquired finite-lived intangible assets, useful life | 2 years | ||
Minimum | Trademarks | Brazilian Beauty Business | |||
Estimated fair value as previously reported (a) | |||
Acquired finite-lived intangible assets, useful life | 5 years | ||
Minimum | Customer relationships | |||
Estimated fair value as previously reported (a) | |||
Acquired finite-lived intangible assets, useful life | 2 years | ||
Minimum | Customer relationships | Brazilian Beauty Business | |||
Estimated fair value as previously reported (a) | |||
Acquired finite-lived intangible assets, useful life | 13 years | ||
Minimum | Product formulations and technology | |||
Estimated fair value as previously reported (a) | |||
Acquired finite-lived intangible assets, useful life | 3 years | ||
Maximum | Brazilian Beauty Business | |||
Estimated fair value as previously reported (a) | |||
Property, plant and equipment, estimated useful life | 40 years | ||
Maximum | Trademarks | |||
Estimated fair value as previously reported (a) | |||
Acquired finite-lived intangible assets, useful life | 30 years | ||
Maximum | Trademarks | Brazilian Beauty Business | |||
Estimated fair value as previously reported (a) | |||
Acquired finite-lived intangible assets, useful life | 15 years | ||
Maximum | Customer relationships | |||
Estimated fair value as previously reported (a) | |||
Acquired finite-lived intangible assets, useful life | 28 years | ||
Maximum | Customer relationships | Brazilian Beauty Business | |||
Estimated fair value as previously reported (a) | |||
Acquired finite-lived intangible assets, useful life | 28 years | ||
Maximum | Product formulations and technology | |||
Estimated fair value as previously reported (a) | |||
Acquired finite-lived intangible assets, useful life | 29 years |
BUSINESS COMBINATIONS - Pro For
BUSINESS COMBINATIONS - Pro Forma Schedule (Details) - Galleria - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Oct. 01, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Pro forma Net revenues | $ 8,889.2 | $ 8,219.6 | ||
Pro forma Net income (loss) | (101.2) | 171.2 | ||
Pro forma Net income attributable to Coty Inc. | $ (142.7) | $ 135.5 | ||
Pro forma Net income attributable to Coty Inc. per common share: | ||||
Basic (in dollars per share) | $ (0.19) | $ 0.18 | ||
Diluted (in dollars per share) | $ (0.19) | $ 0.18 | ||
Acquisition-related costs | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Pro forma Net income (loss) | $ (476.3) | $ (45.8) | ||
Amortization of inventory step up | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Pro forma Net income (loss) | $ (89.6) | $ (80.1) | ||
Majority Shareholders | Pre-Merger Holders of Galleria Common Stock | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Number of shares received by former holders of Galleria common stock (in shares) | 409.7 |
SEGMENT REPORTING - Reporting S
SEGMENT REPORTING - Reporting Segments (Details) $ in Millions | 12 Months Ended | ||||
Jun. 30, 2018unit | Jun. 30, 2018USD ($) | Jun. 30, 2018segment | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | segment | 3 | ||||
Number of reportable segments | 3 | 3 | |||
Net revenues | $ 9,398 | $ 7,650.3 | $ 4,349.1 | ||
Depreciation and amortization | 737 | 555.1 | 232 | ||
Operating income (loss) | 161.2 | (437.8) | 254.2 | ||
Interest expense, net | 265 | 218.6 | 81.9 | ||
Loss on early extinguishment of debt | 10.7 | 0 | 3.1 | ||
Other expense, net | 38 | 1.6 | 30.4 | ||
(Loss) income before income taxes | (152.5) | (658) | 138.8 | ||
Luxury | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 3,210.5 | 2,566.6 | 1,836.6 | ||
Consumer Beauty | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 4,268.1 | 3,688.2 | 2,262.5 | ||
Professional Beauty | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 1,919.4 | 1,395.5 | 250 | ||
Operating Segments | Luxury | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 253.3 | 203.5 | 99.1 | ||
Operating income (loss) | 248.7 | 158 | 228.9 | ||
Operating Segments | Consumer Beauty | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 340.4 | 256.2 | 114.6 | ||
Operating income (loss) | 278.9 | 261.2 | 246.5 | ||
Operating Segments | Professional Beauty | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 143.3 | 95.4 | 18 | ||
Operating income (loss) | 119.4 | 78.5 | 68 | ||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 0 | 0 | 0.3 | ||
Operating income (loss) | $ (485.8) | $ (935.5) | $ (289.2) |
SEGMENT REPORTING - Geographic
SEGMENT REPORTING - Geographic Data (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 9,398 | $ 7,650.3 | $ 4,349.1 |
Long-lived assets | 18,568 | 18,612.8 | 4,910.3 |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 2,966 | 2,506.9 | 1,413 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 4,201.6 | 3,325.7 | 1,924.6 |
ALMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 2,230.4 | 1,817.7 | 1,011.5 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 2,704.6 | 2,220.4 | 1,256 |
Long-lived assets | 7,408.5 | 7,662.4 | 2,688.7 |
Switzerland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 8,000.2 | 6,899.8 | 508 |
Brazil | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 718.2 | 863.3 | 882.7 |
All other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 2,441.1 | $ 3,187.3 | $ 830.9 |
SEGMENT REPORTING - Reportable
SEGMENT REPORTING - Reportable Segments, Product Categories Exceeding 5% Of Consolidated Net Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 9,398 | $ 7,650.3 | $ 4,349.1 |
Product Concentration Risk | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 100.00% | 100.00% | 100.00% |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 2,704.6 | $ 2,220.4 | $ 1,256 |
Luxury | Product Concentration Risk | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 36.80% | 36.10% | 46.30% |
Consumer Beauty | Product Concentration Risk | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 28.20% | 29.60% | 35.90% |
Professional Beauty | Product Concentration Risk | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 10.10% | 12.40% | 17.60% |
Hair Care | Product Concentration Risk | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 24.90% | 21.90% | 0.20% |
ACQUISITION-RELATED COSTS (Deta
ACQUISITION-RELATED COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Combinations [Abstract] | |||
Acquisition-related costs | $ 64.2 | $ 355.4 | $ 174 |
RESTRUCTURING COSTS - Restructu
RESTRUCTURING COSTS - Restructuring Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 173.2 | $ 372.2 | $ 86.9 |
Restructuring costs incurred | 3.9 | ||
Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 106.5 | 364.2 | 0 |
Restructuring charges | 122.7 | ||
Restructuring costs incurred | 470.7 | ||
Acquisition Integration Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (4.5) | 2.3 | 42.3 |
Restructuring charges | 3.3 | ||
Restructuring costs incurred | 55.4 | ||
Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 71.2 | 5.7 | $ 44.6 |
Cost of sales | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 401.4 | ||
Selling, general and administrative | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 18.9 | ||
Other Exit Costs | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 8.7 | ||
Employee Severance | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 67.5 | 333.9 | |
Third-Party Contract Terminations | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 19.3 | 22.4 | |
Restructuring charges | 21.7 | ||
Third-Party Contract Terminations | Acquisition Integration Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | ||
Third-Party Contract Terminations | Other Exit Costs | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 41.7 | ||
Facility Closing | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 14.3 | 4.6 | |
Other Restructuring | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 5.4 | $ 3.3 | |
Restructuring charges | 5.4 | ||
Other Restructuring | Acquisition Integration Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 3.3 |
RESTRUCTURING COSTS - Restruc75
RESTRUCTURING COSTS - Restructuring Roll Forward (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Effect of exchange rates | $ 0 |
Global Integration Activities | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 328.5 |
Restructuring charges | 122.7 |
Payments | (210.3) |
Change in estimates | (16.2) |
Non-cash utilization | (14.3) |
Effect of exchange rates | 12.7 |
Balance—June 30, 2018 | 223.1 |
Acquisition Integration Program | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 30.4 |
Restructuring charges | 3.3 |
Payments | (19.1) |
Change in estimates | (7.8) |
Effect of exchange rates | 0.9 |
Balance—June 30, 2018 | 7.7 |
Employee Severance And Employee Benefits | Global Integration Activities | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 310.8 |
Restructuring charges | 81.3 |
Payments | (188.5) |
Change in estimates | (13.8) |
Non-cash utilization | 0 |
Effect of exchange rates | 13.2 |
Balance—June 30, 2018 | 203 |
Employee Severance And Employee Benefits | Acquisition Integration Program | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 24.8 |
Restructuring charges | 0 |
Payments | (16.9) |
Change in estimates | (7.8) |
Effect of exchange rates | 1 |
Balance—June 30, 2018 | 1.1 |
Employee Severance | Other Restructuring 2018 | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 0 |
Restructuring charges | 63.7 |
Payments | (15.1) |
Change in estimates | (0.2) |
Non-cash utilization | 0 |
Effect of exchange rates | 0.4 |
Balance—June 30, 2018 | 48 |
Third-Party Contract Terminations | Global Integration Activities | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 14.9 |
Restructuring charges | 21.7 |
Payments | (17) |
Change in estimates | (2.4) |
Non-cash utilization | 0 |
Effect of exchange rates | (0.2) |
Balance—June 30, 2018 | 17 |
Third-Party Contract Terminations | Acquisition Integration Program | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 1.5 |
Restructuring charges | 0 |
Payments | 0 |
Change in estimates | 0 |
Effect of exchange rates | 0 |
Balance—June 30, 2018 | 1.5 |
Third-Party Contract Terminations | Other Restructuring 2018 | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 0 |
Restructuring charges | 0.2 |
Payments | 0 |
Change in estimates | 0 |
Effect of exchange rates | 0 |
Balance—June 30, 2018 | 0.2 |
Fixed Asset Write-offs | Global Integration Activities | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 0 |
Restructuring charges | 14.3 |
Payments | 0 |
Change in estimates | 0 |
Non-cash utilization | (14.3) |
Effect of exchange rates | 0 |
Balance—June 30, 2018 | 0 |
Fixed Asset Write-offs | Other Restructuring 2018 | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 0 |
Restructuring charges | 1.3 |
Payments | 0 |
Change in estimates | 0 |
Non-cash utilization | (1.3) |
Balance—June 30, 2018 | 0 |
Other Exit Costs | Other Restructuring 2018 | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 0 |
Restructuring charges | 3.4 |
Payments | (0.4) |
Change in estimates | 0 |
Non-cash utilization | 0.3 |
Effect of exchange rates | 0 |
Balance—June 30, 2018 | 3.3 |
Other Restructuring | Global Integration Activities | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 2.8 |
Restructuring charges | 5.4 |
Payments | (4.8) |
Change in estimates | 0 |
Non-cash utilization | 0 |
Effect of exchange rates | (0.3) |
Balance—June 30, 2018 | 3.1 |
Other Restructuring | Acquisition Integration Program | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 4.1 |
Restructuring charges | 3.3 |
Payments | (2.2) |
Change in estimates | 0 |
Effect of exchange rates | (0.1) |
Balance—June 30, 2018 | 5.1 |
Other Restructuring | Other Restructuring 2018 | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2017 | 0 |
Restructuring charges | 68.6 |
Payments | (15.5) |
Change in estimates | (0.2) |
Non-cash utilization | (1) |
Effect of exchange rates | 0.4 |
Balance—June 30, 2018 | $ 51.5 |
RESTRUCTURING COSTS - Narrative
RESTRUCTURING COSTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Oct. 01, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Additional restructuring charges remaining | $ 110 | ||||||
Restructuring costs incurred | $ 3.9 | ||||||
Restructuring and related activities, period | 2 years | ||||||
Curtailment gain | $ 10.3 | $ 2.2 | $ 1.8 | ||||
Global Integration Activities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring accrual | 223.1 | 328.5 | |||||
Cash expenditures | 210.3 | ||||||
Restructuring charges | 122.7 | ||||||
Restructuring costs incurred | 470.7 | ||||||
Global Integration Activities | Scenario, Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash expenditures | $ 4.4 | $ 16.1 | $ 202.6 | ||||
Acquisition Integration Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring accrual | 7.7 | 30.4 | |||||
Cash expenditures | 19.1 | ||||||
Restructuring charges | 3.3 | ||||||
Restructuring costs incurred | 55.4 | ||||||
Curtailment gain | 1.8 | ||||||
Acquisition Integration Program | Scenario, Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash expenditures | 2.9 | 2.3 | 2.5 | ||||
Other Restructuring 2018 | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs incurred | $ 68.4 | ||||||
Restructuring and related activities, period | 2 years | ||||||
Restructuring and related cost, expected cost | $ 9 | ||||||
Other Restructuring 2018 | Scenario, Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash expenditures | 0.8 | 1.8 | 48.9 | ||||
Other Restructuring, Integrate Chain and Selling Activities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring accrual | 1.7 | 10.1 | |||||
Restructuring charges | (2) | 5.7 | $ 44.6 | ||||
Other Restructuring Programs, Assumed Proctor and Gable Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring accrual | 7 | ||||||
Restructuring charges | 0.9 | 0 | |||||
Restructuring costs incurred | $ 21.7 | ||||||
Other Restructuring Programs, Assumed Proctor and Gable Restructuring | Scenario, Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cash expenditures | $ 0.7 | $ 2.1 | $ 4.2 | ||||
Selling, general and administrative | Global Integration Activities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 18.9 | ||||||
Other Restructuring | Global Integration Activities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring accrual | 3.1 | 2.8 | |||||
Cash expenditures | 4.8 | ||||||
Restructuring charges | 5.4 | ||||||
Other Restructuring | Acquisition Integration Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring accrual | 5.1 | 4.1 | |||||
Cash expenditures | 2.2 | ||||||
Restructuring charges | 3.3 | ||||||
Other Restructuring | Other Restructuring 2018 | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring accrual | 51.5 | $ 0 | |||||
Cash expenditures | 15.5 | ||||||
Restructuring charges | $ 68.6 |
TRADE RECEIVABLES - FACTORING (
TRADE RECEIVABLES - FACTORING (Details) - Factored Receivable - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables, factored | $ 300.1 | $ 344.9 | |
Trade receivables, factoring fees | 0.6 | 0.7 | $ 0.8 |
Trade Receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade receivables, factored, amounts due from factors | $ 9.9 | $ 16.8 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 278.6 | $ 256.4 |
Work-in-process | 21.8 | 33.4 |
Finished goods | 848.5 | 762.8 |
Total inventories | $ 1,148.9 | $ 1,052.6 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 2,981.6 | $ 2,675.5 | |
Accumulated depreciation and amortization | (1,300.8) | (1,043.4) | |
Property and equipment, net | 1,680.8 | 1,632.1 | |
Depreciation and amortization | 384.2 | 280 | $ 152.4 |
Asset impairment charges | 15.6 | ||
Land, buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 671.2 | 646.1 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 866.3 | 851.5 | |
Marketing furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 514.2 | 432.8 | |
Depreciation and amortization | 120.9 | 107.4 | $ 65 |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 699.1 | 459 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 230.8 | $ 286.1 |
GOODWILL AND OTHER INTANGIBLE80
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | |
