COVER PAGE
COVER PAGE - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 30, 2023 | Aug. 14, 2023 | Dec. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2023 | ||
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 | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.1 | ||
Entity Common Stock, Shares Outstanding | 852,805,323 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001024305 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | |||
Net revenues | $ 5,554.1 | $ 5,304.4 | $ 4,629.9 |
Cost of sales | 2,006.8 | 1,935.2 | 1,861.7 |
Gross profit | 3,547.3 | 3,369.2 | 2,768.2 |
Selling, general and administrative expenses | 2,818.3 | 2,881.3 | 2,363.2 |
Amortization expense | 191.8 | 207.4 | 251.2 |
Restructuring costs | (6.5) | (6.5) | 63.6 |
Acquisition- and divestiture- related costs | 0 | 14.7 | 138.8 |
Asset impairment charges | 0 | 31.4 | 0 |
Operating income (loss) | 543.7 | 240.9 | (48.6) |
Interest expense, net | 257.9 | 224 | 235.1 |
Other income, net | (419) | (409.9) | (43.9) |
Income (loss) from continuing operations before income taxes | 704.8 | 426.8 | (239.8) |
Provision (benefit) for income taxes on continuing operations | 181.6 | 164.8 | (172) |
Net income (loss) from continuing operations | 523.2 | 262 | (67.8) |
Net income (loss) from discontinued operations | 0 | 5.7 | (137.3) |
Net income (loss) | 523.2 | 267.7 | (205.1) |
Net loss attributable to noncontrolling interests | (1.8) | (5.1) | (16.1) |
Net income attributable to redeemable noncontrolling interests | 16.8 | 13.3 | 12.3 |
Net income (loss) attributable to Coty Inc. | 508.2 | 259.5 | (201.3) |
Amounts attributable to Coty Inc. | |||
Net income (loss) from continuing operations | 508.2 | 253.8 | (64) |
Convertible Series B Preferred Stock dividends | (13.2) | (198.3) | (102.3) |
Net income (loss) from continuing operations attributable to common stockholders | 495 | 55.5 | (166.3) |
Net income (loss) from discontinued operations, net of tax | 0 | 5.7 | (137.3) |
Net income (loss) from continuing operations attributable to common stockholders | 495 | 61.2 | (303.6) |
Net income (loss) from continuing operations attributable to common stockholders | $ 495 | $ 61.2 | $ (303.6) |
Earnings (losses) per common share | |||
Earnings (losses) from continuing operations per common share - basic (in dollars per share) | $ 0.58 | $ 0.07 | $ (0.22) |
Earnings (losses) from continuing operations per common share - diluted (in dollars per share) | 0.57 | 0.07 | (0.22) |
Earnings (losses) from discontinued operations - basic (in dollars per share) | 0 | 0.01 | (0.18) |
Earnings (losses) from discontinued operations - diluted (in dollars per share) | 0 | 0.01 | (0.18) |
Earnings (losses) per common share - basic (in dollars per share) | 0.58 | 0.08 | (0.40) |
Earnings (losses) per common share - diluted (in dollars per share) | $ 0.57 | $ 0.08 | $ (0.40) |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 849 | 820.6 | 764.8 |
Diluted (in shares) | 886.5 | 834.1 | 764.8 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 523.2 | $ 267.7 | $ (205.1) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 49.4 | (476.1) | 130.3 |
Net unrealized derivative (loss) gain on cash flow hedges, net of taxes of $1.4, $(6.0) and $(8.4), respectively | (3.6) | 19.8 | 27.5 |
Pension and other post-employment benefits, net of taxes of $(4.9), $(24.7) and $9.0, respectively | 10.1 | 59.4 | (23.6) |
Total other comprehensive income (loss), net of tax | 55.9 | (396.9) | 134.2 |
Comprehensive income (loss) | 579.1 | (129.2) | (70.9) |
Comprehensive (loss) attributable to noncontrolling interests: | |||
Net loss | (1.8) | (5.1) | (16.1) |
Foreign currency translation adjustment | 0.3 | (0.5) | (0.1) |
Total comprehensive loss attributable to noncontrolling interests | (1.5) | (5.6) | (16.2) |
Comprehensive income (loss) attributable to redeemable noncontrolling interests: | |||
Net income | 16.8 | 13.3 | 12.3 |
Foreign currency translation adjustment | 0.1 | (0.4) | 0 |
Total comprehensive income attributable to redeemable noncontrolling interests | 16.9 | 12.9 | 12.3 |
Comprehensive income (loss) attributable to Coty Inc. | $ 563.7 | $ (136.5) | $ (67) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized derivative (loss) gain on cash flow hedges, tax | $ 1.4 | $ (6) | $ (8.4) |
Pension and other post-employment benefits adjustment, tax | $ (4.9) | $ (24.7) | $ 9 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 246.9 | $ 233.3 |
Restricted cash | 36.9 | 30.5 |
Trade receivables—less allowances of $23.2 and $53.4, respectively | 360.9 | 364.6 |
Inventories | 853.4 | 661.5 |
Prepaid expenses and other current assets | 553.6 | 392 |
Total current assets | 2,051.7 | 1,681.9 |
Property and equipment, net | 712.9 | 715.5 |
Goodwill | 3,987.9 | 3,914.7 |
Other intangible assets, net | 3,798 | 3,902.8 |
Equity investments | 1,068.9 | 842.6 |
Operating lease right-of-use assets | 286.7 | 320.9 |
Deferred income taxes | 589.9 | 651.8 |
Other noncurrent assets | 165.6 | 85.9 |
TOTAL ASSETS | 12,661.6 | 12,116.1 |
Current liabilities: | ||
Accounts payable | 1,444.7 | 1,268.3 |
Accrued expenses and other current liabilities | 1,042 | 1,097.1 |
Short-term debt and current portion of long-term debt | 57.9 | 23 |
Current operating lease liabilities | 65.6 | 67.8 |
Income and other taxes payable | 126.6 | 109.4 |
Total current liabilities | 2,736.8 | 2,565.6 |
Long-term operating lease liabilities | 247.5 | 282.2 |
Long-term debt, net | 4,178.2 | 4,409.1 |
Pension and other post-employment benefits | 280.7 | 292.2 |
Deferred income taxes | 659.7 | 669 |
Other noncurrent liabilities | 325.4 | 340 |
TOTAL LIABILITIES | 8,428.3 | 8,558.1 |
COMMITMENTS AND CONTINGENCIES (Note 26) | ||
CONVERTIBLE SERIES B PREFERRED STOCK, $0.01 par value; 1.0 shares authorized; 0.1 and 0.1 issued and 0.1 and 0.1 outstanding, at June 30, 2023 and 2022, respectively | 142.4 | 142.4 |
REDEEMABLE NONCONTROLLING INTERESTS | 93.5 | 69.8 |
EQUITY: | ||
Preferred stock, $0.01 par value; 20.0 shares authorized; 1.0 and 1.5 issued and outstanding, at June 30, 2023 and 2022, respectively | 0 | 0 |
Class A Common Stock, $0.01 par value; 1,250.0 shares authorized, 919.3 and 905.5 issued and 852.8 and 839.2 outstanding at June 30, 2023 and 2022, respectively | 9.1 | 9 |
Additional paid-in capital | 10,898.6 | 10,805.8 |
Accumulated deficit | (4,987.9) | (5,496.1) |
Accumulated other comprehensive loss | (662.4) | (717.9) |
Treasury stock—at cost, shares: 66.5 and 66.3 at June 30, 2023 and 2022, respectively | (1,446.3) | (1,446.3) |
Total Coty Inc. stockholders’ equity | 3,811.1 | 3,154.5 |
Noncontrolling interests | 186.3 | 191.3 |
Total equity | 3,997.4 | 3,345.8 |
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY | $ 12,661.6 | $ 12,116.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 23.2 | $ 53.4 |
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 | 1,500,000 |
Preferred stock, shares outstanding (in shares) | 1,000,000 | 1,500,000 |
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) | 919,300,000 | 905,500,000 |
Common stock, shares outstanding (in shares) | 852,800,000 | 839,200,000 |
Treasury stock (in shares) | 66,500,000 | 66,300,000 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Class A | Total Coty Inc. Stockholders’ Equity | Total Coty Inc. Stockholders’ Equity Cumulative Effect, Period of Adoption, Adjustment | Total Coty Inc. Stockholders’ Equity Cumulative Effect, Period of Adoption, Adjusted Balance | Preferred Stock | Preferred Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock Common Class A | Common Stock Common Class A Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Noncontrolling Interest | Noncontrolling Interest Cumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance (in shares) at Jun. 30, 2020 | 1.5 | 1.5 | ||||||||||||||||||||
Beginning balance at Jun. 30, 2020 | $ 3,228.8 | $ (5.7) | $ 3,223.1 | $ 3,004.6 | $ (5.7) | $ 2,998.9 | $ 0 | $ 0 | $ 8.3 | $ 8.3 | $ 10,447.4 | $ 10,447.4 | $ (5,548.6) | $ (5.7) | $ (5,554.3) | $ (456.2) | $ (456.2) | $ (1,446.3) | $ (1,446.3) | $ 224.2 | $ 224.2 | |
Beginning balance (in shares) at Jun. 30, 2020 | 830.6 | 830.6 | ||||||||||||||||||||
Beginning balance (in shares) at Jun. 30, 2020 | 65.5 | 65.5 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Cancellation of Stock (in shares) | 0.7 | 0.7 | ||||||||||||||||||||
Reacquired Class A Common Stock for employee taxes (in shares) | 0.1 | 0.1 | ||||||||||||||||||||
Exercise of employee stock options and restricted stock units (in shares) | 1.7 | 1.7 | ||||||||||||||||||||
Share based compensation expense | $ 27.4 | 27.4 | 27.4 | |||||||||||||||||||
Changes in dividends accrued | 1.2 | 1.2 | 1.2 | |||||||||||||||||||
Shares withheld for employee taxes | (5) | (5) | (5) | |||||||||||||||||||
Deemed Dividends and Contributions- Convertible Series B Preferred Stock | (10.5) | (10.5) | (10.5) | |||||||||||||||||||
Dividends Accrued- Convertible Series B Preferred Stock | (67.6) | (67.6) | (67.6) | |||||||||||||||||||
Dividends Paid-Convertible Series B Preferred Stock | (24.2) | (24.2) | (24.2) | |||||||||||||||||||
Net income (loss) | (217.4) | (201.3) | (201.3) | (16.1) | ||||||||||||||||||
Other comprehensive income | 134.2 | 134.3 | 134.3 | (0.1) | ||||||||||||||||||
Distribution to noncontrolling interests, net | (6.5) | (6.5) | ||||||||||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 5.2 | 5.2 | 5.2 | |||||||||||||||||||
Equity Investment contribution for share-based compensation | 2.3 | 2.3 | 2.3 | |||||||||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 1.5 | |||||||||||||||||||||
Ending 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 | |||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 832.3 | |||||||||||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 66.3 | |||||||||||||||||||||
Beginning balance, redeemable noncontrolling interest at Jun. 30, 2020 | 79.1 | 79.1 | ||||||||||||||||||||
Beginning balance, convertible stock at Jun. 30, 2020 | 715.8 | $ 715.8 | ||||||||||||||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||||||||||||||||||||||
Issuance of Preferred Stock | 242.4 | |||||||||||||||||||||
Deemed Dividends and Contributions- Convertible Series B Preferred Stock | 10.5 | |||||||||||||||||||||
Dividends Accrued - Convertible Series B Preferred Stock | 67.6 | |||||||||||||||||||||
Net income (loss) | 12.3 | |||||||||||||||||||||
Distribution to noncontrolling interests, net | (2.1) | |||||||||||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (5.2) | |||||||||||||||||||||
Ending balance, redeemable noncontrolling interest at Jun. 30, 2021 | 84.1 | |||||||||||||||||||||
Ending balance, convertible stock at Jun. 30, 2021 | 1,036.3 | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Exercise of employee stock options and restricted stock units (in shares) | 3.3 | 3.3 | ||||||||||||||||||||
Share based compensation expense | 195.4 | 195.4 | 195.4 | |||||||||||||||||||
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 | ||||||||||||||||||
Shares withheld for employee taxes | (12.7) | (12.7) | (12.7) | |||||||||||||||||||
Deemed Dividends and Contributions- Convertible Series B Preferred Stock | (163.1) | (163.1) | (163.1) | |||||||||||||||||||
Dividends Accrued- Convertible Series B Preferred Stock | (35.2) | (35.2) | (35.2) | |||||||||||||||||||
Net income (loss) | 254.4 | 259.5 | 259.5 | (5.1) | ||||||||||||||||||
Other comprehensive income | (396.9) | (396) | ||||||||||||||||||||
Other comprehensive income | (396.5) | (396) | (396) | (0.5) | ||||||||||||||||||
Distribution to noncontrolling interests, net | (4.6) | (4.6) | ||||||||||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 14.9 | 14.9 | 14.9 | |||||||||||||||||||
Equity Investment contribution for share-based compensation | $ 0.7 | 0.7 | 0.7 | |||||||||||||||||||
Ending balance (in shares) at Jun. 30, 2022 | 1.5 | 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 | 839.2 | 905.5 | ||||||||||||||||||||
Ending balance (in shares) at Jun. 30, 2022 | 66.3 | 66.3 | ||||||||||||||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||||||||||||||||||||||
Deemed Dividends and Contributions- Convertible Series B Preferred Stock | $ 163.1 | |||||||||||||||||||||
Conversion of Convertible Series B Preferred Stock | 429.5 | |||||||||||||||||||||
Exchange Transaction | 606.9 | |||||||||||||||||||||
Dividends Accrued - Convertible Series B Preferred Stock | 35.2 | |||||||||||||||||||||
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 Stock (in shares) | 0.5 | |||||||||||||||||||||
Cancellation of Stock | 0 | 0 | ||||||||||||||||||||
Reacquired Class A Common Stock for employee taxes (in shares) | 0.2 | |||||||||||||||||||||
Exercise of employee stock options and restricted stock units (in shares) | 13.8 | 13.8 | ||||||||||||||||||||
Exercise of employee stock options and restricted stock units | 0.9 | 0.9 | $ 0.1 | 0.8 | ||||||||||||||||||
Share based compensation expense | 134.7 | 134.7 | 134.7 | |||||||||||||||||||
Changes in dividends accrued | 0.1 | 0.1 | 0.1 | |||||||||||||||||||
Shares withheld for employee taxes | (13.6) | (13.6) | (13.6) | |||||||||||||||||||
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 | 55.9 | 55.5 | ||||||||||||||||||||
Other comprehensive income | 55.8 | 55.5 | 55.5 | 0.3 | ||||||||||||||||||
Distribution to noncontrolling interests, net | (3.5) | (3.5) | ||||||||||||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (20.6) | (20.6) | (20.6) | |||||||||||||||||||
Equity Investment contribution for share-based compensation | $ 4.6 | 4.6 | 4.6 | |||||||||||||||||||
Ending balance (in shares) at Jun. 30, 2023 | 1 | 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 | 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 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 523.2 | $ 267.7 | $ (205.1) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 426.7 | 516.4 | 585.3 |
Non-cash lease expense | 63.6 | 78.5 | 81.2 |
Asset impairment charges | 0 | 31.4 | 0 |
Deferred income taxes | 56.3 | 12.1 | (218.1) |
(Release) provision for bad debts | (18.9) | 20.5 | (13.2) |
Provision for pension and other post-employment benefits | 8.5 | 12.7 | 17.8 |
Share-based compensation | 135.9 | 195.5 | 29.9 |
(Gain) loss on sale of business in discontinued operations and other business divestiture | 0 | (6.1) | 246.4 |
(Gains) losses on disposals of long-lived assets and license terminations, net | (99.7) | (115.8) | 15.4 |
Realized and unrealized gains from equity investments, net | (226.3) | (400.3) | (70.3) |
Foreign exchange effects | 29.9 | (16.8) | 26.7 |
Unrealized gains on forward repurchase contracts, net | (196.9) | (16.1) | 0 |
Other | 8.9 | 21.3 | 54.6 |
Change in operating assets and liabilities: | |||
Trade receivables | 36.8 | (77.2) | 10.5 |
Inventories | (180.3) | (48.3) | 81.2 |
Prepaid expenses and other current assets | (15.2) | (12.7) | (136.5) |
Accounts payable | 138.4 | 140.5 | (49.7) |
Accrued expenses and other current liabilities | (21.9) | 129.6 | (45.8) |
Operating lease liabilities | (61) | (70.7) | (125.3) |
Income and other taxes payable | 59.9 | 91.7 | 19.9 |
Other noncurrent assets | (7.5) | (6.7) | 40.2 |
Other noncurrent liabilities | (34.7) | (20.6) | (26.4) |
Net cash provided by operating activities | 625.7 | 726.6 | 318.7 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (222.8) | (174.1) | (173.9) |
Proceeds from sale of long-lived assets and license termination | 104.6 | 179.2 | 4.3 |
Proceeds related to the sale of discontinued business, net of cash acquired and related contingent consideration | 0 | 34 | 2,374.1 |
Return of capital from equity investments | 0 | 230.6 | 448 |
Payments for equity investment and asset acquisition | 0 | 0 | (200) |
Proceeds from sale of business, net of cash disposed | 0 | 0 | 27 |
Termination of currency swaps designated as net investment hedges | 0 | 0 | (37.6) |
Net cash (used in) provided by investing activities | (118.2) | 269.7 | 2,441.9 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net proceeds of short-term debt, original maturity less than three months | 0 | 0.6 | 0 |
Proceeds from revolving loan facilities | 1,558 | 943 | 2,759.8 |
Repayments of revolving loan facilities | (1,600.1) | (1,338.8) | (3,593.3) |
Proceeds from issuance of other long term debt | 0 | 542.4 | 1,748.8 |
Repayments of term loans and other long term debt | (226.1) | (868.3) | (3,894.5) |
Dividend payments on Class A Common Stock and Convertible Series B Preferred Stock | (13.7) | (57.2) | (25.7) |
Proceeds from issuance of Class A Common Stock and Convertible Series B Preferred Stock | 0.9 | 0 | 227.2 |
Net (payments) proceeds for foreign currency contracts | (128.1) | (178.5) | 18.5 |
Distributions to mandatorily redeemable financial interests, redeemable noncontrolling interests and noncontrolling interests | (17.3) | (16.9) | (8.6) |
Payments related to forward repurchase contracts | (26.4) | 0 | 0 |
Purchase of remaining mandatorily redeemable financial interest | 0 | (7.1) | 0 |
Payment of deferred financing fees | 0 | (39.6) | (21.9) |
All other | (16.5) | (13.6) | (5.4) |
Net cash (used in) financing activities | (469.3) | (1,034) | (2,795.1) |
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (18.2) | (8.9) | (7.1) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 20 | (46.6) | (41.6) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 263.8 | 310.4 | 352 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period | 283.8 | 263.8 | 310.4 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | |||
Cash paid during the year for interest | 229.1 | 215.4 | 230.6 |
Cash paid during the year for income taxes, net of refunds received | 58.6 | 97.2 | 15.9 |
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES: | |||
Accrued capital expenditure additions | 107.8 | 100.1 | 69.7 |
Redemption of Series B Preferred Stock in exchange for Wella Equity Investment | 0 | 603.3 | 0 |
Conversion of Series B Preferred Stock into Class A Common Stock | 0 | 429.5 | 0 |
Non-cash Series B Preferred Stock dividends and deemed (contributions) dividends | $ 0 | $ (1.1) | $ 78.1 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Jun. 30, 2023 | |
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 2023” refer to the fiscal year ended June 30, 2023. 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, 2023 | |
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, 2023 and 2022, the Company had restricted cash of $36.9 and $30.5, respectively, included in Restricted cash in the Consolidated Balance Sheets. The restricted cash balances as of June 30, 2023 and 2022 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, 2023 and 2022. 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 various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, and requirements to support forecasted sales. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. 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 13—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 2%, 2% and 2% of gross revenue after customer discounts and allowances in fiscal 2023, 2022 and 2021, respectively. Trade spending activities recorded as a reduction to gross revenue after customer discounts and allowances represented 10%, 10%, and 10% in fiscal 2023, 2022 and 2021, 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 $1,479.6, $1,465.1 and $1,029.4 in fiscal 2023, 2022 and 2021, respectively. Included in advertising and promotional costs are $103.0, $119.4, and $130.3 of depreciation of marketing furniture and fixtures, such as product displays, in fiscal 2023, 2022 and 2021, respectively. Research and development costs are expensed as incurred and totaled $105.2, $97.3 and $96.5 in fiscal 2023, 2022 and 2021, 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 and Series A-1 Preferred Stock. Share-based compensation expense is measured and fixed at the grant date, based on the estimated fair value of the award and is recognized on a straight-line basis, net of estimated forfeitures, over the employee’s requisite service period and, for PRSUs, when it is probable that the performance condition will be achieved. The fair value of stock options is determined using the Black-Scholes valuation model using the assumptions discussed in Note 24—Share-Based Compensation Plans. The fair value of RSUs and PRSUs are determined on the date of grant based on the Company’s stock price. 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 13—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 $(32.3), $3.3 and $(7.8) in fiscal 2023, 2022 and 2021, 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 $(12.2), $10.0 and $(6.8) in fiscal 2023, 2022 and 2021, 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 is expected to receive an additional payment of €15.0 million (approximately $16.3) in fiscal 2024. 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. Amounts due to the Company from the licensor are reflected in Prepaid expenses and other current assets as of June 30, 2023. The Company will continue to sell remaining Lacoste fragrances inventory through December of calendar year 2023, as per a contractual inventory sell-off arrangement. 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 Condensed 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 its decision to exit Russia, in fiscal 2022. Additionally, the Company recognized total pre-tax gains in the Condensed 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 Adopted Accounting Pronouncements In August 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging- Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. The Company adopted this guidance using the modified retrospective method in the first quarter of fiscal year 2023. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In July 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors-Certain Leases with Variable Lease Payments, which requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate as an operating lease on the commencement date of the lease if specified criteria are met. The Company adopted this guidance in the first quarter of fiscal year 2023. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. Recently Issued and Not Yet Adopted Accounting Pronouncements Accounting Standard Update(s) Topic Effective Period Summary 2023-01 Leases (Topic 842) - Common Control Arrangements Fiscal 2025 The FASB issued ASU No. 2023-01, Leases (Topic 842) - Common Control Arrangements, which clarifies the accounting for leasehold improvements associated with common control leases. The guidance will be effective for the Company in fiscal 2025 with early adoption permitted. The Company does not expect this ASU will have a material effect on its consolidated financial position, results of operations or cash flows. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Jun. 30, 2023 | |
