Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 31, 2019 | Jan. 29, 2020 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 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 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Class A Common Stock, $0.01 par value | |
Trading Symbol | COTY | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding (in shares) | 760,550,840 | |
Current Fiscal Year End Date | --06-20 | |
Amendment Flag | false | |
Entity Central Index Key | 0001024305 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
Net revenues | $ 2,345 | $ 2,511.2 | $ 4,287.8 | $ 4,542.5 |
Cost of sales | 859.3 | 956.7 | 1,597.7 | 1,765.8 |
Gross profit | 1,485.7 | 1,554.5 | 2,690.1 | 2,776.7 |
Selling, general and administrative expenses | 1,202.6 | 1,284 | 2,275.2 | 2,406.3 |
Gain on sale of business (See Note 5) | 0 | 0 | (84.5) | 0 |
Amortization expense | 76.8 | 88.5 | 161.1 | 181 |
Restructuring costs | 134.9 | 21.5 | 140.9 | 37 |
Acquisition and divestiture-related costs | 36 | 0 | 36 | 0 |
Asset impairment charges | 0 | 965.1 | 0 | 977.7 |
Operating income (loss) | 35.4 | (804.6) | 161.4 | (825.3) |
Interest expense, net | 71.1 | 68.3 | 148.5 | 132.4 |
Other expense, net | 1.3 | 4.8 | 3.5 | 7.5 |
(Loss) income before income taxes | (37) | (877.7) | 9.4 | (965.2) |
(Benefit) provision for income taxes | (20.6) | 78.3 | (30.5) | 0.9 |
Net (loss) income | (16.4) | (956) | 39.9 | (966.1) |
Net income attributable to noncontrolling interests | 0.5 | 0.6 | 3.3 | 1.8 |
Net income attributable to redeemable noncontrolling interests | 4.2 | 4 | 5.4 | 4.8 |
Net (loss) income attributable to Coty Inc. | $ (21.1) | $ (960.6) | $ 31.2 | $ (972.7) |
Net (loss) income attributable to Coty Inc. per common share: | ||||
Basic (in dollars per share) | $ (0.03) | $ (1.28) | $ 0.04 | $ (1.30) |
Diluted (in dollars per share) | $ (0.03) | $ (1.28) | $ 0.04 | $ (1.30) |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 758.1 | 751.1 | 756.1 | 751 |
Diluted (in shares) | 758.1 | 751.1 | 761.2 | 751 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (16.4) | $ (956) | $ 39.9 | $ (966.1) |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | 102 | (60) | (20.6) | (108.9) |
Net unrealized derivative (loss) gain on cash flow hedges, net of taxes of $(1.8) and $5.8, and $(1.6) and $5.5 during the three and six months ended, respectively | 6.3 | 5.1 | ||
Net unrealized derivative (loss) gain on cash flow hedges, net of taxes of $(1.8) and $5.8, and $(1.6) and $5.5 during the three and six months ended, respectively | (18.7) | (17.7) | ||
Pension and other post-employment benefits adjustment, net of tax of $0.0 and $(1.9), and $0.0 and $(1.4) during the three and six months ended, respectively | (2.3) | 1.5 | (3.1) | 1.6 |
Total other comprehensive income (loss), net of tax | 106 | (77.2) | (18.6) | (125) |
Comprehensive income (loss) | 89.6 | (1,033.2) | 21.3 | (1,091.1) |
Comprehensive income (loss) attributable to noncontrolling interests: | ||||
Net income | 0.5 | 0.6 | 3.3 | 1.8 |
Foreign currency translation adjustment | 0.1 | 0 | 0.1 | 0.2 |
Total comprehensive income attributable to noncontrolling interests | 0.6 | 0.6 | 3.4 | 2 |
Comprehensive income attributable to redeemable noncontrolling interests: | ||||
Comprehensive income attributable to redeemable noncontrolling interests | 4.2 | 4 | 5.4 | 4.8 |
Net income attributable to redeemable noncontrolling interests | 4.2 | 4 | 5.4 | 4.8 |
Comprehensive income (loss) attributable to Coty Inc. | $ 84.8 | $ (1,037.8) | $ 12.5 | $ (1,097.9) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in derivative gains on cash flow hedges, tax expense (benefit) | $ (1.8) | $ (1.6) | ||
Change in derivative gains on cash flow hedges, tax expense (benefit) | $ 5.8 | $ 5.5 | ||
Pension and other post-employment benefits (losses), tax expense (benefit) | $ 0 | $ (1.9) | $ 0 | $ (1.4) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 288.8 | $ 340.4 |
Restricted cash | 50.7 | 40 |
Trade receivables—less allowances of $69.9 and $48.1, respectively | 1,110 | 1,161.2 |
Inventories | 1,015.8 | 1,153.3 |
Prepaid expenses and other current assets | 558 | 577.8 |
Total current assets | 3,023.3 | 3,272.7 |
Property and equipment, net | 1,461.7 | 1,600.6 |
Goodwill | 5,016 | 5,073.8 |
Other intangible assets, net | 6,992.5 | 7,422.3 |
Operating lease right-of-use assets (See Note 3) | 505.7 | |
Deferred income taxes | 189.6 | 146.3 |
Other noncurrent assets | 172.1 | 149.7 |
TOTAL ASSETS | 17,360.9 | 17,665.4 |
Current liabilities: | ||
Accounts payable | 1,574.8 | 1,732.7 |
Accrued expenses and other current liabilities | 1,585.2 | 1,483.7 |
Short-Term Debt And Long-term Debt, Current Maturities | 188 | 193.8 |
Current operating lease liabilities (See Note 3) | 109.3 | |
Income and other taxes payable | 56.3 | 66.9 |
Total current liabilities | 3,513.6 | 3,477.1 |
Long-term debt, net | 7,233.8 | 7,469.9 |
Long-term operating lease liabilities (See Note 3) | 454.2 | |
Pension and other post-employment benefits | 583.4 | 593.5 |
Deferred income taxes | 645.3 | 652.5 |
Other noncurrent liabilities | 350.4 | 427.2 |
Total liabilities | 12,780.7 | 12,620.2 |
COMMITMENTS AND CONTINGENCIES (See Note 18) | ||
REDEEMABLE NONCONTROLLING INTERESTS | 98.6 | 451.8 |
EQUITY: | ||
Preferred Stock, $0.01 par value; 20.0 shares authorized, 9.4 and 9.4 issued and outstanding, respectively, at December 31, 2019 and June 30, 2019 | 0.1 | 0.1 |
Class A Common Stock, $0.01 par value; 1,000.0 shares authorized, 826.0 and 819.2 issued and 760.5 and 754.2 outstanding, respectively, at December 31, 2019 and June 30, 2019 | 8.3 | 8.1 |
Additional paid-in capital | 10,497.8 | 10,620.5 |
Accumulated deficit | (4,510.7) | (4,541.2) |
Accumulated other comprehensive income | (77.5) | (58.8) |
Treasury stock—at cost, shares: 65.5 and 65.0, respectively, at December 31, 2019 and June 30, 2019 | (1,446.3) | (1,441.8) |
Total Coty Inc. stockholders’ equity | 4,471.7 | 4,586.9 |
Noncontrolling interests | 9.9 | 6.5 |
Total equity | 4,481.6 | 4,593.4 |
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | $ 17,360.9 | $ 17,665.4 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 69.9 | $ 48.1 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 9,400,000 | 9,400,000 |
Preferred stock, shares outstanding (in shares) | 9,400,000 | 9,400,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 826,000,000 | 819,200,000 |
Common stock, shares outstanding (in shares) | 760,500,000 | 754,200,000 |
Treasury stock, at cost, shares (in shares) | 65,500,000 | 65,000,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - USD ($) $ in Millions | Total | Class A Common Stock | Preferred Stock | Common StockClass A Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalClass A Common Stock | (Accumulated Deficit) | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Total Coty Inc. Stockholders’ Equity | Total Coty Inc. Stockholders’ EquityClass A Common Stock | Noncontrolling Interests |
Balance, beginning of period (in shares) at Jun. 30, 2018 | 5,000,000 | 815,800,000 | 65,000,000 | |||||||||
Balance, beginning of period at Jun. 30, 2018 | $ 8,855.2 | $ 0 | $ 8.1 | $ 10,750.8 | $ (626.2) | $ 158.8 | $ (1,441.8) | $ 8,849.7 | $ 5.5 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of employee stock options and restricted stock units | 0.7 | 0.7 | 0.7 | |||||||||
Share-based compensation expense | 6.4 | 6.4 | 6.4 | |||||||||
Dividends, Common Stock | (94) | (94) | (94) | |||||||||
Net (loss) income | (10.9) | (12.1) | (12.1) | 1.2 | ||||||||
Other comprehensive income (loss) | (47.8) | (48) | (48) | 0.2 | ||||||||
Distribution to noncontrolling interests, net | (1.3) | (1.3) | ||||||||||
Reclassifications of Temporary to Permanent Equity | (1.6) | (1.6) | (1.6) | |||||||||
Adjustment of redeemable noncontrolling interests to the higher of its redemption value or carrying value | 37.2 | 37.2 | 37.2 | |||||||||
Balance, end of period (in shares) at Sep. 30, 2018 | 5,000,000 | 815,800,000 | 65,000,000 | |||||||||
Balance, end of period at Sep. 30, 2018 | 8,613.1 | $ 0 | $ 8.1 | 10,699.5 | (769.1) | 110.8 | $ (1,441.8) | 8,607.5 | 5.6 | |||
Balance, beginning of period at Jun. 30, 2018 | 661.3 | |||||||||||
Redeemable Noncontrolling Interests | ||||||||||||
Net income (loss) | 0.8 | |||||||||||
Distribution to noncontrolling interests, net | (4.3) | |||||||||||
Additional redeemable noncontrolling interests due to employee grants (See Note 17) | 1.6 | |||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (37.2) | |||||||||||
Balance, end of period at Sep. 30, 2018 | 622.2 | |||||||||||
Balance, beginning of period (in shares) at Jun. 30, 2018 | 5,000,000 | 815,800,000 | 65,000,000 | |||||||||
Balance, beginning of period at Jun. 30, 2018 | 8,855.2 | $ 0 | $ 8.1 | 10,750.8 | (626.2) | 158.8 | $ (1,441.8) | 8,849.7 | 5.5 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Other comprehensive income (loss) | (125) | |||||||||||
Balance, end of period (in shares) at Dec. 31, 2018 | 1,900,000 | 816,200,000 | 65,000,000 | |||||||||
Balance, end of period at Dec. 31, 2018 | 7,611.3 | $ 0 | $ 8.1 | 10,734.9 | (1,729.7) | 33.6 | $ (1,441.8) | 7,605.1 | 6.2 | |||
Balance, beginning of period at Jun. 30, 2018 | 661.3 | |||||||||||
Balance, end of period at Dec. 31, 2018 | 487.6 | |||||||||||
Balance, beginning of period (in shares) at Sep. 30, 2018 | 5,000,000 | 815,800,000 | 65,000,000 | |||||||||
Balance, beginning of period at Sep. 30, 2018 | 8,613.1 | $ 0 | $ 8.1 | 10,699.5 | (769.1) | 110.8 | $ (1,441.8) | 8,607.5 | 5.6 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Cancellation of Preferred Stock (in shares) | (3,100,000) | |||||||||||
Exercise of employee stock options and restricted stock units (in shares) | 400,000 | |||||||||||
Exercise of employee stock options and restricted stock units | 0.2 | 0.2 | 0.2 | |||||||||
Shares withheld for employee taxes | (1.3) | (1.3) | (1.3) | |||||||||
Share-based compensation expense | 4.4 | 4.4 | 4.4 | |||||||||
Dividends, Common Stock | (94.6) | (94.6) | (94.6) | |||||||||
Net (loss) income | (960) | (960.6) | (960.6) | 0.6 | ||||||||
Other comprehensive income (loss) | (77.2) | (77.2) | (77.2) | |||||||||
Adjustment of redeemable noncontrolling interests to the higher of its redemption value or carrying value | 126.7 | 126.7 | 126.7 | |||||||||
Balance, end of period (in shares) at Dec. 31, 2018 | 1,900,000 | 816,200,000 | 65,000,000 | |||||||||
Balance, end of period at Dec. 31, 2018 | 7,611.3 | $ 0 | $ 8.1 | 10,734.9 | (1,729.7) | 33.6 | $ (1,441.8) | 7,605.1 | 6.2 | |||
Balance, beginning of period at Sep. 30, 2018 | 622.2 | |||||||||||
Redeemable Noncontrolling Interests | ||||||||||||
Net income (loss) | 4 | |||||||||||
Distribution to noncontrolling interests, net | (11.9) | |||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (126.7) | |||||||||||
Balance, end of period at Dec. 31, 2018 | 487.6 | |||||||||||
Balance, beginning of period (in shares) at Jun. 30, 2019 | 9,400,000 | 819,200,000 | 65,000,000 | |||||||||
Balance, beginning of period at Jun. 30, 2019 | 4,593.4 | $ 0.1 | $ 8.1 | 10,620.5 | (4,541.2) | (58.8) | $ (1,441.8) | 4,586.9 | 6.5 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Purchase of Class A Common Stock (in shares) | 500,000 | |||||||||||
Purchase of Class A Common Stock | (4.5) | $ (4.5) | (4.5) | |||||||||
Exercise of employee stock options and restricted stock units (in shares) | 100,000 | |||||||||||
Exercise of employee stock options and restricted stock units | 0.6 | 0.6 | 0.6 | |||||||||
Share-based compensation expense | 6.2 | 6.2 | 6.2 | |||||||||
Dividends declared - Cash and Other | (63.5) | (63.5) | (63.5) | |||||||||
Dividends declared - stock | (30.9) | (30.9) | (30.9) | |||||||||
Dividends settled in Shares of Class A Common Stock (in shares) | 3,200,000 | |||||||||||
Dividends settled in Shares of Class A Common Stock | $ 30.9 | $ 30.9 | $ 30.9 | |||||||||
Net (loss) income | 55.1 | 52.3 | 52.3 | 2.8 | ||||||||
Other comprehensive income (loss) | (124.6) | (124.6) | (124.6) | |||||||||
Adjustments related to the sale of business | 6.2 | 6.2 | 6.2 | |||||||||
Adjustment of redeemable noncontrolling interests to the higher of its redemption value or carrying value | (3.9) | (3.9) | (3.9) | |||||||||
Balance, end of period (in shares) at Sep. 30, 2019 | 9,400,000 | 822,500,000 | 65,500,000 | |||||||||
Balance, end of period at Sep. 30, 2019 | 4,464.3 | $ 0.1 | $ 8.1 | 10,566.1 | (4,489.6) | (183.4) | $ (1,446.3) | 4,455 | 9.3 | |||
Balance, beginning of period at Jun. 30, 2019 | 451.8 | |||||||||||
Redeemable Noncontrolling Interests | ||||||||||||
Net income (loss) | 1.2 | |||||||||||
Distribution to noncontrolling interests, net | (1.9) | |||||||||||
Adjustments related to the sale of business | (360.4) | |||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 3.9 | |||||||||||
Balance, end of period at Sep. 30, 2019 | 94.6 | |||||||||||
Balance, beginning of period (in shares) at Jun. 30, 2019 | 9,400,000 | 819,200,000 | 65,000,000 | |||||||||
Balance, beginning of period at Jun. 30, 2019 | $ 4,593.4 | $ 0.1 | $ 8.1 | 10,620.5 | (4,541.2) | (58.8) | $ (1,441.8) | 4,586.9 | 6.5 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Purchase of Class A Common Stock (in shares) | 500,000 | |||||||||||
Purchase of Class A Common Stock | $ (4.5) | |||||||||||
Dividends, Common Stock | (129.6) | (130.4) | ||||||||||
Dividends settled in Shares of Class A Common Stock | 60.2 | |||||||||||
Other comprehensive income (loss) | (18.6) | |||||||||||
Balance, end of period (in shares) at Dec. 31, 2019 | 9,400,000 | 826,000,000 | 65,500,000 | |||||||||
Balance, end of period at Dec. 31, 2019 | 4,481.6 | $ 0.1 | $ 8.3 | 10,497.8 | (4,510.7) | (77.5) | $ (1,446.3) | 4,471.7 | 9.9 | |||
Balance, beginning of period at Jun. 30, 2019 | 451.8 | |||||||||||
Balance, end of period at Dec. 31, 2019 | 98.6 | |||||||||||
Balance, beginning of period (in shares) at Sep. 30, 2019 | 9,400,000 | 822,500,000 | 65,500,000 | |||||||||
Balance, beginning of period at Sep. 30, 2019 | 4,464.3 | $ 0.1 | $ 8.1 | 10,566.1 | (4,489.6) | (183.4) | $ (1,446.3) | 4,455 | 9.3 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of employee stock options and restricted stock units (in shares) | 1,100,000 | |||||||||||
Exercise of employee stock options and restricted stock units | 1.5 | 1.5 | 1.5 | |||||||||
Shares withheld for employee taxes | (3.5) | (3.5) | (3.5) | |||||||||
Share-based compensation expense | 10.3 | 10.3 | 10.3 | |||||||||
Dividends declared - Cash and Other | (66.1) | (66.1) | (66.1) | |||||||||
Dividends declared - stock | (29.3) | (29.3) | (29.3) | |||||||||
Dividends settled in Shares of Class A Common Stock (in shares) | 2,400,000 | |||||||||||
Dividends settled in Shares of Class A Common Stock | $ 29.5 | $ 0.2 | $ 29.3 | $ 29.5 | ||||||||
Net (loss) income | (20.6) | (21.1) | (21.1) | 0.5 | ||||||||
Other comprehensive income (loss) | 106 | 105.9 | 105.9 | 0.1 | ||||||||
Adjustment of redeemable noncontrolling interests to the higher of its redemption value or carrying value | (10.5) | (10.5) | (10.5) | |||||||||
Balance, end of period (in shares) at Dec. 31, 2019 | 9,400,000 | 826,000,000 | 65,500,000 | |||||||||
Balance, end of period at Dec. 31, 2019 | 4,481.6 | $ 0.1 | $ 8.3 | $ 10,497.8 | $ (4,510.7) | $ (77.5) | $ (1,446.3) | $ 4,471.7 | $ 9.9 | |||
Balance, beginning of period at Sep. 30, 2019 | 94.6 | |||||||||||
Redeemable Noncontrolling Interests | ||||||||||||
Net income (loss) | 4.2 | |||||||||||
Distribution to noncontrolling interests, net | (10.7) | |||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 10.5 | |||||||||||
Balance, end of period at Dec. 31, 2019 | $ 98.6 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Parentheticals) - $ / shares | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends (in dollars per share) | $ 0.125 | $ 0.125 |
Dividends, stock (in dollars per share) | $ 0.125 | $ 0.125 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ 39.9 | $ (966.1) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 357.3 | 367.7 |
Non-cash lease expense (See Note 3) | 51.8 | |
Deferred income taxes | (50.4) | (55.9) |
Provision for bad debts | 26 | 9.4 |
Provision for pension and other post-employment benefits | 18.3 | 18.2 |
Share-based compensation | 16.5 | 8.2 |
Gain on sale of business (See Note 5) | (84.5) | 0 |
Asset impairment charges | 0 | 977.7 |
Non-cash restructuring charges | 0 | 23.8 |
Other | 25.8 | 26.4 |
Change in operating assets and liabilities, net of effects from purchase of acquired companies and sale of business: | ||
Trade receivables | 12.3 | (45.5) |
Inventories | 85.3 | (35.2) |
Prepaid expenses and other current assets | 3.5 | 19.7 |
Accounts payable | (118.9) | (28.6) |
Accrued expenses and other current liabilities | 195.9 | (87.4) |
Operating lease liabilities | (53.7) | 0 |
Income and other taxes payable | (19.3) | 12.8 |
Other noncurrent assets | (29.2) | 24.7 |
Other noncurrent liabilities | (14.6) | (32.2) |
Net cash provided by operating activities | 462 | 237.7 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (145) | (259.3) |
Proceeds from sale of business, net of cash disposed | 25.6 | 0 |
Payment for asset acquisitions | 0 | (40.8) |
Net cash used in investing activities | (119.4) | (300.1) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net (repayments of) proceeds from short-term debt, original maturity less than three months | (4) | 39.7 |
Proceeds from revolving loan facilities | 1,448.5 | 1,076.6 |
Repayments of revolving loan facilities | (1,540.8) | (644.8) |
Repayments of term loans and other long-term debt | (93) | (95.6) |
Dividend payment | (130.4) | (188.4) |
Net proceeds from issuance of Class A Common Stock and Series A Preferred Stock | 2.1 | 0.9 |
Payments for purchases of Class A Common Stock held as Treasury Stock | (4.5) | 0 |
Net proceeds from foreign currency contracts | 10.8 | 2.4 |
Purchase of remaining mandatorily redeemable noncontrolling interest | (45) | 0 |
Distributions to noncontrolling interests, redeemable noncontrolling interests and mandatorily redeemable financial instruments | (20.1) | (22.9) |
Payment of debt issuance costs | 0 | (10.7) |
All other | (4.3) | (3.5) |
Net cash (used in) provided by financing activities | (380.7) | 153.7 |
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (2.8) | (8.5) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (40.9) | 82.8 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 380.4 | 362.2 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period | 339.5 | 445 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||
Cash paid during the period for interest | 143.9 | 140.7 |
Cash received during the period for settlement of interest rate swaps | 0 | 43.2 |
Cash paid during the period for income taxes, net of refunds received | 78 | 57.6 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING AND INVESTING ACTIVITIES: | ||
Accrued capital expenditure additions | 79.9 | 83.3 |
