COVER PAGE
COVER PAGE - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 30, 2024 | Aug. 12, 2024 | Dec. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2024 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-35964 | ||
Entity Registrant Name | COTY INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-3823358 | ||
Entity Address, Address Line One | 350 Fifth Avenue, | ||
Entity Address, City or Town | New York, | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10118 | ||
City Area Code | 212 | ||
Local Phone Number | 389-7300 | ||
Title of 12(b) Security | Class A Common Stock, $0.01 par value | ||
Trading Symbol | COTY | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.9 | ||
Entity Common Stock, Shares Outstanding | 867,845,212 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001024305 | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Jun. 30, 2024 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | New York, New York |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | |||
Net revenues | $ 6,118 | $ 5,554.1 | $ 5,304.4 |
Cost of sales | 2,178.8 | 2,006.8 | 1,935.2 |
Gross profit | 3,939.2 | 3,547.3 | 3,369.2 |
Selling, general and administrative expenses | 3,162.4 | 2,818.3 | 2,881.3 |
Amortization expense | 193.4 | 191.8 | 207.4 |
Restructuring costs | 36.7 | (6.5) | (6.5) |
Acquisition- and divestiture- related costs | 0 | 0 | 14.7 |
Asset impairment charges | 0 | 0 | 31.4 |
Operating income | 546.7 | 543.7 | 240.9 |
Interest expense, net | 252 | 257.9 | 224 |
Other expense (income), net | 90.2 | (419) | (409.9) |
Income from continuing operations before income taxes | 204.5 | 704.8 | 426.8 |
Provision for income taxes on continuing operations | 95.1 | 181.6 | 164.8 |
Net income from continuing operations | 109.4 | 523.2 | 262 |
Net income from discontinued operations | 0 | 0 | 5.7 |
Net income | 109.4 | 523.2 | 267.7 |
Net income (loss) attributable to noncontrolling interests | 5.3 | (1.8) | (5.1) |
Net income attributable to redeemable noncontrolling interests | 14.7 | 16.8 | 13.3 |
Net income attributable to Coty Inc. | 89.4 | 508.2 | 259.5 |
Amounts attributable to Coty Inc. | |||
Net income from continuing operations | 89.4 | 508.2 | 253.8 |
Convertible Series B Preferred Stock dividends | (13.2) | (13.2) | (198.3) |
Net income from continuing operations attributable to common stockholders | 76.2 | 495 | 55.5 |
Net income from discontinued operations, net of tax | 0 | 0 | 5.7 |
Net income from continuing operations attributable to common stockholders | 76.2 | 495 | 61.2 |
Net income from continuing operations attributable to common stockholders | $ 76.2 | $ 495 | $ 61.2 |
Earnings (losses) per common share | |||
Earnings from continuing operations per common share - basic (in dollars per share) | $ 0.09 | $ 0.58 | $ 0.07 |
Earnings from continuing operations per common share - diluted (in dollars per share) | 0.09 | 0.57 | 0.07 |
Earnings from discontinued operations - basic (in dollars per share) | 0 | 0 | 0.01 |
Earnings from discontinued operations - diluted (in dollars per share) | 0 | 0 | 0.01 |
Earnings per common share - basic (in dollars per share) | 0.09 | 0.58 | 0.08 |
Earnings per common share - diluted (in dollars per share) | $ 0.09 | $ 0.57 | $ 0.08 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 874.4 | 849 | 820.6 |
Diluted (in shares) | 883.4 | 886.5 | 834.1 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 109.4 | $ 523.2 | $ 267.7 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (128.3) | 49.4 | (476.1) |
Net unrealized derivative (loss) gain on cash flow hedges, net of taxes of $(1.1), $1.4 and $(6.0), respectively | 1.4 | (3.6) | 19.8 |
Pension and other post-employment benefits, net of taxes of $2.7, $(4.9) and $(24.7), respectively | (5.8) | 10.1 | 59.4 |
Total other comprehensive (loss) income, net of tax | (132.7) | 55.9 | (396.9) |
Comprehensive (loss) income | (23.3) | 579.1 | (129.2) |
Comprehensive (loss) attributable to noncontrolling interests: | |||
Net income (loss) | 5.3 | (1.8) | (5.1) |
Foreign currency translation adjustment | 0 | 0.3 | (0.5) |
Total comprehensive income (loss) attributable to noncontrolling interests | 5.3 | (1.5) | (5.6) |
Comprehensive income (loss) attributable to redeemable noncontrolling interests: | |||
Net income (loss) | 14.7 | 16.8 | 13.3 |
Foreign currency translation adjustment | 0 | 0.1 | (0.4) |
Total comprehensive income attributable to redeemable noncontrolling interests | 14.7 | 16.9 | 12.9 |
Comprehensive (loss) income attributable to Coty Inc. | $ (43.3) | $ 563.7 | $ (136.5) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized derivative (loss) gain on cash flow hedges, tax | $ (1.1) | $ 1.4 | $ (6) |
Pension and other post-employment benefits adjustment, tax | $ 2.7 | $ (4.9) | $ (24.7) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 300.8 | $ 246.9 |
Restricted cash | 19.8 | 36.9 |
Trade receivables—less allowances of $24.3 and $23.2, respectively | 441.6 | 360.9 |
Inventories | 764.1 | 853.4 |
Prepaid expenses and other current assets | 437.2 | 553.6 |
Total current assets | 1,963.5 | 2,051.7 |
Property and equipment, net | 718.9 | 712.9 |
Goodwill | 3,905.7 | 3,987.9 |
Other intangible assets, net | 3,565.6 | 3,798 |
Equity investments | 1,090.6 | 1,068.9 |
Operating lease right-of-use assets | 255.3 | 286.7 |
Deferred income taxes | 490.8 | 589.9 |
Other noncurrent assets | 92.1 | 165.6 |
TOTAL ASSETS | 12,082.5 | 12,661.6 |
Current liabilities: | ||
Accounts payable | 1,405.6 | 1,444.7 |
Accrued expenses and other current liabilities | 1,067.3 | 1,042 |
Short-term debt and current portion of long-term debt | 3 | 57.9 |
Current operating lease liabilities | 57.8 | 65.6 |
Income and other taxes payable | 68.1 | 126.6 |
Total current liabilities | 2,601.8 | 2,736.8 |
Long-term operating lease liabilities | 218.7 | 247.5 |
Long-term debt, net | 3,841.8 | 4,178.2 |
Pension and other post-employment benefits | 275.2 | 280.7 |
Deferred income taxes | 549.9 | 659.7 |
Other noncurrent liabilities | 347.4 | 325.4 |
TOTAL LIABILITIES | 7,834.8 | 8,428.3 |
COMMITMENTS AND CONTINGENCIES (Note 24) | ||
CONVERTIBLE SERIES B PREFERRED STOCK, $0.01 par value; 1.0 shares authorized; 0.1 issued and outstanding, at June 30, 2024 and 2023, respectively | 142.4 | 142.4 |
REDEEMABLE NONCONTROLLING INTERESTS | 93.6 | 93.5 |
EQUITY: | ||
Preferred stock, $0.01 par value; 20.0 shares authorized; 1.0 issued and outstanding, at June 30, 2024 and 2023, respectively | 0 | 0 |
Class A Common Stock, $0.01 par value; 1,250.0 shares authorized, 962.1 and 919.3 issued and 867.8 and 852.8 outstanding at June 30, 2024 and 2023, respectively | 9.6 | 9.1 |
Additional paid-in capital | 11,308 | 10,898.6 |
Accumulated deficit | (4,898.5) | (4,987.9) |
Accumulated other comprehensive loss | (795.1) | (662.4) |
Treasury stock—at cost, shares: 94.3 and 66.5 at June 30, 2024 and 2023, respectively | (1,796.9) | (1,446.3) |
Total Coty Inc. stockholders’ equity | 3,827.1 | 3,811.1 |
Noncontrolling interests | 184.6 | 186.3 |
Total equity | 4,011.7 | 3,997.4 |
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | $ 12,082.5 | $ 12,661.6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 24.3 | $ 23.2 |
Convertible Series B preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible Series B preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Convertible Series B preferred stock, shares issued (in shares) | 100,000 | 100,000 |
Convertible Series B preferred stock, shares outstanding (in shares) | 100,000 | 100,000 |
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) | 1,000,000 | |
Preferred stock, shares outstanding (in shares) | 1,000,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,250,000,000 | 1,250,000,000 |
Common stock, shares issued (in shares) | 962,100,000 | 919,300,000 |
Common stock, shares outstanding (in shares) | 867,800,000 | 852,800,000 |
Treasury stock (in shares) | 94,300,000 | 66,500,000 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Class A | Total Coty Inc. Stockholders’ Equity | Preferred Stock | Common Stock Common Class A | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Noncontrolling Interest |
Beginning balance (in shares) at Jun. 30, 2021 | 1.5 | |||||||||
Beginning balance at Jun. 30, 2021 | $ 3,062.2 | $ 2,860.7 | $ 0 | $ 8.3 | $ 10,376.2 | $ (5,755.6) | $ (321.9) | $ (1,446.3) | $ 201.5 | |
Beginning balance (in shares) at Jun. 30, 2021 | 832.3 | |||||||||
Beginning balance (in shares) at Jun. 30, 2021 | 66.3 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exercise of employee stock options and restricted stock units and issuance of restricted stock (in shares) | 3.3 | 3.3 | ||||||||
Shares withheld for employee taxes | (12.7) | (12.7) | (12.7) | |||||||
Share based compensation expense | 195.4 | 195.4 | 195.4 | |||||||
Equity Investment contribution for share-based compensation | 0.7 | 0.7 | 0.7 | |||||||
Changes in dividends accrued | 0.8 | 0.8 | 0.8 | |||||||
Conversion of Convertible Series B Preferred Stock (in shares) | 69.9 | |||||||||
Conversion of Convertible Series B Preferred Stock | 429.5 | 429.5 | $ 0.7 | 428.8 | ||||||
Dividends Accrued- Convertible Series B Preferred Stock | (35.2) | (35.2) | (35.2) | |||||||
Deemed Dividends and Contributions- Convertible Series B Preferred Stock | (163.1) | (163.1) | (163.1) | |||||||
Net income (loss) | 254.4 | 259.5 | 259.5 | (5.1) | ||||||
Other comprehensive income | (396.5) | (396) | (396) | (0.5) | ||||||
Other comprehensive (loss) income | (396.9) | |||||||||
Distribution to noncontrolling interests, net | (4.6) | (4.6) | ||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 14.9 | 14.9 | 14.9 | |||||||
Ending balance (in shares) at Jun. 30, 2022 | 1.5 | |||||||||
Ending balance at Jun. 30, 2022 | 3,345.8 | 3,154.5 | $ 0 | $ 9 | 10,805.8 | (5,496.1) | (717.9) | $ (1,446.3) | 191.3 | |
Ending balance (in shares) at Jun. 30, 2022 | 905.5 | |||||||||
Ending balance (in shares) at Jun. 30, 2022 | 66.3 | |||||||||
Beginning balance, redeemable noncontrolling interest at Jun. 30, 2021 | 84.1 | |||||||||
Beginning balance, convertible stock at Jun. 30, 2021 | 1,036.3 | |||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||||||||||
Conversion of Convertible Series B Preferred Stock | (429.5) | |||||||||
Exchange Transaction | (606.9) | |||||||||
Dividends Accrued - Convertible Series B Preferred Stock | 35.2 | |||||||||
Deemed Dividends and Contributions- Convertible Series B Preferred Stock | 163.1 | |||||||||
Dividends Paid- Convertible Series B Preferred Stock | (55.8) | |||||||||
Net income (loss) | 13.3 | |||||||||
Other comprehensive loss | (0.4) | |||||||||
Distribution to noncontrolling interests, net | (12.3) | |||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (14.9) | |||||||||
Ending balance, redeemable noncontrolling interest at Jun. 30, 2022 | 69.8 | |||||||||
Ending balance, convertible stock at Jun. 30, 2022 | 142.4 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cancellation of Preferred Stock (in shares) | 0.5 | |||||||||
Cancellation of Preferred Stock | 0 | 0 | ||||||||
Reacquired Class A Common Stock for employee taxes and cancellation of restricted stock (in shares) | 0.2 | |||||||||
Exercise of employee stock options and restricted stock units and issuance of restricted stock (in shares) | 13.8 | 13.8 | ||||||||
Exercise of employee stock options and restricted stock units and issuance of restricted stock | 0.9 | 0.9 | $ 0.1 | 0.8 | ||||||
Shares withheld for employee taxes | (13.6) | (13.6) | (13.6) | |||||||
Share based compensation expense | 134.7 | 134.7 | 134.7 | |||||||
Equity Investment contribution for share-based compensation | 4.6 | 4.6 | 4.6 | |||||||
Changes in dividends accrued | 0.1 | 0.1 | 0.1 | |||||||
Dividends Accrued - Convertible Series B Preferred Stock | (13.2) | (13.2) | (13.2) | |||||||
Net income (loss) | 506.4 | 508.2 | 508.2 | (1.8) | ||||||
Other comprehensive income | 55.8 | 55.5 | 55.5 | 0.3 | ||||||
Other comprehensive (loss) income | 55.9 | 55.5 | ||||||||
Distribution to noncontrolling interests, net | (3.5) | (3.5) | ||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (20.6) | (20.6) | (20.6) | |||||||
Ending balance (in shares) at Jun. 30, 2023 | 1 | |||||||||
Ending balance at Jun. 30, 2023 | $ 3,997.4 | 3,811.1 | $ 0 | $ 9.1 | 10,898.6 | (4,987.9) | (662.4) | $ (1,446.3) | 186.3 | |
Ending balance (in shares) at Jun. 30, 2023 | 852.8 | 919.3 | ||||||||
Ending balance (in shares) at Jun. 30, 2023 | 66.5 | 66.5 | ||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||||||||||
Dividends Accrued - Convertible Series B Preferred Stock | $ 13.2 | |||||||||
Dividends Paid- Convertible Series B Preferred Stock | (13.2) | |||||||||
Net income (loss) | 16.8 | |||||||||
Other comprehensive loss | 0.1 | |||||||||
Distribution to noncontrolling interests, net | (13.8) | |||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 20.6 | |||||||||
Ending balance, redeemable noncontrolling interest at Jun. 30, 2023 | 93.5 | |||||||||
Ending balance, convertible stock at Jun. 30, 2023 | 142.4 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of Class A Common Stock in connection with global offering, net of offering costs (in shares) | 33 | |||||||||
Issuance of Class A Common Stock in connection with global offering, net of offering costs | 342.4 | 342.4 | $ 0.3 | 342.1 | ||||||
Reacquired Class A Common Stock for employee taxes and cancellation of restricted stock (in shares) | 0.8 | |||||||||
Exercise of employee stock options and restricted stock units and issuance of restricted stock (in shares) | 9.8 | 9.8 | ||||||||
Exercise of employee stock options and restricted stock units and issuance of restricted stock | 13.5 | 13.5 | $ 0.2 | 13.3 | ||||||
Shares withheld for employee taxes | (21) | (21) | (21) | |||||||
Share based compensation expense | 88.5 | 88.5 | 88.5 | |||||||
Equity Investment contribution for share-based compensation | 2.1 | 2.1 | 2.1 | |||||||
Repurchase of Class A Common Stock pursuant to forward repurchase contracts (in shares) | 27 | |||||||||
Repurchase of Class A Common Stock pursuant to forward repurchase contracts | (350.6) | (350.6) | $ (350.6) | |||||||
Dividends Accrued - Convertible Series B Preferred Stock | (13.2) | (13.2) | (13.2) | |||||||
Net income (loss) | 94.7 | 89.4 | 89.4 | 5.3 | ||||||
Other comprehensive (loss) income | (132.7) | (132.7) | (132.7) | |||||||
Distribution to noncontrolling interests, net | (7) | (7) | ||||||||
Adjustment of redeemable noncontrolling interests to redemption value | $ (2.4) | (2.4) | (2.4) | |||||||
Ending balance (in shares) at Jun. 30, 2024 | 1 | 1 | ||||||||
Ending balance at Jun. 30, 2024 | $ 4,011.7 | $ 3,827.1 | $ 0 | $ 9.6 | $ 11,308 | $ (4,898.5) | $ (795.1) | $ (1,796.9) | $ 184.6 | |
Ending balance (in shares) at Jun. 30, 2024 | 867.8 | 867.8 | 962.1 | |||||||
Ending balance (in shares) at Jun. 30, 2024 | 94.3 | 94.3 | ||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||||||||||
Dividends Accrued - Convertible Series B Preferred Stock | $ 13.2 | |||||||||
Dividends Paid- Convertible Series B Preferred Stock | (13.2) | |||||||||
Net income (loss) | 14.7 | |||||||||
Distribution to noncontrolling interests, net | (17) | |||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (2.4) | |||||||||
Ending balance, redeemable noncontrolling interest at Jun. 30, 2024 | 93.6 | |||||||||
Ending balance, convertible stock at Jun. 30, 2024 | $ 142.4 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 109.4 | $ 523.2 | $ 267.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 421.1 | 426.7 | 516.4 |
Non-cash lease expense | 61.6 | 63.6 | 78.5 |
Asset impairment charges | 0 | 0 | 31.4 |
Deferred income taxes | (9.8) | 56.3 | 12.1 |
Provision (release) for bad debts | 2.7 | (18.9) | 20.5 |
Provision for pension and other post-employment benefits | 8.6 | 8.5 | 12.7 |
Share-based compensation | 88.8 | 135.9 | 195.5 |
Gain on sale of business in discontinued operations and other business divestiture | 0 | 0 | (6.1) |
Losses (gains) on disposals of long-lived assets and license terminations, net | 3.9 | (99.7) | (115.8) |
Realized and unrealized gains from equity investments, net | (21.7) | (226.3) | (400.3) |
Foreign exchange effects | 14.8 | 29.9 | (16.8) |
Realized and unrealized losses (gains) on forward repurchase contracts, net | 76.3 | (196.9) | (16.1) |
Other | 46.5 | 8.9 | 21.3 |
Change in operating assets and liabilities: | |||
Trade receivables | (104.5) | 36.8 | (77.2) |
Inventories | 67.2 | (180.3) | (48.3) |
Prepaid expenses and other current assets | (11) | (15.2) | (12.7) |
Accounts payable | (19.4) | 138.4 | 140.5 |
Accrued expenses and other current liabilities | 34.4 | (21.9) | 129.6 |
Operating lease liabilities | (58.4) | (61) | (70.7) |
Income and other taxes payable | (77.3) | 59.9 | 91.7 |
Other noncurrent assets | (4.3) | (7.5) | (6.7) |
Other noncurrent liabilities | (14.3) | (34.7) | (20.6) |
Net cash provided by operating activities | 614.6 | 625.7 | 726.6 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (245.2) | (222.8) | (174.1) |
Net proceeds from license terminations, contingent consideration and sale of other long-lived assets | 19 | 104.6 | 213.2 |
Return of capital from equity investments | 0 | 0 | 230.6 |
Net cash (used in) provided by investing activities | (226.2) | (118.2) | 269.7 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net proceeds of short-term debt, original maturity less than three months | 0 | 0 | 0.6 |
Proceeds from revolving loan facilities | 2,458.6 | 1,558 | 943 |
Repayments of revolving loan facilities | (2,673.7) | (1,600.1) | (1,338.8) |
Proceeds from issuance of other long term debt | 1,824.1 | 0 | 542.4 |
Repayments of term loans and other long term debt | (1,936.5) | (226.1) | (868.3) |
Proceeds from issuance of Class A Common Stock in connection with Global Offering, net of offering costs | 342.4 | 0 | 0 |
Dividend payments on Class A Common Stock and Convertible Series B Preferred Stock | (13.4) | (13.7) | (57.2) |
Proceeds from issuance of Class A Common Stock | 13.5 | 0.9 | 0 |
Net payments for foreign currency contracts | (7.3) | (128.1) | (178.5) |
Distributions to redeemable noncontrolling interests and noncontrolling interests | (24) | (17.3) | (16.9) |
Settlement and other payments related to forward repurchase contracts | (242.6) | (26.4) | 0 |
Purchase of remaining mandatorily redeemable financial interest | 0 | 0 | (7.1) |
Payment of deferred financing fees | (47.1) | 0 | (39.6) |
All other | (30.7) | (16.5) | (13.6) |
Net cash used in financing activities | (336.7) | (469.3) | (1,034) |
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (14.9) | (18.2) | (8.9) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 36.8 | 20 | (46.6) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 283.8 | 263.8 | 310.4 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period | 320.6 | 283.8 | 263.8 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | |||
Cash paid during the year for interest | 205.7 | 229.1 | 215.4 |
Cash paid during the year for income taxes, net of refunds received | 172.6 | 58.6 | 97.2 |
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES: | |||
Accrued capital expenditure additions | 108 | 107.8 | 100.1 |
Non-cash exchange of forward repurchase contracts for treasury stock | 0 | 0 | 150.6 |
Redemption of Series B Preferred Stock in exchange for Wella Equity Investment | 0 | 0 | 603.3 |
Conversion of Series B Preferred Stock into Class A Common Stock | 0 | 0 | 429.5 |
Non-cash Series B Preferred Stock dividends and deemed (contributions) dividends | $ 0 | $ 0 | $ (1.1) |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Coty Inc. and its subsidiaries (collectively, the “Company” or “Coty”) manufacture, market, sell and distribute branded beauty products, including fragrances, color cosmetics 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 2024” refer to the fiscal year ended June 30, 2024. When used in this Annual Report on Form 10-K, the term “includes” and “including” means, unless the context otherwise indicates, including without limitation. The Company’s sales generally increase during the second fiscal quarter as a result of increased demand associated with the winter holiday season. Financial performance, working capital requirements, sales, cash flows and borrowings generally experience variability during the three to six months preceding the holiday season. Product innovations, new product launches and the size and timing of orders from the Company’s customers may also result in variability. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying financial statements of the Company are presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. The Company also consolidates majority-owned entities in the United States of America, United Arab Emirates, Kingdom of Saudi Arabia, and South Korea where the Company has the ability to exercise control. Ownership interests of noncontrolling parties are presented as noncontrolling interests or redeemable noncontrolling interests, as applicable. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, the net realizable value of inventory, the fair value of equity investments, 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 Consolidated Financial Statements in future periods. Cash Equivalents Cash equivalents include all highly liquid investments with original maturities of three months or less at the time of purchase. Restricted Cash Restricted cash represents funds that are not readily available for general purpose cash needs due to contractual limitations. Restricted cash is classified as a current or long-term asset based on the timing and nature of when or how the cash is expected to be used or when the restrictions are expected to lapse. As of June 30, 2024 and 2023, the Company had restricted cash of $19.8 and $36.9, respectively, included in Restricted cash in the Consolidated Balance Sheets. The restricted cash balances as of June 30, 2024 and 2023 primarily provide collateral for certain bank guarantees on rent, customs and duty accounts and also consists of collections on factored receivables that remain unremitted to the factor as of June 30, 2024 and 2023. Restricted cash is included as a component of Cash, cash equivalents, and restricted cash in the Consolidated Statement of Cash Flows. Trade Receivables Trade receivables are stated net of the allowance for doubtful accounts and cash discounts, which is based on the evaluation of the accounts receivable aging, specific exposures, and historical trends. We make estimates of expected credit and collectibility trends for the allowance for doubtful accounts based upon our assessment of historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect our ability to collect from customers. Trade receivables are written off on a case-by-case basis, net of any amounts that may be collected. Inventories Inventories include items which are considered salable or usable in future periods, and are stated at the lower of cost or net realizable value, with cost being based on standard cost which approximates actual cost on a first-in, first-out basis. Costs include direct materials, direct labor and overhead (e.g., indirect labor, rent and utilities, depreciation, purchasing, receiving, inspection and quality control) and in-bound freight costs. The Company classifies inventories into various categories based upon their stage in the product life cycle, future marketing sales plans and the disposition process. The Company also records an inventory obsolescence reserve, which represents the excess of the cost of the inventory over its net realizable value, based on product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, and requirements to support forecasted sales. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. Equity Investments The Company elected the fair value option to account for its investment in Rainbow JVCO LTD and subsidiaries (together, "Wella" or the “Wella Company”) to align with the Company’s strategy for this investment. The fair value is updated on a quarterly basis. The investments are classified within Level 3 in the fair value hierarchy because the Company estimates the fair value of the investments using a combination of the income approach, the market approach and private transactions, when applicable. Changes in the fair value of equity investments under the fair value option are recorded in Other (income) expense, net within the Consolidated Statements of Operations (see Note 12—Equity Investments). Property and Equipment and Other Long-lived Assets Property and equipment is stated at cost less accumulated depreciation or amortization. The cost of renewals and betterments is capitalized and depreciated. Expenditures for maintenance and repairs are expensed as incurred. Property and equipment that is disposed of through sale, trade-in, donation, or scrapping is written off, and any gain or loss on the transaction, net of costs to dispose, is recorded in Selling, general and administrative expense. Depreciation and amortization are computed principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives Buildings 20-40 years Marketing furniture and fixtures 3-5 years Machinery and equipment 2-15 years Computer equipment and software 2-5 years Property and equipment under finance leases and leasehold improvements Lesser of lease term or economic life Intangible assets with finite lives are amortized principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives License agreements 2-34 years Customer relationships 2-28 years Trademarks 2-30 years Product formulations and technology 2-28 years Long-lived assets, including tangible and intangible assets with finite lives, are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. When such events or changes in circumstances occur, a recoverability test is performed comparing projected undiscounted cash flows from the use and eventual disposition of an asset or asset group to its carrying value. If the projected undiscounted cash flows are less than the carrying value, an impairment charge would be recorded for the excess of the carrying value over the fair value. The Company estimates fair value based on the best information available, including discounted cash flows and/or the use of third-party valuations. Goodwill and Other Indefinite-lived Intangible Assets Goodwill is calculated as the excess of the cost of purchased businesses over the fair value of their underlying net assets. Goodwill is allocated and evaluated at the reporting unit level, which are the Company’s operating segments. The Company allocates goodwill to one or more reporting units that are expected to benefit from synergies of the business combination. Goodwill and other intangible assets with indefinite lives are not amortized, but are evaluated for impairment annually as of May 1 or whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. When testing goodwill for impairment, the Company has the option of first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as the basis to determine if it is necessary to perform a quantitative goodwill impairment test. In performing its qualitative assessment, the Company considers the extent to which unfavorable events or circumstances identified, such as changes in economic conditions, industry and market conditions or company specific events, could affect the comparison of the reporting unit’s fair value with its carrying amount. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is required to perform a quantitative impairment test. Quantitative impairment testing for goodwill is based upon the fair value of a reporting unit as compared to its carrying value. The Company makes certain judgments and assumptions in allocating assets and liabilities to determine carrying values for its reporting units. To determine fair value of the reporting unit, the Company uses a combination of the income and market approaches, when applicable. Under the income approach, fair value is determined using a discounted cash flow method, projecting future cash flows of each reporting unit, as well as a terminal value, and discounting such cash flows at a rate of return that reflects the relative risk of the cash flows. Under the market approach, when applicable, information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units is utilized to create valuation multiples that are applied to the operating performance of the reporting units being tested, to value the reporting unit. The impairment loss recognized would be the difference between a reporting unit’s carrying value and fair value in an amount not to exceed the carrying value of the reporting unit’s goodwill. Indefinite-lived other intangible assets principally consist of trademarks. The fair values of indefinite-lived other intangible assets are estimated and compared to their respective carrying values. The trademarks’ fair values are based upon the income approach, utilizing the relief from royalty or excess earnings methodology. This methodology assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. An impairment loss is recognized when the estimated fair value of the intangible asset is less than its carrying value. Leases All of the Company’s material leases are operating leases. These are primarily for real estate properties, including corporate offices, retail stores and facilities to support the Company's manufacturing, research and development and distribution operations. For any new or modified lease, the Company, at the inception of the contract, determines whether a contract is or contains a lease. The Company records right-of-use ("ROU") assets and lease obligations for its operating leases, which are initially recognized based on the discounted future lease payments over the term of the lease. Variable lease payments are not included in the measurement of ROU assets and lease liabilities. As the rate implicit in the Company's leases is not easily determinable, the Company’s applicable incremental borrowing rate is used in calculating the present value of the sum of the lease payments. Lease term is defined as the non-cancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company has elected not to recognize ROU asset and lease obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less. As an accounting policy election for all asset classes, the Company elected the practical expedient related to lease and non-lease components, 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. Deferred Financing Fees The Company capitalizes costs related to the issuance of debt instruments, as applicable. Such costs are amortized over the contractual term of the related debt instrument in Interest expense, net using the straight-line method, which approximates the effective interest method, in the Consolidated Statements of Operations. Noncontrolling Interests and Redeemable Noncontrolling Interests Interests held by third parties in consolidated majority-owned subsidiaries are presented as noncontrolling interests, which represents the noncontrolling stockholders’ interests in the underlying net assets of the Company’s consolidated majority- owned subsidiaries. Noncontrolling interests that are not redeemable are reported in the equity section of the Consolidated Balance Sheets. Noncontrolling interests, where the Company may be required to repurchase the noncontrolling interest under a put option or other contractual redemption requirement, are reported in the Consolidated Balance Sheets between liabilities and equity, as redeemable noncontrolling interests. The Company adjusts the redeemable noncontrolling interests to the higher of the redemption value or the carrying value (the acquisition date fair value adjusted for the noncontrolling interest’s share of net income (loss) and dividends) on each balance sheet date with changes recognized as an adjustment to retained earnings, or in the absence of retained earnings, as an adjustment to additional paid-in capital. Revenue Recognition Revenue is recognized at a point in time and/or over time when control of the promised goods or services is transferred to the Company’s customers, which usually occurs upon delivery. Revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods or services. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The Company’s revenue contracts principally represent a performance obligation to sell its beauty products to trade customers and are satisfied when control of promised goods and services is transferred to the customers. Net revenues comprise gross revenues less customer discounts and allowances, actual and expected returns (estimated based on an analysis of historical experience and position in product life cycle) and various trade spending activities. Trade spending activities represent variable consideration promised to the customer and primarily relate to advertising, product promotions and demonstrations, some of which involve cooperative relationships with customers. The costs of trade spend activities are estimated considering all reasonably available information, including contract terms with the customer, the Company’s historical experience and its current expectations of the scope of the activities, and is reflected in the transaction price when sales are recorded. The Company’s payment terms vary by the type and location of its customers and the products offered. The term between invoicing and when payment is due is not significant. The Company’s sales return accrual reflects seasonal fluctuations, including those related to revenues for the holiday season in the first half of the fiscal year. This accrual is a subjective critical estimate that has a direct impact on reported net revenues, and is calculated based on history of actual returns, estimated future returns and information provided by retailers regarding their inventory levels. In addition, as necessary, specific accruals may be established for significant future known or anticipated events. The types of known or anticipated events that the Company has considered, and will continue to consider, include the financial condition of the Company’s customers, store closings by retailers, changes in the retail environment, and the Company’s decision to continue to support new and existing brands. Returns represented 1%, 2% and 2% of gross revenue after customer discounts and allowances in fiscal 2024, 2023 and 2022, respectively. Trade spending activities recorded as a reduction to gross revenue after customer discounts and allowances represented 9%, 10%, and 10% in fiscal 2024, 2023 and 2022, respectively. The Company accounts for certain customer store fixtures as other assets. Such fixtures are amortized using the straight-line method over the period of 3 to 5 years as a reduction of revenue. Cost of Sales Cost of sales includes all of the costs to manufacture the Company’s products. For products manufactured in the Company’s own facilities, such costs include raw materials and supplies, direct labor and factory overhead. For products manufactured for the Company by third-party contractors, such costs represent the amounts invoiced by the contractors. Cost of sales also includes royalty expense associated with license agreements. Additionally, shipping costs, freight-in and depreciation and amortization expenses related to manufacturing equipment and facilities are included in Cost of sales in the Consolidated Statements of Operations. Selling, General and Administrative Expenses Selling, general and administrative expenses include advertising and promotional costs and research and development costs. Also included in Selling, general and administrative expenses are share-based compensation, certain warehousing fees, manufacturing fixed costs, personnel and related expenses, rent on operating leases, and professional fees. Advertising and promotional costs are expensed as incurred and totaled $1,625.5, $1,479.6 and $1,465.1 in fiscal 2024, 2023 and 2022, respectively. Included in advertising and promotional costs are $113.6, $103.0, and $119.4 of depreciation of marketing furniture and fixtures, such as product displays, in fiscal 2024, 2023 and 2022, respectively. Research and development costs are expensed as incurred and totaled $126.8, $105.2 and $97.3 in fiscal 2024, 2023 and 2022, respectively. Share-Based Compensation Common Stock Common shares are available to be awarded for the exercise of phantom units, vested stock options, the settlement of restricted stock units (“RSUs”) and performance restricted stock units (“PRSUs”), and the conversion of Series A Preferred Stock. The Company accounts for its share-based compensation plans for Common Stock as equity awards, aside from phantom units. For those awards treated as equity, share-based compensation expense is measured and fixed at the grant date based on the estimated fair value of the award and is recognized on a straight-line basis, net of estimated forfeitures, over the employee’s requisite service period and, for PRSUs, when it is probable that the performance condition will be achieved. For PRSUs, in a period we determine it is no longer probable that we will achieve certain performance measures for the awards, we reverse the stock-based compensation expense that we had previously recognized and associated with the portion of PRSUs that are no longer expected to vest. The amount of the expense ultimately recognized depends on the number of awards that actually vest. Accordingly, stock-based compensation expense may vary from period to period. The Company accounts for its phantom units as a liability award. For those awards treated as a liability, share-based compensation expense are measured at the end of each reporting period based on the fair value of the award on each reporting date and recognized as an expense to the extent earned. The fair value of stock options is determined using the Black-Scholes valuation model. Equity and liability awards generally vest over a term of three or five years. Treasury Stock The Company accounts for treasury stock under the cost method. When shares are reissued or retired from treasury stock they are accounted for at an average price. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of Additional paid-in-capital in the Company’s Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a reduction of Additional paid-in-capital to the extent that there are treasury stock gains to offset the losses. If there are no treasury stock gains in Additional paid-in-capital, the losses upon re-issuance of treasury stock are recorded as a reduction of Retained earnings in the Company’s Consolidated Balance Sheets. Income Taxes The Company is subject to income taxes in the U.S. and various foreign jurisdictions. The Company accounts for income taxes under the asset and liability method. Therefore, income tax expense is based on reported (Loss) income before income taxes, and deferred income taxes reflect the effect of temporary differences between the carrying amounts of assets and liabilities that are recognized for financial reporting purposes and the carrying amounts that are recognized for income tax purposes. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized based on currently available evidence. The Company considers how to recognize, measure, present and disclose in financial statements uncertain tax positions taken or expected to be taken on a tax return. The Company is subject to tax audits in various jurisdictions. The Company regularly assesses the likely outcomes of such audits in order to determine the appropriateness of liabilities for unrecognized tax benefits (“UTBs”). The Company classifies interest and penalties related to UTBs as a component of the provision for income taxes. For UTBs, the Company first determines whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority. As the determination of liabilities related to UTBs and associated interest and penalties requires significant estimates to be made by the Company, there can be no assurance that the Company will accurately predict the outcomes of these audits, and thus the eventual outcomes could have a material impact on the Company’s operating results or financial condition and cash flows. As a result of the 2017 Tax Act changing the U.S. to a modified territorial tax system, the Company no longer asserts that any of its undistributed foreign earnings are permanently reinvested. The Company does not expect to incur significant withholding or state taxes on future distributions. To the extent there remains a basis difference between the financial reporting and tax basis of an investment in a foreign subsidiary after the repatriation of the previously taxed income, the Company is permanently reinvested. A determination of the unrecognized deferred taxes related to these components is not practicable. The Tax Act requires a U.S. shareholder of a foreign corporation to include in income its global intangible low-taxed income (“GILTI”). In general, GILTI is described as the excess of a U.S. shareholder’s total net foreign income over a deemed return on tangible assets. An entity may choose to recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or an entity can elect to treat GILTI as a period cost and include it in the tax expense of the year it is incurred. As such, the Company has elected to treat the tax on GILTI as a tax expense in the year it is incurred rather than recognizing deferred taxes. Restructuring Costs Charges incurred in connection with plans to restructure and integrate acquired businesses or in connection with cost-reduction initiatives that are initiated from time to time are included in Restructuring costs in the Consolidated Statements of Operations if such costs are directly associated with an exit or disposal activity, a reorganization, or with integrating an acquired business. These costs can include employee separations, contract and lease terminations, and other direct exit costs. Employee severance and other termination benefits are primarily determined based on established benefit arrangements, local statutory requirements or historical practices. The Company recognizes these benefits when payment is probable and estimable. Other business realignment costs represent the incremental cost directly related to the restructuring activities which can include accelerated depreciation, professional or consulting fees and other internal costs including compensation related costs for dedicated internal resources. Other business realignment costs are generally recorded in Selling, general and administrative expenses in the Consolidated Statements of Operations. Fair Value Measurements The following fair value hierarchy is used in selecting inputs for those assets and liabilities measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The Company evaluates these inputs and recognizes transfers between levels, if any, at the end of each reporting period. The hierarchy consists of three levels: Level 1 - Valuation based on quoted market prices in active markets for identical assets or liabilities; Level 2 - Valuation based on inputs other than Level 1 inputs that are observable for the assets or liabilities either directly or indirectly; Level 3 - Valuation based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and supported by little or no observable market activity. Apart from Coty’s equity investment in Wella (see Note 12—Equity Investments), the Company has not elected the fair value measurement option for any financial instruments or other assets not required to be measured at fair value on a recurring basis. Derivative Instruments and Hedging Activities All derivatives are recognized as assets or liabilities and measured at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For derivative instruments designated as cash flow hedges under FASB ASC Topic 815, "Derivatives and Hedging" ("ASC 815"), the change in fair value of the derivative is initially recorded in Accumulated other comprehensive (loss) income in the Consolidated Balance Sheets and is subsequently recognized in earnings when the hedged exposure impacts earnings. For derivative instruments that are not designated as hedges, gains (losses) from changes in fair values are recognized in Net income (loss). The Company does not enter into derivatives for trading or speculative purposes. Foreign Currency Exchange gains or losses incurred on non-financing foreign exchange currency transactions conducted by one of the Company’s operations in a currency other than the operation’s functional currency are reflected in Cost of sales or operating expenses. Net (losses)/gains of $(18.1), $(32.3) and $3.3 in fiscal 2024, 2023 and 2022, respectively resulting from non-financing foreign exchange currency transactions are included in the Consolidated Statements of Operations. Assets and liabilities of foreign operations are translated into U.S. dollars at the rates of exchange in effect at the end of the reporting period. Income and expense items are translated at the average exchange rates prevailing during each reporting period presented. Translation gains or losses are reported as cumulative adjustments in Accumulated other comprehensive income (loss) (“AOCI/(L)”). Net (losses)/gains of $(16.5), $(12.2) and $10.0 in fiscal 2024, 2023 and 2022, respectively, resulting from financing foreign exchange currency transactions are included in Interest expense, net in the Consolidated Statements of Operations. Lacoste Fragrances License Termination During fiscal 2023, the Company terminated its licensing arrangement for Lacoste fragrances and received termination payments from the licensor totaling €87.8 million (approximately $93.9). The Company recognized a net gain within Selling, general and administrative expenses of $104.4 reflecting the termination proceeds, net of estimated expenses for contractual termination obligations and non-recoverable assets associated with the license termination. During fiscal 2024, the Company received an additional payment of €15.0 million (approximately $16.2) and made contractual termination payments of $4.9. The Company completed sales of remaining Lacoste fragrances inventory through December of calendar year 2023, as per a contractual inventory sell-off arrangement, and recognized a loss of $0.6 within Selling, general and administrative expenses reflecting the disposal of remaining inventory in fiscal 2024. Russia Market Exit On April 27, 2022, the Company announced the Board of Directors’ decision to wind down its Russian operations. During fiscal 2022, the Company recognized total pre-tax charges in the Consolidated Statements of Operations of $83.6 associated with its exit of Russia. These charges are primarily related to the net realizable value of assets associated with the Russian business. These charges consisted of $45.5 in Selling, general and administrative expenses, primarily related to the write-down of working capital, long-term assets, as well as contract termination charges, contingent liabilities and legal costs, $31.4 in Asset impairment charges related to the impairment of indefinite-lived intangibles, $6.3 in Restructuring costs related to employee severances, and $0.4 in Cost of sales related to inventory write-downs. The Company incurred $24.1 of income tax charges associated with this decision. During fiscal 2023, the Company recognized total pre-tax gains in the Consolidated Statements of Operations The Company anticipates that it will incur an immaterial amount of additional costs through completion of the wind down. Additionally, management anticipates derecognizing the cumulative translation adjustment balance pertaining to the Russian subsidiary. The Company has substantially completed its commercial activities in Russia. However, the Company anticipates that the process related to the liquidation of the Russian legal entity will take an extended period of time. Recently Issued and Not Yet Adopted Accounting Pronouncements Accounting Standard Update(s) Topic Effective Period Summary 2023-09 Income Taxes (Topic 740) - Improvements to Income Tax Disclosures Fiscal 2026 The FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates, as well as additional disaggregation of taxes paid. The amendments in the ASU also remove disclosures related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 is effective for the Company in fiscal 2026. The amendments may be applied prospectively or retrospectively, and early adoption is permitted. The Company will adopt the standard and make the additional required disclosures beginning in the first quarter of fiscal 2026. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures Fiscal 2025 The FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public e |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On June 1, 2020, the Comp any entered into a definitive agreement with Rainbow UK Bidco Limited (“KKR Bidco”), regarding a strategic transaction for the sale of Coty’s Professional and Retail Hair businesses, including the Wella, Clairol, OPI and ghd brands, (together, the “Wella Business”). The transaction was completed on November 30, 2020 and Coty retained an initial ownership of 40% of the Wella Company. As of June 30, 2024, the Company owned a 25.84% stake in the Wella Company. See Note 12—Equity Investments for additional information. Net income from discontinued operations for the year ended June 30, 2022 reflects certain working capital adjustments of $(6.1) net of the related income tax impact of $0.4. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING 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. Certain income and shared costs and the results of corporate initiatives are managed by Corporate. Corporate primarily includes stock compensation expense, restructuring and realignment costs, costs related to acquisition and divestiture activities, and impairments of long-lived assets, goodwill and intangibles that are not attributable to ongoing operating activities of the segments. Corporate costs are not used by the CODM to measure the underlying performance 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 by segment is presented in Note 11—Goodwill and Other Intangible Assets, net. Year Ended June 30, SEGMENT DATA 2024 2023 2022 Net revenues: Prestige $ 3,857.3 $ 3,420.5 $ 3,267.9 Consumer Beauty 2,260.7 2,133.6 2,036.5 Total $ 6,118.0 $ 5,554.1 $ 5,304.4 Depreciation and amortization: Prestige $ 258.9 $ 262.4 $ 313.4 Consumer Beauty 162.2 164.3 203.0 Total $ 421.1 $ 426.7 $ 516.4 Operating income (loss) from continuing operations Prestige $ 580.7 $ 483.7 $ 367.2 Consumer Beauty 89.3 63.3 9.5 Corporate (123.3) (3.3) (135.8) Total $ 546.7 $ 543.7 $ 240.9 Reconciliation: Operating income from continuing operations $ 546.7 $ 543.7 $ 240.9 Interest expense, net 252.0 257.9 224.0 Other expense (income), net 90.2 (419.0) (409.9) Income from continuing operations before income taxes $ 204.5 $ 704.8 $ 426.8 As of June 30, Long-lived assets: 2024 2023 U.S. $ 3,477.7 $ 3,597.3 Netherlands 3,066.3 3,367.5 Brazil 441.9 495.0 All other 1,204.3 1,039.0 Total $ 8,190.2 $ 8,498.8 For Net revenues, a major country is defined as a group of subsidiaries in a country with combined revenues greater than 10% of consolidated net revenues or as otherwise deemed significant. The United States is the only country that accounts for more than 10% of total net revenues for fiscal years 2024, 2023 and 2022. The United States had net revenues of $1,617.7, $1,547.7 and $1,477.7 in fiscal 2024, 2023 and 2022, respectively. No customer or group of affiliated customers accounted for more than 10% of the Company’s Net revenues in fiscal 2024, 2023 and 2022 or are otherwise deemed significant. For Long-lived assets, a major country is defined as a group of subsidiaries within a country with combined long-lived assets greater than 10% of consolidated long-lived assets or as otherwise deemed significant. Long-lived assets include property and equipment, goodwill and other intangible assets. Presented below are the net revenues associated with Company’s product categories as a percentage of total net revenues for continuing operations: Year Ended June 30, PRODUCT CATEGORY 2024 2023 2022 Fragrances 61.3 % 59.4 % 58.9 % Color Cosmetics 26.4 % 27.9 % 28.7 % Body Care, Skin & Other 12.3 % 12.7 % 12.4 % Total 100.0 % 100.0 % 100.0 % |