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”), valuing the business at $4,300.0 on a cash- and debt-free basis. The transaction was completed on November 30, 2020 and Coty retained an initial ownership of 40% of the Wella Company. As of June 30, 2023, the Company owned a 25.9% stake in the Wella Company. See Note 13—Equity Investments for additional information. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Wella Business are presented as discontinued operations in the prior period leading up to the date of the sale, and, as such, have been excluded from both continuing operations and segment results for all periods presented. The Wella Business was comprised of the Professional Beauty and Retail Hair businesses. The following table has selected financial information included in Net income from discontinued operations for the Wella Business. Year Ended June 30, 2023 2022 (a) 2021 (b) Net revenues $ — $ — $ 986.3 Cost of sales — — 322.5 Gross profit — — 663.8 Selling, general and administrative expenses — — 443.7 Restructuring costs — — (0.7) Operating income — — 220.8 Interest expense, net — — 21.3 (Gain) loss on sale of business — (6.1) 246.4 Other (income) expense, net — — (1.0) Income (loss) from discontinued operations before income taxes — 6.1 (45.9) Income tax on discontinued operations — 0.4 91.4 Net income (loss) from discontinued operations $ — $ 5.7 $ (137.3) (a) Net income from discontinued operations for the year ended June 30, 2022 reflect certain working capital adjustments net of the related income tax impact. (b) As the sale of the Wella Business occurred on November 30, 2020, discontinued operations activity, other than the Loss on sale of business, comprises five months for the fiscal year ended 2021. The following is selected financial information included in cash flows from discontinued operations for the Wella Business held for sale: Year Ended June 30, 2023 2022 2021 CASH FLOW FROM INVESTING ACTIVITIES Capital expenditures $ — $ — $ 8.7 The gain/(loss) on sale of the Wella Business included in Net income (loss) from discontinued operations in the Consolidated Statements of Operations was nil, $6.1, and $(246.4) for the years ended June 30, 2023, 2022 and 2021, respectively. Initial cash proceeds received by the Company for the sale of its 60% stake in the Wella Business were $2,451.7 and the Company retained an equity interest of 40%. The loss on sale reflects the net assets sold, taxes and other costs to sell the Wella Business. On December 22, 2021, the Company entered into an agreement with KKR Bidco related to post-closing adjustments to the purchase consideration for the Wella Business. As part of this agreement, the Company may receive future contingent proceeds, based on the future recovery of certain tax credits of the Wella Business. The Company accounts for the initial measurement of contingent consideration under a loss recovery approach. As of the time the contingent consideration arrangement was entered into, the Company was unable to determine that it was probable that any of the contingent consideration would be earned. Therefore, no contingent consideration gain was initially recognized. Subsequent measurement of the contingent consideration is based on the guidance for gain contingencies and any gain will be recorded at the time the consideration is earned. In fiscal 2022, a $34.0 advance of future contingent proceeds was paid to the Company and subject to claw back if recovery targets related to the Wella Business tax credits are not achieved. During fiscal 2023 and 2022, certain recovery targets were achieved and the Company recognized gains of $30.8 and $0.7, respectively, reported in Other income, net. The remaining $2.5 is unearned and is included in Other noncurrent liabilities in the Consolidated Balance Sheet until the contingency is resolved. |
BUSINESS COMBINATIONS, ASSET AC
BUSINESS COMBINATIONS, ASSET ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS, ASSET ACQUISITIONS AND DIVESTITURES | BUSINESS COMBINATIONS, ASSET ACQUISITIONS AND DIVESTITURES Business Combinations and Asset Acquisitions There were no business combination or asset acquisition transactions during the years ended June 30, 2023 and 2022. KKW Beauty Business Transaction On January 4, 2021, the Company completed its purchase of 20% of the outstanding equity of KKW Holdings, LLC (“KKW Holdings”), pursuant to a purchase agreement entered into between the Company, KKW Holdings and other parties listed as signatories (the “KKW Purchase Agreement”). On the same date, as contemplated by the KKW Purchase Agreement, the Company entered into a collaboration agreement, pursuant to which, in exchange for a marketing fee and a license fee, it received the right and license to manufacture, advertise, promote, distribute and sell certain Kim Kardashian products outside of the existing KKW Holdings scope of fragrances and cosmetics, and use certain intellectual property owned by or licensed to KKW Holdings in connection with the development, manufacture, labelling, packaging, advertising, display, distribution and sale of such products (the “KKW Collaboration Agreement”). Under the KKW Collaboration Agreement, products will be sold by the Company’s consolidated subsidiaries. Therefore, the related revenues generated and expenses incurred by such subsidiaries will be reported in the Company’s Consolidated Statements of Operations. The KKW Purchase Agreement also gives the Company an option to acquire, and the sellers the option to compel the Company to acquire, an additional 31% of the outstanding equity of KKW Holdings (the “KKW Call Option” and “KKW Put Option”, respectively). The seller’s ability to exercise the KKW Put Option is contingent upon the achievement of certain contractually defined targets. The KKW Call Option and KKW Put Option expire on the seventh anniversary of the KKW Collaboration Agreement. Future exercise of the KKW Call Option or KKW Put Option has been deemed by the Company to be remote. However, if exercise were to occur such exercise may result in a material cash outflow for the Company. The purchase consideration paid for the equity interest, the KKW Call Option and rights under the KKW Collaboration Agreement was $200.0 and was allocated as follows using a relative fair value approach at the acquisition date: Estimated fair value Estimated useful life (in years) KKW Collaboration Agreement $ 180.6 20 20% equity interest in KKW Holdings 19.4 Total purchase consideration $ 200.0 The initial fair value of the KKW Collaboration Agreement and the Company’s 20% equity investment were estimated using an income approach. The Company accounts for its 20% investment in the equity of KKW Holdings under the equity method. The initial fair value of the KKW Collaboration Agreement is recognized within Other intangible assets, net and the Company’s equity investment in KKW Holdings is recognized within Equity investments, each within the Consolidated Balance Sheets. The fair value of the KKW Call Option was deemed to be de minimis. Business Divestitures There were no divestiture transactions during the years ended June 30, 2023 and 2022. Wella Business On November 30, 2020, the Company completed the strategic transaction with Kohlberg Kravis Roberts & Co. L.P. and its affiliates (“KKR”) for the sale of a majority stake in the Wella Business (see Note 3—Discontinued Operations). Following the sale, Coty deconsolidated the Wella Business as KKR owned approximately 60% of the separately managed business, and the Company owned the remaining 40%. As of June 30, 2023, the Company owned a 25.9% stake in the Wella Company. See Note 13—Equity Investments for additional information. Initial cash proceeds received for the sale of the 60% stake in the Wella Business were $2,451.7 (less cash disposed of $65.5, resulted in net cash proceeds of $2,386.2). Coty utilized $2,015.5 of the net proceeds to pay down its 2018 Coty Term A and B Facilities (as defined in Note 15—Debt) on a pro rata basis and reserved $500.0 for reinvestment in the Company's business, pursuant to the 2018 Coty Credit Agreement, as amended (as defined in Note 15—Debt). In connection with the November 30, 2021 amendment to the 2018 Coty Credit Agreement, the Company received consent from the participating banks to eliminate the requirements to utilize or repay the Reinvestment Balance (as defined in Note 15—Debt). Additionally, as contemplated in the Sale and Purchase Agreement (as amended) relating to the sale of the Wella Business (the “Wella SPA”), the purchase consideration was subject to further adjustments for other working capital and contractually specified items. See Note 3—Discontinued Operations for more information. As a result of the sale of the majority interest in the Wella Business, the Company determined that it no longer had a controlling interest in the Wella Business. The Company, therefore, deconsolidated its ownership of the Wella Business assets and liabilities and no longer reported the assets and liabilities of the Wella Business in its Consolidated Balance Sheet as of December 1, 2020. The operations of the Wella Business were consolidated in the results of the Company through the date of sale. The Company accounted for its stake in Wella under the fair value option (see Note 13—Equity Investments). |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2023 | |
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 12—Goodwill and Other Intangible Assets, net. Year Ended June 30, SEGMENT DATA 2023 2022 2021 Net revenues: Prestige $ 3,420.5 $ 3,267.9 $ 2,720.8 Consumer Beauty 2,133.6 2,036.5 1,909.1 Total $ 5,554.1 $ 5,304.4 $ 4,629.9 Depreciation and amortization: Prestige $ 262.4 $ 313.4 $ 350.4 Consumer Beauty 164.3 203.0 234.9 Total $ 426.7 $ 516.4 $ 585.3 Operating income (loss) from continuing operations Prestige $ 483.7 $ 367.2 $ 158.1 Consumer Beauty 63.3 9.5 26.9 Corporate (3.3) (135.8) (233.6) Total $ 543.7 $ 240.9 $ (48.6) Reconciliation: Operating income (loss) from continuing operations $ 543.7 $ 240.9 $ (48.6) Interest expense, net 257.9 224.0 235.1 Other income, net (419.0) (409.9) (43.9) Income (loss) from continuing operations before income taxes $ 704.8 $ 426.8 $ (239.8) As of June 30, Long-lived assets: 2023 2022 U.S. $ 3,597.3 $ 3,724.7 Netherlands 3,367.5 3,313.5 Brazil 495.0 467.9 All other 1,039.0 1,026.9 Total $ 8,498.8 $ 8,533.0 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 2023, 2022 and 2021. The United States had net revenues of $1,547.7, $1,477.7 and $1,288.9 in fiscal 2023, 2022 and 2021, respectively. No customer or group of affiliated customers accounted for more than 10% of the Company’s Net revenues in fiscal 2023, 2022 and 2021 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 2023 2022 2021 Fragrances 59.4 % 58.9 % 57.4 % Color Cosmetics 27.9 % 28.7 % 29.3 % Body Care, Skin & Other 12.7 % 12.4 % 13.3 % Total 100.0 % 100.0 % 100.0 % |
ACQUISITION- AND DIVESTITURE-RE
ACQUISITION- AND DIVESTITURE-RELATED COSTS | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [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 $3.0 for the fiscal years ended 2023, 2022 and 2021, 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, $14.7 and $135.8 for the fiscal 2023, 2022 and 2021, respectively. Divestiture-related costs incurred during the fiscal years 2022 and 2021 were primarily related to the strategic transaction with KKR for the sale of a majority stake in the Wella Business. See Note 4—Business Combinations, Asset Acquisitions and Divestitures 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, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING COSTS | RESTRUCTURING COSTS Restructuring costs for the fiscal years ended June 30, 2023, 2022 and 2021 are presented below: Year Ended June 30, 2023 2022 2021 Transformation Plan $ (6.5) $ (6.5) $ 73.2 Other Restructuring — — (9.6) Total $ (6.5) $ (6.5) $ 63.6 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 $216.8 related to approved initiatives through June 30, 2023, which have been recorded in Corporate. As of June 30, 2023, 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) Cumulative through June 30, 2023 211.9 (1.6) 6.5 216.8 The related liability balance and activity of restructuring costs for the Transformation Plan restructuring costs are presented below: Severance and Total Balance—July 1, 2022 $ 55.2 $ 55.2 Restructuring charges 4.6 4.6 Payments (37.8) (37.8) Changes in estimates (11.1) (11.1) Effect of exchange rates (0.9) (0.9) Balance—June 30, 2023 $ 10.0 $ 10.0 The Company currently estimates that the total remaining accrual of $10.0 will result in cash expenditures of approximately $8.9 and $1.1 in fiscal 2024 and thereafter, respectively. Other Restructuring |
TRADE RECEIVABLES - FACTORING
TRADE RECEIVABLES - FACTORING | 12 Months Ended |
Jun. 30, 2023 | |
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 $202.9 and $179.3 as of June 30, 2023 and 2022, respectively. The aggregate amount of trade receivable invoices on a worldwide basis amounted to $1,579.2 and $1,041.2 in fiscal 2023 and 2022, respectively. Remaining balances due from factors amounted to $14.2 and $11.2 as of June 30, 2023 and 2022, respectively, and are included in Trade receivables, net in the Consolidated Balance Sheets. Factoring fees paid under these arrangements were $8.5, $3.0 and $1.2 in fiscal 2023, 2022 and 2021, 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 €102.6 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 2023 and 2022, the Company has derecognized receivables sold pursuant to these arrangements from the Consolidated Balance Sheets. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories as of June 30, 2023 and 2022 are presented below: June 30, June 30, Raw materials $ 224.1 $ 171.5 Work-in-process 15.6 13.2 Finished goods 613.7 476.8 Total inventories $ 853.4 $ 661.5 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022 are presented below: June 30, June 30, Due from related party $ 70.6 $ 70.2 Value added tax, sales and other non-income tax assets 60.2 59.4 Expected income tax refunds, credits and prepaid income taxes 102.4 116.3 Prepaid marketing, copyright and agency fees 88.7 66.9 Non-trade receivables 18.4 15.3 Prepaid rent, leases, maintenance and insurance 17.5 10.3 Interest rate swap asset 2.8 7.6 Forward Repurchase Contracts Asset 137.6 — Other 55.4 46.0 Total prepaid expenses and other current assets $ 553.6 $ 392.0 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net as of June 30, 2023 and 2022 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 432.1 $ 424.2 Machinery and equipment 676.4 670.7 Marketing furniture and fixtures 531.8 501.8 Computer equipment and software 751.5 737.9 Construction in progress 81.6 65.2 Property and equipment, gross 2,473.4 2,399.8 Accumulated depreciation and amortization (1,760.5) (1,684.3) Property and equipment, net $ 712.9 $ 715.5 Depreciation expense of property and equipment totaled $235.0, $309.0 and $334.1 in fiscal 2023, 2022 and 2021, respectively. Depreciation expense is recorded in Cost of sales and Selling, general and administrative expenses in the Consolidated Statements of Operations. During fiscal 2023, 2022 and 2021, the Company recorded asset impairment charges of $4.3, $2.4 and $5.2 respectively, which are included in Selling, general and administrative expenses in the Consolidated Statements of Operations. The fiscal 2023, 2022, and 2021 impairment charges primarily relate to the abandonment of distribution equipment and IT software, the abandonment of computer software, and the abandonment of machinery and equipment, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Jun. 30, 2023 | |
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 2023, 2022 and 2021, the Company recorded no impairments of goodwill at the Company’s reporting units. During fiscal years 2023, 2022 and 2021, the Company recorded total impairments on indefinite-lived other intangible assets of nil, $31.4 and nil, respectively. Additionally, the Company recorded no impairments on finite-lived other intangible assets during fiscal years 2023, 2022 or 2021. Goodwill Goodwill as of June 30, 2023, 2022 and 2021 is presented below: Prestige Consumer Beauty Total Gross balance at June 30, 2021 $ 6,384.0 $ 1,774.2 $ 8,158.2 Accumulated impairments (3,110.3) (929.8) (4,040.1) Net balance at June 30, 2021 $ 3,273.7 $ 844.4 $ 4,118.1 Changes during the year ended June 30, 2022 Foreign currency translation (163.3) (40.1) (203.4) 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 Other Intangible Assets, net Other intangible assets, net as of June 30, 2023 and 2022 are presented below: June 30, June 30, Indefinite-lived other intangible assets $ 950.8 $ 936.6 Finite-lived other intangible assets, net 2,847.2 2,966.2 Total Other intangible assets, net $ 3,798.0 $ 3,902.8 The changes in the carrying amount of indefinite-lived other intangible assets are presented below: Trademarks Total Gross balance at June 30, 2021 $ 1,932.2 $ 1,932.2 Accumulated impairments (913.5) (913.5) Net balance at June 30, 2021 $ 1,018.7 $ 1,018.7 Changes during the year ended June 30, 2022 Impairment charges (a) (31.4) (31.4) Foreign currency translation (50.7) (50.7) 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 (a) During fiscal 2022, the Company recognized asset impairment charges of $31.4 relating to the Max Factor and Bourjois trademarks. Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2022 License and collaboration agreements $ 3,861.9 $ (1,302.2) $ (19.6) $ 2,540.1 Customer relationships 740.0 (473.5) (5.5) 261.0 Trademarks 320.5 (177.1) (0.5) 142.9 Product formulations and technology 83.9 (61.7) — 22.2 Total $ 5,006.3 $ (2,014.5) $ (25.6) $ 2,966.2 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 Amortization expense totaled $191.8, $207.4 and $251.2 for the fiscal years ended June 30, 2023, 2022 and 2021, 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 20.2 years Customer relationships 15.4 years Trademarks 14.9 years Product formulations and technology 21.3 years As of June 30, 2023, the remaining weighted-average life of all intangible assets subject to amortization is 19.6 years. The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below: 2024 $ 190.0 2025 185.7 2026 154.8 2027 145.5 2028 142.1 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, 2023 | |
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, 2023 are represented by the following: June 30, June 30, Equity method investments: KKW Holdings (a) $ 8.9 $ 12.6 Equity investments at fair value: Wella (b) 1,060.0 830.0 Total equity investments $ 1,068.9 $ 842.6 (a) On January 4, 2021, the Company completed its purchase of 20% of the outstanding equity of KKW Holdings. (See Note 4—Business Combinations, Asset Acquisitions and Divestitures). During the years ended June 30, 2023 and 2022, the Company recognized $3.7 and $3.6, respectively, representing its share of the investee’s net loss and the amortization of basis differences in Other income, net within the Consolidated Statements of Operations. (b) On November 30, 2020, the Company completed the strategic transaction with KKR for the sale of a 60% stake in Coty’s Wella Business. As of June 30, 2023 and 2022, the Company's stake in the Wella Company was 25.9%. The following table presents summarized financial information of the Company’s equity method investees for the years ended June 30, 2023 and 2022. 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 $ 2,477.7 $ 2,505.1 Gross profit 1,616.2 1,706.5 Operating income (loss) 163.6 91.9 Loss before income taxes (33.6) (137.8) Net loss (76.2) (171.7) Summarized Balance Sheets information: June 30, June 30, Current assets $ 1,093.4 $ 951.4 Noncurrent assets 4,554.5 4,577.5 Total assets 5,647.9 5,528.9 Current liabilities 1,038.9 985.7 Noncurrent liabilities 2,708.5 2,525.6 Total liabilities 3,747.4 3,511.3 As of June 30, 2023, the Wella Company had 30.0 million shares of issued common stock and 1,843.2 million shares of issued redeemable preferred stock, of which Coty held 25.9% of each class of shares. The Wella Company had total equity inclusive of redeemable preferred stock of $1,938.8 as of June 30, 2023. The following table summarizes movements in equity investments with fair value option that are classified within Level 3 for the period ended June 30, 2023. There were no internal movements to or from Level 3 from Level 1 or Level 2 for the period ended June 30, 2023. Equity investments at fair value: Balance as of June 30, 2022 $ 830.0 Total gains/(losses) included in earnings 230.0 Balance as of June 30, 2023 $ 1,060.0 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, 2023. 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 $ 1,060.0 Discounted cash flows Discount rate 10.75% (a) Growth rate 1.8% - 9.2% (a) Market multiple Revenue multiple 2.5x-3.0x (b) EBITDA multiple 12.0x – 15.0x (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, 2023 | |