Non-cash Common Stock dividend | $ 60.2 | $ 0 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [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 2020” refer to the fiscal year ending June 30, 2020. When used in this Quarterly Report on Form 10-Q, 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. On October 21, 2019, the Company announced that as part of its ongoing strategic review of its business, management and the Board of Directors have determined that the Company will focus on its fragrance, cosmetics and skin care businesses. As a result, Coty initiated a process to explore strategic alternatives, including divestiture, for its Professional Beauty business including associated hair brands sold by the Consumer Beauty division, as well as the Company’s Consumer Beauty Brazilian operations. The Company expects that the proceeds from any potential transaction will be used to pay down debt and return excess cash to shareholders. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited interim Condensed Consolidated Financial Statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and include the Company’s consolidated domestic and international subsidiaries. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited interim Condensed Consolidated Financial Statements and accompanying footnotes should be read in conjunction with the Company’s Consolidated Financial Statements as of and for the year ended June 30, 2019. In the opinion of management, all adjustments, of a normal recurring nature, considered necessary for a fair presentation have been included in the Condensed Consolidated Financial Statements. The results of operations for the three and six months ended December 31, 2019 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending June 30, 2020. All dollar amounts (other than per share amounts) in the following discussion are in millions of United States (“U.S.”) dollars, unless otherwise indicated. 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 December 31, 2019 and June 30, 2019, the Company had restricted cash of $50.7 and $40.0, respectively, included in Restricted cash in the Condensed Consolidated Balance Sheets. The Restricted cash balance as of December 31, 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 December 31, 2019. Restricted cash is included as a component of Cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, the market value of inventory, the fair value of acquired assets and liabilities associated with acquisitions, the assessment of goodwill, other intangible assets and long-lived assets for impairment and income taxes. 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 Condensed Consolidated Financial Statements in future periods. Tax Information The effective income tax rate for the three months ended December 31, 2019 and 2018 was 55.7% and (8.9)%, respectively and (324.5)% and (0.1)% for the six months ended December 31, 2019 and 2018, respectively. The positive effective tax rate in the three months ended December 31, 2019 results from reporting losses before income taxes and a benefit for income taxes. The negative effective tax rate in the six months ended December 31, 2019 results from reporting income before taxes and a benefit for income taxes. The negative effective tax rate in the three and six months ended December 31, 2018 results from reporting losses before income taxes and a provision for income taxes. The change in the effective tax rate for the three and six months ended December 31, 2019, as compared to the three and six months ended December 31, 2018, is primarily due to the resolution of foreign uncertain tax positions of $11.8 in the current period and goodwill impairment recorded in the prior period that was not tax deductible. The effective income tax rates vary from the U.S. federal statutory rate of 21% due to the effect of (i) jurisdictions with different statutory rates, (ii) adjustments to the Company’s unrealized tax benefits (“UTBs”) and accrued interest, (iii) non-deductible expenses, (iv) audit settlements and (v) valuation allowance changes. As of December 31, 2019 and June 30, 2019, the gross amount of UTBs was $326.9 and $336.1, respectively. As of December 31, 2019, the total amount of UTBs that, if recognized, would impact the effective income tax rate is $151.9. As of December 31, 2019 and June 30, 2019, the liability associated with UTBs, including accrued interest and penalties, was $169.3 and $179.9, respectively, which was recorded in Income and other taxes payable and Other non-current liabilities in the Condensed Consolidated Balance Sheets. The total interest and penalties recorded in the Condensed Consolidated Statements of Operations related to UTBs was $(1.3) and $1.5 for the three months ended December 31, 2019 and 2018, respectively and $0.1 and $2.7 for the six months ended December 31, 2019 and 2018, respectively. The total gross accrued interest and penalties recorded in the Condensed Consolidated Balance Sheets as of December 31, 2019 and June 30, 2019 was $17.4 and $17.3, respectively. On the basis of the information available as of December 31, 2019, it is reasonably possible that a decrease of up to $17.8 in UTBs may occur within 12 months as a result of projected resolutions of global tax examinations and a potential lapse of the applicable statutes of limitations. Factoring of Receivables The Company factors a portion of its trade receivables with unrelated third-party factoring companies on both a recourse and non-recourse basis. The Company has entered into factoring agreements with financial institutions and eligible trade receivables are purchased by the relevant financial institution for cash at net invoice value less a factoring fee. Pursuant to the factoring agreements, 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 these arrangements. 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 factoring agreements as sales and derecognizes the sold receivables from the Condensed 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 factoring arrangements is presented as a change in trade receivables within the operating activities section of the Condensed Consolidated Statements of Cash Flows. On September 25, 2019, the Company entered into a factoring agreement with a financial institution, which allows for the transfer of receivables from certain European Coty subsidiaries in exchange for cash (the “European Receivables Purchase Agreement”) on a non-recourse basis. The total outstanding amount permitted among such subsidiaries is €93.0 million. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lease assets and liabilities to be recorded on the balance sheet. The Company adopted this ASU and its related amendments as of July 1, 2019 using the modified retrospective method. Under this approach, prior periods were not restated. Rather, lease balances and other disclosures for prior periods were provided in the notes to the financial statements as previously reported, and the cumulative effect of initially applying the guidance was recognized in the Condensed Consolidated Balance Sheets. The adoption resulted in a cumulative-effect adjustment to retained earnings of approximately $0.7. The new leasing standard includes several optional practical expedients available that entities may elect to apply upon transition. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allows a lessee to carry forward its population of existing leases, the classification of each lease, as well as the treatment of initial direct costs as of the period of adoption. In addition, the Company elected the practical expedient related to lease and non-lease components, as an accounting policy election for all asset classes, which allows a lessee to not separate non-lease from lease components and instead account for consideration paid in a contract as a single lease component. Lastly, the Company did not elect the practical expedient related to hindsight analysis which allows a lessee to use hindsight in determining the lease term and in assessing impairment of the entity’s right-of-use (“ROU”) assets. The Company has made a policy election to not recognize ROU assets and lease liabilities that arise from leases with an initial term of twelve months or less on the Condensed Consolidated Balance Sheets. However, the Company will recognize these lease payments in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term and variable lease payments in the period in which the obligation is incurred. The Company has chosen to apply this accounting policy across all classes of underlying assets. Additionally, upon adoption, the Company utilized a discount rate to determine the present value of the lease payments based on information available as of July 1, 2019. On July 1, 2019, the Company recognized a lease liability of $617.8 and a corresponding ROU asset of $551.3, including the reclassification of approximately $66.4 of unamortized lease incentives and lease loss liabilities, upon the adoption of this standard, with minimal impact on the Condensed Consolidated Statements of Operations. See Note 3 for further information related to Leases. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which provided guidance for improvements to accounting for hedging activities under ASC 815. The amendments better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The Company adopted the standard in the first quarter of fiscal 2020 on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements. In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes , which permitted the use of the OIS rate based on SOFR as a benchmark interest rate for hedge accounting purposes. The Company adopted the standard concurrently with the adoption of ASU No. 2017-12 in the first quarter of fiscal 2020 on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU No. 2016-13”), 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. This guidance and its related amendments will be effective for the Company in fiscal 2021 with early adoption permitted. The Company is evaluating the impact this guidance and its related amendments will have on the Company’s Condensed Consolidated Financial Statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU No. 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and improves the consistency in the application of GAAP for areas of Topic 740 by clarifying and amending existing guidance. The amendment will be effective for the Company in fiscal 2022 with early adoption permitted. The Company is evaluating the impact this guidance will have on the Company’s Condensed Consolidated Financial Statements and related disclosures. |
LEASES
LEASES | 6 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASESA lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company determines if an arrangement is a lease at lease inception. For operating leases entered into prior to July 1, 2019, the ROU assets and operating lease liabilities are recognized in the balance sheet based on the present value of the remaining future minimum payments over the lease term from the implementation date of the standard, July 1, 2019. For leases entered into subsequent to July 1, 2019, the operating lease ROU assets and operating lease liabilities are based on the present value of minimum payments over the lease term at the commencement date of the lease. The Company uses discount rates to determine the present value of future lease payments. The Company uses its secured incremental borrowing rate, based on the information available for leases, including the lease term and interest rate environment in the country in which the lease exists. The lease terms used to calculate the ROU assets and lease liabilities may include options to extend or terminate when it is reasonably certain that the Company will exercise that option. The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 10.0 and 25.0 years. The Company utilizes these leased office facilities for use by its employees in countries in which the Company conducts its business. Leases are negotiated with third parties and, in some instances contain renewal, expansion and termination options. The Company also subleases certain office facilities to third parties when the Company no longer intends to utilize the space. None of the Company’s leases restricts the payment of dividends or the incurrence of debt or additional lease obligations, or contain significant purchase options. A portion of our real estate lease portfolio contains base rents subject to annual changes in the Consumer Price Index (“CPI”) as well as charges for operating expenses which are reimbursable to the landlord based on actual usage. Changes to the CPI and payments for such reimbursable operating expenses that are not defined with a minimum rate increase are considered variable and are recognized as variable lease costs in the period in which the obligation for those payments was incurred. As a practical expedient, the Company has elected an accounting policy not to separate non-lease components from lease components and instead, account for these components as a single lease component. The Company has made an accounting policy election not to recognize ROU assets and lease liabilities for leases that, at the commencement date, are for 12 months or less. All of the Company’s material leases are operating leases. These are primarily real estate properties, including corporate offices, retail stores and facilities to support the Company's manufacturing, research and development and distribution operations. The following chart provides additional information about the Company’s operating leases for the three and six months ended December 31, 2019: Lease Cost: Three Months Ended December 31, 2019 Six Months Ended December 31, 2019 Operating lease cost $ 30.4 $ 62.1 Short-term lease cost 0.6 1.3 Variable lease cost 15.3 27.7 Sublease income (2.4) (4.6) Net lease cost $ 43.9 $ 86.5 Other information: Operating cash outflows from operating leases $ 31.2 $ 63.1 Right-of-use assets obtained in exchange for lease obligations 29.1 4.1 Weighted-average remaining lease term - real estate 7.6 years Weighted-average discount rate - real estate leases 3.48 % Future minimum lease payments for the Company’s operating leases as of December 31, 2019 are as follows: Fiscal Year Ending June 30, 2020, remaining $ 72.4 2021 114.2 2022 98.1 2023 71.6 2024 60.9 Thereafter 226.4 Total future lease payments 643.6 Less: imputed interest (80.1) Total present value of lease liabilities 563.5 Current operating lease liabilities 109.3 Long-term operating lease liabilities 454.2 Total operating lease liabilities $ 563.5 Table excludes obligations for leases with original terms of 12 months or less which have not been recognized as ROU assets or liabilities in the Condensed Consolidated Balance Sheets. At June 30, 2019, the aggregate future minimum rental commitments under all non-cancelable operating lease agreements were as follows: Fiscal Year Ending June 30, 2020 $ 122.2 2021 111.2 2022 91.3 2023 76.7 2024 67.8 Thereafter 252.3 Total 721.5 Less: sublease income (20.1) Total payments $ 701.4 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company’s current organizational structure is category focused, putting the consumers 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 Company’s 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 the following three divisions which represent its operating segments and reportable segments: Luxury — primarily focused on prestige fragrances, premium skin care and premium color 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”) and 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 remains 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. See Note 1—Description of Business for information on the Company’s turnaround plan update announced on October 21, 2019. Certain income and shared costs and the results of corporate initiatives are 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 and realignment costs, costs related to acquisition and divestiture 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 9—Goodwill and Other Intangible Assets, net. Three Months Ended Six Months Ended SEGMENT DATA 2019 2018 2019 2018 Net revenues: Luxury $ 1,016.5 $ 1,017.5 $ 1,823.2 $ 1,810.4 Consumer Beauty 799.7 967.8 1,516.2 1,796.6 Professional Beauty 528.8 525.9 948.4 935.5 Total $ 2,345.0 $ 2,511.2 $ 4,287.8 $ 4,542.5 Operating income (loss): Luxury $ 148.1 $ 113.6 $ 238.4 $ 162.3 Consumer Beauty 26.9 (906.9) (16.4) (925.5) Professional Beauty 73.5 73.8 97.9 78.8 Corporate (213.1) (85.1) (158.5) (140.9) Total $ 35.4 $ (804.6) $ 161.4 $ (825.3) Reconciliation: Operating income (loss) $ 35.4 $ (804.6) $ 161.4 $ (825.3) Interest expense, net 71.1 68.3 148.5 132.4 Other expense, net 1.3 4.8 3.5 7.5 (Loss) income before income taxes $ (37.0) $ (877.7) $ 9.4 $ (965.2) Presented below are the percentage of revenues associated with the Company’s product categories: Three Months Ended Six Months Ended PRODUCT CATEGORY 2019 2018 2019 2018 Fragrance 44.9 % 43.5 % 43.7 % 42.3 % Color Cosmetics 20.4 23.3 22.2 24.7 Hair Care 26.3 24.4 25.5 24.3 Skin & Body Care 8.4 8.8 8.6 8.7 Total Coty Inc. 100.0 % 100.0 % 100.0 % 100.0 % |
BUSINESS COMBINATIONS, ASSET AC
BUSINESS COMBINATIONS, ASSET ACQUISITIONS AND DIVESTITURES | 6 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS, ASSET ACQUISITIONS AND DIVESTITURES | BUSINESS COMBINATIONS, ASSET ACQUISITIONS AND DIVESTITURES Business Combinations and Asset Acquisitions The Company did not complete any business acquisitions or asset acquisitions during the six months ended December 31, 2019. See Note 19—Subsequent Events for information on the acquisition of King Kylie, LLC ("King Kylie"), a Delaware limited liability company (the “King Kylie Acquisition"). Business Divestitures Younique On August 27, 2019, the Company entered into a Contribution and Redemption Agreement to transfer all of its membership interest in Foundation, LLC (“Foundation”), which held the net assets of Younique, LLC (“Younique”), to an existing noncontrolling interest holder. On September 16, 2019 (the “Closing Date”), the Company completed the sale of all of its membership interest in Foundation. Consideration received at the Closing Date consisted of $50.0 cash and a secured promissory note with a face value of $27.9. The sale resulted in a pre-tax gain of $84.5, included in Gain on sale of business in the Condensed Consolidated Statements of Operations for the six months ended December 31, 2019. Younique’s operations are included within the Consumer Beauty segment and its results of operations through the Closing Date are included in the Condensed Consolidated Statements of Operations for the six months ended December 31, 2019. Other Transactions Southeast Asian subsidiary In July 2019, the Company purchased the remaining 49% noncontrolling interest in a certain consolidated Southeast Asian subsidiary. Refer to Note 17—Mandatorily Redeemable Financial Interests and Redeemable Noncontrolling Interests. |
ACQUISITION AND DIVESTITURE-REL
ACQUISITION AND DIVESTITURE-RELATED COSTS | 6 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITION AND DIVESTITURE-RELATED COSTS | ACQUISITION AND DIVESTITURE-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. These costs can include finder’s fees, legal, accounting, valuation, other professional or consulting fees, including fees related to transitional services, and other internal costs which can include compensation related expenses for dedicated internal resources. The Company recognized acquisition-related costs of $4.1 and $0.0 for the three months ended December 31, 2019 and 2018, respectively, and $4.1 and $0.0 for the six months ended December 31, 2019 and 2018, respectively. Acquisition-related costs incurred during the three and six months ended December 31, 2019 were primarily related to the King Kylie Acquisition. See Note 19—Subsequent Events for information on the acquisition. Divestiture-related costs, which are expensed as incurred, represent non-restructuring costs directly related to divesting and selling an entity, for both completed and contemplated divestitures. These costs can include legal, accounting, information technology, other professional or consulting fees and other internal costs. Internal costs can include compensation related expenses for dedicated internal resources. Additionally, divestiture-related costs can include costs related to transitional services. The Company recognized divestiture-related costs of $31.9 and $0.0 for the three months ended December 31, 2019 and 2018, respectively, and $31.9 and $0.0 for the six months ended December 31, 2019 and 2018, respectively. Divestiture-related costs incurred during the three and six months ended December 31, 2019 were primarily related to the Company’s strategic review of its business. See Note 1—Description of Business for information on the strategic review. These costs have been recorded in Acquisition and divestiture-related costs in the Condensed Consolidated Statements of Operations. |
