Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Aug. 21, 2019 | Dec. 31, 2018 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35964 | ||
Entity Registrant Name | COTY INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-3823358 | ||
Entity Address, Address Line One | 350 Fifth Avenue, | ||
Entity Address, City or Town | New York, | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10118 | ||
City Area Code | 212 | ||
Local Phone Number | 389-7300 | ||
Title of 12(b) Security | Class A Common Stock, $0.01 par value | ||
Trading Symbol | COTY | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,900 | ||
Entity Common Stock, Shares Outstanding | 754,196,725 | ||
Current Fiscal Year End Date | --06-30 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001024305 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | |||
Net revenues | $ 8,648.5 | $ 9,398 | $ 7,650.3 |
Cost of sales | 3,306.5 | 3,607.8 | 3,028.3 |
Gross profit | 5,342 | 5,790.2 | 4,622 |
Selling, general and administrative expenses | 4,563.9 | 5,018.1 | 4,040.7 |
Amortization expense | 353.5 | 352.8 | 275.1 |
Restructuring costs | 44.2 | 173.2 | 374.8 |
Acquisition-related costs | 0 | 64.2 | 355.4 |
Asset impairment charges | 3,851.9 | 0 | 0 |
Loss (gain) on sale of brand assets | 0 | 28.6 | (3.1) |
Operating (loss) income | (3,471.5) | 153.3 | (420.9) |
Interest expense, net | 275.7 | 265 | 218.6 |
Loss on early extinguishment of debt | 0 | 10.7 | 0 |
Other expense, net | 30.9 | 30.1 | 18.5 |
Loss before income taxes | (3,778.1) | (152.5) | (658) |
Benefit for income taxes | (8.5) | (24.7) | (259.5) |
Net loss | (3,769.6) | (127.8) | (398.5) |
Net income attributable to noncontrolling interests | 2.5 | 2 | 15.4 |
Net income attributable to redeemable noncontrolling interests | 12.1 | 39 | 8.3 |
Net loss attributable to Coty Inc. | $ (3,784.2) | $ (168.8) | $ (422.2) |
Net loss attributable to Coty Inc. per common share: | |||
Basic (dollars per shares) | $ (5.04) | $ (0.23) | $ (0.66) |
Diluted (dollars per shares) | $ (5.04) | $ (0.23) | $ (0.66) |
Weighted-average common shares outstanding: | |||
Basic (shares) | 751.2 | 749.7 | 642.8 |
Diluted (shares) | 751.2 | 749.7 | 642.8 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (3,769.6) | $ (127.8) | $ (398.5) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (113.2) | 115.7 | 121.9 |
Net unrealized derivative gain (loss) on cash flow hedges, net of taxes of $14.0, $(2.2) and $(7.7), respectively | (45) | 15.2 | 41.5 |
Pension and other post-employment benefits, net of tax of $17.3, $1.5 and $(25.1), respectively | (59.3) | 17.5 | 80.6 |
Total other comprehensive (loss) income, net of tax | (217.5) | 148.4 | 244 |
Comprehensive (loss) income | (3,987.1) | 20.6 | (154.5) |
Comprehensive income attributable to noncontrolling interests: | |||
Net income | 2.5 | 2 | 15.4 |
Foreign currency translation adjustment | 0.1 | 0.5 | (0.1) |
Total comprehensive income attributable to noncontrolling interests | 2.6 | 2.5 | 15.3 |
Comprehensive income attributable to redeemable noncontrolling interests: | |||
Net income | 12.1 | 39 | 8.3 |
Comprehensive loss attributable to Coty Inc. | $ (4,001.8) | $ (20.9) | $ (178.1) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized derivative gain (loss) on cash flow hedges, tax (benefit) | $ 14 | $ (2.2) | $ (7.7) |
Pension and other post-employment benefits adjustment, tax (benefit) | $ 17.3 | $ 1.5 | $ (25.1) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 340.4 | $ 331.6 |
Restricted cash | 40 | 30.6 |
Trade receivables—less allowances of $48.1 and $81.8, respectively | 1,161.2 | 1,536 |
Inventories | 1,153.3 | 1,148.9 |
Prepaid expenses and other current assets | 577.8 | 603.9 |
Total current assets | 3,272.7 | 3,651 |
Property and equipment, net | 1,600.6 | 1,680.8 |
Goodwill | 5,073.8 | 8,607.1 |
Other intangible assets, net | 7,422.3 | 8,284.4 |
Deferred income taxes | 146.3 | 107.4 |
Other noncurrent assets | 149.7 | 299.5 |
TOTAL ASSETS | 17,665.4 | 22,630.2 |
Current liabilities: | ||
Accounts payable | 1,732.7 | 1,928.6 |
Accrued expenses and other current liabilities | 1,483.7 | 1,844.4 |
Short-term debt and current portion of long-term debt | 193.8 | 218.9 |
Income and other taxes payable | 66.9 | 52.1 |
Total current liabilities | 3,477.1 | 4,044 |
Long-term debt, net | 7,469.9 | 7,305.4 |
Pension and other post-employment benefits | 593.5 | 533.3 |
Deferred income taxes | 652.5 | 842.5 |
Other noncurrent liabilities | 427.2 | 388.5 |
Total liabilities | 12,620.2 | 13,113.7 |
COMMITMENTS AND CONTINGENCIES (Note 25) | ||
REDEEMABLE NONCONTROLLING INTERESTS | 451.8 | 661.3 |
EQUITY: | ||
Preferred stock, $0.01 par value; 20.0 shares authorized; 9.4 and 5.0 issued and outstanding, at June 30, 2019 and 2018, respectively | 0.1 | 0 |
Class A Common Stock, $0.01 par value; 1,000.0 shares authorized, 819.2 and 815.8 issued and 754.2 and 750.7 outstanding at June 30, 2019 and 2018, respectively | 8.1 | 8.1 |
Additional paid-in capital | 10,620.5 | 10,750.8 |
Accumulated deficit | (4,541.2) | (626.2) |
Accumulated other comprehensive (loss) income | (58.8) | 158.8 |
Treasury stock—at cost, shares: 65.0 at June 30, 2019 and 2018, respectively | (1,441.8) | (1,441.8) |
Total Coty Inc. stockholders’ equity | 4,586.9 | 8,849.7 |
Noncontrolling interests | 6.5 | 5.5 |
Total equity | 4,593.4 | 8,855.2 |
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | $ 17,665.4 | $ 22,630.2 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Trade receivables, allowances | $ 48.1 | $ 81.8 |
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) | 9,400,000 | 5,000,000 |
Preferred stock, shares outstanding (shares) | 9,400,000 | 5,000,000 |
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) | 819,200,000 | 815,800,000 |
Common stock, shares outstanding (shares) | 754,200,000 | 750,700,000 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - USD ($) shares in Millions, $ in Millions | Total | Common Class A | Total Coty Inc. Stockholders’ Equity | Total Coty Inc. Stockholders’ EquityCommon Class A | Preferred Stock | Common StockCommon Class A | Common StockCommon Class B | Additional Paid-in Capital | Additional Paid-in CapitalCommon Class A | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Noncontrolling Interest |
Beginning balance (shares) at Jun. 30, 2016 | 1.7 | 138.7 | 262 | 63.6 | |||||||||
Beginning 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 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of Class A Common Stock for acquisition (shares) | 409.7 | ||||||||||||
Issuance of Class A Common Stock for acquisition | 9,628.6 | 9,628.6 | $ 4.1 | 9,624.5 | |||||||||
Issuance of Preferred Stock (shares) | 2.5 | ||||||||||||
Issuance of Preferred Stock | 0 | 0 | $ 0 | ||||||||||
Conversion of Class B to Class A Common Stock (in shares) | 262 | (262) | |||||||||||
Conversion of Class B to Class A Common Stock | $ 2.6 | $ (2.6) | |||||||||||
Purchase of Class A Common Stock (shares) | 1.4 | 1.4 | |||||||||||
Purchase of Class A Common Stock | (36.3) | $ (36.3) | (36.3) | $ (36.3) | |||||||||
Exercise of employee stock options and restricted stock units and related tax benefits (in shares) | 2.5 | ||||||||||||
Exercise of employee stock options and restricted stock units and related tax benefits | 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) | |||||||||
Distribution to noncontrolling interests, net | (10) | (10) | |||||||||||
Reclassification of noncontrolling interest to mandatory redeemable financial interest | (49.9) | (40.7) | (40.7) | (9.2) | |||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (86.8) | (86.8) | (86.8) | ||||||||||
Ending balance (shares) at Jun. 30, 2017 | 4.2 | 812.9 | 0 | 65 | |||||||||
Ending 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 | |||
Beginning balance at Jun. 30, 2016 | 73.3 | ||||||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | |||||||||||||
Net (loss) income | 8.3 | ||||||||||||
Distribution to noncontrolling interests, net | (32.3) | ||||||||||||
Redeemable noncontrolling interest due to business combination (See Note 3) | 415.9 | ||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 86.8 | ||||||||||||
Adjustment to repurchase of redeemable noncontrolling interests | (0.9) | ||||||||||||
Ending balance at Jun. 30, 2017 | 551.1 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of Preferred Stock (shares) | 1 | ||||||||||||
Issuance of Preferred Stock | 0 | 0 | $ 0 | ||||||||||
Cancellation of Preferred Stock (shares) | (0.2) | ||||||||||||
Cancellation of Preferred Stock | 0 | 0 | $ 0 | ||||||||||
Purchase of Class A Common Stock (shares) | 0 | ||||||||||||
Purchase of Class A Common Stock | $ 0 | ||||||||||||
Exercise of employee stock options and restricted stock units and related tax benefits (in shares) | 2.9 | ||||||||||||
Exercise of employee stock options and restricted stock units and related tax benefits | 22.6 | 22.6 | 22.6 | ||||||||||
Shares withheld for employee taxes | (3.6) | (3.6) | (3.6) | ||||||||||
Share-based compensation expense | 31.5 | 31.5 | 31.5 | ||||||||||
Dividends | (377.6) | (377.6) | (377.6) | ||||||||||
Net income (loss) | (166.8) | (168.8) | (168.8) | 2 | |||||||||
Other comprehensive income (loss) | 148.4 | 147.9 | 147.9 | 0.5 | |||||||||
Dilution of redeemable noncontrolling interest due to additional contribution (See Note 20) | 17 | 17 | 17 | ||||||||||
Additional redeemable noncontrolling interests due to employee grants (See Note 21) | (7.4) | (7.4) | (7.4) | ||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (134.9) | (134.9) | (134.9) | ||||||||||
Ending balance (shares) at Jun. 30, 2018 | 5 | 815.8 | 65 | ||||||||||
Ending 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 | ||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | |||||||||||||
Net (loss) income | 39 | ||||||||||||
Distribution to noncontrolling interests, net | (54.3) | ||||||||||||
Dilution of redeemable noncontrolling interest due to additional contribution (See Note 20) | (17) | ||||||||||||
Additional redeemable noncontrolling interests due to employee grants (See Note 21) | 7.4 | ||||||||||||
Proceeds from redeemable noncontrolling interests | 0.2 | ||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 134.9 | ||||||||||||
Ending balance at Jun. 30, 2018 | 661.3 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of Preferred Stock (shares) | 7.9 | ||||||||||||
Issuance of Preferred Stock | 0.8 | 0.8 | $ 0.1 | 0.7 | |||||||||
Cancellation of Preferred Stock (shares) | (3.5) | ||||||||||||
Cancellation of Preferred Stock | 0 | 0 | $ 0 | $ 0 | 0 | ||||||||
Purchase of Class A Common Stock (shares) | 0 | ||||||||||||
Purchase of Class A Common Stock | $ 0 | ||||||||||||
Exercise of employee stock options and restricted stock units and related tax benefits (in shares) | 1 | ||||||||||||
Exercise of employee stock options and restricted stock units and related tax benefits | 5.2 | 5.2 | $ 0 | 5.2 | |||||||||
Shares withheld for employee taxes | (1.4) | (1.4) | (1.4) | ||||||||||
Share-based compensation expense | 16.9 | 16.9 | 16.9 | ||||||||||
Dividends | (347.5) | (347.5) | (347.5) | ||||||||||
Dividends settled in Shares of Class A Common Stock (in shares) | 2.4 | ||||||||||||
Dividends settled in Shares of Class A Common Stock | (30.6) | $ 30.6 | $ 30.6 | $ 30.6 | |||||||||
Dividends declared - Stock ($0.125 per Common Share) | (30.6) | (30.6) | (30.6) | ||||||||||
Net income (loss) | (3,781.7) | (3,784.2) | (3,784.2) | 2.5 | |||||||||
Other comprehensive income (loss) | (217.5) | (217.6) | (217.6) | 0.1 | |||||||||
Distribution to noncontrolling interests, net | (1.6) | 0 | 0 | (1.6) | |||||||||
Additional redeemable noncontrolling interests due to employee grants (See Note 21) | (0.6) | (0.6) | (0.6) | ||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 196.4 | 196.4 | 196.4 | ||||||||||
Ending balance (shares) at Jun. 30, 2019 | 9.4 | 819.2 | 65 | ||||||||||
Ending balance at Jun. 30, 2019 | 4,593.4 | $ 4,586.9 | $ 0.1 | $ 8.1 | $ 10,620.5 | $ (4,541.2) | $ (58.8) | $ (1,441.8) | $ 6.5 | ||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | |||||||||||||
Net (loss) income | 12.1 | ||||||||||||
Distribution to noncontrolling interests, net | (26.8) | ||||||||||||
Additional redeemable noncontrolling interests due to employee grants (See Note 21) | 1.6 | ||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (196.4) | ||||||||||||
Ending balance at Jun. 30, 2019 | $ 451.8 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Parentheticals) | 12 Months Ended |
Jun. 30, 2019$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividends declared (in dollars per share) | $ 0.500 |
Dividends declared, stock (in dollars per share) | $ 0.125 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (3,769.6) | $ (127.8) | $ (398.5) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 736 | 737 | 555.1 |
Asset impairment charges | 3,851.9 | 0 | 0 |
Deferred income taxes | (175.7) | (101.7) | (390) |
Provision for bad debts | 11.6 | 24 | 23.4 |
Provision for pension and other post-employment benefits | 29.5 | 32.4 | 53.6 |
Share-based compensation | 14.8 | 30.6 | 24.6 |
Loss on assets under restructuring programs | 27.8 | 15.6 | 6.7 |
Loss (gain) on sale of brand assets | 0 | 28.6 | (3.1) |
Loss on early extinguishment of debt | 0 | 10.7 | 0 |
Other | 43.1 | (16.9) | 19.2 |
Change in operating assets and liabilities, net of effects from purchase of acquired companies: | |||
Trade receivables | 344.9 | (79.6) | (279.8) |
Inventories | (21.9) | (60) | 162.3 |
Prepaid expenses and other current assets | 11.5 | (107.6) | (105.7) |
Accounts payable | (127.3) | 159.5 | 540.9 |
Accrued expenses and other current liabilities | (378.1) | (22.5) | 479.2 |
Income and other taxes payable | 66.4 | (83.2) | 85 |
Other noncurrent assets | 24.5 | (17.9) | 23.4 |
Other noncurrent liabilities | (49.8) | (7.5) | (38.8) |
Net cash provided by operating activities | 639.6 | 413.7 | 757.5 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (426.6) | (446.4) | (432.3) |
Payments for business combinations, net of cash acquired | (40.8) | (278) | (742.6) |
Proceeds from sale of long term assets, including assets under restructuring programs | 13.4 | 36.8 | 11.3 |
Net cash used in investing activities | (454) | (687.6) | (1,163.6) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from short-term debt, original maturity more than three months | 0 | 0 | 9.5 |
Repayments of short-term debt, original maturity more than three months | 0 | 0 | (10.2) |
Net proceeds from (repayments of) short-term debt, original maturity less than three months | (21.3) | 21 | (49.2) |
Proceeds from revolving loan facilities | 2,183.3 | 3,185.5 | 2,244.4 |
Repayments of revolving loan facilities | (1,729.1) | (3,643.2) | (2,074.4) |
Proceeds from term loans and other long term debt | 0 | 7,467.2 | 1,075 |
Repayments of term loans and other long term debt | (189.8) | (6,492.6) | (136.1) |
Dividend payments | (346.2) | (375.8) | (372.6) |
Net proceeds from issuance of Class A Common Stock and Series A Preferred Stock | 5.9 | 22.6 | 22.8 |
Payments for purchases of Class A Common Stock held as Treasury Stock | 0 | 0 | (36.3) |
Net (payments) proceeds for foreign currency contracts | (0.4) | 12.4 | (1.2) |
Distributions to mandatorily redeemable financial interests, redeemable noncontrolling interests and noncontrolling interests | (38.1) | (66.4) | (42.3) |
Purchase of additional mandatorily redeemable financial interests, redeemable noncontrolling interests and noncontrolling interests | 0 | 0 | (9.8) |
Payment of debt issuance costs | (17.4) | (55.1) | (24.4) |
All other | (7.2) | (6.3) | 0 |
Net cash (used in) provided by financing activities | (160.3) | 69.3 | 595.2 |
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (7.1) | (3.9) | 9.2 |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 18.2 | (208.5) | 198.3 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 362.2 | 570.7 | 372.4 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period | 380.4 | 362.2 | 570.7 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | |||
Cash paid during the year for interest | 290.7 | 242.8 | 190.2 |
Cash received during the period for settlement of interest rate swaps (See Note 19) | 43.2 | 0 | 0 |
Cash paid during the year for income taxes, net of refunds received | 110.3 | 124.6 | 90.1 |
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES: | |||
Accrued capital expenditure additions | 109.2 | 158.8 | 106.7 |
Non-cash stock issued for business combination | 0 | 0 | 9,628.6 |
Non-cash reclassification from noncontrolling interest to mandatorily redeemable financial interest | 0 | 0 | 49.9 |
Non-cash contingent consideration for business combination (See Note 3) | 0 | 8.3 | 0 |
Non-cash Common Stock dividend | 30.6 | 0 | 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 | 0 | 1,943 |
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 | $ 0 | $ 415.9 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Jun. 30, 2019 | |
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 2019 ” refer to the fiscal year ending June 30, 2019 . When used in this Annual Report on Form 10-K, the term “includes” and “including” means, unless the context otherwise indicates, including without limitation. 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, 2019 | |
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 the valuation of 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, 2019 and June 30, 2018 , the Company had restricted cash of $40.0 and $30.6 , respectively, included in Restricted cash in the Consolidated Balance Sheets. The restricted cash balance as of June 30, 2019 primarily provides collateral for certain bank guarantees on rent, customs and duty accounts and also consists of collections on factored receivables that remain unremitted to the factor as of June 30, 2019 . 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 customers’ 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 based upon the fair value of a reporting unit as compared to its carrying value. The Company makes certain judgments and assumptions in allocating assets and liabilities to determine carrying values for its reporting units. To determine fair value of the reporting unit, the Company uses a combination of the income and market approaches. Under the income approach, fair value is determined using a discounted cash flow method, projecting future cash flows of each reporting unit, 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. Under the market approach, information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units is utilized to create valuation multiples that are applied to the operating performance of the reporting units being tested, to value the reporting unit. The impairment loss recognized would be the difference between a reporting unit’s carrying value and fair value in an amount not to exceed the carrying value of the reporting unit’s goodwill. 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. This methodology assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. 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 higher of the redemption value or the carrying value (the acquisition date fair value adjusted for the noncontrolling interest’s share of net income (loss) and dividends) 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 On July 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers and all related amendments (the “New Revenue Standard”) using the modified retrospective method applied to those contracts which were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under the New Revenue Standard, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 605, Revenue Recognition. See section below regarding Recently Adopted Accounting Pronouncements for more information on the impact of the adoption of this standard. For periods after July 1, 2018, revenue is recognized at a point in time and/or over time when control of the promised goods or services is transferred to the Company’s customers, which usually occurs upon delivery. Revenue is recognized in an amount that reflects the consideration we expect to be entitled to in exchange for transferring those goods or services. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The Company’s revenue contracts principally represent a performance obligation to sell its beauty products to trade customers and are satisfied when control of promised goods and services is transferred to the customers. Net revenues comprise gross revenues less customer discounts and allowances, actual and expected returns (estimated based on an analysis of historical experience and position in product life cycle) and various trade spending activities. Trade spending activities represent variable consideration promised to the customer and primarily relate to advertising, product promotions and demonstrations, some of which involve cooperative relationships with customers. The costs of trade spend activities are estimated considering all reasonably available information, including contract terms with the customer, the Company’s historical experience and its current expectations of the scope of the activities, and is reflected in the transaction price when sales are recorded. The Company’s payment terms vary by the type and location of its customers and the products offered. The term between invoicing and when payment is due is not significant. The Company’s sales return accrual reflects seasonal fluctuations, including those related to revenues for the holiday season in the first half of the fiscal year. This accrual is a subjective critical estimate that has a direct impact on reported net revenues, and is calculated based on history of actual returns, estimated future returns and information provided by retailers regarding their inventory levels. In addition, as necessary, specific accruals may be established for significant future known or anticipated events. The types of known or anticipated events that the Company has considered, and will continue to consider, include the financial condition of our customers, store closings by retailers, changes in the retail environment, and our decision to continue to support new and existing brands. Returns represented 2% , 2% and 2% of gross revenue after customer discounts and allowances in fiscal 2019 , 2018 and 2017 , respectively. Trade spending activities recorded as a reduction to gross revenue after customer discounts and allowances represented 8% , 8% , and 7% in fiscal 2019 , 2018 and 2017 , respectively. The Company accounts for certain customer store fixtures as other assets. Such fixtures are amortized using the straight-line method over the period of 3 to 5 years as a reduction of revenue. For the presentation of the Company’s revenues disaggregated by segment and product category see Note 4 — Segment Reporting . 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 $1,899.5 , $2,206.3 and $1,883.3 in fiscal 2019 , 2018 and 2017 , respectively. Included in advertising and promotional costs are $127.6 , $120.9 , and $107.4 of depreciation of marketing furniture and fixtures, such as product displays, in fiscal 2019 , 2018 and 2017 , respectively. Research and development costs are expensed as incurred and totaled $162.8 , $174.6 and $139.2 in fiscal 2019 , 2018 and 2017 , 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 and Series A-1 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 23 — 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 and Series A-1 Preferred Stock that can be converted into Class A Common Stock or settled in cash. Series A and Series A-1 Preferred Stock are 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 and Series A-1 Preferred Stock is determined using the binomial valuation model and the weighted-average assumptions discussed in Note 23 — 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. 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 $4,600.0 , the Company is permanently reinvested. 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 Financial Accounting Standards Board (“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. 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, earnings before interest, taxes, depreciation and amortization (“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 19 — 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 $3.5 , $3.9 and $1.5 in fiscal 2019 , 2018 and 2017 , 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 $7.6 , $8.5 and $(12.8) in fiscal 2019 , 2018 and 2017 , respectively, resulting from financing foreign exchange currency transactions are included in Interest expense, net in the Consolidated Statements of Operations. Net (losses) of nil , nil and $(1.7) in fiscal 2019 , 2018 and 2017 , 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 On July 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers , and all related amendments (the “New Revenue Standard”) using the modified retrospective method applied to those contracts which were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under the New Revenue Standard, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 605, Revenue Recognition. The Company recorded a net increase to its accumulated deficit as of July 1, 2018 (as presented below) due to the cumulative impact of adopting the New Revenue Standard, with the impact primarily related to the timing of accrual for certain customer incentives and markdowns at the time of sell-in and reclassification of certain marketing fixtures expense as a reduction of gross revenue. The cumulative effects of the revenue accounting changes on the Company's Consolidated Balance Sheet as of July 1, 2018 were as follows: June 30, 2018 Adjustments July 1, 2018 ASSETS Property and equipment, net $ 1,680.8 $ (6.2 ) $ 1,674.6 Deferred income taxes 107.4 0.6 108.0 Other noncurrent assets 299.5 6.9 306.4 LIABILITIES AND EQUITY Current liabilities: Accrued expenses and other current liabilities $ 1,844.4 $ 20.7 $ 1,865.1 Deferred income taxes 842.5 (1.2 ) 841.3 Accumulated deficit (626.2 ) (18.2 ) (644.4 ) The following table summarizes the impacts of adopting the New Revenue Standard on the Consolidated Statements of Operations for fiscal 2019: As reported (New Revenue Standard) Current period adjustments As adjusted (previous revenue standard) Net revenues $ 8,648.5 $ 1.8 $ 8,650.3 Selling, general and administrative expenses 4,563.9 3.4 4,567.3 Net (loss) income (3,769.6 ) (1.3 ) (3,770.9 ) Net (loss) income attributable to Coty Inc. (3,784.2 ) (0.9 ) (3,785.1 ) Net (loss) income attributable to Coty Inc. per common share: Basic $ (5.04 ) $ — $ (5.04 ) Diluted (5.04 ) — (5.04 ) In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Compan |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Jun. 30, 2019 | |
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 no t 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 further strengthens 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 aggregate 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 portion of contingent consideration payable within twelve months from the June 30, 2019 balance sheet date is recorded in Accrued expenses and other current liabilities and the remainder is recorded in Other noncurrent liabilities in the Consolidated Balance Sheet. From the date of acquisition through the end of fiscal 2019 , the Company made £4.8 million in contingent payments. The Company has finalized the valuation of assets acquired and liabilities assumed for the Burberry Beauty Business acquisition. The Company recognized certain measurement period adjustments as disclosed below during the three months ended September 30, 2018. The measurement period for the Burberry Beauty Business acquisition closed on October 1, 2018. 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 $ 47.9 $ — $ 47.9 Property, plant and equipment 5.8 — 5.8 1 - 3 License and distribution rights 177.8 6.7 184.5 3 - 15 Goodwill 34.9 (9.4 ) 25.5 Indefinite Net other liabilities (10.1 ) 2.7 (7.4 ) Total purchase price $ 256.3 $ — $ 256.3 (a) As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018. (b) The Company recorded measurement period adjustments in the first quarter of fiscal 2019. The measurement period adjustments related to an increase in the value of the License and distribution rights due to changes in assumptions that were used at the date of acquisition for valuation purposes. The measurement period adjustment related to the decrease 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. 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 $12.9 , $6.8 , and $5.8 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. 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 and Younique (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. The fiscal year ended June 30, 2017 includes pro forma adjustments for 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 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 year ended 2017 is as follows: Year Ended June 30, 2017 (a) Pro forma Net revenues $ 8,889.2 Pro forma Net (loss) income (101.2 ) Pro forma Net (loss) income attributable to Coty Inc. (142.7 ) Pro forma Net (loss) income attributable to Coty Inc. per common share Basic $ (0.19 ) Diluted $ (0.19 ) (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. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2019 | |
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. On July 1, 2019, the Company announced its turnaround plan, which includes planned changes to the reporting structure to the CODM. As part of these reporting structure changes, management expects to move from the current organizational structure into regional commercial business units in Europe, Middle East & Africa (“EMEA”), Americas and Asia Pacific for the combined Luxury and Consumer Beauty businesses. Such regional business units will be supported by central Luxury and Consumer Beauty marketing teams. Professional Beauty is expected to remain a distinct business unit. The Company anticipates that its operating and reporting segments would change upon completion of such reporting structure changes and the related changes in the financial information provided to the CODM, which is expected to occur in the third quarter of fiscal 2020. 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 11 — Goodwill and Other Intangible Assets, net . Year Ended June 30, SEGMENT DATA 2019 2018 2017 Net revenues: Luxury $ 3,294.3 $ 3,210.5 $ 2,566.6 Consumer Beauty 3,539.3 4,268.1 3,688.2 Professional Beauty 1,814.9 1,919.4 1,395.5 Total $ 8,648.5 $ 9,398.0 $ 7,650.3 Depreciation and amortization: Luxury $ 271.0 $ 253.3 $ 203.5 Consumer Beauty 329.8 340.4 256.2 Professional Beauty 135.2 143.3 95.4 Corporate — — — Total $ 736.0 $ 737.0 $ 555.1 Operating (loss) income: Luxury $ 232.8 $ 248.7 $ 158.0 Consumer Beauty (3,598.7 ) 278.9 261.2 Professional Beauty 122.1 119.4 78.5 Corporate (227.7 ) (493.7 ) (918.6 ) Total $ (3,471.5 ) $ 153.3 $ (420.9 ) Reconciliation: Operating (loss) income $ (3,471.5 ) $ 153.3 $ (420.9 ) Interest expense, net 275.7 265.0 218.6 Loss on early extinguishment of debt — 10.7 — Other expense, net 30.9 30.1 18.5 Loss before income taxes $ (3,778.1 ) $ (152.5 ) $ (658.0 ) 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 2019 2018 2017 Net revenues: North America $ 2,656.5 $ 2,966.0 $ 2,506.9 Europe 3,777.8 4,201.6 3,325.7 ALMEA 2,214.2 2,230.4 1,817.7 Total $ 8,648.5 $ 9,398.0 $ 7,650.3 Year Ended June 30, Long-lived assets: 2019 2018 2017 U.S. $ 5,613.2 $ 7,408.5 $ 7,662.4 Switzerland 5,444.4 8,000.2 6,899.8 Brazil 712.5 718.2 863.3 All other 2,326.6 2,441.1 3,187.3 Total $ 14,096.7 $ 18,568.0 $ 18,612.8 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 2019 , 2018 and 2017 . The United States had net revenues of $2,418.7 , $2,704.6 and $2,220.4 in fiscal 2019 , 2018 and 2017 , 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 2019 , 2018 and 2017 or are otherwise deemed significant. Presented below are the net revenues associated with Company’s product categories: Year Ended June 30, PRODUCT CATEGORY 2019 2018 2017 Fragrances 39.5 % 36.8 % 36.1 % Color Cosmetics 26.0 % 28.2 % 29.6 % Skin & Body Care 9.5 % 10.1 % 12.4 % Hair Care 25.0 % 24.9 % 21.9 % Total 100.0 % 100.0 % 100.0 % |
ACQUISITION-RELATED COSTS
ACQUISITION-RELATED COSTS | 12 Months Ended |
Jun. 30, 2019 | |
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 $0.0 , $64.2 and $355.4 for the fiscal years ended 2019 , 2018 and 2017 , 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 and 2017 were primarily related to the P&G Beauty Business acquisition. |
RESTRUCTURING COSTS
RESTRUCTURING COSTS | 12 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING COSTS | RESTRUCTURING COSTS Restructuring costs for the fiscal years ended June 30, 2019 , 2018 and 2017 are presented below: Year Ended June 30, 2019 2018 2017 Global Integration Activities $ 28.5 $ 106.5 $ 365.0 2018 Restructuring Actions 16.8 68.4 — Other Restructuring (1.1 ) (1.7 ) 9.8 Total $ 44.2 $ 173.2 $ 374.8 Turnaround Plan On July 1, 2019, the Company announced a four-year plan to drive substantial improvement in Consumer Beauty while further optimizing Luxury and Professional Beauty (the “Turnaround Plan”). The Company expects to incur additional restructuring charges of approximately $35.0 related to employee termination benefits, contract terminations, and other related exits costs pertaining to the previously approved actions. The Company intends to utilize accruals established related to previously announced programs, as discussed below. 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 $500.0 related to approved initiatives through the fiscal year ended June 30, 2019 , 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 (a) Total (a) Fiscal 2017 $ 333.9 $ 22.4 $ 4.6 $ 4.1 $ 365.0 Fiscal 2018 67.5 19.3 14.3 5.4 106.5 Fiscal 2019 (6.0 ) 4.5 27.8 2.2 28.5 Cumulative through June 30, 2019 $ 395.4 $ 46.2 $ 46.7 $ 11.7 $ 500.0 (a) The fiscal 2017 balance reflects the impact of the ASU 2017-07 adoption which resulted in the reclassification of $0.8 of pension settlement and curtailment credits incurred in connection with Global Integration Activities, from Restructuring costs to Other expense, net. Refer to Note 2 — Summary of Significant Accounting Policies for further information on the adoption of ASU 2017-07. 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, 2018 $ 203.0 $ 17.0 $ — $ 3.1 $ 223.1 Restructuring charges 10.8 4.6 27.8 2.4 45.6 Payments (141.0 ) (9.6 ) — (3.7 ) (154.3 ) Change in estimates (16.8 ) (0.1 ) — (0.2 ) (17.1 ) Non-cash impact 0.9 — (27.8 ) — (26.9 ) Effect of exchange rates (3.2 ) (0.2 ) — — (3.4 ) Balance—June 30, 2019 $ 53.7 $ 11.7 $ — $ 1.6 $ 67.0 The Company currently estimates that the total remaining accrual of $67.0 will result in cash expenditures of approximately $44.7 , $18.1 and $4.2 in fiscal 2020 , 2021 and thereafter, respectively. 2018 Restructuring Actions During fiscal 2018, the Company began evaluating initiatives to reduce fixed costs and enable further investment in the business (“the 2018 Restructuring Actions”). Of the expected costs, the Company incurred cumulative restructuring charges of $85.2 related to approved initiatives through the fiscal year ended June 30, 2019, primarily related to role eliminations in Europe and North America, which have been recorded in Corporate. The following table presents aggregate restructuring charges for the program: Severance and Employee Benefits Third-Party Contract Terminations Fixed Asset Write-offs Other Exit Costs Total Fiscal 2018 $ 63.5 $ 0.2 $ 1.3 $ 3.4 $ 68.4 Fiscal 2019 15.4 (0.1 ) — 1.5 16.8 Cumulative through June 30, 2019 $ 78.9 $ 0.1 $ 1.3 $ 4.9 $ 85.2 The related liability balance and activity of restructuring costs for the 2018 Restructuring Actions are presented below: Severance and Third-Party Other (a) Total Balance—July 1, 2018 $ 48.0 $ 0.2 $ 3.3 $ 51.5 Restructuring charges 17.2 — 1.5 18.7 Payments (47.1 ) — (3.2 ) (50.3 ) Changes in estimates (1.8 ) (0.1 ) — (1.9 ) Effect of exchange rates (0.8 ) — (0.1 ) (0.9 ) Balance—June 30, 2019 $ 15.5 $ 0.1 $ 1.5 $ 17.1 The Company currently estimates that the total remaining accrual of $17.1 will result in cash expenditures of approximately $16.0 , $0.7 and $0.4 in fiscal 2020 , 2021 and thereafter, respectively. Other Restructuring In connection with the acquisition of the Burberry Beauty Business, the Company recorded (income) expenses of $(0.1) and $3.9 of restructuring costs relating to third party contract terminations during the fiscal years ended June 30, 2019 and June 30, 2018 , respectively, which have been recorded in Corporate. The related liability balances were $0.7 and $3.9 at June 30, 2019 and June 30, 2018 , respectively. The Company currently estimates that the total accrual of $0.7 will result in cash expenditures in fiscal 2020. The Company executed a number of other restructuring activities in prior years, which are substantially completed. The Company recognized (income) expenses of $(0.8) , $(6.5) and $9.8 (a) in fiscal 2019 , 2018 and 2017 , respectively, which have been recorded in Corporate. The related liability balances were $5.4 and $9.4 at June 30, 2019 and June 30, 2018 , respectively. The Company currently estimates that the remaining accrual of $5.4 will result in cash expenditures of $3.2 and $2.2 in fiscal 2020 and 2021 , respectively. 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 recognized (income) expenses, net of $(0.2) , $0.9 and nil during the fiscal years ended 2019, 2018 and 2017, respectively, which have been recorded in Corporate. The Company currently estimates that the remaining accrual of $2.9 at June 30, 2019 will result in cash expenditures of $2.4 , $0.3 and $0.2 in fiscal 2020 , 2021 and thereafter, respectively. (a) The fiscal 2017 balance reflects the impact of the ASU 2017-07 adoption which resulted in the reclassification of a $1.8 pension curtailment credit related to the Bourjois acquisition restructuring program, from Restructuring costs to Other expense, net. Refer to Note 2 — Summary of Significant Accounting Policies for further information on the adoption of ASU 2017-07. |