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, 2023 and 2022 consist of the following: June 30, June 30, Advertising, marketing and licensing $ 338.4 $ 314.9 Customer returns, discounts, allowances and bonuses 261.5 254.1 Compensation and other compensation related benefits 171.1 131.7 Value added, sales and other non-income taxes 71.5 83.1 Derivative liability for foreign currency 4.3 62.1 Restructuring costs 8.9 54.1 Interest 47.0 47.8 Auditing, consulting, legal and litigation accruals 25.2 30.8 Deferred income 6.9 21.5 Factoring - due to counterparty 23.0 12.8 Unfavorable contract liability 10.5 10.1 Due to related party 8.3 4.7 Cross currency swap liability 0.5 3.5 Other 64.9 65.9 Total accrued expenses and other current liabilities $ 1,042.0 $ 1,097.1 |
DEBT
DEBT | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT June 30, June 30, Short-term debt $ — $ — Senior Secured Notes 2026 Dollar Senior Secured Notes due April 2026 900.0 900.0 2026 Euro Senior Secured Notes due April 2026 761.0 731.8 2029 Dollar Senior Secured Notes due January 2029 500.00 500.0 2018 Coty Credit Agreement 2021 Coty Revolving Credit Facility due April 2025 228.9 273.6 2018 Coty Term B Facility due April 2025 1,183.7 1,239.2 Senior Unsecured Notes 2026 Dollar Notes due April 2026 473.0 550.0 2026 Euro Notes due April 2026 196.0 261.4 Brazilian Credit Facility 31.9 42.4 Other long-term debt and finance lease obligations 7.1 0.1 Total debt 4,281.6 4,498.5 Less: Short-term debt and current portion of long-term debt (57.9) (23.0) Total Long-term debt 4,223.7 4,475.5 Less: Unamortized financing fees (29.8) (41.8) Less: Discount on long-term debt (15.7) (24.6) Total Long-term debt, net $ 4,178.2 $ 4,409.1 Short-Term Debt The Company maintains short-term lines of credit with financial institutions around the world. Total available lines of credit were $49.2 and $43.1, of which nil and nil were outstanding at June 30, 2023 and 2022, 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 4.8% to 16.4% and from 1.2% to 15.9% as of June 30, 2023 and 2022, respectively. The weighted-average interest rate on short-term debt outstanding was 0.0% and 0.0% as of June 30, 2023 and 2022, respectively. In addition, the Company had undrawn letters of credit of $7.2 and $14.3 and bank guarantees of $16.3 and $17.2 as of June 30, 2023 and 2022, respectively. Long-Term Debt The Company’s long-term debt facilities consisted of the following as of June 30, 2023 and 2022: Facility Maturity Date Borrowing Capacity (in millions) as of June 30, 2023 Interest Rate Terms Applicable Interest Rate Spread as of June 30, 2023 Debt Discount Repayment Schedule Fiscal 2023 and 2022 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 $2,000.0 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) 1.75% N/A (b) Payable in full at maturity date Brazilian Credit Facilities - October 2023 October 2023 $31.9 3.48% per annum, payable quarterly in arrears beginning on July 5, 2022 3.48% N/A (b) Payable in full at maturity date Brazilian Credit Facilities - September 2023 September 2023 $— 3.74% per annum, payable quarterly in arrears beginning on June 30, 2022 3.74% N/A (b) Repaid in full 2026 Dollar Senior Secured Notes April 2026 $900.0 5.0% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2021 5.000% 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 $715.5 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 €430.6 SOFR (a) plus a margin of 2.50% per annum (d) 2.50% 0.25% 2026 Dollar April 2026 $473.0 6.5% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018 N/A (b) N/A (b) Payable in full at maturity date 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, 2023 and 2022, 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 2022, the 2018 Coty Revolving Credit Facility was refinanced and replaced by the 2021 Coty Revolving Credit Facility due April 5, 2025 (as described below). (g) Except as described below in amendments to the 2018 Coty Credit Agreement (as defined below), original terms of the 2018 Coty Credit Agreement apply to these debt facilities. Recent Developments Early Paydown of Brazilian Credit Facility On June 23, 2023, a wholly-owned subsidiary of the Company utilized cash on hand to fully paid down one of the existing U.S. Dollar-denominated credit facilities in Brazil in the amount of $10.5. This facility was set to mature in September 2023. Financing Activities The Company completed certain financing activities in the first quarter of fiscal 2024, as discussed in Note 28—Subsequent Events. 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"). Coty received gross proceeds of $500.0 in connection with the offering of the 2029 Dollar Senior Secured Notes. In accordance with the 2018 Coty Credit Agreement, as amended, a portion of the gross proceeds received were utilized to pay down the remaining outstanding principal balance of the 2018 Coty Revolving Credit Facility of $394.0 and the 2018 Coty Term A Facility of €89.5 million (approximately $100.4). On June 16, 2021, the Company issued an aggregate principal amount of €700.0 million 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 million in connection with the offering of the 2026 Euro 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” and, together with the 2026 Euro Senior Secured Notes and 2029 Dollar Senior Secured Notes, the “Senior Secured Notes”). Coty received gross proceeds of $900.0 in connection with the offering of the 2026 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 below. 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. 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, and January 15, 2025 for the 2029 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 and 2029 Dollar Senior Secured Notes, or Bund Rate in the case of the 2026 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 2029 Dollar Senior Secured Notes Year April 15, January 15, 2024 101.250% 100.969% N/A 2025 100.000% 100.000% 102.375% 2026 N/A N/A 101.188% 2027 and thereafter N/A N/A 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 in June 2019, September 2021 and November 2021. On March 7, 2023, the Company further amended the 2018 Coty Credit Agreement to effectuate the transition of the underlying variable interest rate from LIBOR to the Secured Overnight Financing Rate ("SOFR"). As amended and restated through March 2023, the 2018 Coty Credit Agreement matures on April 5, 2025 and provides for (a) the incurrence by the Company of (1) a senior secured term A facility in an aggregate principal amount of (i) $1,000.0 denominated in U.S. dollars and (ii) €2,035.0 million denominated in euros (the “2018 Coty Term A Facility”) and (2) a senior secured term B facility in an aggregate principal amount of (i) $1,400.0 denominated in U.S. dollars and (ii) €850.0 million denominated in euros (the “2018 Coty Term B Facility”) and (b) the incurrence by the Company and Coty B.V., a Dutch subsidiary of the Company (the “Dutch Borrower” and, together with the Company, the “Borrowers”), of a senior secured revolving facility in an aggregate principal amount of $2,000.0 denominated in U.S. dollars, specified alternative currencies or other currencies freely convertible into U.S. dollars (the “2021 Coty Revolving Credit Facility”) (as amended through March 2023, the 2018 Coty Term A Facility, together with the 2018 Coty Term B Facility and the 2021 Coty Revolving Credit Facility, the “2018 Coty Credit Facilities”). The 2018 Coty Credit Agreement provides that with respect to the 2021 Coty Revolving Credit Facility, up to $150.0 is available for letters of credit and up to $150.0 is available for swing line loans. The 2018 Coty Credit Agreement also permits, subject to certain terms and conditions, the incurrence of incremental facilities thereunder in an aggregate amount of (i) $1,700.0 plus (ii) an unlimited amount if the First Lien Net Leverage Ratio (as defined in the 2018 Coty Credit Agreement), at the time of incurrence of such incremental facilities and after giving effect thereto on a pro forma basis, is less than or equal to 3.00 to 1.00. The obligations of the Company under the 2018 Coty Credit Agreement are guaranteed by the material wholly-owned subsidiaries of the Company organized in the U.S., subject to certain exceptions (the “Guarantors”) and the obligations of the Company and the Guarantors under the 2018 Coty Credit Agreement are secured by a perfected first priority lien (subject to permitted liens) on substantially all of the assets of the Company and the Guarantors, subject to certain exceptions. The Dutch Borrower does not guarantee the obligations of the Company under the 2018 Coty Credit Agreement or grant any liens on its assets to secure any obligations under the 2018 Coty Credit Agreement. 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 November 2020, October 2021 and January 2022. In December 2022, in connection with the Lacoste license termination, a portion of the termination payment totaling €52.5 million (approximately $55.6 at the time) was advanced to the Company. In accordance with the 2018 Coty Credit Agreement, as amended, the Company utilized a portion of the advance proceeds to pay down €13.5 million (approximately $14.3) and $21.5, respectively, of the outstanding balances of the euro and U.S. dollar portions of the 2018 Term B Facility on December 23, 2022. In June 2023, in connection with the Lacoste license termination, a portion of the termination payment totaling €35.3 (approximately $38.3) was paid to the Company. In accordance with the 2018 Coty Credit Agreement, as amended, the Company utilized a portion of the proceeds to pay down €6.6 million (approximately $7.2) and $8.0, respectively, of the outstanding balances of the euro and U.S. dollar portions of the 2018 Term B Facility on June 30, 2023. No balances remain outstanding under the 2018 Coty Term A Facility. 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 Dollar and Euro Notes will mature on April 15, 2026. The 2026 Dollar Notes will bear interest at a rate of 6.50% per annum. The 2026 Euro Notes will bear interest at a rate of 4.75% per annum. Interest on the 2026 Dollar and Euro Notes is payable semi-annually in arrears on April 15 and October 15 of each year. The Company issued a notice of full redemption of the 2023 Euro Notes (as defined below) on February 15, 2022 and redeemed the 2023 Euro Notes on April 15, 2022 in the amount of €550.0 million (approximately $606.4). The Company utilized cash on hand of $480.7 and drew down $125.7 on the 2021 Coty Revolving Credit Facility (as defined below) for the redemption. 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. 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, 2023, the Company may at any time redeem some or all of the 2026 Dollar Notes and 2026 Euro Notes, respectively, at the redemption prices (expressed in percentage of principal amount) set forth below, plus accrued and unpaid interest, if any, to, but excluding, the redemption dates, if redeemed during the twelve-month period beginning on April 15 of each of the years indicated below: Price Year 2026 Dollar Notes 2026 Euro Notes 2023 101.6250% 101.1875% 2024 and thereafter 100.0000% 100.0000% Deferred Issuance Costs For the fiscal years ended June 30, 2023, 2022 and 2021, the Company capitalized deferred financing fees of nil, $9.2, and $25.4, respectively. The Company incurred nil, $27.0 and nil in third-party debt issuance costs during the fiscal years ended June 30, 2023, 2022 and 2021, respectively, which were recorded as Other income, net in the Consolidated Statement of Operations. Write-offs In fiscal 2023, the Company wrote off unamortized deferred financing fees of $0.7 and $0.1 of unamortized debt discounts. In fiscal 2022, the Company wrote off $4.7 of unamortized deferred financing fees and $0.4 of unamortized debt discounts. In fiscal 2021, the Company wrote off $21.1 of unamortized deferred financing fees and $3.1 of unamortized debt discounts. The write-offs of the unamortized deferred financing fees and unamortized debt discounts are included in Other income, net in the Consolidated Statements of Operations. Interest The 2018 Coty Credit Agreement facilities will bear interest at rates equal to, at the Company’s option, either: • 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 2021 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 S&P/Moody’s: 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% In the case of the U.S. dollar portion of the 2018 Coty Term B Facility, the applicable margin means 2.25% per annum, in the case of SOFR loans, and 1.25% per annum, in the case of ABR loans. In the case of the Euro portion of the 2018 Coty Term B Facility, the applicable margin means 2.50% per annum, in the case of EURIBOR loans. In no event will SOFR be deemed to be less than 0.00% per annum. Fair Value of Debt June 30, 2023 June 30, 2022 Carrying Fair Carrying Fair Senior Secured Notes $ 2,161.0 $ 2,066.9 $ 2,131.8 $ 1,914.1 2018 Coty Credit Agreement 1,412.6 1,393.5 1,512.8 1,451.5 Senior Unsecured Notes 669.0 661.5 811.4 733.5 Brazilian Credit Facility 31.9 32.2 42.4 48.2 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, 2023, are presented below: Fiscal Year Ending June 30, 2024 $ 55.1 2025 1,389.3 2026 2,330.1 2027 — 2028 — Thereafter 500.0 Total $ 4,274.5 Covenants The 2018 Coty Credit Agreement contains affirmative and negative covenants. The negative covenants include, among other things, limitations on debt, liens, dispositions, investments, fundamental changes, restricted payments and affiliate transactions. With certain exceptions as described below, the 2018 Coty Credit Agreement, as amended, includes a financial covenant that requires us to maintain a Total Net Leverage Ratio (as defined below), equal to or less than the ratios shown below for each respective test period. Quarterly Test Period Ending Total Net Leverage Ratio (a) June 30, 2023 through April 5, 2025 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, 2023, the Company was in compliance with all covenants contained within the 2018 Coty Credit Agreement, as amended. |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 5 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. Due to the divestiture of the Wella Business, lease assets, liabilities and expenses specific to this business for the fiscal year ended June 30, 2021 are excluded from the subsequent tables. The following table provides additional information about the Company’s operating leases for the fiscal years ended June 30, 2023, 2022 and 2021. Lease Cost: Year Ended Year Ended Year Ended Operating lease cost $ 76.2 $ 90.4 $ 87.1 Short-term lease cost 0.9 1.2 0.8 Variable lease cost 40.3 39.3 49.5 Sublease income (15.8) (20.0) (14.9) Net lease cost $ 101.6 $ 110.9 $ 122.5 Other information: Operating cash outflows from operating leases (73.8) (83.8) $ (132.4) Right-of-use assets obtained in exchange for lease obligations 25.7 104.9 $ 27.8 Weighted-average remaining lease term - real estate 7.2 years 7.6 years 6.4 years Weighted-average discount rate - real estate leases 4.13 % 3.85 % 3.57 % Future minimum lease payments for the Company’s operating leases as of June 30, 2023 are as follows: Fiscal Year Ending June 30, 2024 $ 78.6 2025 60.0 2026 48.8 2027 41.0 2028 32.7 Thereafter 107.1 Total future lease payments 368.2 Less: imputed interest (55.1) Total present value of lease liabilities $ 313.1 Current operating lease liabilities 65.6 Long-term operating lease liabilities 247.5 Total operating lease liabilities $ 313.1 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, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income (loss) from continuing operations before income taxes in fiscal 2023, 2022 and 2021 is presented below: Year Ended June 30, 2023 2022 2021 United States $ (253.6) $ (277.5) $ (434.4) Foreign 958.4 704.3 194.6 Total $ 704.8 $ 426.8 $ (239.8) The components of the Company’s total provision (benefit) for income taxes from continuing operations during fiscal 2023, 2022 and 2021 are presented below: Year Ended June 30, 2023 2022 2021 Provision (benefit) for income taxes on continuing operations: Current: Federal $ 2.6 $ 6.6 $ 3.8 State and local 2.6 (6.0) 14.9 Foreign 120.1 152.1 55.2 Total 125.3 152.7 73.9 Deferred: Federal (61.1) (2.7) 41.1 State and local 1.0 (12.8) 5.4 Foreign 116.4 27.6 (292.4) Total 56.3 12.1 (245.9) Provision (benefit) for income taxes on continuing operations $ 181.6 $ 164.8 $ (172.0) During fiscal 2023, the Company recorded a provision of $181.6 primarily due to the limitation on the deductibility of executive stock compensation, offset by fair value gains related to the investment in the Wella business at a lower rate. During fiscal 2022, the Company recorded a provision of $164.8 primarily due to the limitation on the deductibility of executive stock compensation and tax costs associated with the Russia exit, offset by large fair value gains related to the investment in the Wella business at a lower rate. During fiscal 2021, the Company recorded a benefit of $234.4 as a result of a tax rate differential on the deferred taxes recognized on the transfer of assets and liabilities, following the Company’s relocation of the main principal location from Geneva to Amsterdam. The overall value of the assets and liabilities transferred was negotiated with both the Swiss and Dutch tax authorities and per terms of the agreements, will be reevaluated after three years. The Company also recorded an expense of $130.0 related to an internal restructuring following the Wella divestiture, primarily intended to create a more efficient structure to hold its equity investment in Wella. The reconciliation of the U.S. Federal statutory tax rate to the Company’s effective income tax rate during fiscal 2023, 2022 and 2021 is presented below: Year Ended June 30, 2023 2022 2021 Income (loss) from continuing operations before income taxes $ 704.8 $ 426.8 $ (239.8) Provision (benefit) for income taxes at statutory rate $ 148.0 $ 89.6 $ (50.4) State and local taxes—net of federal benefit 2.8 (14.9) 26.3 Foreign tax differentials (10.1) (16.4) (23.3) Change in valuation allowances 10.2 (2.3) (3.8) Change in unrecognized tax benefit 32.5 (10.6) (18.0) Permanent differences—net (4.9) 25.4 (13.1) Non-deductible executive stock compensation 27.7 37.1 — Currency Loss (13.6) (0.2) — Dispositions of business assets — 12.7 — Russia exit (7.0) 24.1 — Principal relocation — — (234.4) Post-divestiture restructuring — — 130.0 Other (4.0) 20.3 14.7 Provision (benefit) for income taxes on continuing operations $ 181.6 $ 164.8 $ (172.0) Effective income tax rate 25.8 % 38.6 % 71.7 % Significant components of deferred income tax assets and liabilities as of June 30, 2023 and 2022 are presented below: June 30, June 30, Deferred income tax assets: Inventories $ 7.5 $ 8.3 Accruals and allowances 54.9 58.6 Sales returns 19.1 17.3 Share-based compensation 4.8 5.1 Employee benefits 55.6 60.3 Net operating loss carry forwards and tax credits 241.4 296.4 Capital loss carry forwards 0.3 1.1 Interest expense limitation carry forward 47.5 28.5 Lease liability 28.6 30.6 Principal relocation lease liability 424.0 434.0 Property, plant and equipment 13.0 — Other 48.4 31.7 Less: valuation allowances (60.7) (41.7) Net deferred income tax assets 884.4 930.2 Deferred income tax liabilities: Intangible assets 817.4 811.9 Property, plant and equipment — 9.2 Licensing rights 27.8 25.7 Right of use asset 28.6 31.2 Other 80.5 69.4 Deferred income tax liabilities 954.3 947.4 Net deferred income tax (liability) asset $ (69.9) $ (17.2) The expirations of tax loss carry forwards, amounting to $686.9 as of June 30, 2023, 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 2024 $ — $ 7.9 $ 0.6 $ 8.5 2025 — 3.1 3.9 7.0 2026 — — 9.5 9.5 2027 — 245.9 27.8 273.7 2028 and thereafter — 115.5 272.7 388.2 Total $ — $ 372.4 $ 314.5 $ 686.9 The total valuation allowances recorded are $60.7 and $41.7 as of June 30, 2023 and 2022, respectively. In fiscal 2023, the change in the valuation allowance was primarily due to an increase in valuation allowance on certain state and foreign net operating losses. A reconciliation of the beginning and ending amount of UTBs is presented below: Year Ended June 30, 2023 2022 2021 UTBs—July 1 $ 251.6 $ 279.9 $ 277.9 Additions based on tax positions related to the current year 6.7 1.7 32.1 Additions for tax positions of prior years 0.7 20.8 — Reductions for tax positions of prior years (1.4) (29.4) (4.5) Settlements (4.6) (0.2) (0.4) Lapses in statutes of limitations (13.8) (14.1) (33.3) Foreign currency translation (3.7) (7.1) 8.1 UTBs—June 30 $ 235.5 $ 251.6 $ 279.9 As of June 30, 2023, the Company had $235.5 of UTBs of which $184.9 represents the amount that, if recognized, would impact the effective income tax rate in future periods. As of June 30, 2023 and 2022, the liability associated with UTBs, including accrued interest and penalties, is $218.6 and $191.8, 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 $7.8, $4.2 and $0.8, respectively, in fiscal 2023, 2022 and 2021. The Company accrued immaterial penalties in fiscal 2023 and no penalties in fiscal 2022, and released penalties of $0.5 in fiscal 2021. 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, 2023 and 2022 is $33.1 and $26.4, 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 2023 and 2022, the Company recognized a tax benefit of $18.4 and $14.3 respectively associated with the settlement of tax audits in multiple jurisdictions and the expiration of foreign and state statutes of limitation. The Company has open tax years ranging from 2009 and forward. On the basis of information available at June 30, 2023, it is reasonably possible that a decrease of up to $21.5 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, 2023 | |