RESTRUCTURING COSTS
RESTRUCTURING COSTS | 6 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING COSTS | RESTRUCTURING COSTS Restructuring costs for the three and six months ended December 31, 2019 and 2018 are presented below: Three Months Ended Six Months Ended 2019 2018 2019 2018 Turnaround Plan $ 137.9 $ — $ 146.6 $ — Global Integration Activities (2.7) 22.2 (4.4) 28.7 2018 Restructuring Actions (0.2) (0.3) (1.0) 8.8 Other Restructuring (0.1) (0.4) (0.3) (0.5) Total $ 134.9 $ 21.5 $ 140.9 $ 37.0 Turnaround Plan In connection with the four Of the expected costs, the Company has incurred cumulative restructuring charges of $146.6 related to approved initiatives through December 31, 2019, which have been recorded in Corporate. The following table presents aggregate restructuring charges for the program: Severance and Employee Benefits Third-Party Contract Terminations Other Exit Costs Total Cumulative through December 31, 2019 $ 144.4 $ 0.1 $ 2.1 $ 146.6 Over the next four fiscal years, the Company expects to incur approximately $160.0 of additional restructuring charges pertaining to the approved actions, primarily related to employee termination benefits, contract terminations and other exit-related costs. The related liability balance and activity for the Turnaround Plan restructuring costs are presented below: Severance and Employee Benefits Third-Party Contract Terminations Other Exit Costs Total Balance—July 1, 2019 $ — $ — $ — $ — Restructuring charges 145.1 0.1 2.1 147.3 Payments (3.2) — — (3.2) Changes in estimates (0.7) — — (0.7) ASC 842 adoption adjustment — — (1.5) (1.5) Effect of exchange rates 0.4 — — 0.4 Balance—December 31, 2019 $ 141.6 $ 0.1 $ 0.6 $ 142.3 The Company currently estimates that the total remaining accrual of $142.3 will result in cash expenditures of approximately $32.3, $102.7 and $7.3 in fiscal 2020, 2021 and thereafter, respectively. Global Integration Activities In connection with the acquisition of The Procter & Gamble Company’s beauty business, the Company has incurred 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 $495.6 related to approved initiatives through December 31, 2019, 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 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 Fiscal 2020 (4.3) — — (0.1) (4.4) Cumulative through December 31, 2019 $ 391.1 $ 46.2 $ 46.7 $ 11.6 $ 495.6 The related liability balance activity for the Global Integration Activities restructuring costs are presented below: Severance and Third-Party Other Total Balance—July 1, 2019 $ 53.7 $ 11.7 $ 1.6 $ 67.0 ASC 842 adoption adjustment — — (1.4) (1.4) Payments (15.6) (3.1) (0.1) (18.8) Changes in estimates (4.3) — (0.1) (4.4) Effect of exchange rates (0.6) — — (0.6) Balance—December 31, 2019 $ 33.2 $ 8.6 $ — $ 41.8 The Company currently estimates that the total remaining accrual of $41.8 will result in cash expenditures of approximately $25.5, $16.0 and $0.3 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 $84.2 related to approved initiatives through December 31, 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 Fiscal 2020 (1.0) — — — (1.0) Cumulative through December 31, 2019 $ 77.9 $ 0.1 $ 1.3 $ 4.9 $ 84.2 The related liability balance and activity of restructuring costs for the 2018 Restructuring Actions are presented below: Severance and Employee Benefits Third-Party Contract Terminations Other Exit Costs Total Program Costs Balance—July 1, 2019 $ 15.5 $ 0.1 $ 1.5 $ 17.1 Payments (7.1) (0.1) — (7.2) Changes in estimates (1.0) — — (1.0) ASC 842 adoption adjustment — — (1.2) (1.2) Effect of exchange rates (0.3) — — (0.3) Balance—December 31, 2019 $ 7.1 $ — $ 0.3 $ 7.4 The Company currently estimates that the total remaining accrual of $7.4 will result in cash expenditures of approximately $4.8, $2.4 and $0.2 in fiscal 2020, 2021 and thereafter, respectively. Other Restructuring |
INVENTORIES
INVENTORIES | 6 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories as of December 31, 2019 and June 30, 2019 are presented below: December 31, June 30, Raw materials $ 231.2 $ 259.5 Work-in-process 9.7 20.4 Finished goods 774.9 873.4 Total inventories $ 1,015.8 $ 1,153.3 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 6 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill Goodwill as of December 31, 2019 and June 30, 2019 is presented below: Luxury Consumer Beauty Professional Beauty Total 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 Changes during the period ended December 31, 2019 Disposition of business $ — $ (23.4) $ — $ (23.4) Foreign currency translation (25.3) (18.7) 9.6 (34.4) Gross balance at December 31, 2019 $ 3,300.1 $ 4,802.5 $ 945.3 $ 9,047.9 Accumulated impairments (403.7) (3,628.2) — (4,031.9) Net balance at December 31, 2019 $ 2,896.4 $ 1,174.3 $ 945.3 $ 5,016.0 Other Intangible Assets, net Other intangible assets, net as of December 31, 2019 and June 30, 2019 are presented below: December 31, June 30, Indefinite-lived other intangible assets $ 2,727.0 $ 2,729.8 Finite-lived other intangible assets, net 4,265.5 4,692.5 Total Other intangible assets, net $ 6,992.5 $ 7,422.3 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, 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 30, 2019 $ 177.4 $ 1,324.7 $ 1,227.7 $ 2,729.8 Changes during the period ended December 31, 2019 Foreign currency translation $ (2.4) $ (4.1) $ 3.7 $ (2.8) Gross balance at December 31, 2019 $ 403.4 $ 1,689 $ 1,261.5 $ 3,353.9 Accumulated impairments (228.4) (368.4) (30.1) (626.9) Net balance at December 31, 2019 $ 175.0 $ 1,320.6 $ 1,231.4 $ 2,727.0 Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2019 License agreements $ 3,245.3 $ (874.5) $ (19.6) $ 2,351.2 Customer relationships 1,951.6 (642.0) (5.5) 1,304.1 Trademarks 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 December 31, 2019 License agreements $ 3,209.5 $ (937.7) $ (19.6) $ 2,252.2 Customer relationships 1,746.1 (622.0) (5.5) 1,118.6 Trademarks 914.1 (233.6) (0.5) 680.0 Product formulations and technology 356.3 (141.6) — 214.7 Total $ 6,226.0 $ (1,934.9) $ (25.6) $ 4,265.5 In July 2018, 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 Condensed Consolidated Statement of Operations related to the license agreement. In September 2019, the Company divested all of its membership interest in Foundation, which held the net assets of Younique (including goodwill of $23.4 and other intangible assets of $228.6). Refer to Note 5—Business Combinations, Asset Acquisitions and Divestitures. Amortization expense was $76.8 and $88.5 for the three months ended December 31, 2019 and 2018, respectively and $161.1 and $181.0 for the six months ended December 31, 2019 and 2018, respectively. |
DEBT
DEBT | 6 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The Company’s debt balances consisted of the following as of December 31, 2019 and June 30, 2019, respectively: December 31, 2019 June 30, Short-term debt $ 0.1 $ 4.2 2018 Coty Credit Agreement 2018 Coty Revolving Credit Facility due April 2023 694.9 792.1 2018 Coty Term A Facility due April 2023 3,034.8 3,147.0 2018 Coty Term B Facility due April 2025 2,317.4 2,342.3 Senior Unsecured Notes 2026 Dollar Notes due April 2026 550.0 550.0 2023 Euro Notes due April 2023 616.4 625.0 2026 Euro Notes due April 2026 280.2 284.1 Other long-term debt and capital lease obligations 0.9 1.1 Total debt 7,494.7 7,745.8 Less: Short-term debt and current portion of long-term debt (188.0) (193.8) Total Long-term debt 7,306.7 7,552.0 Less: Unamortized debt issuance costs (62.9) (71.3) Less: Discount on Long-term debt (10.0) (10.8) Total Long-term debt, net $ 7,233.8 $ 7,469.9 Short-Term Debt The Company maintains short-term lines of credit and other short-term debt with financial institutions around the world. As of December 31, 2019, total short-term debt decreased to $0.1 from $4.2 as of June 30, 2019. In addition, the Company had undrawn letters of credit of $5.0 and $6.3 and bank guarantees of $55.3 and $97.1 as of December 31, 2019 and June 30, 2019, respectively. Long-Term Debt On April 5, 2018, the Company issued senior unsecured notes in a private offering and entered into a new credit agreement (the “2018 Coty Credit Agreement”). The net proceeds of the offering of the notes, together with borrowings under the 2018 Coty Credit Agreement, were used to repay in full and refinance the indebtedness outstanding under the Company’s previously existing long-term debt agreements and to pay accrued interest, related premiums, fees and expenses in connection therewith. 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 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. The 2026 Dollar Notes will mature on April 15, 2026. The 2026 Dollar Notes will bear interest at a rate of 6.50% per annum. Interest on the 2026 Dollar Notes is payable semi-annually in arrears on April 15 and October 15 of each year. The 2023 Euro Notes will mature on April 15, 2023 and the 2026 Euro Notes will mature on April 15, 2026. The 2023 Euro Notes will bear interest at a rate of 4.00% per annum, and the 2026 Euro Notes will bear interest at a rate of 4.75% per annum. Interest on the Euro Notes is payable semi-annually in arrears on April 15 and October 15 of each year. 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 Senior Unsecured 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 Senior Unsecured Notes also provide for customary events of default. 2018 Coty Credit Agreement On April 5, 2018, the Company entered into the 2018 Coty Credit Agreement, which amended and restated the prior Coty Credit Agreement. The 2018 Coty Credit Agreement provides for (a) the incurrence by the Company of (1) a senior secured term A facility in an aggregate principal amount of (i) $1,000.0 denominated in U.S. dollars and (ii) €2,035.0 million denominated in euros (the “2018 Coty Term A Facility”) and (2) a senior secured term B facility in an aggregate principal amount of (i) $1,400.0 denominated in U.S. dollars and (ii) €850.0 million denominated in euros (the “2018 Coty Term B Facility”) and (b) the incurrence by the Company and Coty B.V., a Dutch subsidiary of the Company (the “Dutch Borrower” and, together with the Company, the “Borrowers”), of a senior secured revolving facility in an aggregate principal amount of $3,250.0 denominated in U.S. dollars, specified alternative currencies or other currencies freely convertible into U.S. dollars and readily available in the London interbank market (the “2018 Coty Revolving Credit Facility”) (the 2018 Coty Term A Facility, together with the 2018 Coty Term B Facility and the 2018 Coty Revolving Credit Facility, the “2018 Coty Credit Facilities”). Initial borrowings under the 2018 Coty Term Loan B Facility were issued at a 0.250% discount. The 2018 Coty Credit Agreement provides that with respect to the 2018 Coty Revolving Credit Facility, up to $150.0 is available for letters of credit and up to $150.0 is available for swing line loans. The 2018 Coty Credit Agreement also permits, subject to certain terms and conditions, the incurrence of incremental facilities thereunder in an aggregate amount of (i) $1,700.0 plus (ii) an unlimited amount if the First Lien Net Leverage Ratio (as defined in the 2018 Coty Credit Agreement), at the time of incurrence of such incremental facilities and after giving effect thereto on a pro forma basis, is less than or equal to 3.00 to 1.00. The 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 earnings before interest, taxes, depreciation and amortization (“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. Scheduled Amortization The Company makes quarterly payments of 1.25% and 0.25%, of the initial aggregate principal amounts of the 2018 Coty Term A Facility and the 2018 Coty Term B Facility, respectively. The remaining balance of the initial aggregate principal amounts of the 2018 Coty Term A Facility and the 2018 Coty Term B Facility will be payable on the maturity date for each facility, respectively. 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 • Alternate base rate (“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 U.S. dollars 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 December 31, 2019 June 30, 2019 Carrying Fair Carrying Fair 2018 Coty Credit Agreement $ 6,047.1 $ 5,886.9 $ 6,281.4 $ 6,058.9 Senior Unsecured Notes 1,446.6 1,510.7 1,459.1 1,439.6 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 the Company’s long-term debt, including the current portion of long-term debt and excluding capital lease obligations as of December 31, 2019, are presented below: Fiscal Year Ending June 30, 2020, remaining $ 93.8 2021 187.6 2022 187.6 2023 3,959.5 2024 23.5 Thereafter 3,041.7 Total $ 7,493.7 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) December 31, 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, including Adjusted EBITDA, used within the definition of Total Net Leverage Ratio have the meanings ascribed to them within the 2018 Coty Credit Agreement, as amended). Adjusted EBITDA, as defined in the 2018 Coty Credit Agreement, as amended, includes certain add backs related to cost savings, operating expense reductions and future unrealized synergies subject to certain limits and conditions as specified in the 2018 Coty Credit Agreement. 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 December 31, 2019, the Company was in compliance with all covenants contained within the 2018 Coty Credit Agreement, as amended. |
INTEREST EXPENSE, NET
INTEREST EXPENSE, NET | 6 Months Ended |
Dec. 31, 2019 | |
Interest Income (Expense), Net [Abstract] | |
INTEREST EXPENSE, NET | INTEREST EXPENSE, NET Interest expense, net for the three and six months ended December 31, 2019 and 2018 is presented below: Three Months Ended Six Months Ended 2019 2018 2019 2018 Interest expense $ 66.3 $ 74.1 $ 141.8 $ 146.5 Foreign exchange losses (gains), net of derivative contracts 4.9 (0.2) 8.7 (3.8) Interest income (0.1) (5.6) (2.0) (10.3) Total interest expense, net $ 71.1 $ 68.3 $ 148.5 $ 132.4 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The components of net periodic benefit cost for pension plans and other post-employment benefit plans recognized in the Condensed Consolidated Statements of Operations are presented below: Three Months Ended December 31, Pension Plans Other Post- Employment Benefits U.S. International Total 2019 2018 2019 2018 2019 2018 2019 2018 Service cost $ — $ — $ 9.2 $ 8.6 $ 0.4 $ 0.3 $ 9.6 $ 8.9 Interest cost 0.3 0.2 2.3 3.3 0.6 0.5 3.2 4.0 Expected return on plan assets — — (2.1) (2.1) — — (2.1) (2.1) Amortization of prior service cost (credit) — — (0.2) 0.1 (1.5) (1.5) (1.7) (1.4) Amortization of net (gain) loss 0.3 (0.2) — (0.1) — — 0.3 (0.3) Net periodic benefit cost (credit) $ 0.6 $ — $ 9.2 $ 9.8 $ (0.5) $ (0.7) $ 9.3 $ 9.1 Six Months Ended December 31, Pension Plans Other Post- U.S. International Total 2019 2018 2019 2018 2019 2018 2019 2018 Service cost $ — $ — $ 18.7 $ 16.8 $ 0.9 $ 0.6 $ 19.6 $ 17.4 Interest cost 0.4 0.4 4.6 6.6 1.0 1.0 6.0 8.0 Expected return on plan assets — — (4.2) (4.2) — — (4.2) (4.2) Amortization of prior service cost (credit) — — (0.4) 0.2 (3.1) (3.0) (3.5) (2.8) Amortization of net (gain) loss 0.4 (0.4) — 0.2 — — 0.4 (0.2) Net periodic benefit cost (credit) $ 0.8 $ — $ 18.7 $ 19.6 $ (1.2) $ (1.4) $ 18.3 $ 18.2 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Foreign Exchange Risk Management 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 and cross-currency swaps 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 foreign exchange forward contracts for which hedge accounting treatment has been applied, which the Company anticipates realizing in the Condensed Consolidated Statements of Operations through fiscal 2021. In addition, in September 2019, the Company entered into cross-currency swap contracts in the notional amount of $550.0 and designated these cross-currency swaps as hedges of its net investment in certain foreign subsidiaries. These cross-currency swaps allow for the exchange of fixed interest payments on the agreed upon notional amounts, between the Company and the related counterparties, effectively converting the Company’s fixed rate U.S. dollar denominated debt to euro denominated debt with more favorable fixed rate interest payments over the contracts’ term. Cross-currency swaps designated as net investment hedges are marked-to-market using the current spot exchange rate as of the end of each reporting period, with gains and losses included in the foreign currency translation component of accumulated other comprehensive income (loss) (“AOCI/(L)”) until the sale or substantial liquidation of the underlying net investments. Interest Rate Risk Management 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 and positive impacts of changes 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 September 2019, the Company entered into incremental interest rate swap contracts in the notional amount of $1,000.0, which extended the maturity of the interest rate swap portfolio from 2021 through 2023. These interest rate swaps are designated and qualify as cash flow hedges. As of December 31, 2019 and June 30, 2019, the Company had interest rate swap contracts designated as effective hedges in the notional amount of $3,000.0 and $2,000.0, respectively. Derivative and non-derivative financial instruments which are designated as hedging instruments: The accumulated gain on foreign currency borrowings classified as net investment hedges in the foreign currency translation adjustment component of AOCI/(L) was $272.8 and $214.8 as of December 31, 2019 and June 30, 2019, respectively. The accumulated loss on derivative instruments classified as net investment hedges in the foreign currency translation adjustment component of AOCI/(L) was $(18.7) and $0.0 as of December 31, 2019 and June 30, 2019, respectively. The amount of gains and losses recognized in Other comprehensive income (loss) (“OCI”) in the Condensed 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 Three Months Ended Six Months Ended 2019 2018 2019 2018 Foreign exchange forward contracts $ 0.2 $ 0.4 $ 0.6 $ 0.4 Interest rate swap contracts 4.1 (21.0) 3.6 (15.9) Cross-currency swap contracts (22.6) — (18.7) — Net investment hedge (99.3) 74.3 58.0 78.6 The accumulated gain on derivative instruments classified as cash flow hedges in AOCI/(L), net of tax, was $(8.2) and $(13.3) as of December 31, 2019 and June 30, 2019, 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 $(4.9). As of December 31, 2019, all of the Company’s remaining foreign currency forward contracts designated as hedges were highly effective. The amount of gains and losses reclassified from AOCI/(L) to the Condensed Consolidated Statements of Operations related to the Company’s derivative financial instruments which are designated as hedging instruments is presented below: Location and Amount of Gain (Loss) Recognized in Income on Cash Flow Hedging Relationships Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Cost of sales Interest expense, net Cost of sales Interest expense, net Cost of sales Interest expense, net Cost of sales Interest expense, net Foreign exchange forward contracts: Amount of gain (loss) reclassified from AOCI into income $ 1.0 $ — $ — $ — $ 1.2 $ — $ — $ — Interest rate swap contracts: Amount of gain (loss) reclassified from AOCI into income — (1.2) — 3.9 — (0.3) — 7.7 Derivatives not designated as hedging: The amount of gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments is presented below: Condensed Consolidated Statements of Operations Three Months Ended Six Months Ended 2019 2018 2019 2018 Foreign exchange contracts Selling, general and administrative expenses $ (0.7) $ 0.1 $ (0.9) $ 0.1 Foreign exchange contracts Interest expense, net 6.6 (5.6) 11.3 (1.6) Foreign exchange contracts Other expense, net (0.2) 0.1 (0.3) 1.4 |