TRADE RECEIVABLES - FACTORING
TRADE RECEIVABLES - FACTORING | 12 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
TRADE RECEIVABLES—FACTORING | TRADE RECEIVABLES—FACTORING The Company factors a portion of its trade receivables with unrelated third-party factoring companies on both a recourse and non-recourse basis. Trade receivables factored throughout the fiscal year on a worldwide basis amounted to $547.9 and $300.1 in fiscal 2019 and 2018 , respectively. Remaining balances due from factors amounted to $8.6 and $9.9 as of June 30, 2019 and 2018 , respectively, and are included in Trade receivables, net in the Consolidated Balance Sheets. Factoring fees paid under these arrangements were $2.4 , $0.6 and $0.7 in fiscal 2019 , 2018 and 2017 , respectively, which were recorded in Selling, general and administrative expenses in the Consolidated Statements of Operations. New 2019 Factoring Arrangement On March 19, 2019, the Company entered into an Uncommitted Receivables Purchase Agreement (the “Receivables Purchase Agreement”) with a financial institution, with an aggregate facility limit of $150.0 . Eligible trade receivables are purchased by the financial institution for cash at net invoice value less a factoring fee. Pursuant to Receivables Purchase Agreement, the Company acts as collections agent for the financial institution and is responsible for the collection, and remittance to the financial institution, of all customer payments related to trade receivables factored under this arrangement. For certain customer receivables factored, the Company will retain a recourse obligation of up to 10 percent of the respective invoice’s net invoice value, payable to the financial institution if the customer’s payment is not received by the contractual due date. The Company accounts for trade receivable transfers under the Receivables Purchase Agreement as sales and derecognizes the sold receivables from the Consolidated Balance Sheets. The fair value of sold receivables approximated their book value due to their short-term nature. The Company estimated that the fair value of its servicing responsibilities was not material. Cash received from the selling of receivables under the Receivables Purchase Agreement are presented as a change in trade receivables within the operating activities section of the Consolidated Statements of Cash Flows. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories as of June 30, 2019 and 2018 are presented below: June 30, June 30, Raw materials $ 259.5 $ 278.6 Work-in-process 20.4 21.8 Finished goods 873.4 848.5 Total inventories $ 1,153.3 $ 1,148.9 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets as of June 30, 2019 and 2018 are presented below: June 30, June 30, Value added tax, sales and other non-income tax assets $ 209.3 $ 235.4 Expected income tax refunds, credits and prepaid income taxes 135.3 101.3 Prepaid marketing, copyright and agency fees 118.9 119.6 Non-trade receivables 22.8 29.9 Prepaid rent, leases and insurance 14.8 17.3 Interest rate swap assets — 17.1 Other 76.7 83.3 Total prepaid expenses and other current assets $ 577.8 $ 603.9 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net as of June 30, 2019 and 2018 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 679.0 $ 671.2 Machinery and equipment 904.4 866.3 Marketing furniture and fixtures 578.0 514.2 Computer equipment and software 819.5 699.1 Construction in progress 134.2 230.8 Property and equipment, gross 3,115.1 2,981.6 Accumulated depreciation and amortization (1,514.5 ) (1,300.8 ) Property and equipment, net $ 1,600.6 $ 1,680.8 Depreciation and amortization expense of property and equipment totaled $382.5 , $384.2 and $280.0 in fiscal 2019 , 2018 and 2017 , respectively, and is recorded in Cost of sales and Selling, general and administrative expenses in the Consolidated Statements of Operations. During fiscal 2019 and 2018 , the Company recorded asset impairment charges of $27.8 and $15.6 , respectively, primarily related to the planned disposal of certain manufacturing facilities, and the write-off of machinery and equipment in excess of the Company’s needs due to the Global Integration Activities (refer to Note 6 — Restructuring Costs for further information about 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, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Assessment for Impairments The Company tests goodwill and indefinite-lived other 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 or of indefinite-lived other intangible assets in fiscal 2018 and 2017. During fiscal 2019, the Company recorded total goodwill impairments of $3,391.1 and total impairments on indefinite-lived other intangible assets of $429.1 . Additionally, the Company recorded impairments of $19.7 on finite-lived other intangible assets during fiscal 2019. The asset impairment charges were a result of the following impairment tests: In the course of evaluating the results for the second quarter of fiscal 2019, the Company noted the cash flows associated with its Consumer Beauty reporting unit were adversely impacted by negative category trends and market share losses in the color cosmetics, hair color and mass fragrance categories mainly impacting the CoverGirl, Rimmel, Max Factor, Bourjois and Clairol trademarks; additional shelf-spaces losses for CoverGirl, Clairol, and Max Factor; expected increased costs in the short-term to offset the lower service levels caused by supply chain disruptions; and lower than expected net revenues and profitability for Younique. Additionally, the Company included the impact of a 75 basis point increase in the discount rate in the valuation model, due to changes in the market assumptions, which adversely affected the fair values of the reporting unit and trademarks. As a result, in the second quarter of fiscal 2019, the Company recognized asset impairment charges of $930.3 , of which $832.5 related to goodwill, $90.8 related to indefinite-lived other intangible assets (mainly related to the CoverGirl and Clairol trademarks) and $7.0 related to finite-lived other intangible assets, as described below and recorded in Asset impairment charges in the Consolidated Statements of Operations. Also, in the second quarter of fiscal 2019, the Company identified indicators of impairment related to the philosophy trademark that is part of the Luxury reporting unit and recorded an asset impairment charge of $22.8 for the second quarter of fiscal 2019. In addition to the impact of a 75 basis point increase in the discount rate for the trademark, the Company considered the impact of the business indicators of lower than expected net revenue growth in the U.S. and a decrease in the level of expected profitability of the trademark. In the fourth quarter of fiscal 2019, as a result of the annual impairment test, the Company recorded asset impairment charges of $2,558.6 related to goodwill of the Consumer Beauty reporting unit and $201.7 related to indefinite-lived other intangible assets (mainly CoverGirl, Max Factor, Bourjois, Sally Hansen and Clairol trademarks) that are part of the Consumer Beauty reporting unit. The charges are recorded in Asset impairment charges in the Consolidated Statements of Operations. The Company considered several factors that developed during the fourth quarter of fiscal 2019 that led to the conclusion that the fair values of the Consumer Beauty reporting unit and certain indefinite-lived other intangible assets were below their carrying amounts. These factors included fourth quarter net revenue results and market share trends that were below expectations, continued net revenue and profitability declines for Younique in excess of management’s expectations, and the development of the Company’s Turnaround Plan to stabilize operations and improve profitability. The Turnaround Plan impacted the projected cash flows associated with the Consumer Beauty reporting unit by lowering revenue growth and, in the near term, margin expectations. Such changes in the Company’s estimated forecasts were based on a top down review of the business which resulted in decisions to simplify the product range as well as identify priority brand-country combinations and invest behind such combinations at scale, which will initially lower net revenues and profits. The Turnaround Plan also considered the latest market data including continued negative category trends in the color cosmetics, hair color and mass fragrance categories that were below expectations and indicated a longer required recovery period. Overall, these factors negatively impacted the cash flows of the Consumer Beauty reporting unit and indefinite-lived other intangible assets and resulted in a decrease in management’s assumed terminal growth rates, which also adversely affected their fair values. Additionally, the Company included the impact of an additional 25 basis point increase in the discount rate in the valuation model for its trademarks, which adversely affected the fair values of the trademarks. Based on the results of the annual impairment test, the Company also recorded an asset impairment charge of $86.8 in Asset impairment charges in the Consolidated Statements of Operations related to the philosophy trademark that is part of the Luxury reporting unit. The cash flows related to the philosophy trademark decreased mainly due to updated projections as a result of a revised strategy for the business developed as part of the Turnaround Plan in the fourth quarter of fiscal 2019 to simplify the product range. The fair value of the philosophy trademark was also adversely affected by a 25 basis point increase in the discount rate for trademarks since the second quarter of fiscal 2019. Further, the Company recorded an asset impairment charge of $27.0 in Asset impairment charges in the Consolidated Statements of Operations for fiscal 2019 related to the professional product line of Wella trademark that is part of the Professional Beauty reporting unit. In addition to the impact of a 100 basis point increase in the discount rate for the trademark since the fiscal 2018 annual impairment test, the Company considered the adverse impact of lower than expected revenue in the U.S. on the cash flows associated with the professional product line of Wella trademark due to additional customer destocking activities as well as the impact of the strategy change to simplify the product range. Goodwill Goodwill as of June 30, 2019 , 2018 and 2017 is presented below: Luxury Consumer Beauty Professional Beauty Total 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 68.2 — 2.6 70.8 Measurement period adjustments (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 Changes during the year ended June 30, 2019 Impairment charges — (3,391.1 ) — (3,391.1 ) Measurement period adjustments (a) (10.5 ) 0.6 0.5 (9.4 ) Foreign currency translation (30.7 ) (83.5 ) (18.6 ) (132.8 ) Gross balance at June 30, 2019 $ 3,325.4 $ 4,844.6 $ 935.7 $ 9,105.7 Accumulated impairments (403.7 ) (3,628.2 ) — (4,031.9 ) Net balance at June 30, 2019 $ 2,921.7 $ 1,216.4 $ 935.7 $ 5,073.8 (a) Includes measurement period adjustments during the twelve month period ended June 30, 2019 in connection with the Burberry Beauty Business acquisition (Refer to Note 3 — Business Combinations ). Other Intangible Assets, net Other intangible assets, net as of June 30, 2019 and 2018 are presented below: June 30, June 30, Indefinite-lived other intangible assets $ 2,729.8 $ 3,186.2 Finite-lived other intangible assets, net 4,692.5 5,098.2 Total Other intangible assets, net $ 7,422.3 $ 8,284.4 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, 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 — — (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 30, 2018 295.8 1,627.2 1,263.2 3,186.2 Changes during the year ended June 30, 2019 Impairment charges (109.6 ) (292.5 ) (27.0 ) (429.1 ) Foreign currency translation (8.8 ) (10.0 ) (8.5 ) (27.3 ) Gross balance at June 30, 2019 405.8 1,693.1 1,257.8 3,356.7 Accumulated impairments (228.4 ) (368.4 ) (30.1 ) (626.9 ) Net balance at June 3 0, 2019 $ 177.4 $ 1,324.7 $ 1,227.7 $ 2,729.8 Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2018 License agreements $ 3,362.7 $ (792.9 ) $ — $ 2,569.8 Customer relationships 1,960.5 (508.7 ) (5.5 ) 1,446.3 Trademarks 1,002.1 (185.5 ) (0.4 ) 816.2 Product formulations and technology 361.2 (95.3 ) — 265.9 Total $ 6,686.5 $ (1,582.4 ) $ (5.9 ) $ 5,098.2 June 30, 2019 License agreements (a) $ 3,245.3 $ (874.5 ) $ (19.6 ) $ 2,351.2 Customer relationships (a) 1,951.6 (642.0 ) (5.5 ) 1,304.1 Trademarks (b) 1,039.5 (229.4 ) (0.5 ) 809.6 Product formulations and technology 354.1 (126.5 ) — 227.6 Total $ 6,590.5 $ (1,872.4 ) $ (25.6 ) $ 4,692.5 (a) Includes measurement period adjustments during the twelve month period ended June 30, 2019 in connection with the Burberry Beauty Business acquisition (Refer to Note 3 — Business Combinations ). (b) Includes acquired trademark of $40.8 . During fiscal 2019, the Company acquired a trademark associated with a preexisting license. As a result of the acquisition, the preexisting license was effectively terminated, and accordingly the Company recorded $12.6 of Asset impairment charges in the Consolidated Statement of Operations related to the license agreement that is part of the Luxury reporting unit. 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. The Company recorded losses (gains) of $28.6 and $(3.1) , which are reflected in Loss (gain) on sale of assets in the Consolidated Statements of Operations for the fiscal years ended June 30, 2018 and 2017 , respectively. Amortization expense totaled $353.5 , $352.8 and $275.1 for the fiscal years ended June 30, 2019 , 2018 and 2017 , 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 24.0 years Customer relationships 15.4 years Trademarks 21.1 years Product formulations and technology 9.8 years As of June 30, 2019 , the remaining weighted-average life of all intangible assets subject to amortization is 20.4 years . The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below: 2020 $ 345.8 2021 340.3 2022 322.8 2023 314.4 2024 274.3 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, 2019 | |
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, 2019 and 2018 are presented below: June 30, June 30, Advertising, marketing and licensing $ 404.1 $ 435.5 Compensation and other compensation related benefits 304.0 333.1 Customer returns, discounts, allowances and bonuses 262.0 328.2 Value added tax, sales and other non-income taxes 128.0 134.5 Restructuring costs 67.0 263.8 Mandatorily redeemable financial instrument liability (See Note 20) 51.8 46.6 Auditing, consulting, legal and litigation accruals 45.0 34.1 Interest 29.7 31.5 Interest rate swap liability 17.9 — Deferred income 13.8 25.5 Unfavorable contract liability 11.0 11.3 Tax indemnity liability — 21.1 Other 149.4 179.2 Total accrued expenses and other current liabilities $ 1,483.7 $ 1,844.4 |
OTHER NONCURRENT LIABILITIES
OTHER NONCURRENT LIABILITIES | 12 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
OTHER NONCURRENT LIABILITIES | OTHER NONCURRENT LIABILITIES Other noncurrent liabilities as of June 30, 2019 and 2018 are presented below: June 30, June 30, Noncurrent income tax liabilities $ 179.9 $ 137.7 Unfavorable contract liabilities 90.5 104.1 Deferred rent 57.4 54.2 Restructuring costs 26.1 31.1 Interest rate swap liability 24.1 — Mandatorily redeemable financial instrument liability (See Note 20) 6.1 6.7 Burberry contingent consideration 2.3 8.3 Other 40.8 46.4 Total other noncurrent liabilities $ 427.2 $ 388.5 |
DEBT
DEBT | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT June 30, June 30, Short-term debt $ 4.2 $ 9.2 2018 Coty Credit Agreement 2018 Coty Revolving Credit Facility due April 2023 792.1 368.1 2018 Coty Term A Facility due April 2023 3,147.0 3,371.5 2018 Coty Term B Facility due April 2025 2,342.3 2,390.5 Senior Unsecured Notes 2026 Dollar Notes due April 2026 550.0 550.0 2023 Euro Notes due April 2023 625.0 640.9 2026 Euro Notes due April 2026 284.1 291.4 Other long-term debt and capital lease obligations 1.1 1.6 Total debt 7,745.8 7,623.2 Less: Short-term debt and current portion of long-term debt (193.8 ) (218.9 ) Total Long-term debt 7,552.0 7,404.3 Less: Unamortized debt issuance costs (71.3 ) (86.2 ) Less: Discount on Long-term debt (10.8 ) (12.7 ) Total Long-term debt, net $ 7,469.9 $ 7,305.4 Short-Term Debt The Company maintains short-term lines of credit with financial institutions around the world. Total available lines of credit were $113.5 and $129.2 , of which $2.3 and $4.7 were outstanding at June 30, 2019 and 2018 , 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 0.4% to 7.3% and from 0.2% to 10.7% as of June 30, 2019 and 2018 , respectively. The weighted-average interest rate on short-term debt outstanding was 3.3% and 2.2% as of June 30, 2019 and 2018 , respectively. In addition, the Company had undrawn letters of credit of $6.3 and $5.4 and bank guarantees of $97.1 and $59.8 as of June 30, 2019 and 2018 , respectively. Long-Term Debt The Company’s long-term debt facilities consisted of the following as of June 30, 2019 and 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 (a) LIBOR (b) 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 (d) (e) (f) 1.75% N/A (c) Payable in full at maturity date 2018 Coty Term A Facility - USD Portion April 2023 $1,000.0 1.75% N/A (c) 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 1.75% N/A (c) 2018 Coty Term B Facility - USD Portion April 2025 $1,400.0 LIBOR (b) plus a margin of 2.25% per annum or a base rate plus a margin of 1.25% per annum (e) 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 (b) plus a margin of 2.50% per annum (e) 2.50% 0.25% 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 (c) N/A (c) 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 (c) N/A (c) 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 (c) N/A (c) (a) As of June 30, 2018, the 2018 Coty Revolving Credit Facility borrowing capacity was $3,250.0 . As a result of the June 27, 2019 credit agreement amendment (as described below), the borrowing capacity was reduced to $2,750.0 as of June 30, 2019. (b) As defined in the Interest section below. (c) N/A - Not Applicable. (d) As defined per the 2018 Coty Credit Agreement. (e) The selection of the applicable one, two, three, six or twelve month interest rate for the period is at the discretion of the Company. (f) 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 (d) . As of June 30, 2019 and 2018, the applicable rate on the unused commitment fee was 0.35% and 0.30% , respectively. Prior Coty Inc. Credit Facilities On October 27, 2015, the Company entered into a Credit Agreement (the “2015 Coty Credit Agreement”). The 2015 Coty Credit Agreement was subsequently amended on April 8, 2016 and October 28, 2016. 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”). These credit agreements were settled on April 5, 2018 as noted below. 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. 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) (1) a senior secured term A facility (as described in the table above, the “2018 Coty Term A Facility”) and (2) a senior secured term B facility (as described in the table above, 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 (as described in the table above, 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”). 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 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. On June 27, 2019, the Company entered into an amendment (“2019 Amendment”) to the 2018 Coty Credit Agreement. The 2019 Amendment modified the 2018 Coty Credit Agreement by amending the financial covenants to (i) delay until March 31, 2022 the total net leverage ratio step down from 5.25 to 5.0 (as further described in the Covenants section below), (ii) extend the applicable window for certain cost savings add-backs in the calculation of Adjusted EBITDA for purpose of determining the total net leverage ratio, and (iii) amend the determination of the exchange rate to be used for purposes of calculating “Total Indebtedness” (as defined in the 2018 Coty Credit Agreement) for purposes of the total net leverage ratio, and decreasing the total commitments under the revolving credit facility by $500.0 to $2,750.0 . In connection with the 2019 Amendment, the Company wrote off $3.8 of unamortized deferred financing fees, which were recorded as Other expense, net in the Consolidated Statement of Operations. Deferred Issuance Costs For the fiscal years ended June 30, 2019, 2018 and 2017 , the Company capitalized deferred financing fees of $5.9 , $37.8 , and $24.4 , respectively. The Company incurred $0.8 and $24.1 in third-party debt issuance costs during the fiscal years ended June 30, 2019 and 2018 , respectively, which were recorded as Other expense, net in the Consolidated Statement of Operations. Loss on Early Extinguishment of Debt During the fiscal years ended June 30, 2019, 2018 and 2017 , the Company wrote off $0.0 , $8.7 and $0.0 of unamortized deferred financing fees related to extinguishments of substantially different debt. Also during the fiscal years ended June 30, 2019, 2018 and 2017 , the Company wrote-off $0.0 , $2.0 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, 2019 June 30, 2018 Carrying Fair Carrying Fair 2018 Coty Credit Agreement $ 6,281.4 $ 6,058.9 $ 6,130.1 $ 6,070.8 Senior Unsecured Notes 1,459.1 1,439.6 1,482.3 1,449.9 The Company uses the market approach to value the 2018 Coty Credit Agreement and the Senior Unsecured Notes. 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, 2019 , are presented below: Fiscal Year Ending June 30, 2020 $ 189.3 2021 189.3 2022 189.3 2023 4,090.9 2024 23.6 Thereafter 3,058.1 Total $ 7,740.5 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, as amended, 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, 2019 through December 31, 2021 5.25 to 1.00 March 31, 2022 5.00 to 1.00 June 30, 2022 4.75 to 1.00 September 30, 2022 4.50 to 1.00 December 31, 2022 4.25 to 1.00 March 31, 2023 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, as amended). In the four fiscal quarters following the closing of any Material Acquisition (as defined in the 2018 Coty Credit Agreement, as amended), including the fiscal quarter in which such Material Acquisition occurs, the maximum Total Net Leverage Ratio shall be the lesser of (i) 5.95 to 1.00 and (ii) 1.00 higher than the otherwise applicable maximum Total Net Leverage Ratio for such quarter (as set forth in the table above). Immediately after any such four fiscal quarter period, there shall be at least two consecutive fiscal quarters during which our Total Net Leverage Ratio is no greater than the maximum Total Net Leverage Ratio that would otherwise have been required in the absence of such Material Acquisition, regardless of whether any additional Material Acquisitions are consummated during such period. As of June 30, 2019 , the Company was in compliance with all covenants contained within the Debt Agreements. |
LEASE AND OTHER COMMITMENTS
LEASE AND OTHER COMMITMENTS | 12 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASE AND OTHER COMMITMENTS | LEASE AND OTHER COMMITMENTS The Company leases office facilities, equipment and vehicles under non-cancellable operating leases. These leases expire on varying dates, in some instances contain renewal and expansion options, do not restrict the payment of dividends or the incurrence of debt or additional lease obligations, and contain no significant purchase options. In addition to the base rental costs, occupancy lease agreements generally provide for rent escalations resulting from increased assessments for real estate taxes and other charges. The Company incurred rent expense of $197.7 , $208.2 and $166.1 relating to operating leases in fiscal 2019 , 2018 and 2017 , respectively. The Company collected payments from sub-lessors relating to facilities no longer in use by the Company of $9.4 , $6.2 and $6.0 for fiscal 2019 , 2018 and 2017 , respectively. Minimum rental commitments under non-cancellable operating leases at June 30, 2019 are included in the following table under Leases. Purchase obligations include commitments to purchase inventory and other services. Fiscal Year Ending June 30, Leases Purchase Obligations 2020 $ 122.2 $ 317.9 2021 111.2 89.1 2022 91.3 66.8 2023 76.7 33.8 2024 67.8 22.3 Thereafter 252.3 0.5 721.5 530.4 Less: sublease income (20.1 ) N/A Total minimum payments required $ 701.4 $ 530.4 |
LEASE AND OTHER COMMITMENTS | LEASE AND OTHER COMMITMENTS The Company leases office facilities, equipment and vehicles under non-cancellable operating leases. These leases expire on varying dates, in some instances contain renewal and expansion options, do not restrict the payment of dividends or the incurrence of debt or additional lease obligations, and contain no significant purchase options. In addition to the base rental costs, occupancy lease agreements generally provide for rent escalations resulting from increased assessments for real estate taxes and other charges. The Company incurred rent expense of $197.7 , $208.2 and $166.1 relating to operating leases in fiscal 2019 , 2018 and 2017 , respectively. The Company collected payments from sub-lessors relating to facilities no longer in use by the Company of $9.4 , $6.2 and $6.0 for fiscal 2019 , 2018 and 2017 , respectively. Minimum rental commitments under non-cancellable operating leases at June 30, 2019 are included in the following table under Leases. Purchase obligations include commitments to purchase inventory and other services. Fiscal Year Ending June 30, Leases Purchase Obligations 2020 $ 122.2 $ 317.9 2021 111.2 89.1 2022 91.3 66.8 2023 76.7 33.8 2024 67.8 22.3 Thereafter 252.3 0.5 721.5 530.4 Less: sublease income (20.1 ) N/A Total minimum payments required $ 701.4 $ 530.4 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES (Loss) income before income taxes in fiscal 2019 , 2018 and 2017 is presented below: Year Ended June 30, 2019 2018 2017 United States $ (1,994.3 ) $ (324.2 ) $ (524.8 ) Foreign (1,783.8 ) 171.7 (133.2 ) Total $ (3,778.1 ) $ (152.5 ) $ (658.0 ) The components of the Company’s total (benefit) provision for income taxes during fiscal 2019 , 2018 and 2017 are presented below: Year Ended June 30, 2019 2018 2017 (Benefit) provision for income taxes: Current: Federal $ 0.8 $ 0.2 $ 0.4 State and local 11.1 9.8 1.1 Foreign 155.3 67.0 129.0 Total 167.2 77.0 130.5 Deferred: Federal (116.6 ) 25.2 (256.9 ) State and local (49.9 ) (0.7 ) (24.2 ) Foreign (9.2 ) (126.2 ) (108.9 ) Total (175.7 ) (101.7 ) (390.0 ) Benefit for income taxes $ (8.5 ) $ (24.7 ) $ (259.5 ) During fiscal 2019 , the Company recorded goodwill impairment that is not tax-deductible. 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 . The reconciliation of the U.S. Federal statutory tax rate to the Company’s effective income tax rate during fiscal 2019 , 2018 and 2017 is presented below: Year Ended June 30, 2019 2018 2017 Income (loss) before income taxes $ (3,778.1 ) $ (152.5 ) $ (658.0 ) Benefit for income taxes at statutory rate $ (793.4 ) $ (42.8 ) $ (230.3 ) State and local taxes—net of federal benefit (30.7 ) 9.9 (15.0 ) Foreign tax differentials 58.8 (21.9 ) 53.3 Change in valuation allowances (6.7 ) 8.6 (108.2 ) Change in unrecognized tax benefit 43.4 (24.8 ) 25.6 Tax Act — 41.0 — Permanent differences—net 1.8 (8.5 ) 1.2 Amortization on intercompany sale — 5.4 5.7 Goodwill impairment 693.0 — — Other 25.3 8.4 8.2 (Benefit) provision for income taxes $ (8.5 ) $ (24.7 ) $ (259.5 ) Effective income tax rate 0.2 % 16.2 % 39.4 % Significant components of deferred income tax assets and liabilities as of June 30, 2019 and 2018 are presented below: June 30, June 30, Deferred income tax assets: Inventories $ 21.6 $ 9.0 Accruals and allowances 63.1 84.2 Sales returns 18.4 13.1 Share-based compensation 14.8 13.4 Employee benefits 133.8 115.7 Net operating loss carry forwards and tax credits 294.3 285.1 Interest expense limitation carry forward 52.3 — Other 37.1 48.3 Less: valuation allowances (67.7 ) (104.6 ) Net deferred income tax assets 567.7 464.2 Deferred income tax liabilities: Intangible assets 986.6 1,115.7 Property, plant and equipment 13.4 18.9 Unrealized gain 0.5 5.4 Licensing rights 23.7 21.5 Other 49.7 37.8 Deferred income tax liabilities 1,073.9 1,199.3 Net deferred income tax liabilities $ (506.2 ) $ (735.1 ) The expirations of tax loss carry forwards, amounting to $1,272.7 as of June 30, 2019 , 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 2020 $ — $ — $ 68.1 $ 68.1 2021 — — 13.3 13.3 2022 — 1.2 18.5 19.7 2023 — 1.7 8.3 10.0 2024 and thereafter 149.8 835.4 176.4 1,161.6 Total $ 149.8 $ 838.3 $ 284.6 $ 1,272.7 The total valuation allowances recorded are $67.7 and $104.6 as of June 30, 2019 and 2018 , respectively. In fiscal 2019 , the change in the valuation allowance was due primarily to valuation allowances released on net operating losses and due to less foreign tax credit carryforwards being available after the one-time deemed repatriation tax under the Tax Act. A reconciliation of the beginning and ending amount of UTBs is presented below: Year Ended June 30, 2019 2018 2017 UTBs—July 1 $ 303.6 $ 257.9 $ 228.9 Additions based on tax positions related to the current year 49.1 44.1 43.6 Additions for tax positions of prior years 8.3 97.4 0.4 Reductions for tax positions of prior years (9.6 ) (39.9 ) — Settlements (2.7 ) (42.3 ) (1.5 ) Lapses in statutes of limitations (9.0 ) (11.0 ) (13.2 ) Foreign currency translation (3.6 ) (2.6 ) (0.3 ) UTBs—June 30 $ 336.1 $ 303.6 $ 257.9 As of June 30, 2019 , the Company had $336.1 of UTBs of which $162.2 represents the amount that, if recognized, would impact the effective income tax rate in future periods. As of June 30, 2019 and 2018 , the liability associated with UTBs, including accrued interest and penalties, is $179.9 and $135.4 , respectively, which is recorded in Income and other taxes payable and Other non-current liabilities in the Consolidated Balance Sheets. During fiscal 2019 , the Company accrued interest of $4.5 , while in fiscal 2018 and 2017 the Company accrued interest of $0.8 and $1.4 , respectively. During fiscal 2019 , the Company accrued penalties of $0.0 , while in fiscal 2018 and 2017 the Company accrued penalties of $0.4 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, 2019 and 2018 is $17.3 and $13.1 , 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 2019 and 2018 , the Company recognized a tax benefit of $11.7 and $53.3 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, 2019 , it is reasonably possible that a decrease of up to $23.1 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 $4,600.0 , 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. The Company recorded its initial estimate of the impact of the Tax Act in fiscal 2018. This estimate was a charge of approximately $41.0 as a result of utilizing tax attributes (e.g., net operating losses and foreign tax credits) to fully offset the cash impact of the one-time deemed repatriation tax. During fiscal 2019, the Company finalized its estimate of the impact of the Tax Act and no additional adjustments were required. |
INTEREST EXPENSE, NET
INTEREST EXPENSE, NET | 12 Months Ended |
Jun. 30, 2019 | |
Interest Income (Expense), Net [Abstract] | |
INTEREST EXPENSE, NET | INTEREST EXPENSE, NET Interest expense, net for the years ended June 30, 2019 , 2018 and 2017 is presented below: Year Ended June 30, 2019 2018 2017 Interest expense $ 302.5 $ 287.1 $ 219.6 Foreign exchange (gain) losses, net of derivative contracts (a) (7.6 ) (8.5 ) 3.4 Interest income (19.2 ) (13.6 ) (4.4 ) Total interest expense, net $ 275.7 $ 265.0 $ 218.6 (a) In the year ended June 30, 2018, the Company recorded gains of $1.4 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 included within total Interest expense, net for the fiscal year ended June 30, 2018 in the Company’s Consolidated Statements of Operations. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 30, 2019 | |