Interest Income (Expense), Net [Abstract] | |
INTEREST EXPENSE, NET | INTEREST EXPENSE, NET Interest expense, net for the years ended June 30, 2023, 2022 and 2021 is presented below: Year Ended June 30, 2023 2022 2021 Interest expense $ 261.1 $ 241.2 $ 231.8 Foreign exchange losses (gains), net of derivative contracts 12.2 (10.0) 6.8 Interest income (15.4) (7.2) (3.5) Total interest expense, net $ 257.9 $ 224.0 $ 235.1 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 30, 2023 | |
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 2023, 2022 and 2021, the defined contribution expense for Coty Inc. for the U.S. defined contribution plan was $13.7, $13.6 and $15.8, respectively, and the defined contribution expense for the international savings plans was $9.6, $9.7 and $12.0, respectively. Defined contribution expense includes amounts related to discontinued operations, which are not material for any period. Pension Plans - The Company sponsors contributory and noncontributory defined benefit pension plans covering certain U.S. and international employees primarily in France, Germany and Switzerland. Participants in the U.S. defined benefit pension plan no longer accrue benefits. The Company measures defined benefit plan assets and obligations as of the date of the Company’s fiscal year-end. The Company’s defined benefit pension plans are funded primarily through contributions from the Company after consideration of recommendations from the pension plans’ independent actuaries and are funded at levels sufficient to comply with local requirements. Settlements and Curtailments for Pension Plans As part of the Transformation Plan, the Company concluded that restructuring actions resulted in a significant reduction of future services of active employees in certain of the Company’s non-U.S. pension plans. As a result, the Company recognized curtailment gains of $0.7, $1.3 and $6.9 during the years ended June 30, 2023, 2022 and 2021, respectively. Additionally, the Company recognized settlement losses of $0.2, $1.8, and $3.8, of which $0.0, $1.4, and $2.3 were related to restructuring actions during the years ended June 30 2023, 2022 and 2021, respectively. The impact of settlement and curtailment activity on the current and prior comparative periods is included in Other income, net in the Consolidated Statements of Operations. Plan Amendments for Pension Plans - There were no Plan amendments as of June 30, 2023. 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. All of the disclosures below include amounts related to discontinued operations through November 30, 2020, except when otherwise noted. 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 2023 2022 2023 2022 2023 2022 2023 2022 Change in benefit obligation Benefit obligation—July 1 $ 14.5 $ 18.9 $ 343.7 $ 515.9 $ 38.8 $ 50.2 $ 397.0 $ 585.0 Service cost — — 4.8 9.1 0.6 0.8 5.4 9.9 Interest cost 0.7 0.5 10.9 5.9 1.7 0.8 13.3 7.2 Plan participants’ contributions — — 1.1 1.5 0.2 0.2 1.3 1.7 Benefits paid (1.4) (2.1) (14.5) (15.1) (1.9) (2.2) (17.8) (19.4) New employees transfers in — — 1.0 4.2 — — 1.0 4.2 Premiums paid — — (0.5) (0.5) — — (0.5) (0.5) Pension curtailment — — (0.7) (1.6) — — (0.7) (1.6) Other (a) — — 16.2 — — — 16.2 — Pension settlement — — (4.2) (39.3) — — (4.2) (39.3) Actuarial loss (gain) (0.8) (2.8) (16.6) (86.8) (3.3) (10.9) (20.7) (100.5) Effect of exchange rates — — 14.4 (49.6) (0.1) (0.1) 14.3 (49.7) Benefit obligation—June 30 $ 13.0 $ 14.5 $ 355.6 $ 343.7 $ 36.0 $ 38.8 $ 404.6 $ 397.0 Change in plan assets Fair value of plan assets—July 1 $ — $ — $ 101.5 $ 159.1 $ — $ — $ 101.5 $ 159.1 Actual return on plan assets — — 1.5 (11.6) — — 1.5 (11.6) Employer contributions 1.4 2.1 13.7 15.7 1.8 2.0 16.9 19.8 Plan participants’ contributions — — 1.1 1.5 0.2 0.2 1.3 1.7 Benefits paid (1.4) (2.1) (14.5) (15.1) (1.9) (2.2) (17.8) (19.4) New employees transfers in — — 1.0 4.2 — — 1.0 4.2 Premiums paid — — (0.5) (0.5) — — (0.5) (0.5) Plan settlements — — (4.2) (39.1) — — (4.2) (39.1) Other (a) — — 16.2 — — — 16.2 — Effect of exchange rates — — 5.1 (12.7) — — 5.1 (12.7) Fair value of plan assets—June 30 — — 120.9 101.5 0.1 — 121.0 101.5 Funded status—June 30 $ (13.0) $ (14.5) $ (234.7) $ (242.2) $ (35.9) $ (38.8) $ (283.6) $ (295.5) (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 in fiscal 2024. 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, 2023 and 2022, are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2023 2022 2023 2022 2023 2022 2023 2022 Noncurrent assets $ — $ — $ 1.4 $ 1.4 $ — $ — $ 1.4 $ 1.4 Current liabilities (1.3) (1.3) (0.5) (0.8) (2.5) (2.6) (4.3) (4.7) Noncurrent liabilities (11.7) (13.2) (235.6) (242.8) (33.4) (36.2) (280.7) (292.2) Funded status (13.0) (14.5) (234.7) (242.2) (35.9) (38.8) (283.6) (295.5) AOC(L)/I 1.4 3.5 56.1 39.8 18.5 17.6 76.0 60.9 Net amount recognized $ (11.6) $ (11.0) $ (178.6) $ (202.4) $ (17.4) $ (21.2) $ (207.6) $ (234.6) 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. For the fiscal year ended June 30, 2022, the projected benefit obligation actuarial gain of $89.6 was primarily driven by a significant increase in discount rates since June 30, 2021. The actuarial gain in the projected benefit obligation was partially offset by the asset loss of $16.0 as a result of worse than expected asset performance, particularly in Switzerland and Germany. 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. During fiscal 2022 the retiree medical and life insurance plan experienced a gain on the liability of $10.9 primarily driven by the increase in the discount rate. Retirees waiving medical coverage, updated medical trend, and a change in the plan participation assumption for active participants to 50% HSA and 50% OAP also contributed to the gain. The gain was slightly offset due to updated claims and mortality assumption changes. The accumulated benefit obligation for the U.S. defined benefit pension plans was $13.0 and $14.5 as of June 30, 2023 and 2022, respectively. The accumulated benefit obligation for international defined benefit pension plans was $346.3 and $333.0 as of June 30, 2023 and 2022, 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 2023 2022 2023 2022 2023 2022 2023 2022 Projected benefit obligation $ 13.0 $ 14.5 $ 342.0 $ 328.8 $ 13.0 $ 14.5 $ 342.0 $ 328.8 Accumulated benefit obligation 13.0 14.5 333.7 319.0 13.0 14.5 333.7 319.0 Fair value of plan assets — — 106.2 85.3 — — 106.2 85.3 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 2023 2022 2021 2023 2022 2021 2023 2022 2021 2023 2022 2021 Service cost $ — $ — $ — $ 4.8 $ 9.1 $ 18.4 $ 0.6 $ 0.8 $ 1.0 $ 5.4 $ 9.9 $ 19.4 Interest cost 0.7 0.5 0.5 10.9 5.9 8.4 1.7 0.8 1.3 13.3 7.2 10.2 Expected return on plan assets — — — (3.4) (4.5) (6.3) — — — (3.4) (4.5) (6.3) Amortization of prior service (credit) cost — — — (0.1) (0.1) (0.3) (0.2) (0.3) (3.3) (0.3) (0.4) (3.6) Amortization of net (gain) loss (2.9) 0.4 1.5 (0.7) (0.2) (0.2) (2.4) (0.2) (0.1) (6.0) — 1.2 Settlements (gain) loss recognized — — — 0.2 1.8 3.8 — — — 0.2 1.8 3.8 Curtailment (gain) loss recognized — — — (0.7) (1.3) (6.9) — — — (0.7) (1.3) (6.9) Net periodic benefit cost $ (2.2) $ 0.9 $ 2.0 $ 11.0 $ 10.7 $ 16.9 $ (0.3) $ 1.1 $ (1.1) $ 8.5 $ 12.7 $ 17.8 Net periodic benefit costs include amounts related to discontinued operations of $0.0, $0.0, and $6.2 for the years ended June 30, 2023, 2022 and 2021, respectively. 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 2023 2022 2023 2022 2023 2022 2023 2022 Net actuarial (loss) gain $ 1.4 $ 3.5 $ 55.3 $ 39.0 $ 18.2 $ 17.1 $ 74.9 $ 59.6 Prior service credit (cost) — — 0.8 0.8 0.3 0.5 1.1 1.3 Total recognized in AOC(L)/I $ 1.4 $ 3.5 $ 56.1 $ 39.8 $ 18.5 $ 17.6 $ 76.0 $ 60.9 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 2023 2022 2023 2022 2023 2022 2023 2022 Net actuarial (loss) gain $ 0.8 $ 2.8 $ 14.7 $ 71.1 $ 3.3 $ 10.9 $ 18.8 $ 84.8 Amortization or curtailment recognition of prior service (credit) cost — — (0.1) (0.1) (0.2) (0.3) (0.3) (0.4) Recognized net actuarial (gain) loss (2.9) 0.4 (0.5) 1.7 (2.4) (0.2) (5.8) 1.9 Prior service credit (cost) — — — — — — — — Effect of exchange rates — — 2.1 (1.7) 0.2 (0.5) 2.3 (2.2) Total recognized in OCI/(L) $ (2.1) $ 3.2 $ 16.2 $ 71.0 $ 0.9 $ 9.9 $ 15.0 $ 84.1 Pension and Other Post-Employment Benefit Assumptions The weighted-average assumptions used to determine the Company’s projected benefit obligation above are presented below: Pension Plans Other Post-Employment Benefits U.S. International 2023 2022 2023 2022 2023 2022 Discount rates 4.9%-5.3% 4.0%-4.7% 2.0%-4.2% 2.3%-3.4% 4.1%-5.1% 2.9%-4.7% Future compensation growth rates N/A N/A 1.3%-3.2% 1.1%-3.2% N/A N/A The weighted-average assumptions used to determine the Company’s net periodic benefit cost in fiscal 2023, 2022 and 2021 are presented below: Pension Plans Other Post- U.S. International 2023 2022 2021 2023 2022 2021 2023 2022 2021 Discount rates 4.0%-4.7% 2.4%-2.6% 2.5%-2.8% 2.3%-3.4% 0.3%-1.6% 0.4%-6.7% 2.9%-4.7% 1.5%-2.8% 1.7%-2.8% Future compensation growth rates N/A N/A N/A 1.1%-3.2% 1.0%-2.5% 1.5%-6.7% N/A N/A N/A Expected long-term rates of return on plan assets N/A N/A N/A 2.7%-3.8% 1.3%-3.8% 1.0%-5.8% 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, 2023 2022 2021 Health care cost trend rate assumed for next year 7.1% 6.7% 7.5%-7.6% 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 2030 2029 2027 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, 2023 and 2022, by asset category are presented below: % of Plan Assets at Year Ended Target 2023 2022 Equity securities 40% 32% 38% Fixed income securities 49% 37% 42% Cash and other investments 11% 31% 20% Fair Value of Plan Assets The international pension plan assets that the Company measures at fair value on a recurring basis, based on the fair value hierarchy as described in Note 2—Summary of Significant Accounting Policies, as of June 30, 2023 and 2022 are presented below: Level 1 Level 2 Level 3 Total 2023 2022 2023 2022 2023 2022 2023 2022 Equity securities $ 32.1 $ 32.5 $ — $ — $ — $ — $ 32.1 $ 32.5 Fixed income securities: Corporate securities 37.3 33.8 — — — — 37.3 33.8 Other: Cash and cash equivalents 0.2 1.6 — — — — 0.2 1.6 Insurance contracts and other — — — — 51.4 33.6 51.4 33.6 Total pension plan assets $ 69.6 $ 67.9 $ — $ — $ 51.4 $ 33.6 $ 121.0 $ 101.5 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 2023 and 2022 are presented below: June 30, June 30, Insurance contracts: Fair value—July 1 $ 33.6 $ 75.2 Return on plan assets (0.3) (7.5) Purchases, sales and settlements, net 15.5 (31.6) Effect of exchange rates 2.6 (2.5) Fair value—June 30 $ 51.4 $ 33.6 Contributions The Company plans to contribute approximately $1.3 to its remaining U.S. pension plan and expects to contribute approximately $16.2 and $2.4 to its international pension and other post-employment benefit plans, respectively, during fiscal 2024. 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 2024 $ 1.3 $ 21.7 $ 2.5 $ 25.5 2025 1.3 18.3 2.7 22.3 2026 1.2 19.0 2.8 23.0 2027 1.2 19.6 2.9 23.7 2028 1.2 19.8 3.0 24.0 2029 - 2032 5.3 106.9 15.6 127.8 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022, the notional amounts of the outstanding forward foreign exchange contracts designated as cash flow hedges were $28.0 and $30.0, 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, 2023 and 2022, the notional amounts of these outstanding non-designated foreign currency forward and cross currency forward contracts were $1,653.5 and $2,403.8, 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. During September 2019, the Company entered into incremental interest rate swap contracts in the notional amount of $1,000.0, which extended the maturity of the interest rate swap portfolio from 2021 through 2023. In fiscal 2021 and 2022, the Company terminated certain existing interest rate swaps with notional amounts of $700.0 and $200.0 in exchange for cash payments of $4.9 and $1.9, respectively. The related losses from these terminations are included in Interest expense, net, within the Consolidated Statement of Operations. As of June 30, 2023 and 2022, the Company had interest rate swap contracts designated as effective hedges in the notional amounts of $200.0 and $800.0, respectively. These interest rate swaps are designated and qualify as cash flow hedges and were highly effective. 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, 2023 and 2022, the nominal exposures of foreign currency denominated borrowings designated as net investment hedges were €701.3 million and €289.0 million, respectively. The designated hedge amounts were considered highly effective. Forward Repurchase Contracts In June and December 2022, the Company entered into certain forward repurchase contracts to start hedging for two potential $200.0 and $196.0 share buyback programs, in 2024 and 2025, respectively. These forward repurchase contracts are accounted for at fair value, with changes in the fair value recorded in Net income (loss) in the Consolidated Statements of Operations. Refer to Note 23—Equity and Convertible Preferred Stock. Derivative and non-derivative financial instruments which are designated as hedging instruments: The accumulated (loss) gain on foreign currency borrowings classified as net investment hedges in the foreign currency translation adjustment component of AOCI/(L) was $(12.2) and $41.7 as of June 30, 2023 and 2022, 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, 2023 and 2022. 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, 2023 2022 2021 Foreign exchange forward contracts $ (3.7) $ (1.0) $ (0.3) Interest rate swap contracts 5.4 13.9 1.0 Cross-currency swap contracts — — (25.1) Net investment hedges (53.9) 36.3 (256.5) The accumulated gain on derivative instruments classified as cash flow hedges in AOCI/(L), net of tax, was $0.7 and $4.3 as of June 30, 2023 and 2022, 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 $0.2. As of June 30, 2023, 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, 2023 2022 2021 Net Revenues Cost of sales Interest expense, net Net Revenues Cost of sales Interest expense, net Net Revenues Cost of sales Interest expense, net Foreign exchange forward contracts: Amount of gain reclassified from AOCI into income $ — $ (1.6) $ — $ — $ 1.7 $ — $ 1.0 $ — $ — Interest rate swap contracts: Amount of loss reclassified from AOCI into income — — 8.3 — — (13.0) — — (36.1) 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, 2023 2022 2021 Foreign exchange contracts Selling, general and administrative expenses $ (5.1) $ (0.1) $ 0.1 Foreign exchange contracts Interest income (expense), net (69.3) 2.7 26.3 Foreign exchange and forward repurchase contracts Other income (expense), net 168.7 18.4 (0.6) |
MANDATORILY REDEEMABLE FINANCIA
MANDATORILY REDEEMABLE FINANCIAL INTEREST | 12 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
MANDATORILY REDEEMABLE FINANCIAL INTEREST | MANDATORILY REDEEMABLE FINANCIAL INTERESTUnited Arab Emirates subsidiaryThe Company is required under a shareholders agreement to purchase all of the shares held by the noncontrolling interest holder equal to 25% of the outstanding shares of a certain subsidiary in the United Arab Emirates (the “U.A.E. subsidiary”) at the termination of the agreement on December 31, 2020. The final purchase price of $7.1 was paid in July 2021. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTSAs of June 30, 2023, 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 exercise the Call right for the remaining noncontrolling interest of 25% on December 31, 2028, with such transaction to close on December 31, 2029. In addition to the Call right feature, the noncontrolling interest holder has the right to sell the noncontrolling interest to the Company on December 31, 2028, with such transaction to close on December 31, 2029 (a “Put right”). The amount at which the Put right and Call right can be exercised is based on a formula prescribed by the amended shareholders’ agreement as summarized in the table below, multiplied by the noncontrolling interest holder’s percentage interest in the Middle East Subsidiary. Given the provision of the Put right, the entire noncontrolling interest is redeemable outside of the Company’s control and is recorded in the Consolidated Balance Sheets at the estimated redemption value. The Company adjusts the redeemable noncontrolling interest to the redemption values at the end of each reporting period with changes recognized as adjustments to APIC. The Company recognized $93.5 and $69.8 as the redeemable noncontrolling interest balances as of June 30, 2023 and 2022, respectively. Middle East 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, 2023 | |
Equity [Abstract] | |
EQUITY AND CONVERTIBLE PREFERRED STOCK | EQUITY AND CONVERTIBLE PREFERRED STOCK Common Stock As of June 30, 2023, 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, 2023, total authorized shares of Class A Common Stock was 1,250.0 million and total outstanding shares of Class A Common Stock was 852.8 million. In the fiscal years ended June 30, 2023, 2022, and 2021, the Company issued 13.8, 3.3, and 1.7 million shares of its Class A Common Stock, respectively, and received $0.9, nil, and nil in cash, in connection with the exercise of employee stock options and settlement of RSUs. 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. During the fiscal year ended June 30, 2021, the Company reacquired 0.8 million of the 1.4 million shares of Class A Common Stock issued for the restricted stock awards granted during the year ended June 30, 2020. Of the 0.8 million shares of Class A Common Stock reacquired, 0.1 million were withheld for employee taxes due on vested restricted stock awards and 0.7 million were for restricted stock awards forfeited during the year ended, June 30, 2021. During the fiscal years ended June 30, 2023, 2022 and 2021, JAB Beauty B.V. (formerly known as Cottage Holdco B.V.), a wholly-owned subsidiary of JAB Cosmetics B.V. (“JABC”), and JABC acquired 0.0, 0.0 and 0.3 million shares, respectively, of Class A Common Stock in the open market. As of June 30, 2023, the Company’s largest stockholder was JAB Beauty B.V., which owned approximately 53% of Coty’s outstanding Class A Common Stock. JAB Beauty B.V., a wholly-owned subsidiary of JAB Cosmetics B.V. (“JABC”), is indirectly controlled by Lucresca SE, Agnaten SE and JAB Holdings B.V. (“JAB”). The Company’s CEO, Sue Nabi, was granted a one-time sign-on award of restricted stock units (the “Award”) on June 30, 2021. On October 29, 2021, JAB Beauty B.V. completed the transfer of 10.0 million shares of Common Stock to Ms. Nabi in connection with her sign-on award of restricted stock units. See Note 24—Share-Based Compensation Plans for additional information. Series A and A-1 Preferred Stock As of June 30, 2023, total authorized shares of preferred stock are 20.0 million. There are two classes of Preferred Stock, Series A Preferred Stock and Series A-1 Preferred Stock, both with a par value of $0.01 per share. As of June 30, 2023, there were 1.0 million shares of Series A and no shares of Series A-1 Preferred Stock authorized, issued and outstanding. Series A Preferred Stock and Series A-1 Preferred Stock are not entitled to receive any dividends and have no voting rights except as required by law. The Series A and Series A-1 Preferred Stock were issued to executive officers and directors under subscription agreements. Generally, the subscription agreements entitle the holder of the vested Series A or Series A-1 Preferred Stock to exchange the Series A or Series A-1 Preferred Stock into either cash or shares of Class A Common Stock, at the election of the Company, at the exchange value. The exchange value is generally equal to the difference between the 10-day trailing average closing price of a share of Class A Common Stock on the date of exchange and a predetermined hurdle price. The Series A Preferred Stock generally vests on the fifth anniversary of issuance, subject to continued employment with the Company and investment by the holder in shares of Class A Common Stock throughout the vesting period. The Series A-1 Preferred Stock generally vests on graded vesting terms where 60% of the award granted vests after three years, 20% of the award granted vests after four years and 20% of the award granted vests after five years, subject to continued employment with the Company and investment by the holder in shares of Class A Common Stock throughout the vesting period. To the extent the Company controls whether such shares will be settled in cash or equity and intends to settle the grant in equity, the grant is treated as an equity grant, otherwise the grant is treated as a liability grant. The following table summarizes the key terms of the outstanding issuance of Series A Preferred Stock: Issuance Date Type Number of Shares Awarded at Grant Date (millions of shares) Number of Shares Outstanding (millions of shares) Hurdle Price per Share March 27, 2017 (a) (b) Series A 1.0 1.0 $22.39 (a) If the holder does not exchange the vested Series A Preferred Stock by a specified expiration date, the Company must automatically exchange the Series A Preferred Stock into cash or shares, at election of the Company. (b) This grant was sold to Lambertus J.H. Becht (“Mr. Becht”), the Company’s former Chairman of the Board. Under the terms provided in the subscription agreement, the Series A Preferred Stock immediately vested on the grant date and the holder may exchange the vested shares after the fifth anniversary of the date of issuance. The Company requires shareholder approval in order to settle the exchange in shares of Class A Common Stock. Therefore, the award is classified as a liability as of June 30, 2023. An expense (income) of $0.2, $(0.2) and $0.8 was recorded during fiscal 2023, 2022 and 2021, respectively, and has been included in Selling, general and administrative expenses on the Consolidated Statements of Operations. As of June 30, 2023, total issued and outstanding shares of Series A Preferred Stock is 1.0 million, which vested on March 27, 2017. As of June 30, 2023, the Company classified $0.8 of Series A Preferred Stock as a liability, recorded in Other noncurrent liabilities in the Consolidated Balance Sheet. Convertible Series B Preferred Stock On May 11, 2020, the Company entered into an Investment Agreement with KKR Aggregator, relating to the issuance and sale by the Company to KKR Aggregator of up to 1,000,000 shares of the Company’s new Convertible Series B Preferred Stock, par value $0.01 per share (the “Series B Preferred Stock”), for an aggregate purchase price of up to $1,000.0, or $1,000 per share (the “Issuance”). The Company completed the issuances and sales of the Series B Preferred Stock on May 26, 2020 and July 31, 2020. 