Asset impairment charges | $ 0 | 0 | $ 5,500,000 |
Weighted-average remaining lives | 21 years | ||
Amortization of intangible assets | $ 352,800,000 | 275,100,000 | 79,500,000 |
Minimum | |||
Business Acquisition [Line Items] | |||
Renewal term | 2 years | ||
Maximum | |||
Business Acquisition [Line Items] | |||
Renewal term | 10 years | ||
Customer relationships | |||
Business Acquisition [Line Items] | |||
Asset impairment charges | 5,500,000 | ||
Weighted-average remaining lives | 15 years 10 months 24 days | ||
Customer relationships | Minimum | |||
Business Acquisition [Line Items] | |||
Weighted-average remaining lives | 2 years | ||
Customer relationships | Maximum | |||
Business Acquisition [Line Items] | |||
Weighted-average remaining lives | 28 years | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Playboy And Cerruti | |||
Business Acquisition [Line Items] | |||
Disposal Group, Including Discontinued Operation, Licenses | $ 26,200,000 | ||
Total purchase price | 33,000,000 | ||
Goodwill | 12,300,000 | ||
Gain on asset sale | (28,600,000) | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | J.Lo | |||
Business Acquisition [Line Items] | |||
Total purchase price | 10,500,000 | ||
Goodwill | 2,400,000 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Cutex Brand | |||
Business Acquisition [Line Items] | |||
Total purchase price | 29,200,000 | ||
Goodwill | 4,200,000 | ||
Gain on asset sale | $ 28,600,000 | $ (3,100,000) | $ (24,800,000) |
GOODWILL AND OTHER INTANGIBLE81
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill [Roll Forward] | |||
Gross balance | $ 9,196.3 | $ 2,853.5 | |
Accumulated impairments | (640.8) | (640.8) | $ (640.8) |
Beginning balance | 8,555.5 | 2,212.7 | |
Acquisitions | 70.8 | 5,816.8 | |
Goodwill, Purchase Accounting Adjustments | 26.5 | 444.7 | |
Foreign currency translation | (33.4) | 83.7 | |
Disposition | (12.3) | (2.4) | |
Gross balance | 9,247.9 | 9,196.3 | |
Accumulated impairments | (640.8) | (640.8) | |
Ending balance | 8,607.1 | 8,555.5 | |
Operating Segments | Luxury | |||
Goodwill [Roll Forward] | |||
Gross balance | 3,496.8 | 1,294.5 | |
Accumulated impairments | (403.7) | (403.7) | (403.7) |
Beginning balance | 3,093.1 | 890.8 | |
Acquisitions | 68.2 | 1,866.1 | |
Goodwill, Purchase Accounting Adjustments | (185) | 308 | |
Foreign currency translation | (10.3) | 28.2 | |
Disposition | (3.1) | 0 | |
Gross balance | 3,366.6 | 3,496.8 | |
Accumulated impairments | (403.7) | (403.7) | |
Ending balance | 2,962.9 | 3,093.1 | |
Operating Segments | Consumer Beauty | |||
Goodwill [Roll Forward] | |||
Gross balance | 4,732 | 1,288.2 | |
Accumulated impairments | (237.1) | (237.1) | (237.1) |
Beginning balance | 4,494.9 | 1,051.1 | |
Acquisitions | 0 | 3,285.2 | |
Goodwill, Purchase Accounting Adjustments | 228.8 | 124.7 | |
Foreign currency translation | (24.1) | 36.3 | |
Disposition | (9.2) | (2.4) | |
Gross balance | 4,927.5 | 4,732 | |
Accumulated impairments | (237.1) | (237.1) | |
Ending balance | 4,690.4 | 4,494.9 | |
Operating Segments | Professional Beauty | |||
Goodwill [Roll Forward] | |||
Gross balance | 967.5 | 270.8 | |
Accumulated impairments | 0 | 0 | $ 0 |
Beginning balance | 967.5 | 270.8 | |
Acquisitions | 2.6 | 665.5 | |
Goodwill, Purchase Accounting Adjustments | (17.3) | 12 | |
Foreign currency translation | 1 | 19.2 | |
Disposition | 0 | 0 | |
Gross balance | 953.8 | 967.5 | |
Accumulated impairments | 0 | 0 | |
Ending balance | $ 953.8 | $ 967.5 |
GOODWILL AND OTHER INTANGIBLE82
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Other intangible assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Indefinite-lived other intangible assets | $ 3,186.2 | $ 3,186.9 | $ 1,417 |
Finite-lived other intangible assets, net | 5,098.2 | 5,238.3 | |
Total Other intangible assets, net | $ 8,284.4 | $ 8,425.2 |
GOODWILL AND OTHER INTANGIBLE83
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, 2018 | Jun. 30, 2017 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross balance | $ 3,384.7 | $ 1,614.8 |
Accumulated impairments | (197.8) | (197.8) |
Beginning balance | 3,186.9 | 1,417 |
Acquisitions | 2,053.8 | |
Measurement period adjustments | (14.8) | (315) |
Foreign currency translation | 14.1 | 31.1 |
Gross balance | 3,384 | 3,384.7 |
Accumulated impairments | (197.8) | (197.8) |
Ending balance | 3,186.2 | 3,186.9 |
Operating Segments | Luxury | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross balance | 409.8 | 401.2 |
Accumulated impairments | (118.8) | (118.8) |
Beginning balance | 291 | 282.4 |
Acquisitions | 0 | |
Measurement period adjustments | 0 | 0 |
Foreign currency translation | 4.8 | 8.6 |
Gross balance | 414.6 | 409.8 |
Accumulated impairments | (118.8) | (118.8) |
Ending balance | 295.8 | 291 |
Operating Segments | Consumer Beauty | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross balance | 1,696.4 | 551.5 |
Accumulated impairments | (75.9) | (75.9) |
Beginning balance | 1,620.5 | 475.6 |
Acquisitions | 1,390 | |
Measurement period adjustments | 0 | (255) |
Foreign currency translation | 6.7 | 9.9 |
Gross balance | 1,703.1 | 1,696.4 |
Accumulated impairments | (75.9) | (75.9) |
Ending balance | 1,627.2 | 1,620.5 |
Operating Segments | Professional Beauty | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross balance | 1,278.5 | 662.1 |
Accumulated impairments | (3.1) | (3.1) |
Beginning balance | 1,275.4 | 659 |
Acquisitions | 663.8 | |
Measurement period adjustments | (14.8) | (60) |
Foreign currency translation | 2.6 | 12.6 |
Gross balance | 1,266.3 | 1,278.5 |
Accumulated impairments | (3.1) | (3.1) |
Ending balance | $ 1,263.2 | $ 1,275.4 |
GOODWILL AND OTHER INTANGIBLE84
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of intangible assets subject to amortization (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 6,686.5 | $ 6,476.1 |
Accumulated Amortization | (1,582.4) | (1,232.3) |
Accumulated Impairment | (5.9) | (5.5) |
Net | 5,098.2 | 5,238.3 |
License agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 3,362.7 | 3,148.4 |
Accumulated Amortization | (792.9) | (653.3) |
Accumulated Impairment | 0 | 0 |
Net | 2,569.8 | 2,495.1 |
Intangible assets acquired | 171.1 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,960.5 | 1,937.3 |
Accumulated Amortization | (508.7) | (375) |
Accumulated Impairment | (5.5) | (5.5) |
Net | 1,446.3 | 1,556.8 |
Intangible assets acquired | 6.7 | |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,002.1 | 1,001.1 |
Accumulated Amortization | (185.5) | (141) |
Accumulated Impairment | (0.4) | 0 |
Net | 816.2 | 860.1 |
Product formulations and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 361.2 | 389.3 |
Accumulated Amortization | (95.3) | (63) |
Accumulated Impairment | 0 | 0 |
Net | $ 265.9 | $ 326.3 |
GOODWILL AND OTHER INTANGIBLE85
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of weighted average remaining lives of intangible assets subject to amortization (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 21 years |
License agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 24 years 7 months 6 days |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 15 years 10 months 24 days |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 22 years |
Product formulations and technology | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 10 years 6 months |
GOODWILL AND OTHER INTANGIBLE86
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Amortization expense (Details) $ in Millions | Jun. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 353.9 |
2,020 | 349.1 |
2,021 | 344.8 |
2,022 | 326.5 |
2,023 | $ 304.4 |
ACCRUED EXPENSES AND OTHER CU87
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Payables and Accruals [Abstract] | ||
Advertising, marketing and licensing | $ 435.5 | $ 445.1 |
Compensation and other compensation related benefits | 333.1 | 328.2 |
Customer returns, discounts, allowances and bonuses | 328.2 | 307.3 |
Restructuring costs | 263.8 | 301 |
VAT, sales and other non-income taxes | 134.5 | 97.7 |
Mandatorily redeemable financial instrument liability (See Note 19) | 46.6 | 8.1 |
Auditing, consulting, legal and litigation accruals | 34.1 | 32.6 |
Interest | 31.5 | 17.8 |
Deferred income | 25.5 | 15.8 |
Tax indemnity liability | 21.1 | 38 |
Unfavorable contract liability | 11.3 | 11 |
Acquisition-related costs | 1.3 | 23.5 |
Other | 177.9 | 170.3 |
Total accrued expenses and other current liabilities | $ 1,844.4 | $ 1,796.4 |
OTHER NONCURRENT LIABILITIES (D
OTHER NONCURRENT LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Noncurrent income tax liabilities | $ 137.7 | $ 154.2 |
Unfavorable contract liabilities | 104.1 | 113.2 |
Deferred rent | 54.2 | 49 |
Restructuring costs | 31.1 | 82.3 |
Burberry contingent consideration | 8.3 | 0 |
Mandatorily redeemable financial instrument liability | 6.7 | 46.4 |
Other | 46.4 | 28.3 |
Total other noncurrent liabilities | $ 388.5 | $ 473.4 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Millions | Apr. 05, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Debt Instrument [Line Items] | |||
Short-term debt | $ 9.2 | $ 3.7 | |
Long term debt | 7,612.4 | ||
Other long-term debt and capital lease obligations | 1.6 | 1.7 | |
Total debt | 7,623.2 | 7,215.6 | |
Less: Short-term debt and current portion of long-term debt | (218.9) | (209.1) | |
Total Long-term debt | 7,404.3 | 7,006.5 | |
Less: Unamortized debt issuance costs | (86.2) | (67.6) | |
Less: Discount on Long-term debt | (12.7) | (10.6) | |
Total Long-term debt, net | 7,305.4 | 6,928.3 | |
Line of Credit | Revolving credit facility | 2018 Coty Revolving Credit Facility due April 2023 | |||
Debt Instrument [Line Items] | |||
Long term debt | 368.1 | 0 | |
Less: Unamortized debt issuance costs | (31.4) | ||
Line of Credit | Revolving credit facility | Galleria Revolving Credit Facility due September 2021 | |||
Debt Instrument [Line Items] | |||
Long term debt | 0 | 0 | |
Unamortized debt issuance cost | 4.2 | ||
Line of Credit | Revolving credit facility | Coty Revolving Credit Facility due October 2020 | |||
Debt Instrument [Line Items] | |||
Long term debt | 0 | 810 | |
Less: Unamortized debt issuance costs | (17.5) | ||
Line of Credit | Term Loan | 2018 Coty Term A Facility due April 2023 | |||
Debt Instrument [Line Items] | |||
Long term debt | 3,371.5 | 0 | |
Less: Unamortized debt issuance costs | (29.2) | ||
Line of Credit | Term Loan | 2018 Coty Term B Facility due April 2025 | |||
Debt Instrument [Line Items] | |||
Long term debt | 2,390.5 | 0 | |
Less: Unamortized debt issuance costs | (10.9) | ||
Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | |||
Debt Instrument [Line Items] | |||
Long term debt | 0 | 944.3 | |
Less: Unamortized debt issuance costs | (2.7) | ||
Line of Credit | Term Loan | Galleria Term Loan B Facility due September 2023 | |||
Debt Instrument [Line Items] | |||
Long term debt | 0 | 1,000 | |
Less: Unamortized debt issuance costs | (3) | ||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | |||
Debt Instrument [Line Items] | |||
Long term debt | 0 | 1,792.8 | |
Less: Unamortized debt issuance costs | (33.2) | ||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2021 | |||
Debt Instrument [Line Items] | |||
Long term debt | 0 | 950.6 | |
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | |||
Debt Instrument [Line Items] | |||
Long term debt | 0 | 1,712.5 | |
Less: Unamortized debt issuance costs | (11.3) | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Redemption Price, percentage | 100.00% | ||
Senior Notes | 2026 Dollar Notes due April 2026 | |||
Debt Instrument [Line Items] | |||
Long term debt | 550 | 0 | |
Less: Unamortized debt issuance costs | (8.3) | ||
Senior Notes | Senior Unsecured Notes, Euro Notes, Due April 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Less: Unamortized debt issuance costs | (6.4) | ||
Senior Notes | 2023 Euro Notes due April 2023 | |||
Debt Instrument [Line Items] | |||
Long term debt | 640.9 | 0 | |
Senior Notes | 2026 Euro Notes due April 2026 | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 291.4 | $ 0 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Apr. 05, 2018USD ($) | Oct. 28, 2016USD ($) | Jan. 26, 2016USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2021 | Sep. 30, 2023 | Jun. 30, 2018EUR (€) | Apr. 05, 2018EUR (€) | Jun. 30, 2017EUR (€) | Jun. 30, 2016EUR (€) | Apr. 08, 2016EUR (€) | Oct. 27, 2015USD ($) | Oct. 27, 2015EUR (€) |
Debt Instrument [Line Items] | |||||||||||||||
Short-term debt | $ 9,200,000 | $ 3,700,000 | |||||||||||||
Weighted-average interest rate (as a percent) | 2.20% | 3.00% | 2.20% | 3.00% | |||||||||||
Deferred financing fees | $ 86,200,000 | $ 67,600,000 | |||||||||||||
Short-term Lines of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | 129,200,000 | 132,400,000 | |||||||||||||
Short-term debt | $ 4,700,000 | $ 3,200,000 | |||||||||||||
Short-term Lines of Credit | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate spread (as a percent) | 0.20% | 0.40% | |||||||||||||
Short-term Lines of Credit | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate spread (as a percent) | 10.70% | 11.20% | |||||||||||||
Letter of credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Undrawn letters of credit | $ 5,400,000 | $ 5,500,000 | |||||||||||||
Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Recognized deferred financing fees | 37,800,000 | 24,400,000 | $ 59,000,000 | ||||||||||||
Payments of debt issuance costs | 24,100,000 | ||||||||||||||
Deferred financing fees write-off | 8,700,000 | 0 | 3,100,000 | ||||||||||||
Line of Credit | Other Noncurrent Assets | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Deferred financing fees | $ 0 | 4,200,000 | |||||||||||||
Line of Credit | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum total net leverage ratio covenant | 1 | ||||||||||||||
Line of Credit | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Maximum total net leverage ratio covenant | 5.95 | ||||||||||||||
Line of Credit | 2018 Coty Term A Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | $ 1,000,000,000 | € 2,035,000,000 | |||||||||||||
Line of Credit | 2018 Coty Term B Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | $ 1,400,000,000 | € 850,000,000 | |||||||||||||
Discount percentage | 0.25% | 0.25% | |||||||||||||
Line of Credit | Letter of credit | 2018 Coty Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | $ 150,000,000 | ||||||||||||||
Line of Credit | Revolving credit facility | JPMorgan Chase NA, as Administrative Agent | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | $ 1,500,000,000 | ||||||||||||||
Line of Credit | Revolving credit facility | Coty Credit Agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | 1,500,000,000 | 1,500,000,000 | |||||||||||||
Line of Credit | Revolving credit facility | Galleria Credit Agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | 1,500,000,000 | ||||||||||||||
Line of Credit | Revolving credit facility | 2018 Coty Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | 3,250,000,000 | ||||||||||||||
Line of Credit | Swingline loans | JPMorgan Chase NA, as Administrative Agent | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | 80,000,000 | ||||||||||||||
Line of Credit | Swingline loans | 2018 Coty Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | 150,000,000 | ||||||||||||||
Line of Credit | Incurrence Incremental Facilities | 2018 Coty Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | $ 1,700,000,000 | ||||||||||||||
Total net leverage ratio | 3 | ||||||||||||||
Line of Credit | Term Loan | 2026 Dollar Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 6.50% | ||||||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Deferred financing fees | 33,200,000 | ||||||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | $ 1,750,000,000 | $ 1,750,000,000 | |||||||||||||
Repayment percentage | 1.25% | 1.25% | |||||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | Euro | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | € | € 140,000,000 | € 140,000,000 | |||||||||||||