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 2019 , 2018 and 2017 , the defined contribution expense for the U.S. defined contribution plan was $20.4 , $22.0 and $20.6 , respectively, and the defined contribution expense for the international savings plans was $12.9 , $18.3 and $13.3 , respectively. Pension Plans - The Company sponsors contributory and noncontributory defined benefit pension plans covering certain U.S. and international employees primarily in France, Germany 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 As part of Global Integration Activities, the Company concluded that restructuring actions resulted in a significant reduction of future services of active employees in certain of our non-U.S. pension plans. As a result, the Company recognized curtailment gains of $5.1 during the year ended June 30, 2019, and net settlement gains of $0.4 and net curtailment gains of $0.4 during the year ended June 30, 2017. The impact of settlement and curtailment activity on the current and prior comparative periods is included in Other expense, net in the Consolidated Statements of Operations, after the adoption of ASU 2017-07. During fiscal 2017, the Company recognized a curtailment gain of $1.8 in connection with involuntary employee terminations as part of an integration and restructuring program in connection with the Bourjois acquisition, which significantly reduced the expected years of future service of employees within one of the Company’s non-U.S. pension plans. This curtailment gain is included in Other expense, net in the Consolidated Statements of Operations. The Company settled obligations to U.S. Del Laboratories, Inc. pension plan (the “Del Plan”) participants during fiscal 2017 resulting in the recognition of pre-tax settlement losses of $15.9 , included in Other expense, net in the Consolidated Statement of Operations for the year ended June 30, 2017. The Del Plan was fully terminated as a result of these actions. Plan Amendments for Pension Plans - In June of fiscal 2019, an international pension plan in Switzerland was amended to reduce the interest rate used to calculated future payments to 2.00% from 2.25% . In addition, the annuity conversion rate related to this pension plan was reduced to 5.10% from 6.21% . The impact of these changes resulted in a reduction to the benefit obligation associated with this plan of $10.3 . Other Post-Employment Benefit Plans (“OPEB”) - The Company provides certain post-employment health and life insurance benefits for certain employees and spouses principally in the U.S. and France 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 a non-U.S. postretirement healthcare plan 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 Other expense, net 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 2019 2018 2019 2018 2019 2018 2019 2018 Change in benefit obligation Benefit obligation—July 1 $ 17.5 $ 18.8 $ 732.6 $ 708.8 $ 53.2 $ 63.8 $ 803.3 $ 791.4 Service cost — — 33.3 38.8 1.2 1.4 34.5 40.2 Interest cost 0.7 0.7 12.8 12.6 2.1 2.0 15.6 15.3 Plan participants’ contributions — — 7.0 7.1 0.2 0.2 7.2 7.3 Plan amendments — — (10.3 ) — — — (10.3 ) — Benefits paid (1.3 ) (1.3 ) (16.9 ) (53.1 ) (1.8 ) (1.6 ) (20.0 ) (56.0 ) New employees transfers in — — 16.2 23.5 — — 16.2 23.5 Premiums paid — — (2.5 ) (2.7 ) — — (2.5 ) (2.7 ) Pension curtailment — — (5.4 ) 0.3 — (10.4 ) (5.4 ) (10.1 ) Pension settlement — — (37.4 ) (1.0 ) — — (37.4 ) (1.0 ) Actuarial loss (gain) 0.8 (0.7 ) 69.9 (6.3 ) 4.1 (2.5 ) 74.8 (9.5 ) Effect of exchange rates — — (10.8 ) 4.6 (0.1 ) 0.3 (10.9 ) 4.9 Other — — 1.6 — (1.1 ) — 0.5 — Benefit obligation—June 30 $ 17.7 $ 17.5 $ 790.1 $ 732.6 $ 57.8 $ 53.2 $ 865.6 $ 803.3 Change in plan assets Fair value of plan assets—July 1 $ — $ — $ 261.8 $ 234.2 $ 0.4 $ 0.4 $ 262.2 $ 234.6 Actual return on plan assets — — 3.5 18.8 — — 3.5 18.8 Employer contributions 1.3 1.3 36.4 37.1 1.6 1.4 39.3 39.8 Plan participants’ contributions — — 7.0 7.1 0.2 0.2 7.2 7.3 Benefits paid (1.3 ) (1.3 ) (16.9 ) (52.7 ) (1.8 ) (1.6 ) (20.0 ) (55.6 ) New employees transfers in — — 16.2 23.5 — — 16.2 23.5 Premiums paid — — (2.5 ) (2.7 ) — — (2.5 ) (2.7 ) Plan settlements — — (37.4 ) (1.0 ) — — (37.4 ) (1.0 ) Effect of exchange rates — — (0.1 ) (2.5 ) — — (0.1 ) (2.5 ) Other — — 0.5 — — — 0.5 — Fair value of plan assets—June 30 — — 268.5 261.8 0.4 0.4 268.9 262.2 Funded status—June 30 $ (17.7 ) $ (17.5 ) $ (521.6 ) $ (470.8 ) $ (57.4 ) $ (52.8 ) $ (596.7 ) $ (541.1 ) 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, 2019 and 2018 , are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2019 2018 2019 2018 2019 2018 2019 2018 Noncurrent assets $ — $ — $ 1.5 $ 1.1 $ — $ — $ 1.5 $ 1.1 Current liabilities (1.4 ) (1.3 ) (0.8 ) (5.5 ) (2.5 ) (2.1 ) (4.7 ) (8.9 ) Noncurrent liabilities (16.3 ) (16.2 ) (522.3 ) (466.4 ) (54.9 ) (50.7 ) (593.5 ) (533.3 ) Funded status (17.7 ) (17.5 ) (521.6 ) (470.8 ) (57.4 ) (52.8 ) (596.7 ) (541.1 ) AOC(L)/I 0.2 1.7 (20.3 ) 44.7 10.0 20.1 (10.1 ) 66.5 Net amount recognized $ (17.5 ) $ (15.8 ) $ (541.9 ) $ (426.1 ) $ (47.4 ) $ (32.7 ) $ (606.8 ) $ (474.6 ) The accumulated benefit obligation for the U.S. defined benefit pension plans was $17.7 and $17.5 as of June 30, 2019 and 2018 , respectively. The accumulated benefit obligation for international defined benefit pension plans was $733.7 and $669.1 as of June 30, 2019 and 2018 , 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 2019 2018 2019 2018 2019 2018 2019 2018 Projected benefit obligation $ 17.7 $ 17.5 $ 767.5 $ 713.9 $ 17.7 $ 17.5 $ 775.9 $ 725.0 Accumulated benefit obligation 17.7 17.5 716.3 657.8 17.7 17.5 733.7 669.1 Fair value of plan assets — — 248.2 247.0 — — 254.9 254.2 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 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Service cost $ — $ — $ — $ 33.3 $ 38.8 $ 34.8 $ 1.2 $ 1.4 $ 1.9 $ 34.5 $ 40.2 $ 36.7 Interest cost 0.7 0.7 1.6 12.8 12.6 6.6 2.1 2.0 1.8 15.6 15.3 10.0 Expected return on plan assets — — (0.9 ) (8.2 ) (7.5 ) (6.3 ) — — — (8.2 ) (7.5 ) (7.2 ) 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 (gain) loss (0.7 ) (0.7 ) 2.3 0.3 1.2 4.2 (0.1 ) (0.1 ) 0.1 (0.5 ) 0.4 6.6 Settlements (gain) loss recognized — — 15.9 (0.8 ) — (0.5 ) — — — (0.8 ) — 15.4 Curtailment (gain) loss recognized — — — (5.4 ) 0.1 (2.2 ) — (10.4 ) — (5.4 ) (10.3 ) (2.2 ) Net periodic benefit cost $ — $ — $ 18.9 $ 32.2 $ 45.4 $ 36.8 $ (2.7 ) $ (13.0 ) $ (2.1 ) $ 29.5 $ 32.4 $ 53.6 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 2019 2018 2019 2018 2019 2018 2019 2018 Net actuarial (loss) gain $ 0.2 $ 1.7 $ (29.0 ) $ 46.7 $ (0.4 ) $ 3.8 $ (29.2 ) $ 52.2 Prior service credit (cost) — — 8.7 (2.0 ) 10.4 16.3 19.1 14.3 Total recognized in AOC(L)/I $ 0.2 $ 1.7 $ (20.3 ) $ 44.7 $ 10.0 $ 20.1 $ (10.1 ) $ 66.5 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 2019 2018 2019 2018 2019 2018 2019 2018 Net actuarial (loss) gain $ (0.8 ) $ 0.7 $ (74.6 ) $ 17.8 $ (4.1 ) $ 2.3 $ (79.5 ) $ 20.8 Amortization of prior service (credit) cost — — 0.2 0.2 (5.9 ) (5.9 ) (5.7 ) (5.7 ) Recognized net actuarial (gain) loss (0.7 ) (0.6 ) (0.5 ) 1.2 (0.1 ) (0.1 ) (1.3 ) 0.5 Prior service credit (cost) — — 10.3 — — — 10.3 — Effect of exchange rates — — (0.4 ) 0.3 — 0.1 (0.4 ) 0.4 Total recognized in OCI/(L) $ (1.5 ) $ 0.1 $ (65.0 ) $ 19.5 $ (10.1 ) $ (3.6 ) $ (76.6 ) $ 16.0 Amounts in AOCI/(L) expected to be amortized as components of net periodic benefit cost during fiscal 2020 are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International Prior service credit (cost) $ — $ 0.8 $ 5.9 $ 6.7 Net gain (loss) (0.7 ) 0.1 0.1 (0.5 ) Total $ (0.7 ) $ 0.9 $ 6.0 $ 6.2 Pension and Other Post-Employment Benefit Assumptions The weighted-average assumptions used to determine the Company’s projected benefit obligation above are presented below: Pension Plans Other Post-Employment Benefits U.S. International 2019 2018 2019 2018 2019 2018 Discount rates 3.2%-3.6% 4% 0.4%-8.4% 0.6%-8.0% 1.7%-3.5% 2.3%-4.2% Future compensation growth rates N/A N/A 1.0%-5.8% 1.5%-5.8% N/A N/A The weighted-average assumptions used to determine the Company’s net periodic benefit cost in fiscal 2019 , 2018 and 2017 are presented below: Pension Plans Other Post- U.S. International 2019 2018 2017 2019 2018 2017 2019 2018 2017 Discount rates 4% 3.6% 3.3%-3.8% 0.6%-8.0% 0.4%-7.5% 0.2%-7.8% 2.3%-4.2% 1.9%-7.6% 1.4%-8.0% Future compensation growth rates N/A N/A N/A 1.5%-5.7% 1.5%-6.0% 1.5%-5.8% N/A N/A N/A Expected long-term rates of return on plan assets N/A N/A N/A 2.0%-8.4% 1.8%-8.2% 1.6%-6.0% 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, 2019 2018 2017 Health care cost trend rate assumed for next year 7.1%-8.0% 7.4%-8.5% 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 2026 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 $ 6.6 $ (5.8 ) Effect on post-employment benefit obligation 0.4 (0.3 ) 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, 2019 and 2018 , by asset category are presented below: % of Plan Assets at Year Ended Target 2019 2018 Equity securities 40% 41% 41% Fixed income securities 50% 42% 42% Cash and other investments 10% 17% 17% 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, 2019 and 2018 are presented below: Level 1 Level 2 Level 3 Total 2019 2018 2019 2018 2019 2018 2019 2018 Equity securities $ 66.8 $ 63.0 $ — $ — $ — $ — $ 66.8 $ 63.0 Fixed income securities: Corporate securities 57.9 54.6 — — — — 57.9 54.6 Other: Cash and cash equivalents 1.0 0.9 — — — — 1.0 0.9 Insurance contracts and other — — — — 143.2 143.7 143.2 143.7 Total pension plan assets $ 125.7 $ 118.5 $ — $ — $ 143.2 $ 143.7 $ 268.9 $ 262.2 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 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 2019 and 2018 are presented below: June 30, June 30, Insurance contracts: Fair value—July 1 $ 143.7 $ 130.2 Plan assets from acquisitions — — Return on plan assets (0.2 ) 14.0 Purchases, sales and settlements, net (2.5 ) 3.9 Effect of exchange rates 2.2 (4.4 ) Fair value—June 30 $ 143.2 $ 143.7 Contributions The Company plans to contribute approximately $1.3 to its remaining U.S. pension plan and expects to contribute approximately $35.5 and $2.4 to its international pension and other post-employment benefit plans, respectively, during fiscal 2020 . 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 2020 $ 1.3 $ 36.9 $ 2.4 $ 40.6 2021 1.3 25.2 2.8 29.3 2022 1.3 25.1 3.1 29.5 2023 1.3 25.8 3.4 30.5 2024 1.2 25.8 3.5 30.5 2025 - 2027 5.8 152.2 18.9 176.9 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Jun. 30, 2019 | |
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 2020 . 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. Hedge effectiveness of interest rate swap contracts is based on a long-haul hypothetical derivative methodology and includes all changes in value. During August 2018, the Company extended the maturity of the interest rate swap portfolio through fiscal 2021 by replacing its original swap contracts with swap contracts having longer maturities to manage the medium term exposure to interest rate increases. The Company received $43.2 for settlement of the original swap contracts. As the forecasted interest expense under the original swap agreements is still probable, the related AOCI/(L) will be amortized in line with the timing of the forecasted transactions. As of June 30, 2019 and 2018 , 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 2019 , 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 €3,699.3 million and €3,204.1 million as of June 30, 2019 and 2018 , 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, 2019 . 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 $214.8 and $115.0 as of June 30, 2019 and 2018 , 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, 2019 2018 2017 Foreign exchange forward contracts $ 0.9 $ (0.3 ) $ (0.8 ) Interest rate swap contracts (47.4 ) 27.0 40.8 Net investment hedges 99.8 138.7 (21.2 ) The accumulated (loss) gain on derivative instruments classified as cash flow hedges in AOCI/(L), net of tax, was $(13.3) and $31.7 as of June 30, 2019 and 2018 , respectively. The estimated net loss 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 $(1.7) . 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, 2019 2018 2017 Foreign exchange forward contract: Net revenues $ — $ (0.8 ) $ 2.4 Cost of sales 0.2 (0.7 ) (2.2 ) Interest rate swap contracts: Interest income (expense), net 12.4 6.9 (9.3 ) 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, 2019 2018 2017 Selling, general and administrative $ 0.1 $ (0.8 ) $ (0.1 ) Interest income (expense), net 0.1 17.5 (6.5 ) Other income (expense), net — 0.2 (1.1 ) |
MANDATORILY REDEEMABLE FINANCIA
MANDATORILY REDEEMABLE FINANCIAL INTEREST | 12 Months Ended |
Jun. 30, 2019 | |
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, 2019 and 2018 , the liability amounted to $7.5 and $8.2 , respectively, of which $6.1 and $6.7 , respectively, was recorded in Other noncurrent liabilities and $1.4 and $1.5 , 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 $37.2 and $26.7 as of June 30, 2019 , and $33.2 and $20.2 as of June 30, 2018 , respectively. Southeast Asian subsidiary On May 23, 2017, the Company entered into the Sale of Shares and Termination Deed, as amended (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 by December 31, 2019. As a result of the Termination Agreement, the noncontrolling interest balance is recorded as an MRFI. The MRFI balance was accreted to the redemption value through the effective date of the purchase with changes in the balance being reflected in Other income (expense) in the Consolidated Statements of Operations. The termination was effective on June 30, 2019 and the Company remitted purchase consideration of $45.0 in July of fiscal 2020 to the noncontrolling interest holder. As of June 30, 2019 and 2018 , the MRFI liability, which includes the termination payment and dividends payable to the noncontrolling interest holder, amounted to $50.4 and $45.1 |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS As of June 30, 2019 , 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 As of June 30, 2018, the Younique membership holders had a 40.6% membership interest in Foundation, which holds 100% of the units of Younique. During the year ended June 30, 2019 , additional shares of Foundation were issued to employees of Younique under a stock ownership program and incentive stock grants were granted, resulting in a 0.1% increase to the noncontrolling interest ownership percentage. The cumulative impact of the additional shares for the year ended June 30, 2019 was recorded as an increase to RNCI of $1.6 and a decrease in additional paid-in capital (“APIC”) of $1.6 . The Company accounts for the 40.7% 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 59.3% 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 40.7% noncontrolling interest of Foundation’s net income excluding a provision for income taxes. The Company recognized $365.3 and $597.7 as the redeemable noncontrolling interest balances as of June 30, 2019 and 2018 , 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 higher of the redemption value (fair value) or the carrying value (the acquisition date fair value adjusted for the noncontrolling interest’s share of net income (loss) and dividends). The Company adjusts Foundation’s RNCI 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 June 30, 2019 , the noncontrolling interest holder in the Company’s subsidiary in the Middle East (“Middle East Subsidiary”) had a 25% ownership share. 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 $86.5 and $63.6 as the redeemable noncontrolling interest balances as of June 30, 2019 and 2018 , 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) The parties are 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) The parties are 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, 2019 | |
Equity [Abstract] | |
EQUITY | EQUITY Common Stock As of June 30, 2019 , 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, 2019 , total authorized shares of Class A Common Stock was 1,000.0 million and total outstanding shares of Class A Common Stock was 754.2 million . In the fiscal years ended June 30, 2019 , 2018 , and 2017 , the Company issued 1.0 million , 2.9 million , and 2.5 million shares of its Class A Common Stock, respectively, and received $5.2 , $22.6 , and $21.3 , in cash, respectively, in connection with the exercise of employee stock options and settlement of RSUs and special incentive awards. During the fiscal years ended June 30, 2019 , 2018 and 2017 , Cottage Holdco B.V. (“Cottage”), a wholly-owned subsidiary of JAB Cosmetics B.V. (“JABC”), and JABC acquired 10.8 million , 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 Cottage or JABC. On April 30, 2019, Cottage completed a tender offer transaction (the “Offer”), acquiring 150.0 million of outstanding Class A shares of the Company at a price of $11.65 per share and as a result, became the Company’s majority stockholder. Immediately after completion of this tender offer transaction, Cottage indirectly controlled approximately 60% of Coty’s Class A shares and the Company became a majority-owned subsidiary of Cottage. Both Cottage and the shares of the Company held by JABC are indirectly controlled by Lucresca SE, Agnaten SE and JAB Holdings B.V. (“JAB”). The Company did not receive any proceeds from these stock purchases conducted by Cottage. 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 JABC. 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, 2019 , the Company’s preferred stock consisted of Series A and Series A-1 Preferred Stock with a par value of $0.01 . The Series A and Series A-1 Preferred Stock are not entitled to receive any dividends and have no voting rights except as required by law. As of June 30, 2019, total authorized shares of preferred stock are 20.0 million . On May 18, 2018, the Company reduced the total authorized number of shares of Series A Preferred Stock from 6.5 million to 6.3 million . On January 15, 2019, the Company cancelled 3.0 million shares of its Series A Preferred Stock that were forfeited during the six months ended December 31, 2018, reducing the total authorized number of shares of Series A Preferred Stock from 6.3 million to 3.3 million . On February 4, 2019, the Company authorized, designated and issued 6.9 million shares of Series A-1 Preferred Stock. On June 14, 2019, the Company authorized, designated and issued 1.0 million shares of Series A-1 Preferred Stock, increasing the total authorized number of shares of Series A-1 Preferred Stock from 6.9 million to 7.9 million . On June 18, 2019, the Company cancelled 0.4 million shares of its Series A Preferred Stock that were forfeited during the three months ended March 31, 2019, reducing the total authorized number of shares of Series A Preferred Stock from 3.3 million to 2.9 million . The Series A and Series A-1 Preferred Stock are issued to executive officers and directors under subscription agreements. Generally, the subscription agreements entitle the holder of the vested Series A or Series A-1 Preferred Stock to exchange the Series A or Series A-1 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 is generally 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. The Series A-1 Preferred Stock generally vests on graded vesting terms where 60% of the award granted vests after three years , 20% of the award granted vests after four years and 20% of the award granted vests after five years , 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 outstanding issuance of Series A and Series A-1 Preferred Stock: Issuance Date Type Number of Shares Awarded at Grant Date (millions of shares) Number of Shares Outstanding (millions of shares) Hurdle Price per Share February 16, 2017 (a) Series A 0.5 0.3 $ 22.66 March 27, 2017 (a) (b) Series A 1.0 1.0 $ 22.39 November 16, 2017 (a) Series A 1.0 0.2 $ 19.85 February 4, 2019 (a) Series A-1 6.9 6.9 $ 8.75 June 14, 2019 (a) Series A-1 1.0 1.0 $ 14.48 (a) If the holder does not exchange the vested Series A or Series A-1 Preferred Stock by a specified expiration date, the Company must automatically exchange the Series A or Series A-1 Preferred Stock into cash or shares, at election of the Company. (b) This grant was sold to Lambertus J.H. Becht (“Mr. Becht”), the Company’s former 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, 2019 . An expense (income) of $(0.1) and $(1.7) and $3.8 was recorded during fiscal 2019 , 2018 and 2017 , respectively, and has been included in Selling, general and administrative expense on the Consolidated Statements of Operations. As of June 30, 2019 , total authorized shares of Series A and Series A-1 Preferred Stock are 2.9 million and 7.9 million , respectively, and total outstanding shares of Series A and Series A-1 Preferred Stock are 1.5 million and 7.9 million , respectively. Of the 1.5 million outstanding shares of Series A Preferred Stock, 1.0 million shares vested on March 27, 2017, 0.3 million shares vest on February 16, 2022 and 0.2 million shares vest on November 16, 2022. Of the 7.9 million outstanding shares of Series A-1 Preferred Stock, 4.1 million shares vest on November 12, 2021, 1.4 million shares vest on November 12, 2022, 1.4 million shares vest on November 12, 2023, 0.6 million shares vest on May 10, 2022, 0.2 million shares vest on May 10, 2023 and 0.2 million shares vest on May 10, 2024. As of June 30, 2019 , the Company classified $0.7 Series A and Series A-1 Preferred Stock as equity and $2.0 as a liability, inclusive of the related cash bonuses, recorded in Other noncurrent liabilities in the Consolidated Balance Sheet. Dividends On June 6, 2019, the Company registered 9.3 million shares of Class A Common Stock for purchase under the Stock Dividend Reinvestment Program. All holders of records of Class A Common Stock have the opportunity to participate in the program. If a holder elects to participate in the program, fifty percent ( 50% ) of their cash dividends will be reinvested in additional shares of Class A Common Stock. 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 P&G Beauty Business Acquisition dated July 8, 2015 (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 2019 , 2018 and 2017 : Declaration Date Dividend Type Dividend Per Share Holders of Record Date Dividend Value Dividend Payment Date Dividends Settled in Cash Dividends Settled in Stock (a) Dividends Payable (b) Fiscal 2019 August 21, 2018 Quarterly $ 0.125 August 31, 2018 $ 94.6 September 14, 2018 $ 93.8 N/A $ 0.8 November 7, 2018 Quarterly $ 0.125 November 30, 2018 $ 95.1 December 14, 2018 $ 93.9 N/A $ 1.2 February 8, 2019 Quarterly $ 0.125 February 28, 2019 $ 95.1 March 15, 2019 $ 93.9 N/A $ 1.2 May 8, 2019 Quarterly $ 0.125 June 6, 2019 $ 95.1 June 28, 2019 $ 63.4 $ 30.6 $ 1.1 Fiscal 2019 $ 0.500 $ 379.9 $ 345.0 $ 30.6 $ 4.3 Fiscal 2018 August 22, 2017 Quarterly $ 0.125 September 1, 2017 $ 94.4 September 14, 2017 $ 93.6 N/A $ 0.8 November 9, 2017 Quarterly $ 0.125 November 30, 2017 $ 94.6 December 14, 2017 $ 93.7 N/A $ 0.9 February 8, 2018 Quarterly $ 0.125 February 28, 2018 $ 94.6 March 15, 2018 $ 93.8 N/A $ 0.8 May 9, 2018 Quarterly $ 0.125 May 31, 2018 $ 94.6 June 14, 2018 $ 93.8 N/A $ 0.8 Fiscal 2018 $ 0.500 $ 378.2 $ 374.9 N/A $ 3.3 Fiscal 2017 August 1, 2016 Annual $ 0.275 August 11, 2016 $ 93.4 August 19, 2016 $ 92.4 N/A $ 1.0 December 9, 2016 Quarterly $ 0.125 December 19, 2016 $ 94.0 December 28, 2016 $ 93.4 N/A $ 0.6 February 9, 2017 Quarterly $ 0.125 February 28, 2017 $ 94.0 March 10, 2017 $ 93.4 N/A $ 0.6 May 10, 2017 Quarterly $ 0.125 May 31, 2017 $ 94.0 June 13, 2017 $ 93.4 N/A $ 0.6 Fiscal 2017 $ 0.650 $ 375.4 $ 372.6 N/A $ 2.8 (a) The June 28, 2019 stock dividend payment of $30.6 resulted in the issuance of 2.4 million shares of Class A Common Stock. (b) 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. Total dividends in cash and other recorded to additional paid-in capital (“APIC”) in the Condensed Consolidated Balance Sheet as of June 30, 2019 was $(347.5) , consisting of $345.0 dividends settled in cash, $4.3 dividends payable, offset by $1.8 of dividends no longer expected to vest as a result of forfeitures of outstanding RSUs. In addition to the activity noted above, the Company made a payment of $1.2 for the previously accrued dividends on RSUs that vested during the twelve months ended June 30, 2019 . Thus, total dividends settled in cash during the twelve months ended June 30, 2019 was $346.2 . Total accrued dividends on unvested RSUs and phantom units of $2.2 and $5.2 , $0.8 and $5.2 and $1.0 and $3.2 are included in Accrued expense and other current liabilities and Other noncurrent liabilities, respectively, in the Consolidated Balance Sheet as of June 30, 2019 , 2018 and 2017 , 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, 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 Other comprehensive income before reclassifications (35.5 ) 99.8 (213.1 ) (53.8 ) (202.6 ) Net amounts reclassified from AOCI/(L) (a) (9.5 ) — — (5.5 ) (15.0 ) Net current-period other comprehensive income (45.0 ) 99.8 (213.1 ) (59.3 ) (217.6 ) Ending balance at June 30, 2019 $ (13.3 ) $ 214.8 $ (257.4 ) $ (2.9 ) $ (58.8 ) (a) Amortization of actuarial gains (losses) of $7.0 and $5.2 , net of taxes of $1.5 and $1.9 , were reclassified out of AOCI/(L) and included in the computation of net period pension costs for the fiscal years ended June 30, 2019 and 2018 , respectively (see Note 18 — 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, 2019 , 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, 2019, 2018 and 2017 : 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, 2019 — $ — $ — $ — Fiscal Year Ended June 30, 2018 — $ — $ — $ — Fiscal Year Ended June 30, 2017 1.4 $ 36.3 $ 25.35 $ 27.40 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [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 and Series A-1 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, 2019 , up to 75.0 million shares of the Company's Class A Common Stock were authorized to be granted pursuant to these Plans, of which 55.2 million shares were available. The Company may satisfy the obligation of its stock-based compensation awards with new shares. 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 is shown in the table below: 2019 2018 2017 Equity plan expense $ 16.9 $ 31.6 $ 20.0 Liability plan (income) expense (2.1 ) (1.0 ) 4.6 Fringe expense 0.4 2.8 4.4 Total share-based compensation expense $ 15.2 $ 33.4 $ 29.0 The share-based compensation expense for fiscal 2019 , 2018 and 2017 of $15.2 , $33.4 and $29.0 , respectively, includes $33.5 , $33.4 , and $29.0 expense for the respective period offset by $(18.3) , nil and nil income for the respective periods primarily due to significant executive forfeitures of share-based compensation instruments and the impact of actual forfeitures on the change in estimated forfeiture rates during the period. As of June 30, 2019 , the total unrecognized share-based compensation expense related to unvested stock options, Series A and Series A-1 Preferred Stock and restricted stock units and other share awards is $50.5 , $9.1 and $80.9 , respectively. The unrecognized share-based compensation expense related to unvested stock options, Series A and A-1 Preferred Stock, restricted stock units and other share awards is expected to be recognized over a weighted-average period of 4.26 , 4.44 and 3.52 years, respectively. Nonqualified Stock Options During fiscal 2019 , 2018 and 2017 , the Company granted 19.4 million , 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. During fiscal 2019 , 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: 2019 2018 2017 Expected life 6.50 years 7.50 years 7.50 years Risk-free interest rate 2.56% 2.19% 1.60% Expected volatility 40.73% 36.03% 36.74% Expected dividend yield 4.64% 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 or on a graded vesting schedule where 60% of each award granted vests after three years , 20% of each award granted vests after four years and 20% of each award granted vests after five years . All grants expire 10 years from the date of the grant. The Company’s outstanding nonqualified stock options as of June 30, 2019 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, 2018 13.4 $ 16.75 Granted 19.4 10.89 Exercised (0.6 ) 9.14 Forfeited (4.3 ) 16.42 Outstanding at June 30, 2019 27.9 $ 12.89 Vested and expected to vest at June 30, 2019 18.9 $ 12.85 $ 10.4 8.67 Exercisable at June 30, 2019 1.1 $ 10.04 $ 3.50 1.63 Of the 27.9 million stock options outstanding, 14.5 million vest on the fifth anniversary of the grant date and 13.4 million vest on a graded vesting schedule where 60% of each award granted vests after three years , 20% of each award granted vests after four years and 20% of each award granted vests after five years . The grant prices of the outstanding options as of June 30, 2019 ranged from $8.25 to $20.42 . The grant prices for exercisable options ranged from $8.25 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 2019 , 2018 and 2017 is presented below: 2019 2018 2017 Weighted-average grant date fair value of stock options $ 2.87 $ 4.87 $ 6.34 Intrinsic value of options exercised 11.5 32.2 26.3 The Company’s non-vested nonqualified stock options as of June 30, 2019 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, 2018 11.7 $ 5.60 Granted 19.4 2.87 Forfeited (4.3 ) 5.03 Non-vested at June 30, 2019 26.8 $ 3.72 The share-based compensation expense recognized on the nonqualified stock options is $5.2 , $11.9 and $9.1 during fiscal 2019 , 2018 and 2017 , 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 1.4 million , 2.0 million and 0.8 million shares in fiscal 2019 , 2018 and 2017 , 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 expense recorded in connection with Purchased Shares for fiscal 2019 , 2018 and 2017 . 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 and Series A-1 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, 2019 , 2018 and 2017 and the Company recognized an (income) expense of $(4.4) , $0.1 and $4.4 in fiscal 2019 , 2018 and 2017 , respectively. See Note 22 — Equity for additional information. 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. In Fiscal 2019, the Company granted Series A-1 Preferred Stock with similar terms as previously granted Series A Preferred Stock and used the binomial lattice model to value the equity and cash bonus components of the combined instrument. As of June 30, 2019 , the fair value of the Company’s outstanding Series A and Series A-1 Preferred Stock that are liability accounted were estimated with the following weighted-average assumptions. 2019 2018 2017 Expected life, in years 4.97 years 4.52 years 5.86 years Expected volatility 42.53% 35.00% 30.00% Risk-free rate of return 2.45% 2.70% 1.99% Dividend yield on Class A Common Stock 6.19% 3.55% 2.67% Yield on cash N/A N/A 4.70% Expected life, in years - The expected life represents the period of time (years) that Series A or Series A-1 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 or Series A-1 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 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, 2019 , 2018 and 2017 , respectively. Series A and Series A-1 Preferred Shares generally expire seven years from the date of the grant. The Company’s outstanding Series A and Series A-1 Preferred Shares as of June 30, 2019 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, 2018 5.0 $ 23.62 Granted 7.9 9.46 Forfeited (3.5 ) $ 24.28 Outstanding at June 30, 2019 9.4 $ 11.47 Vested and expected to vest at June 30, 2019 8.9 $ 10.91 $ 22.20 6.25 The Company’s non-vested shares of Series A and Series A-1 Preferred Stock as of June 30, 2019 and activity during the fiscal year then ended are presented below: Shares Weighted Non-vested at July 1, 2018 4.0 $ 4.99 Granted 7.9 1.24 Forfeited (3.5 ) 5.16 Non-vested at June 30, 2019 8.4 $ 1.39 Restricted Share Units On October 1, 2018, the Company’s Board of Directors approved a modification of the vesting schedules for certain RSUs granted during fiscal 2017 , 2018 and 2019 to improve the Company’s ability to retain the affected employees, from five year cliff vesting to graded vesting where 60% of each award granted vests after three years , 20% of each award granted vests after four years and 20% of each award granted vests after five years . Five hundred sixty employees held outstanding awards subject to the October 1, 2018 modification. During the fiscal year ended June 30, 2019 , the incremental stock based compensation expense resulting from the modification was offset by income from actual and expected forfeitures in the modified awards. During fiscal 2019 , 6.9 million RSUs were granted under the Omnibus LTIP and 0.1 million RSUs were granted under the 2007 Stock Plan for Directors. 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. The Company’s outstanding RSUs as of June 30, 2019 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, 2018 7.5 Granted 7.0 Settled (0.6 ) Cancelled (3.4 ) Outstanding at June 30, 2019 10.5 Vested and expected to vest at June 30, 2019 8.6 $ 114.4 2.16 The share-based compensation expense recorded in connection with the RSUs was $14.4 , $21.4 and $15.4 during fiscal 2019 , 2018 and 2017 , respectively. The Company’s outstanding and non-vested RSUs as of June 30, 2019 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, 2018 7.2 $ 19.57 Granted 7.0 11.38 Vested (0.6 ) 17.49 Cancelled (3.4 ) 17.46 Outstanding and nonvested at June 30, 2019 10.2 $ 14.79 The total intrinsic value of RSUs vested and settled during fiscal 2019 , 2018 and 2017 is $11.1 , $12.5 and $3.5 , respectively. Phantom Units On July 21, 2015, the Board granted Mr. Becht, the Company’s former Chairman of the Board and interim 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 ATTRIBUTABLE TO COTY I
NET LOSS ATTRIBUTABLE TO COTY INC. PER COMMON SHARE | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
NET LOSS ATTRIBUTABLE TO COTY INC. PER COMMON SHARE | NET LOSS ATTRIBUTABLE TO COTY INC. PER COMMON SHARE Net loss attributable to Coty Inc. per common share (“basic EPS”) is computed by dividing net loss attributable to Coty Inc. by the weighted-average number of common shares outstanding during the period. Net 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 and Series A-1 Preferred Stock and RSUs as of June 30, 2019 and 2018 . The dilutive effect of these outstanding instruments is reflected in diluted EPS by application of the treasury stock method. Net loss attributable to Coty Inc. is adjusted through the application of the two-class method of income per share to reflect a portion of the periodic adjustment of the redemption value in excess of fair value of the redeemable noncontrolling interests. There is no excess of redemption value over fair value of the redeemable noncontrolling interests in fiscal 2019 , 2018 and 2017 . 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, 2019 2018 2017 Net loss attributable to Coty Inc. $ (3,784.2 ) $ (168.8 ) $ (422.2 ) Weighted-average common shares outstanding—Basic 751.2 749.7 642.8 Effect of dilutive stock options and Series A/A-1 Preferred Stock (a) — — — Effect of restricted stock and RSUs (b) — — — Weighted-average common shares outstanding—Diluted 751.2 749.7 642.8 Net loss attributable to Coty Inc. per common share: Basic $ (5.04 ) $ (0.23 ) $ (0.66 ) Diluted (5.04 ) (0.23 ) (0.66 ) (a) As of June 30, 2019 , 2018 and 2017 , outstanding stock options and Series A/A-1 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. (b) As of June 30, 2019 , 2018 and 2017 , RSUs were excluded in the computation of diluted loss per share due to the net loss incurred during the period. |
LEGAL CONTINGENCIES
LEGAL CONTINGENCIES | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL CONTINGENCIES | LEGAL CONTINGENCIES Legal Matters The Company is involved, from time to time, in various litigation, administrative and other legal proceedings, including regulatory actions, incidental or related to its business, including consumer class or collective actions, personal injury (including asbestos related claims), intellectual property, competition, compliance and advertising claims litigation and disputes, 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 or the trading price of the Company’s securities. However, management’s assessment of the Company’s current Legal Proceedings is ongoing, and could change in light of the discovery of additional facts with respect to Legal Proceedings not presently known to the Company, further legal analysis, 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 and liabilities or penalties. 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, business, prospects, financial condition, results of operations, cash flows or the trading price of its securities. Certain Litigation . Two purported stockholder class action complaints concerning the Cottage Tender Offer and the Schedule 14D-9 were filed by putative stockholders against the Company and the directors of the Company in the U.S. District Court for the District of Delaware, but have not yet been served. In both complaints, the plaintiffs allege that the Company’s Schedule 14D-9 omits certain information, including, among other things, certain financial data and certain analyses underlying the opinion of Centerview Partners LLC. Plaintiffs assert claims under the federal securities laws and seek, among other things, injunctive and/or monetary relief. A third consolidated purported stockholder class action and derivative complaint concerning the Cottage Tender Offer and the Schedule 14D-9 is pending against the directors of the Company, JAB Holding Company, S.à.r.l., JAB Cosmetics B.V., and Cottage Holdco B.V. in the Court of Chancery of the State of Delaware. The Company was named as a nominal defendant. The case, which was filed on May 6, 2019, was captioned Massachusetts Laborers’ Pension Fund, on behalf of itself and all similarly situated holders of Coty Inc., v. Peter Harf, Pierre Laubies, Sabine Chalmers, Joachim Faber, Olivier Goudet, Anna-Lena Kamenetzky, Erhard Schoewel, Robert Singer, Paul S. Michaels, JAB Holding Company, S.à.r.l., JAB Cosmetics B.V., and Cottage Holdco B.V., Case No. 2019-0336-CB (“ Massachusetts Laborers ”). On June 14, 2019, plaintiffs in the consolidated action filed a Verified Amended Class Action and Derivative Complaint (“Amended Complaint”), alleging that the directors and JAB Holding Company, S.à.r.l., JAB Cosmetics B.V., and Cottage Holdco B.V. breached their fiduciary duties to the Company’s stockholders and breached the Stockholders Agreement. The Amended Complaint sought, among other things, monetary relief. The defendants responded to the Amended Complaint on August 22, 2019. 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, 2019 amount to a total R$249.0 million (approximately $65.2 as of June 30, 2019 ). 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, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Quarterly Dividend On August 28, 2019 , 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 30, 2019 to holders of record of Common Stock on September 9, 2019. The shareholders will have an option to elect to receive their dividend 50% in cash and 50% in Common Stock. Turnaround Plan As described in Note 6 — Restructuring Costs , the Company announced the Turnaround Plan on July 1, 2019. As part of this initiative, the Company intends to incur cash costs of $600.0 , beginning in fiscal 2020 through fiscal 2023. The estimate includes cash costs associated with restructuring, primarily related to employee termination benefits, as well as other business realignment costs, including costs associated with the consolidation of management headquarters and systems redesign to support changes in the Company’s reporting structure. In addition, the Company will continue to incur cash costs of $160.0 related to restructuring and other business realignment costs connected to previously announced programs. Divestiture On August 27, 2019, the Company entered into a Contribution and Redemption Agreement to transfer all of its membership interest in Foundation, which holds the net assets of Younique, to an existing noncontrolling interest holder. The closing of the transaction is subject to certain regulatory clearances and is expected to occur by the end of calendar year 2019. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Years Ended June 30, 2019 , 2018 , and 2017 ($ 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: 2019 $ 81.8 $ — $ 11.6 $ (45.3 ) (a)(b) $ 48.1 2018 58.5 — 16.3 7.0 (a)(b) 81.8 2017 35.2 — 32.8 (9.5 ) (b) 58.5 Allowance for customer returns: 2019 $ 81.1 $ — 161.2 (186.0 ) $ 56.3 2018 67.3 10.1 169.8 (166.1 ) 81.1 2017 57.3 11.4 165.7 (167.1 ) 67.3 Deferred tax valuation allowances: 2019 $ 104.6 $ — $ 4.6 (c) $ (41.5 ) $ 67.7 2018 60.3 — 54.7 (c) (10.4 ) 104.6 2017 179.2 — 9.2 (c) (128.1 ) 60.3 (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 ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