EQUITY
EQUITY | 6 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
EQUITY | EQUITY Common Stock As of December 31, 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. As of December 31, 2019 , total authorized shares of Class A Common Stock was 1,000.0 million and total outstanding shares of Class A Common Stock was 760.5 million. As of December 31, 2019, the Company’s largest stockholder was Cottage Holdco B.V., which owned approximately 60% of Coty’s outstanding Class A Common Stock. Cottage Holdco B.V., a wholly-owned subsidiary of JAB Cosmetics B.V. (“JABC”), is indirectly controlled by Lucresca SE, Agnaten SE and JAB Holdings B.V. (“JAB”). During the three and six months ended December 31, 2019, JABC acquired nil shares of Class A Common Stock in open market purchases on the New York Stock Exchange and elected to receive 2.2 million and 5.0 million shares of Class A Common Stock, respectively, under the Company’s dividend reinvestment program. Preferred Stock As of December 31, 2019, total authorized shares of preferred stock a re 20.0 million. There are two classes of Preferred Stock outstanding as of December 31, 2019, Series A Preferred Stock and Series A-1 Preferred Stock, both with a par value of $0.01 per share. As of December 31, 2019, total authorized, issued and outstanding shares of Series A Preferred Stock and Series A-1 Preferred Stock a re 1.5 million and 7.9 million, respectively. The Series A Preferred Stock 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 December 31, 2019, the Company classifie d $1.7 of Preferred Stock as equit y, and $2.0 as a liability record ed in Other noncurrent liabilities in the Condensed Consolidated Balance Sheet. 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”). 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. For the three and six months ended December 31, 2019, the Company did not repurchase any shares of its Class A Common Stock. As of December 31, 2019, the Company had authority for $396.8 remaining under the Incremental Repurchase Program. Other Repurchases The Company repurchased 0.5 million shares of its Class A Common Stock for $4.5 during the six months ended December 31, 2019 in connection with the exit of an executive in September 2019. Dividend s The following dividends were declared during the six months ended December 31, 2019: 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 2020 August 28, 2019 Quarterly $ 0.125 September 9, 2019 $ 0.125 September 30, 2019 $ 63.3 $ 30.9 $ 1.1 November 6, 2019 Quarterly $ 0.125 November 18, 2019 $ 0.125 December 27, 2019 $ 65.5 $ 29.3 $ 1.3 Fiscal 2020 $ 0.250 $ 0.250 $ 128.8 $ 60.2 $ 2.4 (a) The September 30, 2019 and December 27, 2019 stock dividend payment of $30.9 and $29.3 resulted in the issuance of 3.2 million and 2.4 million shares of Class A Common Stock, respectively. (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 Condensed Consolidated Balance Sheet. Total dividends in cash a nd other recorded to additional paid-in capital (“APIC”) in the Condensed Consolidated Balance Sheet as of December 31, 2019 were $129.6, consisting of $128.8 dividends settled in cash, $2.4 dividends payable, offset by $1.6 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 $1.6 for the previ ously accrued dividends on RSUs that vested during the six months ended December 31, 2019. Thus, total dividends settled in cash during the six months ended December 31, 2019 were $130.4. Total accrued dividends on unvested RSUs and phantom unit s of $2.1 and $4.4 are i ncluded in Accrued expenses and other current liabilities and Other noncurrent liabilities, respectively, in the Condensed Consolidated Balance Sheet as of December 31, 2019. Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustments (Loss) gain on Cash Flow Hedges Gain on Net Investment Hedge Other Foreign Currency Translation Adjustments Pension and Other Post-Employment Benefit Plans (a) Total Balance—July 1, 2019 $ (13.3) $ 214.8 $ (257.4) $ (2.9) $ (58.8) Other comprehensive income (loss) before reclassifications 4.9 39.3 (60.0) — (15.8) Net amounts reclassified from AOCI/(L) 0.2 — — (3.1) (2.9) Net current-period other comprehensive income (loss) 5.1 39.3 (60.0) (3.1) (18.7) Balance—December 31, 2019 $ (8.2) $ 254.1 $ (317.4) $ (6.0) $ (77.5) (a) For the six months ended December 31, 2019, net amounts reclassified from AOCI/(L) related to pensions and other post-employment benefit plans included amortization of prior service credits and actuarial loss of $(3.1), net of tax of $0.0. Foreign Currency Translation Adjustments Gain on Cash Flow Hedges Gain on Net Investment Hedge Other Foreign Currency Translation Adjustments Pension and Other Post-Employment Benefit Plans Total Balance—July 1, 2018 $ 31.7 $ 115.0 $ (44.3) $ 56.4 $ 158.8 Other comprehensive (loss) income before reclassifications (11.8) 78.6 (187.7) — (120.9) Net amounts reclassified from AOCI/(L) (5.9) — — 1.6 (4.3) Net current-period other comprehensive (loss) income (17.7) 78.6 (187.7) 1.6 (125.2) Balance—December 31, 2018 $ 14.0 $ 193.6 $ (232.0) $ 58.0 $ 33.6 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 6 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS Share-based compensation expense is recognized on a straight-line basis over the requisite service period. Total share-based compensation is shown in the table below: Three Months Ended Six Months Ended 2019 2018 2019 2018 Equity plan expense $ 10.3 $ 4.4 $ 16.5 $ 10.8 Liability plan (income) expense — (2.6) — (2.6) Fringe expense 1.1 0.5 1.2 0.5 Total share-based compensation expense $ 11.4 $ 2.3 $ 17.7 $ 8.7 The share-based compensation expense for the three and six months ended December 31, 2019 of $11.4 and $17.7, respectively, includes $11.4 and $20.2 expense offset by nil and $2.5 income, respectively, primarily due to significant executive forfeitures of share-based compensation instruments. The share-based compensation expense for the three and six months ended December 31, 2018 of $2.3 and $8.7, respectively, includes $8.2 and $17.5 expense offset by $5.9 and $8.8 income, respectively, primarily due to significant executive forfeitures of share-based compensation instruments. As of December 31, 2019, the total unrecognized share-based compensation expense related to stock options, Series A and A-1 Preferred Stock and restricted and other share awards i s $41.9, $8.1 and $107.0 , respectively. The unrecognized share-based compensation expense related to stock options, Series A and A-1 Preferred stock and restricted and other share awards is expected to be recognized over a weighted-average p eriod of 3.89, 3.94 and 3.82 years, respectively. Restricted Share Units and Other Share Awards The Company granted approximately 5.3 million RSUs and other share awards during the three and six months ended December 31, 2019, respectively. The Company recognized share-based compensation expense of $8.0 and $3.6 for the three months ended December 31, 2019 and 2018, respectively and $13.0 and $7.7 for the six months ended December 31, 2019 and 2018, respectively. Series A Preferred Stock and Series A-1 Preferred Stock The Company granted no shares of Series A Preferred Stock and no shares of Series A-1 Preferred Stock during the three and six months ended December 31, 2019. The Company recognized share-based compensation expense (income) of $0.5 and $(4.1) for the three months ended December 31, 2019 and 2018, respectively and $1.0 and $(4.2) for the six months ended December 31, 2019 and 2018, respectively. Non-Qualified Stock Options The Company grante d 2.2 million non-qualified stock options during the three and six months ended December 31, 2019. The Company recognized share-based compensation expense of $2.9 and $2.8 for the three months ended December 31, 2019 and 2018, respectively and $3.7 and $5.2 for the six months ended December 31, 2019 and 2018, respectively . |
NET (LOSS) INCOME ATTRIBUTABLE
NET (LOSS) INCOME ATTRIBUTABLE TO COTY INC. PER COMMON SHARE | 6 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
NET (LOSS) INCOME ATTRIBUTABLE TO COTY INC. PER COMMON SHARE | NET (LOSS) INCOME ATTRIBUTABLE TO COTY INC. PER COMMON SHARE Reconciliation between the numerators and denominators of the basic and diluted income per share (“EPS”) computations is presented below: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in millions, except per share data) Net (loss) income attributable to Coty Inc. $ (21.1) $ (960.6) $ 31.2 $ (972.7) Weighted-average common shares outstanding—Basic 758.1 751.1 756.1 751.0 Effect of dilutive stock options and Series A/A-1 Preferred Stock (a) — — 1.5 — Effect of restricted stock and RSUs (b) — — 3.6 — Weighted-average common shares outstanding—Diluted 758.1 751.1 761.2 751.0 Net (loss) income attributable to Coty Inc. per common share: Basic $ (0.03) $ (1.28) $ 0.04 $ (1.30) Diluted (0.03) (1.28) 0.04 (1.30) (a) For the six months ended December 31, 2019, outstanding stock options and Series A/A-1 Preferred Stock with purchase or conversion rights to purchase 24.8 million shares of Common Stock were excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. For the three months ended December 31, 2019 and three and six months ended December 31, 2018, 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) For the six months ended December 31, 2019, there were 2.9 million anti-dilutive RSUs excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. For the three months ended December 31, 2019 and three and six months ended December 31, 2018, RSUs were excluded in the computation of diluted loss per share due to the net loss incurred during the period. |
MANDATORILY REDEEMABLE FINANCIA
MANDATORILY REDEEMABLE FINANCIAL INTERESTS AND REDEEMABLE NONCONTROLLING INTERESTS | 6 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
MANDATORILY REDEEMABLE FINANCIAL INTERESTS AND REDEEMABLE NONCONTROLLING INTERESTS | MANDATORILY REDEEMABLE FINANCIAL INTERESTS AND REDEEMABLE NONCONTROLLING INTERESTS Mandatorily Redeemable Financial Interest United Arab Emirates subsidiary The Company is required under a shareholders agreement (the “U.A.E. Shareholders Agreement”) to purchase all of the shares held by the noncontrolling interest holder equal to 25% 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 U.A.E. Shareholders Agreement. As of December 31, 2019 and June 30, 2019, the liability amounted to $8.0 and $7.5, of which $6.4 and $6.1, respectively, was recorded in Other noncurrent liabilities and $1.6 and $1.4, respectively, was recorded in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheet. Southeast Asian subsidiary In July 2019, the Company purchased the remaining 49% noncontrolling interest of a certain Southeast Asian subsidiary from the noncontrolling interest holder for $45.0, pursuant to a Sale of Shares and Termination Deed, as amended. The termination was effective on June 30, 2019 and immediately prior to the cash purchase of the remaining noncontrolling interest, the noncontrolling interest balance was recorded as a MRFI liability. As of December 31, 2019, the remaining MRFI liability was nil. Redeemable Noncontrolling Interests Younique On September 16, 2019, the Company completed the sale of all of its membership interest in Foundation, which held the net assets of Younique. On the date of this transaction, the Younique membership holders had a 40.7% membership interest in Foundation. See Note 5—Business Combinations, Asset Acquisitions and Divestitures. As a result of the Company’s sale of its membership interest in Foundation, redeemable noncontrolling interest (“RNCI”) of $360.4 was derecognized as of the date of sale. The Company accounted for the 40.7% noncontrolling interest portion of Foundation as RNCI due to the noncontrolling interest holder’s right to put their shares to the Company in certain circumstances. Foundation was a majority-owned consolidated subsidiary through September 16, 2019 and the Company recorded 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 as the RNCI balance as of June 30, 2019. Subsidiary in the Middle East As of December 31, 2019, the noncontrolling interest holder in the Company’s subsidiary in the Middle East (“Middle East Subsidiary”) had a 25% ownership share. The Company adjusts the RNCI to redemption value at the end of each reporting period with changes recognized as adjustments to APIC. The Company recognized $98.6 and $86.5 as the RNCI balances as of December 31, 2019 and June 30, 2019, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND 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 . A purported stockholder class action complaint concerning the tender offer by Cottage Holdco B.V. (the “Cottage Tender Offer”) and the Schedule 14D-9, captioned Rumsey v. Coty, Inc., et al., Case No. 1:19-cv-00650-LPS, was filed by a putative stockholder against the Company and certain current and former directors of the Company in the U.S. District Court for the District of Delaware, but has not yet been served. The plaintiff alleges 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. The plaintiff asserts claims under the federal securities laws and seeks, among other things, injunctive and/or monetary relief. A second consolidated purported stockholder class action and derivative complaint concerning the Cottage Tender Offer and the Schedule 14D-9 is pending against certain current and former 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 v. Harf et.al., Case No. 2019-0336-AGB. On June 14, 2019, plaintiffs in the consolidated action filed a Verified Amended Class Action and Derivative Complaint (“Amended Complaint”). After defendants responded to the Amended Complaint, on October 21, 2019, plaintiffs filed a Verified Second Amended Class Action and Derivative Complaint (the “Second 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 Second Amended Complaint seeks, among other things, monetary relief. On November 21, 2019, the defendants moved to dismiss certain claims asserted in the Second Amended Complaint, and certain of the director defendants also answered the complaint. Oral argument on the motions to dismiss is scheduled for April 21, 2020. 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 2018. The assessments relate to local sales tax credits, which the Treasury Office of the State of Goiás considers as improperly registered for the 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, amount to a total of R$249.0 million (approximately $61.9). 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 | 6 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Quarterly Dividend On February 5, 2020, the Company announced a quarterly cash dividend of $0.125 per share on its Class A Common Stock, RSUs and phantom units. The dividend will be payable on March 27, 2020 to holders of record of Class A Common Stock as of February 18, 2020. The shareholders will have an option to elect to receive their dividend 50% in cash and 50% in Class A Common Stock. King Kylie Transaction On November 18, 2019, the Company entered into a purchase agreement (the “Purchase Agreement”) with King Kylie and the other parties listed as signatories to the Purchase Agreement (the “Seller Group Parties”), to build and further expand King Kylie’s brands globally. Pursuant to the Purchase Agreement, on January 6, 2020, the Company acquired 51% of the equity interests in King Kylie from the applicable Seller Group Parties for a base purchase price of $600.0 in cash, subject to certain post-closing adjustments. In addition, as contemplated by the Purchase Agreement, the Company entered into an Evergreen Collaboration Agreement, pursuant to which, in exchange for a marketing fee and a license fee, it received the perpetual right and license to manufacture, advertise, promote, distribute and sell certain products of King Kylie and use certain intellectual property owned by or licensed to King Kylie in connection with the development, manufacture, labelling, packaging, advertising, display, distribution and sale of such products. Due to the recent closing of this transaction, the Company’s initial accounting is incomplete. The Company has not completed its fair value measurement of the identifiable assets acquired and liabilities assumed. The Company expects to establish a preliminary purchase price allocation with respect to this transaction by the end of the third quarter of fiscal 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Fiscal Period | 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 2020” refer to the fiscal year ending June 30, 2020. |
Basis of Presentation | Basis of Presentation The unaudited interim Condensed Consolidated Financial Statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and include the Company’s consolidated domestic and international subsidiaries. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited interim Condensed Consolidated Financial Statements and accompanying footnotes should be read in conjunction with the Company’s Consolidated Financial Statements as of and for the year ended June 30, 2019. In the opinion of management, all adjustments, of a normal recurring nature, considered necessary for a fair presentation have been included in the Condensed Consolidated Financial Statements. The results of operations for the three and six months ended December 31, 2019 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending June 30, 2020. All dollar amounts (other than per share amounts) in the following discussion are in millions of United States (“U.S.”) dollars, unless otherwise indicated. |
Restricted Cash | Restricted CashRestricted 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.Restricted cash is included as a component of Cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, the market value of inventory, the fair value of acquired assets and liabilities associated with acquisitions, the assessment of goodwill, other intangible assets |
Tax Information | Tax Information The effective income tax rate for the three months ended December 31, 2019 and 2018 was 55.7% and (8.9)%, respectively and (324.5)% and (0.1)% for the six months ended December 31, 2019 and 2018, respectively. The positive effective tax rate in the three months ended December 31, 2019 results from reporting losses before income taxes and a benefit for income taxes. The negative effective tax rate in the six months ended December 31, 2019 results from reporting income before taxes and a benefit for income taxes. The negative effective tax rate in the three and six months ended December 31, 2018 results from reporting losses before income taxes and a provision for income taxes. The change in the effective tax rate for the three and six months ended December 31, 2019, as compared to the three and six months ended December 31, 2018, is primarily due to the resolution of foreign uncertain tax positions of $11.8 in the current period and goodwill impairment recorded in the prior period that was not tax deductible. The effective income tax rates vary from the U.S. federal statutory rate of 21% due to the effect of (i) jurisdictions with different statutory rates, (ii) adjustments to the Company’s unrealized tax benefits (“UTBs”) and accrued interest, (iii) non-deductible expenses, (iv) audit settlements and (v) valuation allowance changes. |