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, that is beneficially owned by Peter Harf, a director of the Company. The transaction closed on August 27, 2021. 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, 2023 and 2022, the Board of Directors declared dividends on the Series B Preferred Stock of $13.2 and $35.2, paid accrued dividends of $13.2 and $55.8 and converted/exchanged dividends of $0.0 and $50.1, respectively. As of June 30, 2023, 2022 and 2021, the Series B Preferred Stock had outstanding accrued dividends of $3.3, $3.3 and $74.1, respectively. Dividend Rights and Liquidation Preferences. The Series B Preferred Stock rank senior to the Company’s Common Stock with respect to dividend rights and rights on the distribution of assets on any liquidation, dissolution or winding up of the affairs of the Company. The Series B Preferred Stock has a liquidation preference of $1,000 per share, representing an aggregate liquidation preference of $1,000.0 upon issuance. Holders of the Series B Preferred Stock are entitled to the dividend at the rate of 9% per annum, accruing daily and payable quarterly in arrears. The dividend rate will increase by a 1% on the seven-year anniversary of the Closing Date and shall increase by an additional 1% on each subsequent anniversary up to a total of 12%. If the Company does not declare and pay a dividend on the Series B Preferred Stock on any dividend payment date, the dividend rate will increase by 1% per annum until all accrued but unpaid dividends have been paid in full. Dividends will be payable in cash, or by increasing the amount of accrued dividends on Series B Preferred Stock, or any combination thereof, at the sole discretion of the Company. Accrued and unpaid dividends are not payable in shares unless the Series B Preferred Stock is converted to Common Stock. Conversion Features. The Series B Preferred Stock is convertible at the option of the holders at any time into shares of Common Stock at an initial conversion price of $6.24 per share of Series B Preferred Stock and an initial conversion rate of 160.2564 shares of Common Stock per share of Series B Preferred Stock. At any time after the third anniversary of the closing date, if the volume weighted average price of the Common Stock exceeds $12.48 per share for at least 20 trading dates in any period of 30 consecutive trading days, at the election of the Company, all or any portion of the Series B Preferred Stock will be convertible into the relevant number of shares of Common Stock. Redemption Features. At any time following the fifth anniversary of the Closing Date, the Company may redeem some or all of the Series B Preferred Stock for a per share amount in cash equal to (i) the sum of (x) 100% of the liquidation preference plus (y) all accrued and unpaid dividends, multiplied by (ii) (A) 107% if the redemption occurs at any time after the fifth anniversary of the Closing Date and prior to the sixth anniversary of the Closing Date, (B) 105% if the redemption occurs at any time after the sixth anniversary of the Closing Date and prior to the seventh anniversary of the Closing Date, and (C) 100% if the redemption occurs at any time after the seventh anniversary of the Closing Date. Voting rights. Holders of Series B Preferred Stock are entitled to vote with holders of Common Stock on an as-converted basis, subject to the Ownership Limitation as defined in the Investment Agreement. Holders of the Series B Preferred Stock are entitled to a separate class vote with respect to, among other things, amendments to the Company’s organizational documents that have an adverse effect on the Series B Preferred Stock, authorizations or issuances by the Company of securities that are senior to, or equal in priority with, the Series B Preferred Stock, increases or decreases in the number of authorized shares of Series B Preferred Stock, and issuances of shares of the Series B Preferred Stock. Change of Control Put. Upon certain change of control events involving the Company holders of Series B Preferred Stock may, at the holder’s election (i) convert their shares of Series B Preferred Stock into Common Stock at the then-current conversion price or (ii) cause the Company to redeem their shares of Series B Preferred Stock in an amount in cash equal to (x) if the change of control occurs on or before the fifth anniversary of the Closing Date, 110% of the sum of the liquidation preference thereof plus any accrued and unpaid dividends and (y) if the change of control occurs on or after the fifth anniversary of the Closing Date, 100% of the Redemption Price, provided that in the case of either clause (i) or (ii) above, if such change of control occurs on or before the fifth anniversary of the Closing Date, the Company will also be required to pay the holders of the Series B Preferred Stock a “make-whole” premium. Participation and Other Pertinent Rights. Following the Second Exchange, 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. 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, 2023. Total dividends in cash and other recorded to additional paid-in capital (“APIC”) in the Consolidated Balance Sheet as of June 30, 2023 and 2022 was $0.1 and $0.8, respectively, which represents dividends no longer expected to vest as a result of forfeitures of outstanding RSUs. In addition to the activity noted above, the Company made payments of $0.7, of which $0.2 relates to tax, and $1.4, respectively, for the previously accrued dividends on RSUs that vested during the twelve months ended June 30, 2023 and 2022. Total accrued dividends on unvested RSUs and phantom units included in Accrued expenses and other current liabilities are $1.0 and $1.4 as of June 30, 2023 and 2022, respectively. In addition, accrued dividends of $0.1 and $0.5 are included in Other noncurrent liabilities as of June 30, 2023 and 2022, respectively. 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, 2021 $ (15.5) $ (32.2) $ (259.3) $ (14.9) $ (321.9) Other comprehensive income (loss) before reclassifications 11.0 36.3 (511.5) 58.0 (406.2) Net amounts reclassified from AOCI/(L) (a) 8.8 — — 1.4 10.2 Net current-period other comprehensive income (loss) 19.8 36.3 (511.5) 59.4 (396.0) Ending balance at June 30, 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) (a) Amortization of actuarial gains of $6.1 and $1.6, net of taxes of $1.5 and $0.2, were reclassified out of AOCI/(L) and included in the computation of net period pension costs for the fiscal years ended June 30, 2023 and 2022, respectively (see Note 19—Employee Benefit Plans). Treasury Stock - Share Repurchase Program Since February 2014, the Board has authorized the Company to repurchase its Class A Common Stock under approved repurchase programs. On February 3, 2016, the Board authorized the Company to repurchase up to $500.0 of its Class A Common Stock (the “Incremental Repurchase Program”). Such 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, 2023, the Company has $396.8 remaining under the Incremental Repurchase Program. There were no share repurchase activities during the years ended June 30, 2023, 2022 and 2021 under the Incremental Repurchase Program. In June and December 2022, 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 and $196.0 share buyback programs in 2024 and 2025, respectively. In connection with the June and December 2022 Forward transactions, the Company incurred certain execution fees of $2.0 and $2.0, respectively, which were recognized as a premium to the forward price recorded at inception and amortized ratably over the contract periods. 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 June and December 2022 Forward transactions were 8.2% and 9.2%, respectively, as of June 30, 2023. As part of the June 2022 Forward transaction, two of the Counterparties purchased approximately 27.0 million shares of the Company’s Class A Common Stock. In addition, as part of the December 2022 Forward transaction, these two Counterparties purchased approximately 11.0 million shares of the Company’s Class A Common Stock. The June and December 2022 Forward agreements require the Company to: (i) repurchase the shares on or before June 6, 2024 and December 15, 2024, 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 income, net in the Condensed Consolidated Statement of Operations. The fair values of the Company’s Forwards were $219.8 and $24.5 as of June 30, 2023 and 2022, 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. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANSThe Company has various share-based compensation programs (the “the Compensation Plans”) under which awards, including non-qualified stock options, Series A and Series A-1 Preferred Stock, RSUs, 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, 2023, 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, 2023, approximately 46.3 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. The Company accounts for its share-based compensation plans for Common Stock as equity plans. The share-based compensation for equity plans is estimated and fixed at the grant date, based on the estimated fair value of the award. Series A Preferred Stock is accounted for partially as equity and partially using liability plan accounting to the extent the award is expected to be settled in cash. Accordingly, share-based compensation expense for the liability plan awards are measured at the end of each reporting period based on the fair value of the award on each reporting date and recognized as an expense to the extent earned. Total share-based compensation from continuing operations is shown in the table below: 2023 2022 2021 Equity plan expense (a) $ 134.7 $ 195.4 $ 25.4 Equity plan modified and cash settled — — 0.9 Liability plan expense (income) 1.2 0.1 1.6 Fringe expense 1.7 2.3 0.5 Total share-based compensation expense (b) $ 137.6 $ 197.8 $ 28.4 (a) Equity plan shared-based compensation expense of $134.7, $195.4, and $27.4 was recorded to additional paid in capital and presented in the Consolidated Statement of Equity for the fiscal years ended June 30, 2023, 2022, and 2021, respectively. Of the $134.7, $195.4, and $27.4 for the fiscal years ended June 30, 2023, 2022, and 2021, respectively, $0.0, $0.0, and $2.0 was reclassified to discontinued operations. (b) Expenses relating to share-based awards granted to non-Coty employees (Wella) are recorded within other income, net, within the Consolidated Statement of Operations. See Note 27 -Related Party Transactions for additional information. The share-based compensation expense for fiscal 2023, 2022 and 2021 of $137.6, $197.8 and $28.4, respectively, includes $138.7, $202.0, and $34.7 expense for the respective period offset by $(1.1), $(4.2) and $(6.3) of income for the respective periods primarily due to significant executive forfeitures of share-based compensation instruments. As of June 30, 2023, the total unrecognized share-based compensation expense related to unvested stock options, Series A Preferred Stock, restricted stock, PRSUs, and restricted stock units and other share awards is $0.8, $0.0, $3.2, $5.0 and $172.9, respectively. The unrecognized share-based compensation expense related to unvested stock options, Series A Preferred Stock, restricted stock, PRSUs, and restricted stock units and other share awards is expected to be recognized over a weighted-average period of 0.86, 0.00, 1.95, 2.31 and 3.74 years, respectively. Non-Qualified Stock Options During fiscal 2023, 2022 and 2021, the Company granted 0.0 million, 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, 2023 and activity during the fiscal year then ended are presented below: Shares Weighted Aggregate Weighted Outstanding at July 1, 2022 5.8 $ 12.85 Exercised (0.1) 11.08 Forfeited (0.6) 11.42 Outstanding at June 30, 2023 5.1 $ 13.06 Vested and expected to vest at June 30, 2023 4.9 $ 13.13 $ — 5.10 Exercisable at June 30, 2023 4.1 $ 13.48 $ — 4.95 Of the 5.1 million stock options outstanding at June 30, 2023, 2.0 million vest on the fifth anniversary of the grant date and 3.1 million vest on the graded vesting schedule. As of June 30, 2023, the grant prices of the outstanding options ranged from $11.08 to $18.55, and the grant prices for exercisable options ranged from $11.08 to $18.55. A summary of the aggregated intrinsic value of stock options exercised for fiscal 2023 is presented below: 2023 Intrinsic value of options exercised $ 0.1 The Company’s non-vested non-qualified stock options as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Weighted Non-vested at July 1, 2022 2.3 $ 3.14 Vested (0.9) 3.70 Forfeited (0.4) 2.23 Non-vested at June 30, 2023 1.0 $ 3.02 The share-based compensation expense recognized on the non-qualified stock options was $1.3, $(0.9) and $0.5 during fiscal 2023, 2022 and 2021, respectively. Executive Ownership Programs The Company encourages executive stock ownership through various programs. These programs govern shares of Class A Common Stock purchased by employees (“Purchased Shares”). Employees purchased 0.0 million, 0.0 million and 0.1 million shares in fiscal 2023, 2022 and 2021, respectively, and received matching non-qualified stock options or RSUs in accordance with the terms of the Compensation Plans under the Omnibus Long-Term Incentive Plan (“Omnibus LTIP”). There was no share-based compensation expense recorded in connection with Purchased Shares for fiscal 2023, 2022 and 2021. Additionally, share-based compensation expense recorded in connection with matching stock awards granted in accordance with the Compensation Plans are noted in their respective section of this footnote. Series A Preferred Stock In addition to the Executive Ownership Programs discussed above, the Series A Preferred Stock are accounted for partially as equity and partially as a liability as of June 30, 2023, 2022 and 2021 and the Company recognized an expense (income) of $0.2, $(0.2) and $0.8 in fiscal 2023, 2022 and 2021, respectively. See Note 23—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 2021 Expected life, in years 0.74 years 1.74 years 2.74 years Expected volatility 66.31% 65.57% 51.64% Risk-free rate of return 5.44% 2.89% 0.46% Dividend yield on Class A Common Stock —% 1.56% 1.34% 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, 2023 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, 2022 1.5 $ 22.10 Forfeited (0.5) 21.52 Outstanding at June 30, 2023 1.0 22.39 Vested and expected to vest at June 30, 2023 1.0 $ 22.39 $ — 0.74 Exercisable 1.0 $ 22.39 $ — 0.74 The Company’s non-vested shares of Series A Preferred Stock as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Weighted Non-vested at July 1, 2022 0.2 $ 3.65 Forfeited (0.2) 3.65 Non-vested at June 30, 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 will vest and settle in 10,000,000 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, subject to her continued employment through each such date. The Company will recognize approximately $280.2 of 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. As such, $93.4 and $170.9 were recognized in fiscal years ended June 30, 2023 and 2022. In addition, $15.9 will be recognized in the fiscal year ending 2024. In connection with this Award, on October 29, 2021, JAB Beauty B.V., the Company’s largest stockholder and a wholly-owned subsidiary of JAB Holding Company S.à r.l., completed the transfer of 10,000,000 shares of Common Stock to Ms. Nabi. In the event Ms. Nabi remains employed through the third vesting date, JAB Beauty B.V. has agreed, pursuant to an equity transfer agreement, to transfer (either directly or through contributing to the Company) an additional 5,000,000 shares of Common Stock to Ms. Nabi. On August 31, 2022, the Company issued 10,000,000 shares of Class A Common Stock to Ms. Nabi in connection with the second vesting of the Award. On May 4, 2023 the Company granted Ms. Nabi 10,416,667 RSUs (the “Second Award”), which 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. For the fiscal year ended June 30, 2023, $3.2 was recognized. In addition, pursuant to the terms of the amended employment agreement the Company agreed to grant Ms. Nabi an award of 2,083,333 PRSUs which shall fully vest on September 1, 2026, subject to the achievement of three-year performance objectives to be determined by the Board on or around September 2023 and subject to Ms. Nabi’s continued employment. The new arrangement also provides that on or around each September 1 of 2024 through 2027, the Company shall grant Ms. Nabi an additional award of 2,083,333 PRSUs, 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 On October 14, 2020, the Company’s Board of Directors approved a new vesting schedule applicable to RSUs granted during fiscal 2021, to three-year graded vesting where one-third of each award granted vests after the first anniversary of grant, one-third of each award granted vests after the second anniversary of grant and one-third of each awarded granted vests after the third anniversary of grant. On October 14, 2021, the Company’s Board of Directors approved a new vesting schedule applicable to RSUs granted during fiscal 2022, to three-year graded vesting where one-quarter of each award granted vests after the first anniversary of grant, one-quarter of each award granted vests after the second anniversary of grant and one-half of each awarded granted vests after the third anniversary of grant. During fiscal 2023, 2022 and 2021, 17.2 million, 4.6 million and 38.1 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, 2023 and activity during the fiscal year then ended are presented below: Shares Aggregate Weighted Outstanding at July 1, 2022 32.4 Granted 17.5 Settled (14.9) Cancelled (1.1) Outstanding at June 30, 2023 33.9 Vested and expected to vest at June 30, 2023 31.0 $ 381.0 2.26 The share-based compensation expense recorded in connection with the RSUs was $131.9, $197.2 and $26.1 during fiscal 2023, 2022 and 2021, respectively. The Company’s outstanding and non-vested RSUs as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Weighted Outstanding and nonvested at July 1, 2022 32.0 $ 8.63 Granted 17.5 9.70 Vested (15.0) 8.79 Cancelled (1.1) 8.02 Outstanding and nonvested at June 30, 2023 33.4 $ 9.38 The total intrinsic value of RSUs vested and settled during fiscal 2023, 2022 and 2021 is $34.3, $33.5 and $32.9, respectively. Performance Restricted Stock Units During fiscal 2023, 1.2 million PRSUs were granted under the Omnibus LTIP. The Company’s outstanding PRSUs as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Aggregate Weighted Outstanding at July 1, 2022 — Granted 1.2 Settled — Outstanding at June 30, 2023 1.2 Vested and expected to vest at June 30, 2023 1.0 12.3 2.31 The share-based compensation expense recorded in connection with the PRSUs was $1.5 during fiscal 2023. The Company’s outstanding and non-vested PRSUs as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Weighted Outstanding and nonvested at July 1, 2022 — Granted 1.2 6.62 Vested — Outstanding and nonvested at June 30, 2023 1.2 $ 6.62 The total intrinsic value of PRSUs vested and settled during fiscal 2023 was $0.0. Restricted Stock During fiscal 2023, 2022 and 2021, 0.4 million, 0.3 million and 0.0 million, restricted stock awards were granted under the Omnibus LTIP. The Company’s outstanding restricted stock as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Aggregate Weighted Outstanding at July 1, 2022 0.6 Granted 0.4 Settled (0.3) Outstanding at June 30, 2023 0.7 Vested and expected to vest at June 30, 2023 0.6 $ 7.8 1.95 The share-based compensation expense recorded in connection with the restricted stock was $2.7, $1.8, $1.0 during fiscal 2023, 2022 and 2021, respectively. The Company’s outstanding and non-vested restricted stock as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Weighted Outstanding and nonvested at July 1, 2022 0.6 $ 6.58 Granted 0.4 6.62 Vested (0.3) 5.94 Outstanding and nonvested at June 30, 2023 0.7 $ 6.94 The total intrinsic value of restricted stock vested and settled during fiscal 2023 and 2022 was $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, 2023. |
NET INCOME (LOSS) ATTRIBUTABLE