Repayment percentage | 1.25% | 1.25% | |||||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | JPMorgan Chase NA, as Administrative Agent | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | $ 1,750,000,000 | ||||||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | JPMorgan Chase NA, as Administrative Agent | Euro | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Additional commitments under facility | € | € 140,000,000 | ||||||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Deferred financing fees | $ 11,300,000 | ||||||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | $ 600,000,000 | $ 500,000,000 | |||||||||||||
Debt discount (percentage) | 0.50% | 0.50% | 0.50% | 0.50% | |||||||||||
Repayment percentage | 0.25% | 0.25% | |||||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | Euro | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | € | € 990,000,000 | € 990,000,000 | |||||||||||||
Debt discount (percentage) | 0.50% | 0.50% | 0.50% | 0.50% | |||||||||||
Repayment percentage | 0.25% | 0.25% | |||||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | JPMorgan Chase NA, as Administrative Agent | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt discount (percentage) | 0.50% | 0.50% | |||||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | JPMorgan Chase NA, as Administrative Agent | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | $ 500,000,000 | ||||||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | JPMorgan Chase NA, as Administrative Agent | Euro | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | € | € 665,000,000 | ||||||||||||||
Additional commitments under facility | € | € 325,000,000 | ||||||||||||||
Repayment percentage | 0.25% | ||||||||||||||
Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | $ 2,000,000,000 | ||||||||||||||
Deferred financing fees | 2,700,000 | ||||||||||||||
Line of Credit | Term Loan | Incremental Term A Facility | JPMorgan Chase NA, as Administrative Agent | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Additional commitments under facility | $ 975,000,000 | ||||||||||||||
Debt instrument term | 5 years | ||||||||||||||
Line of Credit | Term Loan | Refinancing Term B USD Facility | JPMorgan Chase NA, as Administrative Agent | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 1.50% | ||||||||||||||
Line of Credit | Term Loan | Incremental Term B Facility | JPMorgan Chase NA, as Administrative Agent | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Additional commitments under facility | $ 100,000,000 | ||||||||||||||
Line of Credit | Term Loan | Galleria Term Loan B Facility due September 2023 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | 1,000,000,000 | ||||||||||||||
Deferred financing fees | 3,000,000 | ||||||||||||||
Line of Credit | Term Loan | 2023 Euro Notes | Euro | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 4.00% | ||||||||||||||
Line of Credit | Term Loan | 2026 Euro Notes | Euro | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 4.75% | ||||||||||||||
Convertible Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Deferred financing fees write-off | $ 2,000,000 | $ 0 | $ 0 | ||||||||||||
Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Redemption Price, percentage | 100.00% | ||||||||||||||
Early redemption premium, percent of outstanding principal amount | 1.00% | ||||||||||||||
Applicable margin percentage | 0.50% | ||||||||||||||
Senior Notes | 2026 Dollar Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | $ 550,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 6.50% | 6.50% | |||||||||||||
Deferred financing fees | $ 8,300,000 | ||||||||||||||
Senior Notes | 2023 Euro Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | € | € 550,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 4.00% | 4.00% | |||||||||||||
Senior Notes | 2026 Euro Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | € | € 250,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 4.75% | 4.75% | |||||||||||||
Senior Notes | Term Loan | 2026 Dollar Notes | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | $ 550,000,000 | ||||||||||||||
Senior Notes | Term Loan | 2023 Euro Notes | Euro | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | € | € 550,000,000 | ||||||||||||||
Senior Notes | Term Loan | 2026 Euro Notes | Euro | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | € | € 250,000,000 | ||||||||||||||
LIBOR | Coty Term Loan B Facility due October 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 2.25% | ||||||||||||||
LIBOR | Line of Credit | Revolving credit facility | Coty Credit Agreement | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 1.00% | 1.00% | |||||||||||||
LIBOR | Line of Credit | Revolving credit facility | Coty Credit Agreement | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 2.00% | 2.00% | |||||||||||||
LIBOR | Line of Credit | Revolving credit facility | Galleria Credit Agreement | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 1.00% | ||||||||||||||
LIBOR | Line of Credit | Revolving credit facility | Galleria Credit Agreement | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 2.00% | ||||||||||||||
LIBOR | Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | Minimum | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 1.00% | 1.00% | |||||||||||||
LIBOR | Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | Maximum | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 2.00% | 2.00% | |||||||||||||
LIBOR | Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 2.50% | ||||||||||||||
LIBOR | Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | Minimum | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 0.75% | ||||||||||||||
LIBOR | Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | Maximum | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 3.00% | ||||||||||||||
LIBOR | Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayment percentage | 1.25% | ||||||||||||||
LIBOR | Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 1.00% | ||||||||||||||
LIBOR | Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 2.00% | ||||||||||||||
LIBOR | Line of Credit | Term Loan | Refinancing Term B USD Facility | JPMorgan Chase NA, as Administrative Agent | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 2.50% | ||||||||||||||
LIBOR | Line of Credit | Term Loan | Incremental Term B Facility | JPMorgan Chase NA, as Administrative Agent | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Variable rate, minimum | 0.00% | ||||||||||||||
Deferred financing fees | $ 13,000,000 | ||||||||||||||
LIBOR | Line of Credit | Term Loan | Galleria Term Loan B Facility due September 2023 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 3.00% | ||||||||||||||
Repayment percentage | 0.25% | ||||||||||||||
Base Rate | Coty Term Loan B Facility due October 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 1.25% | ||||||||||||||
Base Rate | Line of Credit | Revolving credit facility | Coty Credit Agreement | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 0.00% | 0.00% | |||||||||||||
Base Rate | Line of Credit | Revolving credit facility | Coty Credit Agreement | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 1.00% | 1.00% | |||||||||||||
Base Rate | Line of Credit | Revolving credit facility | Galleria Credit Agreement | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 0.00% | ||||||||||||||
Base Rate | Line of Credit | Revolving credit facility | Galleria Credit Agreement | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 1.00% | ||||||||||||||
Base Rate | Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | Minimum | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 0.00% | 0.00% | |||||||||||||
Base Rate | Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | Maximum | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 1.00% | 1.00% | |||||||||||||
Base Rate | Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 2.00% | ||||||||||||||
Base Rate | Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | Minimum | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 1.75% | ||||||||||||||
Base Rate | Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | Maximum | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 2.00% | ||||||||||||||
Base Rate | Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 0.00% | ||||||||||||||
Base Rate | Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 1.00% | ||||||||||||||
Base Rate | Line of Credit | Term Loan | Galleria Term Loan B Facility due September 2023 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 2.00% | ||||||||||||||
EURIBOR | Coty Term Loan B Facility due October 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 2.50% | ||||||||||||||
EURIBOR | Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | Minimum | Euro | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 1.00% | 1.00% | |||||||||||||
EURIBOR | Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | Maximum | Euro | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 2.00% | 2.00% | |||||||||||||
EURIBOR | Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | Euro | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 0.75% | ||||||||||||||
EURIBOR | Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | Maximum | Euro | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 2.75% | ||||||||||||||
Federal Funds Effective Swap Rate | Line of Credit | Term Loan | Refinancing Term B USD Facility | JPMorgan Chase NA, as Administrative Agent | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 0.50% | ||||||||||||||
London Interbank Offered Rate (LIBOR), One-Month | Line of Credit | Term Loan | Refinancing Term B USD Facility | JPMorgan Chase NA, as Administrative Agent | U.S. Dollar | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Applicable margin percentage | 1.00% | ||||||||||||||
Galleria | Line of Credit | Galleria Credit Agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long term debt | $ 1,941,800,000 | ||||||||||||||
Galleria | Line of Credit | Revolving credit facility | Galleria Revolving Credit Facility due September 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | $ 1,500,000,000 | ||||||||||||||
Debt instrument term | 5 years | ||||||||||||||
Long term debt | $ 0 | ||||||||||||||
Galleria | Line of Credit | Accounts Payable | Galleria Revolving Credit Facility due September 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument fees | 2,500,000 | ||||||||||||||
Galleria | Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | $ 2,000,000,000 | ||||||||||||||
Debt instrument term | 5 years | ||||||||||||||
Long term debt | $ 944,300,000 | ||||||||||||||
Galleria | Line of Credit | Term Loan | Galleria Term Loan B Facility due September 2023 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | $ 1,000,000,000 | ||||||||||||||
Debt discount (percentage) | 0.50% | ||||||||||||||
Debt instrument term | 7 years | ||||||||||||||
Long term debt | $ 995,000,000 | ||||||||||||||
Galleria | Line of Credit | Term Loan | Galleria Credit Agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Deferred financing fees | $ 11,400,000 | ||||||||||||||
Scenario, Forecast | Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayment percentage | 1.25% | ||||||||||||||
Scenario, Forecast | Line of Credit | Term Loan | Galleria Term Loan B Facility due September 2023 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayment percentage | 0.25% | ||||||||||||||
2021 | Senior Notes | 2026 Dollar Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Redemption Price, percentage | 106.50% | ||||||||||||||
2021 | Senior Notes | 2026 Euro Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Redemption Price, percentage | 104.75% | ||||||||||||||
2020 | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Redemption Price, percentage | 35.00% | ||||||||||||||
Redemption price, percentage of principal amount outstanding | 65.00% | ||||||||||||||
2020 | Senior Notes | 2023 Euro Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Redemption Price, percentage | 104.00% |
DEBT - Schedule of Long Term De
DEBT - Schedule of Long Term Debt Facilities (Details) | 12 Months Ended | |||||||||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015 | Jun. 30, 2018EUR (€) | Apr. 05, 2018USD ($) | Apr. 05, 2018EUR (€) | Jun. 30, 2017EUR (€) | Jun. 30, 2016EUR (€) | Apr. 08, 2016EUR (€) | Oct. 27, 2015USD ($) | Oct. 27, 2015EUR (€) | |
Coty Term Loan B Facility due October 2022 | LIBOR | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.25% | |||||||||||
Coty Term Loan B Facility due October 2022 | Base Rate | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.25% | |||||||||||
Coty Term Loan B Facility due October 2022 | EURIBOR | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.50% | |||||||||||
Line of Credit | Revolving credit facility | JPMorgan Chase NA, as Administrative Agent | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Borrowing Capacity (in millions) | $ 1,500,000,000 | |||||||||||
Line of Credit | Revolving credit facility | Galleria Credit Agreement | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Borrowing Capacity (in millions) | $ 1,500,000,000 | |||||||||||
Applicable Interest Rate Spread at period end | 1.75% | 1.75% | ||||||||||
Line of Credit | Revolving credit facility | Galleria Credit Agreement | LIBOR | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | |||||||||||
Line of Credit | Revolving credit facility | Galleria Credit Agreement | LIBOR | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.00% | |||||||||||
Line of Credit | Revolving credit facility | Galleria Credit Agreement | Base Rate | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 0.00% | |||||||||||
Line of Credit | Revolving credit facility | Galleria Credit Agreement | Base Rate | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | |||||||||||
Line of Credit | Revolving credit facility | Coty Credit Agreement | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Borrowing Capacity (in millions) | $ 1,500,000,000 | $ 1,500,000,000 | ||||||||||
Applicable Interest Rate Spread at period end | 1.75% | 1.75% | 1.75% | 1.75% | ||||||||
Unused commitment fee percentage | 0.30% | 0.50% | 0.50% | |||||||||
Line of Credit | Revolving credit facility | Coty Credit Agreement | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Unused commitment fee percentage | 0.10% | 0.25% | 0.25% | |||||||||
Line of Credit | Revolving credit facility | Coty Credit Agreement | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Unused commitment fee percentage | 0.35% | 0.50% | 0.50% | |||||||||
Line of Credit | Revolving credit facility | Coty Credit Agreement | LIBOR | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | 1.00% | ||||||||||
Line of Credit | Revolving credit facility | Coty Credit Agreement | LIBOR | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.00% | 2.00% | ||||||||||
Line of Credit | Revolving credit facility | Coty Credit Agreement | Base Rate | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 0.00% | 0.00% | ||||||||||
Line of Credit | Revolving credit facility | Coty Credit Agreement | Base Rate | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | 1.00% | ||||||||||
Line of Credit | Revolving credit facility | 2018 Coty Revolving Credit Facility due April 2023 | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Borrowing Capacity (in millions) | $ 3,250,000,000 | |||||||||||
Applicable Interest Rate Spread at period end | 1.75% | 1.75% | ||||||||||
Line of Credit | Revolving credit facility | 2018 Coty Revolving Credit Facility due April 2023 | LIBOR | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | |||||||||||
Line of Credit | Revolving credit facility | 2018 Coty Revolving Credit Facility due April 2023 | LIBOR | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.00% | |||||||||||
Line of Credit | Revolving credit facility | 2018 Coty Revolving Credit Facility due April 2023 | Base Rate | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 0.00% | |||||||||||
Line of Credit | Revolving credit facility | 2018 Coty Revolving Credit Facility due April 2023 | Base Rate | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | |||||||||||
Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Applicable Interest Rate Spread at period end | 1.75% | 1.75% | ||||||||||
Amount of term loan | $ 2,000,000,000 | |||||||||||
Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | LIBOR | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Repayment percentage | 1.25% | |||||||||||
Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | LIBOR | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | |||||||||||
Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | LIBOR | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.00% | |||||||||||
Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | Base Rate | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 0.00% | |||||||||||
Line of Credit | Term Loan | Galleria Term Loan A Facility due September 2021 | Base Rate | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | |||||||||||
Line of Credit | Term Loan | Galleria Term Loan B Facility due September 2023 | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Applicable Interest Rate Spread at period end | 3.00% | 3.00% | ||||||||||
Amount of term loan | $ 1,000,000,000 | |||||||||||
Line of Credit | Term Loan | Galleria Term Loan B Facility due September 2023 | LIBOR | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 3.00% | |||||||||||
Repayment percentage | 0.25% | |||||||||||
Line of Credit | Term Loan | Galleria Term Loan B Facility due September 2023 | Base Rate | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.00% | |||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Applicable Interest Rate Spread at period end | 1.75% | 1.75% | ||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | JPMorgan Chase NA, as Administrative Agent | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Amount of term loan | $ 1,750,000,000 | |||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | U.S. Dollar | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Applicable Interest Rate Spread at period end | 1.75% | 1.75% | 1.75% | 1.75% | ||||||||
Amount of term loan | $ 1,750,000,000 | $ 1,750,000,000 | ||||||||||
Repayment percentage | 1.25% | 1.25% | ||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | Euro | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Applicable Interest Rate Spread at period end | 1.75% | 1.75% | 1.75% | 1.75% | ||||||||
Amount of term loan | € | € 140,000,000 | € 140,000,000 | ||||||||||
Repayment percentage | 1.25% | 1.25% | ||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | Euro | JPMorgan Chase NA, as Administrative Agent | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Additional commitments under facility | € | € 140,000,000 | |||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | LIBOR | U.S. Dollar | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | 1.00% | ||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | LIBOR | U.S. Dollar | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.00% | 2.00% | ||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | Base Rate | U.S. Dollar | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 0.00% | 0.00% | ||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | Base Rate | U.S. Dollar | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | 1.00% | ||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | EURIBOR | Euro | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | 1.00% | ||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2020 | EURIBOR | Euro | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.00% | 2.00% | ||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2021 | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Amount of term loan | $ 975,000,000 | |||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2021 | U.S. Dollar | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Repayment percentage | 1.25% | |||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2021 | LIBOR | U.S. Dollar | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | |||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2021 | LIBOR | U.S. Dollar | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.00% | |||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2021 | Base Rate | U.S. Dollar | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 0.00% | |||||||||||
Line of Credit | Term Loan | Coty Term Loan A Facility due October 2021 | Base Rate | U.S. Dollar | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | |||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | JPMorgan Chase NA, as Administrative Agent | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt Discount (percentage) | 0.50% | 0.50% | ||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | U.S. Dollar | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Applicable Interest Rate Spread at period end | 2.50% | 3.00% | 2.50% | 3.00% | ||||||||
Amount of term loan | $ 600,000,000 | $ 500,000,000 | ||||||||||
Debt Discount (percentage) | 0.50% | 0.50% | 0.50% | 0.50% | ||||||||
Repayment percentage | 0.25% | 0.25% | ||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | U.S. Dollar | JPMorgan Chase NA, as Administrative Agent | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Amount of term loan | $ 500,000,000 | |||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | Euro | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Borrowing Capacity (in millions) | € | € 990,000,000 | € 990,000,000 | ||||||||||
Applicable Interest Rate Spread at period end | 2.75% | 2.75% | 2.75% | 2.75% | ||||||||
Debt Discount (percentage) | 0.50% | 0.50% | 0.50% | 0.50% | ||||||||
Repayment percentage | 0.25% | 0.25% | ||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | Euro | JPMorgan Chase NA, as Administrative Agent | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Amount of term loan | € | € 665,000,000 | |||||||||||
Repayment percentage | 0.25% | |||||||||||
Additional commitments under facility | € | € 325,000,000 | |||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | LIBOR | U.S. Dollar | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.50% | |||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | LIBOR | U.S. Dollar | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 0.75% | |||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | LIBOR | U.S. Dollar | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 3.00% | |||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | Base Rate | U.S. Dollar | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.00% | |||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | Base Rate | U.S. Dollar | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.75% | |||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | Base Rate | U.S. Dollar | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.00% | |||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | EURIBOR | Euro | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 0.75% | |||||||||||
Line of Credit | Term Loan | Coty Term Loan B Facility due October 2022 | EURIBOR | Euro | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.75% | |||||||||||
Line of Credit | Term Loan | Term Loan A Facility, Due April 2023 | U.S. Dollar | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Applicable Interest Rate Spread at period end | 1.75% | 1.75% | ||||||||||
Amount of term loan | $ 1,000,000,000 | |||||||||||
Line of Credit | Term Loan | Term Loan A Facility, Due April 2023 | Euro | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Applicable Interest Rate Spread at period end | 1.75% | 1.75% | ||||||||||
Amount of term loan | € | € 2,035,000,000 | |||||||||||
Line of Credit | Term Loan | Term Loan A Facility, Due April 2023 | LIBOR | U.S. Dollar | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Repayment percentage | 1.25% | |||||||||||
Line of Credit | Term Loan | Term Loan A Facility, Due April 2023 | LIBOR | U.S. Dollar | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | |||||||||||
Line of Credit | Term Loan | Term Loan A Facility, Due April 2023 | LIBOR | U.S. Dollar | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.00% | |||||||||||
Line of Credit | Term Loan | Term Loan A Facility, Due April 2023 | LIBOR | Euro | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Repayment percentage | 1.25% | |||||||||||
Line of Credit | Term Loan | Term Loan A Facility, Due April 2023 | LIBOR | Euro | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | |||||||||||
Line of Credit | Term Loan | Term Loan A Facility, Due April 2023 | LIBOR | Euro | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.00% | |||||||||||
Line of Credit | Term Loan | Term Loan A Facility, Due April 2023 | Base Rate | U.S. Dollar | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 0.00% | |||||||||||
Line of Credit | Term Loan | Term Loan A Facility, Due April 2023 | Base Rate | U.S. Dollar | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | |||||||||||
Line of Credit | Term Loan | Term Loan A Facility, Due April 2023 | Base Rate | Euro | Minimum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 0.00% | |||||||||||
Line of Credit | Term Loan | Term Loan A Facility, Due April 2023 | Base Rate | Euro | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.00% | |||||||||||
Line of Credit | Term Loan | Term Loan B Facility, Due April 2025 | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Amount of term loan | € | € 850,000,000 | |||||||||||
Line of Credit | Term Loan | Term Loan B Facility, Due April 2025 | U.S. Dollar | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Applicable Interest Rate Spread at period end | 2.25% | 2.25% | ||||||||||
Amount of term loan | $ 1,400,000,000 | |||||||||||
Debt Discount (percentage) | 0.25% | 0.25% | ||||||||||
Line of Credit | Term Loan | Term Loan B Facility, Due April 2025 | Euro | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Applicable Interest Rate Spread at period end | 2.50% | 2.50% | ||||||||||
Debt Discount (percentage) | 0.25% | 0.25% | ||||||||||
Line of Credit | Term Loan | Term Loan B Facility, Due April 2025 | LIBOR | U.S. Dollar | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Repayment percentage | 0.25% | |||||||||||
Line of Credit | Term Loan | Term Loan B Facility, Due April 2025 | LIBOR | U.S. Dollar | Maximum | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.25% | |||||||||||
Line of Credit | Term Loan | Term Loan B Facility, Due April 2025 | LIBOR | Euro | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 2.50% | |||||||||||
Repayment percentage | 0.25% | |||||||||||
Line of Credit | Term Loan | Term Loan B Facility, Due April 2025 | Base Rate | U.S. Dollar | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 1.25% | |||||||||||
Line of Credit | Term Loan | 2026 Dollar Notes | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 6.50% | |||||||||||
Line of Credit | Term Loan | 2023 Euro Notes | Euro | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 4.00% | |||||||||||
Line of Credit | Term Loan | 2026 Euro Notes | Euro | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 4.75% | |||||||||||
Senior Notes | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Margin percentage | 0.50% | |||||||||||
Senior Notes | 2026 Dollar Notes | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Amount of term loan | $ 550,000,000 | |||||||||||
Senior Notes | 2023 Euro Notes | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Amount of term loan | € | € 550,000,000 | |||||||||||
Senior Notes | 2026 Euro Notes | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Amount of term loan | € | € 250,000,000 | |||||||||||
Senior Notes | Term Loan | 2026 Dollar Notes | U.S. Dollar | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Amount of term loan | $ 550,000,000 | |||||||||||
Senior Notes | Term Loan | 2023 Euro Notes | Euro | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Amount of term loan | € | € 550,000,000 | |||||||||||
Senior Notes | Term Loan | 2026 Euro Notes | Euro | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Amount of term loan | € | € 250,000,000 |
DEBT - Debt Redemption (Details
DEBT - Debt Redemption (Details) - Senior Notes | Apr. 05, 2018 | Jun. 30, 2018 |
Debt Instrument, Redemption [Line Items] | ||
Margin percentage | 0.50% | |
Redemption price, percentage | 100.00% | |
2026 Dollar Notes | 2021 | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 104.875% | |
2026 Dollar Notes | 2022 | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 103.25% | |
2026 Dollar Notes | 2023 | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 101.625% | |
2026 Dollar Notes | 2024 and thereafter | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 100.00% | |
2023 Euro Notes | 2020 | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 102.00% | |
2023 Euro Notes | 2021 | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 101.00% | |
2023 Euro Notes | 2022 | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 100.00% | |
2023 Euro Notes | 2023 | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 100.00% | |
2026 Euro Notes | 2021 | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 103.5625% | |
2026 Euro Notes | 2022 | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 102.375% | |
2026 Euro Notes | 2023 | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 101.1875% | |
2026 Euro Notes | 2024 and thereafter | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 100.00% |
DEBT - Schedule of Debt Pricing
DEBT - Schedule of Debt Pricing Tier (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Pricing Tier One | Minimum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 4.75 |
Pricing Tier One | LIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 2.00% |
Pricing Tier One | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 1.00% |
Pricing Tier Two | Minimum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 4 |
Pricing Tier Two | Maximum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 4.75 |
Pricing Tier Two | LIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.75% |
Pricing Tier Two | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.75% |
Pricing Tier Three | Minimum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 2.75 |
Pricing Tier Three | Maximum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 4 |
Pricing Tier Three | LIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.50% |
Pricing Tier Three | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.50% |
Pricing Tier Four | Minimum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 2 |
Pricing Tier Four | Maximum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 2.75 |
Pricing Tier Four | LIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.25% |
Pricing Tier Four | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.25% |
Pricing Tier Five | Minimum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 1.5 |
Pricing Tier Five | Maximum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 2 |
Pricing Tier Five | LIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.125% |
Pricing Tier Five | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.125% |
Pricing Tier Six | Maximum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 1.5 |
Pricing Tier Six | LIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.00% |
Pricing Tier Six | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.00% |
Pricing Tier Five | LIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 2.00% |
Pricing Tier Five | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 1.00% |
Pricing Tier Four | LIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.75% |
Pricing Tier Four | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.75% |
Pricing Tier Three | LIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.50% |
Pricing Tier Three | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.50% |
Pricing Tier Two | LIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.25% |
Pricing Tier Two | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.25% |
Pricing Tier One | LIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.125% |