Factoring of Receivables | Factoring of Receivables The Company factors a portion of its trade receivables with unrelated third-party factoring companies on both a recourse and non-recourse basis. The Company has entered into factoring agreements with financial institutions and eligible trade receivables are purchased by the relevant financial institution for cash at net invoice value less a factoring fee. Pursuant to the factoring agreements, 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 these arrangements. 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 factoring agreements as sales and derecognizes the sold receivables from the Condensed 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 factoring arrangements is presented as a change in trade receivables within the operating activities section of the Condensed Consolidated Statements of Cash Flows. On September 25, 2019, the Company entered into a factoring agreement with a financial institution, which allows for the transfer of receivables from certain European Coty subsidiaries in exchange for cash (the “European Receivables Purchase Agreement”) on a non-recourse basis. The total outstanding amount permitted among such subsidiaries is €93.0 million. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lease assets and liabilities to be recorded on the balance sheet. The Company adopted this ASU and its related amendments as of July 1, 2019 using the modified retrospective method. Under this approach, prior periods were not restated. Rather, lease balances and other disclosures for prior periods were provided in the notes to the financial statements as previously reported, and the cumulative effect of initially applying the guidance was recognized in the Condensed Consolidated Balance Sheets. The adoption resulted in a cumulative-effect adjustment to retained earnings of approximately $0.7. The new leasing standard includes several optional practical expedients available that entities may elect to apply upon transition. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allows a lessee to carry forward its population of existing leases, the classification of each lease, as well as the treatment of initial direct costs as of the period of adoption. In addition, the Company elected the practical expedient related to lease and non-lease components, as an accounting policy election for all asset classes, which allows a lessee to not separate non-lease from lease components and instead account for consideration paid in a contract as a single lease component. Lastly, the Company did not elect the practical expedient related to hindsight analysis which allows a lessee to use hindsight in determining the lease term and in assessing impairment of the entity’s right-of-use (“ROU”) assets. The Company has made a policy election to not recognize ROU assets and lease liabilities that arise from leases with an initial term of twelve months or less on the Condensed Consolidated Balance Sheets. However, the Company will recognize these lease payments in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term and variable lease payments in the period in which the obligation is incurred. The Company has chosen to apply this accounting policy across all classes of underlying assets. Additionally, upon adoption, the Company utilized a discount rate to determine the present value of the lease payments based on information available as of July 1, 2019. On July 1, 2019, the Company recognized a lease liability of $617.8 and a corresponding ROU asset of $551.3, including the reclassification of approximately $66.4 of unamortized lease incentives and lease loss liabilities, upon the adoption of this standard, with minimal impact on the Condensed Consolidated Statements of Operations. See Note 3 for further information related to Leases. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which provided guidance for improvements to accounting for hedging activities under ASC 815. The amendments better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The Company adopted the standard in the first quarter of fiscal 2020 on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements. In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes , which permitted the use of the OIS rate based on SOFR as a benchmark interest rate for hedge accounting purposes. The Company adopted the standard concurrently with the adoption of ASU No. 2017-12 in the first quarter of fiscal 2020 on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU No. 2016-13”), 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. This guidance and its related amendments will be effective for the Company in fiscal 2021 with early adoption permitted. The Company is evaluating the impact this guidance and its related amendments will have on the Company’s Condensed Consolidated Financial Statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU No. 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and improves the consistency in the application of GAAP for areas of Topic 740 by clarifying and amending existing guidance. The amendment will be effective for the Company in fiscal 2022 with early adoption permitted. The Company is evaluating the impact this guidance will have on the Company’s Condensed Consolidated Financial Statements and related disclosures. |
Derivative Instruments | Foreign Exchange Risk Management 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 and cross-currency swaps 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 foreign exchange forward contracts for which hedge accounting treatment has been applied, which the Company anticipates realizing in the Condensed Consolidated Statements of Operations through fiscal 2021. In addition, in September 2019, the Company entered into cross-currency swap contracts in the notional amount of $550.0 and designated these cross-currency swaps as hedges of its net investment in certain foreign subsidiaries. These cross-currency swaps allow for the exchange of fixed interest payments on the agreed upon notional amounts, between the Company and the related counterparties, effectively converting the Company’s fixed rate U.S. dollar denominated debt to euro denominated debt with more favorable fixed rate interest payments over the contracts’ term. Cross-currency swaps designated as net investment hedges are marked-to-market using the current spot exchange rate as of the end of each reporting period, with gains and losses included in the foreign currency translation component of accumulated other comprehensive income (loss) (“AOCI/(L)”) until the sale or substantial liquidation of the underlying net investments. Interest Rate Risk Management 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 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of lease cost | The following chart provides additional information about the Company’s operating leases for the three and six months ended December 31, 2019: Lease Cost: Three Months Ended December 31, 2019 Six Months Ended December 31, 2019 Operating lease cost $ 30.4 $ 62.1 Short-term lease cost 0.6 1.3 Variable lease cost 15.3 27.7 Sublease income (2.4) (4.6) Net lease cost $ 43.9 $ 86.5 Other information: Operating cash outflows from operating leases $ 31.2 $ 63.1 Right-of-use assets obtained in exchange for lease obligations 29.1 4.1 Weighted-average remaining lease term - real estate 7.6 years Weighted-average discount rate - real estate leases 3.48 % |
Schedule of future minimum lease payments for operating leases | Future minimum lease payments for the Company’s operating leases as of December 31, 2019 are as follows: Fiscal Year Ending June 30, 2020, remaining $ 72.4 2021 114.2 2022 98.1 2023 71.6 2024 60.9 Thereafter 226.4 Total future lease payments 643.6 Less: imputed interest (80.1) Total present value of lease liabilities 563.5 Current operating lease liabilities 109.3 Long-term operating lease liabilities 454.2 Total operating lease liabilities $ 563.5 Table excludes obligations for leases with original terms of 12 months or less which have not been recognized as ROU assets or liabilities in the Condensed Consolidated Balance Sheets. |
Schedule of future minimum rental payments for operating leases | At June 30, 2019, the aggregate future minimum rental commitments under all non-cancelable operating lease agreements were as follows: Fiscal Year Ending June 30, 2020 $ 122.2 2021 111.2 2022 91.3 2023 76.7 2024 67.8 Thereafter 252.3 Total 721.5 Less: sublease income (20.1) Total payments $ 701.4 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of reportable segments | Three Months Ended Six Months Ended SEGMENT DATA 2019 2018 2019 2018 Net revenues: Luxury $ 1,016.5 $ 1,017.5 $ 1,823.2 $ 1,810.4 Consumer Beauty 799.7 967.8 1,516.2 1,796.6 Professional Beauty 528.8 525.9 948.4 935.5 Total $ 2,345.0 $ 2,511.2 $ 4,287.8 $ 4,542.5 Operating income (loss): Luxury $ 148.1 $ 113.6 $ 238.4 $ 162.3 Consumer Beauty 26.9 (906.9) (16.4) (925.5) Professional Beauty 73.5 73.8 97.9 78.8 Corporate (213.1) (85.1) (158.5) (140.9) Total $ 35.4 $ (804.6) $ 161.4 $ (825.3) Reconciliation: Operating income (loss) $ 35.4 $ (804.6) $ 161.4 $ (825.3) Interest expense, net 71.1 68.3 148.5 132.4 Other expense, net 1.3 4.8 3.5 7.5 (Loss) income before income taxes $ (37.0) $ (877.7) $ 9.4 $ (965.2) |
Schedule of product categories exceeding 5% of consolidated net revenues | Presented below are the percentage of revenues associated with the Company’s product categories: Three Months Ended Six Months Ended PRODUCT CATEGORY 2019 2018 2019 2018 Fragrance 44.9 % 43.5 % 43.7 % 42.3 % Color Cosmetics 20.4 23.3 22.2 24.7 Hair Care 26.3 24.4 25.5 24.3 Skin & Body Care 8.4 8.8 8.6 8.7 Total Coty Inc. 100.0 % 100.0 % 100.0 % 100.0 % |
RESTRUCTURING COSTS (Tables)
RESTRUCTURING COSTS (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring costs | Restructuring costs for the three and six months ended December 31, 2019 and 2018 are presented below: Three Months Ended Six Months Ended 2019 2018 2019 2018 Turnaround Plan $ 137.9 $ — $ 146.6 $ — Global Integration Activities (2.7) 22.2 (4.4) 28.7 2018 Restructuring Actions (0.2) (0.3) (1.0) 8.8 Other Restructuring (0.1) (0.4) (0.3) (0.5) Total $ 134.9 $ 21.5 $ 140.9 $ 37.0 Severance and Employee Benefits Third-Party Contract Terminations Other Exit Costs Total Cumulative through December 31, 2019 $ 144.4 $ 0.1 $ 2.1 $ 146.6 Of the expected costs, the Company has incurred cumulative restructuring charges of $495.6 related to approved initiatives through December 31, 2019, 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 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 Fiscal 2020 (4.3) — — (0.1) (4.4) Cumulative through December 31, 2019 $ 391.1 $ 46.2 $ 46.7 $ 11.6 $ 495.6 Of the expected costs, the Company incurred cumulative restructuring charges of $84.2 related to approved initiatives through December 31, 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 Fiscal 2020 (1.0) — — — (1.0) Cumulative through December 31, 2019 $ 77.9 $ 0.1 $ 1.3 $ 4.9 $ 84.2 |
Schedule of related liability balance and restructuring costs | The related liability balance and activity for the Turnaround Plan restructuring costs are presented below: Severance and Employee Benefits Third-Party Contract Terminations Other Exit Costs Total Balance—July 1, 2019 $ — $ — $ — $ — Restructuring charges 145.1 0.1 2.1 147.3 Payments (3.2) — — (3.2) Changes in estimates (0.7) — — (0.7) ASC 842 adoption adjustment — — (1.5) (1.5) Effect of exchange rates 0.4 — — 0.4 Balance—December 31, 2019 $ 141.6 $ 0.1 $ 0.6 $ 142.3 The related liability balance activity for the Global Integration Activities restructuring costs are presented below: Severance and Third-Party Other Total Balance—July 1, 2019 $ 53.7 $ 11.7 $ 1.6 $ 67.0 ASC 842 adoption adjustment — — (1.4) (1.4) Payments (15.6) (3.1) (0.1) (18.8) Changes in estimates (4.3) — (0.1) (4.4) Effect of exchange rates (0.6) — — (0.6) Balance—December 31, 2019 $ 33.2 $ 8.6 $ — $ 41.8 The related liability balance and activity of restructuring costs for the 2018 Restructuring Actions are presented below: Severance and Employee Benefits Third-Party Contract Terminations Other Exit Costs Total Program Costs Balance—July 1, 2019 $ 15.5 $ 0.1 $ 1.5 $ 17.1 Payments (7.1) (0.1) — (7.2) Changes in estimates (1.0) — — (1.0) ASC 842 adoption adjustment — — (1.2) (1.2) Effect of exchange rates (0.3) — — (0.3) Balance—December 31, 2019 $ 7.1 $ — $ 0.3 $ 7.4 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories as of December 31, 2019 and June 30, 2019 are presented below: December 31, June 30, Raw materials $ 231.2 $ 259.5 Work-in-process 9.7 20.4 Finished goods 774.9 873.4 Total inventories $ 1,015.8 $ 1,153.3 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Goodwill as of December 31, 2019 and June 30, 2019 is presented below: Luxury Consumer Beauty Professional Beauty Total 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 Changes during the period ended December 31, 2019 Disposition of business $ — $ (23.4) $ — $ (23.4) Foreign currency translation (25.3) (18.7) 9.6 (34.4) Gross balance at December 31, 2019 $ 3,300.1 $ 4,802.5 $ 945.3 $ 9,047.9 Accumulated impairments (403.7) (3,628.2) — (4,031.9) Net balance at December 31, 2019 $ 2,896.4 $ 1,174.3 $ 945.3 $ 5,016.0 |
Schedule of indefinite-lived intangible assets | Other intangible assets, net as of December 31, 2019 and June 30, 2019 are presented below: December 31, June 30, Indefinite-lived other intangible assets $ 2,727.0 $ 2,729.8 Finite-lived other intangible assets, net 4,265.5 4,692.5 Total Other intangible assets, net $ 6,992.5 $ 7,422.3 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, 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 30, 2019 $ 177.4 $ 1,324.7 $ 1,227.7 $ 2,729.8 Changes during the period ended December 31, 2019 Foreign currency translation $ (2.4) $ (4.1) $ 3.7 $ (2.8) Gross balance at December 31, 2019 $ 403.4 $ 1,689 $ 1,261.5 $ 3,353.9 Accumulated impairments (228.4) (368.4) (30.1) (626.9) Net balance at December 31, 2019 $ 175.0 $ 1,320.6 $ 1,231.4 $ 2,727.0 |
Schedule of finite-lived intangible assets | Other intangible assets, net as of December 31, 2019 and June 30, 2019 are presented below: December 31, June 30, Indefinite-lived other intangible assets $ 2,727.0 $ 2,729.8 Finite-lived other intangible assets, net 4,265.5 4,692.5 Total Other intangible assets, net $ 6,992.5 $ 7,422.3 Cost Accumulated Amortization Accumulated Impairment Net June 30, 2019 License agreements $ 3,245.3 $ (874.5) $ (19.6) $ 2,351.2 Customer relationships 1,951.6 (642.0) (5.5) 1,304.1 Trademarks 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 December 31, 2019 License agreements $ 3,209.5 $ (937.7) $ (19.6) $ 2,252.2 Customer relationships 1,746.1 (622.0) (5.5) 1,118.6 Trademarks 914.1 (233.6) (0.5) 680.0 Product formulations and technology 356.3 (141.6) — 214.7 Total $ 6,226.0 $ (1,934.9) $ (25.6) $ 4,265.5 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The Company’s debt balances consisted of the following as of December 31, 2019 and June 30, 2019, respectively: December 31, 2019 June 30, Short-term debt $ 0.1 $ 4.2 2018 Coty Credit Agreement 2018 Coty Revolving Credit Facility due April 2023 694.9 792.1 2018 Coty Term A Facility due April 2023 3,034.8 3,147.0 2018 Coty Term B Facility due April 2025 2,317.4 2,342.3 Senior Unsecured Notes 2026 Dollar Notes due April 2026 550.0 550.0 2023 Euro Notes due April 2023 616.4 625.0 2026 Euro Notes due April 2026 280.2 284.1 Other long-term debt and capital lease obligations 0.9 1.1 Total debt 7,494.7 7,745.8 Less: Short-term debt and current portion of long-term debt (188.0) (193.8) Total Long-term debt 7,306.7 7,552.0 Less: Unamortized debt issuance costs (62.9) (71.3) Less: Discount on Long-term debt (10.0) (10.8) Total Long-term debt, net $ 7,233.8 $ 7,469.9 |
Summary total net leverage ratio requirement | 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% 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) December 31, 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, including Adjusted EBITDA, used within the definition of Total Net Leverage Ratio have the meanings ascribed to them within the 2018 Coty Credit Agreement, as amended). Adjusted EBITDA, as defined in the 2018 Coty Credit Agreement, as amended, includes certain add backs related to cost savings, operating expense reductions and future unrealized synergies subject to certain limits and conditions as specified in the 2018 Coty Credit Agreement. |
Schedule of line of credit facilities | Fair Value of Debt December 31, 2019 June 30, 2019 Carrying Fair Carrying Fair 2018 Coty Credit Agreement $ 6,047.1 $ 5,886.9 $ 6,281.4 $ 6,058.9 Senior Unsecured Notes 1,446.6 1,510.7 1,459.1 1,439.6 |
Schedule of maturities of long-term debt | Aggregate maturities of the Company’s long-term debt, including the current portion of long-term debt and excluding capital lease obligations as of December 31, 2019, are presented below: Fiscal Year Ending June 30, 2020, remaining $ 93.8 2021 187.6 2022 187.6 2023 3,959.5 2024 23.5 Thereafter 3,041.7 Total $ 7,493.7 |
INTEREST EXPENSE, NET (Tables)
INTEREST EXPENSE, NET (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Interest Income (Expense), Net [Abstract] | |
Interest expense, net | Interest expense, net for the three and six months ended December 31, 2019 and 2018 is presented below: Three Months Ended Six Months Ended 2019 2018 2019 2018 Interest expense $ 66.3 $ 74.1 $ 141.8 $ 146.5 Foreign exchange losses (gains), net of derivative contracts 4.9 (0.2) 8.7 (3.8) Interest income (0.1) (5.6) (2.0) (10.3) Total interest expense, net $ 71.1 $ 68.3 $ 148.5 $ 132.4 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of net benefit costs | The components of net periodic benefit cost for pension plans and other post-employment benefit plans recognized in the Condensed Consolidated Statements of Operations are presented below: Three Months Ended December 31, Pension Plans Other Post- Employment Benefits U.S. International Total 2019 2018 2019 2018 2019 2018 2019 2018 Service cost $ — $ — $ 9.2 $ 8.6 $ 0.4 $ 0.3 $ 9.6 $ 8.9 Interest cost 0.3 0.2 2.3 3.3 0.6 0.5 3.2 4.0 Expected return on plan assets — — (2.1) (2.1) — — (2.1) (2.1) Amortization of prior service cost (credit) — — (0.2) 0.1 (1.5) (1.5) (1.7) (1.4) Amortization of net (gain) loss 0.3 (0.2) — (0.1) — — 0.3 (0.3) Net periodic benefit cost (credit) $ 0.6 $ — $ 9.2 $ 9.8 $ (0.5) $ (0.7) $ 9.3 $ 9.1 Six Months Ended December 31, Pension Plans Other Post- U.S. International Total 2019 2018 2019 2018 2019 2018 2019 2018 Service cost $ — $ — $ 18.7 $ 16.8 $ 0.9 $ 0.6 $ 19.6 $ 17.4 Interest cost 0.4 0.4 4.6 6.6 1.0 1.0 6.0 8.0 Expected return on plan assets — — (4.2) (4.2) — — (4.2) (4.2) Amortization of prior service cost (credit) — — (0.4) 0.2 (3.1) (3.0) (3.5) (2.8) Amortization of net (gain) loss 0.4 (0.4) — 0.2 — — 0.4 (0.2) Net periodic benefit cost (credit) $ 0.8 $ — $ 18.7 $ 19.6 $ (1.2) $ (1.4) $ 18.3 $ 18.2 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Amount of gains and losses recognized in Other comprehensive income (loss) | The amount of gains and losses recognized in Other comprehensive income (loss) (“OCI”) in the Condensed 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 Three Months Ended Six Months Ended 2019 2018 2019 2018 Foreign exchange forward contracts $ 0.2 $ 0.4 $ 0.6 $ 0.4 Interest rate swap contracts 4.1 (21.0) 3.6 (15.9) Cross-currency swap contracts (22.6) — (18.7) — Net investment hedge (99.3) 74.3 58.0 78.6 |