NET INCOME (LOSS) ATTRIBUTABLE TO COTY INC. PER COMMON SHARE | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023, 2022 and 2021. 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 2023, 2022 and 2021. 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, 2023 2022 2021 Amounts attributable to Coty Inc.: Net income (loss) from continuing operations $ 508.2 $ 253.8 $ (64.0) Convertible Series B Preferred Stock dividends (13.2) (198.3) (102.3) Net income (loss) from continuing operations attributable to common stockholders 495.0 55.5 (166.3) Net income (loss) from discontinued operations, net of tax — 5.7 (137.3) Net income (loss) attributable to common stockholders $ 495.0 $ 61.2 $ (303.6) Weighted-average common shares outstanding: Weighted-average common shares outstanding—Basic 849.0 820.6 764.8 Effect of dilutive stock options and Series A/A-1 Preferred Stock (a) — — — Effect of restricted stock, PRSUs and RSUs (b) 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 886.5 834.1 764.8 Earnings (losses) per common share Earnings (losses) from continuing operations per common share - basic $ 0.58 $ 0.07 $ (0.22) Earnings (losses) from continuing operations per common share - diluted (e) $ 0.57 $ 0.07 $ (0.22) Earnings (losses) from discontinued operations - basic $ 0.00 $ 0.01 $ (0.18) Earnings (losses) from discontinued operations - diluted $ 0.00 $ 0.01 $ (0.18) Earnings (losses) per common share - basic $ 0.58 $ 0.08 $ (0.40) Earnings (losses) per common share - diluted (e) $ 0.57 $ 0.08 $ (0.40) (a) As of June 30, 2023 and 2022, outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase 4.8 million and 8.3 million weighted average anti-dilutive shares of Common Stock, respectively, were excluded from the computation of diluted EPS. As of June 30, 2021, outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase shares of Common Stock were excluded in the computation of diluted loss per share due to the net loss incurred during the period. (b) As of June 30, 2023 and 2022, there were 3.2 million and 1.6 million weighted average anti-dilutive RSUs, respectively, excluded from the computation of diluted EPS. As of June 30, 2021, RSUs were excluded in the computation of diluted loss per share due to the net loss incurred during the period. (c ) As of June 30, 2022, there were 65.4 million dilutive shares of Convertible Series B Preferred Stock excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. As of June 30 2021, Convertible Series B Preferred Stock shares were excluded from the computation of diluted EPS due to the net loss incurred during the period. (d) 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. |
LEGAL AND OTHER CONTINGENCIES
LEGAL AND OTHER CONTINGENCIES | 12 Months Ended |
Jun. 30, 2023 | |
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. Certain Litigation . On June 13, 2023, the Court of Chancery of the State of Delaware approved the settlement of the consolidated purported stockholder class action and derivative complaint concerning the tender offer by Cottage Holdco B.V. (now known as JAB Beauty B.V.) (the “Cottage Tender Offer”) and the Schedule 14D-9 that was filed on May 6, 2019 against certain current and former directors of the Company, JAB Holding Company S.à r.l., JAB Holdings B.V., JAB Cosmetics B.V., and Cottage Holdco B.V. The Company was named as a nominal defendant. The case was captioned Massachusetts Laborers’ Pension Fund v. Harf et al., Case No. 2019-0336-AGB. On June 14, 2019, plaintiffs in the consolidated action filed a Verified Amended Class Action and Derivative Complaint (“Amended Complaint”). After defendants responded to the Amended Complaint, on October 21, 2019, plaintiffs filed a Verified Second Amended Class Action and Derivative Complaint (the “Second Amended Complaint”), alleging that the directors and JAB Holding Company S.à r.l., JAB Holdings B.V., JAB Cosmetics B.V., and Cottage Holdco B.V. breached their fiduciary duties to the Company’s stockholders and breached the Stockholders Agreement. The Second Amended Complaint sought, among other things, monetary relief. On November 21, 2019, the defendants moved to dismiss certain claims asserted in the Second Amended Complaint, and certain of the director defendants also answered the complaint. On May 7, 2020, plaintiffs stipulated to the dismissal without prejudice of JAB Holding Company S.à r.l. from the action. On August 17, 2020, the court denied the remaining motions to dismiss. On March 29, 2023, the parties entered into a Stipulation and Agreement of Compromise and Settlement, the terms of which have been made available as part of the public filing requirements associated with the court-approval process. The settlement was approved by the Court on June 13, 2023 and did not have a material impact on the Company’s financial results. 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, 2023 are: Assessment received Type of assessment Type of Tax Tax period impacted Estimated amount, including interest and penalties as of June 30, 2023 Mar-18 State sales tax credits, which the Treasury Office of the State of Goiás considers as improperly registered ICMS 2016-2017 R$1.1 million (approximately $0.2) (a) Aug-20 ICMS 2017-2019 R$569.3 million (approximately $117.2) Oct-20 Federal excise taxes, which the Treasury Office of the Brazil’s Internal Revenue Service considers as improperly calculated IPI 2016-2017 R$401.9 million (approximately $82.8) Nov-22 IPI 2018-2019 R$537.3 million (approximately $110.6) Nov-20 State sales taxes, which the Treasury Office of the State of Minas Gerais considers as improperly calculated ICMS 2016-2019 R$217.4 million (approximately $44.8) Jun-21 State sales tax, which the Treasury Office of the State of Goiás considers as improperly calculated ICMS 2016-2020 R$63.8 million (approximately $13.1) (a) During the fourth quarter of fiscal 2023, the ICMS assessment received in March 2018 had an unfavorable decision at administrative instance and the Company decided to pay the $0.2 penalty at case closure. The Company does not believe the outcome of this decision will weigh on other pending cases as the case factors for other open ICMS assessments are different. During the third quarter of fiscal 2023, the ICMS assessment received in November 2020 was moved to the judicial process. All other cases are currently in the administrative process. 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. Due to the fiscal environment in Brazil, the possibility of further tax assessments related to the same or similar matters cannot be ruled out. Other Commitments At June 30, 2023, 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 2024 $ 869.3 2025 24.5 2026 22.8 2027 9.9 2028 5.1 Thereafter — Total $ 931.6 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2023 | |
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 eight 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, 2023, would be approximately $4.1. 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. has 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 if and when the Award vests. See Note 24—Share-Based Compensation Plans for more information on the Award. Relationship with KKR As noted in Note 23—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. 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. In June of 2020, KKR Bidco and Coty entered into a separate definitive agreement regarding a strategic transaction (“Wella Transaction”) for the sale of the Company’s Professional and Retail Hair business, which was completed on November 30, 2020. Refer to Note 23—Equity and Convertible Preferred Stock for the definitive agreement entered into with KKR that closed on October 20, 2021. On September 10, 2021, KKR Aggregator converted a portion of its Series B Preferred Stock into Class A common stock of the Company and completed a secondary public offering of the converted shares of Class A common stock. Refer to Note 23—Equity and Convertible Preferred Stock. On October 20, 2021, the Company completed the sale of a 9.4% stake in Wella to KKR Aggregator in the First Exchange. 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 in the Second Exchange, reducing the Company’s total shareholding in the Wella Company to 25.9%. Refer to Note 23—Equity and Convertible Preferred Stock. Following the Second Exchange, 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. During fiscal 2023, 2022 and 2021, fees of nil, nil and $7.6, respectively, were incurred with KKR in connection with the initial and second closings of the Series B Preferred Stock; these fees reduced the carrying value of the stock. During fiscal 2023 and 2022, the Company recognized gains related to its post-closing contingent consideration agreement for the sale of Wella, of $30.8 and $0.7, respectively, reported in Other income, net. The remaining $2.5 is unearned and is included in Other noncurrent liabilities until the contingency is resolved. Refer to Note 3—Discontinued Operations. From time to time, certain funds held by KKR may hold the Company’s Senior Secured and Unsecured Notes (as defined in Note 15—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, 2023, Coty owned 25.9% of the Wella Company as an equity investment and performs certain services to Wella. Refer to Note 13—Equity Investments and Note 28—Subsequent Events. 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. The Company and Wella have also entered into other manufacturing and distribution arrangements to facilitate the Wella Business transition in the U.S. and Brazil. TSA fees and other fees earned were $3.3 and $7.6, respectively, for the year ended June 30, 2023, $87.5 and $6.7, respectively for the year ended June 30, 2022, and $86.6 and $3.4, respectively for the seven months ended June 30, 2021. 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, 2023, accounts receivable from and accounts payable to Wella of $70.6 and $8.3, 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, 2023, the Company has accrued $33.0 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, 2023, 2022, and 2021 Coty recorded $4.6, $0.7, and $2.3 of share-based compensation expense related to Wella employees, which was presented as part of Other 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 income, net in fiscal years 2023, 2022 and 2021 were $2.7, nil and nil respectively. As of June 30, 2023, $0.8 is due from Wella. The Company has certain sublease arrangements with Wella after the sale. For the years ended June 30, 2023, 2022, and seven months ended 2021, the Company reported sublease income of $9.1, $13.3, and $9.1 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, related to the skincare category and Orveda positioning, 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 Beatrice Ballini, a director, serves as a senior member of the Retail Practice and a leader of the Board and CEO Advisory Partners group at Russell Reynolds Associates. From time to time, the Company has engaged Russell Reynolds Associates, a global leadership and search firm, for recruiting assistance. The amounts of such services provided to the Company for fiscal 2023, 2022 and 2021 were $0.9, $0.7 and $2.3, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Sale of Partial Wella Stake On July 18, 2023 the Company announced that it had entered into a binding letter of intent to sell a 3.6% stake in Wella to investment firm IGF Wealth Management for $150.0. The closing of the transaction is subject to, among other things, completion of due diligence and the satisfaction of certain closing conditions, including the approval of the transaction by KKR. If the transaction closes, Coty intends to use the net proceeds to pay down a portion of the outstanding principal balance of its Revolving Credit Facility. Assuming the transaction closes, Coty would retain 22.3% of the Wella Company. 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 with two new tranches of senior secured revolving credit commitments, one in an aggregate principal amount of $1,670 available in dollars and certain other currencies and the other in an aggregate principal amount of €300 million available in euros, maturing in in July 2028, (ii) provided for a credit spread adjustment of 0.10% for all interest periods, with respect to 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. 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”). Coty received net proceeds of $740.6 in connection with the offering of the 2030 Dollar Senior Secured Notes. In accordance with the 2018 Coty Credit Agreement, as amended, the net proceeds received were utilized to pay down a portion of the outstanding principal balance of the 2018 Coty Term B Facility. 2018 Term B Facility repayment On August 3, 2023, the Company repaid €408.0 million of debt outstanding under the 2018 Term B Facility. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jun. 30, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Years Ended June 30, 2023, 2022, and 2021 ($ in millions, except per share data) Valuation and Qualifying Accounts (a) Description Three Years Ended June 30, Balance at Balance Change through Acquisition/Divestiture Charged to Deductions Balance at Allowance for doubtful accounts and other customer deductions: 2023 $ 53.4 $ — $ 4.3 $ (34.5) (b) $ 23.2 2022 47.7 — 26.2 (20.5) (b) 53.4 2021 (a) 91.1 (28.4) 5.7 (20.7) (b) 47.7 Allowance for customer returns: 2023 $ 95.3 $ — $ 103.0 $ (115.5) $ 82.8 2022 89.9 — 128.4 (123.0) 95.3 2021 (a) 67.8 — 131.3 (109.2) 89.9 Deferred tax valuation allowances: 2023 $ 41.7 $ — $ 21.7 $ (2.7) $ 60.7 2022 33.4 — 12.5 (4.2) 41.7 2021 (a) 54.9 (14.9) 1.4 (8.0) 33.4 (a) Includes amounts from continuing operations and held for sale. (b) 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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 508.2 | $ 259.5 | $ (201.3) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
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 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
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 2023” refer to the fiscal year ended June 30, 2023. |
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, 2023 and 2022, the Company had restricted cash of $36.9 and $30.5, respectively, included in Restricted cash in the Consolidated Balance Sheets. The restricted cash balances as of June 30, 2023 and 2022 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, 2023 and 2022. 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 various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, and requirements to support forecasted sales. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. |
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 13—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 2%, 2% and 2% of gross revenue after customer discounts and allowances in fiscal 2023, 2022 and 2021, respectively. Trade spending activities recorded as a reduction to gross revenue after customer discounts and allowances represented 10%, 10%, and 10% in fiscal 2023, 2022 and 2021, 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. |
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 and Series A-1 Preferred Stock. Share-based compensation expense is measured and fixed at the grant date, based on the estimated fair value of the award and is recognized on a straight-line basis, net of estimated forfeitures, over the employee’s requisite service period and, for PRSUs, when it is probable that the performance condition will be achieved. |
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 |
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 13—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, 2023 and 2022, the notional amounts of the outstanding forward foreign exchange contracts designated as cash flow hedges were $28.0 and $30.0, 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, 2023 and 2022, the notional amounts of these outstanding non-designated foreign currency forward and cross currency forward contracts were $1,653.5 and $2,403.8, 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, 2023 and 2022, the nominal exposures of foreign currency denominated borrowings designated as net investment hedges were €701.3 million and €289.0 million, respectively. The designated hedge amounts were considered highly effective. Forward Repurchase Contracts |
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 $(32.3), $3.3 and $(7.8) in fiscal 2023, 2022 and 2021, respectively resulting from non-financing foreign exchange currency transactions are included in the Consolidated Statements of Operations. Assets and liabilities of foreign operations are translated into U.S. dollars at the rates of exchange in effect at the end of the reporting period. Income and expense items are translated at the average exchange rates prevailing during each reporting period presented. Translation gains or losses are reported as cumulative adjustments in Accumulated other comprehensive income (loss) (“AOCI/(L)”). |
Recently Adopted Accounting Pronouncements and Recently Issued and Not Yet Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging- Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. The Company adopted this guidance using the modified retrospective method in the first quarter of fiscal year 2023. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. In July 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors-Certain Leases with Variable Lease Payments, which requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate as an operating lease on the commencement date of the lease if specified criteria are met. The Company adopted this guidance in the first quarter of fiscal year 2023. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. Recently Issued and Not Yet Adopted Accounting Pronouncements Accounting Standard Update(s) Topic Effective Period Summary 2023-01 Leases (Topic 842) - Common Control Arrangements Fiscal 2025 The FASB issued ASU No. 2023-01, Leases (Topic 842) - Common Control Arrangements, which clarifies the accounting for leasehold improvements associated with common control leases. The guidance will be effective for the Company in fiscal 2025 with early adoption permitted. The Company does not expect this ASU will have a material effect on its consolidated financial position, results of operations or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 432.1 $ 424.2 Machinery and equipment 676.4 670.7 Marketing furniture and fixtures 531.8 501.8 Computer equipment and software 751.5 737.9 Construction in progress 81.6 65.2 Property and equipment, gross 2,473.4 2,399.8 Accumulated depreciation and amortization (1,760.5) (1,684.3) Property and equipment, net $ 712.9 $ 715.5 |
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 $ 950.8 $ 936.6 Finite-lived other intangible assets, net 2,847.2 2,966.2 Total Other intangible assets, net $ 3,798.0 $ 3,902.8 Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2022 License and collaboration agreements $ 3,861.9 $ (1,302.2) $ (19.6) $ 2,540.1 Customer relationships 740.0 (473.5) (5.5) 261.0 Trademarks 320.5 (177.1) (0.5) 142.9 Product formulations and technology 83.9 (61.7) — 22.2 Total $ 5,006.3 $ (2,014.5) $ (25.6) $ 2,966.2 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 |
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 2023-01 Leases (Topic 842) - Common Control Arrangements Fiscal 2025 The FASB issued ASU No. 2023-01, Leases (Topic 842) - Common Control Arrangements, which clarifies the accounting for leasehold improvements associated with common control leases. The guidance will be effective for the Company in fiscal 2025 with early adoption permitted. The Company does not expect this ASU will have a material effect on its consolidated financial position, results of operations or cash flows. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations | The following table has selected financial information included in Net income from discontinued operations for the Wella Business. Year Ended June 30, 2023 2022 (a) 2021 (b) Net revenues $ — $ — $ 986.3 Cost of sales — — 322.5 Gross profit — — 663.8 Selling, general and administrative expenses — — 443.7 Restructuring costs — — (0.7) Operating income — — 220.8 Interest expense, net — — 21.3 (Gain) loss on sale of business — (6.1) 246.4 Other (income) expense, net — — (1.0) Income (loss) from discontinued operations before income taxes — 6.1 (45.9) Income tax on discontinued operations — 0.4 91.4 Net income (loss) from discontinued operations $ — $ 5.7 $ (137.3) (a) Net income from discontinued operations for the year ended June 30, 2022 reflect certain working capital adjustments net of the related income tax impact. (b) As the sale of the Wella Business occurred on November 30, 2020, discontinued operations activity, other than the Loss on sale of business, comprises five months for the fiscal year ended 2021. The following is selected financial information included in cash flows from discontinued operations for the Wella Business held for sale: Year Ended June 30, 2023 2022 2021 CASH FLOW FROM INVESTING ACTIVITIES Capital expenditures $ — $ — $ 8.7 |
BUSINESS COMBINATIONS, ASSET _2
BUSINESS COMBINATIONS, ASSET ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of estimated allocation of purchase price to net assets | The purchase consideration paid for the equity interest, the KKW Call Option and rights under the KKW Collaboration Agreement was $200.0 and was allocated as follows using a relative fair value approach at the acquisition date: Estimated fair value Estimated useful life (in years) KKW Collaboration Agreement $ 180.6 20 20% equity interest in KKW Holdings 19.4 Total purchase consideration $ 200.0 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of reportable segments | Year Ended June 30, SEGMENT DATA 2023 2022 2021 Net revenues: Prestige $ 3,420.5 $ 3,267.9 $ 2,720.8 Consumer Beauty 2,133.6 2,036.5 1,909.1 Total $ 5,554.1 $ 5,304.4 $ 4,629.9 Depreciation and amortization: Prestige $ 262.4 $ 313.4 $ 350.4 Consumer Beauty 164.3 203.0 234.9 Total $ 426.7 $ 516.4 $ 585.3 Operating income (loss) from continuing operations Prestige $ 483.7 $ 367.2 $ 158.1 Consumer Beauty 63.3 9.5 26.9 Corporate (3.3) (135.8) (233.6) Total $ 543.7 $ 240.9 $ (48.6) Reconciliation: Operating income (loss) from continuing operations $ 543.7 $ 240.9 $ (48.6) Interest expense, net 257.9 224.0 235.1 Other income, net (419.0) (409.9) (43.9) Income (loss) from continuing operations before income taxes $ 704.8 $ 426.8 $ (239.8) |