Pricing Tier One | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.125% |
DEBT - Schedule of Fair Value o
DEBT - Schedule of Fair Value of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Carrying Amount | 2018 Coty Credit Agreement | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 6,130.1 | $ 0 |
Carrying Amount | Galleria Credit Agreement | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 0 | 1,944.3 |
Carrying Amount | 2015 Coty Credit Agreement | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 0 | 5,265.9 |
Fair Value | 2018 Coty Credit Agreement | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 6,070.8 | 0 |
Fair Value | Galleria Credit Agreement | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 0 | 1,944 |
Fair Value | 2015 Coty Credit Agreement | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 0 | 5,275.4 |
Senior Notes | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 1,482.3 | 0 |
Senior Notes | Fair Value | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 1,449.9 | $ 0 |
DEBT - Long-term Debt Repayment
DEBT - Long-term Debt Repayment Schedule (Details) $ in Millions | Jun. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 192.5 |
2,020 | 192.5 |
2,021 | 192.5 |
2,022 | 192.5 |
2,023 | 3,730.1 |
Thereafter | 3,112.3 |
Total Long-term debt, net | $ 7,612.4 |
DEBT - Debt Covenants (Details)
DEBT - Debt Covenants (Details) | 12 Months Ended |
Jun. 30, 2018 | |
June 30, 2018 | |
Debt Instrument [Line Items] | |
Total net leverage ratio | 5.50 |
September 30, 2018 through December 31, 2018 | |
Debt Instrument [Line Items] | |
Total net leverage ratio | 5.5 |
March 31, 2019 through June 30, 2019 | |
Debt Instrument [Line Items] | |
Total net leverage ratio | 5.25 |
September 30, 2019 through December 31, 2019 | |
Debt Instrument [Line Items] | |
Total net leverage ratio | 5 |
March 31, 2020 through June 30, 2020 | |
Debt Instrument [Line Items] | |
Total net leverage ratio | 4.75 |
September 30, 2020 through December 31, 2020 | |
Debt Instrument [Line Items] | |
Total net leverage ratio | 4.5 |
March 31, 2021 through June 30, 2021 | |
Debt Instrument [Line Items] | |
Total net leverage ratio | 4.25 |
September 30, 2021 through June 30, 2023 | |
Debt Instrument [Line Items] | |
Total net leverage ratio | 4 |
DEBT - Offering of Senior Unsec
DEBT - Offering of Senior Unsecured Notes (Details) | Apr. 05, 2018USD ($) | Apr. 05, 2018EUR (€) |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Redemption Price, percentage | 100.00% | |
Senior Notes | 2026 Dollar Notes | ||
Debt Instrument [Line Items] | ||
Amount of debt | $ | $ 550,000,000 | |
Stated interest rate (as a percent) | 6.50% | 6.50% |
Senior Notes | 2023 Euro Notes | ||
Debt Instrument [Line Items] | ||
Amount of debt | € 550,000,000 | |
Stated interest rate (as a percent) | 4.00% | 4.00% |
Senior Notes | 2026 Euro Notes | ||
Debt Instrument [Line Items] | ||
Amount of debt | € 250,000,000 | |
Stated interest rate (as a percent) | 4.75% | 4.75% |
Senior Notes | Euro Notes | ||
Debt Instrument [Line Items] | ||
Redemption Price, percentage | 100.00% | |
Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Redemption Price, percentage | 101.00% |
LEASE COMMITMENTS - Narrative (
LEASE COMMITMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 208.2 | $ 166.1 | $ 82.5 |
Payments collected from sub-lessors | 6.2 | 6 | 5.4 |
Selling, general and administrative | |||
Operating Leased Assets [Line Items] | |||
Estimated net future minimum lease (recoveries) payments and related costs for facilities no longer used | $ 8.6 | $ 9.2 | $ 0 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Operating leases renewal term | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating leases renewal term | 10 years |
LEASE COMMITMENTS - Minimum ren
LEASE COMMITMENTS - Minimum rental lease commitments (Details) $ in Millions | Jun. 30, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 128.9 |
2,020 | 112.1 |
2,021 | 97 |
2,022 | 80.4 |
2,023 | 71.8 |
Thereafter | 339.3 |
Gross minimum payments required | 829.5 |
Less: sublease income | (23.9) |
Total minimum payments required | $ 805.6 |
INCOME TAXES - Income (loss) fr
INCOME TAXES - Income (loss) from operations before income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (324.2) | $ (524.8) | $ (153.6) |
Foreign | 171.7 | (133.2) | 292.4 |
(Loss) income before income taxes | $ (152.5) | $ (658) | $ 138.8 |
INCOME TAXES - Components of pr
INCOME TAXES - Components of provision (benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current: | |||
Federal | $ 0.2 | $ 0.4 | $ (30) |
State and local | 9.8 | 1.1 | (2.7) |
Foreign | 67 | 129 | 131.5 |
Total | 77 | 130.5 | 98.8 |
Deferred: | |||
Federal | 25.2 | (256.9) | (91.7) |
State and local | (0.7) | (24.2) | (9.9) |
Foreign | (126.2) | (108.9) | (37.6) |
Total | (101.7) | (390) | (139.2) |
Benefit for income taxes | $ (24.7) | $ (259.5) | $ (40.4) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2018USD ($)jurisdiction | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Income Tax Contingency [Line Items] | ||||||
Tax Cuts and Jobs Act income tax expense | $ 41 | |||||
Tax benefit recognized | 24.7 | $ 259.5 | $ 40.4 | |||
Reduction of gross unrecognized tax benefits | 42.3 | 1.5 | 72.7 | |||
Valuation allowance | $ 104.6 | 60.3 | ||||
Acquired finite-lived intangible assets, useful life | 21 years | |||||
Tax loss carry forwards subject to expiration | $ 1,134.1 | |||||
Unrecognized tax benefits | 303.6 | 257.9 | 228.9 | $ 342.6 | ||
Unrecognized tax benefits that would impact effective tax rate | 124.7 | |||||
Accrued interest and penalties | 135.4 | 154.6 | ||||
Interest accrued | 0.8 | 1.4 | 1.2 | |||
Penalties accrued | $ 0.4 | 0.1 | $ 0.1 | |||
Number of tax jurisdictions | jurisdiction | 55 | |||||
Income tax expense (benefit) | $ 53.3 | 12.3 | ||||
Amount of decrease in UTBs | 9 | |||||
Foreign earnings repatriated | 4,500 | |||||
Tax Cuts And Jobs Act Of 2017 income tax expense | 41 | |||||
Tax Cuts And Jobs Act Of 2017 tax attributes | 311 | |||||
Tax Cuts And Jobs Act Of 2017, deferred tax asset | 270 | |||||
Other Noncurrent Liabilities | ||||||
Income Tax Contingency [Line Items] | ||||||
Accrued interest and penalties | $ 13.1 | 11.7 | ||||
Intellectual Property | ||||||
Income Tax Contingency [Line Items] | ||||||
Acquired finite-lived intangible assets, useful life | 20 years | |||||
Intellectual Property | Prepaid Expenses and Other Current Assets | ||||||
Income Tax Contingency [Line Items] | ||||||
Prepaid income taxes | $ 7.6 | 7.6 | ||||
Intellectual Property | Other Noncurrent Assets | ||||||
Income Tax Contingency [Line Items] | ||||||
Prepaid income taxes | $ 120.6 | $ 128.2 | ||||
IRS | Domestic Tax Authority | ||||||
Income Tax Contingency [Line Items] | ||||||
Valuation allowance | $ 111.2 | |||||
IRS | Domestic Tax Authority | Settlement with Taxing Authority | ||||||
Income Tax Contingency [Line Items] | ||||||
Tax benefit recognized | 194.4 | |||||
Reduction of gross unrecognized tax benefits | 29.7 | |||||
IRS | Domestic Tax Authority | Settlement with Taxing Authority | Trademarks | ||||||
Income Tax Contingency [Line Items] | ||||||
Recognition of additional deferred tax assets | $ 164.7 | |||||
Galleria | ||||||
Income Tax Contingency [Line Items] | ||||||
Valuation allowance | $ 111.2 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes | $ (152.5) | $ (658) | $ 138.8 |
(Benefit) provision for income taxes at statutory rate | (42.8) | (230.3) | 48.5 |
State and local taxes—net of federal benefit | 9.9 | (15) | (8.3) |
Foreign tax differentials | (21.9) | 53.3 | (50.8) |
Change in valuation allowances | 8.6 | (108.2) | (7.6) |
Change in unrecognized tax benefit | (24.8) | 25.6 | 45.8 |
U.S. audit settlement, net | 0 | 0 | (83.2) |
Tax Act | 41 | 0 | 0 |
Permanent differences—net | (8.5) | 1.2 | 4.7 |
Amortization on intercompany sale | 5.4 | 5.7 | 5.7 |
Other | 8.4 | 8.2 | 4.8 |
Benefit for income taxes | $ (24.7) | $ (259.5) | $ (40.4) |
Effective income tax rate | 16.20% | 39.40% | (29.10%) |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred income tax assets and liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred income tax assets: | ||
Inventories | $ 9 | $ 11.7 |
Accruals and allowances | 84.2 | 108.8 |
Sales returns | 13.1 | 14.8 |
Share-based compensation | 13.4 | 14.2 |
Employee benefits | 115.7 | 141.2 |
Net operating loss carry forwards and tax credits | 285.1 | 436.9 |
Other | 48.3 | 40.7 |
Less: valuation allowances | (104.6) | (60.3) |
Net deferred income tax assets | 464.2 | 708 |
Deferred income tax liabilities: | ||
Intangible assets | 1,115.7 | 1,420.9 |
Property, plant and equipment | 18.9 | 44.1 |
Unrealized gain | 5.4 | 44 |
Licensing rights | 21.5 | 30.4 |
Other | 37.8 | 20.9 |
Deferred income tax liabilities | 1,199.3 | 1,560.3 |
Net deferred income tax liabilities | $ (735.1) | $ (852.3) |
INCOME TAXES - Expirations of t
INCOME TAXES - Expirations of tax loss carry forwards (Details) $ in Millions | Jun. 30, 2018USD ($) |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 1,134.1 |
Tax Year 2020 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 15.2 |
Tax Year 2021 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 75.3 |
Tax Year 2022 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 13.2 |
Tax Year 2022 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 23.3 |
Tax Year 2023 and Thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 1,007.1 |
United States | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 1.7 |
United States | Tax Year 2020 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | Tax Year 2021 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | Tax Year 2022 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | Tax Year 2022 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | Tax Year 2023 and Thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 1.7 |
Western Europe | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 831.6 |
Western Europe | Tax Year 2020 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
Western Europe | Tax Year 2021 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
Western Europe | Tax Year 2022 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0.8 |
Western Europe | Tax Year 2022 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 1.9 |
Western Europe | Tax Year 2023 and Thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 828.9 |
Rest of World | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 300.8 |
Rest of World | Tax Year 2020 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 15.2 |
Rest of World | Tax Year 2021 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 75.3 |
Rest of World | Tax Year 2022 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 12.4 |
Rest of World | Tax Year 2022 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 21.4 |
Rest of World | Tax Year 2023 and Thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 176.5 |
INCOME TAXES - Unrecognized tax
INCOME TAXES - Unrecognized tax benefit reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning Balance | $ 257.9 | $ 228.9 | $ 342.6 |
Additions based on tax positions related to the current year | 44.1 | 43.6 | 60.4 |
Additions for tax positions of prior years | 97.4 | 0.4 | 0 |
Reductions for tax positions of prior years | (39.9) | 0 | (70.5) |
Settlements | (42.3) | (1.5) | (72.7) |
Lapses in statutes of limitations | (11) | (13.2) | (37.9) |
Foreign currency translation | (2.6) | (0.3) | 7 |
Unrecognized Tax Benefits, Ending Balance | $ 303.6 | $ 257.9 | $ 228.9 |
INTEREST EXPENSE, NET (Details)
INTEREST EXPENSE, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest Income (Expense), Net [Abstract] | |||
Interest expense | $ 287.1 | $ 219.6 | $ 112.9 |
Foreign exchange (gain) losses, net of derivative contracts | (8.5) | 3.4 | (26.9) |
Interest income | (13.6) | (4.4) | (4.1) |
Total interest expense, net | 265 | $ 218.6 | 81.9 |
Gain related to short-term forward contracts | $ 1.4 | $ 11.1 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Oct. 01, 2016 | |
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% | |||
Settlements loss (gain) recognized | $ 0 | $ 15.4 | $ 0.1 | |
Curtailment gain | 10.3 | 2.2 | 1.8 | |
Funded status | 541.1 | 556.8 | ||
Other Post-Employment Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements loss (gain) recognized | 0 | 0 | 0 | |
Curtailment gain | 10.4 | 0 | 1.8 | |
Funded status | 52.8 | 63.4 | ||
Expected contributions | 2.1 | |||
U.S. Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | 22 | 20.6 | 12.7 | |
Settlements loss (gain) recognized | 0 | 15.9 | 0 | |
Curtailment gain | 0 | 0 | 0 | |
Funded status | 17.5 | 18.8 | ||
Accumulated benefit obligation | 17.5 | 18.8 | ||
Expected contributions | 1.3 | |||
U.S. Pension Plan | Del Laboratories, Inc | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements loss (gain) recognized | 15.9 | |||
International Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | 18.3 | 13.3 | 5.7 | |
Settlements loss (gain) recognized | 0 | (0.5) | 0.1 | |
Curtailment gain | (0.1) | 2.2 | $ 0 | |
Funded status | 470.8 | 474.6 | ||
Accumulated benefit obligation | 669.1 | $ 640.6 | ||
Expected contributions | 36.8 | |||
International Plan | Other Post-Employment Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailment gain | 10.4 | |||
Galleria | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Funded status | $ 404.1 | |||
Acquisition Integration Program | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailment gain | 1.8 | |||
Global Integration Activities | International Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements loss (gain) recognized | (0.4) | |||
Curtailment gain | $ 0.4 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation - beginning balance | $ 791.4 | $ 333.4 | |
Service cost | 40.2 | 36.7 | $ 7.6 |
Interest cost | 15.3 | 10 | 8.9 |
Plan participants’ contributions | 7.3 | 15.2 | |
Benefits paid | (32.5) | (14.1) | |
Premiums paid | (2.7) | (2.9) | |
Pension curtailment | (10.1) | (2.2) | |
Pension settlements | (1) | (83.2) | |
Actuarial (gain) loss | (9.5) | (84.5) | |
Acquired obligations | 0 | 572.8 | |
Effect of exchange rates | 4.9 | 10.2 | |
Other | 0 | 0 | |
Benefit obligation - ending balance | 803.3 | 791.4 | 333.4 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets - beginning balance | 234.6 | 95.6 | |
Actual return on plan assets | 18.8 | 9.8 | |
Employer contributions | 39.8 | 41.7 | |
Plan participants’ contributions | 7.3 | 15.2 | |
Benefits paid | (32.1) | (14.1) | |
Premiums paid | (2.7) | (2.9) | |
Plan settlements | (1) | (83.2) | |
Acquired plan assets | 0 | 168.7 | |
Effect of exchange rates | (2.5) | 3.6 | |
Other | 0 | (0.2) | |
Fair value of plan assets - ending balance | 262.2 | 234.6 | 95.6 |
Funded status | (541.1) | (556.8) | |
Other Post-Employment Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation - beginning balance | 63.8 | 47.7 | |
Service cost | 1.4 | 1.9 | 1.1 |
Interest cost | 2 | 1.8 | 1.9 |
Plan participants’ contributions | 0.2 | 0.2 | |
Benefits paid | (1.6) | (2) | |
Premiums paid | 0 | 0 | |
Pension curtailment | (10.4) | 0 | |
Pension settlements | 0 | 0 | |
Actuarial (gain) loss | (2.5) | (1.4) | |
Acquired obligations | 0 | 15.4 | |
Effect of exchange rates | 0.3 | 0.1 | |
Other | 0 | 0.1 | |
Benefit obligation - ending balance | 53.2 | 63.8 | 47.7 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets - beginning balance | 0.4 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 1.4 | 1.8 | |
Plan participants’ contributions | 0.2 | 0.2 | |
Benefits paid | (1.6) | (2) | |
Premiums paid | 0 | 0 | |
Plan settlements | 0 | 0 | |
Acquired plan assets | 0 | 0.4 | |
Effect of exchange rates | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets - ending balance | 0.4 | 0.4 | 0 |
Funded status | (52.8) | (63.4) | |
U.S. Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation - beginning balance | 18.8 | 82.1 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0.7 | 1.6 | 3.4 |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (1.3) | (2.5) | |