ACQUISITION- AND DIVESTITURE-RE
ACQUISITION- AND DIVESTITURE-RELATED COSTS | 12 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [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 and can include finder’s fees, legal, accounting, valuation, other professional or consulting fees, and other internal costs which can include compensation related expenses for dedicated internal resources. The Company recognized acquisition-related costs of nil, nil and nil for the fiscal years ended 2024, 2023 and 2022, respectively. Divestiture-related costs, which are expensed as incurred, represent non-restructuring costs directly related to divesting and selling an entity, including partial sales, 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, for divestitures, the Company includes write-offs of assets that are no longer recoverable and contract related costs due to the divestiture. The Company recognized divestiture-related costs of nil, nil and $14.7 for the fiscal 2024, 2023 and 2022, respectively. Divestiture-related costs incurred during the fiscal year 2022 were primarily related to the strategic transaction with KKR for the sale of a majority stake in the Wella Business. See Note 3—Discontinued Operations for information on the strategic transaction. These costs have been recorded in Acquisition- and divestiture- related costs in the Consolidated Statements of Operations. |
RESTRUCTURING COSTS
RESTRUCTURING COSTS | 12 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING COSTS | RESTRUCTURING COSTS Restructuring costs for the fiscal years ended June 30, 2024, 2023 and 2022 are presented below: Year Ended June 30, 2024 2023 2022 Transformation Plan $ (1.2) $ (6.5) $ (6.5) Current Restructuring Actions 37.9 — — Total $ 36.7 $ (6.5) $ (6.5) Transformation Plan On July 1, 2019, the Company announced a four-year plan to drive substantial improvement in and optimization in the Company's businesses (the “Turnaround Plan”). This plan was expanded on May 11, 2020 to further reduce fixed costs (the “Transformation Plan”). Of the expected costs, the Company has incurred cumulative restructuring charges of $214.3 related to approved initiatives through June 30, 2024, which have been recorded in Corporate. As of June 30, 2024, the Company does not expect to incur any additional restructuring charges pertaining to the Transformation Plan. The following table presents aggregate restructuring charges for the program: Severance and Employee Benefits Fixed Asset Write-offs Other Exit Costs Total Fiscal 2020 $ 151.2 $ (1.1) $ 6.5 $ 156.6 Fiscal 2021 $ 73.4 $ (0.5) $ 0.3 $ 73.2 Fiscal 2022 (6.2) — (0.3) $ (6.5) Fiscal 2023 (6.5) — — (6.5) Fiscal 2024 (2.5) — — (2.5) Cumulative through June 30, 2024 209.4 (1.6) 6.5 214.3 The related liability balance and activity of restructuring costs for the Transformation Plan are presented below: Severance and Total Balance—July 1, 2023 $ 10.0 $ 10.0 Restructuring charges 0.2 0.2 Payments (3.0) (3.0) Changes in estimates and reclassification (a) (2.7) (2.7) Effect of exchange rates 0.2 0.2 Balance—June 30, 2024 $ 4.7 $ 4.7 (a) Including certain reclassification to Current Restructuring Actions. The Company currently estimates that the total remaining accrual of $4.7 will result in cash expenditures of approximately $4.6 and $0.1 in fiscal 2025 and 2026 and thereafter, respectively. Current Restructuring Actions |
TRADE RECEIVABLES - FACTORING
TRADE RECEIVABLES - FACTORING | 12 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
TRADE RECEIVABLES—FACTORING | TRADE RECEIVABLES—FACTORING The Company factors a portion of its trade receivables with unrelated third-party factoring companies on both a recourse and non-recourse basis. The Company accounts for trade receivable transfers as sales and derecognizes the sold receivables from the Consolidated Balance Sheets. The net amount utilized under factoring facilities was $195.3 and $202.9 as of June 30, 2024 and 2023, respectively. The aggregate amount of trade receivable invoices on a worldwide basis amounted to $1,534.3 and $1,579.2 in fiscal 2024 and 2023, respectively. Remaining balances due from factors amounted to $10.0 and $14.2 as of June 30, 2024 and 2023, respectively, and are included in Trade receivables, net in the Consolidated Balance Sheets. Factoring fees paid under these arrangements were $10.3, $8.5 and $3.0 in fiscal 2024, 2023 and 2022, respectively, which were recorded in Selling, general and administrative expenses in the Consolidated Statements of Operations. Cash received from the selling of receivables are presented as a change in trade receivables within the operating activities section of the Consolidated Statements of Cash Flows. U.S. Receivables Purchase Agreement On March 19, 2019, the Company entered into an Uncommitted Receivables Purchase Agreement (the “Receivables Purchase Agreement”) with a financial institution, with an aggregate facility limit of $150.0. Eligible trade receivables are purchased by the financial institution for cash at net invoice value less a factoring fee. Pursuant to Receivables Purchase Agreement, the Company acts as collections agent for the financial institution and is responsible for the collection, and remittance to the financial institution, of all customer payments related to trade receivables factored under this arrangement. For certain customer receivables factored, the Company will retain a recourse obligation of up to 10 percent of the respective invoice’s net invoice value, payable to the financial institution if the customer’s payment is not received by the contractual due date. The 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. European Receivables Purchase Agreement In September 2019, the Company entered into a factoring agreement with a financial institution, which allows for the transfer of receivables from certain of the Company’s European subsidiaries, in exchange for cash (the “European Receivables Purchase Agreement”). The total outstanding amount permitted among such subsidiaries is €143.0 million. Factoring of such receivables under the European Receivables Purchase Agreement is executed on a non-recourse basis. Other Factoring Agreements In addition to the Company’s main factoring facilities described above, from time to time, certain of the Company’s subsidiaries may enter into local factoring agreements with local financial institutions. Based on the terms of such arrangements entered into during fiscal 2024 and 2023, the Company has derecognized receivables sold pursuant to these arrangements from the Consolidated Balance Sheets. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories as of June 30, 2024 and 2023 are presented below: June 30, June 30, Raw materials $ 201.2 $ 224.1 Work-in-process 10.4 15.6 Finished goods 552.5 613.7 Total inventories $ 764.1 $ 853.4 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets as of June 30, 2024 and 2023 are presented below: June 30, June 30, Due from related party $ 40.0 $ 70.6 Value added tax, sales and other non-income tax assets 99.4 60.2 Expected income tax refunds, credits and prepaid income taxes 101.4 102.4 Prepaid marketing, copyright and agency fees 94.4 88.7 Non-trade receivables 21.4 18.4 Prepaid rent, leases, maintenance and insurance 18.8 17.5 Interest rate swap asset — 2.8 Forward Repurchase Contracts Asset 29.1 137.6 Other 32.7 55.4 Total prepaid expenses and other current assets $ 437.2 $ 553.6 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net as of June 30, 2024 and 2023 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 428.6 $ 432.1 Machinery and equipment 694.0 676.4 Marketing furniture and fixtures 568.4 531.8 Computer equipment and software 776.0 751.5 Construction in progress 110.0 81.6 Property and equipment, gross 2,577.0 2,473.4 Accumulated depreciation and amortization (1,858.1) (1,760.5) Property and equipment, net $ 718.9 $ 712.9 Depreciation expense of property and equipment totaled $227.7, $235.0 and $309.0 in fiscal 2024, 2023 and 2022, respectively. Depreciation expense is recorded in Cost of sales and Selling, general and administrative expenses in the Consolidated Statements of Operations. During fiscal 2024, 2023 and 2022, the Company recorded asset impairment charges of $1.7, $4.3 and $2.4 respectively, which are included in Selling, general and administrative expenses in the Consolidated Statements of Operations. The fiscal 2024, 2023, and 2022 impairment charges primarily related to the abandonment of machinery and equipment, the abandonment of distribution equipment and IT software, the abandonment of computer software, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Assessment for Impairments The Company tests goodwill and indefinite-lived other intangible assets for impairment at least annually as of May 1, or more frequently, if certain events or circumstances warrant. During fiscal years 2024, 2023, and 2022, the Company recorded no impairments of goodwill at the Company’s reporting units. During fiscal years 2024, 2023, and 2022, the Company recorded total impairments of nil, nil and $31.4, respectively, on indefinite-lived other intangible assets. Additionally, the Company recorded no impairments on finite-lived other intangible assets during fiscal years 2024, 2023, and 2022. Goodwill Goodwill as of June 30, 2024, 2023 and 2022 is presented below: Prestige Consumer Beauty Total Gross balance at June 30, 2022 $ 6,220.7 $ 1,734.1 $ 7,954.8 Accumulated impairments (3,110.3) (929.8) (4,040.1) Net balance at June 30, 2022 $ 3,110.4 $ 804.3 $ 3,914.7 Changes during the year ended June 30, 2023 Foreign currency translation 58.5 14.7 73.2 Gross balance at June 30, 2023 $ 6,279.2 $ 1,748.8 $ 8,028.0 Accumulated impairments (3,110.3) (929.8) (4,040.1) Net balance at June 30, 2023 $ 3,168.9 $ 819.0 $ 3,987.9 Changes during the year ended June 30, 2024 Foreign currency translation (64.6) (17.6) (82.2) Gross balance at June 30, 2024 $ 6,214.6 $ 1,731.2 $ 7,945.8 Accumulated impairments (3,110.3) (929.8) (4,040.1) Net balance at June 30, 2024 $ 3,104.3 $ 801.4 $ 3,905.7 Other Intangible Assets, net Other intangible assets, net as of June 30, 2024 and 2023 are presented below: June 30, June 30, Indefinite-lived other intangible assets $ 944.6 $ 950.8 Finite-lived other intangible assets, net 2,621.0 2,847.2 Total Other intangible assets, net $ 3,565.6 $ 3,798.0 The changes in the carrying amount of indefinite-lived other intangible assets are presented below: Trademarks Total Gross balance at June 30, 2022 $ 1,881.5 $ 1,881.5 Accumulated impairments (944.9) (944.9) Net balance at June 30, 2022 $ 936.6 $ 936.6 Changes during the year ended June 30, 2023 Foreign currency translation 14.2 14.2 Gross balance at June 30, 2023 $ 1,895.7 $ 1,895.7 Accumulated impairments (944.9) (944.9) Net balance at June 30, 2023 $ 950.8 $ 950.8 Changes during the year ended June 30, 2024 Foreign currency translation (6.2) (6.2) Gross balance at June 30, 2024 $ 1,889.5 $ 1,889.5 Accumulated impairments $ (944.9) $ (944.9) Net balance at June 30, 2024 944.6 944.6 Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2023 License and collaboration agreements $ 3,756.2 $ (1,282.6) $ (19.6) $ 2,454.0 Customer relationships 750.6 (505.9) (5.5) 239.2 Trademarks 313.0 (180.6) (0.5) 131.9 Product formulations and technology 85.6 (63.5) — 22.1 Total $ 4,905.4 $ (2,032.6) $ (25.6) $ 2,847.2 June 30, 2024 License and collaboration agreements $ 3,715.1 $ (1,422.5) $ (19.6) $ 2,273.0 Customer relationships 741.8 (527.8) (5.5) 208.5 Trademarks 311.7 (192.4) (0.5) 118.8 Product formulations and technology 83.7 (63.0) — 20.7 Total $ 4,852.3 $ (2,205.7) $ (25.6) $ 2,621.0 Amortization expense totaled $193.4, $191.8 and $207.4 for the fiscal years ended June 30, 2024, 2023 and 2022, respectively. Intangible assets subject to amortization are amortized principally using the straight-line method and have the following weighted-average remaining lives: Description License and collaboration agreements 19.4 Customer relationships 15.3 Trademarks 14.4 Product formulations and technology 20.3 As of June 30, 2024, the remaining weighted-average life of all intangible assets subject to amortization is 18.9 years. The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below: 2025 $ 189.0 2026 158.0 2027 148.5 2028 145.0 2029 142.8 License Agreements The Company records assets for license agreements (“licenses”) acquired in transactions accounted for as business combinations. These licenses provide the Company with the exclusive right to manufacture and market on a worldwide and/or regional basis, certain of the Company’s products which comprise a significant portion of the Company’s revenues. These licenses have initial terms covering various periods. Certain brand licenses provide for automatic extensions ranging from 2 to 10 year terms, at the Company’s discretion. |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 12 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
EQUITY INVESTMENTS | EQUITY INVESTMENTS The Company's equity investments, classified as Equity investments on the Consolidated Balance Sheets, as of June 30, 2024 are represented by the following: June 30, June 30, Equity method investments: KKW Holdings (a) $ 5.6 $ 8.9 Equity investments at fair value: Wella (b) 1,085.0 1,060.0 Total equity investments $ 1,090.6 $ 1,068.9 (a) On January 4, 2021, the Company completed its purchase of 20% of the outstanding equity of KKW Holdings. During the years ended 2024, 2023 and 2022, the Company recognized $3.3, $3.7 and $3.6, respectively, representing its share of the investee’s net loss and the amortization of basis differences in Other expense (income), net within the Consolidated Statements of Operations. (b) As of June 30, 2024 and 2023, the Company's stake in Wella was 25.84% and 25.85%, respectively. The following table presents summarized financial information of the Company’s equity method investees for the years ended June 30, 2024 and 2023. Amounts presented represent combined totals at the investee level and not the Company’s proportionate share: Summarized Statements of Operations information: Year Ended Year Ended Net revenues $ 2,590.1 $ 2,477.7 Gross profit 1,732.8 1,616.2 Operating income 42.7 163.6 Loss before income taxes (176.4) (33.6) Net loss (133.8) (76.2) Summarized Balance Sheets information: June 30, June 30, Current assets $ 1,080.4 $ 1,093.4 Noncurrent assets 4,322.3 4,554.5 Total assets 5,402.7 5,647.9 Current liabilities 967.3 1,038.9 Noncurrent liabilities 2,687.6 2,708.5 Total liabilities 3,654.9 3,747.4 As of June 30, 2024, the Wella Company had 30.0 million shares of issued common stock, of which Coty held 25.84%. The Wella Company had total equity inclusive of redeemable preferred stock of $1,798.8 as of June 30, 2024. The following table summarizes movements in equity investments with fair value option that are classified within Level 3 for the period ended June 30, 2024. There were no internal movements to or from Level 3 from Level 1 or Level 2 for the period ended June 30, 2024. Equity investments at fair value: Balance as of June 30, 2023 $ 1,060.0 Total gains/(losses) included in earnings 25.0 Balance as of June 30, 2024 $ 1,085.0 Level 3 significant unobservable inputs sensitivity The following table summarizes the significant unobservable inputs used in Level 3 valuation of the Company’s investments carried at fair value as of June 30, 2024. Included in the table are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments. Fair value Valuation Technique Unobservable input Range Equity investments at fair value $ 1,085.0 Discounted cash flows Discount rate 9.75% (a) Growth rate 1.8% - 11.0% (a) Market multiple Revenue multiple 2.0x-2.2x (b) EBITDA multiple 10.2x – 11.8x (b) (a) The primary unobservable inputs used in the fair value measurement of the Company’s equity investments with fair value option, when using a discounted cash flow method, are the discount rate and revenue growth rate. Significant increases (decreases) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement. The Company estimates the discount rate based on the investees' projected cost of equity and debt. The revenue growth rate is forecasted for future years by the investee based on their best estimates. Significant increases (decreases) in the revenue growth rate in isolation would result in a significantly higher (lower) fair value measurement. (b) The primary unobservable inputs used in the fair value measurement of the Company’s equity investments with fair value option, when using a market multiple method, are the revenue multiple and EBITDA multiple. Significant increases (decreases) in the revenue multiple or EBITDA multiple in isolation would result in a significantly higher (lower) fair value measurement. The market multiples are derived from a group of guideline public companies. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities as of June 30, 2024 and 2023 consist of the following: June 30, June 30, Advertising, marketing and licensing $ 331.4 $ 338.4 Customer returns, discounts, allowances and bonuses 220.4 261.5 Compensation and other compensation related benefits 188.7 171.1 Value added, sales and other non-income taxes 99.1 71.5 Derivative liability for foreign currency 16.3 4.3 Restructuring costs 29.6 8.9 Interest 70.5 47.0 Auditing, consulting, legal and litigation accruals 27.1 25.2 Deferred income 7.5 6.9 Factoring - due to counterparty 6.6 23.0 Unfavorable contract liability 10.3 10.5 Due to related party — 8.3 Cross currency swap liability — 0.5 Other 59.8 64.9 Total accrued expenses and other current liabilities $ 1,067.3 $ 1,042.0 |
DEBT
DEBT | 12 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT June 30, June 30, Short-term debt $ — $ — Senior Secured Notes 2026 Dollar Senior Secured Notes due April 2026 650.0 900.0 2026 Euro Senior Secured Notes due April 2026 748.1 761.0 2027 Euro Senior Secured Notes due May 2027 534.3 — 2028 Euro Senior Secured Notes due September 2028 534.3 — 2029 Dollar Senior Secured Notes due January 2029 500.0 500.0 2030 Dollar Senior Secured Notes due July 2030 750.0 — 2018 Coty Credit Agreement 2023 Coty Revolving Credit Facility due July 2028 — — 2021 Coty Revolving Credit Facility due April 2025 — 228.9 2018 Coty Term B Facility due April 2025 — 1,183.7 Senior Unsecured Notes 2026 Dollar Notes due April 2026 — 473.0 2026 Euro Notes due April 2026 192.7 196.0 Brazilian Credit Facility — 31.9 Finance lease obligations 4.3 7.1 Total debt 3,913.7 4,281.6 Less: Short-term debt and current portion of long-term debt (3.0) (57.9) Total Long-term debt 3,910.7 4,223.7 Less: Unamortized financing fees and discounts on long-term debt (68.9) (45.5) Total Long-term debt, net $ 3,841.8 $ 4,178.2 Short-Term Debt The Company maintains short-term lines of credit with financial institutions around the world. Total available lines of credit were $59.4 and $49.2, of which nil and nil were outstanding at June 30, 2024 and 2023, respectively. Interest rates on these short-term lines of credit vary depending on market rates for borrowings within the respective geographic locations plus applicable spreads. Interest rates plus applicable spreads on these lines ranged from 4.7% to 12.4% and from 4.8% to 16.4% as of June 30, 2024 and 2023, respectively. The weighted-average interest rate on short-term debt outstanding was 0.0% and 0.0% as of June 30, 2024 and 2023, respectively. In addition, the Company had undrawn letters of credit of $4.1 and $7.2 and bank guarantees of $18.4 and $16.3 as of June 30, 2024 and 2023, respectively. Long-Term Debt The Company’s long-term debt facilities consisted of the following as of June 30, 2024 and 2023: Facility Maturity Date Borrowing Capacity (in millions) as of June 30, 2024 Interest Rate Terms Applicable Interest Rate Spread as of June 30, 2024 Debt Discount Repayment Schedule Fiscal 2024 and 2023 2027 Euro Senior Secured Notes May 2027 €500.0 4.50% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2024 4.50% N/A (b) Payable in full at maturity date 2028 Euro Senior Secured Notes September 2028 €500.0 5.75% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2024 5.75% N/A (b) Payable in full at maturity date 2030 Dollar Senior Secured Notes July 2030 $750.0 6.625% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2024 6.625% N/A (b) Payable in full at maturity date 2023 Coty Revolving Credit Facility (f) (g) July 2028 $1,670.0 and €300.0 SOFR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company's total net leverage ratio (c) (d) (e) 1.50% N/A (b) Payable in full at maturity date 2029 Dollar Senior Secured Notes January 2029 $500.0 4.75% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2022 4.75% N/A (b) Payable in full at maturity date 2021 Coty Revolving Credit Facility (f) (g) April 2025 $— SOFR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) (e) 1.75% N/A (b) Replaced by 2023 Coty Revolving Credit Facility Brazilian Credit Facilities - October 2023 October 2023 $— 3.48% per annum, payable quarterly in arrears beginning on July 5, 2022 3.48% N/A (b) Repaid in full 2026 Dollar Senior Secured Notes April 2026 $650.0 5.0% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2021 5.00% N/A (b) Payable in full at maturity date 2026 Euro Senior Secured Notes April 2026 €700.0 3.875% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2021 3.875% N/A (b) 2018 Coty Term B Facility - USD Portion (g) April 2025 $— SOFR (a) plus a margin of 2.25% per annum or a base rate plus a margin of 1.25% per annum (d) 2.25% 0.25% Quarterly repayments beginning September 30, 2018 at 0.25% of original principal amount 2018 Coty Term B Facility - EUR Portion (g) April 2025 €— SOFR (a) plus a margin of 2.50% per annum (d) 2.50% 0.25% 2026 Dollar April 2026 $— 6.5% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018 N/A (b) N/A (b) Payable in full at maturity date 2026 Euro April 2026 €180.3 4.75% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018 N/A (b) N/A (b) (a) As defined in the Interest section below. (b) N/A - Not Applicable. (c) As defined per the 2018 Coty Credit Agreement, as amended. (d) The selection of the applicable one, two, three, six or twelve month interest rate for the period is at the discretion of the Company. (e) The Company will pay to the Revolving Credit Facility lenders an unused commitment fee calculated at a rate ranging from 0.10% to 0.35% per annum, based on the Company’s total net leverage ratio (d) . As of June 30, 2024 and 2023, the applicable rate on the unused commitment fee was 0.25% and 0.25%, respectively. (f) As a result of the amendments entered into in fiscal 2024, the 2021 Coty Revolving Credit Facility was refinanced and replaced by the 2023 Coty Revolving Credit Facility due July 11, 2028 (as described below). (g) Except as described below in amendments to the 2018 Coty Credit Agreement, as amended (as defined below), original terms of the 2018 Coty Credit Agreement apply to these debt facilities. Fiscal 2024 Developments Offering of Senior Secured Notes On July 26, 2023, the Company issued an aggregate principal amount of $750.0 of 6.625% senior secured notes due 2030 (“2030 Dollar Senior Secured Notes”) in a private offering. Coty received net proceeds of $740.6 in connection with the offering of the 2030 Dollar Senior Secured Notes. In accordance with the 2018 Coty Credit Agreement (as defined below), as amended, the net proceeds received from this offering were utilized to pay down the outstanding balance of the U.S. dollar and euro portions of the 2018 Coty Term B Facility, as defined below, by $715.5 and €22.6 million (approximately $25.1), respectively, in addition to related fees and expenses to this offering. See the 2018 Term B Facility Repayment section below for discussion of the final repayment of the 2018 Term B Facility . On September 19, 2023, the Company issued an aggregate principal amount of €500.0 million of 5.750% senior secured notes due 2028 ("2028 Euro Senior Secured Notes") in a private offering. Coty received net proceeds of €493.8 million in connection with the offering of the 2028 Euro Senior Secured Notes. In accordance with the 2018 Coty Credit Agreement (as defined below), as amended, the net proceeds received from this offering were utilized to pay down a portion of the borrowings outstanding under the 2023 Coty Revolving Credit Facility, without a reduction in commitment. Coty used cash on hand to pay the related fees and expenses to this offering. On May 30, 2024, the Company issued an aggregate principal amount of €500.0 million of 4.50% senior secured notes due 2027 ("2027 Euro Senior Secured Notes") in a private offering. Coty received net proceeds of €493.7 million in connection with the offering of the 2027 Euro Senior Secured Notes. The net proceeds received from this offering were utilized to redeem the remaining $323.0 of existing 2026 Dollar Notes. The remaining net proceeds from this offering were utilized to pay down a portion of the borrowings outstanding under the 2023 Coty Revolving Credit Facility, without a reduction in commitment. Coty used a combination of proceeds from the issuance and cash on hand to pay fees and expenses associated with this offering. Cash Tender Offers On December 7, 2023, the Company completed its previously announced cash tender offers and redeemed $150.0 of the Company's 2026 Dollar Notes (as defined below) and $250.0 of the Company's 2026 Dollar Senior Secured Notes (as defined below). Refinancing Amendment On July 11, 2023, the Company entered into an amendment to the 2018 Coty Credit Agreement that (i) refinanced all of the existing $2,000.0 of revolving credit commitments and the outstanding loans made pursuant thereto (the "2021 Coty Revolving Credit Facility") with two new tranches of senior secured revolving credit commitments, one in an aggregate principal amount of $1,670.0 available in U.S. dollars and certain other currencies and the other in an aggregate principal amount of €300.0 million available in euros, maturing in July 2028 (together, the "2023 Coty Revolving Credit Facility"), (ii) provided for a credit spread adjustment of 0.10% for all interest periods, with respect to Secured Overnight Financing Rate ("SOFR") loans, (iii) added Fitch as a relevant rating agency for purposes of the collateral release provisions and determining applicable interest rates and fees and (iv) provided that certain covenants will cease to apply during a collateral release period. 2018 Term B Facility Repayment On August 3, 2023, the Company repaid €408.0 million (approximately $446.1) of the debt outstanding under the 2018 Term B Facility. Paydown of Brazilian Credit Facility On October 5, 2023, a wholly-owned subsidiary of the Company utilized cash on hand to fully paid down the U.S. Dollar-denominated credit facility in Brazil in the amount of $31.9. Senior Secured Notes On April 21, 2021, the Company issued an aggregate principal amount of $900.0 of 5.00% senior secured notes due 2026 (the “2026 Dollar Senior Secured Notes”). Coty received gross proceeds of $900.0 in connection with the offering of the 2026 Dollar Senior Secured Notes. On June 16, 2021, the Company issued an aggregate principal amount of €700.0 of 3.875% senior secured notes due 2026 (the “2026 Euro Senior Secured Notes”) in a private offering. Coty received gross proceeds of €700.0 in connection with the offering of the 2026 Euro Senior Secured Notes. On November 30, 2021, the Company issued an aggregate principal amount of $500.0 of 4.75% senior secured notes due 2029 ("2029 Dollar Senior Secured Notes" and, together with the 2026 Dollar Senior Secured Notes, 2026 Euro Senior Secured Notes, 2027 Euro Senior Secured Notes, 2028 Euro Senior Secured Notes, 2029 Dollar Senior Secured Notes and 2030 Dollar Senior Secured Notes, the “Senior Secured Notes”). Coty received gross proceeds of $500.0 in connection with the offering of the 2029 Dollar Senior Secured Notes. See the above Recent Developments section for the issuances of the 2027 and 2028 Euro Senior Secured Notes, and 2030 Dollar Senior Secured Notes. Coty used the gross proceeds of the offerings of the Senior Secured Notes to repay a portion of the term loans outstanding under the existing credit facilities and to pay related fees and expenses thereto. The Senior Secured Notes are senior secured obligations of Coty and are guaranteed on a senior secured basis by each of Coty’s wholly-owned domestic subsidiaries that guarantees Coty’s obligations under its existing senior secured credit facilities and are secured by first priority liens on the same collateral that secures Coty’s obligations under its existing senior secured credit facilities, as described above. The Senior Secured Notes and the guarantees are equal in right of payment with all of Coty’s and the guarantors’ respective existing and future senior indebtedness and are pari passu with all of Coty’s and the guarantors’ respective existing and future indebtedness that is secured by a first priority lien on the collateral, including the existing senior secured credit facilities, to the extent of the value of such collateral. For the 2027 Euro Senior Secured Notes, the 2028 Euro Senior Secured Notes and the 2030 Dollar Senior Secured Notes, the collateral security and certain covenants will be released upon the respective Senior Secured Notes achieving investment grade ratings from two out of the three ratings agencies. Optional Redemption Applicable Premium The indentures governing the Senior Secured Notes specify the Applicable Premium (as defined in the respective indentures) to be paid upon early redemption of some or all of the Senior Secured Notes prior to, and on or after, April 15, 2023 for the 2026 Euro Senior Secured Notes and 2026 Dollar Senior Secured Notes, September 15, 2025 for the 2028 Euro Senior Secured Notes, May 15, 2026 for the 2027 Euro Senior Secured Notes, January 15, 2025 for the 2029 Dollar Senior Secured Notes, and July 15, 2026 for the 2030 Dollar Senior Secured Notes (the "Early Redemption Dates"). The Applicable Premium related to the respective Senior Secured Notes on any redemption date and as calculated by the Company is the greater of: (1) 1.0% of the then outstanding principal amount of the respective Senior Secured Notes; and (2) the excess, if any, of (a) the present value at such redemption date of (i) the redemption price of such respective Senior Secured Notes that would apply if such respective notes were redeemed on the respective Early Redemption Dates, (such redemption price is expressed as a percentage of the principal amount being set forth in the table appearing in the Redemption Pricing section below), plus (ii) all remaining scheduled payments of interest due on the respective Senior Secured Notes to and including the respective Early Redemption Dates, (excluding accrued but unpaid interest, if any, to, but excluding, the redemption date), with respect to each of subclause (i) and (ii), computed using a discount rate equal to the Treasury Rate in the case of the 2026 Dollar Senior Secured Notes, 2029 Dollar Senior Secured Notes and 2030 Dollar Senior Secured Notes, or Bund Rate in the case of the 2026 Euro Senior Secured Notes and the 2028 Euro Senior Secured Notes (both Treasury Rate and Bund Rate as defined in the respective indentures) as of such redemption date plus 50 basis points; over (b) the principal amount of the respective Senior Secured Notes. Redemption Pricing At any time and from time to time prior to the Early Redemption Dates, the Company may redeem some or all of the respective notes at redemption prices equal to 100% of the respective principal amounts being redeemed plus the Applicable Premium, plus accrued and unpaid interest, if any, to, but excluding, the redemption dates. At any time on or after the Early Redemption Dates, the Company may redeem some or all of the respective notes at the redemption prices (expressed in percentage of principal amount) set forth below, plus accrued and unpaid interest, if any, to, but excluding, the redemption dates, if redeemed during the twelve-month period beginning on respective dates of each of the years indicated below: Price For the period beginning 2026 Dollar Senior Secured Notes 2026 Euro Senior Secured Notes 2027 Euro Senior Secured Notes 2028 Euro Senior Secured Notes 2029 Dollar Senior Secured Notes 2030 Dollar Senior Secured Notes Year April 15, May 15, November 15, September 15 January 15, July 15, 2025 100.000% 100.000% N/A N/A 102.875% 102.375% N/A 2026 N/A N/A 102.250% 100.000% 101.438% 101.188% 103.313% 2027 N/A N/A 100.000% N/A 100.000% 100.000% 101.656% 2028 and thereafter N/A N/A N/A N/A 100.000% 100.000% 100.000% 2018 Coty Credit Agreement On April 5, 2018, the Company entered into an amended and restated credit agreement (the "2018 Coty Credit Agreement"), which, as previously disclosed, was amended most recently in July 2023. As amended and restated through July 2023, 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 the 2023 Coty Revolving Credit Facility (together with the 2018 Coty Term A Facility and the 2018 Coty Term B Facility, the "Coty Credit Facilities"). See the above Recent Developments section for information on the revolver refinancing made in July 2023. The 2018 Coty Credit Agreement, as amended, provides that with respect to the 2023 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, as amended, 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, as amended), 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, as amended 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, as amended 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. As previously disclosed, the Company utilized proceeds from certain transactions to pay down portions of the outstanding balances of the 2018 Coty Term A Facility and 2018 Coty Term B Facility, in accordance to the 2018 Coty Credit Agreement, as amended. No balances remain outstanding under the 2018 Coty Term A Facility or 2018 Coty Term B Facility as of September 30, 2023. See the above Recent Developments section for information on the prepayments made on the 2018 Coty Term B Facility during the twelve months ended June 30, 2024. 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). The Senior Unsecured Notes are guaranteed, jointly and severally, on a senior basis by the Guarantors. 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 Euro Notes will mature on April 15, 2026. The 2026 Euro Notes will bear interest at a rate of 4.75% per annum. Interest on the 2026 Euro Notes is payable semi-annually in arrears on April 15 and October 15 of each year. The Company redeemed the 2023 Euro Notes on April 15, 2022. On December 7, 2022, the Company redeemed $77.0 of the 2026 Dollar Notes and €69.7 million (approximately $72.2) of the 2026 Euro Notes. See the above Recent Developments section for the redemption of the 2026 Dollar Notes. 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. Optional Redemption As of June 30, 2024, the Company may at any time redeem some or all of the 2026 Euro Notes, at the redemption prices (expressed in percentage of principal amount) set forth below, plus accrued and unpaid interest, if any, to, but excluding, the redemption dates, if redeemed during the twelve-month period beginning on April 15 of each of the years indicated below: Price Year 2026 Euro Notes 2025 and thereafter 100.0000% Deferred Financing Costs The Company wrote off unamortized deferred financing fees and discounts of $8.2, $0.8, and $5.1 for the fiscal years ended June 30, 2024, 2023 and 2022, respectively. The write-offs of the unamortized deferred financing fees and unamortized debt discounts are included in Other expense (income), net in the Consolidated Statements of Operations. Additionally, the Company capitalized deferred financing fees of $49.2, nil, and $9.2, during the fiscal years ended June 30, 2024, 2023 and 2022, respectively. Interest The 2018 Coty Credit Agreement facilities will bear interest at rates equal to, at the Company’s option, either: • SOFR 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 2023 Coty Revolving Credit 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: SOFR 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 SOFR plus: Alternative Base Rate Margin: 5.0 Less than BB+/Ba1 2.000% 1.000% 4.0 BB+/Ba1 1.750% 0.750% 3.0 BBB-/Baa3 1.500% 0.500% 2.0 BBB/Baa2 1.250% 0.250% 1.0 BBB+/Baa1 or higher 1.125% 0.125% Fair Value of Debt June 30, 2024 June 30, 2023 Carrying Fair Carrying Fair Senior Secured Notes $ 3,716.7 $ 3,719.7 $ 2,161.0 $ 2,066.9 2018 Coty Credit Agreement — — 1,412.6 1,393.5 Senior Unsecured Notes 192.7 192.8 669.0 661.5 Brazilian Credit Facility — — 31.9 32.2 The fair value of the 2023 Coty Revolving Credit Facility is equal to its carrying value, as the Company has the ability to repay the outstanding principal at par value at any time. The Company uses the market approach to value its debt instruments. The Company obtains fair values from independent pricing services or utilizes the USD SOFR curve 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 as 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 June 30, 2024, are presented below: Fiscal Year Ending June 30, 2025 $ — 2026 1,590.8 2027 534.3 2028 — 2029 1,034.3 Thereafter 750.0 Total $ 3,909.4 Covenants The 2018 Coty Credit Agreement contains affirmative and negative covenants. The negative covenants include, among other things, limitations on debt, liens, dispositions, investments, fundamental changes, restricted payments and affiliate transactions. With certain exceptions as described below, the 2018 Coty Credit Agreement, as amended, includes a financial covenant that requires us to maintain a Total Net Leverage Ratio (as defined below), equal to or less than the ratios shown below for each respective test period. Quarterly Test Period Ending Total Net Leverage Ratio (a) June 30, 2024 through July 11, 2028 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 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, unusual events such as COVID-19, operating expense reductions and future unrealized synergies subject to certain limits and conditions as specified in the 2018 Coty Credit Agreement, as amended. In the four fiscal quarters following the closing of any Material Acquisition (as defined in the 2018 Coty Credit Agreement, as amended), including the fiscal quarter in which such Material Acquisition occurs, the maximum Total Net Leverage Ratio shall be the lesser of (i) 5.95 to 1.00 and (ii) 1.00 higher than the otherwise applicable maximum Total Net Leverage Ratio for such quarter (as set forth in the table above). Immediately after any such four fiscal quarter period, there shall be at least two consecutive fiscal quarters during which the Company’s Total Net Leverage Ratio is no greater than the maximum Total Net Leverage Ratio that would otherwise have been required in the absence of such Material Acquisition, regardless of whether any additional Material Acquisitions are consummated during such period. As of June 30, 2024, the Company was in compliance with all covenants contained within the 2018 Coty Credit Agreement, as amended. |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 4 and 25 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. The following table provides additional information about the Company’s operating leases for the fiscal years ended June 30, 2024, 2023 and 2022. Lease Cost: Year Ended Year Ended Year Ended Operating lease cost $ 74.5 $ 76.2 $ 90.4 Short-term lease cost 3.4 0.9 1.2 Variable lease cost 41.7 40.3 39.3 Sublease income (16.7) (15.8) (20.0) Net lease cost $ 102.9 $ 101.6 $ 110.9 Other information: Operating cash outflows from operating leases (72.0) (73.8) $ (83.8) Right-of-use assets obtained in exchange for lease obligations 32.6 25.7 $ 104.9 Weighted-average remaining lease term - real estate 6.8 years 7.2 years 7.6 years Weighted-average discount rate - real estate leases 4.52 % 4.13 % 3.85 % Future minimum lease payments for the Company’s operating leases as of June 30, 2024 are as follows: Fiscal Year Ending June 30, 2025 $ 68.1 2026 56.0 2027 49.2 2028 37.2 2029 33.2 Thereafter 81.3 Total future lease payments 325.0 Less: imputed interest (48.5) Total present value of lease liabilities $ 276.5 Current operating lease liabilities 57.8 Long-term operating lease liabilities 218.7 Total operating lease liabilities $ 276.5 Table excludes obligations for leases with original terms of twelve months or less which have not been recognized as ROU assets or liabilities in the Consolidated Balance Sheets. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income from continuing operations before income taxes in fiscal 2024, 2023 and 2022 is presented below: Year Ended June 30, 2024 2023 2022 United States $ (591.1) $ (253.6) $ (277.5) Foreign 795.6 958.4 704.3 Total $ 204.5 $ 704.8 $ 426.8 The components of the Company’s total provision (benefit) for income taxes from continuing operations during fiscal 2024, 2023 and 2022 are presented below: Year Ended June 30, 2024 2023 2022 Provision for income taxes on continuing operations: Current: Federal $ 1.2 $ 2.6 $ 6.6 State and local (3.5) 2.6 (6.0) Foreign 107.2 120.1 152.1 Total 104.9 125.3 152.7 Deferred: Federal (36.7) (61.1) (2.7) State and local (16.7) 1.0 (12.8) Foreign 43.6 116.4 27.6 Total (9.8) 56.3 12.1 Provision for income taxes on continuing operations $ 95.1 $ 181.6 $ 164.8 The reconciliation of the U.S. Federal statutory tax rate to the Company’s effective income tax rate during fiscal 2024, 2023 and 2022 is presented below: Year Ended June 30, 2024 2023 2022 Income (loss) from continuing operations before income taxes $ 204.5 $ 704.8 $ 426.8 Provision for income taxes at statutory rate $ 42.9 $ 148.0 $ 89.6 State and local taxes—net of federal benefit (15.9) 2.8 (14.9) Foreign tax differentials 20.9 (10.1) (16.4) Change in valuation allowances 38.9 10.2 (2.3) Change in unrecognized tax benefit (15.5) 32.5 (10.6) Permanent differences—net 7.6 (4.9) 25.4 Non-deductible executive stock compensation 19.7 27.7 37.1 Currency Loss (22.5) (13.6) (0.2) Dispositions of business assets — — 12.7 Russia exit — (7.0) 24.1 Principal relocation revaluation 27.6 — — Nondeductible Interest Expense 12.1 — — Swiss Tax Credits-net of valuation allowance (37.8) — — Tax Rate Change Deferred Tax Liability Revaluation 24.2 — — Other (7.1) (4.0) 20.3 Provision for income taxes on continuing operations $ 95.1 $ 181.6 $ 164.8 Effective income tax rate 46.5 % 25.8 % 38.6 % The 20.7% increase in the effective tax rate in fiscal 2024 from fiscal 2023 was primarily driven by the following items: • a 17.6% increase from an increase in valuation allowances recorded on interest expense carryforwards; • a 13.5% increase due to changes to the net deferred taxes recognized on the assignment of strategic service functions from Amsterdam to Geneva, as an indirect result of the required revaluation of the original transfer of the main principal location from Geneva to Amsterdam in fiscal 2021; • a 11.8% from the revaluation of the Company’s deferred tax liabilities due to a tax rate increase enacted in Switzerland; and • a 11.7% increase in the foreign tax rate differential impact primarily due to lower fair value gains related to the investment in the Wella business taxed at a lower rate as compared to our U.S. Federal statutory rate of 21%. These increases were partially offset by the following decreases: • a 18.5% decrease as a result of the issuance of non-refundable income tax credits received from the Swiss Tax Authorities of $97.1. The Company recorded a benefit for the tax credit of $37.8, net of a valuation allowance; and • a 12.2% decrease from a reduction of foreign tax audits due to the settlement of foreign tax audits. The 12.8% decrease in the effective tax rate in fiscal 2023 from fiscal 2022 was primarily driven by the following items: • a 6.6% decrease in tax costs associated with the Company’s exit from Russia in the prior year; • a 6.6% decrease from a reduction in permanent differences related to non-deductible expenses and non-deductible foreign exchange losses; • a 4.8% decrease as a result of the reduction in the amount of non-deductible executive stock compensation; • a 3.0% decrease from a gain on the disposition of business assets (real estate) in the prior period; • a 1.9% decrease from a foreign exchange loss recognized on the repatriation of funds in the current year that were previously taxed. These decreases were partially offset by the following increases: • a 7.1% increase in unrecognized tax benefits due to the impact of increasing U.S. taxation of foreign sourced income; and • a 2.4% increase in foreign tax rate differential impact primarily due to lower fair value gains related to the investment in the Wella business taxed at a lower rate as compared to our U.S. Federal statutory rate of 21%. The Company has significant income in jurisdictions such as Germany, Netherlands, France, and Spain which have statutory tax rates higher than the U.S. Federal statutory rate of 21%. The impact of the foreign earnings in higher taxed jurisdictions coupled with U.S. losses at the statutory tax rate of 21% increases the Company’s effective tax rate. This jurisdictional mix is expected to have a continuing impact on the effective tax rate. Significant components of deferred income tax assets and liabilities as of June 30, 2024 and 2023 are presented below: June 30, June 30, Deferred income tax assets: Inventories $ 7.0 $ 7.5 Accruals and allowances 62.1 54.9 Sales returns 15.2 19.1 Share-based compensation 5.3 4.8 Employee benefits 55.7 55.6 Net operating loss carry forwards and tax credits 308.6 241.4 Capital loss carry forwards 0.2 0.3 Interest expense limitation carry forward 102.8 47.5 Lease liability 26.0 28.6 Principal relocation lease 337.7 424.0 Property, plant and equipment 21.1 13.0 Other 58.5 48.4 Less: valuation allowances (151.4) (60.7) Net deferred income tax assets 848.8 884.4 Deferred income tax liabilities: Intangible assets 772.4 817.4 Licensing rights 30.2 27.8 Right of use asset 26.3 28.6 Investment in partnerships 61.1 55.2 Other 17.9 25.3 Deferred income tax liabilities 907.9 954.3 Net deferred income tax (liability) asset $ (59.1) $ (69.9) The expirations of tax loss carry forwards, amounting to $482.7 as of June 30, 2024, in each of the fiscal years ending June 30, are presented below: Fiscal Year Ending June 30, United States Western Europe Rest of World Total 2025 $ — $ 0.1 $ 3.4 $ 3.5 2026 — — 8.1 8.1 2027 — 12.9 20.2 33.1 2028 — 115.9 16.6 132.5 2029 and thereafter — 57.1 248.4 305.5 Total $ — $ 186.0 $ 296.7 $ 482.7 The total valuation allowances recorded are $151.4 and $60.7 as of June 30, 2024 and 2023, respectively. In fiscal 2024, the change in the valuation allowance was primarily due to The Company recording a valuation allowance on its U.S. interest expense limitation carryforwards and a valuation allowance on a portion of the Swiss tax credits granted in the current period. A reconciliation of the beginning and ending amount of UTBs is presented below: Year Ended June 30, 2024 2023 2022 UTBs—July 1 $ 235.5 $ 251.6 $ 279.9 Additions based on tax positions related to the current year 1.3 6.7 1.7 Additions for tax positions of prior years 15.8 0.7 20.8 Reductions for tax positions of prior years (19.0) (1.4) (29.4) Settlements (1.2) (4.6) (0.2) Lapses in statutes of limitations (17.8) (13.8) (14.1) Foreign currency translation 0.7 (3.7) (7.1) UTBs—June 30 $ 215.3 $ 235.5 $ 251.6 As of June 30, 2024, the Company had $215.3 of UTBs of which $169.9 represents the amount that, if recognized, would impact the effective income tax rate in future periods. As of June 30, 2024 and 2023, the liability associated with UTBs, including accrued interest and penalties, is $200.2 and $218.6, respectively, which is recorded in Income and other taxes payable and Other non-current liabilities in the Consolidated Balance Sheets. The Company accrued interest of $(2.4), $7.8 and $4.2, respectively, in fiscal 2024, 2023 and 2022. The Company accrued immaterial penalties in fiscal 2024 and no penalties in fiscal 2023, and released penalties of nil in fiscal 2022. The total gross accrued interest and penalties recorded in the Other noncurrent liabilities in the Consolidated Balance Sheets related to UTBs as of June 30, 2024 and 2023 is $30.2 and $33.1, respectively. The Company is present in approximately 40 tax jurisdictions, and at any point in time is subject to several audits at various stages of completion. As a result, the Company evaluates tax positions and establishes liabilities for UTBs that may be challenged by local authorities and may not be fully sustained, despite a belief that the underlying tax positions are fully supportable. UTBs are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, developments in case law, and closing of statute of limitations. Such adjustments are reflected in the provision for income taxes as appropriate. In fiscal 2024 and 2023, the Company recognized a tax benefit of $19.0 and $18.4 respectively associated with the settlement of tax audits in multiple jurisdictions and the expiration of foreign and state statutes of limitation. The Company has open tax years ranging from 2009 and forward. On the basis of information available at June 30, 2024, it is reasonably possible that a decrease of up to $32.9 in UTBs related to U.S. and foreign exposures may be necessary within the coming year. It is also possible the ongoing audits by tax authorities may result in increases or decreases to the balance of UTBs. Since it is common practice to extend audits beyond the Statute of Limitations, the Company is unable to predict the timing or conclusion of these audits and, accordingly, the Company is unable to estimate the amount of changes to the balance of UTBs that are reasonably possible at this time. However, the Company believes it has adequately provided for its UTBs for all open tax years in each tax jurisdiction. |
INTEREST EXPENSE, NET
INTEREST EXPENSE, NET | 12 Months Ended |
Jun. 30, 2024 | |
Interest Income (Expense), Operating [Abstract] | |
INTEREST EXPENSE, NET | INTEREST EXPENSE, NET Interest expense, net for the years ended June 30, 2024, 2023 and 2022 is presented below: Year Ended June 30, 2024 2023 2022 Interest expense $ 251.6 $ 261.1 $ 241.2 Foreign exchange losses (gains), net of derivative contracts 16.5 12.2 (10.0) Interest income (16.1) (15.4) (7.2) Total interest expense, net $ 252.0 $ 257.9 $ 224.0 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Savings and Retirement Plans - The Company’s Savings and Retirement Plans include a U.S. defined contribution plan for employees primarily in the U.S. and international savings plans for employees in certain other countries. In the U.S., hourly and salary based employees are eligible to participate in the plan after 90 days of service and the Company matches 100% of employee contributions up to 6.0% of employee compensation. In addition, the Company makes contributions to the plan on behalf of employees determined by their age and compensation. During fiscal 2024, 2023 and 2022, the defined contribution expense for Coty Inc. for the U.S. defined contribution plan was $15.6, $13.7 and $13.6, respectively, and the defined contribution expense for the international savings plans was $10.9, $9.6 and $9.7, respectively. Pension Plans - The Company sponsors contributory and noncontributory defined benefit pension plans covering certain U.S. and international employees primarily in France, Germany and Switzerland. Participants in the U.S. defined benefit pension plan no longer accrue benefits. The Company measures defined benefit plan assets and obligations as of the date of the Company’s fiscal year-end. The Company’s defined benefit pension plans are funded primarily through contributions from the Company after consideration of recommendations from the pension plans’ independent actuaries and are funded at levels sufficient to comply with local requirements. Settlements and Curtailments for Pension Plans The Company recognized curtailment gains of $0.1, $0.7 and $1.3 during the years ended June 30, 2024, 2023 and 2022, respectively. Additionally, the Company recognized settlement losses of nil, $0.2, and $1.8 of which nil, nil, and $1.4 were related to restructuring actions during the years ended June 30, 2024, 2023 and 2022, respectively. The impact of settlement and curtailment activity on the current and prior comparative periods is included in Other expense (income), net in the Consolidated Statements of Operations. Plan Amendments for Pension Plans - There were no significant Plan amendments as of June 30, 2024. Other Post-Employment Benefit Plans (“OPEB”) - The Company provides certain post-employment health and life insurance benefits for certain employees and spouses principally in the U.S. and France if certain age and service requirements are met. Estimated benefits to be paid by the Company are expensed over the service period of each employee based on calculations performed by an independent actuary. In addition, the Company has a supplemental retirement plan and a termination benefit plan for selected salaried employees. The aggregate reconciliation of the projected benefit obligations, plan assets, funded status and amounts recognized in the Company’s Consolidated Financial Statements related to the Company’s pension plans and other post-employment benefit plans is presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2024 2023 2024 2023 2024 2023 2024 2023 Change in benefit obligation Benefit obligation—July 1 $ 13.0 $ 14.5 $ 355.6 $ 343.7 $ 36.0 $ 38.8 $ 404.6 $ 397.0 Service cost — — 5.1 4.8 0.5 0.6 5.6 5.4 Interest cost 0.7 0.7 12.8 10.9 1.5 1.7 15.0 13.3 Plan participants’ contributions — — 1.5 1.1 0.1 0.2 1.6 1.3 Benefits paid (1.3) (1.4) (15.5) (14.5) (1.8) (1.9) (18.6) (17.8) New employees transfers (out)/in — — (0.8) 1.0 — — (0.8) 1.0 Premiums paid — — (0.6) (0.5) — — (0.6) (0.5) Pension curtailment — — (0.1) (0.7) — — (0.1) (0.7) Other (a) — — — 16.2 — — — 16.2 Pension settlement — — (0.1) (4.2) — — (0.1) (4.2) Actuarial loss (gain) 0.1 (0.8) 8.5 (16.6) (4.5) (3.3) 4.1 (20.7) Effect of exchange rates — — (5.4) 14.4 (0.1) (0.1) (5.5) 14.3 Benefit obligation—June 30 $ 12.5 $ 13.0 $ 361.0 $ 355.6 $ 31.7 $ 36.0 $ 405.2 $ 404.6 Change in plan assets Fair value of plan assets—July 1 $ — $ — $ 120.9 $ 101.5 $ 0.1 $ — $ 121.0 $ 101.5 Actual return on plan assets — — 8.6 1.5 — — 8.6 1.5 Employer contributions 1.3 1.4 15.2 13.7 1.7 1.8 18.2 16.9 Plan participants’ contributions — — 1.5 1.1 0.2 0.2 1.7 1.3 Benefits paid (1.3) (1.4) (15.5) (14.5) (1.8) (1.9) (18.6) (17.8) New employees transfers (out)/in — — (0.8) 1.0 — — (0.8) 1.0 Premiums paid — — (0.6) (0.5) — — (0.6) (0.5) Plan settlements — — (0.1) (4.2) — — (0.1) (4.2) Other (a) — — — 16.2 — — — 16.2 Effect of exchange rates — — (1.2) 5.1 — — (1.2) 5.1 Fair value of plan assets—June 30 — — 128.0 120.9 0.2 0.1 128.2 121.0 Funded status—June 30 $ (12.5) $ (13.0) $ (233.0) $ (234.7) $ (31.5) $ (35.9) $ (277.0) $ (283.6) (a) In connection with the P&G Beauty business acquisition in 2016, the Company assumed certain international pension and OPEB obligations and assets (the “P&G plans”). At that time, the P&G plans had an active legal dispute that has been resolved during fiscal 2023, resulting in $16.2 of additional assets being paid to the Coty plans. The projected benefit obligation has also increased $16.2 to reflect the liability to distribute these funds to the employees who were originally in the P&G plans. We expect that most of these assets will be paid out over the next few fiscal years. With respect to the Company’s pension plans and other post-employment benefit plans, amounts recognized in the Company’s Consolidated Balance Sheets as of June 30, 2024 and 2023, are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2024 2023 2024 2023 2024 2023 2024 2023 Noncurrent assets $ — $ — $ 1.8 $ 1.4 $ — $ — $ 1.8 $ 1.4 Current liabilities (1.3) (1.3) (0.2) (0.5) (2.1) (2.5) (3.6) (4.3) Noncurrent liabilities (11.2) (11.7) (234.6) (235.6) (29.4) (33.4) (275.2) (280.7) Funded status (12.5) (13.0) (233.0) (234.7) (31.5) (35.9) (277.0) (283.6) AOC(L)/I 0.5 1.4 47.8 56.1 19.1 18.5 67.4 76.0 Net amount recognized $ (12.0) $ (11.6) $ (185.2) $ (178.6) $ (12.4) $ (17.4) $ (209.6) $ (207.6) The projected benefit obligation actuarial loss of $8.6 for the fiscal year ended June 30, 2024 was primarily driven by a decrease in discount rates since the fiscal year ended June 30, 2023. The actuarial loss was partially offset by the asset gain of $3.7 as a result of higher than expected asset performance in Germany, Switzerland and Belgium. The projected benefit obligation actuarial gain of $17.4 for the fiscal year ended June 30, 2023 was primarily driven by increases in discount rates offset by an increase in inflation since the fiscal year ended June 30, 2022. The actuarial gain in the projected benefit obligation was partially offset by an asset loss of $1.9 as a result of worse than expected asset performance. During fiscal 2024, the retiree medical and life insurance plan experienced a gain on the liability of $4.5 primarily driven by an increase in the discount rate, retirees and spouses waiving medical coverage, and changes in pre-65 medical claim costs. The gain was slightly offset by increases in the medical trend assumption. During fiscal 2023 the retiree medical and life insurance plan experienced a gain on the liability of $3.3 primarily driven by the increase in the discount rate. Retirees waiving medical coverage and changes in the pre-65 medical claim costs also contributed to the gain, which was slightly offset by increases in the medical trend assumption. The accumulated benefit obligation for the U.S. defined benefit pension plans was $12.5 and $13.0 as of June 30, 2024 and 2023, respectively. The accumulated benefit obligation for international defined benefit pension plans was $351.9 and $346.3 as of June 30, 2024 and 2023, respectively. Pension plans with accumulated benefit obligations in excess of plan assets and projected benefit obligations in excess of plan assets are presented below: Pension plans with accumulated benefit obligations in excess of plan assets Pension plans with projected benefit obligations in excess of plan assets U.S. International U.S. International 2024 2023 2024 2023 2024 2023 2024 2023 Projected benefit obligation $ 12.5 $ 13.0 $ 346.8 $ 342.0 $ 12.5 $ 13.0 $ 346.8 $ 342.0 Accumulated benefit obligation 12.5 13.0 338.7 333.7 12.5 13.0 338.7 333.7 Fair value of plan assets — — 112.2 106.2 — — 112.2 106.2 Net Periodic Benefit Cost The components of net periodic benefit cost for pension plans and other post-employment benefit plans recognized in the Consolidated Statements of Operations are presented below: Year Ended June 30, Pension Plans Other Post- U.S. International Total 2024 2023 2022 2024 2023 2022 2024 2023 2022 2024 2023 2022 Service cost $ — $ — $ — $ 5.1 $ 4.8 $ 9.1 $ 0.5 $ 0.6 $ 0.8 $ 5.6 $ 5.4 $ 9.9 Interest cost 0.7 0.7 0.5 12.8 10.9 5.9 1.5 1.7 0.8 15.0 13.3 7.2 Expected return on plan assets — — — (4.8) (3.4) (4.5) — — — (4.8) (3.4) (4.5) Amortization of prior service (credit) cost — — — (0.1) (0.1) (0.1) (0.2) (0.2) (0.3) (0.3) (0.3) (0.4) Amortization of net (gain) loss (0.9) (2.9) 0.4 (2.4) (0.7) (0.2) (3.5) (2.4) (0.2) (6.8) (6.0) — Settlements (gain) loss recognized — — — — 0.2 1.8 — — — — 0.2 1.8 Curtailment (gain) loss recognized — — — (0.1) (0.7) (1.3) — — — (0.1) (0.7) (1.3) Net periodic benefit cost $ (0.2) $ (2.2) $ 0.9 $ 10.5 $ 11.0 $ 10.7 $ (1.7) $ (0.3) $ 1.1 $ 8.6 $ 8.5 $ 12.7 Pre-tax amounts recognized in AOC(L)/I, which have not yet been recognized as a component of net periodic benefit cost are presented below: Pension Plans Other Post-Employment Benefits U.S. International Total 2024 2023 2024 2023 2024 2023 2024 2023 Net actuarial (loss) gain $ 0.5 $ 1.4 $ 47.2 $ 55.3 $ 19.1 $ 18.2 $ 66.8 $ 74.9 Prior service credit (cost) — — 0.6 0.8 — 0.3 0.6 1.1 Total recognized in AOC(L)/I $ 0.5 $ 1.4 $ 47.8 $ 56.1 $ 19.1 $ 18.5 $ 67.4 $ 76.0 Changes in plan assets and benefit obligations recognized in OCI/(L) during the fiscal year are presented below: Pension Plans Other Post-Employment Benefits U.S. International Total 2024 2023 2024 2023 2024 2023 2024 2023 Net actuarial (loss) gain $ (0.1) $ 0.8 $ (4.8) $ 14.7 $ 4.5 $ 3.3 $ (0.4) $ 18.8 Amortization or curtailment recognition of prior service (credit) cost — — (0.1) (0.1) (0.2) (0.2) (0.3) (0.3) Recognized net actuarial (gain) loss (0.9) (2.9) (2.4) (0.5) (3.5) (2.4) (6.8) (5.8) Effect of exchange rates — — (0.9) 2.1 (0.1) 0.2 (1.0) 2.3 Total recognized in OCI/(L) $ (1.0) $ (2.1) $ (8.2) $ 16.2 $ 0.7 $ 0.9 $ (8.5) $ 15.0 Pension and Other Post-Employment Benefit Assumptions The weighted-average assumptions used to determine the Company’s projected benefit obligation above are presented below: Pension Plans Other Post-Employment Benefits U.S. International 2024 2023 2024 2023 2024 2023 Discount rates 5.3%-5.4% 4.9%-5.3% 1.5%-3.9% 2.0%-4.2% 3.8%-5.4% 4.1%-5.1% Future compensation growth rates N/A N/A 1.0%-3.2% 1.3%-3.2% N/A N/A The weighted-average assumptions used to determine the Company’s net periodic benefit cost in fiscal 2024, 2023 and 2022 are presented below: Pension Plans Other Post- U.S. International 2024 2023 2022 2024 2023 2022 2024 2023 2022 Discount rates 4.9%-5.3% 4.0%-4.7% 2.4%-2.6% 2.0%-4.2% 2.3%-3.4% 0.3%-1.6% 4.1%-5.1% 2.9%-4.7% 1.5%-2.8% Future compensation growth rates N/A N/A N/A 1.3%-3.2% 1.1%-3.2% 1.0%-2.5% N/A N/A N/A Expected long-term rates of return on plan assets N/A N/A N/A 3.5%-4.5% 2.7%-3.8% 1.3%-3.8% N/A N/A N/A The health care cost trend rate assumptions have a significant effect on the amounts reported. Year Ended June 30, 2024 2023 2022 Health care cost trend rate assumed for next year 8.3% 7.1% 6.7% Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.5% 4.5% 4.5% Year that the rate reaches the ultimate trend rate 2032 2030 2029 Pension Plan Investment Policy The Company’s investment policies and strategies for plan assets are to achieve the greatest return consistent with the fiduciary character of the plan and to maintain a level of liquidity that is sufficient to meet the need for timely payment of benefits. The goals of the investment managers include minimizing risk and achieving growth in principal value so that the purchasing power of such value is maintained with respect to the rate of inflation. The pension plan’s return on assets is based on management’s expectations of long-term average rates of return to be achieved by the underlying investment portfolios. In establishing this assumption, management considers historical and expected returns for the assets in which the plan is invested, as well as current economic and market conditions. The asset allocation decision includes consideration of future retirements, lump-sum elections, growth in the number of participants, the Company’s contributions and cash flow. These actual characteristics of the plan place certain demands upon the level, risk and required growth of trust assets. Actual asset allocation is regularly reviewed and periodically rebalanced to the strategic allocation when considered appropriate. The target asset allocations for the Company’s pension plans as of June 30, 2024 and 2023, by asset category are presented below: % of Plan Assets at Year Ended Target 2024 2023 Equity securities 40% 35% 32% Fixed income securities 50% 38% 37% Cash and other investments 11% 27% 31% Fair Value of Plan Assets The international pension plan assets that the Company measures at fair value on a recurring basis, based on the fair value hierarchy as described in Note 2—Summary of Significant Accounting Policies, as of June 30, 2024 and 2023 are presented below: Level 1 Level 2 Level 3 Total 2024 2023 2024 2023 2024 2023 2024 2023 Equity securities $ 32.8 $ 32.1 $ — $ — $ — $ — $ 32.8 $ 32.1 Fixed income securities: Corporate securities 38.2 37.3 — — — — 38.2 37.3 Other: Cash and cash equivalents 0.3 0.2 — — — — 0.3 0.2 Insurance contracts and other — — — — 56.9 51.4 56.9 51.4 Total pension plan assets $ 71.3 $ 69.6 $ — $ — $ 56.9 $ 51.4 $ 128.2 $ 121.0 The following is a description of the valuation methodologies used for plan assets measured at fair value: Equity securities -The fair values reflect the closing price reported on a major market where the individual securities are traded. These investments are classified within Level 1 of the valuation hierarchy. Corporate securities -The fair values are based on a compilation of primarily observable market information or a broker quote in a non-active market. These investments are classified within Level 1 of the valuation hierarchy. Cash and cash equivalents -The carrying amount approximates fair value, primarily because of the short maturity of cash equivalent instruments. These investments are classified within Level 1 of the valuation hierarchy. Insurance contracts and other - Includes contracts issued by insurance companies and other investments that are not publicly traded. These investments are generally classified as Level 3 as there are neither quoted prices nor other observable inputs for pricing. Insurance contracts are valued at cash surrender value, which approximates the contract fair value. Other Level 3 plan assets include real estate and other alternative investment funds requiring inputs that cannot be readily derived from observable market data due to the infrequency with which the underlying assets trade. The Company sponsors a qualified defined benefit pension plan for all eligible Swiss employees. Retirement benefits are provided based on employees’ years of service and earnings, or in accordance with applicable employee regulations. Consistent with typical Swiss practice, the pension plan is funded through a guaranteed insurance contract with an insurance company (“IC”). The IC is responsible for the investment strategy of the insurance premiums that the Company submits and does not hold individual assets per participating employer. Assets are invested in accordance with the IC’s own strategies and risk assessments. Under the terms of the contract, the interest rate as well as the capital value is guaranteed for each participant, with the IC assuming any risk to the value of the underlying assets. The IC is a member of a security fund, whose purpose is to cover any shortfall in the event they are not able to fulfill its contractual agreements. The plan assets of the Swiss plan are included in the Level 3 valuation. The Company also sponsors qualified defined benefit pension plans for certain eligible German employees. The Company’s German pension plans are partially funded with plan assets held in a Contractual Trust Arrangement, under which Company assets have been irrevocably transferred to a registered association for the exclusive purpose of securing and funding pension obligations in Germany. The association invests primarily in publicly tradable equity and fixed income securities, using a funding strategy that is reviewed on a regular basis. Plan assets are also held in the Company’s other non-U.S. defined benefit pension plans. The other non-U.S. defined benefit pension plans provide benefits primarily based on earnings and years of service and are funded in compliance with local laws and practices. The plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification and investment return over the long term at an acceptable level of risk. The reconciliations of Level 3 plan assets measured at fair value in fiscal 2024 and 2023 are presented below: June 30, June 30, Insurance contracts: Fair value—July 1 $ 51.4 $ 33.6 Return on plan assets 3.3 (0.3) Purchases, sales and settlements, net 2.4 15.5 Effect of exchange rates (0.2) 2.6 Fair value—June 30 $ 56.9 $ 51.4 Contributions The Company plans to contribute approximately $1.3 to its remaining U.S. pension plan and expects to contribute approximately $15.9 and $2.1 to its international pension and other post-employment benefit plans, respectively, during fiscal 2025. Estimated Future Benefit Payments Expected benefit payments, which reflect expected future service, as appropriate, are presented below: Pension Plans Other Post-Employment Benefits Total Fiscal Year Ending June 30, U.S. International 2025 $ 1.3 $ 22.2 $ 2.1 $ 25.6 2026 1.3 18.8 2.3 22.4 2027 1.2 19.8 2.5 23.5 2028 1.2 19.7 2.6 23.5 2029 1.2 21.6 2.8 25.6 2030 - 2032 5.1 105.0 14.6 124.7 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Foreign Exchange Risk The Company is exposed to foreign currency exchange fluctuations through its global operations. The Company reduces its exposure to fluctuations in foreign exchange rates by creating offsetting positions through the use of derivative instruments, including forward foreign exchange contracts and 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. 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. In September 2020, the Company terminated these net investment cross currency swap derivatives in exchange for cash payment of $37.6. The related loss from this termination is included in AOCI/(L) until the sale or substantial liquidation of the underlying investments. As of June 30, 2024 and 2023, the notional amounts of the outstanding forward foreign exchange contracts designated as cash flow hedges were $22.3 and $28.0, respectively. The Company also uses certain derivatives not designated as hedging instruments consisting primarily of foreign currency forward contracts and cross currency swaps to hedge intercompany transactions and foreign currency denominated external debt. Although these derivatives were not designated for hedge accounting, the overall objective of mitigating foreign currency exposure is the same for all derivative instruments. For derivatives not designated as hedging instruments, changes in fair value are recorded in the line item in the Consolidated Statements of Operations to which the derivative relates. As of June 30, 2024 and 2023, the notional amounts of these outstanding non-designated foreign currency forward and cross currency forward contracts were $1,797.6 and $1,653.5, respectively. Interest Rate Risk The Company is exposed to interest rate fluctuations related to its variable rate debt instruments. The Company reduces its exposure to fluctuations in the cash flows associated with changes in the variable interest rates by entering into offsetting positions through the use of derivative instruments, such as interest rate swap contracts. The interest rate swap contracts result in recognizing a fixed interest rate for the portion of the Company’s variable rate debt that was hedged. This will reduce the negative impact of increases in the variable rates over the term of the contracts. Hedge effectiveness of interest rate swap contracts is based on a long-haul hypothetical derivative methodology and includes all changes in value. In fiscal 2022, the Company terminated certain existing interest rate swaps with notional amounts of $200.0 in exchange for cash payment of $1.9. The related loss from this termination is included in Interest expense, net, within the Consolidated Statement of Operations. As of June 30, 2023, the Company had interest rate swap contracts designated as effective hedges in the notional amount of $200.0, which were fully terminated in December 2023 for a cash receipt of $2.1. The Company had no outstanding interest rate swap contracts as of June 30, 2024. As the forecasted interest expense under the original swap agreements is still probable, the related gain in accumulated other comprehensive income (loss) ("AOCI/L") will be amortized over the remaining life of the swaps. These interest rate swaps had been designated and qualified as cash flow hedges and were highly effective prior to termination. Net Investment Hedge Foreign currency gains and losses on borrowings designated as a net investment hedge, except ineffective portions, are reported in the cumulative translation adjustment (“CTA”) component of AOCI/(L), along with the foreign currency translation adjustments on those investments. As of June 30, 2024 and 2023, the nominal exposures of foreign currency denominated borrowings designated as net investment hedges were €1,611.6 million and €701.3 million, respectively. The designated hedge amounts were considered highly effective. Forward Repurchase Contracts In June 2022, December 2022, and November 2023, the Company entered into certain forward repurchase contracts to start hedging for potential $200.0, $196.0, and $294.0 share buyback programs, in 2024, 2025, and 2026, respectively. These forward repurchase contracts are accounted for at fair value, with changes in the fair value recorded in Other expense (income), net in the Consolidated Statements of Operations. In February 2024, the Company elected to physically settle the June 2022 Forward for a cash payment of $200.0 in exchange for 27.0 million shares of its Class A Common Stock. Refer to Note 21—Equity and Convertible Preferred Stock. Derivative and non-derivative financial instruments which are designated as hedging instruments: The accumulated gain (loss) on foreign currency borrowings classified as net investment hedges in the foreign currency translation adjustment component of AOCI/(L) was $14.6 and $(12.2) as of June 30, 2024 and 2023, respectively. The accumulated loss on cross currency swaps designated as net investment hedges in the foreign currency translation adjustment component of AOCI/(L) was $(37.6) as of June 30, 2024 and 2023. The amount of gains and losses recognized in OCI in the Consolidated Balance Sheets related to the Company’s derivative and non-derivative financial instruments which are designated as hedging instruments is presented below: Gain (Loss) Recognized in OCI Fiscal Year Ended June 30, 2024 2023 2022 Foreign exchange forward contracts $ 2.0 $ (3.7) $ (1.0) Interest rate swap contracts (0.1) 5.4 13.9 Net investment hedges 26.8 (53.9) 36.3 The accumulated gain on derivative instruments classified as cash flow hedges in AOCI/(L), net of tax, was $2.1 and $0.7 as of June 30, 2024 and 2023, respectively. The estimated net gain related to these effective hedges that is expected to be reclassified from AOCI/(L) into earnings, net of tax, within the next twelve months is $2.0. As of June 30, 2024, 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 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 Fiscal Year Ended June 30, 2024 2023 2022 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 reclassified from AOCI into income $ (2.6) $ — $ (1.6) $ — $ 1.7 $ — Interest rate swap contracts: Amount of loss reclassified from AOCI into income — 2.0 — 8.3 — (13.0) Derivatives not designated as hedging instruments: The amount of gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments is presented below: Consolidated Statements of Operations Fiscal Year Ended June 30, 2024 2023 2022 Foreign exchange contracts Selling, general and administrative expenses $ 0.1 $ (5.1) $ (0.1) Foreign exchange contracts Interest income (expense), net (30.1) (69.3) 2.7 Foreign exchange and forward repurchase contracts Other income (expense), net (124.2) 168.7 18.4 |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS As of June 30, 2024, the redeemable noncontrolling interests (“RNCI”) consist of interests in a consolidated subsidiary in the Middle East (“Middle East Subsidiary”). The noncontrolling interest holder in the Company’s Middle East Subsidiary had a 25% ownership share. The Company has the ability to purchase the remaining noncontrolling interest of 25% on December 31, 2028, with such transaction to close on December 31, 2029 (the “Call right”). In addition to the Call right feature, the noncontrolling interest holder has the right to sell the noncontrolling interest to the Company on December 31, 2028, with such transaction to close on December 31, 2029 (a “Put right”). The amount at which the Put right and Call right can be exercised is based on a formula prescribed by the amended shareholders’ agreement as summarized in the table below, multiplied by the noncontrolling interest holder’s percentage interest in the Middle East Subsidiary. Given the provision of the Put right, the entire noncontrolling interest is redeemable outside of the Company’s control and is recorded in the Consolidated Balance Sheets at the estimated redemption value. The Company adjusts the redeemable noncontrolling interest to the redemption values at the end of each reporting period with changes recognized as adjustments to APIC. The Company recognized $93.6 and $93.5 as the redeemable noncontrolling interest balances as of June 30, 2024 and 2023, respectively. Middle East Subsidiary Percentage of redeemable noncontrolling interest 25% Earliest exercise date(s) December 2028 Formula of redemption value (a) 3-year average of EBIT * 6 (a) EBIT is defined in the amended shareholders’ agreement as the consolidated net earnings before interest and income tax. |
EQUITY AND CONVERTIBLE PREFERRE
EQUITY AND CONVERTIBLE PREFERRED STOCK | 12 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
EQUITY AND CONVERTIBLE PREFERRED STOCK | EQUITY AND CONVERTIBLE PREFERRED STOCK Common Stock As of June 30, 2024, 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 June 30, 2024, total authorized shares of Class A Common Stock was 1,250.0 million and total outstanding shares of Class A Common Stock was 867.8 million. In the fiscal years ended June 30, 2024, 2023, and 2022, the Company issued 9.8, 13.8, and 3.3 million shares of its Class A Common Stock, respectively, and received $13.5, $0.9, and nil in cash, in connection with the exercise of employee stock options and settlement of RSUs. On September 29, 2023 and October 2, 2023, the Company issued a total of 33.0 million shares of Class A common stock, par value $0.01 per share, at a public offering price of $10.80 (or €10.28) per share in a global offering (the “Offering”). The Company also announced the admission to listing and trading of its Common Stock on the professional segment of the Euronext Paris. The Company received $348.4 from the Offering, net of $10.0 of underwriting fees. Additionally, the Company incurred $6.0 in other professional fees. The underwriting fees and other professional fees incurred in connection with the Offering were incremental costs directly attributable to the issuance and thus were presented as a reduction of Equity in the Consolidated Balance Sheets. During the fiscal year ended June 30, 2022, the Company issued 69.9 million shares of its Class A Common Stock as a result of conversions of Series B Preferred Stock. The Company’s Majority Stockholder During the fiscal years ended June 30, 2024, 2023 and 2022, JAB Beauty B.V. (“JAB”), the Company’s largest stock holder, acquired 3.0, 0.0 and 0.0 million shares, respectively, of Class A Common Stock in the open market. As of June 30, 2024 JAB may be deemed to beneficially own approximately 55% of Coty’s Class A Common Stock. This is inclusive of all voting interests of Mr. Peter Harf, the Company's Chairman, and HFS Holdings S.à r.l, (“HFS”), which is beneficially owned by Mr. Harf, including its shares of Series B Preferred Stock on an if converted basis. The Company’s CEO, Sue Nabi, was granted a one-time sign-on award of restricted stock units on June 30, 2021. On October 29, 2021 and September 18, 2023, JAB completed the transfer of 10.0 million and 5.0 million shares of Common Stock, respectively, to Ms. Nabi pursuant to an equity transfer agreement. See Note 22—Share-Based Compensation Plans for additional information. Preferred Stock As of June 30, 2024, total authorized shares of preferred stock are 20.0 million. Series A Preferred Stock As of June 30, 2024, there were 1.0 million shares of Series A Preferred Stock, par value of $0.01 per share, authorized, issued and outstanding. Series A Preferred Stock are not entitled to receive any dividends and have no voting rights except as required by law. On March 27, 2017 a Series A Preferred Stock subscription agreement was entered into with Lambertus J.H. Becht (“Mr. Becht”), the Company’s former Chairman of the Board. Under the terms provided in the subscription agreement, the Series A Preferred Stock immediately vested on the grant date and the holder was entitled to exchange the vested shares after the fifth anniversary of the date of issuance. This exchange right expired on March 27, 2024. The Company has the right to redeem the Series A Preferred Stock (1.0 million shares) at a redemption price of $0.01 per share. The Company plans to redeem these shares of Series A Preferred Stock in accordance with their terms. An (income) expense of $(0.8), $0.2, and $(0.2) was recorded during fiscal 2024, 2023 and 2022, respectively, and has been included in Selling, general and administrative expenses on the Consolidated Statements of Operations. As of June 30, 2024 and 2023, the Company classified nil and $0.8, respectively, of Series A Preferred Stock as a liability, recorded in Other noncurrent liabilities in the Consolidated Balance Sheet. Convertible Series B Preferred Stock In 2020, the Company completed the issuance and sale to KKR Aggregator of 1.0 million shares of Convertible Series B Preferred Stock, par value $0.01 per share (the “Series B Preferred Stock”), for an aggregate purchase price of $1,000 per share. On August 27, 2021, KKR Aggregator and affiliated investment funds sold 146,057 shares of Series B Preferred Stock, to HFS Holdings S.à r.l, that is beneficially owned by Peter Harf, a director of the Company. As a result of various conversions and exchanges of KKR Aggregator's shares of the Series B Preferred Stock, as of December 31, 2021, KKR has fully redeemed/exchanged all of their Series B Preferred Stock. Cumulative preferred dividends accrue daily on the Series B Preferred Stock at a rate of 9.0% per year. During the twelve months ended June 30, 2024, 2023 and 2022, the Board of Directors declared dividends on the Series B Preferred Stock of $13.2, $13.2 and $35.2, paid accrued dividends of $13.2, $13.2 and $55.8 and converted/exchanged dividends of nil, nil and $50.1, respectively. As of June 30, 2024 and 2023, the Series B Preferred Stock had outstanding accrued dividends of $3.3. Dividends - Common Stock On April 29, 2020, the Board of Directors suspended the payment of dividends on Common Stock. No dividends on Common Stock were declared for the year ended June 30, 2024. The change in dividends accrued recorded to APIC in the Consolidated Balance Sheet as of June 30, 2024, 2023 and 2022 was nil, $0.1 and $0.8, respectively, which represent dividends no longer expected to vest as a result of forfeitures of outstanding restricted stock units (“RSUs”). In addition, the Company made payments of $0.3 and $0.7, of which $0.1 and $0.2 related to employee taxes, and $1.4 for the previously accrued dividends on RSUs that vested during the twelve months ended June 30, 2024, 2023 and 2022, respectively. Total accrued dividends on unvested RSUs and phantom units included in Accrued expenses and other current liabilities are $0.8 and $1.0 as of June 30, 2024 and 2023, respectively. In addition, accrued dividends of $0.0 and $0.1 are included in Other noncurrent liabilities as of June 30, 2024 and 2023, respectively. 