Schedule of long-lived assets by geographical areas | As of June 30, Long-lived assets: 2023 2022 U.S. $ 3,597.3 $ 3,724.7 Netherlands 3,367.5 3,313.5 Brazil 495.0 467.9 All other 1,039.0 1,026.9 Total $ 8,498.8 $ 8,533.0 |
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 2023 2022 2021 Fragrances 59.4 % 58.9 % 57.4 % Color Cosmetics 27.9 % 28.7 % 29.3 % Body Care, Skin & Other 12.7 % 12.4 % 13.3 % Total 100.0 % 100.0 % 100.0 % |
RESTRUCTURING COSTS (Tables)
RESTRUCTURING COSTS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring costs | Restructuring costs for the fiscal years ended June 30, 2023, 2022 and 2021 are presented below: Year Ended June 30, 2023 2022 2021 Transformation Plan $ (6.5) $ (6.5) $ 73.2 Other Restructuring — — (9.6) Total $ (6.5) $ (6.5) $ 63.6 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) Cumulative through June 30, 2023 211.9 (1.6) 6.5 216.8 |
Schedule of restructuring liability | The related liability balance and activity of restructuring costs for the Transformation Plan restructuring costs are presented below: Severance and Total Balance—July 1, 2022 $ 55.2 $ 55.2 Restructuring charges 4.6 4.6 Payments (37.8) (37.8) Changes in estimates (11.1) (11.1) Effect of exchange rates (0.9) (0.9) Balance—June 30, 2023 $ 10.0 $ 10.0 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories as of June 30, 2023 and 2022 are presented below: June 30, June 30, Raw materials $ 224.1 $ 171.5 Work-in-process 15.6 13.2 Finished goods 613.7 476.8 Total inventories $ 853.4 $ 661.5 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022 are presented below: June 30, June 30, Due from related party $ 70.6 $ 70.2 Value added tax, sales and other non-income tax assets 60.2 59.4 Expected income tax refunds, credits and prepaid income taxes 102.4 116.3 Prepaid marketing, copyright and agency fees 88.7 66.9 Non-trade receivables 18.4 15.3 Prepaid rent, leases, maintenance and insurance 17.5 10.3 Interest rate swap asset 2.8 7.6 Forward Repurchase Contracts Asset 137.6 — Other 55.4 46.0 Total prepaid expenses and other current assets $ 553.6 $ 392.0 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022 are presented below: June 30, June 30, Land, buildings and leasehold improvements $ 432.1 $ 424.2 Machinery and equipment 676.4 670.7 Marketing furniture and fixtures 531.8 501.8 Computer equipment and software 751.5 737.9 Construction in progress 81.6 65.2 Property and equipment, gross 2,473.4 2,399.8 Accumulated depreciation and amortization (1,760.5) (1,684.3) Property and equipment, net $ 712.9 $ 715.5 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Goodwill as of June 30, 2023, 2022 and 2021 is presented below: Prestige Consumer Beauty Total Gross balance at June 30, 2021 $ 6,384.0 $ 1,774.2 $ 8,158.2 Accumulated impairments (3,110.3) (929.8) (4,040.1) Net balance at June 30, 2021 $ 3,273.7 $ 844.4 $ 4,118.1 Changes during the year ended June 30, 2022 Foreign currency translation (163.3) (40.1) (203.4) 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 |
Schedule of indefinite-lived intangible assets | Other intangible assets, net as of June 30, 2023 and 2022 are presented below: June 30, June 30, Indefinite-lived other intangible assets $ 950.8 $ 936.6 Finite-lived other intangible assets, net 2,847.2 2,966.2 Total Other intangible assets, net $ 3,798.0 $ 3,902.8 The changes in the carrying amount of indefinite-lived other intangible assets are presented below: Trademarks Total Gross balance at June 30, 2021 $ 1,932.2 $ 1,932.2 Accumulated impairments (913.5) (913.5) Net balance at June 30, 2021 $ 1,018.7 $ 1,018.7 Changes during the year ended June 30, 2022 Impairment charges (a) (31.4) (31.4) Foreign currency translation (50.7) (50.7) 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 (a) During fiscal 2022, the Company recognized asset impairment charges of $31.4 relating to the Max Factor and Bourjois trademarks. |
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 $ 950.8 $ 936.6 Finite-lived other intangible assets, net 2,847.2 2,966.2 Total Other intangible assets, net $ 3,798.0 $ 3,902.8 Intangible assets subject to amortization are presented below: Cost Accumulated Amortization Accumulated Impairment Net June 30, 2022 License and collaboration agreements $ 3,861.9 $ (1,302.2) $ (19.6) $ 2,540.1 Customer relationships 740.0 (473.5) (5.5) 261.0 Trademarks 320.5 (177.1) (0.5) 142.9 Product formulations and technology 83.9 (61.7) — 22.2 Total $ 5,006.3 $ (2,014.5) $ (25.6) $ 2,966.2 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 |
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 20.2 years Customer relationships 15.4 years Trademarks 14.9 years Product formulations and technology 21.3 years |
Schedule of finite-lived intangible assets, future amortization expense | The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below: 2024 $ 190.0 2025 185.7 2026 154.8 2027 145.5 2028 142.1 |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 are represented by the following: June 30, June 30, Equity method investments: KKW Holdings (a) $ 8.9 $ 12.6 Equity investments at fair value: Wella (b) 1,060.0 830.0 Total equity investments $ 1,068.9 $ 842.6 (a) On January 4, 2021, the Company completed its purchase of 20% of the outstanding equity of KKW Holdings. (See Note 4—Business Combinations, Asset Acquisitions and Divestitures). During the years ended June 30, 2023 and 2022, the Company recognized $3.7 and $3.6, respectively, representing its share of the investee’s net loss and the amortization of basis differences in Other income, net within the Consolidated Statements of Operations. The following table presents summarized financial information of the Company’s equity method investees for the years ended June 30, 2023 and 2022. 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 $ 2,477.7 $ 2,505.1 Gross profit 1,616.2 1,706.5 Operating income (loss) 163.6 91.9 Loss before income taxes (33.6) (137.8) Net loss (76.2) (171.7) Summarized Balance Sheets information: June 30, June 30, Current assets $ 1,093.4 $ 951.4 Noncurrent assets 4,554.5 4,577.5 Total assets 5,647.9 5,528.9 Current liabilities 1,038.9 985.7 Noncurrent liabilities 2,708.5 2,525.6 Total liabilities 3,747.4 3,511.3 |
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, 2023. There were no internal movements to or from Level 3 from Level 1 or Level 2 for the period ended June 30, 2023. Equity investments at fair value: Balance as of June 30, 2022 $ 830.0 Total gains/(losses) included in earnings 230.0 Balance as of June 30, 2023 $ 1,060.0 |
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, 2023. 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 $ 1,060.0 Discounted cash flows Discount rate 10.75% (a) Growth rate 1.8% - 9.2% (a) Market multiple Revenue multiple 2.5x-3.0x (b) EBITDA multiple 12.0x – 15.0x (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, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities as of June 30, 2023 and 2022 consist of the following: June 30, June 30, Advertising, marketing and licensing $ 338.4 $ 314.9 Customer returns, discounts, allowances and bonuses 261.5 254.1 Compensation and other compensation related benefits 171.1 131.7 Value added, sales and other non-income taxes 71.5 83.1 Derivative liability for foreign currency 4.3 62.1 Restructuring costs 8.9 54.1 Interest 47.0 47.8 Auditing, consulting, legal and litigation accruals 25.2 30.8 Deferred income 6.9 21.5 Factoring - due to counterparty 23.0 12.8 Unfavorable contract liability 10.5 10.1 Due to related party 8.3 4.7 Cross currency swap liability 0.5 3.5 Other 64.9 65.9 Total accrued expenses and other current liabilities $ 1,042.0 $ 1,097.1 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of debt | June 30, June 30, Short-term debt $ — $ — Senior Secured Notes 2026 Dollar Senior Secured Notes due April 2026 900.0 900.0 2026 Euro Senior Secured Notes due April 2026 761.0 731.8 2029 Dollar Senior Secured Notes due January 2029 500.00 500.0 2018 Coty Credit Agreement 2021 Coty Revolving Credit Facility due April 2025 228.9 273.6 2018 Coty Term B Facility due April 2025 1,183.7 1,239.2 Senior Unsecured Notes 2026 Dollar Notes due April 2026 473.0 550.0 2026 Euro Notes due April 2026 196.0 261.4 Brazilian Credit Facility 31.9 42.4 Other long-term debt and finance lease obligations 7.1 0.1 Total debt 4,281.6 4,498.5 Less: Short-term debt and current portion of long-term debt (57.9) (23.0) Total Long-term debt 4,223.7 4,475.5 Less: Unamortized financing fees (29.8) (41.8) Less: Discount on long-term debt (15.7) (24.6) Total Long-term debt, net $ 4,178.2 $ 4,409.1 |
Schedule of long term debt facilities | The Company’s long-term debt facilities consisted of the following as of June 30, 2023 and 2022: Facility Maturity Date Borrowing Capacity (in millions) as of June 30, 2023 Interest Rate Terms Applicable Interest Rate Spread as of June 30, 2023 Debt Discount Repayment Schedule Fiscal 2023 and 2022 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 $2,000.0 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) 1.75% N/A (b) Payable in full at maturity date Brazilian Credit Facilities - October 2023 October 2023 $31.9 3.48% per annum, payable quarterly in arrears beginning on July 5, 2022 3.48% N/A (b) Payable in full at maturity date Brazilian Credit Facilities - September 2023 September 2023 $— 3.74% per annum, payable quarterly in arrears beginning on June 30, 2022 3.74% N/A (b) Repaid in full 2026 Dollar Senior Secured Notes April 2026 $900.0 5.0% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2021 5.000% 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 $715.5 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 €430.6 SOFR (a) plus a margin of 2.50% per annum (d) 2.50% 0.25% 2026 Dollar April 2026 $473.0 6.5% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2018 N/A (b) N/A (b) Payable in full at maturity date 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, 2023 and 2022, 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 2022, the 2018 Coty Revolving Credit Facility was refinanced and replaced by the 2021 Coty Revolving Credit Facility due April 5, 2025 (as described below). (g) Except as described below in amendments to the 2018 Coty Credit Agreement (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 2029 Dollar Senior Secured Notes Year April 15, January 15, 2024 101.250% 100.969% N/A 2025 100.000% 100.000% 102.375% 2026 N/A N/A 101.188% 2027 and thereafter N/A N/A 100.000% each of the years indicated below: Price Year 2026 Dollar Notes 2026 Euro Notes 2023 101.6250% 101.1875% 2024 and thereafter 100.0000% 100.0000% |
Schedule of leverage-based pricing | In the case of the 2021 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 S&P/Moody’s: 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, 2023 through April 5, 2025 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, 2023 June 30, 2022 Carrying Fair Carrying Fair Senior Secured Notes $ 2,161.0 $ 2,066.9 $ 2,131.8 $ 1,914.1 2018 Coty Credit Agreement 1,412.6 1,393.5 1,512.8 1,451.5 Senior Unsecured Notes 669.0 661.5 811.4 733.5 Brazilian Credit Facility 31.9 32.2 42.4 48.2 |
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, 2023, are presented below: Fiscal Year Ending June 30, 2024 $ 55.1 2025 1,389.3 2026 2,330.1 2027 — 2028 — Thereafter 500.0 Total $ 4,274.5 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023, 2022 and 2021. Lease Cost: Year Ended Year Ended Year Ended Operating lease cost $ 76.2 $ 90.4 $ 87.1 Short-term lease cost 0.9 1.2 0.8 Variable lease cost 40.3 39.3 49.5 Sublease income (15.8) (20.0) (14.9) Net lease cost $ 101.6 $ 110.9 $ 122.5 Other information: Operating cash outflows from operating leases (73.8) (83.8) $ (132.4) Right-of-use assets obtained in exchange for lease obligations 25.7 104.9 $ 27.8 Weighted-average remaining lease term - real estate 7.2 years 7.6 years 6.4 years Weighted-average discount rate - real estate leases 4.13 % 3.85 % 3.57 % |
Schedule of future minimum lease payments for operating leases | Future minimum lease payments for the Company’s operating leases as of June 30, 2023 are as follows: Fiscal Year Ending June 30, 2024 $ 78.6 2025 60.0 2026 48.8 2027 41.0 2028 32.7 Thereafter 107.1 Total future lease payments 368.2 Less: imputed interest (55.1) Total present value of lease liabilities $ 313.1 Current operating lease liabilities 65.6 Long-term operating lease liabilities 247.5 Total operating lease liabilities $ 313.1 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, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax | Income (loss) from continuing operations before income taxes in fiscal 2023, 2022 and 2021 is presented below: Year Ended June 30, 2023 2022 2021 United States $ (253.6) $ (277.5) $ (434.4) Foreign 958.4 704.3 194.6 Total $ 704.8 $ 426.8 $ (239.8) |
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 2023, 2022 and 2021 are presented below: Year Ended June 30, 2023 2022 2021 Provision (benefit) for income taxes on continuing operations: Current: Federal $ 2.6 $ 6.6 $ 3.8 State and local 2.6 (6.0) 14.9 Foreign 120.1 152.1 55.2 Total 125.3 152.7 73.9 Deferred: Federal (61.1) (2.7) 41.1 State and local 1.0 (12.8) 5.4 Foreign 116.4 27.6 (292.4) Total 56.3 12.1 (245.9) Provision (benefit) for income taxes on continuing operations $ 181.6 $ 164.8 $ (172.0) |
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 2023, 2022 and 2021 is presented below: Year Ended June 30, 2023 2022 2021 Income (loss) from continuing operations before income taxes $ 704.8 $ 426.8 $ (239.8) Provision (benefit) for income taxes at statutory rate $ 148.0 $ 89.6 $ (50.4) State and local taxes—net of federal benefit 2.8 (14.9) 26.3 Foreign tax differentials (10.1) (16.4) (23.3) Change in valuation allowances 10.2 (2.3) (3.8) Change in unrecognized tax benefit 32.5 (10.6) (18.0) Permanent differences—net (4.9) 25.4 (13.1) Non-deductible executive stock compensation 27.7 37.1 — Currency Loss (13.6) (0.2) — Dispositions of business assets — 12.7 — Russia exit (7.0) 24.1 — Principal relocation — — (234.4) Post-divestiture restructuring — — 130.0 Other (4.0) 20.3 14.7 Provision (benefit) for income taxes on continuing operations $ 181.6 $ 164.8 $ (172.0) Effective income tax rate 25.8 % 38.6 % 71.7 % |
Schedule of deferred tax assets and liabilities | Significant components of deferred income tax assets and liabilities as of June 30, 2023 and 2022 are presented below: June 30, June 30, Deferred income tax assets: Inventories $ 7.5 $ 8.3 Accruals and allowances 54.9 58.6 Sales returns 19.1 17.3 Share-based compensation 4.8 5.1 Employee benefits 55.6 60.3 Net operating loss carry forwards and tax credits 241.4 296.4 Capital loss carry forwards 0.3 1.1 Interest expense limitation carry forward 47.5 28.5 Lease liability 28.6 30.6 Principal relocation lease liability 424.0 434.0 Property, plant and equipment 13.0 — Other 48.4 31.7 Less: valuation allowances (60.7) (41.7) Net deferred income tax assets 884.4 930.2 Deferred income tax liabilities: Intangible assets 817.4 811.9 Property, plant and equipment — 9.2 Licensing rights 27.8 25.7 Right of use asset 28.6 31.2 Other 80.5 69.4 Deferred income tax liabilities 954.3 947.4 Net deferred income tax (liability) asset $ (69.9) $ (17.2) |
Schedule of expirations of tax loss carryforwards | The expirations of tax loss carry forwards, amounting to $686.9 as of June 30, 2023, 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 2024 $ — $ 7.9 $ 0.6 $ 8.5 2025 — 3.1 3.9 7.0 2026 — — 9.5 9.5 2027 — 245.9 27.8 273.7 2028 and thereafter — 115.5 272.7 388.2 Total $ — $ 372.4 $ 314.5 $ 686.9 |
Schedule of reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of UTBs is presented below: Year Ended June 30, 2023 2022 2021 UTBs—July 1 $ 251.6 $ 279.9 $ 277.9 Additions based on tax positions related to the current year 6.7 1.7 32.1 Additions for tax positions of prior years 0.7 20.8 — Reductions for tax positions of prior years (1.4) (29.4) (4.5) Settlements (4.6) (0.2) (0.4) Lapses in statutes of limitations (13.8) (14.1) (33.3) Foreign currency translation (3.7) (7.1) 8.1 UTBs—June 30 $ 235.5 $ 251.6 $ 279.9 |
INTEREST EXPENSE, NET (Tables)
INTEREST EXPENSE, NET (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Interest Income (Expense), Net [Abstract] | |
Schedule of interest expense, net | Interest expense, net for the years ended June 30, 2023, 2022 and 2021 is presented below: Year Ended June 30, 2023 2022 2021 Interest expense $ 261.1 $ 241.2 $ 231.8 Foreign exchange losses (gains), net of derivative contracts 12.2 (10.0) 6.8 Interest income (15.4) (7.2) (3.5) Total interest expense, net $ 257.9 $ 224.0 $ 235.1 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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 2023 2022 2023 2022 2023 2022 2023 2022 Change in benefit obligation Benefit obligation—July 1 $ 14.5 $ 18.9 $ 343.7 $ 515.9 $ 38.8 $ 50.2 $ 397.0 $ 585.0 Service cost — — 4.8 9.1 0.6 0.8 5.4 9.9 Interest cost 0.7 0.5 10.9 5.9 1.7 0.8 13.3 7.2 Plan participants’ contributions — — 1.1 1.5 0.2 0.2 1.3 1.7 Benefits paid (1.4) (2.1) (14.5) (15.1) (1.9) (2.2) (17.8) (19.4) New employees transfers in — — 1.0 4.2 — — 1.0 4.2 Premiums paid — — (0.5) (0.5) — — (0.5) (0.5) Pension curtailment — — (0.7) (1.6) — — (0.7) (1.6) Other (a) — — 16.2 — — — 16.2 — Pension settlement — — (4.2) (39.3) — — (4.2) (39.3) Actuarial loss (gain) (0.8) (2.8) (16.6) (86.8) (3.3) (10.9) (20.7) (100.5) Effect of exchange rates — — 14.4 (49.6) (0.1) (0.1) 14.3 (49.7) Benefit obligation—June 30 $ 13.0 $ 14.5 $ 355.6 $ 343.7 $ 36.0 $ 38.8 $ 404.6 $ 397.0 Change in plan assets Fair value of plan assets—July 1 $ — $ — $ 101.5 $ 159.1 $ — $ — $ 101.5 $ 159.1 Actual return on plan assets — — 1.5 (11.6) — — 1.5 (11.6) Employer contributions 1.4 2.1 13.7 15.7 1.8 2.0 16.9 19.8 Plan participants’ contributions — — 1.1 1.5 0.2 0.2 1.3 1.7 Benefits paid (1.4) (2.1) (14.5) (15.1) (1.9) (2.2) (17.8) (19.4) New employees transfers in — — 1.0 4.2 — — 1.0 4.2 Premiums paid — — (0.5) (0.5) — — (0.5) (0.5) Plan settlements — — (4.2) (39.1) — — (4.2) (39.1) Other (a) — — 16.2 — — — 16.2 — Effect of exchange rates — — 5.1 (12.7) — — 5.1 (12.7) Fair value of plan assets—June 30 — — 120.9 101.5 0.1 — 121.0 101.5 Funded status—June 30 $ (13.0) $ (14.5) $ (234.7) $ (242.2) $ (35.9) $ (38.8) $ (283.6) $ (295.5) (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 in fiscal 2024. |
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, 2023 and 2022, are presented below: Pension Plans Other Post-Employment Benefits Total U.S. International 2023 2022 2023 2022 2023 2022 2023 2022 Noncurrent assets $ — $ — $ 1.4 $ 1.4 $ — $ — $ 1.4 $ 1.4 Current liabilities (1.3) (1.3) (0.5) (0.8) (2.5) (2.6) (4.3) (4.7) Noncurrent liabilities (11.7) (13.2) (235.6) (242.8) (33.4) (36.2) (280.7) (292.2) Funded status (13.0) (14.5) (234.7) (242.2) (35.9) (38.8) (283.6) (295.5) AOC(L)/I 1.4 3.5 56.1 39.8 18.5 17.6 76.0 60.9 Net amount recognized $ (11.6) $ (11.0) $ (178.6) $ (202.4) $ (17.4) $ (21.2) $ (207.6) $ (234.6) |
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 2023 2022 2023 2022 2023 2022 2023 2022 Projected benefit obligation $ 13.0 $ 14.5 $ 342.0 $ 328.8 $ 13.0 $ 14.5 $ 342.0 $ 328.8 Accumulated benefit obligation 13.0 14.5 333.7 319.0 13.0 14.5 333.7 319.0 Fair value of plan assets — — 106.2 85.3 — — 106.2 85.3 |
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 2023 2022 2021 2023 2022 2021 2023 2022 2021 2023 2022 2021 Service cost $ — $ — $ — $ 4.8 $ 9.1 $ 18.4 $ 0.6 $ 0.8 $ 1.0 $ 5.4 $ 9.9 $ 19.4 Interest cost 0.7 0.5 0.5 10.9 5.9 8.4 1.7 0.8 1.3 13.3 7.2 10.2 Expected return on plan assets — — — (3.4) (4.5) (6.3) — — — (3.4) (4.5) (6.3) Amortization of prior service (credit) cost — — — (0.1) (0.1) (0.3) (0.2) (0.3) (3.3) (0.3) (0.4) (3.6) Amortization of net (gain) loss (2.9) 0.4 1.5 (0.7) (0.2) (0.2) (2.4) (0.2) (0.1) (6.0) — 1.2 Settlements (gain) loss recognized — — — 0.2 1.8 3.8 — — — 0.2 1.8 3.8 Curtailment (gain) loss recognized — — — (0.7) (1.3) (6.9) — — — (0.7) (1.3) (6.9) Net periodic benefit cost $ (2.2) $ 0.9 $ 2.0 $ 11.0 $ 10.7 $ 16.9 $ (0.3) $ 1.1 $ (1.1) $ 8.5 $ 12.7 $ 17.8 |
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 2023 2022 2023 2022 2023 2022 2023 2022 Net actuarial (loss) gain $ 1.4 $ 3.5 $ 55.3 $ 39.0 $ 18.2 $ 17.1 $ 74.9 $ 59.6 Prior service credit (cost) — — 0.8 0.8 0.3 0.5 1.1 1.3 Total recognized in AOC(L)/I $ 1.4 $ 3.5 $ 56.1 $ 39.8 $ 18.5 $ 17.6 $ 76.0 $ 60.9 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 2023 2022 2023 2022 2023 2022 2023 2022 Net actuarial (loss) gain $ 0.8 $ 2.8 $ 14.7 $ 71.1 $ 3.3 $ 10.9 $ 18.8 $ 84.8 Amortization or curtailment recognition of prior service (credit) cost — — (0.1) (0.1) (0.2) (0.3) (0.3) (0.4) Recognized net actuarial (gain) loss (2.9) 0.4 (0.5) 1.7 (2.4) (0.2) (5.8) 1.9 Prior service credit (cost) — — — — — — — — Effect of exchange rates — — 2.1 (1.7) 0.2 (0.5) 2.3 (2.2) Total recognized in OCI/(L) $ (2.1) $ 3.2 $ 16.2 $ 71.0 $ 0.9 $ 9.9 $ 15.0 $ 84.1 |