Amount of gains and losses recognized in Other comprehensive income (loss) | The amount of gains and losses recognized in Other comprehensive income (loss) (“OCI”) in the Condensed 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 Three Months Ended Six Months Ended 2019 2018 2019 2018 Foreign exchange forward contracts $ 0.2 $ 0.4 $ 0.6 $ 0.4 Interest rate swap contracts 4.1 (21.0) 3.6 (15.9) Cross-currency swap contracts (22.6) — (18.7) — Net investment hedge (99.3) 74.3 58.0 78.6 |
Amount of gains and losses reclassified from AOCI(L) | The amount of gains and losses reclassified from AOCI/(L) to the Condensed Consolidated Statements of Operations related to the Company’s derivative financial instruments which are designated as hedging instruments is presented below: Location and Amount of Gain (Loss) Recognized in Income on Cash Flow Hedging Relationships Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Cost of sales Interest expense, net Cost of sales Interest expense, net Cost of sales Interest expense, net Cost of sales Interest expense, net Foreign exchange forward contracts: Amount of gain (loss) reclassified from AOCI into income $ 1.0 $ — $ — $ — $ 1.2 $ — $ — $ — Interest rate swap contracts: Amount of gain (loss) reclassified from AOCI into income — (1.2) — 3.9 — (0.3) — 7.7 |
Derivatives not designated as hedging | The amount of gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments is presented below: Condensed Consolidated Statements of Operations Three Months Ended Six Months Ended 2019 2018 2019 2018 Foreign exchange contracts Selling, general and administrative expenses $ (0.7) $ 0.1 $ (0.9) $ 0.1 Foreign exchange contracts Interest expense, net 6.6 (5.6) 11.3 (1.6) Foreign exchange contracts Other expense, net (0.2) 0.1 (0.3) 1.4 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Dividends declared | The following dividends were declared during the six months ended December 31, 2019: 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 2020 August 28, 2019 Quarterly $ 0.125 September 9, 2019 $ 0.125 September 30, 2019 $ 63.3 $ 30.9 $ 1.1 November 6, 2019 Quarterly $ 0.125 November 18, 2019 $ 0.125 December 27, 2019 $ 65.5 $ 29.3 $ 1.3 Fiscal 2020 $ 0.250 $ 0.250 $ 128.8 $ 60.2 $ 2.4 (a) The September 30, 2019 and December 27, 2019 stock dividend payment of $30.9 and $29.3 resulted in the issuance of 3.2 million and 2.4 million shares of Class A Common Stock, respectively. (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 Condensed Consolidated Balance Sheet. |
Schedule of accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustments (Loss) gain on Cash Flow Hedges Gain on Net Investment Hedge Other Foreign Currency Translation Adjustments Pension and Other Post-Employment Benefit Plans (a) Total Balance—July 1, 2019 $ (13.3) $ 214.8 $ (257.4) $ (2.9) $ (58.8) Other comprehensive income (loss) before reclassifications 4.9 39.3 (60.0) — (15.8) Net amounts reclassified from AOCI/(L) 0.2 — — (3.1) (2.9) Net current-period other comprehensive income (loss) 5.1 39.3 (60.0) (3.1) (18.7) Balance—December 31, 2019 $ (8.2) $ 254.1 $ (317.4) $ (6.0) $ (77.5) (a) For the six months ended December 31, 2019, net amounts reclassified from AOCI/(L) related to pensions and other post-employment benefit plans included amortization of prior service credits and actuarial loss of $(3.1), net of tax of $0.0. Foreign Currency Translation Adjustments Gain on Cash Flow Hedges Gain on Net Investment Hedge Other Foreign Currency Translation Adjustments Pension and Other Post-Employment Benefit Plans Total Balance—July 1, 2018 $ 31.7 $ 115.0 $ (44.3) $ 56.4 $ 158.8 Other comprehensive (loss) income before reclassifications (11.8) 78.6 (187.7) — (120.9) Net amounts reclassified from AOCI/(L) (5.9) — — 1.6 (4.3) Net current-period other comprehensive (loss) income (17.7) 78.6 (187.7) 1.6 (125.2) Balance—December 31, 2018 $ 14.0 $ 193.6 $ (232.0) $ 58.0 $ 33.6 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation expense | Share-based compensation expense is recognized on a straight-line basis over the requisite service period. Total share-based compensation is shown in the table below: Three Months Ended Six Months Ended 2019 2018 2019 2018 Equity plan expense $ 10.3 $ 4.4 $ 16.5 $ 10.8 Liability plan (income) expense — (2.6) — (2.6) Fringe expense 1.1 0.5 1.2 0.5 Total share-based compensation expense $ 11.4 $ 2.3 $ 17.7 $ 8.7 |
NET (LOSS) INCOME ATTRIBUTABL_2
NET (LOSS) INCOME ATTRIBUTABLE TO COTY INC. PER COMMON SHARE (Tables) | 6 Months Ended |
Dec. 31, 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 income per share (“EPS”) computations is presented below: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in millions, except per share data) Net (loss) income attributable to Coty Inc. $ (21.1) $ (960.6) $ 31.2 $ (972.7) Weighted-average common shares outstanding—Basic 758.1 751.1 756.1 751.0 Effect of dilutive stock options and Series A/A-1 Preferred Stock (a) — — 1.5 — Effect of restricted stock and RSUs (b) — — 3.6 — Weighted-average common shares outstanding—Diluted 758.1 751.1 761.2 751.0 Net (loss) income attributable to Coty Inc. per common share: Basic $ (0.03) $ (1.28) $ 0.04 $ (1.30) Diluted (0.03) (1.28) 0.04 (1.30) (a) For the six months ended December 31, 2019, outstanding stock options and Series A/A-1 Preferred Stock with purchase or conversion rights to purchase 24.8 million shares of Common Stock were excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. For the three months ended December 31, 2019 and three and six months ended December 31, 2018, 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) For the six months ended December 31, 2019, there were 2.9 million anti-dilutive RSUs excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. For the three months ended December 31, 2019 and three and six months ended December 31, 2018, RSUs were excluded in the computation of diluted loss per share due to the net loss incurred during the period. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 25, 2019EUR (€) | Jul. 01, 2019USD ($) | Jun. 30, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Restricted cash | $ 50.7 | $ 50.7 | $ 40 | ||||
Effective income tax rate, percentage | 55.70% | (8.90%) | (324.50%) | (0.10%) | |||
Effective income tax rate reconciliation, resolution of foreign uncertain tax positions, amount | $ 11.8 | $ 11.8 | |||||
Gross unrecognized tax benefits | 326.9 | 326.9 | 336.1 | ||||
Unrecognized tax benefits that would impact effective tax rate | 151.9 | 151.9 | |||||
Unrecognized tax benefits, net | 169.3 | 169.3 | 179.9 | ||||
Interest and penalties expense | (1.3) | $ 1.5 | 0.1 | $ 2.7 | |||
Gross accrued interest and penalties | 17.4 | 17.4 | $ 17.3 | ||||
Reasonably possible decrease in UTBs (up to) | $ 17.8 | $ 17.8 | |||||
Recourse obligation, percentage of net invoice value (up to) | 10.00% | 10.00% | |||||
Receivables purchase agreement, facility limit | € | € 93 | ||||||
Total present value of lease liabilities | $ 563.5 | $ 563.5 | |||||
Operating lease right-of-use assets | $ 505.7 | $ 505.7 | |||||
Adoption of ASC 842 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Adjustment due to the adoption of new accounting principle | $ (0.7) | ||||||
Total present value of lease liabilities | 617.8 | ||||||
Operating lease right-of-use assets | 551.3 | ||||||
Retained Earnings | Adoption of ASC 842 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Adjustment due to the adoption of new accounting principle | (0.7) | ||||||
Unamortized Lease Incentives and Lease Loss Liabilities | Adoption of ASC 842 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Adjustment due to the adoption of new accounting principle | $ (66.4) |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Dec. 31, 2019 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 10 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 25 years |
LEASES - Lease cost (Details)
LEASES - Lease cost (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Lease Cost: | ||
Operating lease cost | $ 30.4 | $ 62.1 |
Short-term lease cost | 0.6 | 1.3 |
Variable lease cost | 15.3 | 27.7 |
Sublease income | (2.4) | (4.6) |
Net lease cost | 43.9 | 86.5 |
Other information: | ||
Operating cash outflows from operating leases | 31.2 | 63.1 |
Right-of-use assets obtained in exchange for lease obligations | $ 29.1 | $ 4.1 |
Weighted-average remaining lease term - real estate | 7 years 7 months 6 days | 7 years 7 months 6 days |
Weighted-average discount rate - real estate leases | 3.48% | 3.48% |
LEASES - Minimum lease payments
LEASES - Minimum lease payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Minimum lease payments | |
2020, remaining | $ 72.4 |
2021 | 114.2 |
2022 | 98.1 |
2023 | 71.6 |
2024 | 60.9 |
Thereafter | 226.4 |
Total future lease payments | 643.6 |
Less: imputed interest | (80.1) |
Total present value of lease liabilities | 563.5 |
Current operating lease liabilities | 109.3 |
Long-term operating lease liabilities | 454.2 |
Total operating lease liabilities | $ 563.5 |
LEASES - Minimum rental commitm
LEASES - Minimum rental commitments (Details) $ in Millions | Jun. 30, 2019USD ($) |
Minimum rental commitments | |
2020 | $ 122.2 |
2021 | 111.2 |
2022 | 91.3 |
2023 | 76.7 |
2024 | 67.8 |
Thereafter | 252.3 |
Total | 721.5 |
Less: sublease income | (20.1) |
Total payments | $ 701.4 |
SEGMENT REPORTING - Reporting S
SEGMENT REPORTING - Reporting Segments (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Number of operating segments | segment | 3 | |||
Net revenues | $ 2,345 | $ 2,511.2 | $ 4,287.8 | $ 4,542.5 |
Operating income (loss) | 35.4 | (804.6) | 161.4 | (825.3) |
Interest expense, net | 71.1 | 68.3 | 148.5 | 132.4 |
Other expense, net | 1.3 | 4.8 | 3.5 | 7.5 |
(Loss) income before income taxes | (37) | (877.7) | 9.4 | (965.2) |
Luxury | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,016.5 | 1,017.5 | 1,823.2 | 1,810.4 |
Consumer Beauty | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 799.7 | 967.8 | 1,516.2 | 1,796.6 |
Professional Beauty | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 528.8 | 525.9 | 948.4 | 935.5 |
Operating Segments | Luxury | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 148.1 | 113.6 | 238.4 | 162.3 |
Operating Segments | Consumer Beauty | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 26.9 | (906.9) | (16.4) | (925.5) |
Operating Segments | Professional Beauty | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 73.5 | 73.8 | 97.9 | 78.8 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ (213.1) | $ (85.1) | $ (158.5) | $ (140.9) |
SEGMENT REPORTING - Reportable
SEGMENT REPORTING - Reportable Segments, Revenue by Product Category (Details) - Product Concentration Risk - Sales Revenue | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Percentage of consolidated revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Fragrance | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of consolidated revenues | 44.90% | 43.50% | 43.70% | 42.30% |
Color Cosmetics | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of consolidated revenues | 20.40% | 23.30% | 22.20% | 24.70% |
Hair Care | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of consolidated revenues | 26.30% | 24.40% | 25.50% | 24.30% |
Skin & Body Care | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of consolidated revenues | 8.40% | 8.80% | 8.60% | 8.70% |
BUSINESS COMBINATIONS, ASSET _2
BUSINESS COMBINATIONS, ASSET ACQUISITIONS AND DIVESTITURES - Business Combinations (Details) | 6 Months Ended |
Dec. 31, 2019business | |
Business Combinations [Abstract] | |
Number of businesses acquired | 0 |
BUSINESS COMBINATIONS, ASSET _3
BUSINESS COMBINATIONS, ASSET ACQUISITIONS AND DIVESTITURES - Business Divestitures (Details) - USD ($) $ in Millions | Sep. 16, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale of business | $ 0 | $ 0 | $ 84.5 | $ 0 | |
Discontinued Operations, Disposed of by Sale | Younique, LLC | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture | $ 50 | ||||
Promissory note face value | $ 27.9 | ||||
Gain on sale of business | $ (84.5) |
BUSINESS COMBINATIONS, ASSET _4
BUSINESS COMBINATIONS, ASSET ACQUISITIONS AND DIVESTITURES - Other Transactions (Details) | Jul. 31, 2019 |
Southeastern Asian Subsidiary | |
Noncontrolling Interest [Line Items] | |
Ownership percentage by noncontrolling owners | 49.00% |
ACQUISITION AND DIVESTITURE-R_2
ACQUISITION AND DIVESTITURE-RELATED COSTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Combinations [Abstract] | ||||
Acquisition-related Costs | $ 4.1 | $ 0 | $ 4.1 | $ 0 |
Divestiture-related Costs | $ 31.9 | $ 0 | $ 31.9 | $ 0 |
RESTRUCTURING COSTS - Restructu
RESTRUCTURING COSTS - Restructuring Costs by Program (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | $ 134.9 | $ 21.5 | $ 140.9 | $ 37 | |||
Turnaround Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 137.9 | 0 | 146.6 | 0 | |||
Global Integration Activities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | (2.7) | 22.2 | (4.4) | 28.7 | $ 28.5 | $ 106.5 | $ 365 |
2018 Restructuring Actions | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | (0.2) | (0.3) | (1) | 8.8 | |||
Other Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | $ (0.1) | $ (0.4) | $ (0.3) | $ (0.5) |
RESTRUCTURING COSTS - Narrative
RESTRUCTURING COSTS - Narrative (Details) - USD ($) $ in Millions | Jul. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Turnaround Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related activities, plan term | 4 years | ||||||
Restructuring costs incurred to date | $ 146.6 | ||||||
Additional restructuring charges | 160 | ||||||
Restructuring reserve | 142.3 | $ 0 | |||||
Payments for restructuring | 3.2 | ||||||
Turnaround Plan | Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Payments for restructuring | $ 7.3 | $ 102.7 | $ 32.3 | ||||
Global Integration Activities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs incurred to date | 495.6 | ||||||
Restructuring reserve | 41.8 | 67 | |||||
Payments for restructuring | 18.8 | ||||||
Global Integration Activities | Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Payments for restructuring | 0.3 | 16 | 25.5 | ||||
2018 Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs incurred to date | 84.2 | ||||||
Restructuring reserve | 7.4 | 17.1 | |||||
Payments for restructuring | 7.2 | ||||||
2018 Restructuring | Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Payments for restructuring | $ 0.2 | 2.4 | 4.8 | ||||
Other Restructuring Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring income (expense) | (0.3) | $ (0.5) | |||||
Restructuring liabilities assumed | $ 3.4 | $ 9 | |||||
Other Restructuring Plan | Forecast | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Payments for restructuring | $ 2 | $ 1.4 |
RESTRUCTURING COSTS - Restruc_2
RESTRUCTURING COSTS - Restructuring Costs by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | $ 134.9 | $ 21.5 | $ 140.9 | $ 37 | |||
Turnaround Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 137.9 | 0 | 146.6 | 0 | |||
Cumulative through December 31, 2019 | 146.6 | 146.6 | |||||
Global Integration Activities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | (2.7) | $ 22.2 | (4.4) | $ 28.7 | $ 28.5 | $ 106.5 | $ 365 |
Cumulative through December 31, 2019 | 495.6 | 495.6 | |||||
2018 Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | (1) | 16.8 | 68.4 | ||||
Cumulative through December 31, 2019 | 84.2 | 84.2 | |||||
Severance and Employee Benefits | Turnaround Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative through December 31, 2019 | 144.4 | 144.4 | |||||
Severance and Employee Benefits | Global Integration Activities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | (4.3) | (6) | 67.5 | 333.9 | |||
Cumulative through December 31, 2019 | 391.1 | 391.1 | |||||
Severance and Employee Benefits | 2018 Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | (1) | 15.4 | 63.5 | ||||
Cumulative through December 31, 2019 | 77.9 | 77.9 | |||||
Third-Party Contract Terminations | Turnaround Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative through December 31, 2019 | 0.1 | 0.1 | |||||
Third-Party Contract Terminations | Global Integration Activities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 0 | 4.5 | 19.3 | 22.4 | |||
Cumulative through December 31, 2019 | 46.2 | 46.2 | |||||
Third-Party Contract Terminations | 2018 Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 0 | (0.1) | 0.2 | ||||
Cumulative through December 31, 2019 | 0.1 | 0.1 | |||||
Fixed Asset Write-offs | Global Integration Activities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 0 | 27.8 | 14.3 | 4.6 | |||
Cumulative through December 31, 2019 | 46.7 | 46.7 | |||||
Fixed Asset Write-offs | 2018 Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 0 | 0 | 1.3 | ||||
Cumulative through December 31, 2019 | 1.3 | 1.3 | |||||
Other Exit Costs | Turnaround Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative through December 31, 2019 | 2.1 | 2.1 | |||||
Other Exit Costs | Global Integration Activities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | (0.1) | 2.2 | 5.4 | $ 4.1 | |||
Cumulative through December 31, 2019 | 11.6 | 11.6 | |||||
Other Exit Costs | 2018 Restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring costs | 0 | $ 1.5 | $ 3.4 | ||||
Cumulative through December 31, 2019 | $ 4.9 | $ 4.9 |
RESTRUCTURING COSTS - Restruc_3
RESTRUCTURING COSTS - Restructuring Roll Forward (Details) $ in Millions | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Turnaround Plan | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 0 |
Restructuring charges | 147.3 |
Payments | (3.2) |
Changes in estimates | (0.7) |
ASC 842 adoption adjustment | (1.5) |
Effect of exchange rates | 0.4 |
Ending balance | 142.3 |
Global Integration Activities | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 67 |
Payments | (18.8) |
Changes in estimates | (4.4) |
ASC 842 adoption adjustment | (1.4) |
Effect of exchange rates | (0.6) |
Ending balance | 41.8 |
2018 Restructuring | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 17.1 |
Payments | (7.2) |
Changes in estimates | (1) |
ASC 842 adoption adjustment | (1.2) |
Effect of exchange rates | (0.3) |
Ending balance | 7.4 |
Severance and Employee Benefits | Turnaround Plan | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Restructuring charges | 145.1 |
Payments | (3.2) |
Changes in estimates | (0.7) |
ASC 842 adoption adjustment | 0 |
Effect of exchange rates | 0.4 |
Ending balance | 141.6 |
Severance and Employee Benefits | Global Integration Activities | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 53.7 |
Payments | (15.6) |
Changes in estimates | (4.3) |
ASC 842 adoption adjustment | 0 |
Effect of exchange rates | (0.6) |
Ending balance | 33.2 |
Severance and Employee Benefits | 2018 Restructuring | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 15.5 |
Payments | (7.1) |
Changes in estimates | (1) |
ASC 842 adoption adjustment | 0 |
Effect of exchange rates | (0.3) |
Ending balance | 7.1 |