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, and on November 13, 2023, the Board increased the Company’s share repurchase authorization by an additional $600.0 (the “Share 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. As of June 30, 2024, the Company has $796.8 remaining under the Share Repurchase Program. In June 2022, December 2022, and November 2023, the Company entered into forward repurchase contracts (the “Forward” and together the “Forwards”) with three large financial institutions (“Counterparties”) to start hedging for potential $200.0, $196.0, and $294.0 share buyback programs in 2024, 2025, and 2026, respectively. In connection with the June 2022, December 2022, and November 2023 Forward transactions, the Company incurred certain execution fees of $2.0, $2.0, and $2.9, respectively, which were recognized as a premium to the forward price recorded at inception and amortized ratably over the contract periods. In February 2024, the Company elected to physically settle the June 2022 Forward for a cash payment of $200.0 in exchange for 27.0 million shares of its Class A Common Stock. The fair value of the shares repurchased was approximately $350.6, which was recorded as an increase to Treasury stock in the Consolidated Balance Sheets and Consolidated Statements of Equity. As part of the Forward agreements, the Company will pay interest on the outstanding underlying notional amount of the Forwards held by the Counterparties during the contract periods. The interest rates are variable, based on the United States secured overnight funding rate (“SOFR”) plus a spread. The weighted average interest rate plus applicable spread for the December 2022 and November 2023 Forward transactions were 9.8% and 8.2%, respectively, as of June 30, 2024. As part of the December 2022 Forward transaction, two of the Counterparties purchased approximately 11.0 million shares of the Company’s Class A Common Stock. In addition, as part of the November 2023 Forward transaction, the Counterparties purchased 25.0 million shares of the Company’s Class A Common Stock. These Forward agreements require the Company to: (i) repurchase the shares on or before December 15, 2024 and December 31, 2025, respectively, at a price based on the weighted average of the daily volume weighted average price (“VWAP”) during the initial acquisition period (“Initial Price”); or (ii) at the Company’s option, pay or receive the difference between the Final Price, defined as the weighted average of the daily VWAP during the unwind period as defined in the agreement, and Initial Price of the Forwards. As part of the December 2022 Forward transaction, the remaining Counterparty purchased approximately 11.5 million shares of the Company’s Class A Common Stock. This Forward requires the Company to pay or receive the difference between the Final Price and Initial Price established at inception of the Forward on or before January 15, 2025. In addition, the Forwards include a provision for a potential true-up in cash upon specified changes in the price of the Company’s Class A Common Stock relative to the Initial Price (“Hedge Valuation Adjustment”). Such Hedge Valuation adjustment shall not result in a termination date or any adjustment of the number of Coty’s Class A Common Stock shares purchased by the Counterparties at inception. In the event the Company declares and pays any cash dividends on its Class A Common Stock, the Forward Counterparties will be entitled to such dividend payments and payable at termination of the Forwards. Since the Forwards permit a net cash settlement alternative in addition to the physical settlement, the Company accounted for the Forwards initially and subsequently at their fair value, with changes in the fair value recorded in Other expense (income), net in the Consolidated Statement of Operations. The fair values of the Company’s Forwards were $(12.4) and $219.8 as of June 30, 2024 and 2023, respectively. The Forwards are valued principally based on the change in the quoted market price of the Company’s common stock price between the inception date and the end of the period. We classify these instruments as Level 2. Accumulated Other Comprehensive (Loss) Income Foreign Currency Translation Adjustments (Losses) Gains on Cash Flow Hedges (Losses) Gains on Net Investment Hedge Foreign Currency Translation Adjustments Pension and Other Post-Employment Benefit Plans Total Beginning balance at July 1, 2022 $ 4.3 $ 4.1 $ (770.8) $ 44.5 $ (717.9) Other comprehensive income (loss) before reclassifications 1.7 (53.9) 102.9 14.7 65.4 Net amounts reclassified from AOCI/(L) (a) (5.3) — — (4.6) (9.9) Net current-period other comprehensive income (loss) (3.6) (53.9) 102.9 10.1 55.5 Ending balance at June 30, 2023 $ 0.7 $ (49.8) $ (667.9) $ 54.6 $ (662.4) Other comprehensive income (loss) before reclassifications 1.2 26.8 (155.1) (0.5) (127.6) Net amounts reclassified from AOCI/(L) (a) 0.2 — — (5.3) (5.1) Net current-period other comprehensive income (loss) 1.4 26.8 (155.1) (5.8) (132.7) Ending balance at June 30, 2024 $ 2.1 $ (23.0) $ (823.0) $ 48.8 $ (795.1) (a) Amortization of actuarial gains of $7.1 and $6.1, net of taxes of $1.8 and $1.5, were reclassified out of AOCI/(L) and included in the computation of net period pension costs for the fiscal years ended June 30, 2024 and 2023, respectively (see Note 18—Employee Benefit Plans). |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS The Company has various share-based compensation programs (“the Compensation Plans”) under which awards, including non-qualified stock options, Series A Preferred Stock, RSUs, PRSUs, restricted stock and other share-based awards, may be granted or shares of Class A Common Stock may be purchased. As of June 30, 2024, 114.5 million shares of the Company's Class A Common Stock were authorized to be granted pursuant to these Plans. As of June 30, 2024, approximately 46.0 million shares of Class A Common Stock were reserved and available to be granted pursuant to these Plans. The Company may satisfy the obligation of its stock-based compensation awards with new shares. Total share-based compensation from continuing operations is shown in the table below: 2024 2023 2022 Equity plan expense (a) $ 88.5 $ 134.7 $ 195.4 Liability plan expense 0.3 1.2 0.1 Fringe expense 3.0 1.7 2.3 Total share-based compensation expense (b) $ 91.8 $ 137.6 $ 197.8 Income tax benefits recognized in earnings related to share-based compensation $ 3.0 $ 2.2 $ 1.6 Excess tax benefits related to share-based compensation $ 1.1 $ — $ 0.2 (a) Equity plan shared-based compensation expense of $88.5, $134.7, and $195.4 was recorded to additional paid in capital and presented in the Consolidated Statement of Equity for the fiscal years ended June 30, 2024, 2023, and 2022, respectively. (b) Expenses relating to share-based awards granted to non-Coty employees (Wella) are recorded within Other expense (income), net, within the Consolidated Statement of Operations. See Note 25 -Related Party Transactions for additional information. The share-based compensation expense for fiscal 2024, 2023 and 2022 of $91.8, $137.6 and $197.8, respectively, includes $91.8, $138.7 and $202.0 expense for the respective period offset by nil, $(1.1) and $(4.2) of income for the respective periods primarily due to significant executive forfeitures of share-based compensation instruments. As of June 30, 2024, the total unrecognized share-based compensation expense related to unvested stock options, PRSUs, and restricted stock units and other share awards is $0.1, $30.3 and $134.7, respectively. The unrecognized share-based compensation expense related to unvested stock options, PRSUs, and restricted stock units and other share awards is expected to be recognized over a weighted-average period of 0.38, 2.18 and 3.30 years, respectively. Non-Qualified Stock Options During fiscal 2024, 2023 and 2022, the Company granted nil, non-qualified stock option awards. These options are accounted for using equity accounting whereby the share-based compensation expense is estimated and fixed at the grant date based on the estimated value of the options using the Black-Scholes valuation model. Non-qualified stock options generally become exercisable five years from the date of the grant or on a graded vesting schedule where 60% of each award granted vests after three years, 20% of each award granted vests after four years and 20% of each award granted vests after five years. All grants expire ten years from the date of the grant. The Company’s outstanding non-qualified stock options as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Weighted Aggregate Weighted Outstanding at July 1, 2023 5.1 $ 13.06 Exercised (1.2) 11.08 Forfeited (0.3) 11.79 Outstanding at June 30, 2024 3.6 $ 13.82 Vested and expected to vest at June 30, 2024 3.5 $ 13.85 $ — 3.91 Exercisable at June 30, 2024 3.3 $ 13.98 $ — 3.80 Of the 3.6 million stock options outstanding at June 30, 2024, 1.7 million vest on the fifth anniversary of the grant date and 1.9 million vest on the graded vesting schedule. As of June 30, 2024, the grant prices of the outstanding options ranged from $11.08 to $19.17, and the grant prices for exercisable options ranged from $11.08 to $19.17. The total intrinsic value of stock options vested and exercised during fiscal 2024, 2023 and 2022 was $1.2, $0.1 and nil. The Company’s non-vested non-qualified stock options as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Weighted Non-vested at July 1, 2023 1.0 $ 3.02 Vested (0.4) 2.93 Forfeited (0.3) 2.88 Non-vested at June 30, 2024 0.3 $ 3.41 The share-based compensation expense recognized on the non-qualified stock options was $0.3, $1.3 and $(0.9) during fiscal 2024, 2023 and 2022, respectively. Series A Preferred Stock In addition to the Executive Ownership Programs discussed above, the Series A Preferred Stock are accounted for partially as equity and partially as a liability as of June 30, 2024, 2023 and 2022 and the Company recognized an (income) expense of $(0.8), $0.2 and $(0.2) in fiscal 2024, 2023 and 2022, respectively. See Note 21—Equity and Convertible Preferred Stock for additional information. The Company uses the binomial lattice or the Black-Scholes model to value the outstanding Series A Preferred Stocks. The fair value of the Company’s outstanding Series A Preferred Stock were estimated with the following assumptions. 2023 2022 Expected life, in years 0.74 years 1.74 years Expected volatility 66.31% 65.57% Risk-free rate of return 5.44% 2.89% Dividend yield on Class A Common Stock —% 1.56% Pursuant to the Series A Preferred Stock subscription agreement dated March 27, 2017, the vested Series A Preferred Stock expired on March 31, 2024. As such, the fair value of the outstanding Series A Preferred Stock was zero and no valuation was performed. Expected life, in years - The expected life represents the period of time (years) that Series A Preferred Stock granted are expected to be outstanding, which the Company calculates using a formula based on the contractual life of the respective Series A Preferred Stock. Expected volatility - The expected volatility is derived using historical stock price information for the Company’s common stock and that of certain peer group companies, and the volatility implied by the trading of options to purchase the Company’s stock on open-market exchanges. Risk-free rate of return - The Company bases the risk-free rate of return on the U.S. Constant Maturity Treasury Rate. Dividend yield on Class A Common Stock - The Company calculated the dividend yield on shares using the expected annualized dividend rate and the stock price as of the valuation date. Series A Preferred Shares generally expire seven years from the date of the grant. The Company’s outstanding Series A Preferred Shares as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Weighted Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Outstanding at July 1, 2023 1.0 $ 22.39 Forfeited — — Outstanding at June 30, 2024 1.0 — Vested and expected to vest at June 30, 2024 — $ — $ — — Exercisable — $ — $ — — The Company has no non-vested shares of Series A Preferred Stock as of June 30, 2024 or 2023. Long-term Equity Program for CEO The Company’s CEO, Sue Nabi, was granted a one-time sign-on award of restricted stock units (the “Award”) on June 30, 2021. The Award vested and settled in 10.0 million shares of the Company’s Class A Common Stock, par value $0.01 per share, on each of August 31, 2021, August 31, 2022 and August 31, 2023. The Company recognized the share-based compensation expense, on a straight-line basis over the vesting period, based on the fair value on the grant date. The amount of compensation cost recognized at each vesting date must at least equal the portion of the award legally vested. In connection with this Award, on October 29, 2021 and September 18, 2023, JAB, the Company’s largest stockholder and a wholly-owned subsidiary of JAB Holding Company S.à r.l., completed the transfer of 10.0 million and 5.0 million shares of Class A Common Stock, respectively, to Ms. Nabi. On August 31, 2023 and 2022, the Company issued 5.0 million and 10.0 million shares of Class A Common Stock, respectively, to Ms. Nabi in connection with the third and second vesting of the Award. Pursuant to the term of the amended employment agreement on May 4, 2023, the Company granted Ms. Nabi a one-time award of 10,416,667 RSUs and will grant a total of 10,416,665 PRSUs in five equal tranches over the next five years. These two awards will vest periodically over the next seven years in accordance with the terms discussed below. Ms. Nabi's 10,416,667 RSUs will vest and settle in shares of the Company’s Class A Common Stock, par value $0.01 per share over five years on the following vesting schedule: (i) 15% on September 1, 2024, (ii) 15% on September 1, 2025, (iii) 20% on September 1, 2026, (iv) 20% on September 1, 2027; and (v) 30% on September 1, 2028, in each case subject to Ms. Nabi’s continued employment through the applicable vesting date. The Company will recognize approximately $109.6 of share-based compensation expense, on a straight-line basis over the vesting period, based on the fair value on the grant date, net of forfeitures. The amount of compensation cost recognized at each vesting date must at least equal the portion of the award legally vested. The first tranche of Ms. Nabi's PRSU award of 2,083,333 shares shall fully vest on September 1, 2026, subject to the achievement of three-year performance objectives determined by the Board on September 28, 2023 (the grant date) and subject to Ms. Nabi’s continued employment. The next four tranches of 2,083,333 PRSUs will be granted on or around each September 1 of 2024 through 2027, which shall vest on the third-year anniversary of the respective grant date, subject in each case to the achievement of three-year performance objectives to be determined by the Board. The Company will recognize share-based compensation expense associated with these PRSUs, on a straight-line basis over the vesting period, based on the fair value on the grant date when it is probable that the performance condition will be achieved. In the event that JAB and Ms. Nabi sell shares of Common Stock for cash in a privately negotiated transaction, subject to Board approval, the Company will grant Ms. Nabi new options to acquire shares of Common Stock (the “Reload Options”) in an amount equal to the number of shares sold by Ms. Nabi in such transaction. The Reload Options will have a strike price equal to the greater of the volume weighted average price for shares at the time of the relevant transaction and the fair market value on the date of grant. The potential expense attributed to the reload options will be recognized when the reload options are granted. Restricted Stock Units During fiscal 2024, 2023 and 2022, 4.1 million, 17.2 million and 4.6 million RSUs were granted under the Omnibus LTIP and 0.3 million, 0.3 million and 0.3 million RSUs were granted under the 2007 Stock Plan for Directors, respectively. The Company’s outstanding RSUs as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Aggregate Weighted Outstanding at July 1, 2023 33.9 Granted 4.4 Settled (15.1) Cancelled (1.1) Outstanding at June 30, 2024 22.1 Vested and expected to vest at June 30, 2024 19.5 $ 195.7 2.85 The share-based compensation expense recorded in connection with the RSUs and other share awards was $78.5, $131.9 and $197.2 during fiscal 2024, 2023 and 2022, respectively, of which $36.5, $96.6 and $170.9 related to Ms. Nabi's award, as described above. The Company’s outstanding and non-vested RSUs as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Weighted Outstanding and nonvested at July 1, 2023 33.4 $ 9.38 Granted 4.4 9.79 Vested (15.4) 8.36 Cancelled (1.1) 7.59 Outstanding and nonvested at June 30, 2024 21.3 $ 9.92 The total intrinsic value of RSUs vested and settled during fiscal 2024, 2023 and 2022 is $166.7, $34.3 and $33.5, respectively. Performance Restricted Stock Units During fiscal 2024 and 2023, 4.0 million and 1.2 million PRSUs were granted under the Omnibus LTIP, respectively. The Company’s outstanding PRSUs as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Aggregate Weighted Outstanding at July 1, 2023 1.2 Granted 4.0 Settled — Cancelled (0.1) Outstanding at June 30, 2024 5.1 Vested and expected to vest at June 30, 2024 4.4 43.9 2.05 The share-based compensation expense recorded in connection with the PRSUs was $10.7, $1.5 and nil during fiscal 2024, 2023 and 2022, respectively, of which $5.4, nil and nil related to Ms. Nabi's award, as described above. The Company’s outstanding and non-vested PRSUs as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Weighted Outstanding and nonvested at July 1, 2023 1.2 $ 6.62 Granted 4.0 10.53 Vested — Cancelled (0.1) 7.86 Outstanding and nonvested at June 30, 2024 5.1 $ 9.66 The total intrinsic value of PRSUs vested and settled during fiscal 2024, 2023 and 2022 was nil. Restricted Stock During fiscal 2024, 2023 and 2022, 0.3 million, 0.4 million, and 0.3 million, restricted stock awards were granted under the Omnibus LTIP, respectively. The Company’s outstanding restricted stock as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Aggregate Weighted Outstanding at July 1, 2023 0.7 Granted 0.3 Settled (0.5) Cancelled (0.5) Outstanding at June 30, 2024 — Vested and expected to vest at June 30, 2024 — $ — — The share-based compensation expense recorded in connection with the restricted stock was $3.1, $2.7, $1.8 during fiscal 2024, 2023 and 2022, respectively. Due to significant executive forfeitures, 0.5 million shares of restricted stock were cancelled and reclassified as Treasury Stock. The Company’s outstanding and non-vested restricted stock as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Weighted Outstanding and nonvested at July 1, 2023 0.7 $ 6.94 Granted 0.3 9.63 Vested (0.5) 9.19 Cancelled (0.5) 8.09 Outstanding and nonvested at June 30, 2024 — $ — The total intrinsic value of restricted stock vested and settled during fiscal 2024, 2023 and 2022 was $5.0, $2.6 and $1.7, respectively. Phantom Units On July 21, 2015, the Board granted Mr. Becht, the Company’s former Chairman of the Board and interim CEO, an award of 300,000 phantom units, in consideration of Mr. Becht’s increased and continuing responsibilities as interim CEO of the Company. Each phantom unit has an economic value equivalent to one share of the Company’s Class A Common Stock settleable in cash or shares at the election of Mr. Becht. The award to Mr. Becht was made outside of the Company’s Omnibus LTIP. On July 24, 2015, Mr. Becht elected to receive payment of the phantom units in the form of shares of Class A Common Stock and the phantom units were valued at $8.0. The phantom units vested on the fifth anniversary of the grant date and remain outstanding as of June 30, 2024. |
NET INCOME (LOSS) ATTRIBUTABLE
NET INCOME (LOSS) ATTRIBUTABLE TO COTY INC. PER COMMON SHARE | 12 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) ATTRIBUTABLE TO COTY INC. PER COMMON SHARE | NET INCOME (LOSS) ATTRIBUTABLE TO COTY INC. PER COMMON SHARE Net income (loss) attributable to Coty Inc. common stockholders per common share (“basic EPS”) is computed by dividing net income (loss) attributable to Coty Inc. less any dividends on Series B Preferred Stock by the weighted-average number of common shares outstanding during the period. Net income (loss) attributable to Coty Inc. common stockholders per common share assuming dilution (“diluted EPS”) is computed by adjusting the numerator used in basic EPS to add back the dividends applicable to the Series B Preferred Stock, if dilutive, and using the basic EPS weighted-average number of common shares and the effect of potentially dilutive securities outstanding during the period as the denominator. Potentially dilutive securities consist of non-qualified stock options, Series A Preferred Stock, RSUs, unvested restricted stock awards and potential shares resulting from the conversion of the Series B Preferred Stock as of June 30, 2024, 2023 and 2022. Net income (loss) attributable to Coty Inc. is adjusted through the application of the two-class method of income per share to reflect a portion of the periodic adjustment of the redemption value in excess of fair value of the redeemable noncontrolling interests. There is no excess of redemption value over fair value of the redeemable noncontrolling interests in fiscal 2024, 2023 and 2022. In addition, there are no participating securities requiring the application of the two-class method of income per share. Reconciliation between the numerators and denominators of the basic and diluted EPS computations is presented below: Year Ended June 30, 2024 2023 2022 Amounts attributable to Coty Inc.: Net income (loss) from continuing operations $ 89.4 $ 508.2 $ 253.8 Convertible Series B Preferred Stock dividends (13.2) (13.2) (198.3) Net income (loss) from continuing operations attributable to common stockholders 76.2 495.0 55.5 Net income (loss) from discontinued operations, net of tax — — 5.7 Net income (loss) attributable to common stockholders $ 76.2 $ 495.0 $ 61.2 Weighted-average common shares outstanding: Weighted-average common shares outstanding—Basic 874.4 849.0 820.6 Effect of dilutive stock options and Series A Preferred Stock (a) 0.1 — — Effect of restricted stock, PRSUs and RSUs (b) 8.9 13.8 13.5 Effect of Convertible Series B Preferred Stock (c) — 23.7 — Effect of Forward Repurchase Contracts (d) — — — Weighted-average common shares and common share equivalents outstanding—Diluted 883.4 886.5 834.1 Earnings (losses) per common share Earnings from continuing operations per common share - basic $ 0.09 $ 0.58 $ 0.07 Earnings (losses) from continuing operations per common share - diluted (e) $ 0.09 $ 0.57 $ 0.07 Earnings from discontinued operations - basic $ 0.00 $ 0.00 $ 0.01 Earnings from discontinued operations - diluted $ 0.00 $ 0.00 $ 0.01 Earnings (losses) per common share - basic $ 0.09 $ 0.58 $ 0.08 Earnings (losses) per common share - diluted (e) $ 0.09 $ 0.57 $ 0.08 (a) As of June 30, 2024, 2023, and 2022, outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase 2.8 million, 4.8 million, and 8.3 million weighted average anti-dilutive shares of Common Stock, respectively, were excluded from the computation of diluted EPS. (b) As of June 30, 2024, 2023, and 2022, there were 1.0 million, 3.2 million, and 1.6 million weighted average anti-dilutive RSUs, respectively, were excluded from the computation of diluted EPS. (c ) As of June 30, 2024 and 2022, there were 23.7 million and 65.4 million dilutive shares of Convertible Series B Preferred Stock, respectively, were excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. (d) For the twelve months ended June 30, 2024, potential shares for the Forward Repurchase Contracts were excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. For the twelve months ended June 30, 2023, potential shares for the Forward Repurchase Contracts were excluded from the computation of diluted EPS as Coty is in the position to receive shares from the counterparties and as such their inclusion would be anti-dilutive. (e) Diluted EPS is adjusted by the effect of dilutive securities, including awards under the Company's equity compensation plans, the convertible Series B Preferred Stock, and the Forward Repurchase Contracts. When calculating any potential dilutive effect of stock options, Series A Preferred Stock, restricted stock, PRSUs and RSUs, the Company uses the treasury method and the if-converted method for the Convertible Series B Preferred Stock and the Forward Repurchase Contracts. The treasury method typically does not adjust the net income attributable to Coty Inc., while the if-converted method requires an adjustment to reverse the impact of the preferred stock dividends of $13.2, $13.2, and $198.3, respectively, and to reverse the impact of fair market value losses/(gains) for contracts with the option to settle in shares or |
LEGAL AND OTHER CONTINGENCIES
LEGAL AND OTHER CONTINGENCIES | 12 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL AND OTHER CONTINGENCIES | LEGAL AND OTHER 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 (most involving allegations related to alleged asbestos in the Company’s talc-based cosmetic products), 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. Brazilian Tax Assessments The Company’s Brazilian subsidiaries receive tax assessments from local, state and federal tax authorities in Brazil from time to time. Current open tax assessments as of June 30, 2024 are: Assessment received Type of assessment Type of Tax Tax period impacted Estimated amount, including interest and penalties as of June 30, 2024 Aug-20 State sales tax credits, which the Treasury Office of the State of Goiás considers as improperly registered ICMS 2017-2019 R$873.8 million (approximately $158.8) Oct-20 Federal excise taxes, which the Treasury Office of the Brazil’s Internal Revenue Service considers as improperly calculated 1 IPI 2016-2017 R$438.3 million (approximately $79.7) Nov-22 IPI 2018-2019 R$592.3 million (approximately $107.7) Mar-24 IPI 2020 R$33.5 million (approximately $6.1) Nov-20 State sales taxes, which the Treasury Office of the State of Minas Gerais considers as improperly calculated ICMS 2016-2019 R$225.4 million (approximately $41.0) Jun-21 State sales tax, which the Treasury Office of the State of Goiás considers as improperly calculated ICMS 2016-2020 R$46.9 million (approximately $8.5) 1 The case is scheduled to be heard by an administrative court in late August 2024. For the Goiás State tax ICMS assessment received in August 2020, the Company has in parallel a judicial case about an additional claim for fees over the tax incentive, for which the Company received an unfavorable first instance ruling and has filed an appeal to the Court. In the first quarter of fiscal 2024, the Company filed a motion for clarification as a step before potentially appealing to a Brazilian higher court, which was denied. In December 2023, the Company filed appeals to be remitted to the Brazilian Superior Court of Justice and, in parallel, filed a motion to grant the suspension of the state's ability to collect the above tax incentives to the Goiás State Court as the case is under discussion. In January 2024, the motion to grant the suspension of the state’s ability to collect the above tax incentives was dismissed. In April 2024, a judge of the Superior Court of Justice ruled against the Company. The Company filed an interlocutory appeal for the full bench of judges on the Superior Court of Justice to review the case. The case is scheduled to be heard by the Superior Court of Justice in late August 2024. The Company has been required to provide surety bonds of R$135.2 million (approximately $25.0) and cash deposits of R$124.5 million (approximately $22.6) as of June 30, 2024, to guarantee payment if the case is resolved against Coty. The cash deposits are included in the Other Noncurrent Assets on the Consolidated Balance Sheet. The Minas Gerais State tax ICMS assessment received in November 2020 is currently at the judicial process. The Company has been required to provide surety bonds of R$311.9 (approximately $56.7) as of June 30, 2024, to guarantee payment if the case is resolved against Coty. All other cases are currently in the administrative process. The Company expects that cases may move from the administrative to the judicial process in case Coty does not receive a favorable decision at the administrative level, although the exact timing is uncertain. For cases in the judicial process, the Company will be required to make a judicial deposit or enter into a surety bond for the disputed tax assessment, interest and penalties. The judicial process in Brazil is likely to take a number of years to conclude. The Company is seeking favorable judicial and administrative decisions on the tax enforcement actions filed by the tax authorities for these assessments. 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. Other Commitments At June 30, 2024, the aggregate future minimum purchase obligations, which include commitments to purchase inventory and other services agreements, were as follows: Fiscal Year Ending June 30, Purchase Obligations 2025 $ 750.4 2026 78.6 2027 44.6 2028 24.2 2029 — Thereafter — Total $ 897.8 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Performance Guarantee In connection with the sales of certain businesses, the Company has assigned its rights and obligations under a real estate lease to JAB Partners LLP. The remaining term of this lease is approximately seven years. While the Company is no longer the primary obligor under this lease, the lessor has not completely released the Company from its obligation, and holds it secondarily liable in the event that the assignee defaults on the lease. The maximum potential future payments that the Company could be required to make, if the assignee was to default as of June 30, 2024, would be approximately $3.6. The Company has assessed the probability of default by the assignee and has determined it to be remote. Equity Transfer Agreement In connection with the Award granted to the Company’s CEO on June 30, 2021, JAB Beauty B.V. agreed to transfer to her (either directly or through contributing to the Company) one-half of the total number of shares of Common Stock owed to her when the Award vests, which has now been fulfilled. See Note 22—Share-Based Compensation Plans for more information on the Award. Relationship with KKR As noted in Note 21—Equity and Convertible Preferred Stock, in fiscal 2020 KKR Aggregator purchased Series B Preferred Stock. This preferred stock conveyed to KKR Aggregator the right to designate two directors to the Company’s Board of Directors and voting rights on an as-converted basis. As a result of various conversions/exchanges described below, KKR no longer holds any preferred stock of the Company and no longer has the right to designate any directors to the Company's Board of Directors. • On November 16, 2020, KKR Aggregator and affiliated investment funds agreed to sell 146,057 shares of Series B Preferred Stock to HFS Holdings S.à r.l, a private limited liability company incorporated under the laws of Luxembourg that is beneficially owned by Peter Harf, a director of the Company. The transaction, which was subject to customary closing conditions, closed on August 27, 2021. • On September 10, 2021, KKR Aggregator converted a portion of its Series B Preferred Stock into Class A common stock and completed a secondary public offering of the converted shares of Class A common stock. • On October 20, 2021, the Company completed the sale of a 9.4% stake in Wella to KKR Aggregator in exchange for the redemption of 290,465 shares of KKR's Series B Convertible Preferred Stock shares in Coty and a portion of unpaid dividends . • On November 10, 2021, KKR Aggregator converted 123,219 shares of Series B Preferred Stock, and $1.2 of unpaid dividends into 19,944,701 shares of Class A common stock. Immediately after the conversion, KKR Aggregator completed a sale of 19,944,701 shares of Class A common stock. • On November 30, 2021, Coty completed the sale of an additional 4.7% stake in Wella to KKR Aggregator. The Company’s total shareholding in the Wella Company is now 25.84%. From time to time, certain funds held by KKR may hold the Company’s Senior Secured and Unsecured Notes (as defined in Note 14—Debt). These funds may receive principal and interest payments on the same terms as other investors in the Company’s Senior Secured and Unsecured Notes. Wella As of June 30, 2024, Coty owned 25.84% of the Wella Company as an equity investment and performs certain services to Wella. Refer to Note 12—Equity Investments. On December 22, 2021, the Company entered into an agreement with (“KKR Bidco”) related to post-closing adjustments to the purchase consideration the Wella Business. In relation to this contingent consideration agreement, the Company received cash proceeds of $6.0 during fiscal 2024 and recognized gains of $19.7, $30.8, and $0.7, during fiscal 2024, 2023 and 2022, respectively, reported in Other expense (income), net. In connection with the sale of the Wella Business, the Company and Wella entered into a Transitional Services Agreement (“TSA”). Subject to the terms of this TSA, the Company will perform services for Wella in exchange for related service fees. Such services include billing and collecting from Wella customers, certain logistics and warehouse services, as well as other administrative and systems support. The Company and Wella have mutually agreed to end the contracted TSA services on January 31, 2022, as well as previously existing distribution services in Brazil during fiscal 2024. The Company and Wella continue to have in place manufacturing arrangements to facilitate the Wella Business transition in the U.S. and Brazil. TSA fees and other fees earned were $2.2 and $10.0, respectively, for the year ended June 30, 2024, $3.3 and $7.6, respectively for the year ended June 30, 2023, and $87.5 and $6.7, respectively for the year ended June 30, 2022. The TSA fees are principally invoiced on a cost plus basis. The TSA fees and other fees were included in Selling, general and administrative expenses and Cost of sales, respectively, in the Company's Statement of Operations. As of June 30, 2024, accounts receivable from and accounts payable to Wella of $40.0 and nil, respectively, were included in Prepaid expenses and other current assets and Accrued expenses and other current liabilities, respectively, in the Company's Balance Sheets. Additionally, as of June 30, 2024, the Company has accrued $33.5 related to long-term payables due to Wella included in Other noncurrent liabilities in the Company's Consolidated Balance Sheet. In accordance with the separation agreement with Wella, Coty shall retain and be solely responsible for any amounts payable to former Coty employees transferred to Wella (“Wella employees”), who participated in the Coty Long-Term Incentive Plan. The Wella employees will continue to participate and vest on the current terms for the remaining vesting period after the separation. As such, Coty will continue to recognize the share-based compensation expense for Wella employees until the existing equity awards reach their vesting date. For the years ended June 30, 2024, 2023, and 2022 Coty recorded $2.1, $4.6, and $0.7 of share-based compensation expense related to Wella employees, which was presented as part of Other expense (income), net in the Consolidated Statements of Operations. The Company also entered into an agreement with Wella to provide management, consulting and financial services to Wella and its direct and indirect divisions, subsidiaries, parent entities and controlled affiliates (in assisting it in the management of its business). Fees earned and reflected in Other expense (income), net in fiscal years 2024, 2023 and 2022 were $1.2, $2.7, and nil respectively. The Company has certain sublease arrangements with Wella after the sale. For the years ended June 30, 2024, 2023 and 2022, the Company reported sublease income of $8.2, $9.1, and $13.3 from Wella. Orveda The disinterested members of the Board reviewed and approved the entry into a license agreement with Orveda, an ultra-premium skincare brand co-founded by Coty’s CEO, Sue Nabi. Ms. Nabi has no continuing formal role at Orveda or economic interest in Orveda as a result of divesting her interests which was settled in cash in December 2021; however her business partner and co-founder, Nicolas Vu, is the sole owner and CEO of Orveda, and Mr. Vu also provides consulting services to Coty under the terms of a separate agreement. The initial term of the Orveda license agreement is five years, with two five-year automatic renewals subject to the achievement of certain net revenue milestones. The principal terms of the license agreement are consistent with other Coty prestige licenses and the Board determined that the terms were no more favorable than to an unaffiliated third party. Consulting Services and Other Arrangements |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company evaluated the effect of events and transactions subsequent to the consolidated balance sheet date of June 30, 2024 through the date of issuance of the Consolidated Financial Statements and determined that no subsequent events have occurred that require recognition in the Consolidated Financial Statements or disclosure in the notes to the Consolidated Financial Statements. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jun. 30, 2024 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Years Ended June 30, 2024, 2023, and 2022 ($ in millions, except per share data) Valuation and Qualifying Accounts (a) Description Three Years Ended June 30, Balance at Charged to Deductions Balance at Allowance for doubtful accounts and other customer deductions: 2024 $ 23.2 8.9 (7.8) (a) $ 24.3 2023 53.4 4.3 (34.5) (a) 23.2 2022 47.7 26.2 (20.5) (a) 53.4 Allowance for customer returns: 2024 $ 82.8 112.6 (131.6) $ 63.8 2023 95.3 103.0 (115.5) 82.8 2022 89.9 128.4 (123.0) 95.3 Deferred tax valuation allowances: 2024 $ 60.7 100.9 (10.2) $ 151.4 2023 41.7 21.7 (2.7) 60.7 2022 33.4 12.5 (4.2) 41.7 (a) Includes amounts written-off, net of recoveries and cash discounts. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 89.4 | $ 508.2 | $ 259.5 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Insider Trading Policies and Pr
Insider Trading Policies and Procedures | 12 Months Ended |
Jun. 30, 2024 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Adopted | true |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2024 | |
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 2024” refer to the fiscal year ended June 30, 2024. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying financial statements of the Company are presented on a consolidated basis in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the period reported. Significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, the net realizable value of inventory, the fair value of equity investments, 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 Consolidated Financial Statements in future periods. |
Cash Equivalents | Cash Equivalents Cash equivalents include all highly liquid investments with original maturities of three months or less at the time of purchase. |
Restricted Cash | Restricted Cash Restricted cash represents funds that are not readily available for general purpose cash needs due to contractual limitations. Restricted cash is classified as a current or long-term asset based on the timing and nature of when or how the cash is expected to be used or when the restrictions are expected to lapse. As of June 30, 2024 and 2023, the Company had restricted cash of $19.8 and $36.9, respectively, included in Restricted cash in the Consolidated Balance Sheets. The restricted cash balances as of June 30, 2024 and 2023 primarily provide collateral for certain bank guarantees on rent, customs and duty accounts and also consists of collections on factored receivables that remain unremitted to the factor as of June 30, 2024 and 2023. Restricted cash is included as a component of Cash, cash equivalents, and restricted cash in the Consolidated Statement of Cash Flows. |
Trade Receivables | Trade Receivables Trade receivables are stated net of the allowance for doubtful accounts and cash discounts, which is based on the evaluation of the accounts receivable aging, specific exposures, and historical trends. We make estimates of expected credit and collectibility trends for the allowance for doubtful accounts based upon our assessment of historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect our ability to collect from customers. Trade receivables are written off on a case-by-case basis, net of any amounts that may be collected. |
Inventories | Inventories Inventories include items which are considered salable or usable in future periods, and are stated at the lower of cost or net realizable value, with cost being based on standard cost which approximates actual cost on a first-in, first-out basis. Costs include direct materials, direct labor and overhead (e.g., indirect labor, rent and utilities, depreciation, purchasing, receiving, inspection and quality control) and in-bound freight costs. The Company classifies inventories into various categories based upon their stage in the product life cycle, future marketing sales plans and the disposition process. The Company also records an inventory obsolescence reserve, which represents the excess of the cost of the inventory over its net realizable value, based on product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, and requirements to support forecasted sales. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. |
Equity Investments | Equity Investments The Company elected the fair value option to account for its investment in Rainbow JVCO LTD and subsidiaries (together, "Wella" or the “Wella Company”) to align with the Company’s strategy for this investment. The fair value is updated on a quarterly basis. The investments are classified within Level 3 in the fair value hierarchy because the Company estimates the fair value of the investments using a combination of the income approach, the market approach and private transactions, when applicable. Changes in the fair value of equity investments under the fair value option are recorded in Other (income) expense, net within the Consolidated Statements of Operations (see Note 12—Equity Investments). |
Property and Equipment | Property and equipment is stated at cost less accumulated depreciation or amortization. The cost of renewals and betterments is capitalized and depreciated. Expenditures for maintenance and repairs are expensed as incurred. Property and equipment that is disposed of through sale, trade-in, donation, or scrapping is written off, and any gain or loss on the transaction, net of costs to dispose, is recorded in Selling, general and administrative expense. Depreciation and amortization are computed principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives Buildings 20-40 years Marketing furniture and fixtures 3-5 years Machinery and equipment 2-15 years Computer equipment and software 2-5 years Property and equipment under finance leases and leasehold improvements Lesser of lease term or economic life |
Other Long-lived Assets | Intangible assets with finite lives are amortized principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives License agreements 2-34 years Customer relationships 2-28 years Trademarks 2-30 years Product formulations and technology 2-28 years |
Goodwill and Other Indefinite-lived Intangible Assets | Goodwill and Other Indefinite-lived Intangible Assets Goodwill is calculated as the excess of the cost of purchased businesses over the fair value of their underlying net assets. Goodwill is allocated and evaluated at the reporting unit level, which are the Company’s operating segments. The Company allocates goodwill to one or more reporting units that are expected to benefit from synergies of the business combination. Goodwill and other intangible assets with indefinite lives are not amortized, but are evaluated for impairment annually as of May 1 or whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. When testing goodwill for impairment, the Company has the option of first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as the basis to determine if it is necessary to perform a quantitative goodwill impairment test. In performing its qualitative assessment, the Company considers the extent to which unfavorable events or circumstances identified, such as changes in economic conditions, industry and market conditions or company specific events, could affect the comparison of the reporting unit’s fair value with its carrying amount. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is required to perform a quantitative impairment test. Quantitative impairment testing for goodwill is based upon the fair value of a reporting unit as compared to its carrying value. The Company makes certain judgments and assumptions in allocating assets and liabilities to determine carrying values for its reporting units. To determine fair value of the reporting unit, the Company uses a combination of the income and market approaches, when applicable. Under the income approach, fair value is determined using a discounted cash flow method, projecting future cash flows of each reporting unit, as well as a terminal value, and discounting such cash flows at a rate of return that reflects the relative risk of the cash flows. Under the market approach, when applicable, information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units is utilized to create valuation multiples that are applied to the operating performance of the reporting units being tested, to value the reporting unit. The impairment loss recognized would be the difference between a reporting unit’s carrying value and fair value in an amount not to exceed the carrying value of the reporting unit’s goodwill. Indefinite-lived other intangible assets principally consist of trademarks. The fair values of indefinite-lived other intangible assets are estimated and compared to their respective carrying values. The trademarks’ fair values are based upon the income approach, utilizing the relief from royalty or excess earnings methodology. This methodology assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. An impairment loss is recognized when the estimated fair value of the intangible asset is less than its carrying value. |
Leases | Leases All of the Company’s material leases are operating leases. These are primarily for real estate properties, including corporate offices, retail stores and facilities to support the Company's manufacturing, research and development and distribution operations. For any new or modified lease, the Company, at the inception of the contract, determines whether a contract is or contains a lease. The Company records right-of-use ("ROU") assets and lease obligations for its operating leases, which are initially recognized based on the discounted future lease payments over the term of the lease. Variable lease payments are not included in the measurement of ROU assets and lease liabilities. As the rate implicit in the Company's leases is not easily determinable, the Company’s applicable incremental borrowing rate is used in calculating the present value of the sum of the lease payments. Lease term is defined as the non-cancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company has elected not to recognize ROU asset and lease obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less. |
Deferred Financing Fees | Deferred Financing Fees The Company capitalizes costs related to the issuance of debt instruments, as applicable. Such costs are amortized over the contractual term of the related debt instrument in Interest expense, net using the straight-line method, which approximates the effective interest method, in the Consolidated Statements of Operations. |
Noncontrolling Interests and Redeemable Noncontrolling Interests | Noncontrolling Interests and Redeemable Noncontrolling Interests Interests held by third parties in consolidated majority-owned subsidiaries are presented as noncontrolling interests, which represents the noncontrolling stockholders’ interests in the underlying net assets of the Company’s consolidated majority- owned subsidiaries. Noncontrolling interests that are not redeemable are reported in the equity section of the Consolidated Balance Sheets. Noncontrolling interests, where the Company may be required to repurchase the noncontrolling interest under a put option or other contractual redemption requirement, are reported in the Consolidated Balance Sheets between liabilities and equity, as redeemable noncontrolling interests. The Company adjusts the redeemable noncontrolling interests to the higher of the redemption value or the carrying value (the acquisition date fair value adjusted for the noncontrolling interest’s share of net income (loss) and dividends) on each balance sheet date with changes recognized as an adjustment to retained earnings, or in the absence of retained earnings, as an adjustment to additional paid-in capital. |
Revenue Recognition and Cost of Sales | Revenue Recognition Revenue is recognized at a point in time and/or over time when control of the promised goods or services is transferred to the Company’s customers, which usually occurs upon delivery. Revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods or services. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The Company’s revenue contracts principally represent a performance obligation to sell its beauty products to trade customers and are satisfied when control of promised goods and services is transferred to the customers. Net revenues comprise gross revenues less customer discounts and allowances, actual and expected returns (estimated based on an analysis of historical experience and position in product life cycle) and various trade spending activities. Trade spending activities represent variable consideration promised to the customer and primarily relate to advertising, product promotions and demonstrations, some of which involve cooperative relationships with customers. The costs of trade spend activities are estimated considering all reasonably available information, including contract terms with the customer, the Company’s historical experience and its current expectations of the scope of the activities, and is reflected in the transaction price when sales are recorded. The Company’s payment terms vary by the type and location of its customers and the products offered. The term between invoicing and when payment is due is not significant. The Company’s sales return accrual reflects seasonal fluctuations, including those related to revenues for the holiday season in the first half of the fiscal year. This accrual is a subjective critical estimate that has a direct impact on reported net revenues, and is calculated based on history of actual returns, estimated future returns and information provided by retailers regarding their inventory levels. In addition, as necessary, specific accruals may be established for significant future known or anticipated events. The types of known or anticipated events that the Company has considered, and will continue to consider, include the financial condition of the Company’s customers, store closings by retailers, changes in the retail environment, and the Company’s decision to continue to support new and existing brands. Returns represented 1%, 2% and 2% of gross revenue after customer discounts and allowances in fiscal 2024, 2023 and 2022, respectively. Trade spending activities recorded as a reduction to gross revenue after customer discounts and allowances represented 9%, 10%, and 10% in fiscal 2024, 2023 and 2022, respectively. The Company accounts for certain customer store fixtures as other assets. Such fixtures are amortized using the straight-line method over the period of 3 to 5 years as a reduction of revenue. Cost of Sales Cost of sales includes all of the costs to manufacture the Company’s products. For products manufactured in the Company’s own facilities, such costs include raw materials and supplies, direct labor and factory overhead. For products manufactured for the Company by third-party contractors, such costs represent the amounts invoiced by the contractors. Cost of sales also includes royalty expense associated with license agreements. Additionally, shipping costs, freight-in and depreciation and amortization expenses related to manufacturing equipment and facilities are included in Cost of sales in the Consolidated Statements of Operations. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses include advertising and promotional costs and research and development costs. Also included in Selling, general and administrative expenses are share-based compensation, certain warehousing fees, manufacturing fixed costs, personnel and related expenses, rent on operating leases, and professional fees. Advertising and promotional costs are expensed as incurred and totaled $1,625.5, $1,479.6 and $1,465.1 in fiscal 2024, 2023 and 2022, respectively. Included in advertising and promotional costs are $113.6, $103.0, and $119.4 of depreciation of marketing furniture and fixtures, such as product displays, in fiscal 2024, 2023 and 2022, respectively. Research and development costs are expensed as incurred and totaled $126.8, $105.2 and $97.3 in fiscal 2024, 2023 and 2022, respectively. |