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. |
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 the valuation of 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, 2019 and June 30, 2018 , the Company had restricted cash of $40.0 and $30.6 , respectively, included in Restricted cash in the Consolidated Balance Sheets. The restricted cash balance as of June 30, 2019 primarily provides collateral for certain bank guarantees on rent, customs and duty accounts and also consists of collections on factored receivables that remain unremitted to the factor as of June 30, 2019 . 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 customers’ 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 based upon the fair value of a reporting unit as compared to its carrying value. The Company makes certain judgments and assumptions in allocating assets and liabilities to determine carrying values for its reporting units. To determine fair value of the reporting unit, the Company uses a combination of the income and market approaches. Under the income approach, fair value is determined using a discounted cash flow method, projecting future cash flows of each reporting unit, 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. Under the market approach, information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units is utilized to create valuation multiples that are applied to the operating performance of the reporting units being tested, to value the reporting unit. The impairment loss recognized would be the difference between a reporting unit’s carrying value and fair value in an amount not to exceed the carrying value of the reporting unit’s goodwill. 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. This methodology assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. 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 higher of the redemption value or the carrying value (the acquisition date fair value adjusted for the noncontrolling interest’s share of net income (loss) and dividends) 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 and Cost of Sales | Revenue Recognition On July 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers and all related amendments (the “New Revenue Standard”) using the modified retrospective method applied to those contracts which were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under the New Revenue Standard, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 605, Revenue Recognition. See section below regarding Recently Adopted Accounting Pronouncements for more information on the impact of the adoption of this standard. For periods after July 1, 2018, revenue is recognized at a point in time and/or over time when control of the promised goods or services is transferred to the Company’s customers, which usually occurs upon delivery. Revenue is recognized in an amount that reflects the consideration we expect to be entitled to in exchange for transferring those goods or services. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The Company’s revenue contracts principally represent a performance obligation to sell its beauty products to trade customers and are satisfied when control of promised goods and services is transferred to the customers. Net revenues comprise gross revenues less customer discounts and allowances, actual and expected returns (estimated based on an analysis of historical experience and position in product life cycle) and various trade spending activities. Trade spending activities represent variable consideration promised to the customer and primarily relate to advertising, product promotions and demonstrations, some of which involve cooperative relationships with customers. The costs of trade spend activities are estimated considering all reasonably available information, including contract terms with the customer, the Company’s historical experience and its current expectations of the scope of the activities, and is reflected in the transaction price when sales are recorded. The Company’s payment terms vary by the type and location of its customers and the products offered. The term between invoicing and when payment is due is not significant. The Company’s sales return accrual reflects seasonal fluctuations, including those related to revenues for the holiday season in the first half of the fiscal year. This accrual is a subjective critical estimate that has a direct impact on reported net revenues, and is calculated based on history of actual returns, estimated future returns and information provided by retailers regarding their inventory levels. In addition, as necessary, specific accruals may be established for significant future known or anticipated events. The types of known or anticipated events that the Company has considered, and will continue to consider, include the financial condition of our customers, store closings by retailers, changes in the retail environment, and our decision to continue to support new and existing brands. Returns represented 2% , 2% and 2% of gross revenue after customer discounts and allowances in fiscal 2019 , 2018 and 2017 , respectively. Trade spending activities recorded as a reduction to gross revenue after customer discounts and allowances represented 8% , 8% , and 7% in fiscal 2019 , 2018 and 2017 , respectively. The Company accounts for certain customer store fixtures as other assets. Such fixtures are amortized using the straight-line method over the period of 3 to 5 years as a reduction of revenue. For the presentation of the Company’s revenues disaggregated by segment and product category see Note 4 — Segment Reporting . 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 and Series A-1 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 23 — 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 and Series A-1 Preferred Stock that can be converted into Class A Common Stock or settled in cash. Series A and Series A-1 Preferred Stock are 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 and Series A-1 Preferred Stock is determined using the binomial valuation model and the weighted-average assumptions discussed in Note 23 — 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. 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 $4,600.0 , the Company is permanently reinvested. 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 Financial Accounting Standards Board (“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. |
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, earnings before interest, taxes, depreciation and amortization (“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 2019 , 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. 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. 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 2020 . 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. 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 €3,699.3 million and €3,204.1 million as of June 30, 2019 and 2018 , 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, 2019 . 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. |
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 $3.5 , $3.9 and $1.5 in fiscal 2019 , 2018 and 2017 , 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 $7.6 , $8.5 and $(12.8) in fiscal 2019 , 2018 and 2017 , respectively, resulting from financing foreign exchange currency transactions are included in Interest expense, net in the Consolidated Statements of Operations. Net (losses) of nil , nil and $(1.7) in fiscal 2019 , 2018 and 2017 , 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 and Recently Issued and Not Yet Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements On July 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers , and all related amendments (the “New Revenue Standard”) using the modified retrospective method applied to those contracts which were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under the New Revenue Standard, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 605, Revenue Recognition. The Company recorded a net increase to its accumulated deficit as of July 1, 2018 (as presented below) due to the cumulative impact of adopting the New Revenue Standard, with the impact primarily related to the timing of accrual for certain customer incentives and markdowns at the time of sell-in and reclassification of certain marketing fixtures expense as a reduction of gross revenue. The cumulative effects of the revenue accounting changes on the Company's Consolidated Balance Sheet as of July 1, 2018 were as follows: June 30, 2018 Adjustments July 1, 2018 ASSETS Property and equipment, net $ 1,680.8 $ (6.2 ) $ 1,674.6 Deferred income taxes 107.4 0.6 108.0 Other noncurrent assets 299.5 6.9 306.4 LIABILITIES AND EQUITY Current liabilities: Accrued expenses and other current liabilities $ 1,844.4 $ 20.7 $ 1,865.1 Deferred income taxes 842.5 (1.2 ) 841.3 Accumulated deficit (626.2 ) (18.2 ) (644.4 ) The following table summarizes the impacts of adopting the New Revenue Standard on the Consolidated Statements of Operations for fiscal 2019: As reported (New Revenue Standard) Current period adjustments As adjusted (previous revenue standard) Net revenues $ 8,648.5 $ 1.8 $ 8,650.3 Selling, general and administrative expenses 4,563.9 3.4 4,567.3 Net (loss) income (3,769.6 ) (1.3 ) (3,770.9 ) Net (loss) income attributable to Coty Inc. (3,784.2 ) (0.9 ) (3,785.1 ) Net (loss) income attributable to Coty Inc. per common share: Basic $ (5.04 ) $ — $ (5.04 ) Diluted (5.04 ) — (5.04 ) In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company adopted the standard in the first quarter of fiscal 2019 using the modified retrospective transition method and recognized tax expense, as an adjustment to the July 1, 2018 accumulated deficit balance of $7.6 and $120.8 that were previously deferred in Prepaid expenses and other current assets and Other noncurrent assets, respectively. The recognition of this tax expense was partially offset by a previously unrecognized deferred tax asset of $15.8 , resulting in a cumulative-effect adjustment of $112.6 as an increase to the July 1, 2018 accumulated deficit balance. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which provides an updated model for determining if acquired assets and liabilities constitute a business. In a business combination, the acquired assets and liabilities are recognized at fair value and goodwill could be recognized. In an asset acquisition, the assets are allocated value based on relative fair value and no goodwill is recognized. The ASU narrows the definition of a business. The Company adopted the standard in the first quarter of fiscal 2019 on a prospective basis. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. The Company early adopted the ASU during the first quarter of fiscal 2019. As of July 1, 2018, the adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU No. 2017-07”), which requires employers to report the service cost component of net periodic benefit cost in the same line item or items as other compensation costs arising from services rendered by the underlying employees during the period. The other components of net periodic benefit cost are required to be reported separately and outside of operating income. In addition, only the service cost component would be eligible for capitalization in assets. The new guidance also allows a practical expedient that permits employers to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The Company adopted this standard during the first quarter of fiscal 2019 and retrospectively applied it to each prior period presented. In doing so, as a practical expedient, the Company used the prior comparative period Employee Benefit Plans footnote (see Note 18 ). The following table presents our results under our historical method of accounting and as adjusted to reflect our adoption of ASU No. 2017-07: Year Ended June 30, 2018 2017 As Previously Reported Effect of Adoption of ASU No. 2017-07 As Adjusted As Previously Reported Effect of Adoption of ASU No. 2017-07 As Adjusted Cost of sales $ 3,608.4 $ (0.6 ) $ 3,607.8 $ 3,028.5 $ (0.2 ) $ 3,028.3 Selling, general and administrative expenses 5,009.6 8.5 5,018.1 4,060.0 (19.3 ) 4,040.7 Restructuring costs 173.2 — 173.2 372.2 2.6 374.8 Operating income 161.2 (7.9 ) 153.3 (437.8 ) 16.9 (420.9 ) Other expense, net 38.0 (7.9 ) 30.1 1.6 16.9 18.5 Net income (127.8 ) — (127.8 ) (398.5 ) — (398.5 ) In May 2017, the FASB issued ASU No. 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting, which narrows the scope of changes in grant terms that would require modification accounting. The Company adopted this standard during the first quarter of fiscal 2019 on a prospective basis. The adoption of this standard did not have an effect on the Company’s Consolidated Financial Statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation — Stock Compensation (Topic 718): Scope of Nonemployee Share-Based Payment Activities, which expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The Company adopted this standard during the fourth quarter of fiscal 2019 on a modified retrospective basis. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40) , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted the standard in the first quarter of fiscal 2019 on a prospective basis. 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 2018-13 Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Fiscal 2021 with early adoption permitted. The FASB issued authoritative guidance that modifies the disclosure requirements by removing, modifying and adding disclosures related to fair value measurements. The Company is evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements and related disclosures. 2018-14 Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans Fiscal 2021 with early adoption permitted. The FASB issued authoritative guidance that modifies the disclosure requirements by removing, modifying and clarifying disclosures related to defined benefit plans. The Company is evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements and related disclosures. 2016-13 2018-19 Measurement of Credit Losses on Financial Instruments Fiscal 2021 with early adoption permitted. The FASB issued authoritative guidance, which requires that a financial asset (or a group of financial assets) measured at an amortized cost basis be presented at the net amount expected to be collected. This approach to estimating credit losses applies to most financial assets measured at amortized cost and certain other instruments, including but not limited to, trade and other receivables. The Company is evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements and related disclosures. 2016-02 2018-10 2018-11 2018-20 Leases Fiscal 2020. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize assets and liabilities for most leases. Under the new standard, a lessee should recognize in the Consolidated Balance Sheets a liability to make future lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from current U.S. GAAP standards. Additional ASUs have since been issued which provide amended and additional guidance for the implementation of ASU No. 2016-02. All related guidance has been codified into, and is now known as, ASC 842, Leases. The new leasing guidance will be effective for the Company in fiscal 2020 with early adoption permitted. The Company has provisionally determined the following: The Company will adopt the standard using the modified retrospective approach whereby it will recognize a transition adjustment at the effective date of ASC 842, July 1, 2019, rather than at the beginning of the earliest comparative period presented. Prior period information will not be restated. In addition, the Company will apply the package of practical expedients permitted under the transition guidance within the new standard, which allows a lessee to carryforward their population of existing leases, the classification of each lease, as well as the treatment of initial direct costs as of the period of adoption. The Company has identified the population of leases to which the guidance applies and has implemented changes in its systems, procedures and controls relating to how lease information is obtained, processed and analyzed. Based on its preliminary assessment, the Company expects that the adoption of this standard will result in a material increase in the lease-related assets and liabilities on its balance sheet, but expects minimal impact to its statement of operations and cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [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, 2019 and 2018 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 679.0 $ 671.2 Machinery and equipment 904.4 866.3 Marketing furniture and fixtures 578.0 514.2 Computer equipment and software 819.5 699.1 Construction in progress 134.2 230.8 Property and equipment, gross 3,115.1 2,981.6 Accumulated depreciation and amortization (1,514.5 ) (1,300.8 ) Property and equipment, net $ 1,600.6 $ 1,680.8 |
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 Other intangible assets, net as of June 30, 2019 and 2018 are presented below: June 30, June 30, Indefinite-lived other intangible assets $ 2,729.8 $ 3,186.2 Finite-lived other intangible assets, net 4,692.5 5,098.2 Total Other intangible assets, net $ 7,422.3 $ 8,284.4 Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2018 License agreements $ 3,362.7 $ (792.9 ) $ — $ 2,569.8 Customer relationships 1,960.5 (508.7 ) (5.5 ) 1,446.3 Trademarks 1,002.1 (185.5 ) (0.4 ) 816.2 Product formulations and technology 361.2 (95.3 ) — 265.9 Total $ 6,686.5 $ (1,582.4 ) $ (5.9 ) $ 5,098.2 June 30, 2019 License agreements (a) $ 3,245.3 $ (874.5 ) $ (19.6 ) $ 2,351.2 Customer relationships (a) 1,951.6 (642.0 ) (5.5 ) 1,304.1 Trademarks (b) 1,039.5 (229.4 ) (0.5 ) 809.6 Product formulations and technology 354.1 (126.5 ) — 227.6 Total $ 6,590.5 $ (1,872.4 ) $ (25.6 ) $ 4,692.5 (a) Includes measurement period adjustments during the twelve month period ended June 30, 2019 in connection with the Burberry Beauty Business acquisition (Refer to Note 3 — Business Combinations ). (b) Includes acquired trademark of $40.8 . |
Recently adopted, recently issued and not Yyet adopted accounting pronouncements | The following table presents our results under our historical method of accounting and as adjusted to reflect our adoption of ASU No. 2017-07: Year Ended June 30, 2018 2017 As Previously Reported Effect of Adoption of ASU No. 2017-07 As Adjusted As Previously Reported Effect of Adoption of ASU No. 2017-07 As Adjusted Cost of sales $ 3,608.4 $ (0.6 ) $ 3,607.8 $ 3,028.5 $ (0.2 ) $ 3,028.3 Selling, general and administrative expenses 5,009.6 8.5 5,018.1 4,060.0 (19.3 ) 4,040.7 Restructuring costs 173.2 — 173.2 372.2 2.6 374.8 Operating income 161.2 (7.9 ) 153.3 (437.8 ) 16.9 (420.9 ) Other expense, net 38.0 (7.9 ) 30.1 1.6 16.9 18.5 Net income (127.8 ) — (127.8 ) (398.5 ) — (398.5 ) Recently Issued and Not Yet Adopted Accounting Pronouncements Accounting Standard Update(s) Topic Effective Period Summary 2018-13 Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Fiscal 2021 with early adoption permitted. The FASB issued authoritative guidance that modifies the disclosure requirements by removing, modifying and adding disclosures related to fair value measurements. The Company is evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements and related disclosures. 2018-14 Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans Fiscal 2021 with early adoption permitted. The FASB issued authoritative guidance that modifies the disclosure requirements by removing, modifying and clarifying disclosures related to defined benefit plans. The Company is evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements and related disclosures. 2016-13 2018-19 Measurement of Credit Losses on Financial Instruments Fiscal 2021 with early adoption permitted. The FASB issued authoritative guidance, which requires that a financial asset (or a group of financial assets) measured at an amortized cost basis be presented at the net amount expected to be collected. This approach to estimating credit losses applies to most financial assets measured at amortized cost and certain other instruments, including but not limited to, trade and other receivables. The Company is evaluating the impact this guidance will have on the Company’s Consolidated Financial Statements and related disclosures. 2016-02 2018-10 2018-11 2018-20 Leases Fiscal 2020. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize assets and liabilities for most leases. Under the new standard, a lessee should recognize in the Consolidated Balance Sheets a liability to make future lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from current U.S. GAAP standards. Additional ASUs have since been issued which provide amended and additional guidance for the implementation of ASU No. 2016-02. All related guidance has been codified into, and is now known as, ASC 842, Leases. The new leasing guidance will be effective for the Company in fiscal 2020 with early adoption permitted. The Company has provisionally determined the following: The Company will adopt the standard using the modified retrospective approach whereby it will recognize a transition adjustment at the effective date of ASC 842, July 1, 2019, rather than at the beginning of the earliest comparative period presented. Prior period information will not be restated. In addition, the Company will apply the package of practical expedients permitted under the transition guidance within the new standard, which allows a lessee to carryforward their population of existing leases, the classification of each lease, as well as the treatment of initial direct costs as of the period of adoption. The Company has identified the population of leases to which the guidance applies and has implemented changes in its systems, procedures and controls relating to how lease information is obtained, processed and analyzed. Based on its preliminary assessment, the Company expects that the adoption of this standard will result in a material increase in the lease-related assets and liabilities on its balance sheet, but expects minimal impact to its statement of operations and cash flows. The cumulative effects of the revenue accounting changes on the Company's Consolidated Balance Sheet as of July 1, 2018 were as follows: June 30, 2018 Adjustments July 1, 2018 ASSETS Property and equipment, net $ 1,680.8 $ (6.2 ) $ 1,674.6 Deferred income taxes 107.4 0.6 108.0 Other noncurrent assets 299.5 6.9 306.4 LIABILITIES AND EQUITY Current liabilities: Accrued expenses and other current liabilities $ 1,844.4 $ 20.7 $ 1,865.1 Deferred income taxes 842.5 (1.2 ) 841.3 Accumulated deficit (626.2 ) (18.2 ) (644.4 ) The following table summarizes the impacts of adopting the New Revenue Standard on the Consolidated Statements of Operations for fiscal 2019: As reported (New Revenue Standard) Current period adjustments As adjusted (previous revenue standard) Net revenues $ 8,648.5 $ 1.8 $ 8,650.3 Selling, general and administrative expenses 4,563.9 3.4 4,567.3 Net (loss) income (3,769.6 ) (1.3 ) (3,770.9 ) Net (loss) income attributable to Coty Inc. (3,784.2 ) (0.9 ) (3,785.1 ) Net (loss) income attributable to Coty Inc. per common share: Basic $ (5.04 ) $ — $ (5.04 ) Diluted (5.04 ) — (5.04 ) |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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 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 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 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 $ 47.9 $ — $ 47.9 Property, plant and equipment 5.8 — 5.8 1 - 3 License and distribution rights 177.8 6.7 184.5 3 - 15 Goodwill 34.9 (9.4 ) 25.5 Indefinite Net other liabilities (10.1 ) 2.7 (7.4 ) Total purchase price $ 256.3 $ — $ 256.3 (a) As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018. (b) The Company recorded measurement period adjustments in the first quarter of fiscal 2019. The measurement period adjustments related to an increase in the value of the License and distribution rights due to changes in assumptions that were used at the date of acquisition for valuation purposes. The measurement period adjustment related to the decrease 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. All measurement period adjustments were offset against Goodwill. |
Schedule of unaudited pro forma information | The pro forma information for the fiscal year ended 2017 is as follows: Year Ended June 30, 2017 (a) Pro forma Net revenues $ 8,889.2 Pro forma Net (loss) income (101.2 ) Pro forma Net (loss) income attributable to Coty Inc. (142.7 ) Pro forma Net (loss) income attributable to Coty Inc. per common share Basic $ (0.19 ) Diluted $ (0.19 ) (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. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of reportable segments | Year Ended June 30, SEGMENT DATA 2019 2018 2017 Net revenues: Luxury $ 3,294.3 $ 3,210.5 $ 2,566.6 Consumer Beauty 3,539.3 4,268.1 3,688.2 Professional Beauty 1,814.9 1,919.4 1,395.5 Total $ 8,648.5 $ 9,398.0 $ 7,650.3 Depreciation and amortization: Luxury $ 271.0 $ 253.3 $ 203.5 Consumer Beauty 329.8 340.4 256.2 Professional Beauty 135.2 143.3 95.4 Corporate — — — Total $ 736.0 $ 737.0 $ 555.1 Operating (loss) income: Luxury $ 232.8 $ 248.7 $ 158.0 Consumer Beauty (3,598.7 ) 278.9 261.2 Professional Beauty 122.1 119.4 78.5 Corporate (227.7 ) (493.7 ) (918.6 ) Total $ (3,471.5 ) $ 153.3 $ (420.9 ) Reconciliation: Operating (loss) income $ (3,471.5 ) $ 153.3 $ (420.9 ) Interest expense, net 275.7 265.0 218.6 Loss on early extinguishment of debt — 10.7 — Other expense, net 30.9 30.1 18.5 Loss before income taxes $ (3,778.1 ) $ (152.5 ) $ (658.0 ) |
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 2019 2018 2017 Net revenues: North America $ 2,656.5 $ 2,966.0 $ 2,506.9 Europe 3,777.8 4,201.6 3,325.7 ALMEA 2,214.2 2,230.4 1,817.7 Total $ 8,648.5 $ 9,398.0 $ 7,650.3 Year Ended June 30, Long-lived assets: 2019 2018 2017 U.S. $ 5,613.2 $ 7,408.5 $ 7,662.4 Switzerland 5,444.4 8,000.2 6,899.8 Brazil 712.5 718.2 863.3 All other 2,326.6 2,441.1 3,187.3 Total $ 14,096.7 $ 18,568.0 $ 18,612.8 |
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 2019 2018 2017 Fragrances 39.5 % 36.8 % 36.1 % Color Cosmetics 26.0 % 28.2 % 29.6 % Skin & Body Care 9.5 % 10.1 % 12.4 % Hair Care 25.0 % 24.9 % 21.9 % Total 100.0 % 100.0 % 100.0 % |
RESTRUCTURING COSTS (Tables)
RESTRUCTURING COSTS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring costs | The following table presents aggregate restructuring charges for the program: Severance and Employee Benefits Third-Party Fixed Asset Write-offs Other Exit Costs (a) Total (a) Fiscal 2017 $ 333.9 $ 22.4 $ 4.6 $ 4.1 $ 365.0 Fiscal 2018 67.5 19.3 14.3 5.4 106.5 Fiscal 2019 (6.0 ) 4.5 27.8 2.2 28.5 Cumulative through June 30, 2019 $ 395.4 $ 46.2 $ 46.7 $ 11.7 $ 500.0 (a) The fiscal 2017 balance reflects the impact of the ASU 2017-07 adoption which resulted in the reclassification of $0.8 of pension settlement and curtailment credits incurred in connection with Global Integration Activities, from Restructuring costs to Other expense, net. Refer to Note 2 — Summary of Significant Accounting Policies for further information on the adoption of ASU 2017-07. Restructuring costs for the fiscal years ended June 30, 2019 , 2018 and 2017 are presented below: Year Ended June 30, 2019 2018 2017 Global Integration Activities $ 28.5 $ 106.5 $ 365.0 2018 Restructuring Actions 16.8 68.4 — Other Restructuring (1.1 ) (1.7 ) 9.8 Total $ 44.2 $ 173.2 $ 374.8 Severance and Employee Benefits Third-Party Contract Terminations Fixed Asset Write-offs Other Exit Costs Total Fiscal 2018 $ 63.5 $ 0.2 $ 1.3 $ 3.4 $ 68.4 Fiscal 2019 15.4 (0.1 ) — 1.5 16.8 Cumulative through June 30, 2019 $ 78.9 $ 0.1 $ 1.3 $ 4.9 $ 85.2 |
Restructuring charges | Severance and Third-Party Other (a) Total Balance—July 1, 2018 $ 48.0 $ 0.2 $ 3.3 $ 51.5 Restructuring charges 17.2 — 1.5 18.7 Payments (47.1 ) — (3.2 ) (50.3 ) Changes in estimates (1.8 ) (0.1 ) — (1.9 ) Effect of exchange rates (0.8 ) — (0.1 ) (0.9 ) Balance—June 30, 2019 $ 15.5 $ 0.1 $ 1.5 $ 17.1 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, 2018 $ 203.0 $ 17.0 $ — $ 3.1 $ 223.1 Restructuring charges 10.8 4.6 27.8 2.4 45.6 Payments (141.0 ) (9.6 ) — (3.7 ) (154.3 ) Change in estimates (16.8 ) (0.1 ) — (0.2 ) (17.1 ) Non-cash impact 0.9 — (27.8 ) — (26.9 ) Effect of exchange rates (3.2 ) (0.2 ) — — (3.4 ) Balance—June 30, 2019 $ 53.7 $ 11.7 $ — $ 1.6 $ 67.0 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories as of June 30, 2019 and 2018 are presented below: June 30, June 30, Raw materials $ 259.5 $ 278.6 Work-in-process 20.4 21.8 Finished goods 873.4 848.5 Total inventories $ 1,153.3 $ 1,148.9 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets as of June 30, 2019 and 2018 are presented below: June 30, June 30, Value added tax, sales and other non-income tax assets $ 209.3 $ 235.4 Expected income tax refunds, credits and prepaid income taxes 135.3 101.3 Prepaid marketing, copyright and agency fees 118.9 119.6 Non-trade receivables 22.8 29.9 Prepaid rent, leases and insurance 14.8 17.3 Interest rate swap assets — 17.1 Other 76.7 83.3 Total prepaid expenses and other current assets $ 577.8 $ 603.9 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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, 2019 and 2018 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 679.0 $ 671.2 Machinery and equipment 904.4 866.3 Marketing furniture and fixtures 578.0 514.2 Computer equipment and software 819.5 699.1 Construction in progress 134.2 230.8 Property and equipment, gross 3,115.1 2,981.6 Accumulated depreciation and amortization (1,514.5 ) (1,300.8 ) Property and equipment, net $ 1,600.6 $ 1,680.8 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Goodwill as of June 30, 2019 , 2018 and 2017 is presented below: Luxury Consumer Beauty Professional Beauty Total 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 68.2 — 2.6 70.8 Measurement period adjustments (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 Changes during the year ended June 30, 2019 Impairment charges — (3,391.1 ) — (3,391.1 ) Measurement period adjustments (a) (10.5 ) 0.6 0.5 (9.4 ) Foreign currency translation (30.7 ) (83.5 ) (18.6 ) (132.8 ) Gross balance at June 30, 2019 $ 3,325.4 $ 4,844.6 $ 935.7 $ 9,105.7 Accumulated impairments (403.7 ) (3,628.2 ) — (4,031.9 ) Net balance at June 30, 2019 $ 2,921.7 $ 1,216.4 $ 935.7 $ 5,073.8 (a) Includes measurement period adjustments during the twelve month period ended June 30, 2019 in connection with the Burberry Beauty Business acquisition (Refer to Note 3 — Business Combinations ). |
Schedule of indefinite-lived other intangible assets | Other intangible assets, net as of June 30, 2019 and 2018 are presented below: June 30, June 30, Indefinite-lived other intangible assets $ 2,729.8 $ 3,186.2 Finite-lived other intangible assets, net 4,692.5 5,098.2 Total Other intangible assets, net $ 7,422.3 $ 8,284.4 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, 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 — — (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 30, 2018 295.8 1,627.2 1,263.2 3,186.2 Changes during the year ended June 30, 2019 Impairment charges (109.6 ) (292.5 ) (27.0 ) (429.1 ) Foreign currency translation (8.8 ) (10.0 ) (8.5 ) (27.3 ) Gross balance at June 30, 2019 405.8 1,693.1 1,257.8 3,356.7 Accumulated impairments (228.4 ) (368.4 ) (30.1 ) (626.9 ) Net balance at June 3 0, 2019 $ 177.4 $ 1,324.7 $ 1,227.7 $ 2,729.8 |
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 Other intangible assets, net as of June 30, 2019 and 2018 are presented below: June 30, June 30, Indefinite-lived other intangible assets $ 2,729.8 $ 3,186.2 Finite-lived other intangible assets, net 4,692.5 5,098.2 Total Other intangible assets, net $ 7,422.3 $ 8,284.4 Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2018 License agreements $ 3,362.7 $ (792.9 ) $ — $ 2,569.8 Customer relationships 1,960.5 (508.7 ) (5.5 ) 1,446.3 Trademarks 1,002.1 (185.5 ) (0.4 ) 816.2 Product formulations and technology 361.2 (95.3 ) — 265.9 Total $ 6,686.5 $ (1,582.4 ) $ (5.9 ) $ 5,098.2 June 30, 2019 License agreements (a) $ 3,245.3 $ (874.5 ) $ (19.6 ) $ 2,351.2 Customer relationships (a) 1,951.6 (642.0 ) (5.5 ) 1,304.1 Trademarks (b) 1,039.5 (229.4 ) (0.5 ) 809.6 Product formulations and technology 354.1 (126.5 ) — 227.6 Total $ 6,590.5 $ (1,872.4 ) $ (25.6 ) $ 4,692.5 (a) Includes measurement period adjustments during the twelve month period ended June 30, 2019 in connection with the Burberry Beauty Business acquisition (Refer to Note 3 — Business Combinations ). (b) Includes acquired trademark of $40.8 . |
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 24.0 years Customer relationships 15.4 years Trademarks 21.1 years Product formulations and technology 9.8 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: 2020 $ 345.8 2021 340.3 2022 322.8 2023 314.4 2024 274.3 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities as of June 30, 2019 and 2018 are presented below: June 30, June 30, Advertising, marketing and licensing $ 404.1 $ 435.5 Compensation and other compensation related benefits 304.0 333.1 Customer returns, discounts, allowances and bonuses 262.0 328.2 Value added tax, sales and other non-income taxes 128.0 134.5 Restructuring costs 67.0 263.8 Mandatorily redeemable financial instrument liability (See Note 20) 51.8 46.6 Auditing, consulting, legal and litigation accruals 45.0 34.1 Interest 29.7 31.5 Interest rate swap liability 17.9 — Deferred income 13.8 25.5 Unfavorable contract liability 11.0 11.3 Tax indemnity liability — 21.1 Other 149.4 179.2 Total accrued expenses and other current liabilities $ 1,483.7 $ 1,844.4 |
OTHER NONCURRENT LIABILITIES (T
OTHER NONCURRENT LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other noncurrent liabilities | Other noncurrent liabilities as of June 30, 2019 and 2018 are presented below: June 30, June 30, Noncurrent income tax liabilities $ 179.9 $ 137.7 Unfavorable contract liabilities 90.5 104.1 Deferred rent 57.4 54.2 Restructuring costs 26.1 31.1 Interest rate swap liability 24.1 — Mandatorily redeemable financial instrument liability (See Note 20) 6.1 6.7 Burberry contingent consideration 2.3 8.3 Other 40.8 46.4 Total other noncurrent liabilities $ 427.2 $ 388.5 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | June 30, June 30, Short-term debt $ 4.2 $ 9.2 2018 Coty Credit Agreement 2018 Coty Revolving Credit Facility due April 2023 792.1 368.1 2018 Coty Term A Facility due April 2023 3,147.0 3,371.5 2018 Coty Term B Facility due April 2025 2,342.3 2,390.5 Senior Unsecured Notes 2026 Dollar Notes due April 2026 550.0 550.0 2023 Euro Notes due April 2023 625.0 640.9 2026 Euro Notes due April 2026 284.1 291.4 Other long-term debt and capital lease obligations 1.1 1.6 Total debt 7,745.8 7,623.2 Less: Short-term debt and current portion of long-term debt (193.8 ) (218.9 ) Total Long-term debt 7,552.0 7,404.3 Less: Unamortized debt issuance costs (71.3 ) (86.2 ) Less: Discount on Long-term debt (10.8 ) (12.7 ) Total Long-term debt, net $ 7,469.9 $ 7,305.4 |