Third-Party Contract Terminations | Turnaround Plan | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Restructuring charges | 0.1 |
Payments | 0 |
Changes in estimates | 0 |
ASC 842 adoption adjustment | 0 |
Effect of exchange rates | 0 |
Ending balance | 0.1 |
Third-Party Contract Terminations | Global Integration Activities | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 11.7 |
Payments | (3.1) |
Changes in estimates | 0 |
ASC 842 adoption adjustment | 0 |
Effect of exchange rates | 0 |
Ending balance | 8.6 |
Third-Party Contract Terminations | 2018 Restructuring | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0.1 |
Payments | (0.1) |
Changes in estimates | 0 |
ASC 842 adoption adjustment | 0 |
Effect of exchange rates | 0 |
Ending balance | 0 |
Other Exit Costs | Turnaround Plan | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Restructuring charges | 2.1 |
Payments | 0 |
Changes in estimates | 0 |
ASC 842 adoption adjustment | (1.5) |
Effect of exchange rates | 0 |
Ending balance | 0.6 |
Other Exit Costs | Global Integration Activities | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 1.6 |
Payments | (0.1) |
Changes in estimates | (0.1) |
ASC 842 adoption adjustment | (1.4) |
Effect of exchange rates | 0 |
Ending balance | 0 |
Other Exit Costs | 2018 Restructuring | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 1.5 |
Payments | 0 |
Changes in estimates | 0 |
ASC 842 adoption adjustment | (1.2) |
Effect of exchange rates | 0 |
Ending balance | $ 0.3 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jun. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 231.2 | $ 259.5 |
Work-in-process | 9.7 | 20.4 |
Finished goods | 774.9 | 873.4 |
Total inventories | $ 1,015.8 | $ 1,153.3 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Changes in Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | |
Goodwill [Roll Forward] | ||
Gross beginning balance | $ 9,105.7 | |
Accumulated impairments | (4,031.9) | $ (4,031.9) |
Net beginning balance | 5,073.8 | |
Disposition of business | (23.4) | |
Foreign currency translation | (34.4) | |
Gross ending balance | 9,047.9 | |
Accumulated impairments | (4,031.9) | (4,031.9) |
Net ending balance | 5,016 | |
Luxury | ||
Goodwill [Roll Forward] | ||
Gross beginning balance | 3,325.4 | |
Accumulated impairments | (403.7) | (403.7) |
Net beginning balance | 2,921.7 | |
Disposition of business | 0 | |
Foreign currency translation | (25.3) | |
Gross ending balance | 3,300.1 | |
Accumulated impairments | (403.7) | (403.7) |
Net ending balance | 2,896.4 | |
Consumer Beauty | ||
Goodwill [Roll Forward] | ||
Gross beginning balance | 4,844.6 | |
Accumulated impairments | (3,628.2) | (3,628.2) |
Net beginning balance | 1,216.4 | |
Disposition of business | (23.4) | |
Foreign currency translation | (18.7) | |
Gross ending balance | 4,802.5 | |
Accumulated impairments | (3,628.2) | (3,628.2) |
Net ending balance | 1,174.3 | |
Professional Beauty | ||
Goodwill [Roll Forward] | ||
Gross beginning balance | 935.7 | |
Accumulated impairments | 0 | 0 |
Net beginning balance | 935.7 | |
Disposition of business | 0 | |
Foreign currency translation | 9.6 | |
Gross ending balance | 945.3 | |
Accumulated impairments | 0 | $ 0 |
Net ending balance | $ 945.3 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Other Intangible Assets, Net (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jun. 30, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-lived other intangible assets | $ 2,727 | $ 2,729.8 |
Finite-lived other intangible assets, net | 4,265.5 | 4,692.5 |
Total Other intangible assets, net | $ 6,992.5 | $ 7,422.3 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Indefinite Lived Intangible Assets (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross beginning balance | $ 3,356.7 | |
Accumulated impairments | (626.9) | $ (626.9) |
Net beginning balance | 2,729.8 | |
Foreign currency translation | (2.8) | |
Gross ending balance | 3,353.9 | |
Accumulated impairments | (626.9) | (626.9) |
Net ending balance | 2,727 | |
Luxury | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross beginning balance | 405.8 | |
Accumulated impairments | (228.4) | (228.4) |
Net beginning balance | 177.4 | |
Foreign currency translation | (2.4) | |
Gross ending balance | 403.4 | |
Accumulated impairments | (228.4) | (228.4) |
Net ending balance | 175 | |
Consumer Beauty | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross beginning balance | 1,693.1 | |
Accumulated impairments | (368.4) | (368.4) |
Net beginning balance | 1,324.7 | |
Foreign currency translation | (4.1) | |
Gross ending balance | 1,689 | |
Accumulated impairments | (368.4) | (368.4) |
Net ending balance | 1,320.6 | |
Professional Beauty | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross beginning balance | 1,257.8 | |
Accumulated impairments | (30.1) | (30.1) |
Net beginning balance | 1,227.7 | |
Foreign currency translation | 3.7 | |
Gross ending balance | 1,261.5 | |
Accumulated impairments | (30.1) | $ (30.1) |
Net ending balance | $ 1,231.4 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jun. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 6,226 | $ 6,590.5 |
Accumulated Amortization | (1,934.9) | (1,872.4) |
Accumulated Impairment | (25.6) | (25.6) |
Net | 4,265.5 | 4,692.5 |
License agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 3,209.5 | 3,245.3 |
Accumulated Amortization | (937.7) | (874.5) |
Accumulated Impairment | (19.6) | (19.6) |
Net | 2,252.2 | 2,351.2 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,746.1 | 1,951.6 |
Accumulated Amortization | (622) | (642) |
Accumulated Impairment | (5.5) | (5.5) |
Net | 1,118.6 | 1,304.1 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 914.1 | 1,039.5 |
Accumulated Amortization | (233.6) | (229.4) |
Accumulated Impairment | (0.5) | (0.5) |
Net | 680 | 809.6 |
Product formulations and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 356.3 | 354.1 |
Accumulated Amortization | (141.6) | (126.5) |
Accumulated Impairment | 0 | 0 |
Net | $ 214.7 | $ 227.6 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||||
Asset impairment charges | $ 0 | $ 965.1 | $ 0 | $ 977.7 | |
Amortization expense | 76.8 | $ 88.5 | 161.1 | $ 181 | |
Trademarks | |||||
Goodwill [Line Items] | |||||
Asset impairment charges | $ 12.6 | ||||
Younique, LLC | Discontinued Operations, Disposed of by Sale | |||||
Goodwill [Line Items] | |||||
Goodwill | 23.4 | 23.4 | |||
Other intangible assets | $ 228.6 | $ 228.6 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||
Short-term debt | $ 0.1 | $ 4.2 |
Long-term debt | 7,493.7 | |
Other long-term debt and capital lease obligations | 0.9 | 1.1 |
Total debt | 7,494.7 | 7,745.8 |
Less: Short-term debt and current portion of long-term debt | (188) | (193.8) |
Total Long-term debt | 7,306.7 | 7,552 |
Less: Unamortized debt issuance costs | (62.9) | (71.3) |
Less: Discount on Long-term debt | (10) | (10.8) |
Total Long-term debt, net | 7,233.8 | 7,469.9 |
Line of Credit | 2018 Coty Revolving Credit Facility due April 2023 | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 694.9 | 792.1 |
Line of Credit | 2018 Coty Term A Facility due April 2023 | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | 3,034.8 | 3,147 |
Line of Credit | 2018 Coty Term B Facility due April 2025 | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,317.4 | 2,342.3 |
Line of Credit | 2026 Dollar Notes due April 2026 | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 550 | 550 |
Line of Credit | 2023 Euro Notes due April 2023 | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | 616.4 | 625 |
Line of Credit | 2026 Euro Notes due April 2026 | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 280.2 | $ 284.1 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Jun. 27, 2019USD ($) | Jun. 26, 2019 | Sep. 30, 2018 | Apr. 05, 2018EUR (€) | Dec. 31, 2019USD ($)quarter | Jun. 30, 2019USD ($) | Apr. 05, 2018USD ($) |
Debt Instrument [Line Items] | |||||||
Short-term debt | $ 100,000 | $ 4,200,000 | |||||
Undrawn letters of credit and bank guarantees | 5,000,000 | 6,300,000 | |||||
Bank Guarantee | |||||||
Debt Instrument [Line Items] | |||||||
Undrawn letters of credit and bank guarantees | $ 55,300,000 | $ 97,100,000 | |||||
Incurrence Incremental Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Net leverage ratio | 5 | 5.25 | |||||
2018 Coty Term A Facility | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | € | € 2,035,000,000 | ||||||
2018 Coty Term B Facility | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | € | € 850,000,000 | ||||||
Coty Term Loan B Facility due October 2022 | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate, percentage | 2.25% | ||||||
Coty Term Loan B Facility due October 2022 | Alternative Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate, percentage | 1.25% | ||||||
Coty Term Loan B Facility due October 2022 | Euro Interbank Offered Rate (Euribor) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate, percentage | 2.50% | ||||||
Senior Unsecured Notes | 2026 Dollar Notes | |||||||
Debt Instrument [Line Items] | |||||||
Amount of term loan facility | $ 550,000,000 | ||||||
Debt instrument, interest rate, stated percentage | 6.50% | 6.50% | |||||
Senior Unsecured Notes | 2026 Euro Notes | |||||||
Debt Instrument [Line Items] | |||||||
Amount of term loan facility | € | € 250,000,000 | ||||||
Debt instrument, interest rate, stated percentage | 4.75% | 4.75% | |||||
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 2,750,000,000 | ||||||
Decrease in total commitments | $ 500,000,000 | ||||||
Total Net Leverage Ratio, material acquisition, number of fiscal quarters | quarter | 4 | ||||||
Total Net Leverage Ratio, material acquisition, number of fiscal quarters, no greater than the maximum Total Net Leverage Ratio | quarter | 2 | ||||||
Line of Credit | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Applicable leverage ratio following the closing of any material acquisition | 5.95 | ||||||
Line of Credit | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Applicable leverage ratio following the closing of any material acquisition | 1 | ||||||
Line of Credit | 2023 Euro Notes | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Amount of term loan facility | € | € 550,000,000 | ||||||
Debt instrument, interest rate, stated percentage | 4.00% | 4.00% | |||||
Line of Credit | 2018 Coty Term A Facility | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||
Line of Credit | 2018 Coty Term A Facility | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Quarterly repayment percentage | 1.25% | ||||||
Line of Credit | 2018 Coty Term B Facility | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 1,400,000,000 | ||||||
Discount percentage | 0.25% | 0.25% | |||||
Line of Credit | 2018 Coty Term B Facility | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Quarterly repayment percentage | 0.25% | ||||||
Line of Credit | 2018 Coty Revolving Credit Facility | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 3,250,000,000 | ||||||
Line of Credit | 2018 Coty Revolving Credit Facility | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | 150,000,000 | ||||||
Line of Credit | 2018 Coty Revolving Credit Facility | Swingline loans | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | 150,000,000 | ||||||
Line of Credit | 2018 Coty Revolving Credit Facility | Incurrence Incremental Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 1,700,000,000 | ||||||
Net leverage ratio | 3 | ||||||
Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, redemption price, percentage | 101.00% |
DEBT - Leverage Ratios (Details
DEBT - Leverage Ratios (Details) | 6 Months Ended |
Dec. 31, 2019 | |
Pricing Tier One | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 2.00% |
Pricing Tier One | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.00% |
Pricing Tier Two | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.75% |
Pricing Tier Two | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.75% |
Pricing Tier Three | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.50% |
Pricing Tier Three | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.50% |
Pricing Tier Four | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.25% |
Pricing Tier Four | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.25% |
Pricing Tier Five | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.125% |
Pricing Tier Five | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.125% |
Pricing Tier Six | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.00% |
Pricing Tier Six | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.00% |
DEBT - Pricing Tiers (Details)
DEBT - Pricing Tiers (Details) | 6 Months Ended |
Dec. 31, 2019 | |
Pricing Tier Five | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 2.00% |
Pricing Tier Five | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.00% |
Pricing Tier Four | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.75% |
Pricing Tier Four | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.75% |
Pricing Tier Three | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.50% |
Pricing Tier Three | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.50% |
Pricing Tier Two | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.25% |
Pricing Tier Two | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.25% |
Pricing Tier One | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.125% |
Pricing Tier One | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.125% |
Pricing Tier One | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 2.00% |
Pricing Tier One | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.00% |
Pricing Tier Two | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.75% |
Pricing Tier Two | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.75% |
Pricing Tier Three | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.50% |
Pricing Tier Three | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.50% |
Pricing Tier Four | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.25% |
Pricing Tier Four | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.25% |
Pricing Tier Five | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.125% |
Pricing Tier Five | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.125% |
Pricing Tier Six | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 1.00% |
Pricing Tier Six | Alternative Base Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate, percentage | 0.00% |
Minimum | Pricing Tier One | |
Debt Instrument [Line Items] | |
Pricing Tier Net Leverage Ratio | 4.75 |
Minimum | Pricing Tier Two | |
Debt Instrument [Line Items] | |
Pricing Tier Net Leverage Ratio | 4 |
Minimum | Pricing Tier Three | |
Debt Instrument [Line Items] | |
Pricing Tier Net Leverage Ratio | 2.75 |
Minimum | Pricing Tier Four | |
Debt Instrument [Line Items] | |
Pricing Tier Net Leverage Ratio | 2 |
Minimum | Pricing Tier Five | |
Debt Instrument [Line Items] | |
Pricing Tier Net Leverage Ratio | 1.50 |
Maximum | Pricing Tier Two | |
Debt Instrument [Line Items] | |
Pricing Tier Net Leverage Ratio | 4.75 |
Maximum | Pricing Tier Three | |
Debt Instrument [Line Items] | |
Pricing Tier Net Leverage Ratio | 4 |
Maximum | Pricing Tier Four | |
Debt Instrument [Line Items] | |
Pricing Tier Net Leverage Ratio | 2.75 |
Maximum | Pricing Tier Five | |
Debt Instrument [Line Items] | |
Pricing Tier Net Leverage Ratio | 2 |
Maximum | Pricing Tier Six | |
Debt Instrument [Line Items] | |
Pricing Tier Net Leverage Ratio | 1.50 |
DEBT - Schedule of Fair Value o
DEBT - Schedule of Fair Value of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jun. 30, 2019 |
2018 Coty Credit Agreement | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 6,047.1 | $ 6,281.4 |
2018 Coty Credit Agreement | Fair Value | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 5,886.9 | 6,058.9 |
Senior Unsecured Notes | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 1,446.6 | 1,459.1 |
Senior Unsecured Notes | Fair Value | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 1,510.7 | $ 1,439.6 |
DEBT - Schedule of Maturities o
DEBT - Schedule of Maturities of Long-Term Debt (Details) $ in Millions | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020, remaining | $ 93.8 |
2021 | 187.6 |
2022 | 187.6 |
2023 | 3,959.5 |
2024 | 23.5 |
Thereafter | 3,041.7 |
Total | $ 7,493.7 |
DEBT - Total Net Leverage Ratio
DEBT - Total Net Leverage Ratio (Details) | 6 Months Ended |
Dec. 31, 2019 | |
Period Ending December 31, 2019 Through December 31, 2021 | |
Debt Instrument [Line Items] | |
Net leverage ratio | 5.25 |
Period Ending December 31, 2021 Through March 31, 2022 | |
Debt Instrument [Line Items] | |
Net leverage ratio | 5 |
Period Ending March 31, 2022 Through June 30, 2022 | |
Debt Instrument [Line Items] | |
Net leverage ratio | 4.75 |
Period Ending June 30, 2022 Through September 30, 2022 | |
Debt Instrument [Line Items] | |
Net leverage ratio | 4.50 |
Period Ending September 30, 2022 Through December 31, 2022 | |
Debt Instrument [Line Items] | |
Net leverage ratio | 4.25 |
Period Ending March 31, 2023 Through June 30, 2023 | |
Debt Instrument [Line Items] | |
Net leverage ratio | 4 |
INTEREST EXPENSE, NET (Details)
INTEREST EXPENSE, NET (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Income (Expense), Net [Abstract] | ||||
Interest expense | $ 66.3 | $ 74.1 | $ 141.8 | $ 146.5 |
Foreign exchange losses (gains), net of derivative contracts | 4.9 | (0.2) | 8.7 | (3.8) |
Interest income | (0.1) | (5.6) | (2) | (10.3) |
Total interest expense, net | $ 71.1 | $ 68.3 | $ 148.5 | $ 132.4 |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 9.6 | $ 8.9 | $ 19.6 | $ 17.4 |
Interest cost | 3.2 | 4 | 6 | 8 |
Expected return on plan assets | (2.1) | (2.1) | (4.2) | (4.2) |
Amortization of prior service cost (credit) | (1.7) | (1.4) | (3.5) | (2.8) |
Amortization of net (gain) loss | 0.3 | (0.3) | 0.4 | (0.2) |
Net periodic benefit cost (credit) | 9.3 | 9.1 | 18.3 | 18.2 |
Other Post- Employment Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.4 | 0.3 | 0.9 | 0.6 |
Interest cost | 0.6 | 0.5 | 1 | 1 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (1.5) | (1.5) | (3.1) | (3) |
Amortization of net (gain) loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost (credit) | (0.5) | (0.7) | (1.2) | (1.4) |
U.S. | Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0.3 | 0.2 | 0.4 | 0.4 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 | 0 | 0 |
Amortization of net (gain) loss | 0.3 | (0.2) | 0.4 | (0.4) |
Net periodic benefit cost (credit) | 0.6 | 0 | 0.8 | 0 |
International | Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 9.2 | 8.6 | 18.7 | 16.8 |
Interest cost | 2.3 | 3.3 | 4.6 | 6.6 |
Expected return on plan assets | (2.1) | (2.1) | (4.2) | (4.2) |
Amortization of prior service cost (credit) | (0.2) | 0.1 | (0.4) | 0.2 |
Amortization of net (gain) loss | 0 | (0.1) | 0 | 0.2 |
Net periodic benefit cost (credit) | $ 9.2 | $ 9.8 | $ 18.7 | $ 19.6 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) | 1 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Accumulated other comprehensive income (loss) | $ (77,500,000) | $ (58,800,000) | |
Other Foreign Currency Translation Adjustments | Net investment hedge | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Accumulated other comprehensive income (loss) | 272,800,000 | 214,800,000 | |
Cross-currency swap contracts | Net investment hedge | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 550,000,000 | ||
Interest rate swap contracts | Interest Rate Risk | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | 3,000,000,000 | 2,000,000,000 | |