Share-Based Compensation | Share-Based Compensation Common Stock Common shares are available to be awarded for the exercise of phantom units, vested stock options, the settlement of restricted stock units (“RSUs”) and performance restricted stock units (“PRSUs”), and the conversion of Series A Preferred Stock. The Company accounts for its share-based compensation plans for Common Stock as equity awards, aside from phantom units. For those awards treated as equity, share-based compensation expense is measured and fixed at the grant date based on the estimated fair value of the award and is recognized on a straight-line basis, net of estimated forfeitures, over the employee’s requisite service period and, for PRSUs, when it is probable that the performance condition will be achieved. For PRSUs, in a period we determine it is no longer probable that we will achieve certain performance measures for the awards, we reverse the stock-based compensation expense that we had previously recognized and associated with the portion of PRSUs that are no longer expected to vest. The amount of the expense ultimately recognized depends on the number of awards that actually vest. Accordingly, stock-based compensation expense may vary from period to period. The Company accounts for its phantom units as a liability award. For those awards treated as a liability, share-based compensation expense are measured at the end of each reporting period based on the fair value of the award on each reporting date and recognized as an expense to the extent earned. The fair value of stock options is determined using the Black-Scholes valuation model. Equity and liability awards generally vest over a term of three or five years. |
Treasury Stock | Treasury Stock The Company accounts for treasury stock under the cost method. When shares are reissued or retired from treasury stock they are accounted for at an average price. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of Additional paid-in-capital in the Company’s Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a reduction of Additional paid-in-capital to the extent that there are treasury stock gains to offset the losses. If there are no treasury stock gains in Additional paid-in-capital, the losses upon re-issuance of treasury stock are recorded as a reduction of Retained earnings in the Company’s Consolidated Balance Sheets. |
Income Taxes | Income Taxes The Company is subject to income taxes in the U.S. and various foreign jurisdictions. The Company accounts for income taxes under the asset and liability method. Therefore, income tax expense is based on reported (Loss) income before income taxes, and deferred income taxes reflect the effect of temporary differences between the carrying amounts of assets and liabilities that are recognized for financial reporting purposes and the carrying amounts that are recognized for income tax purposes. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized based on currently available evidence. The Company considers how to recognize, measure, present and disclose in financial statements uncertain tax positions taken or expected to be taken on a tax return. The Company is subject to tax audits in various jurisdictions. The Company regularly assesses the likely outcomes of such audits in order to determine the appropriateness of liabilities for unrecognized tax benefits (“UTBs”). The Company classifies interest and penalties related to UTBs as a component of the provision for income taxes. For UTBs, the Company first determines whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority. As the determination of liabilities related to UTBs and associated interest and penalties requires significant estimates to be made by the Company, there can be no assurance that the Company will accurately predict the outcomes of these audits, and thus the eventual outcomes could have a material impact on the Company’s operating results or financial condition and cash flows. As a result of the 2017 Tax Act changing the U.S. to a modified territorial tax system, the Company no longer asserts that any of its undistributed foreign earnings are permanently reinvested. The Company does not expect to incur significant withholding or state taxes on future distributions. To the extent there remains a basis difference between the financial reporting and tax basis of an investment in a foreign subsidiary after the repatriation of the previously taxed income, the Company is permanently reinvested. A determination of the unrecognized deferred taxes related to these components is not practicable. The Tax Act requires a U.S. shareholder of a foreign corporation to include in income its global intangible low-taxed income (“GILTI”). In general, GILTI is described as the excess of a U.S. shareholder’s total net foreign income over a deemed return on tangible assets. An entity may choose to recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or an entity can elect to treat GILTI as a period cost and include it in the tax expense of the year it is incurred. As such, the Company has elected to treat the tax on GILTI as a tax expense in the year it is incurred rather than recognizing deferred taxes. |
Restructuring Costs | Restructuring Costs Charges incurred in connection with plans to restructure and integrate acquired businesses or in connection with cost-reduction initiatives that are initiated from time to time are included in Restructuring costs in the Consolidated Statements of Operations if such costs are directly associated with an exit or disposal activity, a reorganization, or with integrating an acquired business. These costs can include employee separations, contract and lease terminations, and other direct exit costs. Employee severance and other termination benefits are primarily determined based on established benefit arrangements, local statutory requirements or historical practices. The Company recognizes these benefits when payment is probable and estimable. Other business realignment costs represent the incremental cost directly related to the restructuring activities which can include accelerated depreciation, professional or consulting fees and other internal costs including compensation related costs for dedicated internal resources. Other business realignment costs are generally recorded in Selling, general and administrative expenses in the Consolidated Statements of Operations. |
Fair Value Measurements | Fair Value Measurements The following fair value hierarchy is used in selecting inputs for those assets and liabilities measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The Company evaluates these inputs and recognizes transfers between levels, if any, at the end of each reporting period. The hierarchy consists of three levels: Level 1 - Valuation based on quoted market prices in active markets for identical assets or liabilities; Level 2 - Valuation based on inputs other than Level 1 inputs that are observable for the assets or liabilities either directly or indirectly; Level 3 - Valuation based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and supported by little or no observable market activity. Apart from Coty’s equity investment in Wella (see Note 12—Equity Investments), the Company has not elected the fair value measurement option for any financial instruments or other assets not required to be measured at fair value on a recurring basis. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities All derivatives are recognized as assets or liabilities and measured at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For derivative instruments designated as cash flow hedges under FASB ASC Topic 815, "Derivatives and Hedging" ("ASC 815"), the change in fair value of the derivative is initially recorded in Accumulated other comprehensive (loss) income in the Consolidated Balance Sheets and is subsequently recognized in earnings when the hedged exposure impacts earnings. For derivative instruments that are not designated as hedges, gains (losses) from changes in fair values are recognized in Net income (loss). The Company does not enter into derivatives for trading or speculative purposes. Foreign Exchange Risk The Company is exposed to foreign currency exchange fluctuations through its global operations. The Company reduces its exposure to fluctuations in foreign exchange rates by creating offsetting positions through the use of derivative instruments, including forward foreign exchange contracts and 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. 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. In September 2020, the Company terminated these net investment cross currency swap derivatives in exchange for cash payment of $37.6. The related loss from this termination is included in AOCI/(L) until the sale or substantial liquidation of the underlying investments. As of June 30, 2024 and 2023, the notional amounts of the outstanding forward foreign exchange contracts designated as cash flow hedges were $22.3 and $28.0, respectively. The Company also uses certain derivatives not designated as hedging instruments consisting primarily of foreign currency forward contracts and cross currency swaps to hedge intercompany transactions and foreign currency denominated external debt. Although these derivatives were not designated for hedge accounting, the overall objective of mitigating foreign currency exposure is the same for all derivative instruments. For derivatives not designated as hedging instruments, changes in fair value are recorded in the line item in the Consolidated Statements of Operations to which the derivative relates. As of June 30, 2024 and 2023, the notional amounts of these outstanding non-designated foreign currency forward and cross currency forward contracts were $1,797.6 and $1,653.5, respectively. Interest Rate Risk The Company is exposed to interest rate fluctuations related to its variable rate debt instruments. The Company reduces its exposure to fluctuations in the cash flows associated with changes in the variable interest rates by entering into offsetting positions through the use of derivative instruments, such as interest rate swap contracts. The interest rate swap contracts result in recognizing a fixed interest rate for the portion of the Company’s variable rate debt that was hedged. This will reduce the negative impact of increases in the variable rates over the term of the contracts. Hedge effectiveness of interest rate swap contracts is based on a long-haul hypothetical derivative methodology and includes all changes in value. Net Investment Hedge Foreign currency gains and losses on borrowings designated as a net investment hedge, except ineffective portions, are reported in the cumulative translation adjustment (“CTA”) component of AOCI/(L), along with the foreign currency translation adjustments on those investments. As of June 30, 2024 and 2023, the nominal exposures of foreign currency denominated borrowings designated as net investment hedges were €1,611.6 million and €701.3 million, respectively. The designated hedge amounts were considered highly effective. Forward Repurchase Contracts In June 2022, December 2022, and November 2023, the Company entered into certain forward repurchase contracts to start hedging for potential $200.0, $196.0, and $294.0 share buyback programs, in 2024, 2025, and 2026, respectively. These forward repurchase contracts are accounted for at fair value, with changes in the fair value recorded in Other expense (income), net in the Consolidated Statements of Operations. |
Foreign Currency | Foreign Currency Exchange gains or losses incurred on non-financing foreign exchange currency transactions conducted by one of the Company’s operations in a currency other than the operation’s functional currency are reflected in Cost of sales or operating expenses. Net (losses)/gains of $(18.1), $(32.3) and $3.3 in fiscal 2024, 2023 and 2022, respectively resulting from non-financing foreign exchange currency transactions are included in the Consolidated Statements of Operations. Assets and liabilities of foreign operations are translated into U.S. dollars at the rates of exchange in effect at the end of the reporting period. Income and expense items are translated at the average exchange rates prevailing during each reporting period presented. Translation gains or losses are reported as cumulative adjustments in Accumulated other comprehensive income (loss) (“AOCI/(L)”). |
Recently Adopted Accounting Pronouncements and Recently Issued and Not Yet Adopted Accounting Pronouncements | Recently Issued and Not Yet Adopted Accounting Pronouncements Accounting Standard Update(s) Topic Effective Period Summary 2023-09 Income Taxes (Topic 740) - Improvements to Income Tax Disclosures Fiscal 2026 The FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates, as well as additional disaggregation of taxes paid. The amendments in the ASU also remove disclosures related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 is effective for the Company in fiscal 2026. The amendments may be applied prospectively or retrospectively, and early adoption is permitted. The Company will adopt the standard and make the additional required disclosures beginning in the first quarter of fiscal 2026. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures Fiscal 2025 The FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity discloses, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker ("CODM"), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. Annual disclosures are required for the Company in fiscal 2025. Interim disclosures are required for periods within fiscal years beginning in the first quarter of fiscal 2026. Retrospective application is required for all prior periods presented, and early adoption is permitted. The Company will adopt the standard and make the additional required disclosures beginning in the fourth quarter of fiscal 2025. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment, net | Depreciation and amortization are computed principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives Buildings 20-40 years Marketing furniture and fixtures 3-5 years Machinery and equipment 2-15 years Computer equipment and software 2-5 years Property and equipment under finance leases and leasehold improvements Lesser of lease term or economic life Property and equipment, net as of June 30, 2024 and 2023 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 428.6 $ 432.1 Machinery and equipment 694.0 676.4 Marketing furniture and fixtures 568.4 531.8 Computer equipment and software 776.0 751.5 Construction in progress 110.0 81.6 Property and equipment, gross 2,577.0 2,473.4 Accumulated depreciation and amortization (1,858.1) (1,760.5) Property and equipment, net $ 718.9 $ 712.9 |
Schedule of finite-lived intangible assets | Intangible assets with finite lives are amortized principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives License agreements 2-34 years Customer relationships 2-28 years Trademarks 2-30 years Product formulations and technology 2-28 years June 30, June 30, Indefinite-lived other intangible assets $ 944.6 $ 950.8 Finite-lived other intangible assets, net 2,621.0 2,847.2 Total Other intangible assets, net $ 3,565.6 $ 3,798.0 Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2023 License and collaboration agreements $ 3,756.2 $ (1,282.6) $ (19.6) $ 2,454.0 Customer relationships 750.6 (505.9) (5.5) 239.2 Trademarks 313.0 (180.6) (0.5) 131.9 Product formulations and technology 85.6 (63.5) — 22.1 Total $ 4,905.4 $ (2,032.6) $ (25.6) $ 2,847.2 June 30, 2024 License and collaboration agreements $ 3,715.1 $ (1,422.5) $ (19.6) $ 2,273.0 Customer relationships 741.8 (527.8) (5.5) 208.5 Trademarks 311.7 (192.4) (0.5) 118.8 Product formulations and technology 83.7 (63.0) — 20.7 Total $ 4,852.3 $ (2,205.7) $ (25.6) $ 2,621.0 |
Schedule of recently issued and not yet adopted accounting pronouncements | Recently Issued and Not Yet Adopted Accounting Pronouncements Accounting Standard Update(s) Topic Effective Period Summary 2023-09 Income Taxes (Topic 740) - Improvements to Income Tax Disclosures Fiscal 2026 The FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates, as well as additional disaggregation of taxes paid. The amendments in the ASU also remove disclosures related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 is effective for the Company in fiscal 2026. The amendments may be applied prospectively or retrospectively, and early adoption is permitted. The Company will adopt the standard and make the additional required disclosures beginning in the first quarter of fiscal 2026. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures Fiscal 2025 The FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity discloses, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker ("CODM"), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. Annual disclosures are required for the Company in fiscal 2025. Interim disclosures are required for periods within fiscal years beginning in the first quarter of fiscal 2026. Retrospective application is required for all prior periods presented, and early adoption is permitted. The Company will adopt the standard and make the additional required disclosures beginning in the fourth quarter of fiscal 2025. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of reportable segments | Year Ended June 30, SEGMENT DATA 2024 2023 2022 Net revenues: Prestige $ 3,857.3 $ 3,420.5 $ 3,267.9 Consumer Beauty 2,260.7 2,133.6 2,036.5 Total $ 6,118.0 $ 5,554.1 $ 5,304.4 Depreciation and amortization: Prestige $ 258.9 $ 262.4 $ 313.4 Consumer Beauty 162.2 164.3 203.0 Total $ 421.1 $ 426.7 $ 516.4 Operating income (loss) from continuing operations Prestige $ 580.7 $ 483.7 $ 367.2 Consumer Beauty 89.3 63.3 9.5 Corporate (123.3) (3.3) (135.8) Total $ 546.7 $ 543.7 $ 240.9 Reconciliation: Operating income from continuing operations $ 546.7 $ 543.7 $ 240.9 Interest expense, net 252.0 257.9 224.0 Other expense (income), net 90.2 (419.0) (409.9) Income from continuing operations before income taxes $ 204.5 $ 704.8 $ 426.8 |
Schedule of long-lived assets by geographical areas | As of June 30, Long-lived assets: 2024 2023 U.S. $ 3,477.7 $ 3,597.3 Netherlands 3,066.3 3,367.5 Brazil 441.9 495.0 All other 1,204.3 1,039.0 Total $ 8,190.2 $ 8,498.8 |
Schedule of product categories exceeding 5% of consolidated net revenues | Presented below are the net revenues associated with Company’s product categories as a percentage of total net revenues for continuing operations: Year Ended June 30, PRODUCT CATEGORY 2024 2023 2022 Fragrances 61.3 % 59.4 % 58.9 % Color Cosmetics 26.4 % 27.9 % 28.7 % Body Care, Skin & Other 12.3 % 12.7 % 12.4 % Total 100.0 % 100.0 % 100.0 % |
RESTRUCTURING COSTS (Tables)
RESTRUCTURING COSTS (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring costs | Restructuring costs for the fiscal years ended June 30, 2024, 2023 and 2022 are presented below: Year Ended June 30, 2024 2023 2022 Transformation Plan $ (1.2) $ (6.5) $ (6.5) Current Restructuring Actions 37.9 — — Total $ 36.7 $ (6.5) $ (6.5) The following table presents aggregate restructuring charges for the program: Severance and Employee Benefits Fixed Asset Write-offs Other Exit Costs Total Fiscal 2020 $ 151.2 $ (1.1) $ 6.5 $ 156.6 Fiscal 2021 $ 73.4 $ (0.5) $ 0.3 $ 73.2 Fiscal 2022 (6.2) — (0.3) $ (6.5) Fiscal 2023 (6.5) — — (6.5) Fiscal 2024 (2.5) — — (2.5) Cumulative through June 30, 2024 209.4 (1.6) 6.5 214.3 |
Schedule of restructuring liability | The related liability balance and activity of restructuring costs for the Transformation Plan are presented below: Severance and Total Balance—July 1, 2023 $ 10.0 $ 10.0 Restructuring charges 0.2 0.2 Payments (3.0) (3.0) Changes in estimates and reclassification (a) (2.7) (2.7) Effect of exchange rates 0.2 0.2 Balance—June 30, 2024 $ 4.7 $ 4.7 (a) Including certain reclassification to Current Restructuring Actions. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories as of June 30, 2024 and 2023 are presented below: June 30, June 30, Raw materials $ 201.2 $ 224.1 Work-in-process 10.4 15.6 Finished goods 552.5 613.7 Total inventories $ 764.1 $ 853.4 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets as of June 30, 2024 and 2023 are presented below: June 30, June 30, Due from related party $ 40.0 $ 70.6 Value added tax, sales and other non-income tax assets 99.4 60.2 Expected income tax refunds, credits and prepaid income taxes 101.4 102.4 Prepaid marketing, copyright and agency fees 94.4 88.7 Non-trade receivables 21.4 18.4 Prepaid rent, leases, maintenance and insurance 18.8 17.5 Interest rate swap asset — 2.8 Forward Repurchase Contracts Asset 29.1 137.6 Other 32.7 55.4 Total prepaid expenses and other current assets $ 437.2 $ 553.6 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | Depreciation and amortization are computed principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives Buildings 20-40 years Marketing furniture and fixtures 3-5 years Machinery and equipment 2-15 years Computer equipment and software 2-5 years Property and equipment under finance leases and leasehold improvements Lesser of lease term or economic life Property and equipment, net as of June 30, 2024 and 2023 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 428.6 $ 432.1 Machinery and equipment 694.0 676.4 Marketing furniture and fixtures 568.4 531.8 Computer equipment and software 776.0 751.5 Construction in progress 110.0 81.6 Property and equipment, gross 2,577.0 2,473.4 Accumulated depreciation and amortization (1,858.1) (1,760.5) Property and equipment, net $ 718.9 $ 712.9 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Goodwill as of June 30, 2024, 2023 and 2022 is presented below: Prestige Consumer Beauty Total Gross balance at June 30, 2022 $ 6,220.7 $ 1,734.1 $ 7,954.8 Accumulated impairments (3,110.3) (929.8) (4,040.1) Net balance at June 30, 2022 $ 3,110.4 $ 804.3 $ 3,914.7 Changes during the year ended June 30, 2023 Foreign currency translation 58.5 14.7 73.2 Gross balance at June 30, 2023 $ 6,279.2 $ 1,748.8 $ 8,028.0 Accumulated impairments (3,110.3) (929.8) (4,040.1) Net balance at June 30, 2023 $ 3,168.9 $ 819.0 $ 3,987.9 Changes during the year ended June 30, 2024 Foreign currency translation (64.6) (17.6) (82.2) Gross balance at June 30, 2024 $ 6,214.6 $ 1,731.2 $ 7,945.8 Accumulated impairments (3,110.3) (929.8) (4,040.1) Net balance at June 30, 2024 $ 3,104.3 $ 801.4 $ 3,905.7 |
Schedule of indefinite-lived intangible assets | Other intangible assets, net as of June 30, 2024 and 2023 are presented below: June 30, June 30, Indefinite-lived other intangible assets $ 944.6 $ 950.8 Finite-lived other intangible assets, net 2,621.0 2,847.2 Total Other intangible assets, net $ 3,565.6 $ 3,798.0 The changes in the carrying amount of indefinite-lived other intangible assets are presented below: Trademarks Total Gross balance at June 30, 2022 $ 1,881.5 $ 1,881.5 Accumulated impairments (944.9) (944.9) Net balance at June 30, 2022 $ 936.6 $ 936.6 Changes during the year ended June 30, 2023 Foreign currency translation 14.2 14.2 Gross balance at June 30, 2023 $ 1,895.7 $ 1,895.7 Accumulated impairments (944.9) (944.9) Net balance at June 30, 2023 $ 950.8 $ 950.8 Changes during the year ended June 30, 2024 Foreign currency translation (6.2) (6.2) Gross balance at June 30, 2024 $ 1,889.5 $ 1,889.5 Accumulated impairments $ (944.9) $ (944.9) Net balance at June 30, 2024 944.6 944.6 |
Schedule of finite-lived intangible assets | Intangible assets with finite lives are amortized principally using the straight-line method over the following estimated useful lives: Description Estimated Useful Lives License agreements 2-34 years Customer relationships 2-28 years Trademarks 2-30 years Product formulations and technology 2-28 years June 30, June 30, Indefinite-lived other intangible assets $ 944.6 $ 950.8 Finite-lived other intangible assets, net 2,621.0 2,847.2 Total Other intangible assets, net $ 3,565.6 $ 3,798.0 Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2023 License and collaboration agreements $ 3,756.2 $ (1,282.6) $ (19.6) $ 2,454.0 Customer relationships 750.6 (505.9) (5.5) 239.2 Trademarks 313.0 (180.6) (0.5) 131.9 Product formulations and technology 85.6 (63.5) — 22.1 Total $ 4,905.4 $ (2,032.6) $ (25.6) $ 2,847.2 June 30, 2024 License and collaboration agreements $ 3,715.1 $ (1,422.5) $ (19.6) $ 2,273.0 Customer relationships 741.8 (527.8) (5.5) 208.5 Trademarks 311.7 (192.4) (0.5) 118.8 Product formulations and technology 83.7 (63.0) — 20.7 Total $ 4,852.3 $ (2,205.7) $ (25.6) $ 2,621.0 |
Schedule of finite-lived intangible assets weighted average remaining lives | Intangible assets subject to amortization are amortized principally using the straight-line method and have the following weighted-average remaining lives: Description License and collaboration agreements 19.4 Customer relationships 15.3 Trademarks 14.4 Product formulations and technology 20.3 |
Schedule of finite-lived intangible assets, future amortization expense | The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below: 2025 $ 189.0 2026 158.0 2027 148.5 2028 145.0 2029 142.8 |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of equity investments | The Company's equity investments, classified as Equity investments on the Consolidated Balance Sheets, as of June 30, 2024 are represented by the following: June 30, June 30, Equity method investments: KKW Holdings (a) $ 5.6 $ 8.9 Equity investments at fair value: Wella (b) 1,085.0 1,060.0 Total equity investments $ 1,090.6 $ 1,068.9 (a) On January 4, 2021, the Company completed its purchase of 20% of the outstanding equity of KKW Holdings. During the years ended 2024, 2023 and 2022, the Company recognized $3.3, $3.7 and $3.6, respectively, representing its share of the investee’s net loss and the amortization of basis differences in Other expense (income), net within the Consolidated Statements of Operations. (b) As of June 30, 2024 and 2023, the Company's stake in Wella was 25.84% and 25.85%, respectively. The following table presents summarized financial information of the Company’s equity method investees for the years ended June 30, 2024 and 2023. Amounts presented represent combined totals at the investee level and not the Company’s proportionate share: Summarized Statements of Operations information: Year Ended Year Ended Net revenues $ 2,590.1 $ 2,477.7 Gross profit 1,732.8 1,616.2 Operating income 42.7 163.6 Loss before income taxes (176.4) (33.6) Net loss (133.8) (76.2) Summarized Balance Sheets information: June 30, June 30, Current assets $ 1,080.4 $ 1,093.4 Noncurrent assets 4,322.3 4,554.5 Total assets 5,402.7 5,647.9 Current liabilities 967.3 1,038.9 Noncurrent liabilities 2,687.6 2,708.5 Total liabilities 3,654.9 3,747.4 |
Schedule of movement in equity investments | The following table summarizes movements in equity investments with fair value option that are classified within Level 3 for the period ended June 30, 2024. There were no internal movements to or from Level 3 from Level 1 or Level 2 for the period ended June 30, 2024. Equity investments at fair value: Balance as of June 30, 2023 $ 1,060.0 Total gains/(losses) included in earnings 25.0 Balance as of June 30, 2024 $ 1,085.0 |
Schedule of significant unobservable inputs used in level 3 valuation | The following table summarizes the significant unobservable inputs used in Level 3 valuation of the Company’s investments carried at fair value as of June 30, 2024. Included in the table are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments. Fair value Valuation Technique Unobservable input Range Equity investments at fair value $ 1,085.0 Discounted cash flows Discount rate 9.75% (a) Growth rate 1.8% - 11.0% (a) Market multiple Revenue multiple 2.0x-2.2x (b) EBITDA multiple 10.2x – 11.8x (b) (a) The primary unobservable inputs used in the fair value measurement of the Company’s equity investments with fair value option, when using a discounted cash flow method, are the discount rate and revenue growth rate. Significant increases (decreases) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement. The Company estimates the discount rate based on the investees' projected cost of equity and debt. The revenue growth rate is forecasted for future years by the investee based on their best estimates. Significant increases (decreases) in the revenue growth rate in isolation would result in a significantly higher (lower) fair value measurement. (b) The primary unobservable inputs used in the fair value measurement of the Company’s equity investments with fair value option, when using a market multiple method, are the revenue multiple and EBITDA multiple. Significant increases (decreases) in the revenue multiple or EBITDA multiple in isolation would result in a significantly higher (lower) fair value measurement. The market multiples are derived from a group of guideline public companies. |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities as of June 30, 2024 and 2023 consist of the following: June 30, June 30, Advertising, marketing and licensing $ 331.4 $ 338.4 Customer returns, discounts, allowances and bonuses 220.4 261.5 Compensation and other compensation related benefits 188.7 171.1 Value added, sales and other non-income taxes 99.1 71.5 Derivative liability for foreign currency 16.3 4.3 Restructuring costs 29.6 8.9 Interest 70.5 47.0 Auditing, consulting, legal and litigation accruals 27.1 25.2 Deferred income 7.5 6.9 Factoring - due to counterparty 6.6 23.0 Unfavorable contract liability 10.3 10.5 Due to related party — 8.3 Cross currency swap liability — 0.5 Other 59.8 64.9 Total accrued expenses and other current liabilities $ 1,067.3 $ 1,042.0 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of debt | June 30, June 30, Short-term debt $ — $ — Senior Secured Notes 2026 Dollar Senior Secured Notes due April 2026 650.0 900.0 2026 Euro Senior Secured Notes due April 2026 748.1 761.0 2027 Euro Senior Secured Notes due May 2027 534.3 — 2028 Euro Senior Secured Notes due September 2028 534.3 — 2029 Dollar Senior Secured Notes due January 2029 500.0 500.0 2030 Dollar Senior Secured Notes due July 2030 750.0 — 2018 Coty Credit Agreement 2023 Coty Revolving Credit Facility due July 2028 — — 2021 Coty Revolving Credit Facility due April 2025 — 228.9 2018 Coty Term B Facility due April 2025 — 1,183.7 Senior Unsecured Notes 2026 Dollar Notes due April 2026 — 473.0 2026 Euro Notes due April 2026 192.7 196.0 Brazilian Credit Facility — 31.9 Finance lease obligations 4.3 7.1 Total debt 3,913.7 4,281.6 Less: Short-term debt and current portion of long-term debt (3.0) (57.9) Total Long-term debt 3,910.7 4,223.7 Less: Unamortized financing fees and discounts on long-term debt (68.9) (45.5) Total Long-term debt, net $ 3,841.8 $ 4,178.2 |
Schedule of long term debt facilities | The Company’s long-term debt facilities consisted of the following as of June 30, 2024 and 2023: Facility Maturity Date Borrowing Capacity (in millions) as of June 30, 2024 Interest Rate Terms Applicable Interest Rate Spread as of June 30, 2024 Debt Discount Repayment Schedule Fiscal 2024 and 2023 2027 Euro Senior Secured Notes May 2027 €500.0 4.50% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2024 4.50% N/A (b) Payable in full at maturity date 2028 Euro Senior Secured Notes September 2028 €500.0 5.75% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2024 5.75% N/A (b) Payable in full at maturity date 2030 Dollar Senior Secured Notes July 2030 $750.0 6.625% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2024 6.625% N/A (b) Payable in full at maturity date 2023 Coty Revolving Credit Facility (f) (g) July 2028 $1,670.0 and €300.0 SOFR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company's total net leverage ratio (c) (d) (e) 1.50% N/A (b) Payable in full at maturity date 2029 Dollar Senior Secured Notes January 2029 $500.0 4.75% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2022 4.75% N/A (b) Payable in full at maturity date 2021 Coty Revolving Credit Facility (f) (g) April 2025 $— SOFR (a) plus a margin ranging from 1.00% to 2.00% per annum or a base rate plus a margin ranging from 0.00% to 1.00% per annum, based on the Company’s total net leverage ratio (c) (d) (e) 1.75% N/A (b) Replaced by 2023 Coty Revolving Credit Facility Brazilian Credit Facilities - October 2023 October 2023 $— 3.48% per annum, payable quarterly in arrears beginning on July 5, 2022 3.48% N/A (b) Repaid in full 2026 Dollar Senior Secured Notes April 2026 $650.0 5.0% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2021 5.00% N/A (b) Payable in full at maturity date 2026 Euro Senior Secured Notes April 2026 €700.0 3.875% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2021 3.875% N/A (b) 2018 Coty Term B Facility - USD Portion (g) April 2025 $— SOFR (a) plus a margin of 2.25% per annum or a base rate plus a margin of 1.25% per annum (d) 2.25% 0.25% Quarterly repayments beginning September 30, 2018 at 0.25% of original principal amount 2018 Coty Term B Facility - EUR Portion (g) April 2025 €— SOFR (a) plus a margin of 2.50% per annum (d) 2.50% 0.25% 2026 Dollar April 2026 $— 6.5% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018 N/A (b) N/A (b) Payable in full at maturity date 2026 Euro April 2026 €180.3 4.75% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018 N/A (b) N/A (b) (a) As defined in the Interest section below. (b) N/A - Not Applicable. (c) As defined per the 2018 Coty Credit Agreement, as amended. (d) The selection of the applicable one, two, three, six or twelve month interest rate for the period is at the discretion of the Company. (e) The Company will pay to the Revolving Credit Facility lenders an unused commitment fee calculated at a rate ranging from 0.10% to 0.35% per annum, based on the Company’s total net leverage ratio (d) . As of June 30, 2024 and 2023, the applicable rate on the unused commitment fee was 0.25% and 0.25%, respectively. (f) As a result of the amendments entered into in fiscal 2024, the 2021 Coty Revolving Credit Facility was refinanced and replaced by the 2023 Coty Revolving Credit Facility due July 11, 2028 (as described below). (g) Except as described below in amendments to the 2018 Coty Credit Agreement, as amended (as defined below), original terms of the 2018 Coty Credit Agreement apply to these debt facilities. |
Schedule of debt instrument redemption | At any time on or after the Early Redemption Dates, the Company may redeem some or all of the respective notes at the redemption prices (expressed in percentage of principal amount) set forth below, plus accrued and unpaid interest, if any, to, but excluding, the redemption dates, if redeemed during the twelve-month period beginning on respective dates of each of the years indicated below: Price For the period beginning 2026 Dollar Senior Secured Notes 2026 Euro Senior Secured Notes 2027 Euro Senior Secured Notes 2028 Euro Senior Secured Notes 2029 Dollar Senior Secured Notes 2030 Dollar Senior Secured Notes Year April 15, May 15, November 15, September 15 January 15, July 15, 2025 100.000% 100.000% N/A N/A 102.875% 102.375% N/A 2026 N/A N/A 102.250% 100.000% 101.438% 101.188% 103.313% 2027 N/A N/A 100.000% N/A 100.000% 100.000% 101.656% 2028 and thereafter N/A N/A N/A N/A 100.000% 100.000% 100.000% As of June 30, 2024, the Company may at any time redeem some or all of the 2026 Euro Notes, at the redemption prices (expressed in percentage of principal amount) set forth below, plus accrued and unpaid interest, if any, to, but excluding, the redemption dates, if redeemed during the twelve-month period beginning on April 15 of each of the years indicated below: Price Year 2026 Euro Notes 2025 and thereafter 100.0000% |
Schedule of leverage-based pricing | In the case of the 2023 Coty Revolving Credit 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: SOFR 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 SOFR 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% Quarterly Test Period Ending Total Net Leverage Ratio (a) June 30, 2024 through July 11, 2028 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 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, unusual events such as COVID-19, operating expense reductions and future unrealized synergies subject to certain limits and conditions as specified in the 2018 Coty Credit Agreement, as amended. |
Schedule of fair value of debt | June 30, 2024 June 30, 2023 Carrying Fair Carrying Fair Senior Secured Notes $ 3,716.7 $ 3,719.7 $ 2,161.0 $ 2,066.9 2018 Coty Credit Agreement — — 1,412.6 1,393.5 Senior Unsecured Notes 192.7 192.8 669.0 661.5 Brazilian Credit Facility — — 31.9 32.2 |
Schedule of aggregate 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 June 30, 2024, are presented below: Fiscal Year Ending June 30, 2025 $ — 2026 1,590.8 2027 534.3 2028 — 2029 1,034.3 Thereafter 750.0 Total $ 3,909.4 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of lease cost | The following table provides additional information about the Company’s operating leases for the fiscal years ended June 30, 2024, 2023 and 2022. Lease Cost: Year Ended Year Ended Year Ended Operating lease cost $ 74.5 $ 76.2 $ 90.4 Short-term lease cost 3.4 0.9 1.2 Variable lease cost 41.7 40.3 39.3 Sublease income (16.7) (15.8) (20.0) Net lease cost $ 102.9 $ 101.6 $ 110.9 Other information: Operating cash outflows from operating leases (72.0) (73.8) $ (83.8) Right-of-use assets obtained in exchange for lease obligations 32.6 25.7 $ 104.9 Weighted-average remaining lease term - real estate 6.8 years 7.2 years 7.6 years Weighted-average discount rate - real estate leases 4.52 % 4.13 % 3.85 % |
Schedule of future minimum lease payments for operating leases | Future minimum lease payments for the Company’s operating leases as of June 30, 2024 are as follows: Fiscal Year Ending June 30, 2025 $ 68.1 2026 56.0 2027 49.2 2028 37.2 2029 33.2 Thereafter 81.3 Total future lease payments 325.0 Less: imputed interest (48.5) Total present value of lease liabilities $ 276.5 Current operating lease liabilities 57.8 Long-term operating lease liabilities 218.7 Total operating lease liabilities $ 276.5 Table excludes obligations for leases with original terms of twelve months or less which have not been recognized as ROU assets or liabilities in the Consolidated Balance Sheets. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax | Income from continuing operations before income taxes in fiscal 2024, 2023 and 2022 is presented below: Year Ended June 30, 2024 2023 2022 United States $ (591.1) $ (253.6) $ (277.5) Foreign 795.6 958.4 704.3 Total $ 204.5 $ 704.8 $ 426.8 |
Schedule of components of income tax expense (benefit) | The components of the Company’s total provision (benefit) for income taxes from continuing operations during fiscal 2024, 2023 and 2022 are presented below: Year Ended June 30, 2024 2023 2022 Provision for income taxes on continuing operations: Current: Federal $ 1.2 $ 2.6 $ 6.6 State and local (3.5) 2.6 (6.0) Foreign 107.2 120.1 152.1 Total 104.9 125.3 152.7 Deferred: Federal (36.7) (61.1) (2.7) State and local (16.7) 1.0 (12.8) Foreign 43.6 116.4 27.6 Total (9.8) 56.3 12.1 Provision for income taxes on continuing operations $ 95.1 $ 181.6 $ 164.8 |
Schedule of effective income tax rate reconciliation | The reconciliation of the U.S. Federal statutory tax rate to the Company’s effective income tax rate during fiscal 2024, 2023 and 2022 is presented below: Year Ended June 30, 2024 2023 2022 Income (loss) from continuing operations before income taxes $ 204.5 $ 704.8 $ 426.8 Provision for income taxes at statutory rate $ 42.9 $ 148.0 $ 89.6 State and local taxes—net of federal benefit (15.9) 2.8 (14.9) Foreign tax differentials 20.9 (10.1) (16.4) Change in valuation allowances 38.9 10.2 (2.3) Change in unrecognized tax benefit (15.5) 32.5 (10.6) Permanent differences—net 7.6 (4.9) 25.4 Non-deductible executive stock compensation 19.7 27.7 37.1 Currency Loss (22.5) (13.6) (0.2) Dispositions of business assets — — 12.7 Russia exit — (7.0) 24.1 Principal relocation revaluation 27.6 — — Nondeductible Interest Expense 12.1 — — Swiss Tax Credits-net of valuation allowance (37.8) — — Tax Rate Change Deferred Tax Liability Revaluation 24.2 — — Other (7.1) (4.0) 20.3 Provision for income taxes on continuing operations $ 95.1 $ 181.6 $ 164.8 Effective income tax rate 46.5 % 25.8 % 38.6 % |
Schedule of deferred tax assets and liabilities | Significant components of deferred income tax assets and liabilities as of June 30, 2024 and 2023 are presented below: June 30, June 30, Deferred income tax assets: Inventories $ 7.0 $ 7.5 Accruals and allowances 62.1 54.9 Sales returns 15.2 19.1 Share-based compensation 5.3 4.8 Employee benefits 55.7 55.6 Net operating loss carry forwards and tax credits 308.6 241.4 Capital loss carry forwards 0.2 0.3 Interest expense limitation carry forward 102.8 47.5 Lease liability 26.0 28.6 Principal relocation lease 337.7 424.0 Property, plant and equipment 21.1 13.0 Other 58.5 48.4 Less: valuation allowances (151.4) (60.7) Net deferred income tax assets 848.8 884.4 Deferred income tax liabilities: Intangible assets 772.4 817.4 Licensing rights 30.2 27.8 Right of use asset 26.3 28.6 Investment in partnerships 61.1 55.2 Other 17.9 25.3 Deferred income tax liabilities 907.9 954.3 Net deferred income tax (liability) asset $ (59.1) $ (69.9) |
Schedule of expirations of tax loss carryforwards | The expirations of tax loss carry forwards, amounting to $482.7 as of June 30, 2024, in each of the fiscal years ending June 30, are presented below: Fiscal Year Ending June 30, United States Western Europe Rest of World Total 2025 $ — $ 0.1 $ 3.4 $ 3.5 2026 — — 8.1 8.1 2027 — 12.9 20.2 33.1 2028 — 115.9 16.6 132.5 2029 and thereafter — 57.1 248.4 305.5 Total $ — $ 186.0 $ 296.7 $ 482.7 |
Schedule of reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of UTBs is presented below: Year Ended June 30, 2024 2023 2022 UTBs—July 1 $ 235.5 $ 251.6 $ 279.9 Additions based on tax positions related to the current year 1.3 6.7 1.7 Additions for tax positions of prior years 15.8 0.7 20.8 Reductions for tax positions of prior years (19.0) (1.4) (29.4) Settlements (1.2) (4.6) (0.2) Lapses in statutes of limitations (17.8) (13.8) (14.1) Foreign currency translation 0.7 (3.7) (7.1) UTBs—June 30 $ 215.3 $ 235.5 $ 251.6 |
INTEREST EXPENSE, NET (Tables)
INTEREST EXPENSE, NET (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Interest Income (Expense), Operating [Abstract] | |
Schedule of interest expense, net | Interest expense, net for the years ended June 30, 2024, 2023 and 2022 is presented below: Year Ended June 30, 2024 2023 2022 Interest expense $ 251.6 $ 261.1 $ 241.2 Foreign exchange losses (gains), net of derivative contracts 16.5 12.2 (10.0) Interest income (16.1) (15.4) (7.2) Total interest expense, net $ 252.0 $ 257.9 $ 224.0 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of changes in projected benefit obligations, fair value of plan assets, and funded status of plan | The aggregate reconciliation of the projected benefit obligations, plan assets, funded status and amounts recognized in the Company’s Consolidated Financial Statements related to the Company’s pension plans and other post-employment benefit plans is presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2024 2023 2024 2023 2024 2023 2024 2023 Change in benefit obligation Benefit obligation—July 1 $ 13.0 $ 14.5 $ 355.6 $ 343.7 $ 36.0 $ 38.8 $ 404.6 $ 397.0 Service cost — — 5.1 4.8 0.5 0.6 5.6 5.4 Interest cost 0.7 0.7 12.8 10.9 1.5 1.7 15.0 13.3 Plan participants’ contributions — — 1.5 1.1 0.1 0.2 1.6 1.3 Benefits paid (1.3) (1.4) (15.5) (14.5) (1.8) (1.9) (18.6) (17.8) New employees transfers (out)/in — — (0.8) 1.0 — — (0.8) 1.0 Premiums paid — — (0.6) (0.5) — — (0.6) (0.5) Pension curtailment — — (0.1) (0.7) — — (0.1) (0.7) Other (a) — — — 16.2 — — — 16.2 Pension settlement — — (0.1) (4.2) — — (0.1) (4.2) Actuarial loss (gain) 0.1 (0.8) 8.5 (16.6) (4.5) (3.3) 4.1 (20.7) Effect of exchange rates — — (5.4) 14.4 (0.1) (0.1) (5.5) 14.3 Benefit obligation—June 30 $ 12.5 $ 13.0 $ 361.0 $ 355.6 $ 31.7 $ 36.0 $ 405.2 $ 404.6 Change in plan assets Fair value of plan assets—July 1 $ — $ — $ 120.9 $ 101.5 $ 0.1 $ — $ 121.0 $ 101.5 Actual return on plan assets — — 8.6 1.5 — — 8.6 1.5 Employer contributions 1.3 1.4 15.2 13.7 1.7 1.8 18.2 16.9 Plan participants’ contributions — — 1.5 1.1 0.2 0.2 1.7 1.3 Benefits paid (1.3) (1.4) (15.5) (14.5) (1.8) (1.9) (18.6) (17.8) New employees transfers (out)/in — — (0.8) 1.0 — — (0.8) 1.0 Premiums paid — — (0.6) (0.5) — — (0.6) (0.5) Plan settlements — — (0.1) (4.2) — — (0.1) (4.2) Other (a) — — — 16.2 — — — 16.2 Effect of exchange rates — — (1.2) 5.1 — — (1.2) 5.1 Fair value of plan assets—June 30 — — 128.0 120.9 0.2 0.1 128.2 121.0 Funded status—June 30 $ (12.5) $ (13.0) $ (233.0) $ (234.7) $ (31.5) $ (35.9) $ (277.0) $ (283.6) (a) In connection with the P&G Beauty business acquisition in 2016, the Company assumed certain international pension and OPEB obligations and assets (the “P&G plans”). At that time, the P&G plans had an active legal dispute that has been resolved during fiscal 2023, resulting in $16.2 of additional assets being paid to the Coty plans. The projected benefit obligation has also increased $16.2 to reflect the liability to distribute these funds to the employees who were originally in the P&G plans. We expect that most of these assets will be paid out over the next few fiscal years. |