Premiums paid | 0 | 0 | |
Pension curtailment | 0 | 0 | |
Pension settlements | 0 | (60.2) | |
Actuarial (gain) loss | (0.7) | (2.2) | |
Acquired obligations | 0 | 0 | |
Effect of exchange rates | 0 | 0 | |
Other | 0 | 0 | |
Benefit obligation - ending balance | 17.5 | 18.8 | 82.1 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets - beginning balance | 0 | 53.2 | |
Actual return on plan assets | 0 | (0.8) | |
Employer contributions | 1.3 | 10.1 | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (1.3) | (2.5) | |
Premiums paid | 0 | 0 | |
Plan settlements | 0 | (60.2) | |
Acquired plan assets | 0 | 0 | |
Effect of exchange rates | 0 | 0 | |
Other | 0 | (0.2) | |
Fair value of plan assets - ending balance | 0 | 0 | 53.2 |
Funded status | (17.5) | (18.8) | |
International Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation - beginning balance | 708.8 | 203.6 | |
Service cost | 38.8 | 34.8 | 6.5 |
Interest cost | 12.6 | 6.6 | 3.6 |
Plan participants’ contributions | 7.1 | 15 | |
Benefits paid | (29.6) | (9.6) | |
Premiums paid | (2.7) | (2.9) | |
Pension curtailment | 0.3 | (2.2) | |
Pension settlements | (1) | (23) | |
Actuarial (gain) loss | (6.3) | (80.9) | |
Acquired obligations | 0 | 557.4 | |
Effect of exchange rates | 4.6 | 10.1 | |
Other | 0 | (0.1) | |
Benefit obligation - ending balance | 732.6 | 708.8 | 203.6 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets - beginning balance | 234.2 | 42.4 | |
Actual return on plan assets | 18.8 | 10.6 | |
Employer contributions | 37.1 | 29.8 | |
Plan participants’ contributions | 7.1 | 15 | |
Benefits paid | (29.2) | (9.6) | |
Premiums paid | (2.7) | (2.9) | |
Plan settlements | (1) | (23) | |
Acquired plan assets | 0 | 168.3 | |
Effect of exchange rates | (2.5) | 3.6 | |
Other | 0 | 0 | |
Fair value of plan assets - ending balance | 261.8 | 234.2 | $ 42.4 |
Funded status | $ (470.8) | $ (474.6) |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amount recognized in Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | $ 1.1 | $ 0.5 |
Current liabilities | (8.9) | (8.1) |
Noncurrent liabilities | (533.3) | (549.2) |
Funded status | (541.1) | (556.8) |
AOC(L)/I | 66.5 | 51.5 |
Net amount recognized | (474.6) | (505.3) |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (2.1) | (1.9) |
Noncurrent liabilities | (50.7) | (61.5) |
Funded status | (52.8) | (63.4) |
AOC(L)/I | 20.1 | 23.9 |
Net amount recognized | (32.7) | (39.5) |
U.S. Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (1.3) | (1.3) |
Noncurrent liabilities | (16.2) | (17.5) |
Funded status | (17.5) | (18.8) |
AOC(L)/I | 1.7 | 2.5 |
Net amount recognized | (15.8) | (16.3) |
International Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 1.1 | 0.5 |
Current liabilities | (5.5) | (4.9) |
Noncurrent liabilities | (466.4) | (470.2) |
Funded status | (470.8) | (474.6) |
AOC(L)/I | 44.7 | 25.1 |
Net amount recognized | $ (426.1) | $ (449.5) |
EMPLOYEE BENEFIT PLANS - Pensio
EMPLOYEE BENEFIT PLANS - Pension plans with accumulated benefit obligations in excess of plan assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
U.S. Pension Plan | ||
Pension plans with accumulated benefit obligations in excess of plan assets | ||
Projected benefit obligation | $ 17.5 | $ 18.8 |
Accumulated benefit obligation | 17.5 | 18.8 |
Fair value of plan assets | 0 | 0 |
Pension plans with projected benefit obligations in excess of plan assets | ||
Projected benefit obligation | 17.5 | 18.8 |
Accumulated benefit obligation | 17.5 | 18.8 |
Fair value of plan assets | 0 | 0 |
International Plan | ||
Pension plans with accumulated benefit obligations in excess of plan assets | ||
Projected benefit obligation | 713.9 | 695 |
Accumulated benefit obligation | 657.8 | 631.6 |
Fair value of plan assets | 247 | 223.9 |
Pension plans with projected benefit obligations in excess of plan assets | ||
Projected benefit obligation | 725 | 705.6 |
Accumulated benefit obligation | 669.1 | 640.6 |
Fair value of plan assets | $ 254.2 | $ 230.4 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of net periodic benefit cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 40.2 | $ 36.7 | $ 7.6 |
Interest cost | 15.3 | 10 | 8.9 |
Expected return on plan assets | (7.5) | (7.2) | (3.7) |
Amortization of prior service (credit) cost | (5.7) | (5.7) | (5.7) |
Amortization of net loss (gain) | 0.4 | 6.6 | 3.8 |
Settlements loss (gain) recognized | 0 | 15.4 | 0.1 |
Curtailment (gain) loss recognized | (10.3) | (2.2) | (1.8) |
Net periodic benefit cost | 32.4 | 53.6 | 9.2 |
Other Post-Employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1.4 | 1.9 | 1.1 |
Interest cost | 2 | 1.8 | 1.9 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (5.9) | (5.9) | (5.9) |
Amortization of net loss (gain) | (0.1) | 0.1 | 0 |
Settlements loss (gain) recognized | 0 | 0 | 0 |
Curtailment (gain) loss recognized | (10.4) | 0 | (1.8) |
Net periodic benefit cost | (13) | (2.1) | (4.7) |
U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0.7 | 1.6 | 3.4 |
Expected return on plan assets | 0 | (0.9) | (2.6) |
Amortization of prior service (credit) cost | 0 | 0 | 0 |
Amortization of net loss (gain) | (0.7) | 2.3 | 1.2 |
Settlements loss (gain) recognized | 0 | 15.9 | 0 |
Curtailment (gain) loss recognized | 0 | 0 | 0 |
Net periodic benefit cost | 0 | 18.9 | 2 |
International Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 38.8 | 34.8 | 6.5 |
Interest cost | 12.6 | 6.6 | 3.6 |
Expected return on plan assets | (7.5) | (6.3) | (1.1) |
Amortization of prior service (credit) cost | 0.2 | 0.2 | 0.2 |
Amortization of net loss (gain) | 1.2 | 4.2 | 2.6 |
Settlements loss (gain) recognized | 0 | (0.5) | 0.1 |
Curtailment (gain) loss recognized | 0.1 | (2.2) | 0 |
Net periodic benefit cost | 45.4 | $ 36.8 | $ 11.9 |
International Plan | Other Post-Employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment (gain) loss recognized | $ (10.4) |
EMPLOYEE BENEFIT PLANS - Pre-ta
EMPLOYEE BENEFIT PLANS - Pre-tax amounts recognized in AOCI (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | $ 52.2 | $ 31.6 |
Prior service (cost) credit | 14.3 | 19.9 |
Total recognized in AOC(L)/I | 66.5 | 51.5 |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 3.8 | 1.7 |
Prior service (cost) credit | 16.3 | 22.2 |
Total recognized in AOC(L)/I | 20.1 | 23.9 |
U.S. Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 1.7 | 2.5 |
Prior service (cost) credit | 0 | 0 |
Total recognized in AOC(L)/I | 1.7 | 2.5 |
International Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 46.7 | 27.4 |
Prior service (cost) credit | (2) | (2.3) |
Total recognized in AOC(L)/I | $ 44.7 | $ 25.1 |
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, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | $ 20.8 | $ 87 |
Amortization of prior service cost (credit) | (5.7) | (5.7) |
Recognized net actuarial loss (gain) | 0.5 | 21.4 |
Effect of exchange rates | 0.4 | 3 |
Total recognized in OCI/(L) | 16 | 105.7 |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 2.3 | 1.4 |
Amortization of prior service cost (credit) | (5.9) | (5.9) |
Recognized net actuarial loss (gain) | (0.1) | 0.1 |
Effect of exchange rates | 0.1 | 0.3 |
Total recognized in OCI/(L) | (3.6) | (4.1) |
U.S. Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 0.7 | 0.4 |
Amortization of prior service cost (credit) | 0 | 0 |
Recognized net actuarial loss (gain) | (0.6) | 17.6 |
Effect of exchange rates | 0 | 0 |
Total recognized in OCI/(L) | 0.1 | 18 |
International Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 17.8 | 85.2 |
Amortization of prior service cost (credit) | 0.2 | 0.2 |
Recognized net actuarial loss (gain) | 1.2 | 3.7 |
Effect of exchange rates | 0.3 | 2.7 |
Total recognized in OCI/(L) | $ 19.5 | $ 91.8 |
EMPLOYEE BENEFIT PLANS - Amo115
EMPLOYEE BENEFIT PLANS - Amounts in AOCI to be amortized (Details) $ in Millions | Jun. 30, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service (cost) credit | $ 5.7 |
Net gain (loss) | 0.4 |
Total | 6.1 |
Other Post-Employment Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service (cost) credit | 5.9 |
Net gain (loss) | 0.1 |
Total | 6 |
U.S. Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service (cost) credit | 0 |
Net gain (loss) | 0.7 |
Total | 0.7 |
International Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service (cost) credit | (0.2) |
Net gain (loss) | (0.4) |
Total | $ (0.6) |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Assumptions (Details) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
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% |
Minimum | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rate assumed for next year | 7.40% | 7.20% | 7.20% |
Minimum | Other Post-Employment Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates, Benefit Obligation | 2.30% | 1.90% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 1.90% | 1.40% | 4.10% |
Maximum | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rate assumed for next year | 8.50% | 7.40% | 7.40% |
Maximum | Other Post-Employment Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates, Benefit Obligation | 4.20% | 7.60% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 7.60% | 8.00% | 4.60% |
U.S. Pension Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates, Benefit Obligation | 4.00% | 3.60% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 3.60% | ||
Expected long-term rate of return, Benefit Cost | 5.10% | ||
U.S. Pension Plan | Minimum | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 3.30% | 4.10% | |
U.S. Pension Plan | Maximum | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 3.80% | 4.50% | |
International Plan | Minimum | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates, Benefit Obligation | 0.60% | 0.40% | |
Rate of compensation growth, Benefit Obligation | 1.50% | 0.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 0.40% | 0.20% | 1.00% |
Future compensation growth rates, Benefit Cost | 1.50% | 1.50% | 1.50% |
Expected long-term rate of return, Benefit Cost | 1.80% | 1.60% | 2.30% |
International Plan | Maximum | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates, Benefit Obligation | 8.00% | 7.50% | |
Rate of compensation growth, Benefit Obligation | 5.80% | 6.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate, Benefit Cost | 7.50% | 7.80% | 2.70% |
Future compensation growth rates, Benefit Cost | 6.00% | 5.80% | 2.50% |
Expected long-term rate of return, Benefit Cost | 8.20% | 6.00% | 4.30% |
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, 2018USD ($) | |
Retirement Benefits [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 | (5.3) |
Effect of one percentage point increase on post-employment benefit obligation | 0.4 |
Effect of one percentage point decrease on post-employment benefit obligation | $ (0.4) |
EMPLOYEE BENEFIT PLANS - Target
EMPLOYEE BENEFIT PLANS - Target and weighted-average asset allocations (Details) - U.S. Pension Plan | Jun. 30, 2018 | Jun. 30, 2017 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations | 40.00% | |
Actual Plan Asset Allocations | 41.00% | 41.00% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations | 50.00% | |
Actual Plan Asset Allocations | 42.00% | 39.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations | 10.00% | |
Actual Plan Asset Allocations | 17.00% | 20.00% |
EMPLOYEE BENEFIT PLANS - Fair v
EMPLOYEE BENEFIT PLANS - Fair value of Plan Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | $ 262.2 | $ 234.6 | $ 95.6 |
Insurance contracts and other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 143.7 | 130.2 | $ 42.4 |
Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 262.2 | 234.6 | |
Recurring | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 118.5 | 104.4 | |
Recurring | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 0 | 0 | |
Recurring | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 143.7 | 130.2 | |
Recurring | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 63 | 53.4 | |
Recurring | Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 63 | 53.4 | |
Recurring | Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 0 | 0 | |
Recurring | Equity securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 0 | 0 | |
Recurring | Corporate securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 54.6 | 50.5 | |
Recurring | Corporate securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 54.6 | 50.5 | |
Recurring | Corporate securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 0 | 0 | |
Recurring | Corporate securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 0 | 0 | |
Recurring | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 0.9 | 0.5 | |
Recurring | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 0.9 | 0.5 | |
Recurring | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 0 | 0 | |
Recurring | Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 0 | 0 | |
Recurring | Insurance contracts and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 143.7 | 130.2 | |
Recurring | Insurance contracts and other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 0 | 0 | |
Recurring | Insurance contracts and other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | 0 | 0 | |
Recurring | Insurance contracts and other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension assets | $ 143.7 | $ 130.2 |
EMPLOYEE BENEFIT PLANS - Rec120
EMPLOYEE BENEFIT PLANS - Reconciliations of Level 3 plan assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets - beginning balance | $ 234.6 | $ 95.6 |
Plan assets from acquisitions | 0 | 168.7 |
Return on plan assets | 18.8 | 9.8 |
Effect of exchange rates | 2.5 | (3.6) |
Fair value of plan assets - ending balance | 262.2 | 234.6 |
Insurance contracts and other | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets - beginning balance | 130.2 | 42.4 |
Plan assets from acquisitions | 0 | 75.7 |
Return on plan assets | 14 | 4.7 |
Purchases, sales and settlements, net | 3.9 | 5.3 |
Effect of exchange rates | (4.4) | 2.1 |
Fair value of plan assets - ending balance | $ 143.7 | $ 130.2 |
EMPLOYEE BENEFIT PLANS - Expect
EMPLOYEE BENEFIT PLANS - Expected benefit payments (Details) $ in Millions | Jun. 30, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 43.9 |
2,020 | 30.4 |
2,021 | 30.7 |
2,022 | 33.5 |
2,023 | 32.5 |
2024 - 2027 | 190.6 |
Other Post-Employment Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 2.1 |
2,020 | 2.5 |
2,021 | 2.9 |
2,022 | 3.1 |
2,023 | 3.3 |
2024 - 2027 | 17.5 |
U.S. Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 1.3 |
2,020 | 1.3 |
2,021 | 1.3 |
2,022 | 1.3 |
2,023 | 1.2 |
2024 - 2027 | 5.9 |
International Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 40.5 |
2,020 | 26.6 |
2,021 | 26.5 |
2,022 | 29.1 |
2,023 | 28 |
2024 - 2027 | $ 167.2 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) € in Millions | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Jun. 30, 2017USD ($) | Jun. 30, 2017EUR (€) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Accumulated other comprehensive income | $ 158,800,000 | $ 4,400,000 | ||
Foreign exchange forward contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Accumulated cash flow hedges in AOCI, net of tax | 31,700,000 | 12,600,000 | ||
Cash flow hedge to be reclassified during next 12 months | 13,000,000 | |||
Foreign exchange forward contracts | Net investment hedge | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, notional amount | € | € 3,204.1 | € 656.7 | ||
Foreign exchange forward contracts | Other Foreign Currency Translation Adjustments | Net investment hedge | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Accumulated other comprehensive income | 115,000,000 | (23,700,000) | ||
Designated as Hedging Instrument | Interest Rate Swap | Interest Rate Risk | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, notional amount | $ 2,000,000,000 | $ 2,000,000,000 |
DERIVATIVE INSTRUMENTS - Gains
DERIVATIVE INSTRUMENTS - Gains and Losses Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flow hedging | Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | $ (0.3) | $ (0.8) | $ 6 |