Schedule of long term debt facilities | The Company’s long-term debt facilities consisted of the following as of June 30, 2019 and 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 (a) LIBOR (b) 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 (d) (e) (f) 1.75% N/A (c) Payable in full at maturity date 2018 Coty Term A Facility - USD Portion April 2023 $1,000.0 1.75% N/A (c) 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 1.75% N/A (c) 2018 Coty Term B Facility - USD Portion April 2025 $1,400.0 LIBOR (b) plus a margin of 2.25% per annum or a base rate plus a margin of 1.25% per annum (e) 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 (b) plus a margin of 2.50% per annum (e) 2.50% 0.25% 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 (c) N/A (c) 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 (c) N/A (c) 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 (c) N/A (c) (a) As of June 30, 2018, the 2018 Coty Revolving Credit Facility borrowing capacity was $3,250.0 . As a result of the June 27, 2019 credit agreement amendment (as described below), the borrowing capacity was reduced to $2,750.0 as of June 30, 2019. (b) As defined in the Interest section below. (c) N/A - Not Applicable. (d) As defined per the 2018 Coty Credit Agreement. (e) The selection of the applicable one, two, three, six or twelve month interest rate for the period is at the discretion of the Company. (f) 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 (d) . As of June 30, 2019 and 2018, the applicable rate on the unused commitment fee was 0.35% and 0.30% , respectively. |
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, as amended, 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, 2019 through December 31, 2021 5.25 to 1.00 March 31, 2022 5.00 to 1.00 June 30, 2022 4.75 to 1.00 September 30, 2022 4.50 to 1.00 December 31, 2022 4.25 to 1.00 March 31, 2023 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, as amended). 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, 2019 June 30, 2018 Carrying Fair Carrying Fair 2018 Coty Credit Agreement $ 6,281.4 $ 6,058.9 $ 6,130.1 $ 6,070.8 Senior Unsecured Notes 1,459.1 1,439.6 1,482.3 1,449.9 |
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, 2019 , are presented below: Fiscal Year Ending June 30, 2020 $ 189.3 2021 189.3 2022 189.3 2023 4,090.9 2024 23.6 Thereafter 3,058.1 Total $ 7,740.5 |
LEASE AND OTHER COMMITMENTS (Ta
LEASE AND OTHER COMMITMENTS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum rental commitments under non-cancellable operating leases at June 30, 2019 are included in the following table under Leases. Purchase obligations include commitments to purchase inventory and other services. Fiscal Year Ending June 30, Leases Purchase Obligations 2020 $ 122.2 $ 317.9 2021 111.2 89.1 2022 91.3 66.8 2023 76.7 33.8 2024 67.8 22.3 Thereafter 252.3 0.5 721.5 530.4 Less: sublease income (20.1 ) N/A Total minimum payments required $ 701.4 $ 530.4 |
Schedule of Future Minimum Payments for Purchase Obligations | Minimum rental commitments under non-cancellable operating leases at June 30, 2019 are included in the following table under Leases. Purchase obligations include commitments to purchase inventory and other services. Fiscal Year Ending June 30, Leases Purchase Obligations 2020 $ 122.2 $ 317.9 2021 111.2 89.1 2022 91.3 66.8 2023 76.7 33.8 2024 67.8 22.3 Thereafter 252.3 0.5 721.5 530.4 Less: sublease income (20.1 ) N/A Total minimum payments required $ 701.4 $ 530.4 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax | (Loss) income before income taxes in fiscal 2019 , 2018 and 2017 is presented below: Year Ended June 30, 2019 2018 2017 United States $ (1,994.3 ) $ (324.2 ) $ (524.8 ) Foreign (1,783.8 ) 171.7 (133.2 ) Total $ (3,778.1 ) $ (152.5 ) $ (658.0 ) |
Schedule of components of income tax expense (benefit) | The components of the Company’s total (benefit) provision for income taxes during fiscal 2019 , 2018 and 2017 are presented below: Year Ended June 30, 2019 2018 2017 (Benefit) provision for income taxes: Current: Federal $ 0.8 $ 0.2 $ 0.4 State and local 11.1 9.8 1.1 Foreign 155.3 67.0 129.0 Total 167.2 77.0 130.5 Deferred: Federal (116.6 ) 25.2 (256.9 ) State and local (49.9 ) (0.7 ) (24.2 ) Foreign (9.2 ) (126.2 ) (108.9 ) Total (175.7 ) (101.7 ) (390.0 ) Benefit for income taxes $ (8.5 ) $ (24.7 ) $ (259.5 ) |
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 2019 , 2018 and 2017 is presented below: Year Ended June 30, 2019 2018 2017 Income (loss) before income taxes $ (3,778.1 ) $ (152.5 ) $ (658.0 ) Benefit for income taxes at statutory rate $ (793.4 ) $ (42.8 ) $ (230.3 ) State and local taxes—net of federal benefit (30.7 ) 9.9 (15.0 ) Foreign tax differentials 58.8 (21.9 ) 53.3 Change in valuation allowances (6.7 ) 8.6 (108.2 ) Change in unrecognized tax benefit 43.4 (24.8 ) 25.6 Tax Act — 41.0 — Permanent differences—net 1.8 (8.5 ) 1.2 Amortization on intercompany sale — 5.4 5.7 Goodwill impairment 693.0 — — Other 25.3 8.4 8.2 (Benefit) provision for income taxes $ (8.5 ) $ (24.7 ) $ (259.5 ) Effective income tax rate 0.2 % 16.2 % 39.4 % |
Schedule of deferred tax assets and liabilities | Significant components of deferred income tax assets and liabilities as of June 30, 2019 and 2018 are presented below: June 30, June 30, Deferred income tax assets: Inventories $ 21.6 $ 9.0 Accruals and allowances 63.1 84.2 Sales returns 18.4 13.1 Share-based compensation 14.8 13.4 Employee benefits 133.8 115.7 Net operating loss carry forwards and tax credits 294.3 285.1 Interest expense limitation carry forward 52.3 — Other 37.1 48.3 Less: valuation allowances (67.7 ) (104.6 ) Net deferred income tax assets 567.7 464.2 Deferred income tax liabilities: Intangible assets 986.6 1,115.7 Property, plant and equipment 13.4 18.9 Unrealized gain 0.5 5.4 Licensing rights 23.7 21.5 Other 49.7 37.8 Deferred income tax liabilities 1,073.9 1,199.3 Net deferred income tax liabilities $ (506.2 ) $ (735.1 ) |
Expirations of tax loss carryforwards | The expirations of tax loss carry forwards, amounting to $1,272.7 as of June 30, 2019 , 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 2020 $ — $ — $ 68.1 $ 68.1 2021 — — 13.3 13.3 2022 — 1.2 18.5 19.7 2023 — 1.7 8.3 10.0 2024 and thereafter 149.8 835.4 176.4 1,161.6 Total $ 149.8 $ 838.3 $ 284.6 $ 1,272.7 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of UTBs is presented below: Year Ended June 30, 2019 2018 2017 UTBs—July 1 $ 303.6 $ 257.9 $ 228.9 Additions based on tax positions related to the current year 49.1 44.1 43.6 Additions for tax positions of prior years 8.3 97.4 0.4 Reductions for tax positions of prior years (9.6 ) (39.9 ) — Settlements (2.7 ) (42.3 ) (1.5 ) Lapses in statutes of limitations (9.0 ) (11.0 ) (13.2 ) Foreign currency translation (3.6 ) (2.6 ) (0.3 ) UTBs—June 30 $ 336.1 $ 303.6 $ 257.9 |
INTEREST EXPENSE, NET (Tables)
INTEREST EXPENSE, NET (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Interest Income (Expense), Net [Abstract] | |
Interest expense, net | Interest expense, net for the years ended June 30, 2019 , 2018 and 2017 is presented below: Year Ended June 30, 2019 2018 2017 Interest expense $ 302.5 $ 287.1 $ 219.6 Foreign exchange (gain) losses, net of derivative contracts (a) (7.6 ) (8.5 ) 3.4 Interest income (19.2 ) (13.6 ) (4.4 ) Total interest expense, net $ 275.7 $ 265.0 $ 218.6 (a) In the year ended June 30, 2018, the Company recorded gains of $1.4 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 included within total Interest expense, net for the fiscal year ended June 30, 2018 in the Company’s Consolidated Statements of Operations. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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 2019 2018 2019 2018 2019 2018 2019 2018 Change in benefit obligation Benefit obligation—July 1 $ 17.5 $ 18.8 $ 732.6 $ 708.8 $ 53.2 $ 63.8 $ 803.3 $ 791.4 Service cost — — 33.3 38.8 1.2 1.4 34.5 40.2 Interest cost 0.7 0.7 12.8 12.6 2.1 2.0 15.6 15.3 Plan participants’ contributions — — 7.0 7.1 0.2 0.2 7.2 7.3 Plan amendments — — (10.3 ) — — — (10.3 ) — Benefits paid (1.3 ) (1.3 ) (16.9 ) (53.1 ) (1.8 ) (1.6 ) (20.0 ) (56.0 ) New employees transfers in — — 16.2 23.5 — — 16.2 23.5 Premiums paid — — (2.5 ) (2.7 ) — — (2.5 ) (2.7 ) Pension curtailment — — (5.4 ) 0.3 — (10.4 ) (5.4 ) (10.1 ) Pension settlement — — (37.4 ) (1.0 ) — — (37.4 ) (1.0 ) Actuarial loss (gain) 0.8 (0.7 ) 69.9 (6.3 ) 4.1 (2.5 ) 74.8 (9.5 ) Effect of exchange rates — — (10.8 ) 4.6 (0.1 ) 0.3 (10.9 ) 4.9 Other — — 1.6 — (1.1 ) — 0.5 — Benefit obligation—June 30 $ 17.7 $ 17.5 $ 790.1 $ 732.6 $ 57.8 $ 53.2 $ 865.6 $ 803.3 Change in plan assets Fair value of plan assets—July 1 $ — $ — $ 261.8 $ 234.2 $ 0.4 $ 0.4 $ 262.2 $ 234.6 Actual return on plan assets — — 3.5 18.8 — — 3.5 18.8 Employer contributions 1.3 1.3 36.4 37.1 1.6 1.4 39.3 39.8 Plan participants’ contributions — — 7.0 7.1 0.2 0.2 7.2 7.3 Benefits paid (1.3 ) (1.3 ) (16.9 ) (52.7 ) (1.8 ) (1.6 ) (20.0 ) (55.6 ) New employees transfers in — — 16.2 23.5 — — 16.2 23.5 Premiums paid — — (2.5 ) (2.7 ) — — (2.5 ) (2.7 ) Plan settlements — — (37.4 ) (1.0 ) — — (37.4 ) (1.0 ) Effect of exchange rates — — (0.1 ) (2.5 ) — — (0.1 ) (2.5 ) Other — — 0.5 — — — 0.5 — Fair value of plan assets—June 30 — — 268.5 261.8 0.4 0.4 268.9 262.2 Funded status—June 30 $ (17.7 ) $ (17.5 ) $ (521.6 ) $ (470.8 ) $ (57.4 ) $ (52.8 ) $ (596.7 ) $ (541.1 ) |
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, 2019 and 2018 , are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2019 2018 2019 2018 2019 2018 2019 2018 Noncurrent assets $ — $ — $ 1.5 $ 1.1 $ — $ — $ 1.5 $ 1.1 Current liabilities (1.4 ) (1.3 ) (0.8 ) (5.5 ) (2.5 ) (2.1 ) (4.7 ) (8.9 ) Noncurrent liabilities (16.3 ) (16.2 ) (522.3 ) (466.4 ) (54.9 ) (50.7 ) (593.5 ) (533.3 ) Funded status (17.7 ) (17.5 ) (521.6 ) (470.8 ) (57.4 ) (52.8 ) (596.7 ) (541.1 ) AOC(L)/I 0.2 1.7 (20.3 ) 44.7 10.0 20.1 (10.1 ) 66.5 Net amount recognized $ (17.5 ) $ (15.8 ) $ (541.9 ) $ (426.1 ) $ (47.4 ) $ (32.7 ) $ (606.8 ) $ (474.6 ) |
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 2019 2018 2019 2018 2019 2018 2019 2018 Projected benefit obligation $ 17.7 $ 17.5 $ 767.5 $ 713.9 $ 17.7 $ 17.5 $ 775.9 $ 725.0 Accumulated benefit obligation 17.7 17.5 716.3 657.8 17.7 17.5 733.7 669.1 Fair value of plan assets — — 248.2 247.0 — — 254.9 254.2 |
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 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Service cost $ — $ — $ — $ 33.3 $ 38.8 $ 34.8 $ 1.2 $ 1.4 $ 1.9 $ 34.5 $ 40.2 $ 36.7 Interest cost 0.7 0.7 1.6 12.8 12.6 6.6 2.1 2.0 1.8 15.6 15.3 10.0 Expected return on plan assets — — (0.9 ) (8.2 ) (7.5 ) (6.3 ) — — — (8.2 ) (7.5 ) (7.2 ) 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 (gain) loss (0.7 ) (0.7 ) 2.3 0.3 1.2 4.2 (0.1 ) (0.1 ) 0.1 (0.5 ) 0.4 6.6 Settlements (gain) loss recognized — — 15.9 (0.8 ) — (0.5 ) — — — (0.8 ) — 15.4 Curtailment (gain) loss recognized — — — (5.4 ) 0.1 (2.2 ) — (10.4 ) — (5.4 ) (10.3 ) (2.2 ) Net periodic benefit cost $ — $ — $ 18.9 $ 32.2 $ 45.4 $ 36.8 $ (2.7 ) $ (13.0 ) $ (2.1 ) $ 29.5 $ 32.4 $ 53.6 |
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 2019 2018 2019 2018 2019 2018 2019 2018 Net actuarial (loss) gain $ 0.2 $ 1.7 $ (29.0 ) $ 46.7 $ (0.4 ) $ 3.8 $ (29.2 ) $ 52.2 Prior service credit (cost) — — 8.7 (2.0 ) 10.4 16.3 19.1 14.3 Total recognized in AOC(L)/I $ 0.2 $ 1.7 $ (20.3 ) $ 44.7 $ 10.0 $ 20.1 $ (10.1 ) $ 66.5 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 2019 2018 2019 2018 2019 2018 2019 2018 Net actuarial (loss) gain $ (0.8 ) $ 0.7 $ (74.6 ) $ 17.8 $ (4.1 ) $ 2.3 $ (79.5 ) $ 20.8 Amortization of prior service (credit) cost — — 0.2 0.2 (5.9 ) (5.9 ) (5.7 ) (5.7 ) Recognized net actuarial (gain) loss (0.7 ) (0.6 ) (0.5 ) 1.2 (0.1 ) (0.1 ) (1.3 ) 0.5 Prior service credit (cost) — — 10.3 — — — 10.3 — Effect of exchange rates — — (0.4 ) 0.3 — 0.1 (0.4 ) 0.4 Total recognized in OCI/(L) $ (1.5 ) $ 0.1 $ (65.0 ) $ 19.5 $ (10.1 ) $ (3.6 ) $ (76.6 ) $ 16.0 |
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 2020 are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International Prior service credit (cost) $ — $ 0.8 $ 5.9 $ 6.7 Net gain (loss) (0.7 ) 0.1 0.1 (0.5 ) Total $ (0.7 ) $ 0.9 $ 6.0 $ 6.2 |
Schedule of assumptions used | The weighted-average assumptions used to determine the Company’s projected benefit obligation above are presented below: Pension Plans Other Post-Employment Benefits U.S. International 2019 2018 2019 2018 2019 2018 Discount rates 3.2%-3.6% 4% 0.4%-8.4% 0.6%-8.0% 1.7%-3.5% 2.3%-4.2% Future compensation growth rates N/A N/A 1.0%-5.8% 1.5%-5.8% N/A N/A The weighted-average assumptions used to determine the Company’s net periodic benefit cost in fiscal 2019 , 2018 and 2017 are presented below: Pension Plans Other Post- U.S. International 2019 2018 2017 2019 2018 2017 2019 2018 2017 Discount rates 4% 3.6% 3.3%-3.8% 0.6%-8.0% 0.4%-7.5% 0.2%-7.8% 2.3%-4.2% 1.9%-7.6% 1.4%-8.0% Future compensation growth rates N/A N/A N/A 1.5%-5.7% 1.5%-6.0% 1.5%-5.8% N/A N/A N/A Expected long-term rates of return on plan assets N/A N/A N/A 2.0%-8.4% 1.8%-8.2% 1.6%-6.0% 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, 2019 2018 2017 Health care cost trend rate assumed for next year 7.1%-8.0% 7.4%-8.5% 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 2026 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 $ 6.6 $ (5.8 ) Effect on post-employment benefit obligation 0.4 (0.3 ) |
Schedule of allocation of plan assets | The target asset allocations for the Company’s pension plans as of June 30, 2019 and 2018 , by asset category are presented below: % of Plan Assets at Year Ended Target 2019 2018 Equity securities 40% 41% 41% Fixed income securities 50% 42% 42% Cash and other investments 10% 17% 17% 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, 2019 and 2018 are presented below: Level 1 Level 2 Level 3 Total 2019 2018 2019 2018 2019 2018 2019 2018 Equity securities $ 66.8 $ 63.0 $ — $ — $ — $ — $ 66.8 $ 63.0 Fixed income securities: Corporate securities 57.9 54.6 — — — — 57.9 54.6 Other: Cash and cash equivalents 1.0 0.9 — — — — 1.0 0.9 Insurance contracts and other — — — — 143.2 143.7 143.2 143.7 Total pension plan assets $ 125.7 $ 118.5 $ — $ — $ 143.2 $ 143.7 $ 268.9 $ 262.2 |
Schedule of effect of significant unobservable inputs, changes in plan assets | The reconciliations of Level 3 plan assets measured at fair value in fiscal 2019 and 2018 are presented below: June 30, June 30, Insurance contracts: Fair value—July 1 $ 143.7 $ 130.2 Plan assets from acquisitions — — Return on plan assets (0.2 ) 14.0 Purchases, sales and settlements, net (2.5 ) 3.9 Effect of exchange rates 2.2 (4.4 ) Fair value—June 30 $ 143.2 $ 143.7 |
Schedule of expected benefit payments | Pension Plans Other Post-Employment Benefits Total Fiscal Year Ending June 30, U.S. International 2020 $ 1.3 $ 36.9 $ 2.4 $ 40.6 2021 1.3 25.2 2.8 29.3 2022 1.3 25.1 3.1 29.5 2023 1.3 25.8 3.4 30.5 2024 1.2 25.8 3.5 30.5 2025 - 2027 5.8 152.2 18.9 176.9 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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, 2019 2018 2017 Foreign exchange forward contracts $ 0.9 $ (0.3 ) $ (0.8 ) Interest rate swap contracts (47.4 ) 27.0 40.8 Net investment hedges 99.8 138.7 (21.2 ) |
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, 2019 2018 2017 Foreign exchange forward contract: Net revenues $ — $ (0.8 ) $ 2.4 Cost of sales 0.2 (0.7 ) (2.2 ) Interest rate swap contracts: Interest income (expense), net 12.4 6.9 (9.3 ) |
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, 2019 2018 2017 Selling, general and administrative $ 0.1 $ (0.8 ) $ (0.1 ) Interest income (expense), net 0.1 17.5 (6.5 ) Other income (expense), net — 0.2 (1.1 ) |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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) The parties are 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) The parties are 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, 2019 | |
Equity [Abstract] | |
Schedule of Series A preferred stock | The following table summarizes the key terms of each outstanding issuance of Series A and Series A-1 Preferred Stock: Issuance Date Type Number of Shares Awarded at Grant Date (millions of shares) Number of Shares Outstanding (millions of shares) Hurdle Price per Share February 16, 2017 (a) Series A 0.5 0.3 $ 22.66 March 27, 2017 (a) (b) Series A 1.0 1.0 $ 22.39 November 16, 2017 (a) Series A 1.0 0.2 $ 19.85 February 4, 2019 (a) Series A-1 6.9 6.9 $ 8.75 June 14, 2019 (a) Series A-1 1.0 1.0 $ 14.48 (a) If the holder does not exchange the vested Series A or Series A-1 Preferred Stock by a specified expiration date, the Company must automatically exchange the Series A or Series A-1 Preferred Stock into cash or shares, at election of the Company. (b) This grant was sold to Lambertus J.H. Becht (“Mr. Becht”), the Company’s former 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, 2019 . An expense (income) of $(0.1) and $(1.7) and $3.8 was recorded during fiscal 2019 , 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 2019 , 2018 and 2017 : Declaration Date Dividend Type Dividend Per Share Holders of Record Date Dividend Value Dividend Payment Date Dividends Settled in Cash Dividends Settled in Stock (a) Dividends Payable (b) Fiscal 2019 August 21, 2018 Quarterly $ 0.125 August 31, 2018 $ 94.6 September 14, 2018 $ 93.8 N/A $ 0.8 November 7, 2018 Quarterly $ 0.125 November 30, 2018 $ 95.1 December 14, 2018 $ 93.9 N/A $ 1.2 February 8, 2019 Quarterly $ 0.125 February 28, 2019 $ 95.1 March 15, 2019 $ 93.9 N/A $ 1.2 May 8, 2019 Quarterly $ 0.125 June 6, 2019 $ 95.1 June 28, 2019 $ 63.4 $ 30.6 $ 1.1 Fiscal 2019 $ 0.500 $ 379.9 $ 345.0 $ 30.6 $ 4.3 Fiscal 2018 August 22, 2017 Quarterly $ 0.125 September 1, 2017 $ 94.4 September 14, 2017 $ 93.6 N/A $ 0.8 November 9, 2017 Quarterly $ 0.125 November 30, 2017 $ 94.6 December 14, 2017 $ 93.7 N/A $ 0.9 February 8, 2018 Quarterly $ 0.125 February 28, 2018 $ 94.6 March 15, 2018 $ 93.8 N/A $ 0.8 May 9, 2018 Quarterly $ 0.125 May 31, 2018 $ 94.6 June 14, 2018 $ 93.8 N/A $ 0.8 Fiscal 2018 $ 0.500 $ 378.2 $ 374.9 N/A $ 3.3 Fiscal 2017 August 1, 2016 Annual $ 0.275 August 11, 2016 $ 93.4 August 19, 2016 $ 92.4 N/A $ 1.0 December 9, 2016 Quarterly $ 0.125 December 19, 2016 $ 94.0 December 28, 2016 $ 93.4 N/A $ 0.6 February 9, 2017 Quarterly $ 0.125 February 28, 2017 $ 94.0 March 10, 2017 $ 93.4 N/A $ 0.6 May 10, 2017 Quarterly $ 0.125 May 31, 2017 $ 94.0 June 13, 2017 $ 93.4 N/A $ 0.6 Fiscal 2017 $ 0.650 $ 375.4 $ 372.6 N/A $ 2.8 (a) The June 28, 2019 stock dividend payment of $30.6 resulted in the issuance of 2.4 million shares of Class A Common Stock. (b) 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, 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 Other comprehensive income before reclassifications (35.5 ) 99.8 (213.1 ) (53.8 ) (202.6 ) Net amounts reclassified from AOCI/(L) (a) (9.5 ) — — (5.5 ) (15.0 ) Net current-period other comprehensive income (45.0 ) 99.8 (213.1 ) (59.3 ) (217.6 ) Ending balance at June 30, 2019 $ (13.3 ) $ 214.8 $ (257.4 ) $ (2.9 ) $ (58.8 ) (a) Amortization of actuarial gains (losses) of $7.0 and $5.2 , net of taxes of $1.5 and $1.9 , were reclassified out of AOCI/(L) and included in the computation of net period pension costs for the fiscal years ended June 30, 2019 and 2018 , respectively (see Note 18 — Employee Benefit Plans ). |
Schedule of share repurchase activities | The following table summarizes the share repurchase activities during the years ended June 30, 2019, 2018 and 2017 : 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, 2019 — $ — $ — $ — Fiscal Year Ended June 30, 2018 — $ — $ — $ — Fiscal Year Ended June 30, 2017 1.4 $ 36.3 $ 25.35 $ 27.40 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation expense | Total share-based compensation is shown in the table below: 2019 2018 2017 Equity plan expense $ 16.9 $ 31.6 $ 20.0 Liability plan (income) expense (2.1 ) (1.0 ) 4.6 Fringe expense 0.4 2.8 4.4 Total share-based compensation expense $ 15.2 $ 33.4 $ 29.0 |
Fair value valuation assumptions | During fiscal 2019 , 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: 2019 2018 2017 Expected life 6.50 years 7.50 years 7.50 years Risk-free interest rate 2.56% 2.19% 1.60% Expected volatility 40.73% 36.03% 36.74% Expected dividend yield 4.64% 2.98% 1.62% June 30, 2019 , the fair value of the Company’s outstanding Series A and Series A-1 Preferred Stock that are liability accounted were estimated with the following weighted-average assumptions. 2019 2018 2017 Expected life, in years 4.97 years 4.52 years 5.86 years Expected volatility 42.53% 35.00% 30.00% Risk-free rate of return 2.45% 2.70% 1.99% Dividend yield on Class A Common Stock 6.19% 3.55% 2.67% Yield on cash N/A N/A 4.70% |
Outstanding nonqualified stock option activity | The Company’s outstanding nonqualified stock options as of June 30, 2019 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, 2018 13.4 $ 16.75 Granted 19.4 10.89 Exercised (0.6 ) 9.14 Forfeited (4.3 ) 16.42 Outstanding at June 30, 2019 27.9 $ 12.89 Vested and expected to vest at June 30, 2019 18.9 $ 12.85 $ 10.4 8.67 Exercisable at June 30, 2019 1.1 $ 10.04 $ 3.50 1.63 |
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 2019 , 2018 and 2017 is presented below: 2019 2018 2017 Weighted-average grant date fair value of stock options $ 2.87 $ 4.87 $ 6.34 Intrinsic value of options exercised 11.5 32.2 26.3 |
Schedule of non-vested nonqualified share activity | The Company’s non-vested shares of Series A and Series A-1 Preferred Stock as of June 30, 2019 and activity during the fiscal year then ended are presented below: Shares Weighted Non-vested at July 1, 2018 4.0 $ 4.99 Granted 7.9 1.24 Forfeited (3.5 ) 5.16 Non-vested at June 30, 2019 8.4 $ 1.39 The Company’s non-vested nonqualified stock options as of June 30, 2019 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, 2018 11.7 $ 5.60 Granted 19.4 2.87 Forfeited (4.3 ) 5.03 Non-vested at June 30, 2019 26.8 $ 3.72 |
Scheduled of outstanding Series A Preferred shares | The Company’s outstanding Series A and Series A-1 Preferred Shares as of June 30, 2019 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, 2018 5.0 $ 23.62 Granted 7.9 9.46 Forfeited (3.5 ) $ 24.28 Outstanding at June 30, 2019 9.4 $ 11.47 Vested and expected to vest at June 30, 2019 8.9 $ 10.91 $ 22.20 6.25 |
Outstanding RSU activity | The Company’s outstanding RSUs as of June 30, 2019 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, 2018 7.5 Granted 7.0 Settled (0.6 ) Cancelled (3.4 ) Outstanding at June 30, 2019 10.5 Vested and expected to vest at June 30, 2019 8.6 $ 114.4 2.16 |
Outstanding and non-vested RSU activity | The Company’s outstanding and non-vested RSUs as of June 30, 2019 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, 2018 7.2 $ 19.57 Granted 7.0 11.38 Vested (0.6 ) 17.49 Cancelled (3.4 ) 17.46 Outstanding and nonvested at June 30, 2019 10.2 $ 14.79 |
NET LOSS ATTRIBUTABLE TO COTY_2
NET LOSS ATTRIBUTABLE TO COTY INC. PER COMMON SHARE (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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, 2019 2018 2017 Net loss attributable to Coty Inc. $ (3,784.2 ) $ (168.8 ) $ (422.2 ) Weighted-average common shares outstanding—Basic 751.2 749.7 642.8 Effect of dilutive stock options and Series A/A-1 Preferred Stock (a) — — — Effect of restricted stock and RSUs (b) — — — Weighted-average common shares outstanding—Diluted 751.2 749.7 642.8 Net loss attributable to Coty Inc. per common share: Basic $ (5.04 ) $ (0.23 ) $ (0.66 ) Diluted (5.04 ) (0.23 ) (0.66 ) (a) As of June 30, 2019 , 2018 and 2017 , outstanding stock options and Series A/A-1 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. (b) As of June 30, 2019 , 2018 and 2017 , RSUs were excluded in the computation of diluted loss per share due to the net loss incurred during the period. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 12 Months Ended | |||||
Jun. 30, 2019USD ($)unit | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Significant Accounting Policies [Line Items] | ||||||
Restricted cash | $ 40,000,000 | $ 40,000,000 | $ 40,000,000 | $ 40,000,000 | $ 30,600,000 | |
Number of reporting units | 3 | 3 | ||||
Sales returns, percentage | 2.00% | 2.00% | 2.00% | |||
Trade spending activities, percentage | 8.00% | 8.00% | 7.00% | |||
Advertising expense | 1,899,500,000 | $ 2,206,300,000 | $ 1,883,300,000 | |||
Depreciation and amortization | 382,500,000 | 384,200,000 | 280,000,000 | |||
Research and development expense | 162,800,000 | 174,600,000 | 139,200,000 | |||
Foreign earnings repatriated | 4,600,000,000 | |||||
Operating Income (Loss) | ||||||
Significant Accounting Policies [Line Items] | ||||||
Net losses (gains) from foreign currency exchange transactions | 3,500,000 | 3,900,000 | 1,500,000 | |||
Interest Expense, Net and Other Expense (Income), Net | ||||||
Significant Accounting Policies [Line Items] | ||||||
Net losses (gains) from foreign currency exchange transactions | (7,600,000) | (8,500,000) | 12,800,000 | |||
Other Expense, Net | ||||||
Significant Accounting Policies [Line Items] | ||||||
Net losses (gains) from foreign currency exchange transactions | 0 | 0 | 1,700,000 | |||
Marketing furniture and fixtures | ||||||
Significant Accounting Policies [Line Items] | ||||||
Depreciation and amortization | $ 127,600,000 | $ 120,900,000 | $ 107,400,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property Plant and Equipment (Details) | 12 Months Ended |
Jun. 30, 2019 | |
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 ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Finite Lived Intangible Assets (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 20 years 4 months 24 days |
License agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired finite-lived intangible assets, useful life | 24 years |
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 4 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 | 21 years 1 month 6 days |
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 | 9 years 9 months 18 days |
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 ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 01, 2018 | Jun. 30, 2016 | |
ASSETS | |||||
Property and equipment, net | $ 1,600.6 | $ 1,680.8 | $ 1,674.6 | ||
Deferred income taxes | 146.3 | 107.4 | 108 | ||
Other noncurrent assets | 149.7 | 299.5 | 306.4 | ||
Current liabilities: | |||||
Accrued expenses and other current liabilities | 1,483.7 | 1,844.4 | 1,865.1 | ||
Deferred income taxes | 652.5 | 842.5 | 841.3 | ||
Accumulated deficit | (4,541.2) | (626.2) | (644.4) | ||
Net revenues | 8,648.5 | 9,398 | $ 7,650.3 | ||
Selling, general and administrative expenses | 4,563.9 | 5,018.1 | 4,040.7 | ||
Net loss | (3,769.6) | (127.8) | (398.5) | ||
Net loss attributable to Coty Inc. | $ (3,784.2) | $ (168.8) | $ (422.2) | ||
Net loss attributable to Coty Inc. per common share: | |||||
Basic (dollars per shares) | $ (5.04) | $ (0.23) | $ (0.66) | ||
Diluted (dollars per shares) | $ (5.04) | $ (0.23) | $ (0.66) | ||
Decrease in prepaid expenses and other current assets | $ (577.8) | $ (603.9) | |||
Unrecognized tax benefits | 336.1 | 303.6 | $ 257.9 | $ 228.9 | |
Cost of sales | 3,306.5 | 3,607.8 | 3,028.3 | ||
Restructuring costs | 44.2 | 173.2 | 374.8 | ||
Operating income | (3,471.5) | 153.3 | (420.9) | ||
Other expense, net | 30.9 | 30.1 | 18.5 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||
ASSETS | |||||
Property and equipment, net | 1,680.8 | ||||
Deferred income taxes | 107.4 | ||||
Other noncurrent assets | 299.5 | ||||
Current liabilities: | |||||
Accrued expenses and other current liabilities | 1,844.4 | ||||
Deferred income taxes | 842.5 | ||||
Accumulated deficit | (626.2) | ||||
Net revenues | 8,650.3 | ||||
Selling, general and administrative expenses | 4,567.3 | ||||
Net loss | (3,770.9) | ||||
Net loss attributable to Coty Inc. | $ (3,785.1) | ||||
Net loss attributable to Coty Inc. per common share: | |||||
Basic (dollars per shares) | $ (5.04) | ||||
Diluted (dollars per shares) | $ (5.04) | ||||
Previously Reported | |||||
Current liabilities: | |||||
Selling, general and administrative expenses | 5,009.6 | 4,060 | |||
Net loss | (127.8) | (398.5) | |||
Net loss attributable to Coty Inc. per common share: | |||||
Cost of sales | 3,608.4 | 3,028.5 | |||
Restructuring costs | 173.2 | 372.2 | |||
Operating income | 161.2 | (437.8) | |||
Other expense, net | 38 | 1.6 | |||
Restatement Adjustment | |||||
Current liabilities: | |||||
Selling, general and administrative expenses | 5,018.1 | 4,040.7 | |||
Net loss | (127.8) | (398.5) | |||
Net loss attributable to Coty Inc. per common share: | |||||
Cost of sales | 3,607.8 | 3,028.3 | |||
Restructuring costs | 173.2 | 374.8 | |||
Operating income | 153.3 | (420.9) | |||
Other expense, net | 30.1 | 18.5 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||
ASSETS | |||||
Property and equipment, net | (6.2) | ||||
Deferred income taxes | 0.6 | ||||
Other noncurrent assets | 6.9 | ||||
Current liabilities: | |||||
Accrued expenses and other current liabilities | 20.7 | ||||
Deferred income taxes | (1.2) | ||||
Accumulated deficit | (18.2) | ||||
Net revenues | $ 1.8 | ||||
Selling, general and administrative expenses | 3.4 | ||||
Net loss | (1.3) | ||||
Net loss attributable to Coty Inc. | $ (0.9) | ||||
Net loss attributable to Coty Inc. per common share: | |||||
Basic (dollars per shares) | $ 0 | ||||
Diluted (dollars per shares) | $ 0 | ||||
Accounting Standards Update 2016-06 | |||||
ASSETS | |||||
Other noncurrent assets | (120.8) | ||||
Current liabilities: | |||||
Accumulated deficit | (112.6) | ||||
Net loss attributable to Coty Inc. per common share: | |||||
Decrease in prepaid expenses and other current assets | 7.6 | ||||
Unrecognized tax benefits | $ 15.8 | ||||
Accounting Standards Update 2017-07 | Restatement Adjustment | |||||
Current liabilities: | |||||
Selling, general and administrative expenses | 8.5 | (19.3) | |||
Net loss | 0 | 0 | |||
Net loss attributable to Coty Inc. per common share: | |||||
Cost of sales | (0.6) | (0.2) | |||
Restructuring costs | 0 | 2.6 | |||
Operating income | (7.9) | 16.9 | |||
Other expense, net | $ (7.9) | $ 16.9 |
BUSINESS COMBINATIONS - P&G Bea
BUSINESS COMBINATIONS - P&G Beauty Business Acquisition (Details) - USD ($) shares in Millions, $ in Millions | Oct. 01, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 5,073.8 | $ 8,607.1 | $ 8,555.5 | ||
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, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Estimated fair value as previously reported | ||||
Goodwill | $ 5,073.8 | $ 8,607.1 | $ 8,555.5 | |
Unfavorable contract liabilities | (90.5) | (104.1) | ||
Measurement period adjustments | ||||
Goodwill | $ (9.4) | $ 26.5 | ||
Acquired finite-lived intangible assets, useful life | 20 years 4 months 24 days | |||
Trademarks | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 21 years 1 month 6 days | |||
Trademarks | Minimum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 2 years | |||
Trademarks | Maximum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 30 years | |||
Customer relationships | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 15 years 4 months 24 days | |||
Customer relationships | Minimum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 2 years | |||
Customer relationships | Maximum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 28 years | |||
License agreements | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 24 years | |||
License agreements | Minimum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 5 years | |||
License agreements | Maximum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 34 years | |||
Product formulations | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 9 years 9 months 18 days | |||
Product formulations | Minimum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 3 years | |||
Product formulations | Maximum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 29 years | |||
Galleria | ||||
Estimated fair value as previously reported | ||||
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 | ||||
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 | ||||
Property, plant and equipment, estimated useful life | 3 years | |||
Galleria | Maximum | ||||
Measurement period adjustments | ||||
Property, plant and equipment, estimated useful life | 40 years | |||
Galleria | Trademarks | ||||
Estimated fair value as previously reported | ||||
Finite-lived intangible assets | 747.7 | 747.7 | ||
Measurement period adjustments | ||||
Intangibles | 0 | |||
Galleria | Trademarks | Minimum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 10 years | |||
Galleria | Trademarks | Maximum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 30 years | |||
Galleria | Customer relationships | ||||
Estimated fair value as previously reported | ||||
Finite-lived intangible assets | 1,093 | 1,074.2 | ||
Measurement period adjustments | ||||
Intangibles | 18.8 | |||
Galleria | Customer relationships | Minimum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 2 years | |||
Galleria | Customer relationships | Maximum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 26 years | |||
Galleria | License agreements | ||||
Estimated fair value as previously reported | ||||
Finite-lived intangible assets | 2,311 | 2,299 | ||
Measurement period adjustments | ||||
Intangibles | 12 | |||
Galleria | License agreements | Minimum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 4 years | |||
Galleria | License agreements | Maximum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 30 years | |||
Galleria | Product formulations | ||||
Estimated fair value as previously reported | ||||
Finite-lived intangible assets | 173.8 | 183.8 | ||
Measurement period adjustments | ||||
Intangibles | (10) | |||
Galleria | Product formulations | Minimum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 5 years | |||
Galleria | Product formulations | Maximum | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 28 years | |||
Galleria | Customer relationships, license agreements and product formulations | ||||
Measurement period adjustments | ||||
Intangibles | 20.8 | |||
Galleria | Trademarks | ||||
Estimated fair value as previously reported | ||||
Indefinite-lived intangibles assets | 1,575 | $ 1,575 | ||
Measurement period adjustments | ||||
Intangibles | $ 0 |
BUSINESS COMBINATIONS - ghd Acq
BUSINESS COMBINATIONS - ghd Acquisition (Details) £ in Millions | Nov. 21, 2016USD ($) | Nov. 21, 2016GBP (£) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 5,073,800,000 | $ 8,607,100,000 | $ 8,555,500,000 | |||
ghd | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of shares acquired | 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, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Estimated fair value as previously reported | ||||
Goodwill | $ 5,073.8 | $ 8,607.1 | $ 8,555.5 | |
Measurement period adjustments | ||||
Goodwill | $ (9.4) | $ 26.5 | ||
Acquired finite-lived intangible assets, useful life | 20 years 4 months 24 days | |||
Customer relationships | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 15 years 4 months 24 days | |||
ghd | ||||
Estimated fair value as previously reported | ||||
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 | ||||
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 | ||||
Finite-lived intangible assets | 34.3 | 36.6 | ||
Measurement period adjustments | ||||
Intangibles | (2.3) | |||
ghd | Technology | ||||
Estimated fair value as previously reported | ||||
Finite-lived intangible assets | 129.4 | 146.6 | ||
Measurement period adjustments | ||||
Intangibles | (17.2) | |||
ghd | Other Intangible Assets | ||||
Estimated fair value as previously reported | ||||
Indefinite-lived intangibles assets | 149 | $ 163.8 | ||
Measurement period adjustments | ||||
Intangibles | $ (14.8) | |||
Minimum | Customer relationships | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 2 years | |||
Minimum | ghd | ||||
Measurement period adjustments | ||||
Property, plant and equipment, estimated useful life | 3 years | |||
Minimum | ghd | Customer relationships | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 11 years | |||
Minimum | ghd | Technology | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 11 years | |||