Schedule of amounts recognized in balance sheet | With respect to the Company’s pension plans and other post-employment benefit plans, amounts recognized in the Company’s Consolidated Balance Sheets as of June 30, 2024 and 2023, are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2024 2023 2024 2023 2024 2023 2024 2023 Noncurrent assets $ — $ — $ 1.8 $ 1.4 $ — $ — $ 1.8 $ 1.4 Current liabilities (1.3) (1.3) (0.2) (0.5) (2.1) (2.5) (3.6) (4.3) Noncurrent liabilities (11.2) (11.7) (234.6) (235.6) (29.4) (33.4) (275.2) (280.7) Funded status (12.5) (13.0) (233.0) (234.7) (31.5) (35.9) (277.0) (283.6) AOC(L)/I 0.5 1.4 47.8 56.1 19.1 18.5 67.4 76.0 Net amount recognized $ (12.0) $ (11.6) $ (185.2) $ (178.6) $ (12.4) $ (17.4) $ (209.6) $ (207.6) |
Schedule of accumulated benefit obligations in excess of fair value of plan assets | Pension plans with accumulated benefit obligations in excess of plan assets and projected benefit obligations in excess of plan assets are presented below: Pension plans with accumulated benefit obligations in excess of plan assets Pension plans with projected benefit obligations in excess of plan assets U.S. International U.S. International 2024 2023 2024 2023 2024 2023 2024 2023 Projected benefit obligation $ 12.5 $ 13.0 $ 346.8 $ 342.0 $ 12.5 $ 13.0 $ 346.8 $ 342.0 Accumulated benefit obligation 12.5 13.0 338.7 333.7 12.5 13.0 338.7 333.7 Fair value of plan assets — — 112.2 106.2 — — 112.2 106.2 |
Schedule of components of net periodic benefit cost for pension plans and other post-employment plans | The components of net periodic benefit cost for pension plans and other post-employment benefit plans recognized in the Consolidated Statements of Operations are presented below: Year Ended June 30, Pension Plans Other Post- U.S. International Total 2024 2023 2022 2024 2023 2022 2024 2023 2022 2024 2023 2022 Service cost $ — $ — $ — $ 5.1 $ 4.8 $ 9.1 $ 0.5 $ 0.6 $ 0.8 $ 5.6 $ 5.4 $ 9.9 Interest cost 0.7 0.7 0.5 12.8 10.9 5.9 1.5 1.7 0.8 15.0 13.3 7.2 Expected return on plan assets — — — (4.8) (3.4) (4.5) — — — (4.8) (3.4) (4.5) Amortization of prior service (credit) cost — — — (0.1) (0.1) (0.1) (0.2) (0.2) (0.3) (0.3) (0.3) (0.4) Amortization of net (gain) loss (0.9) (2.9) 0.4 (2.4) (0.7) (0.2) (3.5) (2.4) (0.2) (6.8) (6.0) — Settlements (gain) loss recognized — — — — 0.2 1.8 — — — — 0.2 1.8 Curtailment (gain) loss recognized — — — (0.1) (0.7) (1.3) — — — (0.1) (0.7) (1.3) Net periodic benefit cost $ (0.2) $ (2.2) $ 0.9 $ 10.5 $ 11.0 $ 10.7 $ (1.7) $ (0.3) $ 1.1 $ 8.6 $ 8.5 $ 12.7 |
Schedule of amounts recognized in other comprehensive income (loss) | Pre-tax amounts recognized in AOC(L)/I, which have not yet been recognized as a component of net periodic benefit cost are presented below: Pension Plans Other Post-Employment Benefits U.S. International Total 2024 2023 2024 2023 2024 2023 2024 2023 Net actuarial (loss) gain $ 0.5 $ 1.4 $ 47.2 $ 55.3 $ 19.1 $ 18.2 $ 66.8 $ 74.9 Prior service credit (cost) — — 0.6 0.8 — 0.3 0.6 1.1 Total recognized in AOC(L)/I $ 0.5 $ 1.4 $ 47.8 $ 56.1 $ 19.1 $ 18.5 $ 67.4 $ 76.0 Changes in plan assets and benefit obligations recognized in OCI/(L) during the fiscal year are presented below: Pension Plans Other Post-Employment Benefits U.S. International Total 2024 2023 2024 2023 2024 2023 2024 2023 Net actuarial (loss) gain $ (0.1) $ 0.8 $ (4.8) $ 14.7 $ 4.5 $ 3.3 $ (0.4) $ 18.8 Amortization or curtailment recognition of prior service (credit) cost — — (0.1) (0.1) (0.2) (0.2) (0.3) (0.3) Recognized net actuarial (gain) loss (0.9) (2.9) (2.4) (0.5) (3.5) (2.4) (6.8) (5.8) Effect of exchange rates — — (0.9) 2.1 (0.1) 0.2 (1.0) 2.3 Total recognized in OCI/(L) $ (1.0) $ (2.1) $ (8.2) $ 16.2 $ 0.7 $ 0.9 $ (8.5) $ 15.0 |
Schedule of assumptions used | The weighted-average assumptions used to determine the Company’s projected benefit obligation above are presented below: Pension Plans Other Post-Employment Benefits U.S. International 2024 2023 2024 2023 2024 2023 Discount rates 5.3%-5.4% 4.9%-5.3% 1.5%-3.9% 2.0%-4.2% 3.8%-5.4% 4.1%-5.1% Future compensation growth rates N/A N/A 1.0%-3.2% 1.3%-3.2% N/A N/A The weighted-average assumptions used to determine the Company’s net periodic benefit cost in fiscal 2024, 2023 and 2022 are presented below: Pension Plans Other Post- U.S. International 2024 2023 2022 2024 2023 2022 2024 2023 2022 Discount rates 4.9%-5.3% 4.0%-4.7% 2.4%-2.6% 2.0%-4.2% 2.3%-3.4% 0.3%-1.6% 4.1%-5.1% 2.9%-4.7% 1.5%-2.8% Future compensation growth rates N/A N/A N/A 1.3%-3.2% 1.1%-3.2% 1.0%-2.5% N/A N/A N/A Expected long-term rates of return on plan assets N/A N/A N/A 3.5%-4.5% 2.7%-3.8% 1.3%-3.8% N/A N/A N/A |
Schedule of health care cost trend rates | The health care cost trend rate assumptions have a significant effect on the amounts reported. Year Ended June 30, 2024 2023 2022 Health care cost trend rate assumed for next year 8.3% 7.1% 6.7% Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.5% 4.5% 4.5% Year that the rate reaches the ultimate trend rate 2032 2030 2029 |
Schedule of allocation of plan assets | The target asset allocations for the Company’s pension plans as of June 30, 2024 and 2023, by asset category are presented below: % of Plan Assets at Year Ended Target 2024 2023 Equity securities 40% 35% 32% Fixed income securities 50% 38% 37% Cash and other investments 11% 27% 31% The international pension plan assets that the Company measures at fair value on a recurring basis, based on the fair value hierarchy as described in Note 2—Summary of Significant Accounting Policies, as of June 30, 2024 and 2023 are presented below: Level 1 Level 2 Level 3 Total 2024 2023 2024 2023 2024 2023 2024 2023 Equity securities $ 32.8 $ 32.1 $ — $ — $ — $ — $ 32.8 $ 32.1 Fixed income securities: Corporate securities 38.2 37.3 — — — — 38.2 37.3 Other: Cash and cash equivalents 0.3 0.2 — — — — 0.3 0.2 Insurance contracts and other — — — — 56.9 51.4 56.9 51.4 Total pension plan assets $ 71.3 $ 69.6 $ — $ — $ 56.9 $ 51.4 $ 128.2 $ 121.0 |
Schedule of effect of significant unobservable inputs, changes in plan assets | The reconciliations of Level 3 plan assets measured at fair value in fiscal 2024 and 2023 are presented below: June 30, June 30, Insurance contracts: Fair value—July 1 $ 51.4 $ 33.6 Return on plan assets 3.3 (0.3) Purchases, sales and settlements, net 2.4 15.5 Effect of exchange rates (0.2) 2.6 Fair value—June 30 $ 56.9 $ 51.4 |
Schedule of expected benefit payments | Expected benefit payments, which reflect expected future service, as appropriate, are presented below: Pension Plans Other Post-Employment Benefits Total Fiscal Year Ending June 30, U.S. International 2025 $ 1.3 $ 22.2 $ 2.1 $ 25.6 2026 1.3 18.8 2.3 22.4 2027 1.2 19.8 2.5 23.5 2028 1.2 19.7 2.6 23.5 2029 1.2 21.6 2.8 25.6 2030 - 2032 5.1 105.0 14.6 124.7 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of amount of gains and losses recognized in Other comprehensive income (loss) | The amount of gains and losses recognized in OCI in the Consolidated Balance Sheets related to the Company’s derivative and non-derivative financial instruments which are designated as hedging instruments is presented below: Gain (Loss) Recognized in OCI Fiscal Year Ended June 30, 2024 2023 2022 Foreign exchange forward contracts $ 2.0 $ (3.7) $ (1.0) Interest rate swap contracts (0.1) 5.4 13.9 Net investment hedges 26.8 (53.9) 36.3 |
Schedule of amount of gains and losses recognized in Other comprehensive income (loss) | The amount of gains and losses recognized in OCI in the Consolidated Balance Sheets related to the Company’s derivative and non-derivative financial instruments which are designated as hedging instruments is presented below: Gain (Loss) Recognized in OCI Fiscal Year Ended June 30, 2024 2023 2022 Foreign exchange forward contracts $ 2.0 $ (3.7) $ (1.0) Interest rate swap contracts (0.1) 5.4 13.9 Net investment hedges 26.8 (53.9) 36.3 |
Schedule of amount of gains and losses reclassified from OCI | The amount of gains and losses reclassified from AOCI/(L) to the Consolidated Statements of Operations related to the Company’s derivative financial instruments which are designated as hedging instruments is presented below: Location and Amount of Gain (Loss) Recognized in Income on Cash Flow Hedging Relationships Fiscal Year Ended June 30, 2024 2023 2022 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 reclassified from AOCI into income $ (2.6) $ — $ (1.6) $ — $ 1.7 $ — Interest rate swap contracts: Amount of loss reclassified from AOCI into income — 2.0 — 8.3 — (13.0) |
Schedule of 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: Consolidated Statements of Operations Fiscal Year Ended June 30, 2024 2023 2022 Foreign exchange contracts Selling, general and administrative expenses $ 0.1 $ (5.1) $ (0.1) Foreign exchange contracts Interest income (expense), net (30.1) (69.3) 2.7 Foreign exchange and forward repurchase contracts Other income (expense), net (124.2) 168.7 18.4 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Schedule of redeemable noncontrolling interest redemption adjustments | Middle East Subsidiary Percentage of redeemable noncontrolling interest 25% Earliest exercise date(s) December 2028 Formula of redemption value (a) 3-year average of EBIT * 6 (a) EBIT is defined in the amended shareholders’ agreement as the consolidated net earnings before interest and income tax. |
EQUITY AND CONVERTIBLE PREFER_2
EQUITY AND CONVERTIBLE PREFERRED STOCK (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive (loss) | Accumulated Other Comprehensive (Loss) Income Foreign Currency Translation Adjustments (Losses) Gains on Cash Flow Hedges (Losses) Gains on Net Investment Hedge Foreign Currency Translation Adjustments Pension and Other Post-Employment Benefit Plans Total Beginning balance at July 1, 2022 $ 4.3 $ 4.1 $ (770.8) $ 44.5 $ (717.9) Other comprehensive income (loss) before reclassifications 1.7 (53.9) 102.9 14.7 65.4 Net amounts reclassified from AOCI/(L) (a) (5.3) — — (4.6) (9.9) Net current-period other comprehensive income (loss) (3.6) (53.9) 102.9 10.1 55.5 Ending balance at June 30, 2023 $ 0.7 $ (49.8) $ (667.9) $ 54.6 $ (662.4) Other comprehensive income (loss) before reclassifications 1.2 26.8 (155.1) (0.5) (127.6) Net amounts reclassified from AOCI/(L) (a) 0.2 — — (5.3) (5.1) Net current-period other comprehensive income (loss) 1.4 26.8 (155.1) (5.8) (132.7) Ending balance at June 30, 2024 $ 2.1 $ (23.0) $ (823.0) $ 48.8 $ (795.1) (a) Amortization of actuarial gains of $7.1 and $6.1, net of taxes of $1.8 and $1.5, were reclassified out of AOCI/(L) and included in the computation of net period pension costs for the fiscal years ended June 30, 2024 and 2023, respectively (see Note 18—Employee Benefit Plans). |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of share-based compensation expense | Total share-based compensation from continuing operations is shown in the table below: 2024 2023 2022 Equity plan expense (a) $ 88.5 $ 134.7 $ 195.4 Liability plan expense 0.3 1.2 0.1 Fringe expense 3.0 1.7 2.3 Total share-based compensation expense (b) $ 91.8 $ 137.6 $ 197.8 Income tax benefits recognized in earnings related to share-based compensation $ 3.0 $ 2.2 $ 1.6 Excess tax benefits related to share-based compensation $ 1.1 $ — $ 0.2 (a) Equity plan shared-based compensation expense of $88.5, $134.7, and $195.4 was recorded to additional paid in capital and presented in the Consolidated Statement of Equity for the fiscal years ended June 30, 2024, 2023, and 2022, respectively. (b) Expenses relating to share-based awards granted to non-Coty employees (Wella) are recorded within Other expense (income), net, within the Consolidated Statement of Operations. See Note 25 -Related Party Transactions for additional information. |
Schedule of outstanding nonqualified stock option activity | The Company’s outstanding non-qualified stock options as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Weighted Aggregate Weighted Outstanding at July 1, 2023 5.1 $ 13.06 Exercised (1.2) 11.08 Forfeited (0.3) 11.79 Outstanding at June 30, 2024 3.6 $ 13.82 Vested and expected to vest at June 30, 2024 3.5 $ 13.85 $ — 3.91 Exercisable at June 30, 2024 3.3 $ 13.98 $ — 3.80 |
Schedule of nonvested nonqualified share activity | The Company’s non-vested non-qualified stock options as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Weighted Non-vested at July 1, 2023 1.0 $ 3.02 Vested (0.4) 2.93 Forfeited (0.3) 2.88 Non-vested at June 30, 2024 0.3 $ 3.41 |
Schedule of fair value valuation assumptions | The fair value of the Company’s outstanding Series A Preferred Stock were estimated with the following assumptions. 2023 2022 Expected life, in years 0.74 years 1.74 years Expected volatility 66.31% 65.57% Risk-free rate of return 5.44% 2.89% Dividend yield on Class A Common Stock —% 1.56% |
Scheduled of outstanding Series A preferred shares | The Company’s outstanding Series A Preferred Shares as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Weighted Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Outstanding at July 1, 2023 1.0 $ 22.39 Forfeited — — Outstanding at June 30, 2024 1.0 — Vested and expected to vest at June 30, 2024 — $ — $ — — Exercisable — $ — $ — — |
Schedule of outstanding RSU and restricted stock activity | The Company’s outstanding RSUs as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Aggregate Weighted Outstanding at July 1, 2023 33.9 Granted 4.4 Settled (15.1) Cancelled (1.1) Outstanding at June 30, 2024 22.1 Vested and expected to vest at June 30, 2024 19.5 $ 195.7 2.85 The Company’s outstanding PRSUs as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Aggregate Weighted Outstanding at July 1, 2023 1.2 Granted 4.0 Settled — Cancelled (0.1) Outstanding at June 30, 2024 5.1 Vested and expected to vest at June 30, 2024 4.4 43.9 2.05 |
Schedule of outstanding and non-vested RSU and restricted stock activity | The Company’s outstanding and non-vested RSUs as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Weighted Outstanding and nonvested at July 1, 2023 33.4 $ 9.38 Granted 4.4 9.79 Vested (15.4) 8.36 Cancelled (1.1) 7.59 Outstanding and nonvested at June 30, 2024 21.3 $ 9.92 The Company’s outstanding and non-vested PRSUs as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Weighted Outstanding and nonvested at July 1, 2023 1.2 $ 6.62 Granted 4.0 10.53 Vested — Cancelled (0.1) 7.86 Outstanding and nonvested at June 30, 2024 5.1 $ 9.66 |
Schedule of restricted stock activity | The Company’s outstanding restricted stock as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Aggregate Weighted Outstanding at July 1, 2023 0.7 Granted 0.3 Settled (0.5) Cancelled (0.5) Outstanding at June 30, 2024 — Vested and expected to vest at June 30, 2024 — $ — — The Company’s outstanding and non-vested restricted stock as of June 30, 2024 and activity during the fiscal year then ended are presented below: Shares Weighted Outstanding and nonvested at July 1, 2023 0.7 $ 6.94 Granted 0.3 9.63 Vested (0.5) 9.19 Cancelled (0.5) 8.09 Outstanding and nonvested at June 30, 2024 — $ — |
NET INCOME (LOSS) ATTRIBUTABL_2
NET INCOME (LOSS) ATTRIBUTABLE TO COTY INC. PER COMMON SHARE (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of numerators and denominators of basic and diluted EPS computations | Reconciliation between the numerators and denominators of the basic and diluted EPS computations is presented below: Year Ended June 30, 2024 2023 2022 Amounts attributable to Coty Inc.: Net income (loss) from continuing operations $ 89.4 $ 508.2 $ 253.8 Convertible Series B Preferred Stock dividends (13.2) (13.2) (198.3) Net income (loss) from continuing operations attributable to common stockholders 76.2 495.0 55.5 Net income (loss) from discontinued operations, net of tax — — 5.7 Net income (loss) attributable to common stockholders $ 76.2 $ 495.0 $ 61.2 Weighted-average common shares outstanding: Weighted-average common shares outstanding—Basic 874.4 849.0 820.6 Effect of dilutive stock options and Series A Preferred Stock (a) 0.1 — — Effect of restricted stock, PRSUs and RSUs (b) 8.9 13.8 13.5 Effect of Convertible Series B Preferred Stock (c) — 23.7 — Effect of Forward Repurchase Contracts (d) — — — Weighted-average common shares and common share equivalents outstanding—Diluted 883.4 886.5 834.1 Earnings (losses) per common share Earnings from continuing operations per common share - basic $ 0.09 $ 0.58 $ 0.07 Earnings (losses) from continuing operations per common share - diluted (e) $ 0.09 $ 0.57 $ 0.07 Earnings from discontinued operations - basic $ 0.00 $ 0.00 $ 0.01 Earnings from discontinued operations - diluted $ 0.00 $ 0.00 $ 0.01 Earnings (losses) per common share - basic $ 0.09 $ 0.58 $ 0.08 Earnings (losses) per common share - diluted (e) $ 0.09 $ 0.57 $ 0.08 (a) As of June 30, 2024, 2023, and 2022, outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase 2.8 million, 4.8 million, and 8.3 million weighted average anti-dilutive shares of Common Stock, respectively, were excluded from the computation of diluted EPS. (b) As of June 30, 2024, 2023, and 2022, there were 1.0 million, 3.2 million, and 1.6 million weighted average anti-dilutive RSUs, respectively, were excluded from the computation of diluted EPS. (c ) As of June 30, 2024 and 2022, there were 23.7 million and 65.4 million dilutive shares of Convertible Series B Preferred Stock, respectively, were excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. (d) For the twelve months ended June 30, 2024, potential shares for the Forward Repurchase Contracts were excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. For the twelve months ended June 30, 2023, potential shares for the Forward Repurchase Contracts were excluded from the computation of diluted EPS as Coty is in the position to receive shares from the counterparties and as such their inclusion would be anti-dilutive. (e) Diluted EPS is adjusted by the effect of dilutive securities, including awards under the Company's equity compensation plans, the convertible Series B Preferred Stock, and the Forward Repurchase Contracts. When calculating any potential dilutive effect of stock options, Series A Preferred Stock, restricted stock, PRSUs and RSUs, the Company uses the treasury method and the if-converted method for the Convertible Series B Preferred Stock and the Forward Repurchase Contracts. The treasury method typically does not adjust the net income attributable to Coty Inc., while the if-converted method requires an adjustment to reverse the impact of the preferred stock dividends of $13.2, $13.2, and $198.3, respectively, and to reverse the impact of fair market value losses/(gains) for contracts with the option to settle in shares or |
LEGAL AND OTHER CONTINGENCIES (
LEGAL AND OTHER CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Brazilian tax assessments | The Company’s Brazilian subsidiaries receive tax assessments from local, state and federal tax authorities in Brazil from time to time. Current open tax assessments as of June 30, 2024 are: Assessment received Type of assessment Type of Tax Tax period impacted Estimated amount, including interest and penalties as of June 30, 2024 Aug-20 State sales tax credits, which the Treasury Office of the State of Goiás considers as improperly registered ICMS 2017-2019 R$873.8 million (approximately $158.8) Oct-20 Federal excise taxes, which the Treasury Office of the Brazil’s Internal Revenue Service considers as improperly calculated 1 IPI 2016-2017 R$438.3 million (approximately $79.7) Nov-22 IPI 2018-2019 R$592.3 million (approximately $107.7) Mar-24 IPI 2020 R$33.5 million (approximately $6.1) Nov-20 State sales taxes, which the Treasury Office of the State of Minas Gerais considers as improperly calculated ICMS 2016-2019 R$225.4 million (approximately $41.0) Jun-21 State sales tax, which the Treasury Office of the State of Goiás considers as improperly calculated ICMS 2016-2020 R$46.9 million (approximately $8.5) 1 |
Schedule of other commitments | At June 30, 2024, the aggregate future minimum purchase obligations, which include commitments to purchase inventory and other services agreements, were as follows: Fiscal Year Ending June 30, Purchase Obligations 2025 $ 750.4 2026 78.6 2027 44.6 2028 24.2 2029 — Thereafter — Total $ 897.8 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Jun. 30, 2024 USD ($) | Jun. 30, 2024 EUR (€) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 EUR (€) | Jun. 30, 2022 USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 19.8 | $ 36.9 | |||
Sales returns, percentage | 1% | 1% | 2% | 2% | 2% |
Trade spending activities, percentage | 9% | 9% | 10% | 10% | 10% |
Advertising expense | $ 1,625.5 | $ 1,479.6 | $ 1,465.1 | ||
Research and development expense | 126.8 | 105.2 | 97.3 | ||
Net (losses) gains from foreign currency exchange transactions | (14.8) | (29.9) | 16.8 | ||
Selling, general and administrative expenses | 3,162.4 | 2,818.3 | 2,881.3 | ||
Asset impairment charges | 0 | $ 0 | 31.4 | ||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring costs | Restructuring costs | |||
Russia Market Exit | |||||
Significant Accounting Policies [Line Items] | |||||
Net deferred income tax (liability) asset | $ 83.6 | ||||
Selling, general and administrative expenses | 45.5 | ||||
Asset impairment charges | 31.4 | ||||
Restructuring costs | 6.3 | ||||
Inventory write-down | 0.4 | ||||
Income tax charges | 0.4 | 24.1 | |||
Net deferred income tax (liability) asset | 17 | ||||
Lacoste | |||||
Significant Accounting Policies [Line Items] | |||||
Termination payment received | 16.2 | € 15 | 93.9 | € 87.8 | |
Gain on selling, general and administrative expenses from contract termination | 104.4 | ||||
Contract termination payment | 4.9 | ||||
Disposal of remaining inventory | 0.6 | ||||
Operating Income (Loss) | |||||
Significant Accounting Policies [Line Items] | |||||
Net (losses) gains from foreign currency exchange transactions | (18.1) | (32.3) | 3.3 | ||
Interest Expense, Net and Other Expense (Income), Net | |||||
Significant Accounting Policies [Line Items] | |||||
Net (losses) gains from foreign currency exchange transactions | $ (16.5) | (12.2) | 10 | ||
Store fixtures | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful life | 3 years | ||||
Store fixtures | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful life | 5 years | ||||
Marketing furniture and fixtures | |||||
Significant Accounting Policies [Line Items] | |||||
Depreciation and amortization | $ 113.6 | $ 103 | $ 119.4 | ||
Marketing furniture and fixtures | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful life | 3 years | ||||
Marketing furniture and fixtures | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) | Jun. 30, 2024 |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Marketing furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Marketing furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 2 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
Computer equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 2 years |
Computer equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Finite Lived Intangible Assets (Details) | Jun. 30, 2024 |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 18 years 10 months 24 days |
License agreements | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 2 years |
License agreements | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 34 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 15 years 3 months 18 days |
Customer relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 2 years |
Customer relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 28 years |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 14 years 4 months 24 days |
Trademarks | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 2 years |
Trademarks | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 30 years |
Product formulations and technology | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 20 years 3 months 18 days |
Product formulations and technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 2 years |
Product formulations and technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 28 years |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Nov. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Discontinued Operation Gain Loss On Disposal Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag | Net income from discontinued operations | |||
Discontinued Operations, Disposed of by Sale | Wella Company | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) on sale of business | $ 6.1 | |||
Tax effect of discontinued operation | $ 0.4 | |||
Wella Company | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage | 25.84% | 25.85% | 40% |
SEGMENT REPORTING - Reporting S
SEGMENT REPORTING - Reporting Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 6,118 | $ 5,554.1 | $ 5,304.4 |
Depreciation and amortization | 421.1 | 426.7 | 516.4 |
Operating income from continuing operations | 546.7 | 543.7 | 240.9 |
Interest expense, net | 252 | 257.9 | 224 |
Other expense (income), net | 90.2 | (419) | (409.9) |
Income (loss) from continuing operations before income taxes | 204.5 | 704.8 | 426.8 |
Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 421.1 | 426.7 | 516.4 |
Operating Segments | Prestige | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 3,857.3 | 3,420.5 | 3,267.9 |
Operating income from continuing operations | 580.7 | 483.7 | 367.2 |
Operating Segments | Prestige | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 258.9 | 262.4 | 313.4 |
Operating Segments | Consumer Beauty | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,260.7 | 2,133.6 | 2,036.5 |
Operating income from continuing operations | 89.3 | 63.3 | 9.5 |
Operating Segments | Consumer Beauty | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 162.2 | 164.3 | 203 |
Operating Segments | Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating income from continuing operations | $ (123.3) | $ (3.3) | $ (135.8) |
SEGMENT REPORTING - Geographic
SEGMENT REPORTING - Geographic Data (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 8,190.2 | $ 8,498.8 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,477.7 | 3,597.3 |
Netherlands | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,066.3 | 3,367.5 |
Brazil | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 441.9 | 495 |
All other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,204.3 | $ 1,039 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 6,118 | $ 5,554.1 | $ 5,304.4 |
U.S. | Sales Revenue | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 1,617.7 | $ 1,547.7 | $ 1,477.7 |
SEGMENT REPORTING - Reportable
SEGMENT REPORTING - Reportable Segments, Product Categories Exceeding 10% of Consolidated Net Revenues (Details) - Product Concentration Risk - Sales Revenue | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 100% | 100% | 100% |
Fragrances | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 61.30% | 59.40% | 58.90% |
Color Cosmetics | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 26.40% | 27.90% | 28.70% |
Body Care, Skin & Other | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 12.30% | 12.70% | 12.40% |
ACQUISITION- AND DIVESTITURE-_2
ACQUISITION- AND DIVESTITURE-RELATED COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||
Acquisition-related costs | $ 0 | $ 0 | $ 0 |
Divestiture-related costs | $ 0 | $ 0 | $ 14.7 |
RESTRUCTURING COSTS - Restructu
RESTRUCTURING COSTS - Restructuring Costs by Program (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 36.7 | $ (6.5) | $ (6.5) |
Transformation Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (1.2) | (6.5) | (6.5) |
Current Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 37.9 | $ 0 | $ 0 |
RESTRUCTURING COSTS - Narrative
RESTRUCTURING COSTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jul. 01, 2019 | Jun. 30, 2026 | Jun. 30, 2025 | Jun. 30, 2024 | Jun. 30, 2023 | |
Transformation Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring plan term | 4 years | ||||
Cumulative restructuring costs | $ 214.3 | ||||
Expected cost remaining | 0 | ||||
Restructuring accrual | 4.7 | $ 10 | |||
Cash expenditures | 3 | ||||
Transformation Plan | Scenario, Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cash expenditures | $ 0.1 | $ 4.6 | |||
Current Restructuring Actions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cumulative restructuring costs | 39.2 | ||||
Restructuring accrual | $ 37.9 | $ 0 | |||
Current Restructuring Actions | Scenario, Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cash expenditures | $ 12.8 | $ 25.1 |
RESTRUCTURING COSTS - Restruc_2
RESTRUCTURING COSTS - Restructuring Costs by Type (Details) - USD ($) $ in Millions | 12 Months Ended | 60 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2024 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | $ 36.7 | $ (6.5) | $ (6.5) | |||
Transformation Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | (2.5) | (6.5) | (6.5) | $ 73.2 | $ 156.6 | $ 214.3 |
Severance and Employee Benefits | Transformation Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | (2.5) | (6.5) | (6.2) | 73.4 | 151.2 | 209.4 |
Fixed Asset Write-offs | Transformation Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 0 | 0 | 0 | (0.5) | (1.1) | (1.6) |
Other Exit Costs | Transformation Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | $ 0 | $ 0 | $ (0.3) | $ 0.3 | $ 6.5 | $ 6.5 |
RESTRUCTURING COSTS - Restruc_3
RESTRUCTURING COSTS - Restructuring Roll Forward (Details) - Transformation Plan $ in Millions | 12 Months Ended |
Jun. 30, 2024 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2023 | $ 10 |
Restructuring charges | 0.2 |
Payments | (3) |
Changes in estimates and reclassification(a) | (2.7) |
Effect of exchange rates | 0.2 |
Balance—June 30, 2024 | 4.7 |
Severance and Employee Benefits | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2023 | 10 |
Restructuring charges | 0.2 |
Payments | (3) |
Changes in estimates and reclassification(a) | (2.7) |
Effect of exchange rates | 0.2 |
Balance—June 30, 2024 | $ 4.7 |
TRADE RECEIVABLES - FACTORING (
TRADE RECEIVABLES - FACTORING (Details) € in Millions | 12 Months Ended | ||||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2019 EUR (€) | Mar. 19, 2019 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivables purchase agreement, aggregate facility limit | $ 150,000,000 | ||||
Receivables purchase agreement, recourse obligation retained, percentage (up to) | 10% | ||||
Receivables purchase agreement, facility limit | € | € 143 | ||||
Factored Receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Trade receivables, utilized | $ 195,300,000 | $ 202,900,000 | |||
Trade receivables, factored | 1,534,300,000 | 1,579,200,000 | |||
Trade receivables, factoring fees | 10,300,000 | 8,500,000 | $ 3,000,000 | ||
Factored Receivable | Trade Receivables | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Trade receivables, factored, amounts due from factors | $ 10,000,000 | $ 14,200,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 201.2 | $ 224.1 |
Work-in-process | 10.4 | 15.6 |
Finished goods | 552.5 | 613.7 |
Total inventories | $ 764.1 | $ 853.4 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Schedule of Prepaid Expenses and Other Current Assets [Line Items] | ||
Value added tax, sales and other non-income tax assets | $ 99.4 | $ 60.2 |
Expected income tax refunds, credits and prepaid income taxes | 101.4 | 102.4 |
Prepaid marketing, copyright and agency fees | 94.4 | 88.7 |
Non-trade receivables | 21.4 | 18.4 |
Prepaid rent, leases, maintenance and insurance | 18.8 | 17.5 |
Interest rate swap asset | 0 | 2.8 |
Forward Repurchase Contracts Asset | 29.1 | 137.6 |
Other | 32.7 | 55.4 |
Total prepaid expenses and other current assets | 437.2 | 553.6 |
Related Party | ||
Schedule of Prepaid Expenses and Other Current Assets [Line Items] | ||
Due from related party | $ 40 | $ 70.6 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,577 | $ 2,473.4 |
Accumulated depreciation and amortization | (1,858.1) | (1,760.5) |
Property and equipment, net | 718.9 | 712.9 |
Land, buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 428.6 | 432.1 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 694 | 676.4 |
Marketing furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 568.4 | 531.8 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 776 | 751.5 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 110 | $ 81.6 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense on property and equipment | $ 227.7 | $ 235 | $ 309 |
Asset impairment charges | $ 1.7 | $ 4.3 | $ 2.4 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | |||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
ImpairmentOfIntangibleAssetIndefiniteLivedExcludingGoodwillStatementOfIncomeOrComprehensiveIncomeExtensibleEnumerationNotDisclosedFlag | total impairments | ||
Impairment of intangible assets, indefinite-lived | $ 0 | 0 | 31.4 |
Impairment of intangible assets, finite-lived | 0 | 0 | 0 |
Amortization expense | $ 193.4 | $ 191.8 | $ 207.4 |
Finite-lived intangible assets, useful life | 18 years 10 months 24 days | ||
License agreements | Minimum | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets, useful life | 2 years | ||
Renewal term | 2 years | ||
License agreements | Maximum | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets, useful life | 34 years | ||
Renewal term | 10 years |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill [Roll Forward] | |||
Gross beginning balance | $ 8,028 | $ 7,954.8 | |
Accumulated impairments | (4,040.1) | (4,040.1) | $ (4,040.1) |
Net beginning balance | 3,987.9 | 3,914.7 | |
Foreign currency translation | (82.2) | 73.2 | |
Gross ending balance | 7,945.8 | 8,028 | 7,954.8 |
Accumulated impairments | (4,040.1) | (4,040.1) | (4,040.1) |
Net ending balance | 3,905.7 | 3,987.9 | |
Prestige | |||
Goodwill [Roll Forward] | |||
Gross beginning balance | 6,279.2 | 6,220.7 | |
Accumulated impairments | (3,110.3) | (3,110.3) | (3,110.3) |
Net beginning balance | 3,168.9 | 3,110.4 | |
Foreign currency translation | (64.6) | 58.5 | |
Gross ending balance | 6,214.6 | 6,279.2 | 6,220.7 |
Accumulated impairments | (3,110.3) | (3,110.3) | (3,110.3) |
Net ending balance | 3,104.3 | 3,168.9 | |
Consumer Beauty | |||
Goodwill [Roll Forward] | |||
Gross beginning balance | 1,748.8 | 1,734.1 | |
Accumulated impairments | (929.8) | (929.8) | (929.8) |
Net beginning balance | 819 | 804.3 | |
Foreign currency translation | (17.6) | 14.7 | |
Gross ending balance | 1,731.2 | 1,748.8 | 1,734.1 |
Accumulated impairments | (929.8) | (929.8) | $ (929.8) |
Net ending balance | $ 801.4 | $ 819 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Indefinite-lived other intangible assets | $ 944.6 | $ 950.8 | $ 936.6 |
Finite-lived other intangible assets, net | 2,621 | 2,847.2 | |
Total Other intangible assets, net | $ 3,565.6 | $ 3,798 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Changes in the Carrying Amount of Indefinite-lived Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross beginning balance | $ 1,895.7 | $ 1,881.5 |
Accumulated impairments | (944.9) | (944.9) |
Net beginning balance | 950.8 | 936.6 |
Foreign currency translation | (6.2) | 14.2 |
Gross ending balance | 1,889.5 | 1,895.7 |
Accumulated impairments | (944.9) | (944.9) |
Net ending balance | 944.6 | 950.8 |
Trademarks | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Gross beginning balance | 1,895.7 | 1,881.5 |
Accumulated impairments | (944.9) | (944.9) |
Net beginning balance | 950.8 | 936.6 |
Foreign currency translation | (6.2) | 14.2 |
Gross ending balance | 1,889.5 | 1,895.7 |
Accumulated impairments | (944.9) | (944.9) |
Net ending balance | $ 944.6 | $ 950.8 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 4,852.3 | $ 4,905.4 |
Accumulated Amortization | (2,205.7) | (2,032.6) |
Accumulated Impairment | (25.6) | (25.6) |
Net | 2,621 | 2,847.2 |
License and collaboration agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 3,715.1 | 3,756.2 |
Accumulated Amortization | (1,422.5) | (1,282.6) |
Accumulated Impairment | (19.6) | (19.6) |
Net | 2,273 | 2,454 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 741.8 | 750.6 |
Accumulated Amortization | (527.8) | (505.9) |
Accumulated Impairment | (5.5) | (5.5) |
Net | 208.5 | 239.2 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 311.7 | 313 |
Accumulated Amortization | (192.4) | (180.6) |
Accumulated Impairment | (0.5) | (0.5) |
Net | 118.8 | 131.9 |
Product formulations and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 83.7 | 85.6 |
Accumulated Amortization | (63) | (63.5) |
Accumulated Impairment | 0 | 0 |
Net | $ 20.7 | $ 22.1 |
GOODWILL AND OTHER INTANGIBLE_8
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Weighted Average Remaining Lives of Intangible Assets Subject to Amortization (Details) | Jun. 30, 2024 |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 18 years 10 months 24 days |
License and collaboration agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 19 years 4 months 24 days |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 15 years 3 months 18 days |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 14 years 4 months 24 days |
Product formulations and technology | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 20 years 3 months 18 days |
GOODWILL AND OTHER INTANGIBLE_9
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Amortization Expense (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2025 | $ 189 |
2026 | 158 |
2027 | 148.5 |
2028 | 145 |
2029 | $ 142.8 |
EQUITY INVESTMENTS - Schedule o
EQUITY INVESTMENTS - Schedule of Equity Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jan. 04, 2021 | Nov. 30, 2020 | |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Total equity investments | $ 1,090.6 | $ 1,068.9 | |||
KKW Beauty | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Percentage of equity interests acquired | 20% | ||||
KKW Beauty | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Equity investments | 5.6 | 8.9 | |||
Loss from equity method investments | 3.3 | 3.7 | $ 3.6 | ||
Wella Company | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Equity investments at fair value | $ 1,085 | $ 1,060 | |||
Ownership percentage | 25.84% | 25.85% | 40% |
EQUITY INVESTMENTS - Summarized
EQUITY INVESTMENTS - Summarized Statements of Operations Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Net revenues | $ 6,118 | $ 5,554.1 | $ 5,304.4 |
Gross profit | 3,939.2 | 3,547.3 | 3,369.2 |
Operating income | 546.7 | 543.7 | 240.9 |
Loss before income taxes | 204.5 | 704.8 | 426.8 |
Net loss | 109.4 | 523.2 | $ 267.7 |
KKW Beauty And Wella | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Gross profit | 1,732.8 | 1,616.2 | |
Net loss | (133.8) | (76.2) | |
KKW Beauty And Wella | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Net revenues | 2,590.1 | 2,477.7 | |
Operating income | 42.7 | 163.6 | |
Loss before income taxes | $ (176.4) | $ (33.6) |
EQUITY INVESTMENTS - Summariz_2
EQUITY INVESTMENTS - Summarized Balance Sheet Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Current assets | $ 1,963.5 | $ 2,051.7 |
TOTAL ASSETS | 12,082.5 | 12,661.6 |
Current liabilities | 2,601.8 | 2,736.8 |
TOTAL LIABILITIES | 7,834.8 | 8,428.3 |
KKW Beauty And Wella | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Current assets | 1,080.4 | 1,093.4 |
Noncurrent assets | 4,322.3 | 4,554.5 |
TOTAL ASSETS | 5,402.7 | 5,647.9 |
Current liabilities | 967.3 | 1,038.9 |
Noncurrent liabilities | 2,687.6 | 2,708.5 |
TOTAL LIABILITIES | $ 3,654.9 | $ 3,747.4 |
EQUITY INVESTMENTS - Narrative
EQUITY INVESTMENTS - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 | Nov. 30, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | |||
Common stock, shares issued (in shares) | 962.1 | 919.3 | |
Wella Company | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Common stock, shares issued (in shares) | 30 | ||
Redeemable preferred stock | $ 1,798.8 | ||
Wella Company | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Ownership percentage | 25.84% | 25.85% | 40% |
EQUITY INVESTMENTS - Summary of
EQUITY INVESTMENTS - Summary of Movement in Equity Investments (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2024 USD ($) | |
Equity investments at fair value: | |
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain Loss Statement Of Income Extensible List Not Disclosed Flag | Total gains/(losses) included in earnings |
Wella Company | |
Equity investments at fair value: | |
Balance as of June 30, 2023 | $ 1,060 |
Total gains/(losses) included in earnings | 25 |
Balance as of June 30, 2024 | $ 1,085 |
EQUITY INVESTMENTS - Summary _2
EQUITY INVESTMENTS - Summary of Significant Unobservable Inputs Used in Level 3 Valuation (Details) - Wella Company $ in Millions | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity investments at fair value | $ 1,085 | $ 1,060 |
Level 3 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity investments at fair value | $ 1,085 | |
Level 3 | Discount rate | Discounted cash flows | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Unobservable input | 0.0975 | |
Level 3 | Growth rate | Discounted cash flows | Minimum | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Unobservable input | 0.018 | |
Level 3 | Growth rate | Discounted cash flows | Maximum | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Unobservable input | 0.110 | |
Level 3 | Revenue multiple | Market multiple | Minimum | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Unobservable input | 2 | |
Level 3 | Revenue multiple | Market multiple | Maximum | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Unobservable input | 2.2 | |
Level 3 | EBITDA multiple | Market multiple | Minimum | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Unobservable input | 10.2 | |
Level 3 | EBITDA multiple | Market multiple | Maximum | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Unobservable input | 11.8 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Derivative [Line Items] | ||
Advertising, marketing and licensing | $ 331.4 | $ 338.4 |
Customer returns, discounts, allowances and bonuses | 220.4 | 261.5 |
Compensation and other compensation related benefits | 188.7 | 171.1 |
Value added, sales and other non-income taxes | 99.1 | 71.5 |
Derivative liability for foreign currency | 16.3 | 4.3 |
Restructuring costs | 29.6 | 8.9 |
Interest | 70.5 | 47 |
Auditing, consulting, legal and litigation accruals | 27.1 | 25.2 |
Deferred income | 7.5 | 6.9 |
Factoring - due to counterparty | 6.6 | 23 |
Unfavorable contract liability | 10.3 | 10.5 |
Other | 59.8 | 64.9 |
Total accrued expenses and other current liabilities | $ 1,067.3 | $ 1,042 |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Related Party | ||
Derivative [Line Items] | ||
Due to related party | $ 0 | $ 8.3 |
Cross-currency swap contracts | ||
Derivative [Line Items] | ||
Cross currency swap liability | $ 0 | $ 0.5 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Debt Instrument [Line Items] | ||
Short-term debt | $ 0 | $ 0 |
Long term debt | 3,909.4 | |
Brazilian Credit Facility | 0 | 31.9 |
Finance lease obligations | 4.3 | 7.1 |
Total debt | 3,913.7 | 4,281.6 |
Less: Short-term debt and current portion of long-term debt | (3) | (57.9) |
Total Long-term debt | 3,910.7 | 4,223.7 |
Less: Unamortized financing fees and discounts on long-term debt | (68.9) | (45.5) |
Total Long-term debt, net | $ 3,841.8 | $ 4,178.2 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long-term debt, net | Long-term debt, net |
Senior Notes | 2026 Dollar Senior Secured Notes due April 2026 | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 650 | $ 900 |
Senior Notes | 2026 Euro Senior Secured Notes due April 2026 | ||
Debt Instrument [Line Items] | ||
Long term debt | 748.1 | 761 |
Senior Notes | 2027 Euro Senior Secured Notes due May 2027 | ||
Debt Instrument [Line Items] | ||
Long term debt | 534.3 | 0 |
Senior Notes | 2028 Euro Senior Secured Notes due September 2028 | ||
Debt Instrument [Line Items] | ||
Long term debt | 534.3 | 0 |
Senior Notes | 2029 Dollar Senior Secured Notes due January 2029 | ||
Debt Instrument [Line Items] | ||
Long term debt | 500 | 500 |
Senior Notes | 2030 Dollar Senior Secured Notes due July 2030 | ||
Debt Instrument [Line Items] | ||
Long term debt | 750 | 0 |
Senior Notes | 2026 Dollar Notes due April 2026 | ||
Debt Instrument [Line Items] | ||
Long term debt | 0 | 473 |
Senior Notes | 2026 Euro Notes due April 2026 | ||
Debt Instrument [Line Items] | ||
Long term debt | 192.7 | 196 |
Line of Credit | Revolving credit facility | 2023 Coty Revolving Credit Facility due July 2028 | ||
Debt Instrument [Line Items] | ||
Long term debt | 0 | 0 |
Line of Credit | Revolving credit facility | 2021 Coty Revolving Credit Facility due April 2025 | ||
Debt Instrument [Line Items] | ||
Long term debt | 0 | 228.9 |
Line of Credit | Term Loan | 2018 Coty Term B Facility due April 2025 | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 0 | $ 1,183.7 |
DEBT - Short-Term Debt (Details
DEBT - Short-Term Debt (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 0 | $ 0 |
Weighted-average interest rate | 0% | 0% |
Short-term Lines of Credit | ||
Short-term Debt [Line Items] | ||
Borrowing capacity | $ 59,400,000 | $ 49,200,000 |
Short-term debt | 0 | 0 |
Letter of credit | ||
Short-term Debt [Line Items] | ||
Undrawn letters of credit | 4,100,000 | 7,200,000 |
Bank Guarantee | ||
Short-term Debt [Line Items] | ||
Undrawn letters of credit | $ 18,400,000 | $ 16,300,000 |
Minimum | Short-term Lines of Credit | ||
Short-term Debt [Line Items] | ||
Interest rate spread | 4.70% | 4.80% |
Maximum | Short-term Lines of Credit | ||
Short-term Debt [Line Items] | ||
Interest rate spread | 12.40% | 16.40% |
DEBT - Schedule of Long Term De
DEBT - Schedule of Long Term Debt Facilities (Details) | 12 Months Ended | |||||||||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 EUR (€) | Sep. 19, 2023 | Jun. 30, 2023 EUR (€) | Nov. 30, 2021 USD ($) | Jun. 16, 2021 EUR (€) | Apr. 21, 2021 USD ($) | Apr. 05, 2018 USD ($) | Apr. 05, 2018 EUR (€) | |
Senior Notes | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Stated interest rate | 5.75% | |||||||||