Cash flow hedging | Interest rate swap contracts | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | 27 | 40.8 | (36.6) |
Net investment hedge | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | $ 138.7 | $ (21.2) | $ (2.5) |
DERIVATIVE INSTRUMENTS - Amount
DERIVATIVE INSTRUMENTS - Amount of Gains and Losses Reclassified from AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net revenues | $ 9,398 | $ 7,650.3 | $ 4,349.1 |
Cost of sales | 3,608.4 | 3,028.5 | 1,746 |
Interest income (expense), net | (265) | (218.6) | (81.9) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | Foreign exchange forward contracts | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net revenues | (0.8) | 2.4 | 5.5 |
Cost of sales | (0.7) | (2.2) | 0.7 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | Interest rate swap contracts | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest income (expense), net | $ 6.9 | $ (9.3) | $ (7.7) |
DERIVATIVE INSTRUMENTS - Amo125
DERIVATIVE INSTRUMENTS - Amount of Gains and Losses Related Derivative Financial Instruments Not Designated as Hedging Instruments (Details) - Derivatives not designated as hedges - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Selling, general and administrative | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Condensed Consolidated Statements of Operations Classification of Gain (Loss) Recognized in Operations | $ (0.8) | $ (0.1) | $ 1.8 |
Interest expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Condensed Consolidated Statements of Operations Classification of Gain (Loss) Recognized in Operations | 17.5 | (6.5) | (11.3) |
Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Condensed Consolidated Statements of Operations Classification of Gain (Loss) Recognized in Operations | $ 0.2 | $ (1.1) | (29.3) |
Foreign exchange forward contracts | Other expense, net | Brazilian Beauty Business | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Condensed Consolidated Statements of Operations Classification of Gain (Loss) Recognized in Operations | $ (29.6) |
MANDATORILY REDEEMABLE FINAN126
MANDATORILY REDEEMABLE FINANCIAL INTEREST (Details) - USD ($) $ in Millions | May 23, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jan. 01, 2014 |
Schedule of Equity Method Investments [Line Items] | |||||
Purchase of additional noncontrolling interest | $ 0 | $ 9.8 | $ 0.7 | ||
U.A.E. JV | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of redeemable noncontrolling interest | 25.00% | ||||
Mandatorily redeemable financial instrument liability | 8.2 | 5.2 | |||
U.A.E. JV | Other Noncurrent Liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Mandatorily redeemable financial instrument liability | 6.7 | 4.7 | |||
U.A.E. JV | Accrued Expenses and Other Current Liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Mandatorily redeemable financial instrument liability | 1.5 | 0.5 | |||
U.A.E. JV | Primary Beneficiary | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint venture total assets | 33.2 | 22.8 | |||
Joint venture total liabilities | 20.2 | 16.5 | |||
South-east Asian Subsidiary | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of redeemable noncontrolling interest | 49.00% | ||||
Mandatorily redeemable financial instrument liability | 45.1 | 49.3 | |||
Purchase of additional noncontrolling interest | $ 45 | ||||
South-east Asian Subsidiary | Other Noncurrent Liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Mandatorily redeemable financial instrument liability | 0 | 41.7 | |||
South-east Asian Subsidiary | Accrued Expenses and Other Current Liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Mandatorily redeemable financial instrument liability | $ 45.1 | $ 7.6 |
REDEEMABLE NONCONTROLLING IN127
REDEEMABLE NONCONTROLLING INTERESTS - Narrative (Details) - USD ($) $ in Millions | Jul. 01, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Oct. 15, 2017 | Feb. 01, 2017 |
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Noncontrolling interest period increase (decrease), percent | 0.10% | ||||||||
Additional paid-in capital | $ 10,750.8 | $ 11,203.2 | |||||||
Net proceeds from issuance of Class A Common Stock | 22.6 | 22.8 | $ 44.7 | ||||||
Other comprehensive income (loss), financial liability, fair value option, after reclassification adjustment, tax, attributable to noncontrolling interest | $ 79.2 | ||||||||
Redeemable noncontrolling interest balances | 661.3 | 551.1 | |||||||
Reclassifications of temporary to permanent equity | $ 17 | ||||||||
United Arab Emirates subsidiary | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Percentage of redeemable noncontrolling interest | 25.00% | ||||||||
Redeemable noncontrolling interest balances | $ 63.6 | 70.2 | |||||||
Call right percentage | 25.00% | ||||||||
Remaining call option percentage | 25.00% | ||||||||
Younique, LLC | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Percentage of redeemable noncontrolling interest | 40.00% | ||||||||
Noncontrolling interest, increase in ownership percentage by parent | 0.70% | ||||||||
Noncontrolling interest, period increase (decrease) | $ 7.6 | ||||||||
Additional paid-in capital | $ 7.4 | 7.4 | |||||||
Net proceeds from issuance of Class A Common Stock | $ 0.2 | ||||||||
Redeemable noncontrolling interest balances | $ 597.7 | $ 481.6 | |||||||
Foundation, LLC | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Percentage of redeemable noncontrolling interest | 40.60% | ||||||||
Percentage of shares acquired | 59.40% | 60.00% | |||||||
Foundation, LLC | Younique, LLC | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Percentage of shares acquired | 40.00% | ||||||||
Additional Paid-in Capital | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Reclassifications of temporary to permanent equity | $ 17 |
REDEEMABLE NONCONTROLLING IN128
REDEEMABLE NONCONTROLLING INTERESTS - Redeemable Noncontrolling Interest Adjustments (Details) - United Arab Emirates subsidiary | 12 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Redeemable Noncontrolling Interest [Line Items] | ||
Percentage of redeemable noncontrolling interest | 25.00% | |
Earliest exercise date | Dec. 1, 2028 | |
Remaining call option percentage | 25.00% | |
Redemption Assumptions, EBIT Average Period | 3 years | |
Redemption Assumptions, Percentage Applied to EBIT Average | 600.00% |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) | May 09, 2018USD ($)$ / shares | Feb. 08, 2018USD ($)$ / shares | Nov. 09, 2017USD ($)$ / shares | Aug. 22, 2017USD ($)$ / shares | May 10, 2017USD ($)$ / shares | Feb. 09, 2017USD ($)$ / shares | Dec. 09, 2016USD ($)$ / shares | Oct. 01, 2016shares | Sep. 30, 2016shares | Aug. 01, 2016USD ($)$ / shares | Dec. 17, 2015USD ($)$ / shares | Dec. 03, 2015shares | Sep. 11, 2015USD ($)$ / shares | Jun. 30, 2018USD ($)vote$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | May 18, 2018shares | May 17, 2018shares | Nov. 16, 2017shares | Mar. 27, 2017shares | Feb. 16, 2017shares | Nov. 25, 2016shares | Sep. 29, 2016shares | Sep. 28, 2016shares | Feb. 03, 2016USD ($) | Jun. 30, 2015USD ($) |
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Dividends ($0.500 per Common Share) | $ | $ (377,600,000) | $ 22,800,000 | ||||||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||||||||||||||||
Preferred stock, shares authorized (shares) | 20,000,000 | 20,000,000 | ||||||||||||||||||||||||
Preferred stock, shares outstanding (shares) | 5,000,000 | 4,200,000 | ||||||||||||||||||||||||
Dividends declared (in dollars per share) | $ / shares | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.275 | $ 0.25 | $ 0.5 | $ 0.65 | $ 0.25 | ||||||||||||||
Dividends payable | $ | $ 800,000 | $ 800,000 | $ 900,000 | $ 800,000 | $ 600,000 | $ 600,000 | $ 600,000 | $ 1,000,000 | $ 1,100,000 | $ 3,300,000 | $ 2,800,000 | |||||||||||||||
Cost of shares repurchased (in millions) | $ | $ 3,600,000 | 36,300,000 | $ 794,900,000 | |||||||||||||||||||||||
Galleria | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Issuance of Class A Common Stock for acquisition (shares) | 409,700,000 | |||||||||||||||||||||||||
Transaction Agreement with P&G | P&G Beauty Brands | P&G | Maximum | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Dividends declared (in dollars per share) | $ / shares | $ 0.25 | |||||||||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Reduction of dividend accrual recorded in prior period | $ | $ 900,000 | |||||||||||||||||||||||||
Restricted Stock Units | Additional Paid-in Capital | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Reduction of dividend accrual recorded in prior period | $ | 600,000 | 400,000 | 300,000 | |||||||||||||||||||||||
Restricted Stock Units | Accrued Expenses and Other Current Liabilities | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Dividends payable | $ | 800,000 | 1,000,000 | $ 0 | |||||||||||||||||||||||
Restricted Stock Units | Other Noncurrent Liabilities | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Dividends payable | $ | 5,200,000 | 3,200,000 | $ 1,800,000 | |||||||||||||||||||||||
Platinum | Employee Stock Options, Restricted Stock Units (RSUs) And Employee Stock Ownership Program | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Dividends ($0.500 per Common Share) | $ | $ 22,600,000 | $ 21,300,000 | $ 40,900,000 | |||||||||||||||||||||||
Common Class A | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||||||||||||||||
Voting rights per share | vote | 1 | |||||||||||||||||||||||||
Common stock, shares authorized (shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 800,000,000 | ||||||||||||||||||||||
Common stock, shares outstanding (shares) | 750,700,000 | 747,900,000 | ||||||||||||||||||||||||
Amount remaining under current repurchase program | $ | $ 396,800,000 | |||||||||||||||||||||||||
Number of shares repurchased (less than 0.1 million shares of Class B) | 0 | 1,400,000 | 27,400,000 | |||||||||||||||||||||||
Cost of shares repurchased (in millions) | $ | $ 0 | $ 36,300,000 | $ 767,000,000 | |||||||||||||||||||||||
Common Class A | Maximum | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Shares repurchased, cost per share (in dollars per share) | $ / shares | $ 0 | $ 27.40 | $ 30.35 | |||||||||||||||||||||||
Common Class A | Platinum | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Shares issued (shares) | 2,900,000 | 2,500,000 | 4,700,000 | |||||||||||||||||||||||
Common Class A | Majority Shareholders | JAB Cosmetics B.V. | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Conversion of common stock (shares) | 262,000,000 | |||||||||||||||||||||||||
Open market shares acquired by related party (in shares) | 14,900,000 | 2,600,000 | ||||||||||||||||||||||||
Common Class A | Investor | Stock Purchase Agreement with Shareholder Holding More than 5% of Class A Common Stock | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Percentage of redeemable noncontrolling interest | 5.00% | |||||||||||||||||||||||||
Number of shares repurchased (less than 0.1 million shares of Class B) | 1,000,000 | |||||||||||||||||||||||||
Shares repurchased, cost per share (in dollars per share) | $ / shares | $ 27.91 | |||||||||||||||||||||||||
Cost of shares repurchased (in millions) | $ | $ 27,900,000 | |||||||||||||||||||||||||
Series A Preferred Stock | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Number of votes entitled to holders | 0 | |||||||||||||||||||||||||
Preferred stock, shares authorized (shares) | 6,300,000 | 6,319,641 | 6,506,106 | |||||||||||||||||||||||
Preferred stock, shares outstanding (shares) | 5,000,000 | 1,000,000 | 1,000,000 | 300,000 | 1,000,000 | |||||||||||||||||||||
Amount of preferred stock | $ | $ 2,700,000 | |||||||||||||||||||||||||
Series A Preferred Stock | Other Noncurrent Liabilities | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Amount of preferred stock | $ | $ 4,300,000 | |||||||||||||||||||||||||
Series A Preferred Stock | Board of Directors Chairman | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||||||||||||||||
Tranche One | Series A Preferred Stock | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Preferred stock, shares outstanding (shares) | 1,000,000 | |||||||||||||||||||||||||
Tranche Two | Series A Preferred Stock | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Preferred stock, shares outstanding (shares) | 1,700,000 | |||||||||||||||||||||||||
Tranche Three | Series A Preferred Stock | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Preferred stock, shares outstanding (shares) | 1,000,000 | |||||||||||||||||||||||||
Tranche Four | Series A Preferred Stock | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Preferred stock, shares outstanding (shares) | 300,000 | |||||||||||||||||||||||||
Tranche Five | Series A Preferred Stock | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Preferred stock, shares outstanding (shares) | 1,000,000 | |||||||||||||||||||||||||
Incremental Repurchase Program | Common Class A | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Stock repurchase program, authorized amount | $ | $ 500,000,000 |
EQUITY - Issuance of Series A P
EQUITY - Issuance of Series A Preferred Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Nov. 16, 2017 | Mar. 27, 2017 | Feb. 16, 2017 | Nov. 25, 2016 | Apr. 30, 2015 | |
Class of Stock [Line Items] | ||||||||
Number of Shares Awarded at Grant Date (millions of shares) | 5 | 4.2 | ||||||
Number of Shares Outstanding (millions of shares) | 5 | 4.2 | ||||||
Series A Preferred Stock - April 2015 - 1 | ||||||||
Class of Stock [Line Items] | ||||||||
Number of Shares Awarded at Grant Date (millions of shares) | 6.8 | |||||||
Number of Shares Outstanding (millions of shares) | 1.1 | |||||||
Hurdle Price per Share | $ 27.97 | |||||||
Series A Preferred Stock - April 2015 - 2 | ||||||||
Class of Stock [Line Items] | ||||||||
Number of Shares Awarded at Grant Date (millions of shares) | 0.6 | |||||||
Number of Shares Outstanding (millions of shares) | 0.6 | |||||||
Hurdle Price per Share | $ 26.87 | |||||||
Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Number of Shares Awarded at Grant Date (millions of shares) | 1 | 1 | 0.5 | 1 | ||||
Number of Shares Outstanding (millions of shares) | 5 | 1 | 1 | 0.3 | 1 | |||
Hurdle Price per Share | $ 19.85 | $ 22.39 | $ 22.66 | $ 22.34 | ||||
Selling, General and Administrative | ||||||||
Class of Stock [Line Items] | ||||||||
Share-based compensation expense | $ 33.4 | $ 29 | $ 35.4 | |||||
Selling, General and Administrative | Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Share-based compensation expense | $ (1.7) | $ 3.8 |
EQUITY - Schedule of Declared D
EQUITY - Schedule of Declared Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 14, 2018 | May 31, 2018 | May 09, 2018 | Mar. 15, 2018 | Feb. 28, 2018 | Feb. 08, 2018 | Dec. 14, 2017 | Nov. 30, 2017 | Nov. 09, 2017 | Sep. 14, 2017 | Sep. 01, 2017 | Aug. 22, 2017 | Jun. 13, 2017 | May 10, 2017 | Mar. 10, 2017 | Feb. 09, 2017 | Dec. 28, 2016 | Dec. 09, 2016 | Aug. 19, 2016 | Aug. 01, 2016 | Oct. 15, 2015 | Sep. 11, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Equity [Abstract] | |||||||||||||||||||||||||
Dividends declared (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.275 | $ 0.25 | $ 0.5 | $ 0.65 | $ 0.25 | |||||||||||||
Dividend Value | $ 94.6 | $ 94.6 | $ 94.6 | $ 94.4 | $ 94 | $ 94 | $ 94 | $ 93.4 | $ 90.1 | $ 378.2 | $ 375.4 | ||||||||||||||
Dividends Paid | $ 93.8 | $ 93.8 | $ 93.7 | $ 93.6 | $ 93.4 | $ 93.4 | $ 93.4 | $ 92.4 | $ 89 | 374.9 | 372.6 | ||||||||||||||
Dividends payable | $ 0.8 | $ 0.8 | $ 0.9 | $ 0.8 | $ 0.6 | $ 0.6 | $ 0.6 | $ 1 | $ 1.1 | $ 3.3 | $ 2.8 |
EQUITY - Accumulated Other Comp
EQUITY - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
BALANCE | $ 9,317.7 | $ 367.1 | $ 984.7 |
Total other comprehensive income (loss), net of tax | 148.4 | 244 | 34.8 |
Adjustment due to the adoption of ASU 2018-02 | 8.3 | ||
BALANCE | 8,855.2 | 9,317.7 | 367.1 |
Total | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
BALANCE | 4.4 | (239.7) | (274) |
Other comprehensive income before reclassifications | 155.2 | 238.4 | |
Less: Net amounts reclassified from AOCI/(L) | (7.3) | 5.7 | |