Maximum | Customer relationships | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 28 years | |||
Maximum | ghd | ||||
Measurement period adjustments | ||||
Property, plant and equipment, estimated useful life | 10 years | |||
Maximum | ghd | Customer relationships | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 25 years | |||
Maximum | ghd | Technology | ||||
Measurement period adjustments | ||||
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, 2019 | Mar. 31, 2018 | Jun. 30, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 8,607.1 | $ 5,073.8 | $ 8,555.5 | ||
Foundation, LLC | |||||
Business Acquisition [Line Items] | |||||
Percentage of shares acquired | 60.00% | 59.30% | |||
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] | |||||
Percentage of shares acquired | 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 - Youni_2
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, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Estimated fair value as previously reported | ||||
Goodwill | $ 5,073.8 | $ 8,607.1 | $ 8,555.5 | |
Measurement period adjustments | ||||
Goodwill | $ (9.4) | $ 26.5 | ||
Acquired finite-lived intangible assets, useful life | 20 years 4 months 24 days | |||
Younique, LLC | ||||
Estimated fair value as previously reported | ||||
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 | ||||
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 | ||||
Acquired finite-lived intangible assets, useful life | 21 years 1 month 6 days | |||
Trademarks | Younique, LLC | ||||
Estimated fair value as previously reported | ||||
Finite-lived intangible assets | 123 | 123 | ||
Measurement period adjustments | ||||
Intangibles | 0 | |||
Acquired finite-lived intangible assets, useful life | 20 years | |||
Product formulations and technology | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 9 years 9 months 18 days | |||
Product formulations and technology | Younique, LLC | ||||
Estimated fair value as previously reported | ||||
Finite-lived intangible assets | 0.6 | 0.6 | ||
Measurement period adjustments | ||||
Intangibles | 0 | |||
Acquired finite-lived intangible assets, useful life | 5 years | |||
Customer relationships | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 15 years 4 months 24 days | |||
Customer relationships | Younique, LLC | ||||
Estimated fair value as previously reported | ||||
Finite-lived intangible assets | 197 | $ 197 | ||
Measurement period adjustments | ||||
Intangibles | $ 0 | |||
Minimum | Younique, LLC | ||||
Measurement period adjustments | ||||
Property, plant and equipment, estimated useful life | 3 years | |||
Minimum | Trademarks | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 2 years | |||
Minimum | Product formulations and technology | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 3 years | |||
Minimum | Customer relationships | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 2 years | |||
Minimum | Customer relationships | Younique, LLC | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 7 years | |||
Maximum | Younique, LLC | ||||
Measurement period adjustments | ||||
Property, plant and equipment, estimated useful life | 8 years | |||
Maximum | Trademarks | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 30 years | |||
Maximum | Product formulations and technology | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 29 years | |||
Maximum | Customer relationships | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 28 years | |||
Maximum | Customer relationships | Younique, LLC | ||||
Measurement period adjustments | ||||
Acquired finite-lived intangible assets, useful life | 10 years |
BUSINESS COMBINATIONS - Burberr
BUSINESS COMBINATIONS - Burberry Business Acquisition (Details) $ in Millions | Oct. 02, 2017USD ($) | Oct. 02, 2017GBP (£) | Jun. 30, 2018GBP (£) | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Oct. 02, 2017GBP (£) | Jun. 30, 2017USD ($) | Oct. 01, 2016USD ($) |
Business Acquisition [Line Items] | |||||||||
Business combination, contingent consideration, liability | $ 2.3 | $ 8.3 | |||||||
Goodwill | $ 5,073.8 | 8,607.1 | $ 8,555.5 | ||||||
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 | |||||||
Business combination, contingent consideration arrangements, range of outcomes, value, low | £ | 0 | ||||||||
Business combination, contingent consideration arrangements, range of outcomes, value, high | £ | £ 16,700,000 | ||||||||
Contingent consideration payments | £ | £ 4,800,000 | ||||||||
Goodwill | $ 25.5 | $ 34.9 | |||||||
Luxury | Burberry Beauty Business | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 12.9 | ||||||||
Consumer Beauty | Burberry Beauty Business | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | 6.8 | ||||||||
Professional Beauty | Burberry Beauty Business | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 5.8 | ||||||||
Measurement Input, Expected Term | Burberry Beauty Business | |||||||||
Business Acquisition [Line Items] | |||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 4 | 4 |
BUSINESS COMBINATIONS - Burbe_2
BUSINESS COMBINATIONS - Burberry Business Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Estimated fair value as previously reported | ||||
Goodwill | $ 5,073.8 | $ 8,607.1 | $ 8,555.5 | |
Measurement period adjustments | ||||
Goodwill | $ (9.4) | 26.5 | ||
Burberry Beauty Business | ||||
Estimated fair value as previously reported | ||||
Inventories | $ 47.9 | 47.9 | ||
Property, plant and equipment | 5.8 | 5.8 | ||
License and distribution rights | 184.5 | 177.8 | ||
Goodwill | 25.5 | 34.9 | ||
Net other liabilities | (7.4) | (10.1) | ||
Total equity value | 256.3 | $ 256.3 | ||
Measurement period adjustments | ||||
Inventories | 0 | |||
Property, plant and equipment | 0 | |||
Intangibles | 6.7 | |||
Goodwill | (9.4) | |||
Net other liabilities | 2.7 | |||
Total purchase price | $ 0 | |||
Minimum | Burberry Beauty Business | ||||
Measurement period adjustments | ||||
Property, plant and equipment, estimated useful life | 1 year | |||
License and distribution rights, useful life | 3 years | |||
Maximum | Burberry Beauty Business | ||||
Measurement period adjustments | ||||
Property, plant and equipment, estimated useful life | 3 years | |||
License and distribution rights, useful life | 15 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, 2017 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Pro forma Net revenues | $ 8,889.2 | |
Pro forma Net (loss) income | (101.2) | |
Pro forma Net (loss) income attributable to Coty Inc. | $ (142.7) | |
Pro forma Net (loss) income attributable to Coty Inc. per common share | ||
Basic (in dollars per share) | $ (0.19) | |
Diluted (in dollars per share) | $ (0.19) | |
Acquisition-related costs | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Pro forma Net (loss) income | $ (476.3) | |
Amortization of inventory step up | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Pro forma Net (loss) income | $ (89.6) | |
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 - Narrative (
SEGMENT REPORTING - Narrative (Details) $ in Millions | 12 Months Ended | ||||
Jun. 30, 2019unit | Jun. 30, 2019USD ($) | Jun. 30, 2019segment | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | 3 | 3 | |||
Number of operating segments | segment | 3 | ||||
Net revenues | $ 8,648.5 | $ 9,398 | $ 7,650.3 | ||
Depreciation and amortization | 736 | 737 | 555.1 | ||
Operating (loss) income | (3,471.5) | 153.3 | (420.9) | ||
Interest expense, net | 275.7 | 265 | 218.6 | ||
Loss on early extinguishment of debt | 0 | 10.7 | 0 | ||
Other expense, net | 30.9 | 30.1 | 18.5 | ||
Loss before income taxes | (3,778.1) | (152.5) | (658) | ||
Luxury | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 3,294.3 | 3,210.5 | 2,566.6 | ||
Consumer Beauty | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 3,539.3 | 4,268.1 | 3,688.2 | ||
Professional Beauty | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 1,814.9 | 1,919.4 | 1,395.5 | ||
Operating Segments | Luxury | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 271 | 253.3 | 203.5 | ||
Operating (loss) income | 232.8 | 248.7 | 158 | ||
Operating Segments | Consumer Beauty | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 329.8 | 340.4 | 256.2 | ||
Operating (loss) income | (3,598.7) | 278.9 | 261.2 | ||
Operating Segments | Professional Beauty | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 135.2 | 143.3 | 95.4 | ||
Operating (loss) income | 122.1 | 119.4 | 78.5 | ||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 0 | 0 | 0 | ||
Operating (loss) income | $ (227.7) | $ (493.7) | $ (918.6) |
SEGMENT REPORTING - Geographic
SEGMENT REPORTING - Geographic Data (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 8,648.5 | $ 9,398 | $ 7,650.3 |
Long-lived assets | 14,096.7 | 18,568 | 18,612.8 |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 2,656.5 | 2,966 | 2,506.9 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 3,777.8 | 4,201.6 | 3,325.7 |
ALMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 2,214.2 | 2,230.4 | 1,817.7 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 2,418.7 | 2,704.6 | 2,220.4 |
Long-lived assets | 5,613.2 | 7,408.5 | 7,662.4 |
Switzerland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 5,444.4 | 8,000.2 | 6,899.8 |
Brazil | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 712.5 | 718.2 | 863.3 |
All other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 2,326.6 | $ 2,441.1 | $ 3,187.3 |
SEGMENT REPORTING - Reportable
SEGMENT REPORTING - Reportable Segments, Product Categories Exceeding 5% of Consolidated Net Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 8,648.5 | $ 9,398 | $ 7,650.3 |
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 | $ 2,418.7 | $ 2,704.6 | $ 2,220.4 |
Fragrances | Product Concentration Risk | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 39.50% | 36.80% | 36.10% |
Color Cosmetics | Product Concentration Risk | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 26.00% | 28.20% | 29.60% |
Skin & Body Care | Product Concentration Risk | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 9.50% | 10.10% | 12.40% |
Hair Care | Product Concentration Risk | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 25.00% | 24.90% | 21.90% |
ACQUISITION-RELATED COSTS (Deta
ACQUISITION-RELATED COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Combinations [Abstract] | |||
Acquisition-related costs | $ 0 | $ 64.2 | $ 355.4 |
RESTRUCTURING COSTS - Restructu
RESTRUCTURING COSTS - Restructuring Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 44.2 | $ 173.2 | $ 374.8 |
Reclassification of curtailment gain | 5.4 | 10.3 | 2.2 |
Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 28.5 | 106.5 | 365 |
Restructuring costs incurred | 500 | ||
2018 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 16.8 | 68.4 | 0 |
Restructuring costs incurred | 85.2 | ||
Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (1.1) | (1.7) | 9.8 |
Severance and Employee Benefits | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (6) | 67.5 | 333.9 |
Restructuring costs incurred | 395.4 | ||
Severance and Employee Benefits | 2018 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 15.4 | 63.5 | |
Restructuring costs incurred | 78.9 | ||
Third-Party Contract Terminations | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 4.5 | 19.3 | 22.4 |
Restructuring costs incurred | 46.2 | ||
Third-Party Contract Terminations | 2018 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (0.1) | 0.2 | |
Restructuring costs incurred | 0.1 | ||
Fixed Asset Write-offs | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 27.8 | 14.3 | 4.6 |
Restructuring costs incurred | 46.7 | ||
Fixed Asset Write-offs | 2018 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | 1.3 | |
Restructuring costs incurred | 1.3 | ||
Other Restructuring | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 2.2 | 5.4 | 4.1 |
Restructuring costs incurred | 11.7 | ||
Other Restructuring | 2018 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 1.5 | $ 3.4 | |
Restructuring costs incurred | $ 4.9 | ||
Pension Plans | Other income (expense), net | Accounting Standards Update 2017-07 | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Reclassification of curtailment gain | 0.8 | ||
Pension Plans | Restructuring Charges | Accounting Standards Update 2017-07 | Global Integration Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Reclassification of curtailment gain | $ (0.8) |
RESTRUCTURING COSTS - Narrative
RESTRUCTURING COSTS - Narrative (Details) - USD ($) | Jul. 01, 2019 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Oct. 01, 2016 |
Restructuring Cost and Reserve [Line Items] | ||||||||
Reclassification of curtailment gain | $ 5,400,000 | $ 10,300,000 | $ 2,200,000 | |||||
Global Integration Activities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs incurred | 500,000,000 | |||||||
Restructuring accrual | 67,000,000 | 223,100,000 | ||||||
Cash expenditures | 154,300,000 | |||||||
Restructuring charges | 45,600,000 | |||||||
Global Integration Activities | Scenario, Forecast | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Cash expenditures | $ 4,200,000 | $ 18,100,000 | $ 44,700,000 | |||||
2018 Restructuring Actions | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs incurred | 85,200,000 | |||||||
Restructuring accrual | 17,100,000 | 51,500,000 | ||||||
Cash expenditures | 50,300,000 | |||||||
Restructuring charges | 18,700,000 | |||||||
2018 Restructuring Actions | Scenario, Forecast | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Cash expenditures | 400,000 | 700,000 | 16,000,000 | |||||
Other Restructuring | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring accrual | 5,400,000 | 9,400,000 | ||||||
Restructuring charges | (800,000) | (6,500,000) | 9,800,000 | |||||
Other Restructuring | Scenario, Forecast | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Cash expenditures | 2,200,000 | 3,200,000 | ||||||
Other Restructuring | Global Integration Activities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs incurred | 11,700,000 | |||||||
Restructuring accrual | 1,600,000 | 3,100,000 | ||||||
Cash expenditures | 3,700,000 | |||||||
Restructuring charges | 2,400,000 | |||||||
Other Restructuring | 2018 Restructuring Actions | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs incurred | 4,900,000 | |||||||
Restructuring accrual | 1,500,000 | 3,300,000 | ||||||
Cash expenditures | 3,200,000 | |||||||
Restructuring charges | 1,500,000 | |||||||
Subsequent Event | Turnaround Plan | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Expected additional restructuring charges | $ 35,000,000 | |||||||
Restructuring plan term | 4 years | |||||||
Burberry Beauty Business | Other Restructuring | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring accrual | 700,000 | 3,900,000 | ||||||
Restructuring charges | (100,000) | 3,900,000 | ||||||
Burberry Beauty Business | Other Restructuring | Scenario, Forecast | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Cash expenditures | 700,000 | |||||||
Galleria | Other Restructuring | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs incurred | $ 21,700,000 | |||||||
Restructuring accrual | 2,900,000 | |||||||
Restructuring charges | $ (200,000) | $ 900,000 | 0 | |||||
Galleria | Other Restructuring | Scenario, Forecast | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Cash expenditures | $ 200,000 | $ 300,000 | $ 2,400,000 | |||||
Pension Plans | Bourjois | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Reclassification of curtailment gain | 1,800,000 | |||||||
Restructuring Charges | Pension Plans | Accounting Standards Update 2017-07 | Global Integration Activities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Reclassification of curtailment gain | (800,000) | |||||||
Restructuring Charges | Pension Plans | Accounting Standards Update 2017-07 | Bourjois | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Reclassification of curtailment gain | (1,800,000) | |||||||
Other income (expense), net | Pension Plans | Accounting Standards Update 2017-07 | Global Integration Activities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Reclassification of curtailment gain | 800,000 | |||||||
Other income (expense), net | Pension Plans | Accounting Standards Update 2017-07 | Bourjois | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Reclassification of curtailment gain | $ 1,800,000 |
RESTRUCTURING COSTS - Restruc_2
RESTRUCTURING COSTS - Restructuring Roll Forward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Global Integration Activities | |||
Restructuring Reserve [Roll Forward] | |||
Balance—July 1, 2018 | $ 223.1 | ||
Restructuring charges | 45.6 | ||
Payments | (154.3) | ||
Change in estimates | (17.1) | ||
Non-cash impact | (26.9) | ||
Effect of exchange rates | (3.4) | ||
Balance—June 30, 2019 | 67 | $ 223.1 | |
2018 Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Balance—July 1, 2018 | 51.5 | ||
Restructuring charges | 18.7 | ||
Payments | (50.3) | ||
Change in estimates | (1.9) | ||
Effect of exchange rates | (0.9) | ||
Balance—June 30, 2019 | 17.1 | 51.5 | |
Severance and Employee Benefits | Global Integration Activities | |||
Restructuring Reserve [Roll Forward] | |||
Balance—July 1, 2018 | 203 | ||
Restructuring charges | 10.8 | ||
Payments | (141) | ||
Change in estimates | (16.8) | ||
Non-cash impact | 0.9 | ||
Effect of exchange rates | (3.2) | ||
Balance—June 30, 2019 | 53.7 | 203 | |
Severance and Employee Benefits | 2018 Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Balance—July 1, 2018 | 48 | ||
Restructuring charges | 17.2 | ||
Payments | (47.1) | ||
Change in estimates | (1.8) | ||
Effect of exchange rates | (0.8) | ||
Balance—June 30, 2019 | 15.5 | 48 | |
Third-Party Contract Terminations | Global Integration Activities | |||
Restructuring Reserve [Roll Forward] | |||
Balance—July 1, 2018 | 17 | ||
Restructuring charges | 4.6 | ||
Payments | (9.6) | ||
Change in estimates | (0.1) | ||
Non-cash impact | 0 | ||
Effect of exchange rates | (0.2) | ||
Balance—June 30, 2019 | 11.7 | 17 | |
Third-Party Contract Terminations | 2018 Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Balance—July 1, 2018 | 0.2 | ||
Restructuring charges | 0 | ||
Payments | 0 | ||
Change in estimates | (0.1) | ||
Effect of exchange rates | 0 | ||
Balance—June 30, 2019 | 0.1 | 0.2 | |
Fixed Asset Write-offs | Global Integration Activities | |||
Restructuring Reserve [Roll Forward] | |||
Balance—July 1, 2018 | 0 | ||
Restructuring charges | 27.8 | ||
Payments | 0 | ||
Change in estimates | 0 | ||
Non-cash impact | (27.8) | ||
Effect of exchange rates | 0 | ||
Balance—June 30, 2019 | 0 | 0 | |
Other Exit Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance—July 1, 2018 | 9.4 | ||
Restructuring charges | (0.8) | (6.5) | $ 9.8 |
Balance—June 30, 2019 | 5.4 | 9.4 | |
Other Exit Costs | Global Integration Activities | |||
Restructuring Reserve [Roll Forward] | |||
Balance—July 1, 2018 | 3.1 | ||
Restructuring charges | 2.4 | ||
Payments | (3.7) | ||
Change in estimates | (0.2) | ||
Non-cash impact | 0 | ||
Effect of exchange rates | 0 | ||
Balance—June 30, 2019 | 1.6 | 3.1 | |
Other Exit Costs | 2018 Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Balance—July 1, 2018 | 3.3 | ||
Restructuring charges | 1.5 | ||
Payments | (3.2) | ||
Change in estimates | 0 | ||
Effect of exchange rates | (0.1) | ||
Balance—June 30, 2019 | $ 1.5 | $ 3.3 |
TRADE RECEIVABLES - FACTORING (
TRADE RECEIVABLES - FACTORING (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 19, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables Purchase Agreement, aggregate facility limit | $ 150,000,000 | |||
Receivables Purchase Agreement, recourse obligation retained, percentage (up to) | 10.00% | |||
Factored Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Trade receivables, factored | $ 547,900,000 | $ 300,100,000 | ||
Trade receivables, factoring fees | 2,400,000 | 600,000 | $ 700,000 | |
Factored Receivable | Trade Receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Trade receivables, factored, amounts due from factors | $ 8,600,000 | $ 9,900,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 259.5 | $ 278.6 |
Work-in-process | 20.4 | 21.8 |
Finished goods | 873.4 | 848.5 |
Total inventories | $ 1,153.3 | $ 1,148.9 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Value added tax, sales and other non-income tax assets | $ 209.3 | $ 235.4 |
Expected income tax refunds, credits and prepaid income taxes | 135.3 | 101.3 |
Prepaid marketing, copyright and agency fees | 118.9 | 119.6 |
Non-trade receivables | 22.8 | 29.9 |
Prepaid rent, leases and insurance | 14.8 | 17.3 |
Interest rate swap assets | 0 | 17.1 |
Other | 76.7 | 83.3 |
Total prepaid expenses and other current assets | $ 577.8 | $ 603.9 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 01, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 3,115.1 | $ 2,981.6 | ||
Accumulated depreciation and amortization | (1,514.5) | (1,300.8) | ||
Property and equipment, net | 1,600.6 | 1,680.8 | $ 1,674.6 | |
Depreciation and amortization | 382.5 | 384.2 | $ 280 | |
Asset impairment charges | 27.8 | 15.6 | ||
Land, buildings and leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 679 | 671.2 | ||
Machinery and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 904.4 | 866.3 | ||
Marketing furniture and fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 578 | 514.2 | ||
Depreciation and amortization | 127.6 | 120.9 | $ 107.4 | |
Computer equipment and software | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 819.5 | 699.1 | ||
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 134.2 | $ 230.8 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | |||||
Impairment charges | $ 3,391,100,000 | $ 0 | $ 0 | ||
Goodwill and intangible asset impairment | 3,391,100,000 | ||||
Impairment of intangible assets, indefinite-lived | 429,100,000 | ||||
Impairment of intangible assets, finite-lived | 19,700,000 | ||||
Asset impairment charges | 3,851,900,000 | 0 | 0 | ||
Amortization of intangible assets | $ 353,500,000 | 352,800,000 | 275,100,000 | ||
Weighted-average remaining lives | 20 years 4 months 24 days | ||||
Minimum | |||||
Business Acquisition [Line Items] | |||||
Renewal term | 2 years | ||||
Maximum | |||||
Business Acquisition [Line Items] | |||||
Renewal term | 10 years | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Business Acquisition [Line Items] | |||||
Losses (gains) on asset sale | 28,600,000 | (3,100,000) | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Playboy And Cerruti | |||||
Business Acquisition [Line Items] | |||||
Disposal group, intangible assets | 26,200,000 | ||||
Goodwill | 12,300,000 | ||||
Total purchase price | 33,000,000 | ||||
Losses (gains) on asset sale | $ 28,600,000 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | J.Lo | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 2,400,000 | ||||
Total purchase price | $ 10,500,000 | ||||
Luxury | |||||
Business Acquisition [Line Items] | |||||
Asset impairment charges | $ 22,800,000 | ||||
Consumer Beauty | |||||
Business Acquisition [Line Items] | |||||
Impairment charges | $ 2,558,600,000 | 832,500,000 | |||
Goodwill and intangible asset impairment | 930,300,000 | ||||
Impairment of intangible assets, finite-lived | $ 7,000,000 | ||||
Trademarks | Luxury | |||||
Business Acquisition [Line Items] | |||||
Impairment of intangible assets, indefinite-lived | $ 86,800,000 | ||||
Goodwill, impaired, discount rate | 0.25% | 0.75% | 0.25% | ||
Trademarks | Consumer Beauty | |||||
Business Acquisition [Line Items] | |||||
Impairment of intangible assets, indefinite-lived | $ 201,700,000 | $ 90,800,000 | |||
Goodwill, impaired, discount rate | 0.25% | 0.75% | 0.25% | ||
Trademarks | Professional Beauty | |||||
Business Acquisition [Line Items] | |||||
Goodwill, impaired, discount rate | 1.00% | 1.00% | |||
Asset impairment charges | $ 27,000,000 | ||||
License agreements | |||||
Business Acquisition [Line Items] | |||||
Weighted-average remaining lives | 24 years | ||||
License agreements | Minimum | |||||
Business Acquisition [Line Items] | |||||
Weighted-average remaining lives | 5 years | ||||
License agreements | Maximum | |||||
Business Acquisition [Line Items] | |||||
Weighted-average remaining lives | 34 years | ||||
License agreements | Luxury | |||||
Business Acquisition [Line Items] | |||||
Asset impairment charges | $ 12,600,000 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill [Roll Forward] | |||
Gross balance | $ 9,247,900,000 | $ 9,196,300,000 | |
Accumulated impairments | (4,031,900,000) | (640,800,000) | $ (640,800,000) |
Beginning balance | 8,607,100,000 | 8,555,500,000 | |
Acquisitions | 70,800,000 | ||
Impairment charges | (3,391,100,000) | 0 | 0 |
Measurement period adjustments | (9,400,000) | 26,500,000 | |
Foreign currency translation | (132,800,000) | (33,400,000) | |
Dispositions | (12,300,000) | ||
Gross balance | 9,105,700,000 | 9,247,900,000 | 9,196,300,000 |
Accumulated impairments | (4,031,900,000) | (640,800,000) | (640,800,000) |
Ending balance | 5,073,800,000 | 8,607,100,000 | 8,555,500,000 |
Operating Segments | Luxury | |||
Goodwill [Roll Forward] | |||
Gross balance | 3,366,600,000 | 3,496,800,000 | |
Accumulated impairments | (403,700,000) | (403,700,000) | (403,700,000) |
Beginning balance | 2,962,900,000 | 3,093,100,000 | |
Acquisitions | 68,200,000 | ||
Impairment charges | 0 | ||
Measurement period adjustments | (10,500,000) | (185,000,000) | |
Foreign currency translation | (30,700,000) | (10,300,000) | |
Dispositions | (3,100,000) | ||
Gross balance | 3,325,400,000 | 3,366,600,000 | 3,496,800,000 |
Accumulated impairments | (403,700,000) | (403,700,000) | (403,700,000) |
Ending balance | 2,921,700,000 | 2,962,900,000 | 3,093,100,000 |
Operating Segments | Consumer Beauty | |||
Goodwill [Roll Forward] | |||
Gross balance | 4,927,500,000 | 4,732,000,000 | |
Accumulated impairments | (3,628,200,000) | (237,100,000) | (237,100,000) |
Beginning balance | 4,690,400,000 | 4,494,900,000 | |
Acquisitions | 0 | ||
Impairment charges | (3,391,100,000) | ||
Measurement period adjustments | 600,000 | 228,800,000 | |
Foreign currency translation | (83,500,000) | (24,100,000) | |
Dispositions | (9,200,000) | ||
Gross balance | 4,844,600,000 | 4,927,500,000 | 4,732,000,000 |
Accumulated impairments | (3,628,200,000) | (237,100,000) | (237,100,000) |
Ending balance | 1,216,400,000 | 4,690,400,000 | 4,494,900,000 |
Operating Segments | Professional Beauty | |||
Goodwill [Roll Forward] | |||
Gross balance | 953,800,000 | 967,500,000 | |
Accumulated impairments | 0 | 0 | 0 |
Beginning balance | 953,800,000 | 967,500,000 | |
Acquisitions | 2,600,000 | ||
Impairment charges | 0 | ||
Measurement period adjustments | 500,000 | (17,300,000) | |
Foreign currency translation | (18,600,000) | 1,000,000 | |
Dispositions | 0 | ||
Gross balance | 935,700,000 | 953,800,000 | 967,500,000 |
Accumulated impairments | 0 | 0 | 0 |
Ending balance | $ 935,700,000 | $ 953,800,000 | $ 967,500,000 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Other Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Indefinite-lived other intangible assets | $ 2,729.8 | $ 3,186.2 | $ 3,186.9 |
Finite-lived other intangible assets, net | 4,692.5 | 5,098.2 | |
Total Other intangible assets, net | $ 7,422.3 | $ 8,284.4 |
GOODWILL AND OTHER INTANGIBLE_6
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, 2019 | Jun. 30, 2018 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross balance | $ 3,384 | $ 3,384.7 |
Accumulated impairments | (197.8) | (197.8) |
Beginning balance | 3,186.2 | 3,186.9 |
Measurement period adjustments | (14.8) | |
Impairment charges | (429.1) | |
Foreign currency translation | (27.3) | 14.1 |
Gross balance | 3,356.7 | 3,384 |
Accumulated impairments | (626.9) | (197.8) |
Ending balance | 2,729.8 | 3,186.2 |
Operating Segments | Luxury | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross balance | 414.6 | 409.8 |
Accumulated impairments | (118.8) | (118.8) |
Beginning balance | 295.8 | 291 |
Measurement period adjustments | 0 | |
Impairment charges | (109.6) | |
Foreign currency translation | (8.8) | 4.8 |
Gross balance | 405.8 | 414.6 |
Accumulated impairments | (228.4) | (118.8) |
Ending balance | 177.4 | 295.8 |
Operating Segments | Consumer Beauty | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross balance | 1,703.1 | 1,696.4 |
Accumulated impairments | (75.9) | (75.9) |
Beginning balance | 1,627.2 | 1,620.5 |
Measurement period adjustments | 0 | |
Impairment charges | (292.5) | |
Foreign currency translation | (10) | 6.7 |
Gross balance | 1,693.1 | 1,703.1 |
Accumulated impairments | (368.4) | (75.9) |
Ending balance | 1,324.7 | 1,627.2 |
Operating Segments | Professional Beauty | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross balance | 1,266.3 | 1,278.5 |
Accumulated impairments | (3.1) | (3.1) |
Beginning balance | 1,263.2 | 1,275.4 |
Measurement period adjustments | (14.8) | |
Impairment charges | (27) | |
Foreign currency translation | (8.5) | 2.6 |
Gross balance | 1,257.8 | 1,266.3 |
Accumulated impairments | (30.1) | (3.1) |
Ending balance | $ 1,227.7 | $ 1,263.2 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 6,590.5 | $ 6,686.5 |
Accumulated Amortization | (1,872.4) | (1,582.4) |
Accumulated Impairment | (25.6) | (5.9) |
Net | 4,692.5 | 5,098.2 |
License agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 3,245.3 | 3,362.7 |
Accumulated Amortization | (874.5) | (792.9) |
Accumulated Impairment | (19.6) | 0 |
Net | 2,351.2 | 2,569.8 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,951.6 | 1,960.5 |
Accumulated Amortization | (642) | (508.7) |
Accumulated Impairment | (5.5) | (5.5) |
Net | 1,304.1 | 1,446.3 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,039.5 | 1,002.1 |
Accumulated Amortization | (229.4) | (185.5) |
Accumulated Impairment | (0.5) | (0.4) |
Net | 809.6 | 816.2 |
Intangible assets acquired | 40.8 | |
Product formulations and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 354.1 | 361.2 |
Accumulated Amortization | (126.5) | (95.3) |
Accumulated Impairment | 0 | 0 |
Net | $ 227.6 | $ 265.9 |
GOODWILL AND OTHER INTANGIBLE_8
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Weighted Average Remaining Lives of Intangible Assets Subject to Amortization (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 20 years 4 months 24 days |
License agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 24 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 15 years 4 months 24 days |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 21 years 1 month 6 days |
Product formulations and technology | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 9 years 9 months 18 days |
GOODWILL AND OTHER INTANGIBLE_9
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Amortization Expense (Details) $ in Millions | Jun. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 345.8 |
2021 | 340.3 |
2022 | 322.8 |
2023 | 314.4 |
2024 | $ 274.3 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2018 |
Payables and Accruals [Abstract] | |||
Advertising, marketing and licensing | $ 404.1 | $ 435.5 | |
Compensation and other compensation related benefits | 304 | 333.1 | |
Customer returns, discounts, allowances and bonuses | 262 | 328.2 | |
Value added tax, sales and other non-income taxes | 128 | 134.5 | |
Restructuring costs | 67 | 263.8 | |
Mandatorily redeemable financial instrument liability (See Note 20) | 51.8 | 46.6 | |
Auditing, consulting, legal and litigation accruals | 45 | 34.1 | |
Interest | 29.7 | 31.5 | |
Interest rate swap liability | 17.9 | 0 | |
Deferred income | 13.8 | 25.5 | |
Unfavorable contract liability | 11 | 11.3 | |
Tax indemnity liability | 0 | 21.1 | |
Other | 149.4 | 179.2 | |
Total accrued expenses and other current liabilities | $ 1,483.7 | $ 1,865.1 | $ 1,844.4 |
OTHER NONCURRENT LIABILITIES (D
OTHER NONCURRENT LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Noncurrent income tax liabilities | $ 179.9 | $ 137.7 |
Unfavorable contract liabilities | 90.5 | 104.1 |
Deferred rent | 57.4 | 54.2 |
Restructuring costs | 26.1 | 31.1 |
Interest rate swap liability | 24.1 | 0 |
Mandatorily redeemable financial instrument liability | 6.1 | 6.7 |
Burberry contingent consideration | 2.3 | 8.3 |
Other | 40.8 | 46.4 |
Total other noncurrent liabilities | $ 427.2 | $ 388.5 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Debt Instrument [Line Items] | ||
Short-term debt | $ 4.2 | $ 9.2 |
Long term debt | 7,740.5 | |
Other long-term debt and capital lease obligations | 1.1 | 1.6 |
Total debt | 7,745.8 | 7,623.2 |
Less: Short-term debt and current portion of long-term debt | (193.8) | (218.9) |
Total Long-term debt | 7,552 | 7,404.3 |
Less: Unamortized debt issuance costs | (71.3) | (86.2) |
Less: Discount on Long-term debt | (10.8) | (12.7) |
Total Long-term debt, net | 7,469.9 | 7,305.4 |
Line of Credit | Revolving credit facility | 2018 Coty Revolving Credit Facility due April 2023 | ||
Debt Instrument [Line Items] | ||
Long term debt | 792.1 | 368.1 |
Line of Credit | Term Loan | 2018 Coty Term A Facility due April 2023 | ||
Debt Instrument [Line Items] | ||
Long term debt | 3,147 | 3,371.5 |
Line of Credit | Term Loan | 2018 Coty Term B Facility due April 2025 | ||
Debt Instrument [Line Items] | ||
Long term debt | 2,342.3 | 2,390.5 |
Senior Notes | 2026 Dollar Notes due April 2026 | ||
Debt Instrument [Line Items] | ||
Long term debt | 550 | 550 |
Senior Notes | 2023 Euro Notes due April 2023 | ||
Debt Instrument [Line Items] | ||
Long term debt | 625 | 640.9 |
Senior Notes | 2026 Euro Notes due April 2026 | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 284.1 | $ 291.4 |
DEBT - Short-Term Debt (Details
DEBT - Short-Term Debt (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 4,200,000 | $ 9,200,000 |
Weighted-average interest rate | 3.30% | 2.20% |
Short-term Lines of Credit | ||
Short-term Debt [Line Items] | ||
Borrowing capacity | $ 113,500,000 | $ 129,200,000 |
Short-term debt | 2,300,000 | 4,700,000 |
Letter of credit | ||
Short-term Debt [Line Items] | ||
Undrawn letters of credit | 6,300,000 | 5,400,000 |
Bank Guarantee | ||
Short-term Debt [Line Items] | ||
Undrawn letters of credit | $ 97,100,000 | $ 59,800,000 |
Minimum | Short-term Lines of Credit | ||
Short-term Debt [Line Items] | ||
Interest rate spread | 0.40% | 0.20% |
Maximum | Short-term Lines of Credit | ||
Short-term Debt [Line Items] | ||
Interest rate spread | 7.30% | 10.70% |
DEBT - Schedule of Long Term De
DEBT - Schedule of Long Term Debt Facilities (Details) | Apr. 05, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019EUR (€) | Apr. 05, 2018EUR (€) |
Line of Credit | Revolving credit facility | Coty Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Unused commitment fee percentage | 0.35% | 0.30% | |||
Line of Credit | Revolving credit facility | Coty Credit Agreement | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Unused commitment fee percentage | 0.10% | ||||
Line of Credit | Revolving credit facility | Coty Credit Agreement | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Unused commitment fee percentage | 0.35% | ||||
Line of Credit | Revolving credit facility | 2018 Coty Revolving Credit Facility due April 2023 | |||||
Line of Credit Facility [Line Items] | |||||
Applicable Interest Rate Spread | 1.75% | 1.75% | |||
Borrowing Capacity | $ | $ 2,750,000,000 | $ 3,250,000,000 | |||
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 | Term Loan A Facility, Due April 2023 | U.S. Dollar | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing Capacity | $ | $ 1,000,000,000 | ||||
Applicable Interest Rate Spread | 1.75% | 1.75% | |||
Line of Credit | Term Loan | Term Loan A Facility, Due April 2023 | Euro | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing Capacity | € 2,035,000,000 | ||||
Applicable Interest Rate Spread | 1.75% | 1.75% | |||
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 | U.S. Dollar | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing Capacity | $ | $ 1,400,000,000 | ||||
Applicable Interest Rate Spread | 2.25% | 2.25% | |||
Debt Discount | 0.25% | 0.25% | |||
Line of Credit | Term Loan | Term Loan B Facility, Due April 2025 | Euro | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing Capacity | € 850,000,000 | ||||
Applicable Interest Rate Spread | 2.50% | 2.50% | |||
Debt Discount | 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] | |||||
Margin percentage | 2.25% | ||||
Repayment percentage | 0.25% | ||||
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% | ||||
Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Margin percentage | 0.50% | ||||