Senior Notes | 2029 Dollar Senior Secured Notes due January 2029 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | $ 500,000,000 | |||||||||
Stated interest rate | 4.75% | |||||||||
Senior Notes | 2026 Dollar Senior Secured Notes due April 2026 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | $ 900,000,000 | |||||||||
Stated interest rate | 5% | |||||||||
Senior Notes | 2026 Euro Senior Secured Notes due April 2026 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | € | € 700,000,000 | |||||||||
Stated interest rate | 3.875% | |||||||||
Senior Notes | 2026 Dollar Notes | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | $ 550,000,000 | |||||||||
Stated interest rate | 6.50% | 6.50% | ||||||||
Senior Notes | 2026 Euro Notes | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | € | € 250,000,000 | |||||||||
Stated interest rate | 4.75% | 4.75% | ||||||||
Senior Notes | Revolving credit facility | 2023 Coty Revolving Credit Facility due July 2028 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | $ 1,670,000,000 | € 300,000,000 | ||||||||
Applicable interest rate spread | 1.50% | 1.50% | 1.50% | 1.50% | ||||||
Senior Notes | Revolving credit facility | 2021 Coty Revolving Credit Facility due April 2025 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | $ 0 | $ 0 | ||||||||
Applicable interest rate spread | 1.75% | 1.75% | 1.75% | 1.75% | ||||||
Senior Notes | Term Loan | 2027 Euro Senior Secured Notes due May 2027 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | $ 500,000,000 | $ 500,000,000 | ||||||||
Stated interest rate | 4.50% | 4.50% | 4.50% | 4.50% | ||||||
Applicable interest rate spread | 4.50% | 4.50% | 4.50% | 4.50% | ||||||
Senior Notes | Term Loan | 2028 Euro Senior Secured Notes due September 2028 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | $ 500,000,000 | $ 500,000,000 | ||||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | 5.75% | ||||||
Applicable interest rate spread | 5.75% | 5.75% | 5.75% | 5.75% | ||||||
Senior Notes | Term Loan | 2030 Dollar Senior Secured Notes due July 2030 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | $ 750,000,000 | $ 750,000,000 | ||||||||
Stated interest rate | 6.625% | 6.625% | 6.625% | 6.625% | ||||||
Applicable interest rate spread | 6.625% | 6.625% | 6.625% | 6.625% | ||||||
Senior Notes | Term Loan | 2029 Dollar Senior Secured Notes due January 2029 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | $ 500,000,000 | $ 500,000,000 | ||||||||
Stated interest rate | 4.75% | 4.75% | 4.75% | 4.75% | ||||||
Applicable interest rate spread | 4.75% | 4.75% | 4.75% | 4.75% | ||||||
Senior Notes | Term Loan | Brazilian Credit Facilities - October 2023 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Stated interest rate | 3.48% | 3.48% | 3.48% | 3.48% | ||||||
Senior Notes | Term Loan | 2026 Dollar Senior Secured Notes due April 2026 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | $ 650,000,000 | $ 650,000,000 | ||||||||
Stated interest rate | 5% | 5% | 5% | 5% | ||||||
Applicable interest rate spread | 5% | 5% | 5% | 5% | ||||||
Senior Notes | Term Loan | 2026 Euro Senior Secured Notes due April 2026 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | € | € 700,000,000 | € 700,000,000 | ||||||||
Stated interest rate | 3.875% | 3.875% | 3.875% | 3.875% | ||||||
Applicable interest rate spread | 3.875% | 3.875% | 3.875% | 3.875% | ||||||
Senior Notes | Term Loan | Term Loan B Facility, Due April 2025 | U.S. Dollar | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | € | € 0 | € 0 | ||||||||
Senior Notes | Term Loan | Term Loan B Facility, Due April 2025 | Euro | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | € | € 0 | € 0 | ||||||||
Senior Notes | Term Loan | 2026 Dollar Notes | U.S. Dollar | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | $ 0 | $ 0 | ||||||||
Stated interest rate | 6.50% | 6.50% | 6.50% | 6.50% | ||||||
Senior Notes | Term Loan | 2026 Euro Notes | Euro | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | € | € 180,300,000 | € 180,300,000 | ||||||||
Stated interest rate | 4.75% | 4.75% | 4.75% | 4.75% | ||||||
Line of Credit | Brazilian Credit Facilities - October 2023 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Borrowing capacity | $ 0 | $ 0 | ||||||||
Applicable interest rate spread | 3.48% | 3.48% | 3.48% | 3.48% | ||||||
Line of Credit | Revolving credit facility | 2023 Coty Revolving Credit Facility due July 2028 | SOFR | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin percentage | 1% | 1% | ||||||||
Line of Credit | Revolving credit facility | 2023 Coty Revolving Credit Facility due July 2028 | SOFR | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin percentage | 2% | 2% | ||||||||
Line of Credit | Revolving credit facility | 2023 Coty Revolving Credit Facility due July 2028 | Base Rate | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin percentage | 0% | 0% | ||||||||
Line of Credit | Revolving credit facility | 2023 Coty Revolving Credit Facility due July 2028 | Base Rate | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin percentage | 1% | 1% | ||||||||
Line of Credit | Revolving credit facility | 2021 Coty Revolving Credit Facility due April 2025 | SOFR | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin percentage | 1% | 1% | ||||||||
Line of Credit | Revolving credit facility | 2021 Coty Revolving Credit Facility due April 2025 | SOFR | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin percentage | 2% | 2% | ||||||||
Line of Credit | Revolving credit facility | 2021 Coty Revolving Credit Facility due April 2025 | Base Rate | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin percentage | 0% | 0% | ||||||||
Line of Credit | Revolving credit facility | 2021 Coty Revolving Credit Facility due April 2025 | Base Rate | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin percentage | 1% | 1% | ||||||||
Line of Credit | Revolving credit facility | Coty Credit Agreement | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Unused commitment fee percentage | 0.25% | 0.25% | ||||||||
Line of Credit | Revolving credit facility | Coty Credit Agreement | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Unused commitment fee percentage | 0.10% | |||||||||
Line of Credit | Revolving credit facility | Coty Credit Agreement | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Unused commitment fee percentage | 0.35% | |||||||||
Line of Credit | Term Loan | Euro | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Repayment percentage | 0.25% | 0.25% | ||||||||
Line of Credit | Term Loan | Term Loan B Facility, Due April 2025 | U.S. Dollar | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Applicable interest rate spread | 2.25% | 2.25% | 2.25% | 2.25% | ||||||
Debt Discount | 0.25% | 0.25% | 0.25% | 0.25% | ||||||
Line of Credit | Term Loan | Term Loan B Facility, Due April 2025 | Euro | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Applicable interest rate spread | 2.50% | 2.50% | 2.50% | 2.50% | ||||||
Debt Discount | 0.25% | 0.25% | 0.25% | 0.25% | ||||||
Line of Credit | Term Loan | Term Loan B Facility, Due April 2025 | SOFR | U.S. Dollar | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin percentage | 2.25% | 2.25% | ||||||||
Line of Credit | Term Loan | Term Loan B Facility, Due April 2025 | SOFR | Euro | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin percentage | 2.50% | 2.50% | ||||||||
Line of Credit | Term Loan | Term Loan B Facility, Due April 2025 | Base Rate | U.S. Dollar | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin percentage | 1.25% | 1.25% |
DEBT - Fiscal 2024 Developments
DEBT - Fiscal 2024 Developments (Details) | May 30, 2024 USD ($) | Oct. 05, 2023 USD ($) | Aug. 03, 2023 USD ($) | Aug. 03, 2023 EUR (€) | Jul. 26, 2023 USD ($) | Jul. 11, 2023 USD ($) tranche | Jun. 30, 2024 USD ($) | May 30, 2024 EUR (€) | Dec. 07, 2023 USD ($) | Sep. 19, 2023 EUR (€) | Jul. 26, 2023 EUR (€) | Jul. 11, 2023 EUR (€) tranche | Jun. 30, 2023 USD ($) | Dec. 07, 2022 USD ($) | Apr. 05, 2018 USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Long term debt | $ 3,909,400,000 | ||||||||||||||
Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate | 5.75% | ||||||||||||||
2030 Dollar Senior Secured Notes, Due April 2030 | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | $ 750,000,000 | ||||||||||||||
Stated interest rate | 6.625% | 6.625% | |||||||||||||
Proceeds from issuance of senior secured notes | $ 740,600,000 | ||||||||||||||
2018 Coty Term B Facility, Dollar Portion | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long term debt | 715,500,000 | ||||||||||||||
2018 Coty Term B Facility, Euro Portion | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long term debt | $ 25,100,000 | € 22,600,000 | |||||||||||||
2028 Euro Senior Secured Notes Due January 2028 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | € | € 493,800,000 | ||||||||||||||
2028 Euro Senior Secured Notes Due January 2028 | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | € | € 500,000,000 | ||||||||||||||
2027 Euro Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | € | € 493,700,000 | ||||||||||||||
2027 Euro Senior Secured Notes | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | € | € 500,000,000 | ||||||||||||||
Stated interest rate | 4.50% | ||||||||||||||
2026 Dollar Senior Secured Notes | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of long-term debt | $ 323,000,000 | ||||||||||||||
2026 Dollar Senior Secured Notes | Cash Tender Offers | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long term debt | $ 250,000,000 | ||||||||||||||
2026 Dollar Notes due April 2026 | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of debt | $ 550,000,000 | ||||||||||||||
Stated interest rate | 6.50% | ||||||||||||||
Long term debt | $ 0 | $ 473,000,000 | |||||||||||||
2026 Dollar Notes due April 2026 | Cash Tender Offers | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long term debt | $ 150,000,000 | $ 77,000,000 | |||||||||||||
2018 Coty Credit Agreement | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt refinancing | $ 2,000,000,000 | ||||||||||||||
Number of tranches | tranche | 2 | 2 | |||||||||||||
Credit spread adjustment | 0.10% | ||||||||||||||
2018 Coty Credit Agreement | Line of Credit | Refinancing in Dollars and Certain Other Currencies | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrowing capacity | $ 1,670,000,000 | ||||||||||||||
2018 Coty Credit Agreement | Line of Credit | Refinancing in Euros | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrowing capacity | € | € 300,000,000 | ||||||||||||||
2018 Coty Term B Facility due April 2025 | Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of debt | $ 446,100,000 | € 408,000,000 | |||||||||||||
Brazilian Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of long-term debt | $ 31,900,000 |
DEBT - Senior Secured Notes (De
DEBT - Senior Secured Notes (Details) € in Millions | Nov. 30, 2021 USD ($) | Jun. 16, 2021 EUR (€) | Apr. 21, 2021 USD ($) | Sep. 19, 2023 |
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.75% | |||
2026 Dollar Senior Secured Notes due April 2026 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Amount of debt | $ 900,000,000 | |||
Stated interest rate | 5% | |||
Proceeds from issuance of senior secured notes | $ 900,000,000 | |||
2026 Euro Senior Secured Notes due April 2026 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Amount of debt | € | € 700 | |||
Stated interest rate | 3.875% | |||
Proceeds from issuance of senior secured notes | € | € 700 | |||
2029 Dollar Senior Secured Notes due January 2029 | ||||
Debt Instrument [Line Items] | ||||
Proceeds from issuance of senior secured notes | $ 500,000,000 | |||
2029 Dollar Senior Secured Notes due January 2029 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Amount of debt | $ 500,000,000 | |||
Stated interest rate | 4.75% |
DEBT - Optional Redemption (Det
DEBT - Optional Redemption (Details) - Senior Notes | 12 Months Ended | |||
Nov. 30, 2021 | Jun. 16, 2021 | Apr. 21, 2021 | Jun. 30, 2024 | |
2026 Dollar Senior Secured Notes due April 2026 | ||||
Debt Instrument [Line Items] | ||||
Early redemption premium, percent of outstanding principal amount | 1% | |||
Base redemption price, percentage | 100% | |||
2026 Dollar Senior Secured Notes due April 2026 | Bund Rate | ||||
Debt Instrument [Line Items] | ||||
Margin percentage | 0.50% | |||
2029 Dollar Senior Secured Notes due January 2029 | ||||
Debt Instrument [Line Items] | ||||
Early redemption premium, percent of outstanding principal amount | 1% | |||
Base redemption price, percentage | 100% | |||
2029 Dollar Senior Secured Notes due January 2029 | Treasury Rate | ||||
Debt Instrument [Line Items] | ||||
Margin percentage | 0.50% | |||
2026 Euro Senior Secured Notes due April 2026 | ||||
Debt Instrument [Line Items] | ||||
Early redemption premium, percent of outstanding principal amount | 1% | |||
Base redemption price, percentage | 100% | |||
2026 Euro Senior Secured Notes due April 2026 | Treasury Rate | ||||
Debt Instrument [Line Items] | ||||
Margin percentage | 0.50% | |||
2030 Dollar Senior Secured Notes due July 2030 | ||||
Debt Instrument [Line Items] | ||||
Early redemption premium, percent of outstanding principal amount | 1% | |||
Base redemption price, percentage | 100% | |||
2030 Dollar Senior Secured Notes due July 2030 | Treasury Rate | ||||
Debt Instrument [Line Items] | ||||
Margin percentage | 0.50% | |||
2028 Euro Senior Secured Notes due September 2028 | ||||
Debt Instrument [Line Items] | ||||
Early redemption premium, percent of outstanding principal amount | 1% | |||
Base redemption price, percentage | 100% | |||
2028 Euro Senior Secured Notes due September 2028 | Treasury Rate | ||||
Debt Instrument [Line Items] | ||||
Margin percentage | 0.50% |
DEBT - Schedule of Debt Redempt
DEBT - Schedule of Debt Redemption (Details) - Senior Notes | 12 Months Ended |
Jun. 30, 2024 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 101% |
2026 Dollar Senior Secured Notes | 2025 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
2026 Euro Senior Secured Notes | 2025 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
2027 Euro Senior Secured Notes due May 2027 | 2026 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 102.25% |
2027 Euro Senior Secured Notes due May 2027 | 2027 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
2027 Euro Senior Secured Notes due November 2027 | 2026 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
2028 Euro Senior Secured Notes | 2025 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 102.875% |
2028 Euro Senior Secured Notes | 2026 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 101.438% |
2028 Euro Senior Secured Notes | 2027 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
2028 Euro Senior Secured Notes | 2028 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
2029 Dollar Senior Secured Notes | 2025 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 102.375% |
2029 Dollar Senior Secured Notes | 2026 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 101.188% |
2029 Dollar Senior Secured Notes | 2027 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
2029 Dollar Senior Secured Notes | 2028 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
2030 Dollar Senior Secured Notes | 2026 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 103.313% |
2030 Dollar Senior Secured Notes | 2027 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 101.656% |
2030 Dollar Senior Secured Notes | 2028 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
2026 Euro Notes due April 2026 | 2025 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
DEBT - 2018 Coty Credit Agreeme
DEBT - 2018 Coty Credit Agreement (Details) - Apr. 05, 2018 | USD ($) | EUR (€) |
2018 Coty Term A Facility | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | € | € 2,035,000,000 | |
2018 Coty Term A Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | $ 1,000,000,000 | |
2018 Coty Term B Facility | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | € | € 850,000,000 | |
2018 Coty Term B Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | 1,400,000,000 | |
2021 Coty Revolving Credit Facility | Line of Credit | Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | 150,000,000 | |
2021 Coty Revolving Credit Facility | Line of Credit | Swingline loans | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | 150,000,000 | |
2021 Coty Revolving Credit Facility | Line of Credit | Incurrence Incremental Facilities | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | $ 1,700,000,000 | |
Total net leverage ratio | 3 |
DEBT - Senior Unsecured Notes (
DEBT - Senior Unsecured Notes (Details) | 12 Months Ended | |||||||
Jun. 30, 2024 USD ($) | Dec. 07, 2023 USD ($) | Sep. 19, 2023 | Jun. 30, 2023 USD ($) | Dec. 07, 2022 USD ($) | Dec. 07, 2022 EUR (€) | Apr. 05, 2018 USD ($) | Apr. 05, 2018 EUR (€) | |
Debt Instrument [Line Items] | ||||||||
Long term debt | $ 3,909,400,000 | |||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 5.75% | |||||||
Redemption price, percentage | 101% | |||||||
Senior Notes | 2026 Dollar Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount of debt | $ 550,000,000 | |||||||
Stated interest rate | 6.50% | 6.50% | ||||||
Long term debt | $ 0 | $ 473,000,000 | ||||||
Senior Notes | 2023 Euro Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount of debt | € | € 550,000,000 | |||||||
Stated interest rate | 4% | 4% | ||||||
Senior Notes | 2026 Euro Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount of debt | € | € 250,000,000 | |||||||
Stated interest rate | 4.75% | 4.75% | ||||||
Long term debt | $ 192,700,000 | $ 196,000,000 | ||||||
Cash Tender Offers | 2026 Dollar Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long term debt | $ 150,000,000 | $ 77,000,000 | ||||||
Cash Tender Offers | 2026 Euro Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long term debt | $ 72,200,000 | € 69,700,000 |
DEBT - Deferred Financing Costs
DEBT - Deferred Financing Costs (Details) - Line of Credit - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | |||
Writeoff of deferred financing fees | $ 8.2 | $ 0.8 | $ 5.1 |
Recognized deferred financing fees | $ 49.2 | $ 0 | $ 9.2 |
DEBT - Schedule of Debt Pricing
DEBT - Schedule of Debt Pricing Tier (Details) | 12 Months Ended |
Jun. 30, 2024 | |
Pricing Tier Five | SOFR | |
Debt Instrument [Line Items] | |
Margin percentage | 2% |
Pricing Tier Five | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 1% |
Pricing Tier Four | SOFR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.75% |
Pricing Tier Four | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.75% |
Pricing Tier Three | SOFR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.50% |
Pricing Tier Three | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.50% |
Pricing Tier Two | SOFR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.25% |
Pricing Tier Two | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.25% |
Pricing Tier One | SOFR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.125% |
Pricing Tier One | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.125% |
Pricing Tier One | Minimum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 4.75 |
Pricing Tier One | SOFR | |
Debt Instrument [Line Items] | |
Margin percentage | 2% |
Pricing Tier One | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 1% |
Pricing Tier Two | Minimum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 4 |
Pricing Tier Two | Maximum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 4.75 |
Pricing Tier Two | SOFR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.75% |
Pricing Tier Two | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.75% |
Pricing Tier Three | Minimum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 2.75 |
Pricing Tier Three | Maximum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 4 |
Pricing Tier Three | SOFR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.50% |
Pricing Tier Three | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.50% |
Pricing Tier Four | Minimum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 2 |
Pricing Tier Four | Maximum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 2.75 |
Pricing Tier Four | SOFR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.25% |
Pricing Tier Four | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.25% |
Pricing Tier Five | Minimum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 1.50 |
Pricing Tier Five | Maximum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 2 |
Pricing Tier Five | SOFR | |
Debt Instrument [Line Items] | |
Margin percentage | 1.125% |
Pricing Tier Five | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0.125% |
Pricing Tier Six | Maximum | |
Debt Instrument [Line Items] | |
Pricing tier net leverage ratio | 1.50 |
Pricing Tier Six | SOFR | |
Debt Instrument [Line Items] | |
Margin percentage | 1% |
Pricing Tier Six | Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 0% |
DEBT - Schedule of Fair Value o
DEBT - Schedule of Fair Value of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Carrying Amount | 2018 Coty Credit Agreement | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 0 | $ 1,412.6 |
Fair Value | 2018 Coty Credit Agreement | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 0 | 1,393.5 |
Senior Secured Notes | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 3,716.7 | 2,161 |
Senior Secured Notes | Fair Value | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 3,719.7 | 2,066.9 |
Senior Unsecured Notes | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 192.7 | 669 |
Senior Unsecured Notes | Fair Value | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 192.8 | 661.5 |
Brazilian Credit Facility | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 0 | 31.9 |
Brazilian Credit Facility | Fair Value | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 0 | $ 32.2 |
DEBT - Long-term Debt Repayment
DEBT - Long-term Debt Repayment Schedule (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2025 | $ 0 |
2026 | 1,590.8 |
2027 | 534.3 |
2028 | 0 |
2029 | 1,034.3 |
Thereafter | 750 |
Total | $ 3,909.4 |
DEBT - Covenants (Details)
DEBT - Covenants (Details) | 12 Months Ended |
Jun. 30, 2024 | |
Line of Credit | Maximum | |
Debt Instrument [Line Items] | |
Maximum total net leverage ratio covenant | 5.95 |
Line of Credit | Minimum | |
Debt Instrument [Line Items] | |
Maximum total net leverage ratio covenant | 1 |
June 30, 2024 through July 11, 2028 | |
Debt Instrument [Line Items] | |
Total net leverage ratio | 4 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Jun. 30, 2024 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, lease term | 4 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, lease term | 25 years |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Lease Cost: | |||
Operating lease cost | $ 74.5 | $ 76.2 | $ 90.4 |
Short-term lease cost | 3.4 | 0.9 | 1.2 |
Variable lease cost | 41.7 | 40.3 | 39.3 |
Sublease income | (16.7) | (15.8) | (20) |
Net lease cost | 102.9 | 101.6 | 110.9 |
Other information: | |||
Operating cash outflows from operating leases | (72) | (73.8) | (83.8) |
Right-of-use assets obtained in exchange for lease obligations | $ 32.6 | $ 25.7 | $ 104.9 |
Weighted-average remaining lease term - real estate | 6 years 9 months 18 days | 7 years 2 months 12 days | 7 years 7 months 6 days |
Weighted-average discount rate - real estate leases | 4.52% | 4.13% | 3.85% |
LEASES - Minimum Lease Payments
LEASES - Minimum Lease Payments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Minimum lease payments | ||
2025 | $ 68.1 | |
2026 | 56 | |
2027 | 49.2 | |
2028 | 37.2 | |
2029 | 33.2 | |
Thereafter | 81.3 | |
Total future lease payments | 325 | |
Less: imputed interest | (48.5) | |
Total present value of lease liabilities | 276.5 | |
Current operating lease liabilities | 57.8 | $ 65.6 |
Long-term operating lease liabilities | 218.7 | $ 247.5 |
Total operating lease liabilities | $ 276.5 |
INCOME TAXES - Income (Loss) fr
INCOME TAXES - Income (Loss) from Operations before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (591.1) | $ (253.6) | $ (277.5) |
Foreign | 795.6 | 958.4 | 704.3 |
Income from continuing operations before income taxes | $ 204.5 | $ 704.8 | $ 426.8 |
INCOME TAXES - Components of Pr
INCOME TAXES - Components of Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Current: | |||
Federal | $ 1.2 | $ 2.6 | $ 6.6 |
State and local | (3.5) | 2.6 | (6) |
Foreign | 107.2 | 120.1 | 152.1 |
Total | 104.9 | 125.3 | 152.7 |
Deferred: | |||
Federal | (36.7) | (61.1) | (2.7) |
State and local | (16.7) | 1 | (12.8) |
Foreign | 43.6 | 116.4 | 27.6 |
Total | (9.8) | 56.3 | 12.1 |
Provision for income taxes on continuing operations | $ 95.1 | $ 181.6 | $ 164.8 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Federal Statutory Tax Rate to Effective Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) from continuing operations before income taxes | $ 204.5 | $ 704.8 | $ 426.8 |
Provision for income taxes at statutory rate | 42.9 | 148 | 89.6 |
State and local taxes—net of federal benefit | (15.9) | 2.8 | (14.9) |
Foreign tax differentials | 20.9 | (10.1) | (16.4) |
Change in valuation allowances | 38.9 | 10.2 | (2.3) |
Change in unrecognized tax benefit | (15.5) | 32.5 | (10.6) |
Permanent differences—net | 7.6 | (4.9) | 25.4 |
Non-deductible executive stock compensation | 19.7 | 27.7 | 37.1 |
Currency Loss | (22.5) | (13.6) | (0.2) |
Dispositions of business assets | 0 | 0 | 12.7 |
Russia exit | 0 | (7) | 24.1 |
Principal relocation revaluation | 27.6 | 0 | 0 |
Nondeductible Interest Expense | 12.1 | 0 | 0 |
Swiss Tax Credits-net of valuation allowance | (37.8) | 0 | 0 |
Tax Rate Change Deferred Tax Liability Revaluation | 24.2 | 0 | 0 |
Other | (7.1) | (4) | 20.3 |
Provision for income taxes on continuing operations | $ 95.1 | $ 181.6 | $ 164.8 |
Effective income tax rate | 46.50% | 25.80% | 38.60% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | 12 Months Ended | |||
Jun. 30, 2024 USD ($) jurisdiction | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Income Tax Contingency [Line Items] | ||||
Increase (decrease) in effective income tax rate from prior year | 20.70% | (12.80%) | ||
Increase from change in deferred tax assets valuation allowance from prior year | 17.60% | |||
Increase in principal relocation from prior year | 13.50% | |||
Increase in tax rate change deferred tax liability revaluation from prior year | 11.80% | |||
Increase in foreign income tax rate differentia from prior year | 11.70% | |||
Decrease in Swiss tax credits-net of valuation allowance from prior year | 18.50% | |||
Swiss tax credit | $ 97.1 | |||
Swiss tax credits, expense (benefit), net of valuation allowance | $ (37.8) | $ 0 | $ 0 | |
Increase (decrease) in tax contingency from prior year | (12.20%) | |||
Decrease from Russia market exit from prior year | 6.60% | |||
Decrease in other nondeductible expense from prior year | 6.60% | |||
Decrease in non-deductible executive stock compensation from prior year | 4.80% | |||
Decrease in disposition of asset from prior year | 3% | |||
Decrease in currency loss from prior year | 1.90% | |||
Tax loss carry forwards subject to expiration | $ 482.7 | |||
Valuation allowance | 151.4 | $ 60.7 | ||
Unrecognized tax benefits | 215.3 | 235.5 | 251.6 | $ 279.9 |
Unrecognized tax benefits that would impact effective tax rate | 169.9 | |||
Unrecognized tax benefits, including accrued interest and penalties | 200.2 | 218.6 | ||
Unrecognized tax benefits, interest | (2.4) | 7.8 | 4.2 | |
Unrecognized tax benefits, penalties | 0 | 0 | $ 0 | |
Accrued interest and penalties | $ 30.2 | 33.1 | ||
Number of tax jurisdictions | jurisdiction | 40 | |||
Income tax benefit | $ 19 | $ 18.4 | ||
Amount of decrease in UTBs | $ 32.9 | |||
Wella Business | ||||
Income Tax Contingency [Line Items] | ||||
Increase in foreign income tax rate differentia from prior year | 2.40% | |||
Increase (decrease) in tax contingency from prior year | 7.10% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Deferred income tax assets: | ||
Inventories | $ 7 | $ 7.5 |
Accruals and allowances | 62.1 | 54.9 |
Sales returns | 15.2 | 19.1 |
Share-based compensation | 5.3 | 4.8 |
Employee benefits | 55.7 | 55.6 |
Net operating loss carry forwards and tax credits | 308.6 | 241.4 |
Capital loss carry forwards | 0.2 | 0.3 |
Interest expense limitation carry forward | 102.8 | 47.5 |
Lease liability | 26 | 28.6 |
Principal relocation lease | 337.7 | 424 |
Property, plant and equipment | 21.1 | 13 |
Other | 58.5 | 48.4 |
Less: valuation allowances | (151.4) | (60.7) |
Net deferred income tax assets | 848.8 | 884.4 |
Deferred income tax liabilities: | ||
Intangible assets | 772.4 | 817.4 |
Licensing rights | 30.2 | 27.8 |
Right of use asset | 26.3 | 28.6 |
Investment in partnerships | 61.1 | 55.2 |
Other | 17.9 | 25.3 |
Deferred income tax liabilities | 907.9 | 954.3 |
Net deferred income tax (liability) asset | $ (59.1) | $ (69.9) |
INCOME TAXES - Expirations of T
INCOME TAXES - Expirations of Tax Loss Carry Forwards (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 482.7 |
2025 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 3.5 |
2026 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 8.1 |
2027 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 33.1 |
2028 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 132.5 |
2029 and thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 305.5 |
United States | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | 2025 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | 2026 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | 2027 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | 2028 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | 2029 and thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
Western Europe | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 186 |
Western Europe | 2025 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0.1 |
Western Europe | 2026 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
Western Europe | 2027 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 12.9 |
Western Europe | 2028 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 115.9 |
Western Europe | 2029 and thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 57.1 |
Rest of World | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 296.7 |
Rest of World | 2025 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 3.4 |
Rest of World | 2026 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 8.1 |
Rest of World | 2027 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 20.2 |
Rest of World | 2028 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 16.6 |
Rest of World | 2029 and thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 248.4 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefit Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 235.5 | $ 251.6 | $ 279.9 |
Additions based on tax positions related to the current year | 1.3 | 6.7 | 1.7 |
Additions for tax positions of prior years | 15.8 | 0.7 | 20.8 |
Reductions for tax positions of prior years | (19) | (1.4) | (29.4) |
Settlements | (1.2) | (4.6) | (0.2) |
Lapses in statutes of limitations | (17.8) | (13.8) | (14.1) |
Foreign currency translation | 0.7 | (3.7) | (7.1) |
Ending balance | $ 215.3 | $ 235.5 | $ 251.6 |
INTEREST EXPENSE, NET (Details)
INTEREST EXPENSE, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest Income (Expense), Operating [Abstract] | |||
Interest expense, net | $ 251.6 | $ 261.1 | $ 241.2 |
Foreign exchange losses (gains), net of derivative contracts | 16.5 | 12.2 | (10) |
Interest income | (16.1) | (15.4) | (7.2) |
Total interest expense, net | $ 252 | $ 257.9 | $ 224 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service period | 90 days | ||
Percent of company match to plan | 100% | ||
Percent of employee salary eligible for contribution | 6% | ||
Curtailment gain | $ 0.1 | $ 0.7 | $ 1.3 |
Actuarial loss (gain) | (4.1) | 20.7 | |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial loss (gain) | 8.6 | 17.4 | |
Gain (loss) on plan assets | 3.7 | (1.9) | |
Other Post-Employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | 0 | 0 | 0 |
Actuarial loss (gain) | 4.5 | 3.3 | |
Expected contributions | 2.1 | ||
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | 15.6 | 13.7 | 13.6 |
U.S. | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | 0 | 0 | 0 |
Actuarial loss (gain) | (0.1) | 0.8 | |
Accumulated benefit obligation | 12.5 | 13 | |
Expected contributions | 1.3 | ||
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | 10.9 | 9.6 | 9.7 |
International | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | 0.1 | 0.7 | 1.3 |
Actuarial loss (gain) | (8.5) | 16.6 | |
Accumulated benefit obligation | 351.9 | 346.3 | |
Expected contributions | 15.9 | ||
International | Transformation Plan | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | 0.1 | 0.7 | 1.3 |
Settlement loss related to restructuring activities | 0 | 0.2 | 1.8 |
International | Turnaround Plan, Current Year Restructuring Actions | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement loss related to restructuring activities | $ 0 | $ 0 | $ 1.4 |
EMPLOYEE BENEFIT PLANS - Reconc
EMPLOYEE BENEFIT PLANS - Reconciliation of the Projected Benefit Obligations, Plan Assets, Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |||
Defined Benefit Plan Net Periodic Benefit Cost Credit Interest Cost Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | Consolidated Financial Statements | Consolidated Financial Statements | Consolidated Financial Statements |
Change in benefit obligation | |||
Benefit obligation—July 1 | $ 404.6 | $ 397 | |
Service cost | 5.6 | 5.4 | $ 9.9 |
Interest cost | 15 | 13.3 | 7.2 |
Plan participants’ contributions | 1.6 | 1.3 | |
Benefits paid | (18.6) | (17.8) | |
New employees transfers (out)/in | (0.8) | 1 | |
Premiums paid | (0.6) | (0.5) | |
Pension curtailment | (0.1) | (0.7) | |
Other | 0 | 16.2 | |
Pension settlement | (0.1) | (4.2) | |
Actuarial loss (gain) | 4.1 | (20.7) | |
Effect of exchange rates | (5.5) | 14.3 | |
Benefit obligation—June 30 | 405.2 | 404.6 | 397 |
Change in plan assets | |||
Fair value of plan assets—July 1 | 121 | 101.5 | |
Actual return on plan assets | 8.6 | 1.5 | |
Employer contributions | 18.2 | 16.9 | |
Plan participants’ contributions | 1.7 | 1.3 | |
Benefits paid | (18.6) | (17.8) | |
New employees transfers (out)/in | (0.8) | 1 | |
Premiums paid | (0.6) | (0.5) | |
Plan settlements | (0.1) | (4.2) | |
Other | 0 | 16.2 | |
Effect of exchange rates | (1.2) | 5.1 | |
Fair value of plan assets—June 30 | 128.2 | 121 | 101.5 |
Funded status | (277) | (283.6) | |
Pension Plans | |||
Change in benefit obligation | |||
Actuarial loss (gain) | (8.6) | (17.4) | |
Other Post-Employment Benefits | |||
Change in benefit obligation | |||
Benefit obligation—July 1 | 36 | 38.8 | |
Service cost | 0.5 | 0.6 | 0.8 |
Interest cost | 1.5 | 1.7 | 0.8 |
Plan participants’ contributions | 0.1 | 0.2 | |
Benefits paid | (1.8) | (1.9) | |
New employees transfers (out)/in | 0 | 0 | |
Premiums paid | 0 | 0 | |
Pension curtailment | 0 | 0 | |
Other | 0 | 0 | |
Pension settlement | 0 | 0 | |
Actuarial loss (gain) | (4.5) | (3.3) | |
Effect of exchange rates | (0.1) | (0.1) | |
Benefit obligation—June 30 | 31.7 | 36 | 38.8 |
Change in plan assets | |||
Fair value of plan assets—July 1 | 0.1 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 1.7 | 1.8 | |
Plan participants’ contributions | 0.2 | 0.2 | |
Benefits paid | (1.8) | (1.9) | |
New employees transfers (out)/in | 0 | 0 | |
Premiums paid | 0 | 0 | |
Plan settlements | 0 | 0 | |
Other | 0 | 0 | |
Effect of exchange rates | 0 | 0 | |
Fair value of plan assets—June 30 | 0.2 | 0.1 | 0 |
Funded status | (31.5) | (35.9) | |
United States | Pension Plans | |||
Change in benefit obligation | |||
Benefit obligation—July 1 | 13 | 14.5 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0.7 | 0.7 | 0.5 |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (1.3) | (1.4) | |
New employees transfers (out)/in | 0 | 0 | |
Premiums paid | 0 | 0 | |
Pension curtailment | 0 | 0 | |
Other | 0 | 0 | |
Pension settlement | 0 | 0 | |
Actuarial loss (gain) | 0.1 | (0.8) | |
Effect of exchange rates | 0 | 0 | |
Benefit obligation—June 30 | 12.5 | 13 | 14.5 |
Change in plan assets | |||
Fair value of plan assets—July 1 | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 1.3 | 1.4 | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (1.3) | (1.4) | |
New employees transfers (out)/in | 0 | 0 | |
Premiums paid | 0 | 0 | |
Plan settlements | 0 | 0 | |
Other | 0 | 0 | |
Effect of exchange rates | 0 | 0 | |
Fair value of plan assets—June 30 | 0 | 0 | 0 |
Funded status | (12.5) | (13) | |
Fair value of plan assets | 0 | 0 | |
International | Pension Plans | |||
Change in benefit obligation | |||
Benefit obligation—July 1 | 355.6 | 343.7 | |
Service cost | 5.1 | 4.8 | 9.1 |
Interest cost | 12.8 | 10.9 | 5.9 |
Plan participants’ contributions | 1.5 | 1.1 | |
Benefits paid | (15.5) | (14.5) | |
New employees transfers (out)/in | (0.8) | 1 | |
Premiums paid | (0.6) | (0.5) | |
Pension curtailment | (0.1) | (0.7) | |
Other | 0 | 16.2 | |
Pension settlement | (0.1) | (4.2) | |
Actuarial loss (gain) | 8.5 | (16.6) | |
Effect of exchange rates | (5.4) | 14.4 | |
Benefit obligation—June 30 | 361 | 355.6 | 343.7 |
Change in plan assets | |||
Fair value of plan assets—July 1 | 120.9 | 101.5 | |
Actual return on plan assets | 8.6 | 1.5 | |
Employer contributions | 15.2 | 13.7 | |
Plan participants’ contributions | 1.5 | 1.1 | |
Benefits paid | (15.5) | (14.5) | |
New employees transfers (out)/in | (0.8) | 1 | |
Premiums paid | (0.6) | (0.5) | |
Plan settlements | (0.1) | (4.2) | |
Other | 0 | 16.2 | |
Effect of exchange rates | (1.2) | 5.1 | |
Fair value of plan assets—June 30 | 128 | 120.9 | $ 101.5 |
Funded status | (233) | (234.7) | |
Fair value of plan assets | 112.2 | $ 106.2 | |
International | Pension Plans | P & G Plans | |||
Change in plan assets | |||
Fair value of plan assets | $ 16.2 |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amount Recognized in Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | $ 1.8 | $ 1.4 |
Current liabilities | (3.6) | (4.3) |
Noncurrent liabilities | (275.2) | (280.7) |
Funded status | (277) | (283.6) |
AOC(L)/I | 67.4 | 76 |
Net amount recognized | (209.6) | (207.6) |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (2.1) | (2.5) |
Noncurrent liabilities | (29.4) | (33.4) |
Funded status | (31.5) | (35.9) |
AOC(L)/I | 19.1 | 18.5 |
Net amount recognized | (12.4) | (17.4) |
United States | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (1.3) | (1.3) |
Noncurrent liabilities | (11.2) | (11.7) |
Funded status | (12.5) | (13) |
AOC(L)/I | 0.5 | 1.4 |
Net amount recognized | (12) | (11.6) |
International | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 1.8 | 1.4 |
Current liabilities | (0.2) | (0.5) |
Noncurrent liabilities | (234.6) | (235.6) |
Funded status | (233) | (234.7) |
AOC(L)/I | 47.8 | 56.1 |
Net amount recognized | $ (185.2) | $ (178.6) |
EMPLOYEE BENEFIT PLANS - Pensio
EMPLOYEE BENEFIT PLANS - Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets (Details) - Pension Plans - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
United States | ||
Pension plans with accumulated benefit obligations in excess of plan assets | ||
Projected benefit obligation | $ 12.5 | $ 13 |
Accumulated benefit obligation | 12.5 | 13 |
Fair value of plan assets | 0 | 0 |
Pension plans with projected benefit obligations in excess of plan assets | ||
Projected benefit obligation | 12.5 | 13 |
Accumulated benefit obligation | 12.5 | 13 |
Fair value of plan assets | 0 | 0 |
International | ||
Pension plans with accumulated benefit obligations in excess of plan assets | ||
Projected benefit obligation | 346.8 | 342 |
Accumulated benefit obligation | 338.7 | 333.7 |
Fair value of plan assets | 112.2 | 106.2 |
Pension plans with projected benefit obligations in excess of plan assets | ||
Projected benefit obligation | 346.8 | 342 |
Accumulated benefit obligation | 338.7 | 333.7 |
Fair value of plan assets | $ 112.2 | $ 106.2 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Net Periodic Benefit Cost Credit Expected Return Loss Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | Expected return on plan assets | ||
Defined Benefit Plan Net Periodic Benefit Cost Credit Amortization Of Prior Service Cost Credit Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | Amortization of prior service (credit) cost | ||
Defined Benefit Plan Net Periodic Benefit Cost Credit Amortization Of Gain Loss Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | Amortization of net (gain) loss | ||
Defined Benefit Plan Net Periodic Benefit Cost Credit Settlement Gain Loss Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | Settlements (gain) loss recognized | ||
Defined Benefit Plan Net Periodic Benefit Cost Credit Curtailment Gain Loss Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | Curtailment (gain) loss recognized | ||
Service cost | $ 5.6 | $ 5.4 | $ 9.9 |
Interest cost | 15 | 13.3 | 7.2 |
Expected return on plan assets | (4.8) | (3.4) | (4.5) |
Amortization of prior service (credit) cost | (0.3) | (0.3) | (0.4) |
Amortization of net (gain) loss | (6.8) | (6) | 0 |
Settlements (gain) loss recognized | 0 | 0.2 | 1.8 |
Curtailment (gain) loss recognized | (0.1) | (0.7) | (1.3) |
Net periodic benefit cost | 8.6 | 8.5 | 12.7 |
Other Post-Employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.5 | 0.6 | 0.8 |
Interest cost | 1.5 | 1.7 | 0.8 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (0.2) | (0.2) | (0.3) |
Amortization of net (gain) loss | (3.5) | (2.4) | (0.2) |
Settlements (gain) loss recognized | 0 | 0 | 0 |
Curtailment (gain) loss recognized | 0 | 0 | 0 |
Net periodic benefit cost | (1.7) | (0.3) | 1.1 |
United States | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0.7 | 0.7 | 0.5 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | 0 | 0 | 0 |
Amortization of net (gain) loss | (0.9) | (2.9) | 0.4 |
Settlements (gain) loss recognized | 0 | 0 | 0 |
Curtailment (gain) loss recognized | 0 | 0 | 0 |
Net periodic benefit cost | (0.2) | (2.2) | 0.9 |
International | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 5.1 | 4.8 | 9.1 |
Interest cost | 12.8 | 10.9 | 5.9 |
Expected return on plan assets | (4.8) | (3.4) | (4.5) |
Amortization of prior service (credit) cost | (0.1) | (0.1) | (0.1) |
Amortization of net (gain) loss | (2.4) | (0.7) | (0.2) |
Settlements (gain) loss recognized | 0 | 0.2 | 1.8 |
Curtailment (gain) loss recognized | (0.1) | (0.7) | (1.3) |
Net periodic benefit cost | $ 10.5 | $ 11 | $ 10.7 |
EMPLOYEE BENEFIT PLANS - Pre-ta
EMPLOYEE BENEFIT PLANS - Pre-tax Amounts Recognized in AOCI (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | $ 66.8 | $ 74.9 |
Prior service credit (cost) | 0.6 | 1.1 |
Total recognized in AOC(L)/I | 67.4 | 76 |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 19.1 | 18.2 |
Prior service credit (cost) | 0 | 0.3 |
Total recognized in AOC(L)/I | 19.1 | 18.5 |
United States | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 0.5 | 1.4 |
Prior service credit (cost) | 0 | 0 |
Total recognized in AOC(L)/I | 0.5 | 1.4 |
International | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 47.2 | 55.3 |
Prior service credit (cost) | 0.6 | 0.8 |
Total recognized in AOC(L)/I | $ 47.8 | $ 56.1 |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Changes in Plan Assets and Benefit Obligations Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | $ (0.4) | $ 18.8 |
Amortization or curtailment recognition of prior service (credit) cost | (0.3) | (0.3) |
Recognized net actuarial (gain) loss | (6.8) | (5.8) |
Effect of exchange rates | (1) | 2.3 |
Total recognized in OCI/(L) | (8.5) | 15 |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 4.5 | 3.3 |
Amortization or curtailment recognition of prior service (credit) cost | (0.2) | (0.2) |
Recognized net actuarial (gain) loss | (3.5) | (2.4) |
Effect of exchange rates | (0.1) | 0.2 |
Total recognized in OCI/(L) | 0.7 | 0.9 |
United States | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | (0.1) | 0.8 |
Amortization or curtailment recognition of prior service (credit) cost | 0 | 0 |
Recognized net actuarial (gain) loss | (0.9) | (2.9) |
Effect of exchange rates | 0 | 0 |
Total recognized in OCI/(L) | (1) | (2.1) |
International | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | (4.8) | 14.7 |
Amortization or curtailment recognition of prior service (credit) cost | (0.1) | (0.1) |
Recognized net actuarial (gain) loss | (2.4) | (0.5) |
Effect of exchange rates | (0.9) | 2.1 |
Total recognized in OCI/(L) | $ (8.2) | $ 16.2 |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Assumptions (Details) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | 4.50% |
Minimum | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rate assumed for next year | 8.30% | 7.10% | 6.70% |
Minimum | Other Post-Employment Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 3.80% | 4.10% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 4.10% | 2.90% | 1.50% |
Maximum | Other Post-Employment Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 5.40% | 5.10% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 5.10% | 4.70% | 2.80% |
U.S. | Minimum | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 5.30% | 4.90% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 4.90% | 4% | 2.40% |
U.S. | Maximum | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 5.40% | 5.30% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 5.30% | 4.70% | 2.60% |
International | Minimum | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 1.50% | 2% | |
Future compensation growth rates | 1% | 1.30% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 2% | 2.30% | 0.30% |
Future compensation growth rates | 1.30% | 1.10% | 1% |
Expected long-term rates of return on plan assets | 3.50% | 2.70% | 1.30% |
International | Maximum | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 3.90% | 4.20% | |
Future compensation growth rates | 3.20% | 3.20% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 4.20% | 3.40% | 1.60% |
Future compensation growth rates | 3.20% | 3.20% | 2.50% |
Expected long-term rates of return on plan assets | 4.50% | 3.80% | 3.80% |
EMPLOYEE BENEFIT PLANS - Target
EMPLOYEE BENEFIT PLANS - Target and Weighted-average Asset Allocations (Details) - Pension Plans - United States | Jun. 30, 2024 | Jun. 30, 2023 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target percentage of plan assets | 40% | |
Actual percentage of plan assets | 35% | 32% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target percentage of plan assets | 50% | |