Derivative, incremental notional amount | $ 1,000,000,000 | ||
Foreign exchange forward contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Cash flow hedges in AOCI, net of tax | (8,200,000) | ||
Cash flow hedges in AOCI, net of tax | (13,300,000) | ||
Cash flow hedge to be reclassified during next 12 months | (4,900,000) | ||
Foreign exchange forward contracts | Other Foreign Currency Translation Adjustments | Net investment hedge | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Accumulated other comprehensive income (loss) | $ (18,700,000) | $ 0 |
DERIVATIVE INSTRUMENTS - Gains
DERIVATIVE INSTRUMENTS - Gains and Losses Recognized in OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||||
Gain (Loss) Recognized in OCI | $ (99.3) | $ 58 | ||
Gain (Loss) Recognized in OCI | $ 74.3 | $ 78.6 | ||
Foreign exchange forward contracts | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in OCI | 0.2 | 0.6 | ||
Gain (Loss) Recognized in OCI | 0.4 | 0.4 | ||
Interest rate swap contracts | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in OCI | 4.1 | 3.6 | ||
Gain (Loss) Recognized in OCI | (21) | (15.9) | ||
Cross-currency swap contracts | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in OCI | $ (22.6) | $ (18.7) | ||
Gain (Loss) Recognized in OCI | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - Amount
DERIVATIVE INSTRUMENTS - Amount of Gains and Losses Reclassified from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cost of sales | Foreign exchange forward contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Cash Flow Hedging Relationships | $ 1 | $ 1.2 | ||
Cost of sales | Interest rate swap contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Cash Flow Hedging Relationships | 0 | 0 | ||
Interest expense, net | Foreign exchange forward contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Cash Flow Hedging Relationships | 0 | 0 | ||
Interest expense, net | Interest rate swap contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Cash Flow Hedging Relationships | $ (1.2) | $ (0.3) | ||
Cash Flow Hedging | Cost of sales | Foreign exchange forward contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Cash Flow Hedging Relationships | $ 0 | $ 0 | ||
Cash Flow Hedging | Cost of sales | Interest rate swap contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Cash Flow Hedging Relationships | 0 | 0 | ||
Cash Flow Hedging | Interest expense, net | Foreign exchange forward contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Cash Flow Hedging Relationships | 0 | 0 | ||
Cash Flow Hedging | Interest expense, net | Interest rate swap contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Cash Flow Hedging Relationships | $ 3.9 | $ 7.7 |
DERIVATIVE INSTRUMENTS - Deriva
DERIVATIVE INSTRUMENTS - Derivatives Not Designated as Hedging (Details) - Foreign exchange forward contracts - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Selling, general and administrative expenses | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in operations | $ (0.7) | $ 0.1 | $ (0.9) | $ 0.1 |
Interest expense, net | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in operations | 6.6 | (5.6) | 11.3 | (1.6) |
Other expense, net | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in operations | $ (0.2) | $ 0.1 | $ (0.3) | $ 1.4 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) | Dec. 27, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)voteclass$ / sharesshares | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2019USD ($)voteclass$ / sharesshares | Jun. 30, 2019$ / sharesshares | Feb. 03, 2016USD ($) |
Class of Stock [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||
Common stock, shares outstanding (in shares) | 760,500,000 | 760,500,000 | 754,200,000 | ||||||
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | ||||||
Number of classes of preferred stock | class | 2 | 2 | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Preferred stock, shares authorized (in shares) | 9,400,000 | 9,400,000 | 9,400,000 | ||||||
Preferred stock, shares outstanding (in shares) | 9,400,000 | 9,400,000 | 9,400,000 | ||||||
Number of shares repurchased (in shares) | 500,000 | ||||||||
Treasury stock, value, acquired, cost method | $ | $ 4,500,000 | $ 4,500,000 | |||||||
Dividends, common stock | $ | $ 94,600,000 | $ 94,000,000 | 129,600,000 | ||||||
Payments of dividends | $ | $ 65,500,000 | $ 63,300,000 | 128,800,000 | ||||||
Dividends payable | $ | $ 1,300,000 | $ 1,100,000 | $ 2,400,000 | $ 1,100,000 | 2,400,000 | ||||
Dividends, common stock, no longer expected to vest, forfeitures | $ | 1,600,000 | 1,600,000 | |||||||
Reduction of dividends payable, current and noncurrent | $ | 1,600,000 | ||||||||
Restricted Stock Units and Phantom Units | Other Noncurrent Liabilities | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends payable | $ | 4,400,000 | 4,400,000 | |||||||
Restricted Stock Units and Phantom Units | Accrued Expenses and Other Current Liabilities | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends payable | $ | $ 2,100,000 | $ 2,100,000 | |||||||
Common Class A | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||
Votes per share | vote | 1 | 1 | |||||||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |||||||
Common stock, shares outstanding (in shares) | 760,500,000 | 760,500,000 | |||||||
Common Class A | Cottage Holdco B.V. | |||||||||
Class of Stock [Line Items] | |||||||||
Parent ownership percentage | 60.00% | 60.00% | |||||||
Common Class A | Incremental Repurchase Program | |||||||||
Class of Stock [Line Items] | |||||||||
Authorized repurchase amount | $ | $ 500,000,000 | ||||||||
Number of shares repurchased (in shares) | 0 | 0 | |||||||
Share repurchase program, remaining authorized repurchase amount | $ | $ 396,800,000 | $ 396,800,000 | |||||||
Common Class A | JAB Cosmetics B.V. | |||||||||
Class of Stock [Line Items] | |||||||||
Number shares purchased on open market by related party (in shares) | 0 | 0 | |||||||
Number shares received under dividend reinvestment program by related party (in shares) | 2,200,000 | 5,000,000 | |||||||
Series A Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Votes per share | vote | 0 | 0 | |||||||
Preferred stock, shares authorized (in shares) | 1,500,000 | 1,500,000 | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||
Preferred stock, shares authorized (in shares) | 1,500,000 | 1,500,000 | |||||||
Preferred stock, shares outstanding (in shares) | 1,500,000 | 1,500,000 | |||||||
Amount of preferred stock | $ | $ 1,700,000 | $ 1,700,000 | |||||||
Series A Preferred Stock | Other Noncurrent Liabilities | |||||||||
Class of Stock [Line Items] | |||||||||
Amount of preferred stock | $ | $ 2,000,000 | $ 2,000,000 | |||||||
Series A-1 Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Votes per share | vote | 0 | 0 | |||||||
Preferred stock, shares authorized (in shares) | 7,900,000 | 7,900,000 | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||
Preferred stock, shares authorized (in shares) | 7,900,000 | 7,900,000 | |||||||
Preferred stock, shares outstanding (in shares) | 7,900,000 | 7,900,000 | |||||||
Additional Paid-in Capital | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends, common stock | $ | $ 94,600,000 | $ 94,000,000 | $ 130,400,000 |
EQUITY - Dividends (Details)
EQUITY - Dividends (Details) - USD ($) $ / shares in Units, shares in Millions | Dec. 27, 2019 | Nov. 18, 2019 | Nov. 06, 2019 | Sep. 30, 2019 | Sep. 09, 2019 | Aug. 28, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 |
Class of Stock [Line Items] | |||||||||||
Dividends (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.250 | ||||
Dividend Value | $ 0.125 | $ 0.125 | $ 0.250 | ||||||||
Dividends Settled in Cash | $ 65,500,000 | $ 63,300,000 | 128,800,000 | ||||||||
Dividend Settled in Stock | 29,300,000 | 30,900,000 | 60,200,000 | ||||||||
Dividends Payable | 1,300,000 | 1,100,000 | $ 2,400,000 | $ 1,100,000 | $ 2,400,000 | ||||||
Common Class A | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividend Settled in Stock | $ 29,300,000 | $ 30,900,000 | $ 29,500,000 | $ 30,900,000 | |||||||
Issuance of shares of Class A Common Stock (in shares) | 2.4 | 3.2 |
EQUITY - Accumulated Other Comp
EQUITY - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period | $ 4,593.4 | $ 8,855.2 |
Other comprehensive income (loss) before reclassifications | (15.8) | (120.9) |
Net amounts reclassified from AOCI/(L) | (2.9) | (4.3) |
Net current-period other comprehensive income (loss) | (18.7) | (125.2) |
Balance, end of period | 4,481.6 | 7,611.3 |
Total | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period | (58.8) | 158.8 |
Balance, end of period | (77.5) | 33.6 |
(Loss) gain on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period | (13.3) | |
Other comprehensive income (loss) before reclassifications | 4.9 | |
Net amounts reclassified from AOCI/(L) | 0.2 | |
Net current-period other comprehensive income (loss) | 5.1 | |
Balance, end of period | (8.2) | |
Gain on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period | 31.7 | |
Other comprehensive income (loss) before reclassifications | (11.8) | |
Net amounts reclassified from AOCI/(L) | (5.9) | |
Net current-period other comprehensive income (loss) | (17.7) | |
Balance, end of period | 14 | |
Gain on Net Investment Hedge | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period | 214.8 | 115 |
Other comprehensive income (loss) before reclassifications | 39.3 | 78.6 |
Net amounts reclassified from AOCI/(L) | 0 | 0 |
Net current-period other comprehensive income (loss) | 39.3 | 78.6 |
Balance, end of period | 254.1 | 193.6 |
Other Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period | (257.4) | (44.3) |
Other comprehensive income (loss) before reclassifications | (60) | (187.7) |
Net amounts reclassified from AOCI/(L) | 0 | 0 |
Net current-period other comprehensive income (loss) | (60) | (187.7) |
Balance, end of period | (317.4) | (232) |
Pension and Other Post-Employment Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning of period | (2.9) | 56.4 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Net amounts reclassified from AOCI/(L) | (3.1) | 1.6 |
Net current-period other comprehensive income (loss) | (3.1) | 1.6 |
Balance, end of period | (6) | $ 58 |
Reclassification from accumulated other comprehensive income (loss), current period, before tax | (3.1) | |
Other comprehensive income (loss), tax | $ 0 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS - Schedule Of Share-based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 11.4 | $ 2.3 | $ 17.7 | $ 8.7 |
Equity plan expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 10.3 | 4.4 | 16.5 | 10.8 |
Liability plan (income) expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 0 | (2.6) | 0 | (2.6) |
Fringe expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 1.1 | $ 0.5 | $ 1.2 | $ 0.5 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 11,400,000 | $ 2,300,000 | $ 17,700,000 | $ 8,700,000 |
Stock issued during period, value, share-based compensation, forfeited | 0 | 5,900,000 | 2,500,000 | 8,800,000 |
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized share-based compensation expense | 41,900,000 | $ 41,900,000 | ||
Weighted-average period for unrecognized share-based compensation | 3 years 10 months 20 days | |||
Restricted and Other Share Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized share-based compensation expense | 107,000,000 | $ 107,000,000 | ||
Weighted-average period for unrecognized share-based compensation | 3 years 9 months 25 days | |||
Restricted Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 8,000,000 | 3,600,000 | $ 13,000,000 | 7,700,000 |
Awards granted (in shares) | 5,300,000 | 5,300,000 | ||
Non-Qualified Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 2,900,000 | 2,800,000 | $ 3,700,000 | 5,200,000 |
Options granted (in shares) | 2,200,000 | 2,200,000 | ||
Series A and A-1 Preferred Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized share-based compensation expense | $ 8,100,000 | $ 8,100,000 | ||
Weighted-average period for unrecognized share-based compensation | 3 years 11 months 8 days | |||
Series A Preferred Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 500,000 | (4,100,000) | $ 1,000,000 | (4,200,000) |
Awards granted (in shares) | 0 | 0 | ||
Series A-1 Preferred Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted (in shares) | 0 | 0 | ||
Selling, general and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 11,400,000 | $ 8,200,000 | $ 20,200,000 | $ 17,500,000 |
NET (LOSS) INCOME ATTRIBUTABL_3
NET (LOSS) INCOME ATTRIBUTABLE TO COTY INC. PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income attributable to Coty Inc. | $ (21.1) | $ (960.6) | $ 31.2 | $ (972.7) |
Weighted-average common shares outstanding: | ||||
Weighted-average common shares outstanding—Basic (in shares) | 758.1 | 751.1 | 756.1 | 751 |
Effect of dilutive stock options and Series A/A-1 Preferred Stock (in shares) | 0 | 0 | 1.5 | 0 |
Effect of restricted stock and RSUs (in shares) | 0 | 0 | 3.6 | 0 |
Weighted-average common shares outstanding—Diluted (in shares) | 758.1 | 751.1 | 761.2 | 751 |
Net (loss) income attributable to Coty Inc. per common share: | ||||
Basic (in dollars per share) | $ (0.03) | $ (1.28) | $ 0.04 | $ (1.30) |
Diluted (in dollars per share) | $ (0.03) | $ (1.28) | $ 0.04 | $ (1.30) |
Outstanding Stock Options, Series A and A-1 Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 24.8 | |||
Restricted Share Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 2.9 |
MANDATORILY REDEEMABLE FINANC_2
MANDATORILY REDEEMABLE FINANCIAL INTERESTS AND REDEEMABLE NONCONTROLLING INTERESTS - Mandatorily Redeemable Financial Interest (Details) - USD ($) | 1 Months Ended | ||
Jul. 31, 2019 | Dec. 31, 2019 | Jun. 30, 2019 | |
United Arab Emirates Joint Venture | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage by noncontrolling owners | 25.00% | ||
Southeastern Asian Subsidiary | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage by noncontrolling owners | 49.00% | ||
United Arab Emirates Joint Venture | |||
Noncontrolling Interest [Line Items] | |||
Mandatorily redeemable financial instrument, noncontrolling interest | $ 8,000,000 | $ 7,500,000 | |
United Arab Emirates Joint Venture | Other Noncurrent Liabilities | |||
Noncontrolling Interest [Line Items] | |||
Mandatorily redeemable financial instrument, noncontrolling interest | 6,400,000 | 6,100,000 | |
United Arab Emirates Joint Venture | Accrued Expenses and Other Current Liabilities | |||
Noncontrolling Interest [Line Items] | |||
Mandatorily redeemable financial instrument, noncontrolling interest | 1,600,000 | $ 1,400,000 | |
Southeastern Asian Subsidiary | |||
Noncontrolling Interest [Line Items] | |||
Mandatorily redeemable financial instrument, noncontrolling interest | $ 0 | ||
Purchase of additional noncontrolling interest | $ 45,000,000 |
MANDATORILY REDEEMABLE FINANC_3
MANDATORILY REDEEMABLE FINANCIAL INTERESTS AND REDEEMABLE NONCONTROLLING INTERESTS - Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | Sep. 16, 2019 | Dec. 31, 2019 | Jun. 30, 2019 |
Redeemable Noncontrolling Interest [Line Items] | |||
Non-cash redeemable noncontrolling interest for business combinations | $ 98.6 | $ 451.8 | |
Foundation, LLC | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Ownership percentage by noncontrolling owners | 40.70% | ||
Redeemable noncontrolling interest, amount derecognized | $ 360.4 | ||
Younique, LLC | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Ownership percentage by noncontrolling owners | 40.70% | ||
Non-cash redeemable noncontrolling interest for business combinations | 365.3 | ||
Coty Inc. | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Ownership percentage by parent | 59.30% | ||
United Arab Emirates Subsidiary | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Ownership percentage by noncontrolling owners | 25.00% | ||
Middle East Subsidiary | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Non-cash redeemable noncontrolling interest for business combinations | $ 98.6 | $ 86.5 |
COMMITMENTS AND CONTINGENCIES N
COMMITMENTS AND CONTINGENCIES Narrative (Details) R$ in Millions, $ in Millions | Dec. 31, 2019BRL (R$) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) |
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 17.4 | $ 17.3 | |
Brazilian Tax Assessments | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | R$ 249.0 | $ 61.9 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 05, 2020 | Jan. 06, 2020 | Nov. 06, 2019 | Aug. 28, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||||||||
Dividends (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.250 | ||
Subsequent event | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends (in dollars per share) | $ 0.125 | ||||||||
Dividend reinvestment program, option to receive dividend, percentage in cash | 50.00% | ||||||||
Dividend reinvestment program, option to receive dividend, percentage in common stock | 50.00% | ||||||||
Subsequent event | King Kylie | |||||||||
Subsequent Event [Line Items] | |||||||||
Percentage of equity interests acquired | 51.00% | ||||||||
Base purchase price | $ 600 |
Uncategorized Items - coty-2019
Label | Element | Value |
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests | us-gaap_TemporaryEquityCarryingAmountIncludingPortionAttributableToNoncontrollingInterests | $ 661,300,000 |
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests | us-gaap_TemporaryEquityCarryingAmountIncludingPortionAttributableToNoncontrollingInterests | 451,800,000 |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | (4,541,900,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | (757,000,000) |
Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 8,718,900,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 4,586,200,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 10,620,500,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 10,750,800,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 158,800,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ (58,800,000) |
Preferred Stock [Member] | ||
Shares, Outstanding | us-gaap_SharesOutstanding | 9,400,000 |
Shares, Outstanding | us-gaap_SharesOutstanding | 5,000,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ 100,000 |
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 | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ (1,441,800,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | (1,441,800,000) |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 5,500,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ 6,500,000 |
Common Class A [Member] | Common Stock [Member] | ||
Shares, Outstanding | us-gaap_SharesOutstanding | 815,800,000 |
Shares, Outstanding | us-gaap_SharesOutstanding | 819,200,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ 8,100,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 8,100,000 |
Accounting Standards Update 2016-02 [Member] | Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (700,000) |
Accounting Standards Update 2016-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (112,600,000) |
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (112,600,000) |
Accounting Standards Update 2016-09 [Member] | Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (112,600,000) |
Adoption of ASC 606 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (18,200,000) |
Adoption of ASC 606 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (18,200,000) |
Adoption of ASC 606 [Member] | Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (18,200,000) |