Senior Notes | 2026 Dollar Notes | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing Capacity | $ | $ 550,000,000 | ||||
Senior Notes | 2023 Euro Notes | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing Capacity | € 550,000,000 | ||||
Senior Notes | 2026 Euro Notes | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing Capacity | € 250,000,000 | ||||
Senior Notes | Term Loan | 2026 Dollar Notes | U.S. Dollar | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing Capacity | $ | $ 550,000,000 | ||||
Margin percentage | 6.50% | ||||
Senior Notes | Term Loan | 2023 Euro Notes | Euro | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing Capacity | € 550,000,000 | ||||
Margin percentage | 4.00% | ||||
Senior Notes | Term Loan | 2026 Euro Notes | Euro | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing Capacity | € 250,000,000 | ||||
Margin percentage | 4.75% |
DEBT - Offering of Senior Unsec
DEBT - Offering of Senior Unsecured Notes (Details) - Senior Notes | Apr. 05, 2018USD ($) | Apr. 05, 2018EUR (€) |
Debt Instrument [Line Items] | ||
Redemption price, percentage | 101.00% | |
2026 Dollar Notes | ||
Debt Instrument [Line Items] | ||
Amount of debt | $ | $ 550,000,000 | |
Stated interest rate | 6.50% | 6.50% |
Redemption price, percentage | 106.50% | |
2023 Euro Notes | ||
Debt Instrument [Line Items] | ||
Amount of debt | € 550,000,000 | |
Stated interest rate | 4.00% | 4.00% |
Redemption price, percentage | 104.00% | |
2026 Euro Notes | ||
Debt Instrument [Line Items] | ||
Amount of debt | € 250,000,000 | |
Stated interest rate | 4.75% | 4.75% |
Redemption price, percentage | 104.75% | |
Euro Notes | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 100.00% |
DEBT - Optional Redemption (Det
DEBT - Optional Redemption (Details) | Apr. 05, 2018 |
Maximum | |
Debt Instrument [Line Items] | |
Redemption price, percentage | 35.00% |
Redemption price, percentage of principal amount outstanding | 65.00% |
Senior Notes | |
Debt Instrument [Line Items] | |
Early redemption premium, percent of outstanding principal amount | 1.00% |
Margin percentage | 0.50% |
Redemption price, percentage | 101.00% |
Senior Notes | Euro Notes | |
Debt Instrument [Line Items] | |
Redemption price, percentage | 100.00% |
Senior Notes | 2026 Dollar Notes | |
Debt Instrument [Line Items] | |
Redemption price, percentage | 106.50% |
Senior Notes | 2023 Euro Notes | |
Debt Instrument [Line Items] | |
Redemption price, percentage | 104.00% |
Senior Notes | 2026 Euro Notes | |
Debt Instrument [Line Items] | |
Redemption price, percentage | 104.75% |
DEBT - Schedule of Debt Redempt
DEBT - Schedule of Debt Redemption (Details) - Senior Notes | Apr. 05, 2018 | Jun. 30, 2019 |
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 101.00% | |
2026 Dollar Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 106.50% | |
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 | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 104.00% | |
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 | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price, percentage | 104.75% | |
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 - 2018 Coty Credit Agreeme
DEBT - 2018 Coty Credit Agreement (Details) | Jun. 27, 2019USD ($) | Jun. 26, 2019 | Apr. 05, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Line of Credit Facility [Line Items] | ||||||
Deferred financing fees write-off | $ 0 | $ 2,000,000 | $ 0 | |||
Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Deferred financing fees write-off | $ 0 | $ 8,700,000 | $ 0 | |||
2018 Coty Revolving Credit Facility | Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowing capacity | $ 2,750,000,000 | |||||
Decrease in maximum borrowing capacity | 500,000,000 | |||||
Deferred financing fees write-off | $ 3,800,000 | |||||
2018 Coty Revolving Credit Facility | Line of Credit | Letter of credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowing capacity | $ 150,000,000 | |||||
2018 Coty Revolving Credit Facility | Line of Credit | Swingline loans | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowing capacity | 150,000,000 | |||||
2018 Coty Revolving Credit Facility | Line of Credit | Incurrence Incremental Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowing capacity | $ 1,700,000,000 | |||||
Total net leverage ratio | 3 | |||||
March 31, 2022 | ||||||
Line of Credit Facility [Line Items] | ||||||
Total net leverage ratio | 5 | |||||
March 31, 2022 | 2018 Coty Revolving Credit Facility | Line of Credit | Incurrence Incremental Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Total net leverage ratio | 5 | 5.25 |
DEBT - Deferred Issuance Costs
DEBT - Deferred Issuance Costs (Details) - Line of Credit - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | |||
Recognized deferred financing fees | $ 5.9 | $ 37.8 | $ 24.4 |
Payments of debt issuance costs | $ 0.8 | $ 24.1 |
DEBT - Loss on Early Extinguish
DEBT - Loss on Early Extinguishment of Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | |||
Deferred financing fees write-off | $ 0 | $ 2 | $ 0 |
Line of Credit | |||
Debt Instrument [Line Items] | |||
Deferred financing fees write-off | $ 0 | $ 8.7 | $ 0 |
DEBT - Schedule of Debt Pricing
DEBT - Schedule of Debt Pricing Tier (Details) | 12 Months Ended |
Jun. 30, 2019 | |
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 - Interest (Details)
DEBT - Interest (Details) - Coty Term Loan B Facility due October 2022 | 12 Months Ended |
Jun. 30, 2019 | |
LIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 2.25% |
Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 1.25% |
EURIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 2.50% |
DEBT - Schedule of Fair Value o
DEBT - Schedule of Fair Value of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Carrying Amount | 2018 Coty Credit Agreement | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 6,281.4 | $ 6,130.1 |
Fair Value | 2018 Coty Credit Agreement | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 6,058.9 | 6,070.8 |
Senior Notes | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 1,459.1 | 1,482.3 |
Senior Notes | Fair Value | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 1,439.6 | $ 1,449.9 |
DEBT - Long-term Debt Repayment
DEBT - Long-term Debt Repayment Schedule (Details) $ in Millions | Jun. 30, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 189.3 |
2021 | 189.3 |
2022 | 189.3 |
2023 | 4,090.9 |
2024 | 23.6 |
Thereafter | 3,058.1 |
Total | $ 7,740.5 |
DEBT - Schedule of Debt Covenan
DEBT - Schedule of Debt Covenants (Details) | 12 Months Ended |
Jun. 30, 2019 | |
June 30, 2019 through December 31, 2021 | |
Debt Instrument [Line Items] | |
Total Net Leverage Ratio | 5.25 |
March 31, 2022 | |
Debt Instrument [Line Items] | |
Total Net Leverage Ratio | 5 |
June 30, 2022 | |
Debt Instrument [Line Items] | |
Total Net Leverage Ratio | 4.75 |
September 30, 2022 | |
Debt Instrument [Line Items] | |
Total Net Leverage Ratio | 4.5 |
December 31, 2022 | |
Debt Instrument [Line Items] | |
Total Net Leverage Ratio | 4.25 |
March 31, 2023 through June 30, 2023 | |
Debt Instrument [Line Items] | |
Total Net Leverage Ratio | 4 |
DEBT - Covenants (Details)
DEBT - Covenants (Details) - Line of Credit | 12 Months Ended |
Jun. 30, 2019 | |
Maximum | |
Debt Instrument [Line Items] | |
Maximum total net leverage ratio covenant | 5.95 |
Minimum | |
Debt Instrument [Line Items] | |
Maximum total net leverage ratio covenant | 1 |
LEASE AND OTHER COMMITMENTS - N
LEASE AND OTHER COMMITMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Leases [Abstract] | |||
Rent expense | $ 197.7 | $ 208.2 | $ 166.1 |
Payments collected from sub-lessors | $ 9.4 | $ 6.2 | $ 6 |
LEASE AND OTHER COMMITMENTS - M
LEASE AND OTHER COMMITMENTS - Minimum rental lease commitments and purchase obligation (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases | |
2020 | $ 122.2 |
2021 | 111.2 |
2022 | 91.3 |
2023 | 76.7 |
2024 | 67.8 |
Thereafter | 252.3 |
Gross minimum payments required | 721.5 |
Less: sublease income | (20.1) |
Total minimum payments required | 701.4 |
Purchase Obligations | |
2020 | 317.9 |
2021 | 89.1 |
2022 | 66.8 |
2023 | 33.8 |
2024 | 22.3 |
Thereafter | 0.5 |
Total minimum payments required | $ 530.4 |
INCOME TAXES - Income (Loss) fr
INCOME TAXES - Income (Loss) from Operations before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (1,994.3) | $ (324.2) | $ (524.8) |
Foreign | (1,783.8) | 171.7 | (133.2) |
Loss before income taxes | $ (3,778.1) | $ (152.5) | $ (658) |
INCOME TAXES - Components of Pr
INCOME TAXES - Components of Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Current: | |||
Federal | $ 0.8 | $ 0.2 | $ 0.4 |
State and local | 11.1 | 9.8 | 1.1 |
Foreign | 155.3 | 67 | 129 |
Total | 167.2 | 77 | 130.5 |
Deferred: | |||
Federal | (116.6) | 25.2 | (256.9) |
State and local | (49.9) | (0.7) | (24.2) |
Foreign | (9.2) | (126.2) | (108.9) |
Total | (175.7) | (101.7) | (390) |
Benefit for income taxes | $ (8.5) | $ (24.7) | $ (259.5) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Jun. 30, 2019USD ($)jurisdiction | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Income Tax Contingency [Line Items] | |||||
Tax Cuts and Jobs Act income tax expense | $ 41 | ||||
Tax loss carry forwards subject to expiration | $ 1,272.7 | ||||
Valuation allowance | 67.7 | 104.6 | |||
Unrecognized tax benefits | 336.1 | 303.6 | $ 257.9 | $ 228.9 | |
Unrecognized tax benefits that would impact effective tax rate | 162.2 | ||||
Interest accrued | 4.5 | 0.8 | 1.4 | ||
Penalties accrued | $ 0 | 0.4 | $ 0.1 | ||
Number of tax jurisdictions | jurisdiction | 55 | ||||
Income tax benefit | $ 11.7 | 53.3 | |||
Amount of decrease in UTBs | 23.1 | ||||
Foreign earnings repatriated | 4,600 | ||||
Tax Cuts And Jobs Act Of 2017 income tax expense | 41 | ||||
Income and Other Taxes Payable and Other Non-current Liabilities | |||||
Income Tax Contingency [Line Items] | |||||
Accrued interest and penalties | 179.9 | 135.4 | |||
Other Noncurrent Liabilities | |||||
Income Tax Contingency [Line Items] | |||||
Accrued interest and penalties | $ 17.3 | $ 13.1 | |||
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, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes | $ (3,778.1) | $ (152.5) | $ (658) |
Benefit for income taxes at statutory rate | (793.4) | (42.8) | (230.3) |
State and local taxes—net of federal benefit | (30.7) | 9.9 | (15) |
Foreign tax differentials | 58.8 | (21.9) | 53.3 |
Change in valuation allowances | (6.7) | 8.6 | (108.2) |
Change in unrecognized tax benefit | 43.4 | (24.8) | 25.6 |
Tax Act | 0 | 41 | 0 |
Permanent differences—net | 1.8 | (8.5) | 1.2 |
Amortization on intercompany sale | 0 | 5.4 | 5.7 |
Goodwill impairment | 693 | 0 | 0 |
Other | 25.3 | 8.4 | 8.2 |
Benefit for income taxes | $ (8.5) | $ (24.7) | $ (259.5) |
Effective income tax rate | 0.20% | 16.20% | 39.40% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred income tax assets: | ||
Inventories | $ 21.6 | $ 9 |
Accruals and allowances | 63.1 | 84.2 |
Sales returns | 18.4 | 13.1 |
Share-based compensation | 14.8 | 13.4 |
Employee benefits | 133.8 | 115.7 |
Net operating loss carry forwards and tax credits | 294.3 | 285.1 |
Interest expense limitation carry forward | 52.3 | 0 |
Other | 37.1 | 48.3 |
Less: valuation allowances | (67.7) | (104.6) |
Net deferred income tax assets | 567.7 | 464.2 |
Deferred income tax liabilities: | ||
Intangible assets | 986.6 | 1,115.7 |
Property, plant and equipment | 13.4 | 18.9 |
Unrealized gain | 0.5 | 5.4 |
Licensing rights | 23.7 | 21.5 |
Other | 49.7 | 37.8 |
Deferred income tax liabilities | 1,073.9 | 1,199.3 |
Net deferred income tax liabilities | $ (506.2) | $ (735.1) |
INCOME TAXES - Expirations of T
INCOME TAXES - Expirations of Tax Loss Carry Forwards (Details) $ in Millions | Jun. 30, 2019USD ($) |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 1,272.7 |
Tax Year 2020 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 68.1 |
Tax Year 2021 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 13.3 |
Tax Year 2022 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 19.7 |
Tax Year 2023 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 10 |
Tax Year 2024 and Thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 1,161.6 |
United States | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 149.8 |
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 2023 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | Tax Year 2024 and Thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 149.8 |
Western Europe | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 838.3 |
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 | 1.2 |
Western Europe | Tax Year 2023 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 1.7 |
Western Europe | Tax Year 2024 and Thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 835.4 |
Rest of World | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 284.6 |
Rest of World | Tax Year 2020 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 68.1 |
Rest of World | Tax Year 2021 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 13.3 |
Rest of World | Tax Year 2022 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 18.5 |
Rest of World | Tax Year 2023 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 8.3 |
Rest of World | Tax Year 2024 and Thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 176.4 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefit Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 303.6 | $ 257.9 | $ 228.9 |
Additions based on tax positions related to the current year | 49.1 | 44.1 | 43.6 |
Additions for tax positions of prior years | 8.3 | 97.4 | 0.4 |
Reductions for tax positions of prior years | (9.6) | (39.9) | 0 |
Settlements | (2.7) | (42.3) | (1.5) |
Lapses in statutes of limitations | (9) | (11) | (13.2) |
Foreign currency translation | (3.6) | (2.6) | (0.3) |
Ending balance | $ 336.1 | $ 303.6 | $ 257.9 |
INTEREST EXPENSE, NET (Details)
INTEREST EXPENSE, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest Income (Expense), Net [Abstract] | |||
Interest expense | $ 302.5 | $ 287.1 | $ 219.6 |
Foreign exchange (gain) losses, net of derivative contracts | (7.6) | (8.5) | 3.4 |
Interest income | (19.2) | (13.6) | (4.4) |
Total interest expense, net | $ 275.7 | 265 | $ 218.6 |
Gain related to short-term forward contracts | $ 1.4 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 29, 2019 | |
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% | ||||
Curtailment gain | $ 5.4 | $ 10.3 | $ 2.2 | ||
Settlements (gain) loss recognized | 0.8 | 0 | (15.4) | ||
Benefit obligation, decrease for plan amendment | 10.3 | 0 | |||
Other Post-Employment Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Curtailment gain | 0 | 10.4 | 0 | ||
Settlements (gain) loss recognized | 0 | 0 | 0 | ||
Benefit obligation, decrease for plan amendment | 0 | 0 | |||
Expected contributions | $ 2.4 | 2.4 | |||
U.S. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | 20.4 | 22 | 20.6 | ||
U.S. | Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Curtailment gain | 0 | 0 | 0 | ||
Settlements (gain) loss recognized | 0 | 0 | |||
Benefit obligation, decrease for plan amendment | 0 | 0 | |||
Accumulated benefit obligation | 17.7 | 17.7 | 17.5 | ||
Expected contributions | $ 1.3 | 1.3 | |||
U.S. | Pension Plans | Del Laboratories, Inc | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlements (gain) loss recognized | (15.9) | ||||
International | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | 12.9 | 18.3 | 13.3 | ||
International | Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Curtailment gain | 5.4 | (0.1) | 2.2 | ||
Settlements (gain) loss recognized | $ 0.8 | 0 | 0.5 | ||
Assumptions used calculating benefit obligation, technical interest rate | 2.00% | 2.00% | 2.25% | ||
Assumptions used calculating benefit obligation, annuity conversion rate | 5.10% | 5.10% | 6.21% | ||
Benefit obligation, decrease for plan amendment | $ 10.3 | $ 10.3 | 0 | ||
Accumulated benefit obligation | 733.7 | 733.7 | 669.1 | ||
Expected contributions | $ 35.5 | 35.5 | |||
International | Other Post-Employment Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Curtailment gain | $ 10.4 | ||||
Bourjois | Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Curtailment gain | 1.8 | ||||
Global Integration Activities | International | Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Curtailment gain | $ 5.1 | 0.4 | |||
Settlements (gain) loss recognized | $ 0.4 |
EMPLOYEE BENEFIT PLANS - Reconc
EMPLOYEE BENEFIT PLANS - Reconciliation of the Projected Benefit Obligations, Plan Assets, Funded Status (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation - beginning balance | $ 803.3 | $ 791.4 | ||
Service cost | 34.5 | 40.2 | $ 36.7 | |
Interest cost | 15.6 | 15.3 | 10 | |
Plan participants’ contributions | 7.2 | 7.3 | ||
Plan amendments | (10.3) | 0 | ||
Benefits paid | (20) | (56) | ||
New employees transfers in | 16.2 | 23.5 | ||
Premiums paid | (2.5) | (2.7) | ||
Pension curtailment | (5.4) | (10.1) | ||
Pension settlement | (37.4) | (1) | ||
Actuarial loss (gain) | 74.8 | (9.5) | ||
Effect of exchange rates | (10.9) | 4.9 | ||
Other | 0.5 | 0 | ||
Benefit obligation - ending balance | $ 865.6 | 865.6 | 803.3 | 791.4 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets - beginning balance | 262.2 | 234.6 | ||
Actual return on plan assets | 3.5 | 18.8 | ||
Employer contributions | 39.3 | 39.8 | ||
Plan participants’ contributions | 7.2 | 7.3 | ||
Benefits paid | (20) | (55.6) | ||
New employees transfers in | 16.2 | 23.5 | ||
Premiums paid | (2.5) | (2.7) | ||
Plan settlements | (37.4) | (1) | ||
Effect of exchange rates | (0.1) | (2.5) | ||
Other | (0.5) | 0 | ||
Fair value of plan assets - ending balance | 268.9 | 268.9 | 262.2 | 234.6 |
Funded status | (596.7) | (596.7) | (541.1) | |
Other Post-Employment Benefits | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation - beginning balance | 53.2 | 63.8 | ||
Service cost | 1.2 | 1.4 | 1.9 | |
Interest cost | 2.1 | 2 | 1.8 | |
Plan participants’ contributions | 0.2 | 0.2 | ||
Plan amendments | 0 | 0 | ||
Benefits paid | (1.8) | (1.6) | ||
New employees transfers in | 0 | 0 | ||
Premiums paid | 0 | 0 | ||
Pension curtailment | 0 | (10.4) | ||
Pension settlement | 0 | 0 | ||
Actuarial loss (gain) | 4.1 | (2.5) | ||
Effect of exchange rates | (0.1) | 0.3 | ||
Other | (1.1) | 0 | ||
Benefit obligation - ending balance | 57.8 | 57.8 | 53.2 | 63.8 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets - beginning balance | 0.4 | 0.4 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 1.6 | 1.4 | ||
Plan participants’ contributions | 0.2 | 0.2 | ||
Benefits paid | (1.8) | (1.6) | ||
New employees transfers in | 0 | 0 | ||
Premiums paid | 0 | 0 | ||
Plan settlements | 0 | 0 | ||
Effect of exchange rates | 0 | 0 | ||
Other | 0 | 0 | ||
Fair value of plan assets - ending balance | 0.4 | 0.4 | 0.4 | 0.4 |
Funded status | (57.4) | (57.4) | (52.8) | |
United States | Pension Plans | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation - beginning balance | 17.5 | 18.8 | ||
Service cost | 0 | 0 | 0 | |
Interest cost | 0.7 | 0.7 | 1.6 | |
Plan participants’ contributions | 0 | 0 | ||
Plan amendments | 0 | 0 | ||
Benefits paid | (1.3) | (1.3) | ||
New employees transfers in | 0 | 0 | ||
Premiums paid | 0 | 0 | ||
Pension curtailment | 0 | 0 | ||
Pension settlement | 0 | 0 | ||
Actuarial loss (gain) | 0.8 | (0.7) | ||
Effect of exchange rates | 0 | 0 | ||
Other | 0 | 0 | ||
Benefit obligation - ending balance | 17.7 | 17.7 | 17.5 | 18.8 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets - beginning balance | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 1.3 | 1.3 | ||
Plan participants’ contributions | 0 | 0 | ||
Benefits paid | (1.3) | (1.3) | ||
New employees transfers in | 0 | 0 | ||
Premiums paid | 0 | 0 | ||
Plan settlements | 0 | 0 | ||
Effect of exchange rates | 0 | 0 | ||
Other | 0 | 0 | ||
Fair value of plan assets - ending balance | 0 | 0 | 0 | 0 |
Funded status | (17.7) | (17.7) | (17.5) | |
International | Pension Plans | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation - beginning balance | 732.6 | 708.8 | ||
Service cost | 33.3 | 38.8 | 34.8 | |
Interest cost | 12.8 | 12.6 | 6.6 | |
Plan participants’ contributions | 7 | 7.1 | ||
Plan amendments | (10.3) | (10.3) | 0 | |
Benefits paid | (16.9) | (53.1) | ||
New employees transfers in | 16.2 | 23.5 | ||
Premiums paid | (2.5) | (2.7) | ||
Pension curtailment | (5.4) | 0.3 | ||
Pension settlement | (37.4) | (1) | ||
Actuarial loss (gain) | 69.9 | (6.3) | ||
Effect of exchange rates | (10.8) | 4.6 | ||
Other | 1.6 | 0 | ||
Benefit obligation - ending balance | 790.1 | 790.1 | 732.6 | 708.8 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets - beginning balance | 261.8 | 234.2 | ||
Actual return on plan assets | 3.5 | 18.8 | ||
Employer contributions | 36.4 | 37.1 | ||
Plan participants’ contributions | 7 | 7.1 | ||
Benefits paid | (16.9) | (52.7) | ||
New employees transfers in | 16.2 | 23.5 | ||
Premiums paid | (2.5) | (2.7) | ||
Plan settlements | (37.4) | (1) | ||
Effect of exchange rates | (0.1) | (2.5) | ||
Other | (0.5) | 0 | ||
Fair value of plan assets - ending balance | 268.5 | 268.5 | 261.8 | $ 234.2 |
Funded status | $ (521.6) | $ (521.6) | $ (470.8) |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amount Recognized in Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | $ 1.5 | $ 1.1 |
Current liabilities | (4.7) | (8.9) |
Noncurrent liabilities | (593.5) | (533.3) |
Funded status | (596.7) | (541.1) |
AOC(L)/I | (10.1) | 66.5 |
Net amount recognized | (606.8) | (474.6) |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (2.5) | (2.1) |
Noncurrent liabilities | (54.9) | (50.7) |
Funded status | (57.4) | (52.8) |
AOC(L)/I | 10 | 20.1 |
Net amount recognized | (47.4) | (32.7) |
United States | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (1.4) | (1.3) |
Noncurrent liabilities | (16.3) | (16.2) |
Funded status | (17.7) | (17.5) |
AOC(L)/I | 0.2 | 1.7 |
Net amount recognized | (17.5) | (15.8) |
International | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 1.5 | 1.1 |
Current liabilities | (0.8) | (5.5) |
Noncurrent liabilities | (522.3) | (466.4) |
Funded status | (521.6) | (470.8) |
AOC(L)/I | (20.3) | 44.7 |
Net amount recognized | $ (541.9) | $ (426.1) |
EMPLOYEE BENEFIT PLANS - Pensio
EMPLOYEE BENEFIT PLANS - Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets (Details) - Pension Plans - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
United States | ||
Pension plans with accumulated benefit obligations in excess of plan assets | ||
Projected benefit obligation | $ 17.7 | $ 17.5 |
Accumulated benefit obligation | 17.7 | 17.5 |
Fair value of plan assets | 0 | 0 |
Pension plans with projected benefit obligations in excess of plan assets | ||
Projected benefit obligation | 17.7 | 17.5 |
Accumulated benefit obligation | 17.7 | 17.5 |
Fair value of plan assets | 0 | 0 |
International | ||
Pension plans with accumulated benefit obligations in excess of plan assets | ||
Projected benefit obligation | 767.5 | 713.9 |
Accumulated benefit obligation | 716.3 | 657.8 |
Fair value of plan assets | 248.2 | 247 |
Pension plans with projected benefit obligations in excess of plan assets | ||
Projected benefit obligation | 775.9 | 725 |
Accumulated benefit obligation | 733.7 | 669.1 |
Fair value of plan assets | $ 254.9 | $ 254.2 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 34.5 | $ 40.2 | $ 36.7 |
Interest cost | 15.6 | 15.3 | 10 |
Expected return on plan assets | (8.2) | (7.5) | (7.2) |
Amortization of prior service (credit) cost | (5.7) | (5.7) | (5.7) |
Amortization of net (gain) loss | (0.5) | 0.4 | 6.6 |
Settlements (gain) loss recognized | (0.8) | 0 | 15.4 |
Curtailment (gain) loss recognized | (5.4) | (10.3) | (2.2) |
Net periodic benefit cost | 29.5 | 32.4 | 53.6 |
Other Post-Employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1.2 | 1.4 | 1.9 |
Interest cost | 2.1 | 2 | 1.8 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (5.9) | (5.9) | (5.9) |
Amortization of net (gain) loss | (0.1) | (0.1) | 0.1 |
Settlements (gain) loss recognized | 0 | 0 | 0 |
Curtailment (gain) loss recognized | 0 | (10.4) | 0 |
Net periodic benefit cost | (2.7) | (13) | (2.1) |
United States | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0.7 | 0.7 | 1.6 |
Expected return on plan assets | 0 | 0 | (0.9) |
Amortization of prior service (credit) cost | 0 | 0 | 0 |
Amortization of net (gain) loss | (0.7) | (0.7) | 2.3 |
Settlements (gain) loss recognized | 0 | 0 | |
Curtailment (gain) loss recognized | 0 | 0 | 0 |
Net periodic benefit cost | 0 | 0 | 18.9 |
International | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 33.3 | 38.8 | 34.8 |
Interest cost | 12.8 | 12.6 | 6.6 |
Expected return on plan assets | (8.2) | (7.5) | (6.3) |
Amortization of prior service (credit) cost | 0.2 | 0.2 | 0.2 |
Amortization of net (gain) loss | 0.3 | 1.2 | 4.2 |
Settlements (gain) loss recognized | (0.8) | 0 | (0.5) |
Curtailment (gain) loss recognized | (5.4) | 0.1 | (2.2) |
Net periodic benefit cost | $ 32.2 | 45.4 | $ 36.8 |
International | 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, 2019 | Jun. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | $ (29.2) | $ 52.2 |
Prior service credit (cost) | 19.1 | 14.3 |
Total recognized in AOC(L)/I | (10.1) | 66.5 |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | (0.4) | 3.8 |
Prior service credit (cost) | 10.4 | 16.3 |
Total recognized in AOC(L)/I | 10 | 20.1 |
United States | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 0.2 | 1.7 |
Prior service credit (cost) | 0 | 0 |
Total recognized in AOC(L)/I | 0.2 | 1.7 |
International | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | (29) | 46.7 |
Prior service credit (cost) | 8.7 | (2) |
Total recognized in AOC(L)/I | $ (20.3) | $ 44.7 |
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, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | $ (79.5) | $ 20.8 |
Amortization of prior service (credit) cost | (5.7) | (5.7) |
Recognized net actuarial (gain) loss | (1.3) | 0.5 |
Prior service credit (cost) | 10.3 | 0 |
Effect of exchange rates | (0.4) | 0.4 |
Total recognized in OCI/(L) | (76.6) | 16 |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | (4.1) | 2.3 |
Amortization of prior service (credit) cost | (5.9) | (5.9) |
Recognized net actuarial (gain) loss | (0.1) | (0.1) |
Prior service credit (cost) | 0 | 0 |
Effect of exchange rates | 0 | 0.1 |
Total recognized in OCI/(L) | (10.1) | (3.6) |
United States | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | (0.8) | 0.7 |
Amortization of prior service (credit) cost | 0 | 0 |
Recognized net actuarial (gain) loss | (0.7) | (0.6) |
Prior service credit (cost) | 0 | 0 |
Effect of exchange rates | 0 | 0 |
Total recognized in OCI/(L) | (1.5) | 0.1 |
International | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | (74.6) | 17.8 |
Amortization of prior service (credit) cost | 0.2 | 0.2 |
Recognized net actuarial (gain) loss | (0.5) | 1.2 |
Prior service credit (cost) | 10.3 | 0 |
Effect of exchange rates | (0.4) | 0.3 |
Total recognized in OCI/(L) | $ (65) | $ 19.5 |
EMPLOYEE BENEFIT PLANS - Amou_2
EMPLOYEE BENEFIT PLANS - Amounts in AOCI to be Amortized (Details) $ in Millions | Jun. 30, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit (cost) | $ 6.7 |
Net gain (loss) | (0.5) |
Total | 6.2 |
Other Post-Employment Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit (cost) | 5.9 |
Net gain (loss) | 0.1 |
Total | 6 |
United States | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit (cost) | 0 |
Net gain (loss) | (0.7) |
Total | (0.7) |
International | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit (cost) | 0.8 |
Net gain (loss) | 0.1 |
Total | $ 0.9 |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Assumptions (Details) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
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 | 7.10% | 7.40% | 7.20% |
Minimum | Other Post-Employment Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 1.70% | 2.30% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 2.30% | 1.90% | 1.40% |
Maximum | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rate assumed for next year | 8.00% | 8.50% | 7.40% |
Maximum | Other Post-Employment Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 3.50% | 4.20% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 4.20% | 7.60% | 8.00% |
U.S. | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 3.20% | 4.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 4.00% | 3.60% | |
U.S. | Minimum | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 3.30% | ||
U.S. | Maximum | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 3.80% | ||
U.S. | Maximum | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 3.60% | ||
International | Minimum | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 0.60% | 0.40% | 0.20% |
Future compensation growth rates | 1.50% | 1.50% | 1.50% |
Expected long-term rates of return on plan assets | 2.00% | 1.80% | 1.60% |
International | Minimum | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 0.40% | 0.60% | |
Future compensation growth rates | 1.00% | 1.50% | |
International | Maximum | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 8.00% | 7.50% | 7.80% |
Future compensation growth rates | 5.70% | 6.00% | 5.80% |
Expected long-term rates of return on plan assets | 8.40% | 8.20% | 6.00% |
International | Maximum | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 8.40% | 8.00% | |
Future compensation growth rates | 5.80% | 5.80% |
EMPLOYEE BENEFIT PLANS - Effect
EMPLOYEE BENEFIT PLANS - Effect of One Percent Point Change in Assumed Health Care Cost Trend Rates (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Retirement Benefits [Abstract] | |
Effect of one percentage point increase on service cost and interest cost | $ 6.6 |
Effect of one percentage point decrease on service cost and interest cost | (5.8) |
Effect of one percentage point increase on post-employment benefit obligation | 0.4 |
Effect of one percentage point decrease on post-employment benefit obligation | $ (0.3) |
EMPLOYEE BENEFIT PLANS - Target
EMPLOYEE BENEFIT PLANS - Target and Weighted-average Asset Allocations (Details) - Pension Plans - United States | Jun. 30, 2019 | Jun. 30, 2018 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target percentage of plan assets | 40.00% | |
Actual percentage of plan assets | 41.00% | 41.00% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target percentage of plan assets | 50.00% | |
Actual percentage of plan assets | 42.00% | 42.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target percentage of plan assets | 10.00% | |
Actual percentage of plan assets | 17.00% | 17.00% |
EMPLOYEE BENEFIT PLANS - Fair V
EMPLOYEE BENEFIT PLANS - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | $ 268.9 | $ 262.2 | $ 234.6 |
International | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 268.5 | 261.8 | 234.2 |
International | Pension Plans | Insurance contracts and other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 143.2 | 143.7 | $ 130.2 |
International | Pension Plans | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 268.9 | 262.2 | |
International | Pension Plans | Recurring | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 125.7 | 118.5 | |
International | Pension Plans | Recurring | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 143.2 | 143.7 | |
International | Pension Plans | Recurring | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 66.8 | 63 | |
International | Pension Plans | Recurring | Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 66.8 | 63 | |
International | Pension Plans | Recurring | Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Equity securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Corporate securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 57.9 | 54.6 | |
International | Pension Plans | Recurring | Corporate securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 57.9 | 54.6 | |
International | Pension Plans | Recurring | Corporate securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Corporate securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 1 | 0.9 | |
International | Pension Plans | Recurring | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 1 | 0.9 | |
International | Pension Plans | Recurring | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Insurance contracts and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 143.2 | 143.7 | |
International | Pension Plans | Recurring | Insurance contracts and other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Insurance contracts and other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Insurance contracts and other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | $ 143.2 | $ 143.7 |
EMPLOYEE BENEFIT PLANS - Reco_2
EMPLOYEE BENEFIT PLANS - Reconciliations of Level 3 Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets - beginning balance | $ 262.2 | $ 234.6 |
Return on plan assets | 3.5 | 18.8 |
Effect of exchange rates | 0.1 | 2.5 |
Fair value of plan assets - ending balance | 268.9 | 262.2 |
International | Pension Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets - beginning balance | 261.8 | 234.2 |
Return on plan assets | 3.5 | 18.8 |
Effect of exchange rates | 0.1 | 2.5 |
Fair value of plan assets - ending balance | 268.5 | 261.8 |
International | Pension Plans | 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 | 143.7 | 130.2 |
Plan assets from acquisitions | 0 | 0 |
Return on plan assets | (0.2) | 14 |
Purchases, sales and settlements, net | (2.5) | 3.9 |
Effect of exchange rates | 2.2 | (4.4) |
Fair value of plan assets - ending balance | $ 143.2 | $ 143.7 |
EMPLOYEE BENEFIT PLANS - Expect
EMPLOYEE BENEFIT PLANS - Expected Benefit Payments (Details) $ in Millions | Jun. 30, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 40.6 |
2021 | 29.3 |
2022 | 29.5 |
2023 | 30.5 |
2024 | 30.5 |
2025 - 2027 | 176.9 |
Other Post-Employment Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 2.4 |
2021 | 2.8 |
2022 | 3.1 |
2023 | 3.4 |
2024 | 3.5 |
2025 - 2027 | 18.9 |
United States | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 1.3 |
2021 | 1.3 |
2022 | 1.3 |
2023 | 1.3 |
2024 | 1.2 |
2025 - 2027 | 5.8 |
International | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 36.9 |
2021 | 25.2 |
2022 | 25.1 |
2023 | 25.8 |
2024 | 25.8 |
2025 - 2027 | $ 152.2 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) € in Millions | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2019EUR (€) | Jun. 30, 2018EUR (€) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Cash received during the period for settlement of interest rate swaps | $ 43,200,000 | $ 0 | $ 0 | |||
Accumulated other comprehensive (loss) income | (58,800,000) | 158,800,000 | ||||
Interest Rate Swap | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Cash received during the period for settlement of interest rate swaps | $ 43,200,000 | |||||
Foreign exchange forward contracts | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Accumulated cash flow hedges in AOCI, net of tax | (13,300,000) | 31,700,000 | ||||
Cash flow hedge to be reclassified during next 12 months | (1,700,000) | |||||
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 | ||||
Designated as Hedging Instrument | Foreign exchange forward contracts | Net investment hedge | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | € | € 3,699.3 | € 3,204.1 | ||||
Designated as Hedging Instrument | Foreign exchange forward contracts | Other Foreign Currency Translation Adjustments | Net investment hedge | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Accumulated other comprehensive (loss) income | $ 214,800,000 | $ 115,000,000 |
DERIVATIVE INSTRUMENTS - Gains
DERIVATIVE INSTRUMENTS - Gains and Losses Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flow hedging | Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | $ 0.9 | $ (0.3) | $ (0.8) |
Cash flow hedging | Interest rate swap contracts | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | (47.4) | 27 | 40.8 |
Net investment hedge | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | $ 99.8 | $ 138.7 | $ (21.2) |
DERIVATIVE INSTRUMENTS - Amount
DERIVATIVE INSTRUMENTS - Amount of Gains and Losses Reclassified from AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net revenues | $ 8,648.5 | $ 9,398 | $ 7,650.3 |
Cost of sales | 3,306.5 | 3,607.8 | 3,028.3 |
Interest income (expense), net | (275.7) | (265) | (218.6) |