Actual percentage of plan assets | 38% | 37% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target percentage of plan assets | 11% | |
Actual percentage of plan assets | 27% | 31% |
EMPLOYEE BENEFIT PLANS - Fair V
EMPLOYEE BENEFIT PLANS - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | $ 128.2 | $ 121 | $ 101.5 |
International | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 128 | 120.9 | 101.5 |
International | Pension Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 56.9 | 51.4 | $ 33.6 |
International | Pension Plans | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 128.2 | 121 | |
International | Pension Plans | Recurring | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 71.3 | 69.6 | |
International | Pension Plans | Recurring | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 56.9 | 51.4 | |
International | Pension Plans | Recurring | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 32.8 | 32.1 | |
International | Pension Plans | Recurring | Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 32.8 | 32.1 | |
International | Pension Plans | Recurring | Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Equity securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Corporate securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 38.2 | 37.3 | |
International | Pension Plans | Recurring | Corporate securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 38.2 | 37.3 | |
International | Pension Plans | Recurring | Corporate securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Corporate securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0.3 | 0.2 | |
International | Pension Plans | Recurring | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0.3 | 0.2 | |
International | Pension Plans | Recurring | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Insurance contracts and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 56.9 | 51.4 | |
International | Pension Plans | Recurring | Insurance contracts and other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Insurance contracts and other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0 | 0 | |
International | Pension Plans | Recurring | Insurance contracts and other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | $ 56.9 | $ 51.4 |
EMPLOYEE BENEFIT PLANS - Reco_2
EMPLOYEE BENEFIT PLANS - Reconciliations of Level 3 Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Change in plan assets | ||
Fair value of plan assets—July 1 | $ 121 | $ 101.5 |
Return on plan assets | 8.6 | 1.5 |
Effect of exchange rates | (1.2) | 5.1 |
Fair value of plan assets—June 30 | 128.2 | 121 |
International | Pension Plans | ||
Change in plan assets | ||
Fair value of plan assets—July 1 | 120.9 | 101.5 |
Return on plan assets | 8.6 | 1.5 |
Effect of exchange rates | (1.2) | 5.1 |
Fair value of plan assets—June 30 | 128 | 120.9 |
International | Pension Plans | Level 3 | ||
Change in plan assets | ||
Fair value of plan assets—July 1 | 51.4 | 33.6 |
Return on plan assets | 3.3 | (0.3) |
Purchases, sales and settlements, net | 2.4 | 15.5 |
Effect of exchange rates | (0.2) | 2.6 |
Fair value of plan assets—June 30 | $ 56.9 | $ 51.4 |
EMPLOYEE BENEFIT PLANS - Expect
EMPLOYEE BENEFIT PLANS - Expected Benefit Payments (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2025 | $ 25.6 |
2026 | 22.4 |
2027 | 23.5 |
2028 | 23.5 |
2029 | 25.6 |
2030 - 2032 | 124.7 |
Other Post-Employment Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2025 | 2.1 |
2026 | 2.3 |
2027 | 2.5 |
2028 | 2.6 |
2029 | 2.8 |
2030 - 2032 | 14.6 |
United States | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2025 | 1.3 |
2026 | 1.3 |
2027 | 1.2 |
2028 | 1.2 |
2029 | 1.2 |
2030 - 2032 | 5.1 |
International | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2025 | 22.2 |
2026 | 18.8 |
2027 | 19.8 |
2028 | 19.7 |
2029 | 21.6 |
2030 - 2032 | $ 105 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) € in Millions, shares in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Feb. 29, 2024 USD ($) shares | Dec. 31, 2023 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2019 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 EUR (€) | Nov. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 EUR (€) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $ 196,000,000 | $ 294,000,000 | $ 200,000,000 | |||||||
Accumulated other comprehensive loss | $ (795,100,000) | (662,400,000) | ||||||||
June 2022 Forward Contracts | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Stock repurchase program, authorized amount | 200,000,000 | |||||||||
June 2022 Forward Contracts | Common Class A | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Shares repurchase cash payment | $ 200,000,000 | |||||||||
Shares repurchase by shares (in shares) | shares | 27 | |||||||||
Net investment hedge | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Foreign exchange risk exposure, amount | € | € 1,611.6 | € 701.3 | ||||||||
Other Foreign Currency Translation Adjustments | Net investment hedge | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Accumulated other comprehensive loss | 14,600,000 | (12,200,000) | ||||||||
Cross-currency swap contracts | Net investment hedge | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Notional amount terminated | $ 550,000,000 | |||||||||
Payments for hedge termination | $ 37,600,000 | |||||||||
Notional amount | 1,797,600,000 | 1,653,500,000 | ||||||||
Foreign exchange forward contracts | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Accumulated cash flow hedges in AOCI/(L), net of tax | 2,100,000 | 700,000 | ||||||||
Cash flow hedge to be reclassified from AOCI/(L) during next 12 months | 2,000,000 | |||||||||
Foreign exchange forward contracts | Net investment hedge | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Notional amount | 22,300,000 | 28,000,000 | ||||||||
Foreign exchange forward contracts | Other Foreign Currency Translation Adjustments | Net investment hedge | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Accumulated other comprehensive loss | $ (37,600,000) | (37,600,000) | ||||||||
Interest rate swap contracts | Interest Rate Risk | ||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||
Notional amount terminated | $ 200,000,000 | |||||||||
Payments for hedge termination | $ 1,900,000 | |||||||||
Notional amount | $ 200,000,000 | |||||||||
Cash receipt from interest rate swap contracts | $ 2,100,000 |
DERIVATIVE INSTRUMENTS - Gains
DERIVATIVE INSTRUMENTS - Gains and Losses Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative [Line Items] | |||
Net investment hedges | $ 26.8 | $ (53.9) | $ 36.3 |
Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | 2 | (3.7) | (1) |
Interest rate swap contracts | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | $ (0.1) | $ 5.4 | $ 13.9 |
DERIVATIVE INSTRUMENTS - Amount
DERIVATIVE INSTRUMENTS - Amount of Gains and Losses Reclassified from AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Foreign exchange forward contracts | Cost of sales | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Amount of gain reclassified from AOCI into income | $ (2.6) | $ (1.6) | $ 1.7 |
Foreign exchange forward contracts | Interest expense, net | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Amount of gain reclassified from AOCI into income | 0 | 0 | 0 |
Interest rate swap contracts | Cost of sales | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Amount of gain reclassified from AOCI into income | 0 | 0 | 0 |
Interest rate swap contracts | Interest expense, net | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Amount of gain reclassified from AOCI into income | $ 2 | $ 8.3 | $ (13) |
DERIVATIVE INSTRUMENTS - Amou_2
DERIVATIVE INSTRUMENTS - Amount of Gains and Losses Related Derivative Financial Instruments Not Designated as Hedging Instruments (Details) - Foreign exchange forward contracts - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Selling, general and administrative expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in operations | $ 0.1 | $ (5.1) | $ (0.1) |
Interest income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in operations | (30.1) | (69.3) | 2.7 |
Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in operations | $ (124.2) | $ 168.7 | $ 18.4 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTERESTS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2030 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Redeemable Noncontrolling Interest [Line Items] | |||||
Redeemable noncontrolling interest balances | $ 93.6 | $ 93.5 | $ 69.8 | $ 84.1 | |
Middle East Subsidiary | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Percentage of redeemable noncontrolling interest | 25% | ||||
Scenario, Forecast | Middle East Subsidiary | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Remaining call option percentage | 25% |
REDEEMABLE NONCONTROLLING INT_4
REDEEMABLE NONCONTROLLING INTERESTS - Redeemable Noncontrolling Interest Adjustments (Details) - Middle East Subsidiary | 12 Months Ended |
Jun. 30, 2024 | |
Redeemable Noncontrolling Interest [Line Items] | |
Percentage of redeemable noncontrolling interest | 25% |
Formula of redemption value assumptions, EBIT average period | 3 years |
Formula of redemption value assumptions, multiple applied to EBIT average | 6 |
EQUITY AND CONVERTIBLE PREFER_3
EQUITY AND CONVERTIBLE PREFERRED STOCK - Common Stock (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||
Oct. 02, 2023 USD ($) $ / shares shares | Sep. 18, 2023 shares | Oct. 29, 2021 shares | Jun. 30, 2024 USD ($) vote $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) shares | Oct. 02, 2023 € / shares | |
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) | 1,250,000,000 | 1,250,000,000 | |||||
Common stock, shares outstanding (in shares) | 867,800,000 | 852,800,000 | |||||
Exercise of employee stock options and restricted stock units and issuance of restricted stock | $ | $ 13.5 | $ 0.9 | |||||
Issuance of Class A Common Stock in connection with global offering, net of offering costs (in shares) | 33,000,000 | ||||||
Shares issued (in dollars per share and euro per share) | (per share) | $ 10.80 | € 10.28 | |||||
Deferred offering costs | $ | $ 348.4 | ||||||
Underwriting fees | $ | 10 | ||||||
Professional fees | $ | $ 6 | ||||||
Employee Stock Options, Restricted Stock Units (RSUs) and Employee Stock Ownership Program | |||||||
Class of Stock [Line Items] | |||||||
Exercise of employee stock options and restricted stock units and issuance of restricted stock | $ | $ 13.5 | $ 0.9 | $ 0 | ||||
Restricted Stock Units | JAB Beauty B.V. | Chief Executive Officer | |||||||
Class of Stock [Line Items] | |||||||
Shares contributed by related party (in shares) | 5,000,000 | 10,000,000 | |||||
Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||
Voting rights per share | vote | 1 | ||||||
Common stock, shares authorized (in shares) | 1,250,000,000 | ||||||
Common stock, shares outstanding (in shares) | 867,800,000 | ||||||
Shares issued (in shares) | 9,800,000 | 13,800,000 | 3,300,000 | ||||
Common Class A | JAB Beauty B.V. | |||||||
Class of Stock [Line Items] | |||||||
Parent ownership percentage | 55% | ||||||
Common Class A | Majority Shareholders | JAB Cosmetics B.V. | |||||||
Class of Stock [Line Items] | |||||||
Open market shares acquired by related party (in shares) | 3,000,000 | 0 | 0 | ||||
Convertible Series B Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Shares issued (in shares) | 69,900,000 |
EQUITY AND CONVERTIBLE PREFER_4
EQUITY AND CONVERTIBLE PREFERRED STOCK - Preferred Stock (Details) | 12 Months Ended | ||||||
Jun. 30, 2024 USD ($) vote $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Jun. 30, 2020 $ / shares shares | Aug. 27, 2021 shares | Nov. 16, 2020 shares | Mar. 27, 2017 $ / shares shares | |
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized (in shares) | shares | 20,000,000 | 20,000,000 | |||||
Preferred stock, shares issued (in shares) | shares | 1,000,000 | ||||||
Preferred stock, shares outstanding (in shares) | shares | 1,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||
Total share-based compensation (income) expense | $ 91,800,000 | $ 137,600,000 | $ 197,800,000 | ||||
Preferred stock classified as a liability | 0 | 800,000 | |||||
Dividends, preferred stock | 13,200,000 | 13,200,000 | |||||
Dividends | 0 | ||||||
Employee taxes | 100,000 | 200,000 | 1,400,000 | ||||
Selling, general and administrative expenses | |||||||
Class of Stock [Line Items] | |||||||
Total share-based compensation (income) expense | 91,800,000 | 138,700,000 | 202,000,000 | ||||
Additional Paid-in Capital | |||||||
Class of Stock [Line Items] | |||||||
Dividends, preferred stock | 13,200,000 | 13,200,000 | |||||
Noncash dividend | 0 | 100,000 | 800,000 | ||||
Former Board of Directors Chairman | Selling, general and administrative expenses | |||||||
Class of Stock [Line Items] | |||||||
Total share-based compensation (income) expense | (800,000) | 200,000 | (200,000) | ||||
Restricted Stock Units | |||||||
Class of Stock [Line Items] | |||||||
Total share-based compensation (income) expense | 78,500,000 | 131,900,000 | 197,200,000 | ||||
Payment of ordinary dividends, common stock, declared during the period | 300,000 | 700,000 | |||||
Restricted Stock Units and Phantom Units | Accrued Expenses and Other Current Liabilities | |||||||
Class of Stock [Line Items] | |||||||
Noncash dividend | 800,000 | 1,000,000 | |||||
Restricted Stock Units and Phantom Units | Other Noncurrent Liabilities | |||||||
Class of Stock [Line Items] | |||||||
Noncash dividend | $ 0 | 100,000 | |||||
Series A Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares authorized (in shares) | shares | 1,000,000 | ||||||
Preferred stock, shares issued (in shares) | shares | 1,000,000 | 1,000,000 | |||||
Preferred stock, shares outstanding (in shares) | shares | 1,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||
Number of votes entitled to holders | vote | 0 | ||||||
Preferred stock, redemption price (in dollars per share) | $ / shares | $ 0.01 | ||||||
Convertible Series B Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||
Investment agreement, shares to be sold (in shares) | shares | 1,000,000 | ||||||
Investment agreement, sale of stock (in dollars per share) | $ / shares | $ 1,000 | ||||||
Preferred stock dividend rate | 9% | ||||||
Dividends, preferred stock | $ 13,200,000 | 13,200,000 | 35,200,000 | ||||
Payment of ordinary dividends, preferred stock and preference stock, declared during the period | 13,200,000 | 13,200,000 | 55,800,000 | ||||
Converted dividends | 0 | $ 0 | $ 50,100,000 | ||||
Noncash dividend | $ 3,300,000 | ||||||
Convertible Series B Preferred Stock | KKR | HFS Holdings S.á r.l. | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares issued (in shares) | shares | 146,057 | 146,057 |
EQUITY AND CONVERTIBLE PREFER_5
EQUITY AND CONVERTIBLE PREFERRED STOCK - Treasury Stock - Share Repurchase Program (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 10, 2021 | Feb. 29, 2024 | Dec. 31, 2022 | Jun. 30, 2024 | Dec. 31, 2023 | Nov. 30, 2023 | Nov. 13, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Feb. 03, 2016 | |
Class of Stock [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $ 196,000,000 | $ 294,000,000 | $ 200,000,000 | |||||||
Fair value of the shares repurchased | $ 350,600,000 | |||||||||
Interest rate basic spread on variable rate | 9.80% | 8.20% | ||||||||
Level 2 | ||||||||||
Class of Stock [Line Items] | ||||||||||
Fair value forward contract | $ 12,400,000 | $ 219,800,000 | ||||||||
June 2022 Forward Contracts | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock repurchase program, authorized amount | 200,000,000 | |||||||||
Execution fees | $ 2,000,000 | |||||||||
Fair value of the shares repurchased | $ 350,600,000 | |||||||||
December 2022 Forward Contracts | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $ 196,000,000 | |||||||||
Execution fees | $ 2,000,000 | $ 2,900,000 | ||||||||
Common Class A | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance and sale of stock (in shares) | 19,944,701 | |||||||||
Common Class A | June 2022 Forward Contracts | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares repurchase cash payment | $ 200,000,000 | |||||||||
Repurchase of Class A Common Stock pursuant to forward repurchase contracts (in shares) | 27,000,000 | |||||||||
Common Class A | December 2022 Forward Contracts | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance and sale of stock (in shares) | 25,000,000 | |||||||||
Common Class A | December 2022 Forward Contracts | Counterparty One | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance and sale of stock (in shares) | 11,000,000 | |||||||||
Common Class A | December 2022 Forward Contracts | Counterparty Two | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance and sale of stock (in shares) | 11,000,000 | |||||||||
Common Class A | December 2022 Forward Contracts | Counterparty Three | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance and sale of stock (in shares) | 11,500,000 | |||||||||
Incremental Repurchase Program | Common Class A | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $ 500,000,000 | |||||||||
Amount remaining under current repurchase program | $ 796,800,000 | |||||||||
Share Repurchase Program | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number additional of shares authorized to be repurchased (in shares) | 600,000,000 |
EQUITY AND CONVERTIBLE PREFER_6
EQUITY AND CONVERTIBLE PREFERRED STOCK - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 3,997.4 | $ 3,345.8 | $ 3,062.2 |
Total other comprehensive (loss) income, net of tax | (132.7) | 55.9 | (396.9) |
Ending balance | 4,011.7 | 3,997.4 | 3,345.8 |
Total | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (662.4) | (717.9) | (321.9) |
Other comprehensive income (loss) before reclassifications | (127.6) | 65.4 | |
Net amounts reclassified from AOCI/(L) | (5.1) | (9.9) | |
Total other comprehensive (loss) income, net of tax | (132.7) | 55.5 | |
Ending balance | (795.1) | (662.4) | (717.9) |
(Losses) Gains on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 0.7 | 4.3 | |
Other comprehensive income (loss) before reclassifications | 1.2 | 1.7 | |
Net amounts reclassified from AOCI/(L) | 0.2 | (5.3) | |
Total other comprehensive (loss) income, net of tax | 1.4 | (3.6) | |
Ending balance | 2.1 | 0.7 | 4.3 |
(Losses) Gains on Net Investment Hedge | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (49.8) | 4.1 | |
Other comprehensive income (loss) before reclassifications | 26.8 | (53.9) | |
Net amounts reclassified from AOCI/(L) | 0 | 0 | |
Total other comprehensive (loss) income, net of tax | 26.8 | (53.9) | |
Ending balance | (23) | (49.8) | 4.1 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (667.9) | (770.8) | |
Other comprehensive income (loss) before reclassifications | (155.1) | 102.9 | |
Net amounts reclassified from AOCI/(L) | 0 | 0 | |
Total other comprehensive (loss) income, net of tax | (155.1) | 102.9 | |
Ending balance | (823) | (667.9) | (770.8) |
Pension and Other Post-Employment Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 54.6 | 44.5 | |
Other comprehensive income (loss) before reclassifications | (0.5) | 14.7 | |
Net amounts reclassified from AOCI/(L) | (5.3) | (4.6) | |
Total other comprehensive (loss) income, net of tax | (5.8) | 10.1 | |
Ending balance | 48.8 | 54.6 | $ 44.5 |
Amortization of actuarial losses | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Net amounts reclassified from AOCI/(L) | 7.1 | 6.1 | |
Amortization of actuarial gains (losses), tax | $ 1.8 | $ 1.5 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 114.5 | ||
Number of shares available for grant (in shares) | 46 | ||
Total share-based compensation (income) expense | $ 91.8 | $ 137.6 | $ 197.8 |
Allocated share-based compensation income | 0 | (1.1) | (4.2) |
Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation (income) expense | 91.8 | 138.7 | 202 |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized share-based compensation expense | $ 0.1 | ||
Weighted-average period for unrecognized share-based compensation | 4 months 17 days | ||
Performance Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation (income) expense | $ 10.7 | $ 1.5 | $ 0 |
Total unrecognized share-based compensation expense | $ 30.3 | ||
Weighted-average period for unrecognized share-based compensation | 2 years 2 months 4 days | ||
RSUs and Other Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized share-based compensation expense | $ 134.7 | ||
Weighted-average period for unrecognized share-based compensation | 3 years 3 months 18 days |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS - Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation (income) expense | $ 91.8 | $ 137.6 | $ 197.8 |
Income tax benefits recognized in earnings related to share-based compensation | 3 | 2.2 | 1.6 |
Excess tax benefits related to share-based compensation | 1.1 | 0 | 0.2 |
Share based compensation expense | 88.5 | 134.7 | 195.4 |
Additional Paid-in Capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation expense | 88.5 | 134.7 | 195.4 |
Equity plan expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation (income) expense | 88.5 | 134.7 | 195.4 |
Liability plan expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation (income) expense | 0.3 | 1.2 | 0.1 |
Fringe expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation (income) expense | $ 3 | $ 1.7 | $ 2.3 |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS - Nonqualified Stock Options Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning balance (in shares) | 3.6 | 5.1 | |
Intrinsic value of options exercised | $ 1.2 | $ 0.1 | $ 0 |
Share-based compensation expense | $ 91.8 | 137.6 | 197.8 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding options grant price (in dollars per share) | $ 11.08 | ||
Exercisable options grant price (in dollars per share) | 11.08 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding options grant price (in dollars per share) | 19.17 | ||
Exercisable options grant price (in dollars per share) | $ 19.17 | ||
Nonqualified Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Nonqualified stock options contractual life | 10 years | ||
Share-based compensation expense | $ 0.3 | $ 1.3 | $ (0.9) |
Nonqualified Options | Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 1.7 | ||
Nonqualified Options | Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 1.9 | ||
Nonqualified Options | Tranche Two, Subtranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Award vesting rights, percentage | 60% | ||
Nonqualified Options | Tranche Two, Subtranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Award vesting rights, percentage | 20% | ||
Nonqualified Options | Tranche Two, Subtranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Award vesting rights, percentage | 20% |
SHARE-BASED COMPENSATION PLAN_5
SHARE-BASED COMPENSATION PLANS - Outstanding Nonqualified Stock Options Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Jun. 30, 2024 USD ($) $ / shares shares | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 5.1 |
Exercised (in shares) | shares | (1.2) |
Forfeited (in shares) | shares | (0.3) |
Outstanding, ending balance (in shares) | shares | 3.6 |
Vested and expected to vest (in shares) | shares | 3.5 |
Exercisable (in shares) | shares | 3.3 |
Weighted Average Exercise Price | |
Outstanding, weighted average exercise price, beginning balance (in dollars per share) | $ / shares | $ 13.06 |
Exercised (in dollars per share) | $ / shares | 11.08 |
Forfeited (in dollars per share) | $ / shares | 11.79 |
Outstanding, weighted average exercise price, ending balance (in dollars per share) | $ / shares | 13.82 |
Vested and expected to vest (in dollars per share) | $ / shares | 13.85 |
Exercisable (in dollars per share) | $ / shares | $ 13.98 |
Aggregate Intrinsic Value and Weighted Average Remaining Contractual Term | |
Vested and expected to vest, aggregate intrinsic value | $ | $ 0 |
Exercisable, aggregate intrinsic value | $ | $ 0 |
Vested and expected to vest, weighted average remaining contractual term | 3 years 10 months 28 days |
Exercisable, weighted average remaining contractual term | 3 years 9 months 18 days |
SHARE-BASED COMPENSATION PLAN_6
SHARE-BASED COMPENSATION PLANS - Nonvested Nonqualified Stock Options (Details) shares in Millions | 12 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Number of Shares | |
Non-vested, beginning balance (in shares) | shares | 1 |
Vested (in Shares) | shares | (0.4) |
Forfeited (in shares) | shares | (0.3) |
Non-vested, ending balance (in shares) | shares | 0.3 |
Weighted Average Grant Date Fair Value | |
Non-vested, beginning balance (in dollars per share) | $ / shares | $ 3.02 |
Vested (in dollars per share) | $ / shares | 2.93 |
Forfeited (in dollars per share) | $ / shares | 2.88 |
Non-vested, ending balance (in dollars per share) | $ / shares | $ 3.41 |
SHARE-BASED COMPENSATION PLAN_7
SHARE-BASED COMPENSATION PLANS - Series A Preferred Stock Narrative (Details) - Series A Preferred Stock - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment arrangement (income) expense | $ (0.8) | $ 0.2 | $ (0.2) |
Nonqualified stock options contractual life | 7 years |
SHARE-BASED COMPENSATION PLAN_8
SHARE-BASED COMPENSATION PLANS - Significant Assumptions Used in Binomial Lattice Model (Details) (Details) - Series A Preferred Stock | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life, in years | 8 months 26 days | 1 year 8 months 26 days |
Expected volatility | 66.31% | 65.57% |
Risk-free rate of return | 5.44% | 2.89% |
Dividend yield on Class A Common Stock | 0% | 1.56% |
SHARE-BASED COMPENSATION PLAN_9
SHARE-BASED COMPENSATION PLANS - Outstanding Preferred Stock Activity (Details) - Series A Preferred Stock $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Jun. 30, 2024 USD ($) $ / shares shares | |
Shares | |
Outstanding, beginning of period (in shares) | shares | 1 |
Forfeited (in shares) | shares | 0 |
Outstanding, end of period (in shares) | shares | 1 |
Vested and expected to vest (in shares) | shares | 0 |
Exercisable (in shares) | shares | 0 |
Weighted Average Exercise Price | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 22.39 |
Forfeited (in dollars per share) | $ / shares | 0 |
Outstanding, end of period (in dollars per share) | $ / shares | 0 |
Vested and expected to vest (in dollars per share) | $ / shares | 0 |
Exercisable (in dollars per share) | $ / shares | $ 0 |
Aggregate Intrinsic Value and Weighted Average Remaining Contractual Term | |
Vested and expected to vest, aggregate intrinsic value | $ | $ 0 |
Exercisable, aggregate intrinsic value | $ | $ 0 |
Vested and expected to vest, weighted average remaining contractual term | 0 years |
Exercisable, weighted average remaining contractual term | 0 years |
SHARE-BASED COMPENSATION PLA_10
SHARE-BASED COMPENSATION PLANS - Long-term Equity Program for CEO Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 28, 2023 | Sep. 18, 2023 | May 04, 2023 | Oct. 29, 2021 | Oct. 14, 2021 | Oct. 14, 2020 | Jun. 30, 2024 | Oct. 02, 2023 | Aug. 31, 2023 | Jun. 30, 2023 | Aug. 31, 2022 | Jun. 30, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Common Class A | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | |||||||||||
Restricted Stock Units | Tranche One | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 25% | 33.30% | ||||||||||
Restricted Stock Units | Tranche Two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 25% | 33.30% | ||||||||||
Restricted Stock Units | Tranche Three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 50% | 33.30% | ||||||||||
Performance Restricted Stock Units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total unrecognized share-based compensation expense | $ 30.3 | |||||||||||
Chief Executive Officer | Restricted Stock Units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares to be granted for awards (in shares) | 10,416,667 | |||||||||||
Chief Executive Officer | Restricted Stock Units | JAB Beauty B.V. | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares contributed by related party (in shares) | 5,000,000 | 10,000,000 | ||||||||||
Chief Executive Officer | Restricted Stock Units | Second Award | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares to be granted for awards (in shares) | 10,416,667 | |||||||||||
Vesting period | 5 years | |||||||||||
Total unrecognized share-based compensation expense | $ 109.6 | |||||||||||
Chief Executive Officer | Restricted Stock Units | Common Class A | Second Award | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | |||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche One | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares to be granted for awards (in shares) | 10,000,000 | |||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche One | JAB Beauty B.V. | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares contributed by related party (in shares) | 10,000,000 | |||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche One | Second Award | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 15% | |||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche One | Common Class A | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | |||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche Two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares to be granted for awards (in shares) | 10,000,000 | |||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche Two | Award | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares to be granted for awards (in shares) | 5,000,000 | 10,000,000 | ||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche Two | Second Award | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 15% | |||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche Two | Common Class A | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | |||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche Three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares to be granted for awards (in shares) | 10,000,000 | |||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche Three | Award | JAB Beauty B.V. | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares contributed by related party (in shares) | 5,000,000 | |||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche Three | Second Award | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 20% | |||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche Three | Common Class A | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | |||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche Four | Second Award | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 20% | |||||||||||
Chief Executive Officer | Restricted Stock Units | Tranche Five | Second Award | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 30% | |||||||||||
Chief Executive Officer | Performance Restricted Stock Units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares to be granted for awards (in shares) | 2,083,333 | 10,416,665 | ||||||||||
Vesting period | 5 years | |||||||||||
Performance objectives term | 3 years | |||||||||||
Chief Executive Officer | Restricted Stock Units And Performance Restricted Stock Units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 7 years |
SHARE-BASED COMPENSATION PLA_11
SHARE-BASED COMPENSATION PLANS - Restricted Share Units Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation (income) expense | $ 91.8 | $ 137.6 | $ 197.8 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 4.4 | ||
Total share-based compensation (income) expense | $ 78.5 | 131.9 | 197.2 |
Total intrinsic value of restricted shares vested and settled | 166.7 | 34.3 | 33.5 |
Restricted Stock Units | Chief Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation (income) expense | $ 36.5 | $ 96.6 | $ 170.9 |
Restricted Stock Units | Omnibus Long-Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 4.1 | 17.2 | 4.6 |
Restricted Stock Units | 2007 Stock Plan for Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 0.3 | 0.3 | 0.3 |
SHARE-BASED COMPENSATION PLA_12
SHARE-BASED COMPENSATION PLANS - Restricted Share Units Activity & Performance Restricted Stock Units (Details) shares in Millions, $ in Millions | 12 Months Ended |
Jun. 30, 2024 USD ($) shares | |
Restricted Stock Units | |
Shares | |
Outstanding, beginning balance (in shares) | 33.9 |
Granted (in shares) | 4.4 |
Settled (in shares) | (15.1) |
Cancelled (in shares) | (1.1) |
Outstanding, ending balance (in shares) | 22.1 |
Vested and expected to vest (in shares) | 19.5 |
Vested and expected to vest, aggregate intrinsic value | $ | $ 195.7 |
Vested and expected to vest, weighted average remaining contractual term | 2 years 10 months 6 days |
Performance Restricted Stock Units | |
Shares | |
Outstanding, beginning balance (in shares) | 1.2 |
Granted (in shares) | 4 |
Settled (in shares) | 0 |
Cancelled (in shares) | (0.1) |
Outstanding, ending balance (in shares) | 5.1 |
Vested and expected to vest (in shares) | 4.4 |
Vested and expected to vest, aggregate intrinsic value | $ | $ 43.9 |
Vested and expected to vest, weighted average remaining contractual term | 2 years 18 days |
SHARE-BASED COMPENSATION PLA_13
SHARE-BASED COMPENSATION PLANS - Outstanding and Nonvested Restricted Share Units & Performance Restricted Stock Units Activity (Details) shares in Millions | 12 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Restricted Stock Units | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 33.4 |
Granted (in shares) | shares | 4.4 |
Vested (in shares) | shares | (15.4) |
Cancelled (in shares) | shares | (1.1) |
Outstanding, ending balance (in shares) | shares | 21.3 |
Weighted Average Grant Date Fair Value | |
Outstanding and nonvested, beginning balance (in dollars per share) | $ / shares | $ 9.38 |
Granted (in dollars per share) | $ / shares | 9.79 |
Vested (in dollars per share) | $ / shares | 8.36 |
Cancelled (in dollars per share) | $ / shares | 7.59 |
Outstanding and nonvested, ending balance (in dollars per share) | $ / shares | $ 9.92 |
Performance Restricted Stock Units | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 1.2 |
Granted (in shares) | shares | 4 |
Vested (in shares) | shares | 0 |
Cancelled (in shares) | shares | (0.1) |
Outstanding, ending balance (in shares) | shares | 5.1 |
Weighted Average Grant Date Fair Value | |
Outstanding and nonvested, beginning balance (in dollars per share) | $ / shares | $ 6.62 |
Granted (in dollars per share) | $ / shares | 10.53 |
Vested (in dollars per share) | $ / shares | |
Cancelled (in dollars per share) | $ / shares | 7.86 |
Outstanding and nonvested, ending balance (in dollars per share) | $ / shares | $ 9.66 |
SHARE-BASED COMPENSATION PLA_14
SHARE-BASED COMPENSATION PLANS - Performance Restricted Stock Units Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation (income) expense | $ 91.8 | $ 137.6 | $ 197.8 |
Performance Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 4 | ||
Total share-based compensation (income) expense | $ 10.7 | 1.5 | 0 |
Total intrinsic value of restricted shares vested and settled | 0 | 0 | 0 |
Performance Restricted Stock Units | Chief Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation (income) expense | $ 5.4 | $ 0 | $ 0 |
Performance Restricted Stock Units | Omnibus Long-Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 4 | 1.2 |
SHARE-BASED COMPENSATION PLA_15
SHARE-BASED COMPENSATION PLANS - Restricted Stock Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation (income) expense | $ 91.8 | $ 137.6 | $ 197.8 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 0.3 | 0.4 | 0.3 |
Total share-based compensation (income) expense | $ 3.1 | $ 2.7 | $ 1.8 |
Forfeited (in shares) | 0.5 | ||
Total intrinsic value of restricted shares vested and settled | $ 5 | $ 2.6 | $ 1.7 |
SHARE-BASED COMPENSATION PLA_16
SHARE-BASED COMPENSATION PLANS - Restricted Stock Activity (Details) - Restricted Stock - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Shares | |||
Outstanding, beginning balance (in shares) | 0.7 | ||
Granted (in shares) | 0.3 | 0.4 | 0.3 |
Settled (in shares) | (0.5) | ||
Cancelled (in shares) | (0.5) | ||
Outstanding, ending balance (in shares) | 0 | 0.7 | |
Vested and expected to vest (in shares) | 0 | ||
Vested and expected to vest, aggregate intrinsic value | $ 0 | ||
Vested and expected to vest, weighted average remaining contractual term | 0 years |
SHARE-BASED COMPENSATION PLA_17
SHARE-BASED COMPENSATION PLANS - Outstanding and Nonvested Restricted Stock Activity (Details) - Restricted Stock - $ / shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Shares | |||
Outstanding, beginning balance (in shares) | 0.7 | ||
Granted (in shares) | 0.3 | 0.4 | 0.3 |
Vested (in shares) | (0.5) | ||
Cancelled (in shares) | (0.5) | ||
Outstanding, ending balance (in shares) | 0 | 0.7 | |
Weighted Average Grant Date Fair Value | |||
Outstanding and nonvested, beginning balance (in dollars per share) | $ 6.94 | ||
Granted (in dollars per share) | 9.63 | ||
Vested (in dollars per share) | 9.19 | ||
Cancelled (in dollars per share) | 8.09 | ||
Outstanding and nonvested, ending balance (in dollars per share) | $ 0 | $ 6.94 |
SHARE-BASED COMPENSATION PLA_18
SHARE-BASED COMPENSATION PLANS - Phantom Units (Details) - Former CEO - Phantom Units $ in Millions | Jul. 24, 2015 USD ($) | Jul. 21, 2015 shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | shares | 300,000 | |
Common Class A | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share equivalent of class A common stock | 1 | |
Phantom units value | $ | $ 8 |
NET INCOME (LOSS) ATTRIBUTABL_3
NET INCOME (LOSS) ATTRIBUTABLE TO COTY INC. PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Amounts attributable to Coty Inc.: | |||
Net income (loss) from continuing operations | $ 89.4 | $ 508.2 | $ 253.8 |
Convertible Series B Preferred Stock dividends | (13.2) | (13.2) | (198.3) |
Net income from continuing operations attributable to common stockholders | 76.2 | 495 | 55.5 |
Net income (loss) from discontinued operations, net of tax | 0 | 0 | 5.7 |
Net income from continuing operations attributable to common stockholders | $ 76.2 | $ 495 | $ 61.2 |
Weighted-average common shares outstanding: | |||
Weighted-average common shares outstanding—Basic (in shares) | 874.4 | 849 | 820.6 |
Effect of dilutive stock options and Series A Preferred Stock (in shares) | 0.1 | 0 | 0 |
Effect of restricted stock, PRSUs and RSUs (in shares) | 8.9 | 13.8 | 13.5 |
Effect of Convertible Series B Preferred Stock (in shares) | 0 | 23.7 | 0 |
Effect of Forward Repurchase Contracts | 0 | 0 | 0 |
Weighted-average common shares and common share equivalents outstanding—Diluted (in shares) | 883.4 | 886.5 | 834.1 |
Earnings (losses) per common share | |||
Earnings from continuing operations per common share - basic (in dollars per share) | $ 0.09 | $ 0.58 | $ 0.07 |
Earnings (losses) from continuing operations per common share - diluted (in dollars per share) | 0.09 | 0.57 | 0.07 |
Earnings from discontinued operations - basic (in dollars per share) | 0 | 0 | 0.01 |
Earnings from discontinued operations - diluted (in dollars per share) | 0 | 0 | 0.01 |
Earnings per common share - basic (in dollars per share) | 0.09 | 0.58 | 0.08 |
Earnings per common share - diluted (in dollars per share) | $ 0.09 | $ 0.57 | $ 0.08 |
Convertible Series B Preferred Stock dividends | $ 13.2 | $ 13.2 | $ 198.3 |
Antidilutive fair market value adjustments | $ 73.4 | $ (101.8) | $ 0 |
Share-Based Payment Arrangement, Option and Series A Preferred Stock | |||
Earnings (losses) per common share | |||
Anti-dilutive shares (in shares) | 2.8 | 4.8 | 8.3 |
Restricted Stock Units | |||
Earnings (losses) per common share | |||
Anti-dilutive shares (in shares) | 1 | 3.2 | 1.6 |
Convertible Series B Preferred Stock | |||
Earnings (losses) per common share | |||
Anti-dilutive shares (in shares) | 23.7 | 65.4 |
LEGAL AND OTHER CONTINGENCIES -
LEGAL AND OTHER CONTINGENCIES - Brazilian Tax Assessments (Details) R$ in Millions, $ in Millions | Jun. 30, 2024 USD ($) | Jun. 30, 2024 BRL (R$) | Jun. 30, 2023 USD ($) |
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 30.2 | $ 33.1 | |
Pending Litigation | Brazilian Tax Assessments | Foreign State Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 56.7 | R$ 311.9 | |
Pending Litigation | Brazilian Tax Assessments | Foreign Federal Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 25 | 135.2 | |
Pending Litigation | Brazilian Tax Assessments | 2017 - 2019 | Foreign State Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 158.8 | 873.8 | |
Pending Litigation | Brazilian Tax Assessments | 2016 - 2017 | Foreign Federal Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 79.7 | 438.3 | |
Pending Litigation | Brazilian Tax Assessments | 2018 - 2019 | Foreign Federal Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 107.7 | 592.3 | |
Pending Litigation | Brazilian Tax Assessments | 2020 | Foreign Federal Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 6.1 | 33.5 | |
Pending Litigation | Brazilian Tax Assessments | 2016 - 2019 | Foreign State Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 41 | 225.4 | |
Pending Litigation | Brazilian Tax Assessments | 2016 - 2020 | Foreign State Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 8.5 | R$ 46.9 |
LEGAL AND OTHER CONTINGENCIES_2
LEGAL AND OTHER CONTINGENCIES - Narrative (Details) R$ in Millions, $ in Millions | 12 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2024 BRL (R$) | Jun. 30, 2024 BRL (R$) | Jun. 30, 2023 USD ($) | |
Loss Contingencies [Line Items] | ||||
Penalty payment | $ 30.2 | $ 33.1 | ||
Brazilian Tax Assessments | Foreign Federal Tax Authority | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Penalty payment | 25 | R$ 135.2 | ||
Brazilian Tax Assessments | Foreign State Tax Authority | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Penalty payment | 56.7 | R$ 311.9 | ||
Cash deposits | $ 22.6 | R$ 124.5 |
LEGAL AND OTHER CONTINGENCIES_3
LEGAL AND OTHER CONTINGENCIES - Schedule of Other Commitments (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Fiscal Year Ending June 30, | |
2025 | $ 750.4 |
2026 | 78.6 |
2027 | 44.6 |
2028 | 24.2 |
2029 | 0 |
Thereafter | 0 |
Total | $ 897.8 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Millions | 12 Months Ended | |||||||||
Nov. 30, 2021 | Nov. 10, 2021 USD ($) shares | Oct. 20, 2021 shares | Jun. 30, 2024 USD ($) jurisdiction shares | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 director | Aug. 27, 2021 shares | Nov. 30, 2020 | Nov. 16, 2020 shares | |
Related Party Transaction [Line Items] | ||||||||||
Preferred stock, shares issued (in shares) | shares | 1,000,000 | |||||||||
Gain on sale | $ (90.2) | $ 419 | $ 409.9 | |||||||
Accounts receivable | 441.6 | 360.9 | ||||||||
Accounts payable | 1,405.6 | 1,444.7 | ||||||||
Long-term payables | 347.4 | 325.4 | ||||||||
Total share-based compensation (income) expense | 91.8 | 137.6 | 197.8 | |||||||
Sublease income | $ 16.7 | $ 15.8 | 20 | |||||||
Wella Company | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Equity method investment, amount sold (percentage) | 4.70% | 9.40% | ||||||||
Ownership percentage | 25.84% | 25.85% | 40% | |||||||
Convertible Series B Preferred Stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Conversion of Convertible Series B Preferred Stock (in shares) | shares | 123,219 | |||||||||
Unpaid preferred stock dividends converted to common stock | $ 1.2 | |||||||||
Common Class A | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Common shares issued upon conversion (in shares) | shares | 19,944,701 | |||||||||
Sale of stock, number of shares issued (in shares) | shares | 19,944,701 | |||||||||
Wella Company | Other Noncurrent Liabilities | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Long-term payables | $ 33.5 | |||||||||
JAB Partners LLP | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Lessee, operating lease, remaining lease term | 7 years | |||||||||
JAB Partners LLP | Performance Guarantee | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Maximum potential future payments | $ 3.6 | |||||||||
JAB Beauty B.V. | Chief Executive Officer | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Portion of equity award to be contributed by related party | 0.5 | |||||||||
KKR | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of directors designated by related party | director | 2 | |||||||||
KKR | Convertible Series B Preferred Stock | HFS Holdings S.á r.l. | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Preferred stock, shares issued (in shares) | shares | 146,057 | 146,057 | ||||||||
Wella Company | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Convertible series B preferred stock redeemed for sale of ownership interest (in shares) | shares | 290,465 | |||||||||
Gain on sale | $ 19.7 | $ 30.8 | 0.7 | |||||||
Accounts receivable | 40 | |||||||||
Accounts payable | 0 | |||||||||
Total share-based compensation (income) expense | 2.1 | 4.6 | 0.7 | |||||||
Sublease income | 8.2 | 9.1 | 13.3 | |||||||
Wella Company | Wella Company | Discontinued Operations, Disposed of by Sale | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Cash proceeds from divestiture | 6 | |||||||||
Wella Company | Transition Services Agreement Fees | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenue from related party | 2.2 | 3.3 | 87.5 | |||||||
Wella Company | Related Party Transaction, Other Fees | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenue from related party | 10 | 7.6 | 6.7 | |||||||
Wella Company | Management, Consulting and Financial Services | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenue from related party | $ 1.2 | 2.7 | 0 | |||||||
Orveda | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
License agreement, term (in years) | 5 years | |||||||||
License agreement, number of automatic renewals | jurisdiction | 2 | |||||||||
License agreement, automatic renewal term duration (in years) | 5 years | |||||||||
Russell Reynolds Associates | Recruiting Services | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Expenses | $ 0.9 | $ 0.7 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 23.2 | $ 53.4 | $ 47.7 |
Charged to Costs and Expenses | 8.9 | 4.3 | 26.2 |
Deductions | (7.8) | (34.5) | (20.5) |
Balance at End of Period | 24.3 | 23.2 | 53.4 |
Allowance for customer returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 82.8 | 95.3 | 89.9 |
Charged to Costs and Expenses | 112.6 | 103 | 128.4 |
Deductions | (131.6) | (115.5) | (123) |
Balance at End of Period | 63.8 | 82.8 | 95.3 |
Deferred tax valuation allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 60.7 | 41.7 | 33.4 |
Charged to Costs and Expenses | 100.9 | 21.7 | 12.5 |
Deductions | (10.2) | (2.7) | (4.2) |
Balance at End of Period | $ 151.4 | $ 60.7 | $ 41.7 |