Total other comprehensive income (loss), net of tax | 147.9 | 244.1 | |
Adjustment due to the adoption of ASU 2018-02 | 6.5 | ||
BALANCE | 158.8 | 4.4 | (239.7) |
(Losses) Gains on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
BALANCE | 12.6 | (28.9) | |
Other comprehensive income before reclassifications | 19.2 | 35.9 | |
Less: Net amounts reclassified from AOCI/(L) | (4) | 5.6 | |
Total other comprehensive income (loss), net of tax | 15.2 | 41.5 | |
Adjustment due to the adoption of ASU 2018-02 | 3.9 | ||
BALANCE | 31.7 | 12.6 | (28.9) |
Accumulated Net Investment Gain (Loss) Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
BALANCE | (23.7) | (2.5) | |
Other comprehensive income before reclassifications | 138.7 | (21.2) | |
Less: Net amounts reclassified from AOCI/(L) | 0 | 0 | |
Total other comprehensive income (loss), net of tax | 138.7 | (21.2) | |
Adjustment due to the adoption of ASU 2018-02 | 0 | ||
BALANCE | 115 | (23.7) | (2.5) |
Amortization of actuarial losses | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Less: Net amounts reclassified from AOCI/(L) | 5.2 | 0.4 | |
Amortization of actuarial gains (losses), tax | 1.9 | 0.3 | |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
BALANCE | (20.8) | (164) | |
Other comprehensive income before reclassifications | (23.5) | 143.2 | |
Less: Net amounts reclassified from AOCI/(L) | 0 | 0 | |
Total other comprehensive income (loss), net of tax | (23.5) | 143.2 | |
Adjustment due to the adoption of ASU 2018-02 | 0 | ||
BALANCE | (44.3) | (20.8) | (164) |
Pension and Other Post-Employment Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
BALANCE | 36.3 | (44.3) | |
Other comprehensive income before reclassifications | 20.8 | 80.5 | |
Less: Net amounts reclassified from AOCI/(L) | (3.3) | 0.1 | |
Total other comprehensive income (loss), net of tax | 17.5 | 80.6 | |
Adjustment due to the adoption of ASU 2018-02 | 2.6 | ||
BALANCE | $ 56.4 | $ 36.3 | $ (44.3) |
EQUITY - Schedule of Share Repu
EQUITY - Schedule of Share Repurchase Activities (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Equity, Class of Treasury Stock [Line Items] | |||
Cost of shares repurchased (in millions) | $ 3.6 | $ 36.3 | $ 794.9 |
Common Class A | |||
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares repurchased (in millions) | 0 | 1.4 | 27.4 |
Cost of shares repurchased (in millions) | $ 0 | $ 36.3 | $ 767 |
Common Class A | Minimum | |||
Equity, Class of Treasury Stock [Line Items] | |||
Fair value of shares repurchased per share | $ 0 | $ 25.35 | $ 25.10 |
Common Class A | Maximum | |||
Equity, Class of Treasury Stock [Line Items] | |||
Fair value of shares repurchased per share | $ 0 | $ 27.40 | $ 30.35 |
SHARE-BASED COMPENSATION PLA134
SHARE-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 24, 2015 | Jul. 21, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant | 58,600,000 | ||||
Related tax benefits for share-based compensation | $ 2.8 | $ 4.4 | $ 6.7 | ||
Granted (in shares) | 5,900,000 | 9,300,000 | |||
Expected life | 7 years 6 months | 7 years 6 months | |||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding options grant price (dollars per share) | $ 6.40 | ||||
Exercisable options grant price (dollars per share) | 6.40 | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding options grant price (dollars per share) | 20.42 | ||||
Exercisable options grant price (dollars per share) | $ 10.50 | ||||
Selling, general and administrative | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | $ 33.4 | $ 29 | $ 35.4 | ||
EOP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares purchased during period | 2,000,000 | 800,000 | 100,000 | ||
Series A Preferred Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized share-based compensation expense | $ 6.4 | ||||
Weighted-average period for unrecognized share-based compensation | 3 years 4 months 17 days | ||||
Stock options vesting period | 5 years | ||||
Nonqualified stock options exercise period | 2 years | ||||
Nonqualified stock options contractual life | 7 years | ||||
Compensation expense | $ 0.1 | $ 4.4 | $ 2 | ||
Expected life | 4 years 6 months 7 days | 5 years 10 months 10 days | 4 years 9 months 15 days | ||
Phantom units granted (in shares) | 1,000,000 | ||||
Series A Preferred Stock | Selling, general and administrative | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | $ (1.7) | $ 3.8 | |||
Restricted And Other Share Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized share-based compensation expense | 72.6 | ||||
Weighted-average period for unrecognized share-based compensation | 3 years 3 months 4 days | ||||
Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | 11.9 | 9.1 | $ 14.7 | ||
Total unrecognized share-based compensation expense | $ 38.4 | ||||
Weighted-average period for unrecognized share-based compensation | 3 years 10 months 28 days | ||||
Stock options vesting period | 5 years | ||||
Nonqualified stock options exercise period | 5 years | ||||
Nonqualified stock options contractual life | 10 years | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | $ 21.4 | 15.4 | 18.2 | ||
Phantom units granted (in shares) | 3,800,000 | ||||
Total intrinsic value of restricted shares vested and settled | $ 12.5 | $ 3.5 | 4 | ||
Restricted Stock Units | Omnibus Long-Term Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Phantom units granted (in shares) | 3,700,000 | 2,700,000 | |||
Restricted Stock Units | 2007 Stock Plan for Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Phantom units granted (in shares) | 100,000 | 100,000 | |||
Phantom Units | CEO | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | $ 8 | ||||
Phantom units granted (in shares) | 300,000 | ||||
Phantom units value | $ 8.1 | ||||
Phantom Units | Common Class A | CEO | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Phantom units value | $ 8 | ||||
Share equivalent of Class A Common Stock | 1 |
SHARE-BASED COMPENSATION PLA135
SHARE-BASED COMPENSATION PLANS - Black-Scholes Valuation Assumptions (Details) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 7 years 6 months | 7 years 6 months | |
Risk-free interest rate | 2.19% | 1.60% | |
Expected volatility | 36.03% | 36.74% | |
Expected dividend yield | 2.98% | 1.62% | |
Series A Preferred Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 4 years 6 months 7 days | 5 years 10 months 10 days | 4 years 9 months 15 days |
Risk-free interest rate | 2.70% | 1.99% | 1.01% |
Expected volatility | 35.00% | 30.00% | 36.74% |
Expected dividend yield | 3.55% | 2.67% | 0.96% |
SHARE-BASED COMPENSATION PLA136
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, 2018 | Jun. 30, 2017 | |
Shares | ||
Outstanding, beginning balance (in shares) | 12 | |
Granted (in shares) | 5.9 | 9.3 |
Exercised (in shares) | (2.3) | |
Forfeited or expired (in shares) | (2.2) | |
Outstanding, ending balance (in shares) | 13.4 | 12 |
Vested and expected to vest (in shares) | 10.5 | |
Exercisable (in shares) | 1.7 | |
Weighted Average Exercise Price | ||
Outstanding, weighted average exercise price, beginning balance (in dollars per share) | $ 15.64 | |
Granted (in dollars per share) | 16.86 | |
Exercised (in dollars per share) | 9.76 | |
Forfeited or expired (in dollars per share) | 18.45 | |
Outstanding, weighted average exercise price, ending balance (in dollars per share) | 16.75 | $ 15.64 |
Vested and expected to vest (in dollars per share) | 16.63 | |
Exercisable (in dollars per share) | $ 9.71 | |
Aggregate Intrinsic Value and Weighted Average Remaining Contractual Term | ||
Vested and expected to vest, aggregate intrinsic value | $ 0 | |
Exercisable, aggregate intrinsic value | $ 7.4 | |
Vested and expected to vest, weighted average remaining contractual term | 7 years 8 months 23 days | |
Exercisable, weighted average remaining contractual term | 1 year 11 months 16 days |
SHARE-BASED COMPENSATION PLA137
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, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted-average grant date fair value of stock options (in dollars per share) | $ 4.87 | $ 6.34 | $ 0 |
Intrinsic value of options exercised | $ 32.2 | $ 26.3 | $ 87.6 |
SHARE-BASED COMPENSATION PLA138
SHARE-BASED COMPENSATION PLANS - Non-vested Nonqualified Stock Options (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Number of Shares | |||
Granted (in shares) | 5.9 | 9.3 | |
Weighted Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 4.87 | $ 6.34 | $ 0 |
Non Qualified Options | |||
Number of Shares | |||
Non-vested, beginning balance (in shares) | 8 | ||
Granted (in shares) | 5.9 | ||
Forfeited (in shares) | (2.2) | ||
Non-vested, ending balance (in shares) | 11.7 | 8 | |
Weighted Average Grant Date Fair Value | |||
Non-vested, beginning balance (in dollars per share) | $ 6.33 | ||
Granted (in dollars per share) | 4.87 | ||
Forfeited (in dollars per share) | 6.27 | ||
Non-vested, ending balance (in dollars per share) | $ 5.60 | $ 6.33 |
SHARE-BASED COMPENSATION PLA139
SHARE-BASED COMPENSATION PLANS - Significant Assumptions Used in Binomial Lattice Model (Details) (Details) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life, in years | 7 years 6 months | 7 years 6 months | |
Expected volatility | 36.03% | 36.74% | |
Risk-free rate of return | 2.19% | 1.60% | |
Dividend yield on Class A Common Stock | 2.98% | 1.62% | |
Series A Preferred Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life, in years | 4 years 6 months 7 days | 5 years 10 months 10 days | 4 years 9 months 15 days |
Expected volatility | 35.00% | 30.00% | 36.74% |
Risk-free rate of return | 2.70% | 1.99% | 1.01% |
Dividend yield on Class A Common Stock | 3.55% | 2.67% | 0.96% |
Yield on cash | 4.70% |
SHARE-BASED COMPENSATION PLA140
SHARE-BASED COMPENSATION PLANS - Outstanding Series A Preferred Stock Activity (Details) - Series A Preferred Stock $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Shares | |
Outstanding, beginning of period (in shares) | shares | 4.2 |
Granted (in shares) | shares | 1 |
Forfeited (in shares) | shares | (0.2) |
Outstanding, end of period (in shares) | shares | 5 |
Vested and expected to vest (in shares) | shares | 4.4 |
Weighted Average Exercise Price | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 24.66 |
Granted (in dollars per share) | $ / shares | 19.85 |
Forfeited (in dollars per share) | $ / shares | 22.66 |
Outstanding, end of period (in dollars per share) | $ / shares | 23.62 |
Vested and expected to vest (in dollars per share) | $ / shares | $ 23.57 |
Aggregate Intrinsic Value and Weighted Average Remaining Contractual Term | |
Vested and expected to vest, aggregate intrinsic value | $ | $ 0 |
Vested and expected to vest, weighted average remaining contractual term | 5 years 2 months 1 day |
SHARE-BASED COMPENSATION PLA141
SHARE-BASED COMPENSATION PLANS - Non-Vested Shares of Series A Preferred Stock (Details) - Series A Preferred Stock shares in Millions | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 3.2 |
Granted (in shares) | shares | 1 |
Forfeited (in shares) | shares | 0.2 |
Outstanding, ending balance (in shares) | shares | 4 |
Weighted Average Grant Date Fair Value | |
Outstanding and nonvested, beginning balance (in dollars per share) | $ / shares | $ 5.19 |
Granted (in dollars per share) | $ / shares | 4.12 |
Forfeited (in dollars per share) | $ / shares | 3.63 |
Outstanding and nonvested, ending balance (in dollars per share) | $ / shares | $ 4.99 |
SHARE-BASED COMPENSATION PLA142
SHARE-BASED COMPENSATION PLANS - RSU Activity (Details) - Restricted Stock Units shares in Millions, $ in Millions | 12 Months Ended |
Jun. 30, 2018USD ($)shares | |
Shares | |
Outstanding, beginning balance (in shares) | 5.6 |
Granted (in shares) | 3.8 |
Settled (in shares) | (0.7) |
Cancelled (in shares) | (1.2) |
Outstanding, ending balance (in shares) | 7.5 |
Vested and expected to vest (in shares) | 6.1 |
Vested and expected to vest, aggregate intrinsic value | $ | $ 84.5 |
Vested and expected to vest, weighted average remaining contractual term | 3 years 1 month 13 days |
SHARE-BASED COMPENSATION PLA143
SHARE-BASED COMPENSATION PLANS - Outstanding and Non-vested RSUs Activity (Details) - Restricted Stock Units shares in Millions | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 5.3 |
Granted (in shares) | shares | 3.8 |
Vested (in shares) | shares | (0.7) |
Cancelled (in shares) | shares | (1.2) |
Outstanding, ending balance (in shares) | shares | 7.2 |
Weighted Average Grant Date Fair Value | |
Outstanding and nonvested, beginning balance (in dollars per share) | $ / shares | $ 21.76 |
Granted (in dollars per share) | $ / shares | 16.53 |
Vested (in dollars per share) | $ / shares | 16.40 |
Cancelled (in dollars per share) | $ / shares | 20.94 |
Outstanding and nonvested, ending balance (in dollars per share) | $ / shares | $ 19.57 |
NET (LOSS) INCOME ATTRIBUTAB144
NET (LOSS) INCOME ATTRIBUTABLE TO COTY INC. PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |||
Net (loss) income attributable to Coty Inc. | $ (168.8) | $ (422.2) | $ 156.9 |
Weighted-average common shares outstanding: | |||
Weighted-average common shares outstanding—Basic (in shares) | 749.7 | 642.8 | 345.5 |
Effect of dilutive stock options and Series A Preferred Stock (in shares) | 0 | 0 | 5.7 |
Effect of restricted stock and RSUs (in shares) | 0 | 0 | 3 |
Weighted-average common shares outstanding—Diluted (in shares) | 749.7 | 642.8 | 354.2 |
Net (loss) income attributable to Coty Inc. per common share: | |||
Basic (dollars per shares) | $ (0.23) | $ (0.66) | $ 0.45 |
Diluted (dollars per shares) | $ (0.23) | $ (0.66) | $ 0.44 |
Outstanding Stock Options and Series A Preferred Stock | |||
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 | 3 | ||
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 | 0.1 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) R$ in Millions, $ in Millions | Jun. 30, 2018USD ($) | Jun. 30, 2018BRL (R$) | Jun. 30, 2017USD ($) |
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 135.4 | $ 154.6 | |
Brazilian Tax Assessments | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 65 | R$ 249.0 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) $ / shares in Units, € in Millions, $ in Millions | Aug. 21, 2018$ / shares | Aug. 20, 2018USD ($) | Jul. 03, 2018USD ($) | Jul. 03, 2018EUR (€) | May 09, 2018$ / shares | Feb. 08, 2018$ / shares | Nov. 09, 2017$ / shares | Aug. 22, 2017$ / shares | May 10, 2017$ / shares | Feb. 09, 2017$ / shares | Dec. 09, 2016$ / shares | Aug. 01, 2016$ / shares | Sep. 11, 2015$ / shares | Jun. 30, 2018$ / shares | Jun. 30, 2017$ / shares | Jun. 30, 2016$ / shares |
Subsequent Event [Line Items] | ||||||||||||||||
Dividends declared (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.275 | $ 0.25 | $ 0.5 | $ 0.65 | $ 0.25 | ||||
Subsequent Event | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Trademarks acquired | $ 40.8 | € 35 | ||||||||||||||
Restructuring and related cost, expected cost | $ | $ 250 | |||||||||||||||
Restructuring and Related Cost, Term | 3 years | |||||||||||||||
Common Stock | Subsequent Event | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Dividends declared (in dollars per share) | $ 0.125 |
VALUATION AND QUALIFYING ACC147
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 58.5 | $ 35.2 | $ 19.6 |
Balance Received through Acquisition | 0 | 0 | 0 |
Charged to Costs and Expenses | 16.3 | 32.8 | 21.9 |
Deductions | 7 | (9.5) | (6.3) |
Balance at End of Period | 81.8 | 58.5 | 35.2 |
Allowance for customer returns | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 67.3 | 57.3 | 59.9 |
Balance Received through Acquisition | 10.1 | 11.4 | 0 |
Charged to Costs and Expenses | 169.8 | 165.7 | 132.8 |
Deductions | (166.1) | (167.1) | (135.4) |
Balance at End of Period | 81.1 | 67.3 | 57.3 |
Deferred tax valuation allowances | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 60.3 | 179.2 | 81.9 |
Balance Received through Acquisition | 0 | 0 | 0 |
Charged to Costs and Expenses | 54.7 | 9.2 | 117.9 |
Deductions | (10.4) | (128.1) | (20.6) |
Balance at End of Period | $ 104.6 | $ 60.3 | $ 179.2 |