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 | (0.8) | 2.4 |
Cost of sales | 0.2 | (0.7) | (2.2) |
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 | $ 12.4 | $ 6.9 | $ (9.3) |
DERIVATIVE INSTRUMENTS - Amou_2
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, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Selling, general and administrative | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Consolidated Statements of Operations Classification of Gain (Loss) Recognized in Operations | $ 0.1 | $ (0.8) | $ (0.1) |
Interest income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Consolidated Statements of Operations Classification of Gain (Loss) Recognized in Operations | 0.1 | 17.5 | (6.5) |
Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Consolidated Statements of Operations Classification of Gain (Loss) Recognized in Operations | $ 0 | $ 0.2 | $ (1.1) |
MANDATORILY REDEEMABLE FINANC_2
MANDATORILY REDEEMABLE FINANCIAL INTEREST (Details) - USD ($) $ in Millions | May 23, 2017 | Jul. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Schedule of Equity Method Investments [Line Items] | |||||
Purchase of additional noncontrolling interest | $ 0 | $ 0 | $ 9.8 | ||
U.A.E. JV | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of redeemable noncontrolling interest | 25.00% | ||||
Mandatorily redeemable financial instrument liability | $ 7.5 | 8.2 | |||
U.A.E. JV | Other Noncurrent Liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Mandatorily redeemable financial instrument liability | 6.1 | 6.7 | |||
U.A.E. JV | Accrued Expenses and Other Current Liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Mandatorily redeemable financial instrument liability | 1.4 | 1.5 | |||
U.A.E. JV | Primary Beneficiary | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint venture total assets | 37.2 | 33.2 | |||
Joint venture total liabilities | 26.7 | 20.2 | |||
South-east Asian Subsidiary | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of redeemable noncontrolling interest | 49.00% | ||||
Mandatorily redeemable financial instrument liability | $ 50.4 | $ 45.1 | |||
Purchase of additional noncontrolling interest | $ 45 | ||||
Subsequent Event | South-east Asian Subsidiary | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Purchase of additional noncontrolling interest | $ 45 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTERESTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2028 | Jun. 30, 2018 | Feb. 01, 2017 | |
Redeemable Noncontrolling Interest [Line Items] | ||||
Additional paid-in capital | $ (10,620.5) | $ (10,750.8) | ||
Redeemable noncontrolling interest balances | 451.8 | 661.3 | ||
Younique, LLC | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Redeemable noncontrolling interest balances | $ 365.3 | 597.7 | ||
United Arab Emirates subsidiary | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Percentage of redeemable noncontrolling interest | 25.00% | |||
Redeemable noncontrolling interest balances | $ 86.5 | $ 63.6 | ||
Call right percentage | 25.00% | |||
Foundation, LLC | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Percentage of redeemable noncontrolling interest | 40.70% | 40.60% | ||
Noncontrolling interest, increase in ownership percentage by parent | 0.10% | |||
Noncontrolling interest, period increase (decrease) | $ 1.6 | |||
Additional paid-in capital | $ 1.6 | |||
Percentage of shares acquired | 59.30% | 60.00% | ||
Foundation, LLC | Younique, LLC | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Percentage of shares acquired | 40.00% | |||
Scenario, Forecast | United Arab Emirates subsidiary | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Remaining call option percentage | 25.00% |
REDEEMABLE NONCONTROLLING INT_4
REDEEMABLE NONCONTROLLING INTERESTS - Redeemable Noncontrolling Interest Adjustments (Details) - United Arab Emirates subsidiary | 12 Months Ended |
Jun. 30, 2019 | |
Redeemable Noncontrolling Interest [Line Items] | |
Percentage of redeemable noncontrolling interest | 25.00% |
Earliest exercise date | Dec. 1, 2028 |
Redemption Assumptions, EBIT Average Period | 3 years |
Redemption Assumptions, Percentage Applied to EBIT Average | 600.00% |
EQUITY - Common Stock (Details)
EQUITY - Common Stock (Details) $ / shares in Units, $ in Millions | Apr. 30, 2019$ / sharesshares | Oct. 01, 2016shares | Sep. 30, 2016shares | Jun. 30, 2019USD ($)vote$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2017USD ($)shares | Sep. 29, 2016shares | Sep. 28, 2016shares |
Class of Stock [Line Items] | ||||||||
Exercise of employee stock options and restricted stock units and related tax benefits | $ | $ 5.2 | $ 22.6 | $ 22.8 | |||||
Number of shares purchased (in shares) | 150,000,000 | |||||||
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) | 754,200,000 | 750,700,000 | ||||||
Platinum | Common Class A | ||||||||
Class of Stock [Line Items] | ||||||||
Shares issued (shares) | 1,000,000 | 2,900,000 | 2,500,000 | |||||
Employee Stock Options, Restricted Stock Units (RSUs) And Employee Stock Ownership Program | Platinum | ||||||||
Class of Stock [Line Items] | ||||||||
Exercise of employee stock options and restricted stock units and related tax benefits | $ | $ 5.2 | $ 22.6 | $ 21.3 | |||||
Majority Shareholders | JAB Cosmetics B.V. | Common Class A | ||||||||
Class of Stock [Line Items] | ||||||||
Open market shares acquired by related party (in shares) | 10,800,000 | 14,900,000 | 2,600,000 | |||||
Conversion of common stock (shares) | 262,000,000 | |||||||
JAB Cosmetics B.V. | Common Class A | ||||||||
Class of Stock [Line Items] | ||||||||
Shares purchased, price per share (in dollars per share) | $ / shares | $ 11.65 | |||||||
Percentage of redeemable noncontrolling interest | 60.00% | |||||||
Galleria | ||||||||
Class of Stock [Line Items] | ||||||||
Issuance of stock for acquisition (shares) | 409,700,000 |
EQUITY - Preferred Stock (Detai
EQUITY - Preferred Stock (Details) $ / shares in Units, $ in Millions | Jun. 18, 2019shares | Jun. 14, 2019shares | Feb. 04, 2019shares | Jan. 15, 2019shares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 17, 2019shares | Jun. 13, 2019shares | Jan. 14, 2019shares | Jun. 30, 2018$ / sharesshares | May 18, 2018shares | May 17, 2018shares | Nov. 16, 2017shares | Mar. 27, 2017shares | Feb. 16, 2017shares |
Class of Stock [Line Items] | ||||||||||||||
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) | 9,400,000 | 5,000,000 | ||||||||||||
Amount of preferred stock | $ | $ 0.7 | |||||||||||||
Series A Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||||
Number of votes entitled to holders | 0 | |||||||||||||
Preferred stock, shares authorized (shares) | 2,900,000 | 3,300,000 | 2,900,000 | 3,300,000 | 6,300,000 | 6,300,000 | 6,500,000 | |||||||
Stock cancelled during period (in shares) | 400,000 | 3,000,000 | ||||||||||||
Preferred stock, shares outstanding (shares) | 1,500,000 | 200,000 | 1,000,000 | 300,000 | ||||||||||
Series A-1 Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||||
Number of votes entitled to holders | 0 | |||||||||||||
Preferred stock, shares authorized (shares) | 7,900,000 | 7,900,000 | 6,900,000 | |||||||||||
Stock authorized, designated and issued during period (in shares) | 1,000,000 | 6,900,000 | ||||||||||||
Preferred stock, shares outstanding (shares) | 1,000,000 | 6,900,000 | 7,900,000 | |||||||||||
Tranche One | Series A Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares outstanding (shares) | 1,000,000 | |||||||||||||
Tranche One | Series A-1 Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares outstanding (shares) | 4,100,000 | |||||||||||||
Tranche One | Stock Compensation Plan | Series A-1 Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting rights, percentage | 60.00% | |||||||||||||
Vesting period | 3 years | |||||||||||||
Tranche Two | Series A Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares outstanding (shares) | 300,000 | |||||||||||||
Tranche Two | Series A-1 Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares outstanding (shares) | 1,400,000 | |||||||||||||
Tranche Two | Stock Compensation Plan | Series A-1 Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting rights, percentage | 20.00% | |||||||||||||
Vesting period | 4 years | |||||||||||||
Tranche Three | Series A Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares outstanding (shares) | 200,000 | |||||||||||||
Tranche Three | Series A-1 Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares outstanding (shares) | 1,400,000 | |||||||||||||
Tranche Three | Stock Compensation Plan | Series A-1 Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Award vesting rights, percentage | 20.00% | |||||||||||||
Vesting period | 5 years | |||||||||||||
Tranche Four | Series A-1 Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares outstanding (shares) | 600,000 | |||||||||||||
Tranche Five | Series A-1 Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares outstanding (shares) | 200,000 | |||||||||||||
Tranche Six | Series A-1 Preferred Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Preferred stock, shares outstanding (shares) | 200,000 | |||||||||||||
Other Noncurrent Liabilities | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Amount of preferred stock | $ | $ 2 |
EQUITY - Dividends (Details)
EQUITY - Dividends (Details) - USD ($) $ / shares in Units, shares in Millions | Jun. 28, 2019 | May 08, 2019 | Mar. 15, 2019 | Feb. 08, 2019 | Dec. 14, 2018 | Nov. 07, 2018 | Sep. 14, 2018 | Aug. 21, 2018 | Jun. 14, 2018 | May 09, 2018 | Mar. 15, 2018 | Feb. 08, 2018 | Dec. 14, 2017 | Nov. 09, 2017 | Sep. 14, 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 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 06, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Sep. 01, 2017 | May 31, 2017 | Feb. 28, 2017 | Dec. 19, 2016 | Aug. 11, 2016 |
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||
Dividends declared (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.275 | $ 0.500 | $ 0.500 | $ 0.650 | ||||||||||||||||||||||||
Dividends, common stock | $ 347,500,000 | ||||||||||||||||||||||||||||||||||||||
Payments of ordinary dividends, common stock | $ 63,400,000 | $ 93,900,000 | $ 93,900,000 | $ 93,800,000 | $ 93,800,000 | $ 93,800,000 | $ 93,700,000 | $ 93,600,000 | $ 93,400,000 | $ 93,400,000 | $ 93,400,000 | $ 92,400,000 | 345,000,000 | $ 374,900,000 | $ 372,600,000 | ||||||||||||||||||||||||
Dividends payable | 4,300,000 | 3,300,000 | 2,800,000 | $ 1,100,000 | $ 1,200,000 | $ 1,200,000 | $ 800,000 | $ 800,000 | $ 800,000 | $ 900,000 | $ 800,000 | $ 600,000 | $ 600,000 | $ 600,000 | $ 1,000,000 | ||||||||||||||||||||||||
Dividends, common stock, no longer expected to vest, forfeitures | 1,800,000 | ||||||||||||||||||||||||||||||||||||||
Dividends, share-based compensation, cash | 1,200,000 | ||||||||||||||||||||||||||||||||||||||
Dividends, cash | $ 346,200,000 | ||||||||||||||||||||||||||||||||||||||
Common Class A | |||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||
Dividend Reinvestment Program, shares registered for purchase (in shares) | 9.3 | ||||||||||||||||||||||||||||||||||||||
Dividend Reinvestment Program, option to receive dividend, percentage in common stock | 50.00% | ||||||||||||||||||||||||||||||||||||||
Transaction Agreement with P&G | P&G Beauty Brands | Maximum | P&G | |||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||
Dividends declared (in dollars per share) | $ 0.25 | ||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | Restricted Stock Units | |||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||
Dividends payable | $ 2,200,000 | 800,000 | 1,000,000 | ||||||||||||||||||||||||||||||||||||
Other Noncurrent Liabilities | Restricted Stock Units | |||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||
Dividends payable | $ 5,200,000 | $ 5,200,000 | $ 3,200,000 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 14, 2019 | Feb. 04, 2019 | Nov. 16, 2017 | Mar. 27, 2017 | Feb. 16, 2017 | |
Class of Stock [Line Items] | ||||||||
Number of Shares Awarded at Grant Date (millions of shares) | 9.4 | 5 | ||||||
Number of Shares Outstanding (millions of shares) | 9.4 | 5 | ||||||
Share-based compensation expense | $ 15.2 | $ 33.4 | $ 29 | |||||
Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Number of Shares Awarded at Grant Date (millions of shares) | 1 | 1 | 0.5 | |||||
Number of Shares Outstanding (millions of shares) | 1.5 | 0.2 | 1 | 0.3 | ||||
Hurdle Price per Share (in dollars per share) | $ 19.85 | $ 22.39 | $ 22.66 | |||||
Series A-1 Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Number of Shares Awarded at Grant Date (millions of shares) | 1 | 6.9 | ||||||
Number of Shares Outstanding (millions of shares) | 7.9 | 1 | 6.9 | |||||
Hurdle Price per Share (in dollars per share) | $ 14.48 | $ 8.75 | ||||||
Selling, general and administrative | ||||||||
Class of Stock [Line Items] | ||||||||
Share-based compensation expense | $ 33.5 | 33.4 | 29 | |||||
Selling, general and administrative | Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Share-based compensation expense | $ (0.1) | $ (1.7) | $ 3.8 |
EQUITY - Schedule of Declared D
EQUITY - Schedule of Declared Dividends (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jun. 28, 2019 | Jun. 06, 2019 | May 08, 2019 | Mar. 15, 2019 | Feb. 28, 2019 | Feb. 08, 2019 | Dec. 14, 2018 | Nov. 30, 2018 | Nov. 07, 2018 | Sep. 14, 2018 | Aug. 31, 2018 | Aug. 21, 2018 | 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 31, 2017 | May 10, 2017 | Mar. 10, 2017 | Feb. 28, 2017 | Feb. 09, 2017 | Dec. 28, 2016 | Dec. 19, 2016 | Dec. 09, 2016 | Aug. 19, 2016 | Aug. 11, 2016 | Aug. 01, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||
Dividends Per Share (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.275 | $ 0.500 | $ 0.500 | $ 0.650 | ||||||||||||||||||||||||
Dividend Value | $ 95.1 | $ 95.1 | $ 95.1 | $ 94.6 | $ 94.6 | $ 94.6 | $ 94.6 | $ 94.4 | $ 94 | $ 94 | $ 94 | $ 93.4 | $ 379.9 | $ 378.2 | $ 375.4 | ||||||||||||||||||||||||
Dividends Settled in Cash | $ 63.4 | $ 93.9 | $ 93.9 | $ 93.8 | $ 93.8 | $ 93.8 | $ 93.7 | $ 93.6 | $ 93.4 | $ 93.4 | $ 93.4 | $ 92.4 | 345 | 374.9 | 372.6 | ||||||||||||||||||||||||
Dividends Settled in Stock | 30.6 | 30.6 | |||||||||||||||||||||||||||||||||||||
Non-cash Common Stock dividend | $ 1.1 | $ 1.2 | $ 1.2 | $ 0.8 | $ 0.8 | $ 0.8 | $ 0.9 | $ 0.8 | $ 0.6 | $ 0.6 | $ 0.6 | $ 1 | 4.3 | $ 3.3 | $ 2.8 | ||||||||||||||||||||||||
Common Class A | |||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||
Dividends Settled in Stock | $ 30.6 | $ (30.6) | |||||||||||||||||||||||||||||||||||||
Dividends Settled in Stock (in shares) | 2.4 |
EQUITY - Accumulated Other Comp
EQUITY - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 01, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 8,855.2 | $ 9,317.7 | $ 367.1 | |
Total other comprehensive (loss) income, net of tax | (217.5) | 148.4 | 244 | |
Ending balance | 4,593.4 | 8,855.2 | 9,317.7 | |
Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 158.8 | 4.4 | (239.7) | |
Other comprehensive income before reclassifications | (202.6) | 155.2 | ||
Less: Net amounts reclassified from AOCI/(L) | (15) | (7.3) | ||
Total other comprehensive (loss) income, net of tax | (217.6) | 147.9 | 244.1 | |
Ending balance | (58.8) | 158.8 | 4.4 | |
(Losses) Gains on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 31.7 | 12.6 | ||
Other comprehensive income before reclassifications | (35.5) | 19.2 | ||
Less: Net amounts reclassified from AOCI/(L) | (9.5) | (4) | ||
Total other comprehensive (loss) income, net of tax | (45) | 15.2 | ||
Ending balance | (13.3) | 31.7 | 12.6 | |
(Losses) Gains on Net Investment Hedge | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 115 | (23.7) | ||
Other comprehensive income before reclassifications | 99.8 | 138.7 | ||
Less: Net amounts reclassified from AOCI/(L) | 0 | 0 | ||
Total other comprehensive (loss) income, net of tax | 99.8 | 138.7 | ||
Ending balance | 214.8 | 115 | (23.7) | |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (44.3) | (20.8) | ||
Other comprehensive income before reclassifications | (213.1) | (23.5) | ||
Less: Net amounts reclassified from AOCI/(L) | 0 | 0 | ||
Total other comprehensive (loss) income, net of tax | (213.1) | (23.5) | ||
Ending balance | (257.4) | (44.3) | (20.8) | |
Pension and Other Post-Employment Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 56.4 | 36.3 | ||
Other comprehensive income before reclassifications | (53.8) | 20.8 | ||
Less: Net amounts reclassified from AOCI/(L) | (5.5) | (3.3) | ||
Total other comprehensive (loss) income, net of tax | (59.3) | 17.5 | ||
Ending balance | (2.9) | 56.4 | $ 36.3 | |
Amortization of actuarial losses | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Less: Net amounts reclassified from AOCI/(L) | 7 | 5.2 | ||
Amortization of actuarial gains (losses), tax | $ 1.5 | $ 1.9 | ||
Accounting Standards Update 2018-02 | Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Adjustment due to the adoption of ASU 2018-02 | $ 6.5 | |||
Accounting Standards Update 2018-02 | (Losses) Gains on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Adjustment due to the adoption of ASU 2018-02 | 3.9 | |||
Accounting Standards Update 2018-02 | (Losses) Gains on Net Investment Hedge | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Adjustment due to the adoption of ASU 2018-02 | 0 | |||
Accounting Standards Update 2018-02 | Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Adjustment due to the adoption of ASU 2018-02 | 0 | |||
Accounting Standards Update 2018-02 | Pension and Other Post-Employment Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Adjustment due to the adoption of ASU 2018-02 | $ 2.6 |
EQUITY - Treasury Stock - Share
EQUITY - Treasury Stock - Share Repurchase Program (Details) - Common Class A - USD ($) | Jun. 30, 2019 | Feb. 03, 2016 |
Class of Stock [Line Items] | ||
Amount remaining under current repurchase program | $ 396,800,000 | |
Incremental Repurchase Program | ||
Class of Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 500,000,000 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||
Cost of shares repurchased (in millions) | $ 36.3 | ||
Common Class A | |||
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares repurchased (in millions) | 0 | 0 | 1.4 |
Cost of shares repurchased (in millions) | $ 0 | $ 0 | $ 36.3 |
Common Class A | Minimum | |||
Equity, Class of Treasury Stock [Line Items] | |||
Fair value of shares repurchased per share | $ 0 | $ 0 | $ 25.35 |
Common Class A | Maximum | |||
Equity, Class of Treasury Stock [Line Items] | |||
Fair value of shares repurchased per share | $ 0 | $ 0 | $ 27.40 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 75,000,000 | ||
Number of shares available for grant (in shares) | 55,200,000 | ||
Share-based compensation expense | $ 15,200,000 | $ 33,400,000 | $ 29,000,000 |
Allocated share-based compensation income | 18,300,000 | 0 | 0 |
Series A and Series A-1 Preferred Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized share-based compensation expense | $ 9,100,000 | ||
Weighted-average period for unrecognized share-based compensation | 4 years 5 months 8 days | ||
RSUs and Other Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized share-based compensation expense | $ 80,900,000 | ||
Weighted-average period for unrecognized share-based compensation | 3 years 6 months 7 days | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized share-based compensation expense | $ 50,500,000 | ||
Weighted-average period for unrecognized share-based compensation | 4 years 3 months 3 days | ||
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 33,500,000 | $ 33,400,000 | $ 29,000,000 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS - Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 15.2 | $ 33.4 | $ 29 |
Equity Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 16.9 | 31.6 | 20 |
Liability Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | (2.1) | (1) | 4.6 |
Fringe | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 0.4 | $ 2.8 | $ 4.4 |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS - Nonqualified Stock Options (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 19.4 | 5.9 | 9.3 |
Outstanding, beginning balance (in shares) | 27.9 | 13.4 | |
Share-based compensation expense | $ 15.2 | $ 33.4 | $ 29 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding options grant price (dollars per share) | $ 8.25 | ||
Exercisable options grant price (dollars per share) | 8.25 | ||
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 | ||
Nonqualified Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 19.4 | ||
Vesting period | 5 years | ||
Nonqualified stock options contractual life | 10 years | ||
Share-based compensation expense | $ 5.2 | $ 11.9 | $ 9.1 |
Nonqualified Options | Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 14.5 | ||
Nonqualified Options | Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 13.4 | ||
Nonqualified Options | Tranche Two, Subtranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Award vesting rights, percentage | 60.00% | ||
Nonqualified Options | Tranche Two, Subtranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Award vesting rights, percentage | 20.00% | ||
Nonqualified Options | Tranche Two, Subtranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Award vesting rights, percentage | 20.00% |
SHARE-BASED COMPENSATION PLAN_5
SHARE-BASED COMPENSATION PLANS - Black-Scholes Valuation Assumptions (Details) - Nonqualified Options | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 6 years 6 months | 7 years 6 months | 7 years 6 months |
Risk-free interest rate | 2.56% | 2.19% | 1.60% |
Expected volatility | 40.73% | 36.03% | 36.74% |
Expected dividend yield | 4.64% | 2.98% | 1.62% |
SHARE-BASED COMPENSATION PLAN_6
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, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Shares | |||
Outstanding, beginning balance (in shares) | 13.4 | ||
Granted (in shares) | 19.4 | 5.9 | 9.3 |
Exercised (in shares) | (0.6) | ||
Forfeited (in shares) | (4.3) | ||
Outstanding, ending balance (in shares) | 27.9 | 13.4 | |
Vested and expected to vest (in shares) | 18.9 | ||
Exercisable (in shares) | 1.1 | ||
Weighted Average Exercise Price | |||
Outstanding, weighted average exercise price, beginning balance (in dollars per share) | $ 16.75 | ||
Granted (in dollars per share) | 10.89 | ||
Exercised (in dollars per share) | 9.14 | ||
Forfeited (in dollars per share) | 16.42 | ||
Outstanding, weighted average exercise price, ending balance (in dollars per share) | 12.89 | $ 16.75 | |
Vested and expected to vest (in dollars per share) | 12.85 | ||
Exercisable (in dollars per share) | $ 10.04 | ||
Aggregate Intrinsic Value and Weighted Average Remaining Contractual Term | |||
Vested and expected to vest, aggregate intrinsic value | $ 10.4 | ||
Exercisable, aggregate intrinsic value | $ 3.5 | ||
Vested and expected to vest, weighted average remaining contractual term | 8 years 8 months 1 day | ||
Exercisable, weighted average remaining contractual term | 1 year 7 months 17 days |
SHARE-BASED COMPENSATION PLAN_7
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, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted-average grant date fair value of stock options (in dollars per share) | $ 2.87 | $ 4.87 | $ 6.34 |
Intrinsic value of options exercised | $ 11.5 | $ 32.2 | $ 26.3 |
SHARE-BASED COMPENSATION PLAN_8
SHARE-BASED COMPENSATION PLANS - Non-vested Nonqualified Stock Options (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Number of Shares | |||
Granted (in shares) | 19.4 | 5.9 | 9.3 |
Weighted Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 2.87 | $ 4.87 | $ 6.34 |
Nonqualified Options | |||
Number of Shares | |||
Non-vested, beginning balance (in shares) | 11.7 | ||
Granted (in shares) | 19.4 | ||
Forfeited (in shares) | (4.3) | ||
Non-vested, ending balance (in shares) | 26.8 | 11.7 | |
Weighted Average Grant Date Fair Value | |||
Non-vested, beginning balance (in dollars per share) | $ 5.60 | ||
Granted (in dollars per share) | 2.87 | ||
Forfeited (in dollars per share) | 5.03 | ||
Non-vested, ending balance (in dollars per share) | $ 3.72 | $ 5.60 |
SHARE-BASED COMPENSATION PLAN_9
SHARE-BASED COMPENSATION PLANS - Executive Ownership Programs (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
EOP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares purchased during period (in shares) | 1.4 | 2 | 0.8 |
SHARE-BASED COMPENSATION PLA_10
SHARE-BASED COMPENSATION PLANS - Series A and Series A-1 Preferred Stock (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Series A Preferred Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ (4.4) | $ 0.1 | $ 4.4 |
Series A and Series A-1 Preferred Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonqualified stock options contractual life | 7 years |
SHARE-BASED COMPENSATION PLA_11
SHARE-BASED COMPENSATION PLANS - Significant Assumptions Used in Binomial Lattice Model (Details) (Details) - Series A and Series A-1 Preferred Stock | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life, in years | 4 years 11 months 19 days | 4 years 6 months 7 days | 5 years 10 months 9 days |
Expected volatility | 42.53% | 35.00% | 30.00% |
Risk-free rate of return | 2.45% | 2.70% | 1.99% |
Dividend yield on Class A Common Stock | 6.19% | 3.55% | 2.67% |
Yield on cash | 4.70% |
SHARE-BASED COMPENSATION PLA_12
SHARE-BASED COMPENSATION PLANS - Outstanding Preferred Stock Activity (Details) - Series A and Series A-1 Preferred Stock $ / shares in Units, shares in Millions | 12 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Shares | |
Outstanding, beginning of period (in shares) | shares | 5 |
Granted (in shares) | shares | 7.9 |
Forfeited (in shares) | shares | (3.5) |
Outstanding, end of period (in shares) | shares | 9.4 |
Vested and expected to vest (in shares) | shares | 8.9 |
Weighted Average Exercise Price | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 23.62 |
Granted (in dollars per share) | $ / shares | 9.46 |
Forfeited (in dollars per share) | $ / shares | 24.28 |
Outstanding, end of period (in dollars per share) | $ / shares | 11.47 |
Vested and expected to vest (in dollars per share) | $ / shares | $ 10.91 |
Aggregate Intrinsic Value and Weighted Average Remaining Contractual Term | |
Vested and expected to vest, aggregate intrinsic value | $ | $ 22.20 |
Vested and expected to vest, weighted average remaining contractual term | 6 years 3 months |
SHARE-BASED COMPENSATION PLA_13
SHARE-BASED COMPENSATION PLANS - Non-Vested Shares of Series A Preferred Stock (Details) - Series A and Series A-1 Preferred Stock shares in Millions | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 4 |
Granted (in shares) | shares | 7.9 |
Forfeited (in shares) | shares | (3.5) |
Outstanding, ending balance (in shares) | shares | 8.4 |
Weighted Average Grant Date Fair Value | |
Outstanding and nonvested, beginning balance (in dollars per share) | $ / shares | $ 4.99 |
Granted (in dollars per share) | $ / shares | 1.24 |
Forfeited (in dollars per share) | $ / shares | 5.16 |
Outstanding and nonvested, ending balance (in dollars per share) | $ / shares | $ 1.39 |
SHARE-BASED COMPENSATION PLA_14
SHARE-BASED COMPENSATION PLANS - Restricted Share Units (Details) shares in Millions, $ in Millions | Oct. 02, 2018 | Oct. 01, 2018employee | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, number of employees with outstanding awards | employee | 560 | ||||
Share-based compensation expense | $ | $ 15.2 | $ 33.4 | $ 29 | ||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Granted (in shares) | shares | 7 | ||||
Share-based compensation expense | $ | $ 14.4 | 21.4 | 15.4 | ||
Total intrinsic value of restricted shares vested and settled | $ | $ 11.1 | $ 12.5 | $ 3.5 | ||
Restricted Stock Units | Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Award vesting rights, percentage | 60.00% | ||||
Restricted Stock Units | Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Award vesting rights, percentage | 20.00% | ||||
Restricted Stock Units | Tranche Three | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Award vesting rights, percentage | 20.00% | ||||
Omnibus Long-Term Incentive Plan | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | shares | 6.9 | 3.7 | |||
2007 Stock Plan for Directors | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | shares | 0.1 | 0.1 |
SHARE-BASED COMPENSATION PLA_15
SHARE-BASED COMPENSATION PLANS - Restricted Share Units Activity (Details) - Restricted Stock Units shares in Millions, $ in Millions | 12 Months Ended |
Jun. 30, 2019USD ($)shares | |
Shares | |
Outstanding, beginning balance (in shares) | 7.5 |
Granted (in shares) | 7 |
Settled (in shares) | (0.6) |
Cancelled (in shares) | (3.4) |
Outstanding, ending balance (in shares) | 10.5 |
Vested and expected to vest (in shares) | 8.6 |
Vested and expected to vest, aggregate intrinsic value | $ | $ 114.4 |
Vested and expected to vest, weighted average remaining contractual term | 2 years 1 month 28 days |
SHARE-BASED COMPENSATION PLA_16
SHARE-BASED COMPENSATION PLANS - Outstanding and Non-vested Restricted Share Units Activity (Details) - Restricted Stock Units shares in Millions | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 7.2 |
Granted (in shares) | shares | 7 |
Vested (in shares) | shares | (0.6) |
Cancelled (in shares) | shares | (3.4) |
Outstanding, ending balance (in shares) | shares | 10.2 |
Weighted Average Grant Date Fair Value | |
Outstanding and nonvested, beginning balance (in dollars per share) | $ / shares | $ 19.57 |
Granted (in dollars per share) | $ / shares | 11.38 |
Vested (in dollars per share) | $ / shares | 17.49 |
Cancelled (in dollars per share) | $ / shares | 17.46 |
Outstanding and nonvested, ending balance (in dollars per share) | $ / shares | $ 14.79 |
SHARE-BASED COMPENSATION PLA_17
SHARE-BASED COMPENSATION PLANS - Phantom Units (Details) - USD ($) $ in Millions | Jul. 24, 2015 | Jul. 21, 2015 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 15.2 | $ 33.4 | $ 29 | |||
Former CEO | Phantom Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 300,000 | |||||
Phantom units value | $ 8.1 | |||||
Share-based compensation expense | $ 8 | |||||
Former CEO | Phantom Units | Common Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Phantom units value | $ 8 | |||||
Share equivalent of Class A Common Stock (in shares) | 1 |
NET LOSS ATTRIBUTABLE TO COTY_3
NET LOSS ATTRIBUTABLE TO COTY INC. PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |||
Net loss attributable to Coty Inc. | $ (3,784.2) | $ (168.8) | $ (422.2) |
Weighted-average common shares outstanding: | |||
Weighted-average common shares outstanding—Basic (in shares) | 751.2 | 749.7 | 642.8 |
Effect of dilutive stock options and Series A Preferred Stock (in shares) | 0 | 0 | 0 |
Effect of restricted stock and RSUs (in shares) | 0 | 0 | 0 |
Weighted-average common shares outstanding—Diluted (in shares) | 751.2 | 749.7 | 642.8 |
Net loss attributable to Coty Inc. per common share: | |||
Basic (dollars per shares) | $ (5.04) | $ (0.23) | $ (0.66) |
Diluted (dollars per shares) | $ (5.04) | $ (0.23) | $ (0.66) |
LEGAL CONTINGENCIES - Narrative
LEGAL CONTINGENCIES - Narrative (Details) R$ in Millions, $ in Millions | Jun. 30, 2019USD ($) | Jun. 30, 2019BRL (R$) | May 06, 2019lawsuit | Apr. 09, 2019lawsuit |
Brazilian Tax Assessments | ||||
Loss Contingencies [Line Items] | ||||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 65.2 | R$ 249.0 | ||
Pending Litigation | Shareholder Class Action Lawsuits | ||||
Loss Contingencies [Line Items] | ||||
Number of purported lawsuits | 1 | 2 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 28, 2019 | May 08, 2019 | Feb. 08, 2019 | Nov. 07, 2018 | Aug. 21, 2018 | May 09, 2018 | Feb. 08, 2018 | Nov. 09, 2017 | Aug. 22, 2017 | May 10, 2017 | Feb. 09, 2017 | Dec. 09, 2016 | Aug. 01, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 01, 2019 |
Subsequent Event [Line Items] | |||||||||||||||||
Dividends declared (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.275 | $ 0.500 | $ 0.500 | $ 0.650 | ||
Subsequent Event | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Option to receive dividend, percentage in cash | 50.00% | ||||||||||||||||
Option to receive dividend, percentage in common stock | 50.00% | ||||||||||||||||
Common Stock | Subsequent Event | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Dividends declared (in dollars per share) | $ 0.125 | ||||||||||||||||
Employee Termination Benefits, and Other Business Realignment Costs | Turnaround Plan | Subsequent Event | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Restructuring and related cost, expected cost | $ 600 | ||||||||||||||||
Restructuring and Other Business Realignment Costs | Turnaround Plan | Subsequent Event | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Restructuring and related cost, expected cost | $ 160 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 81.8 | $ 58.5 | $ 35.2 |
Balance Received through Acquisition | 0 | 0 | 0 |
Charged to Costs and Expenses | 11.6 | 16.3 | 32.8 |
Deductions | (45.3) | 7 | (9.5) |
Balance at End of Period | 48.1 | 81.8 | 58.5 |
Allowance for customer returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 81.1 | 67.3 | 57.3 |
Balance Received through Acquisition | 0 | 10.1 | 11.4 |
Charged to Costs and Expenses | 161.2 | 169.8 | 165.7 |
Deductions | (186) | (166.1) | (167.1) |
Balance at End of Period | 56.3 | 81.1 | 67.3 |
Deferred tax valuation allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 104.6 | 60.3 | 179.2 |
Balance Received through Acquisition | 0 | 0 | 0 |
Charged to Costs and Expenses | 4.6 | 54.7 | 9.2 |
Deductions | (41.5) | (10.4) | (128.1) |
Balance at End of Period | $ 67.7 | $ 104.6 | $ 60.3 |
Uncategorized Items - coty-0630
Label | Element | Value |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 8,724,400,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 9,326,000,000 |
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests | us-gaap_TemporaryEquityCarryingAmountIncludingPortionAttributableToNoncontrollingInterests | 551,100,000 |
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests | us-gaap_TemporaryEquityCarryingAmountIncludingPortionAttributableToNoncontrollingInterests | 661,300,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 11,203,200,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 10,750,800,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 158,800,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 4,400,000 |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 3,000,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 5,500,000 |
Treasury Stock [Member] | ||
Shares, Outstanding | us-gaap_SharesOutstanding | 65,000,000 |
Shares, Outstanding | us-gaap_SharesOutstanding | 65,000,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (1,441,800,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (1,441,800,000) |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (757,000,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (450,900,000) |
Preferred Stock [Member] | ||
Shares, Outstanding | us-gaap_SharesOutstanding | 4,200,000 |
Shares, Outstanding | us-gaap_SharesOutstanding | 5,000,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 0 |
Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 9,323,000,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 8,718,900,000 |
Common Class A [Member] | Common Stock [Member] | ||
Shares, Outstanding | us-gaap_SharesOutstanding | 815,800,000 |
Shares, Outstanding | us-gaap_SharesOutstanding | 812,900,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 8,100,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 8,100,000 |
Accounting Standards Update 2016-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 8,300,000 |
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 8,300,000 |
Accounting Standards Update 2016-09 [Member] | Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 8,300,000 |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (6,500,000) |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (18,200,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (18,200,000) |
Accounting Standards Update 2014-09 [Member] | Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (18,200,000) |
Accounting Standards Update 2016-16 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (112,600,000) |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (112,600,000) |
Accounting Standards Update 2016-16 [Member] | Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (112,600,000) |