Schedule of assumptions used | The weighted-average assumptions used to determine the Company’s projected benefit obligation above are presented below: Pension Plans Other Post-Employment Benefits U.S. International 2023 2022 2023 2022 2023 2022 Discount rates 4.9%-5.3% 4.0%-4.7% 2.0%-4.2% 2.3%-3.4% 4.1%-5.1% 2.9%-4.7% Future compensation growth rates N/A N/A 1.3%-3.2% 1.1%-3.2% N/A N/A The weighted-average assumptions used to determine the Company’s net periodic benefit cost in fiscal 2023, 2022 and 2021 are presented below: Pension Plans Other Post- U.S. International 2023 2022 2021 2023 2022 2021 2023 2022 2021 Discount rates 4.0%-4.7% 2.4%-2.6% 2.5%-2.8% 2.3%-3.4% 0.3%-1.6% 0.4%-6.7% 2.9%-4.7% 1.5%-2.8% 1.7%-2.8% Future compensation growth rates N/A N/A N/A 1.1%-3.2% 1.0%-2.5% 1.5%-6.7% N/A N/A N/A Expected long-term rates of return on plan assets N/A N/A N/A 2.7%-3.8% 1.3%-3.8% 1.0%-5.8% 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, 2023 2022 2021 Health care cost trend rate assumed for next year 7.1% 6.7% 7.5%-7.6% 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 2030 2029 2027 |
Schedule of allocation of plan assets | The target asset allocations for the Company’s pension plans as of June 30, 2023 and 2022, by asset category are presented below: % of Plan Assets at Year Ended Target 2023 2022 Equity securities 40% 32% 38% Fixed income securities 49% 37% 42% Cash and other investments 11% 31% 20% 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, 2023 and 2022 are presented below: Level 1 Level 2 Level 3 Total 2023 2022 2023 2022 2023 2022 2023 2022 Equity securities $ 32.1 $ 32.5 $ — $ — $ — $ — $ 32.1 $ 32.5 Fixed income securities: Corporate securities 37.3 33.8 — — — — 37.3 33.8 Other: Cash and cash equivalents 0.2 1.6 — — — — 0.2 1.6 Insurance contracts and other — — — — 51.4 33.6 51.4 33.6 Total pension plan assets $ 69.6 $ 67.9 $ — $ — $ 51.4 $ 33.6 $ 121.0 $ 101.5 |
Schedule of effect of significant unobservable inputs, changes in plan assets | The reconciliations of Level 3 plan assets measured at fair value in fiscal 2023 and 2022 are presented below: June 30, June 30, Insurance contracts: Fair value—July 1 $ 33.6 $ 75.2 Return on plan assets (0.3) (7.5) Purchases, sales and settlements, net 15.5 (31.6) Effect of exchange rates 2.6 (2.5) Fair value—June 30 $ 51.4 $ 33.6 |
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 2024 $ 1.3 $ 21.7 $ 2.5 $ 25.5 2025 1.3 18.3 2.7 22.3 2026 1.2 19.0 2.8 23.0 2027 1.2 19.6 2.9 23.7 2028 1.2 19.8 3.0 24.0 2029 - 2032 5.3 106.9 15.6 127.8 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 2021 Foreign exchange forward contracts $ (3.7) $ (1.0) $ (0.3) Interest rate swap contracts 5.4 13.9 1.0 Cross-currency swap contracts — — (25.1) Net investment hedges (53.9) 36.3 (256.5) |
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, 2023 2022 2021 Foreign exchange forward contracts $ (3.7) $ (1.0) $ (0.3) Interest rate swap contracts 5.4 13.9 1.0 Cross-currency swap contracts — — (25.1) Net investment hedges (53.9) 36.3 (256.5) |
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, 2023 2022 2021 Net Revenues Cost of sales Interest expense, net Net Revenues Cost of sales Interest expense, net Net Revenues Cost of sales Interest expense, net Foreign exchange forward contracts: Amount of gain reclassified from AOCI into income $ — $ (1.6) $ — $ — $ 1.7 $ — $ 1.0 $ — $ — Interest rate swap contracts: Amount of loss reclassified from AOCI into income — — 8.3 — — (13.0) — — (36.1) |
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, 2023 2022 2021 Foreign exchange contracts Selling, general and administrative expenses $ (5.1) $ (0.1) $ 0.1 Foreign exchange contracts Interest income (expense), net (69.3) 2.7 26.3 Foreign exchange and forward repurchase contracts Other income (expense), net 168.7 18.4 (0.6) |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Schedule of redeemable noncontrolling interest redemption adjustments | Middle East 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, 2023 | |
Equity [Abstract] | |
Schedule of Series A preferred stock | The following table summarizes the key terms of the outstanding issuance of Series A Preferred Stock: Issuance Date Type Number of Shares Awarded at Grant Date (millions of shares) Number of Shares Outstanding (millions of shares) Hurdle Price per Share March 27, 2017 (a) (b) Series A 1.0 1.0 $22.39 (a) If the holder does not exchange the vested Series A Preferred Stock by a specified expiration date, the Company must automatically exchange the Series A Preferred Stock into cash or shares, at election of the Company. (b) This grant was sold to Lambertus J.H. Becht (“Mr. Becht”), the Company’s former Chairman of the Board. Under the terms provided in the subscription agreement, the Series A Preferred Stock immediately vested on the grant date and the holder may exchange the vested shares after the fifth anniversary of the date of issuance. The Company requires shareholder approval in order to settle the exchange in shares of Class A Common Stock. Therefore, the award is classified as a liability as of June 30, 2023. An expense (income) of $0.2, $(0.2) and $0.8 was recorded during fiscal 2023, 2022 and 2021, respectively, and has been included in Selling, general and administrative expenses on the Consolidated Statements of Operations. |
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, 2021 $ (15.5) $ (32.2) $ (259.3) $ (14.9) $ (321.9) Other comprehensive income (loss) before reclassifications 11.0 36.3 (511.5) 58.0 (406.2) Net amounts reclassified from AOCI/(L) (a) 8.8 — — 1.4 10.2 Net current-period other comprehensive income (loss) 19.8 36.3 (511.5) 59.4 (396.0) Ending balance at June 30, 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) (a) Amortization of actuarial gains of $6.1 and $1.6, net of taxes of $1.5 and $0.2, were reclassified out of AOCI/(L) and included in the computation of net period pension costs for the fiscal years ended June 30, 2023 and 2022, respectively (see Note 19—Employee Benefit Plans). |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of share-based compensation expense | Total share-based compensation from continuing operations is shown in the table below: 2023 2022 2021 Equity plan expense (a) $ 134.7 $ 195.4 $ 25.4 Equity plan modified and cash settled — — 0.9 Liability plan expense (income) 1.2 0.1 1.6 Fringe expense 1.7 2.3 0.5 Total share-based compensation expense (b) $ 137.6 $ 197.8 $ 28.4 (a) Equity plan shared-based compensation expense of $134.7, $195.4, and $27.4 was recorded to additional paid in capital and presented in the Consolidated Statement of Equity for the fiscal years ended June 30, 2023, 2022, and 2021, respectively. Of the $134.7, $195.4, and $27.4 for the fiscal years ended June 30, 2023, 2022, and 2021, respectively, $0.0, $0.0, and $2.0 was reclassified to discontinued operations. (b) Expenses relating to share-based awards granted to non-Coty employees (Wella) are recorded within other income, net, within the Consolidated Statement of Operations. See Note 27 -Related Party Transactions for additional information. |
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 2021 Expected life, in years 0.74 years 1.74 years 2.74 years Expected volatility 66.31% 65.57% 51.64% Risk-free rate of return 5.44% 2.89% 0.46% Dividend yield on Class A Common Stock —% 1.56% 1.34% |
Schedule of outstanding nonqualified stock option activity | The Company’s outstanding non-qualified stock options as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Weighted Aggregate Weighted Outstanding at July 1, 2022 5.8 $ 12.85 Exercised (0.1) 11.08 Forfeited (0.6) 11.42 Outstanding at June 30, 2023 5.1 $ 13.06 Vested and expected to vest at June 30, 2023 4.9 $ 13.13 $ — 5.10 Exercisable at June 30, 2023 4.1 $ 13.48 $ — 4.95 |
Schedule of stock summary | A summary of the aggregated intrinsic value of stock options exercised for fiscal 2023 is presented below: 2023 Intrinsic value of options exercised $ 0.1 |
Schedule of nonvested nonqualified share activity | The Company’s non-vested non-qualified stock options as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Weighted Non-vested at July 1, 2022 2.3 $ 3.14 Vested (0.9) 3.70 Forfeited (0.4) 2.23 Non-vested at June 30, 2023 1.0 $ 3.02 The Company’s non-vested shares of Series A Preferred Stock as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Weighted Non-vested at July 1, 2022 0.2 $ 3.65 Forfeited (0.2) 3.65 Non-vested at June 30, 2023 — $ — |
Scheduled of outstanding Series A preferred shares | The Company’s outstanding Series A Preferred Shares as of June 30, 2023 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, 2022 1.5 $ 22.10 Forfeited (0.5) 21.52 Outstanding at June 30, 2023 1.0 22.39 Vested and expected to vest at June 30, 2023 1.0 $ 22.39 $ — 0.74 Exercisable 1.0 $ 22.39 $ — 0.74 |
Schedule of outstanding RSU and restricted stock activity | The Company’s outstanding RSUs as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Aggregate Weighted Outstanding at July 1, 2022 32.4 Granted 17.5 Settled (14.9) Cancelled (1.1) Outstanding at June 30, 2023 33.9 Vested and expected to vest at June 30, 2023 31.0 $ 381.0 2.26 The Company’s outstanding PRSUs as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Aggregate Weighted Outstanding at July 1, 2022 — Granted 1.2 Settled — Outstanding at June 30, 2023 1.2 Vested and expected to vest at June 30, 2023 1.0 12.3 2.31 |
Schedule of outstanding and non-vested RSU and restricted stock activity | The Company’s outstanding and non-vested RSUs as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Weighted Outstanding and nonvested at July 1, 2022 32.0 $ 8.63 Granted 17.5 9.70 Vested (15.0) 8.79 Cancelled (1.1) 8.02 Outstanding and nonvested at June 30, 2023 33.4 $ 9.38 The Company’s outstanding and non-vested PRSUs as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Weighted Outstanding and nonvested at July 1, 2022 — Granted 1.2 6.62 Vested — Outstanding and nonvested at June 30, 2023 1.2 $ 6.62 |
Schedule of restricted stock activity | The Company’s outstanding restricted stock as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Aggregate Weighted Outstanding at July 1, 2022 0.6 Granted 0.4 Settled (0.3) Outstanding at June 30, 2023 0.7 Vested and expected to vest at June 30, 2023 0.6 $ 7.8 1.95 The Company’s outstanding and non-vested restricted stock as of June 30, 2023 and activity during the fiscal year then ended are presented below: Shares Weighted Outstanding and nonvested at July 1, 2022 0.6 $ 6.58 Granted 0.4 6.62 Vested (0.3) 5.94 Outstanding and nonvested at June 30, 2023 0.7 $ 6.94 |
NET INCOME (LOSS) ATTRIBUTABL_2
NET INCOME (LOSS) ATTRIBUTABLE TO COTY INC. PER COMMON SHARE (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 2021 Amounts attributable to Coty Inc.: Net income (loss) from continuing operations $ 508.2 $ 253.8 $ (64.0) Convertible Series B Preferred Stock dividends (13.2) (198.3) (102.3) Net income (loss) from continuing operations attributable to common stockholders 495.0 55.5 (166.3) Net income (loss) from discontinued operations, net of tax — 5.7 (137.3) Net income (loss) attributable to common stockholders $ 495.0 $ 61.2 $ (303.6) Weighted-average common shares outstanding: Weighted-average common shares outstanding—Basic 849.0 820.6 764.8 Effect of dilutive stock options and Series A/A-1 Preferred Stock (a) — — — Effect of restricted stock, PRSUs and RSUs (b) 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 886.5 834.1 764.8 Earnings (losses) per common share Earnings (losses) from continuing operations per common share - basic $ 0.58 $ 0.07 $ (0.22) Earnings (losses) from continuing operations per common share - diluted (e) $ 0.57 $ 0.07 $ (0.22) Earnings (losses) from discontinued operations - basic $ 0.00 $ 0.01 $ (0.18) Earnings (losses) from discontinued operations - diluted $ 0.00 $ 0.01 $ (0.18) Earnings (losses) per common share - basic $ 0.58 $ 0.08 $ (0.40) Earnings (losses) per common share - diluted (e) $ 0.57 $ 0.08 $ (0.40) (a) As of June 30, 2023 and 2022, outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase 4.8 million and 8.3 million weighted average anti-dilutive shares of Common Stock, respectively, were excluded from the computation of diluted EPS. As of June 30, 2021, outstanding stock options and Series A Preferred Stock with purchase or conversion rights to purchase shares of Common Stock were excluded in the computation of diluted loss per share due to the net loss incurred during the period. (b) As of June 30, 2023 and 2022, there were 3.2 million and 1.6 million weighted average anti-dilutive RSUs, respectively, excluded from the computation of diluted EPS. As of June 30, 2021, RSUs were excluded in the computation of diluted loss per share due to the net loss incurred during the period. (c ) As of June 30, 2022, there were 65.4 million dilutive shares of Convertible Series B Preferred Stock excluded from the computation of diluted EPS as their inclusion would be anti-dilutive. As of June 30 2021, Convertible Series B Preferred Stock shares were excluded from the computation of diluted EPS due to the net loss incurred during the period. (d) 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. |
LEGAL AND OTHER CONTINGENCIES (
LEGAL AND OTHER CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 are: Assessment received Type of assessment Type of Tax Tax period impacted Estimated amount, including interest and penalties as of June 30, 2023 Mar-18 State sales tax credits, which the Treasury Office of the State of Goiás considers as improperly registered ICMS 2016-2017 R$1.1 million (approximately $0.2) (a) Aug-20 ICMS 2017-2019 R$569.3 million (approximately $117.2) Oct-20 Federal excise taxes, which the Treasury Office of the Brazil’s Internal Revenue Service considers as improperly calculated IPI 2016-2017 R$401.9 million (approximately $82.8) Nov-22 IPI 2018-2019 R$537.3 million (approximately $110.6) Nov-20 State sales taxes, which the Treasury Office of the State of Minas Gerais considers as improperly calculated ICMS 2016-2019 R$217.4 million (approximately $44.8) Jun-21 State sales tax, which the Treasury Office of the State of Goiás considers as improperly calculated ICMS 2016-2020 R$63.8 million (approximately $13.1) (a) During the fourth quarter of fiscal 2023, the ICMS assessment received in March 2018 had an unfavorable decision at administrative instance and the Company decided to pay the $0.2 penalty at case closure. The Company does not believe the outcome of this decision will weigh on other pending cases as the case factors for other open ICMS assessments are different. |
Schedule of other commitments | At June 30, 2023, 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 2024 $ 869.3 2025 24.5 2026 22.8 2027 9.9 2028 5.1 Thereafter — Total $ 931.6 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2023 USD ($) | Jun. 30, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 EUR (€) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 EUR (€) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Significant Accounting Policies [Line Items] | ||||||||||
Restricted cash | $ 36.9 | $ 36.9 | $ 30.5 | |||||||
Sales returns, percentage | 2% | 2% | 2% | 2% | ||||||
Trade spending activities, percentage | 10% | 10% | 10% | 10% | ||||||
Advertising expense | $ 1,479.6 | $ 1,465.1 | $ 1,029.4 | |||||||
Research and development expense | 105.2 | 97.3 | 96.5 | |||||||
Net (losses) gains from foreign currency exchange transactions | (29.9) | 16.8 | (26.7) | |||||||
Termination payments | $ 38.3 | € 35.3 | $ 55.6 | € 52.5 | ||||||
Selling, general and administrative expenses | 2,818.3 | 2,881.3 | 2,363.2 | |||||||
Asset impairment charges | $ 0 | 31.4 | 0 | |||||||
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 payments | 93.9 | € 87.8 | ||||||||
Gain on selling, general and administrative expenses from contract termination | 104.4 | |||||||||
Lacoste | Scenario, Forecast | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Termination payments | $ 16.3 | € 15 | ||||||||
Operating Income (Loss) | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Net (losses) gains from foreign currency exchange transactions | (32.3) | 3.3 | (7.8) | |||||||
Interest Expense, Net and Other Expense (Income), Net | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Net (losses) gains from foreign currency exchange transactions | $ (12.2) | 10 | (6.8) | |||||||
Store fixtures | Minimum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Property, plant and equipment, estimated useful life | 3 years | 3 years | ||||||||
Store fixtures | Maximum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Property, plant and equipment, estimated useful life | 5 years | 5 years | ||||||||
Marketing furniture and fixtures | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Depreciation and amortization | $ 103 | $ 119.4 | $ 130.3 | |||||||
Marketing furniture and fixtures | Minimum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Property, plant and equipment, estimated useful life | 3 years | 3 years | ||||||||
Marketing furniture and fixtures | Maximum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Property, plant and equipment, estimated useful life | 5 years | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property Plant and Equipment (Details) | Jun. 30, 2023 |
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, 2023 |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, useful life | 19 years 7 months 6 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 4 months 24 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 10 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 | 21 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 - Narra
DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) | 12 Months Ended | |||||
Dec. 22, 2021 | Nov. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2023 | Jun. 01, 2020 | |
Wella Company | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage | 40% | 25.90% | 25.90% | |||
Equity interest ownership percentage | 40% | |||||
KKR | Wella Business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Noncontrolling interest, ownership percentage | 60% | |||||
Wella Business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal group, including discontinued operation, assets | $ 4,300,000,000 | |||||
Contingent consideration gain | $ 0 | |||||
Unearned contingent proceeds received, liability | $ 34,000,000 | |||||
Unearned contingent proceeds received, advance payment | 700,000 | $ 30,800,000 | ||||
Unearned contingent proceeds received, remaining amount | 2,500,000 | |||||
Discontinued Operations, Disposed of by Sale | Wella Business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (loss) on sale of business | $ 6,100,000 | $ (246,400,000) | ||||
Proceeds from divestiture | $ 2,451,700,000 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Net income (loss) from discontinued operations | $ 0 | $ 5.7 | $ (137.3) |
Discontinued Operations, Disposed of by Sale | Wella Business | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Net revenues | 0 | 0 | 986.3 |
Cost of sales | 0 | 0 | 322.5 |
Gross profit | 0 | 0 | 663.8 |
Selling, general and administrative expenses | 0 | 0 | 443.7 |
Restructuring costs | 0 | 0 | (0.7) |
Operating income | 0 | 0 | 220.8 |
Interest expense, net | 0 | 0 | 21.3 |
(Gain) loss on sale of business | (6.1) | 246.4 | |
Other (income) expense, net | 0 | 0 | (1) |
Income (loss) from discontinued operations before income taxes | 0 | 6.1 | (45.9) |
Income tax on discontinued operations | 0 | 0.4 | 91.4 |
Net income (loss) from discontinued operations | 0 | 5.7 | (137.3) |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Capital expenditures | $ 0 | $ 0 | $ 8.7 |
BUSINESS COMBINATIONS, ASSET _3
BUSINESS COMBINATIONS, ASSET ACQUISITIONS AND DIVESTITURES - KKW Holdings Transaction (Details) - KKW Beauty $ in Millions | Jan. 04, 2021 USD ($) |
Business Acquisition [Line Items] | |
Percentage of equity interests acquired | 20% |
Put option, additional percentage of voting interests to be acquired | 31% |
Payments to acquire business | $ 200 |
BUSINESS COMBINATIONS, ASSET _4
BUSINESS COMBINATIONS, ASSET ACQUISITIONS AND DIVESTITURES - Schedule of Purchase Price Allocation (Details) - KKW Beauty $ in Millions | Jan. 04, 2021 USD ($) |
Business Acquisition [Line Items] | |
Percentage of equity interests acquired | 20% |
Estimated fair value | |
20% equity interest in KKW Holdings | $ 19.4 |
Total purchase consideration | 200 |
Collaboration Agreement | |
Estimated fair value | |
KKW Collaboration Agreement | $ 180.6 |
Estimated useful life (in years) | 20 years |
BUSINESS COMBINATIONS, ASSET _5
BUSINESS COMBINATIONS, ASSET ACQUISITIONS AND DIVESTITURES - Business Divestitures (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Nov. 30, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Repayments of long-term lines of credit | $ 1,600.1 | $ 1,338.8 | $ 3,593.3 | |
Wella Company | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Equity method investment, amount sold (percentage) | 60% | |||
2018 Coty Term A And B Facilities | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Repayments of long-term lines of credit | $ 2,015.5 | |||
2018 Coty Credit Agreement | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from divestiture, amount allocated to reinvestment in the business | $ 500 | |||
Wella Company | Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage after transaction | 40% | |||
Proceeds from divestiture | $ 2,451.7 | |||
Cash disposed from divestiture | 65.5 | |||
Proceeds from divestiture | $ 2,386.2 |
SEGMENT REPORTING - Reporting S
SEGMENT REPORTING - Reporting Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 5,554.1 | $ 5,304.4 | $ 4,629.9 |
Depreciation and amortization | 426.7 | 516.4 | 585.3 |
Operating income (loss) from continuing operations | 543.7 | 240.9 | (48.6) |
Interest expense, net | 257.9 | 224 | 235.1 |
Other income, net | (419) | (409.9) | (43.9) |
Income (loss) from continuing operations before income taxes | 704.8 | 426.8 | (239.8) |
Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 426.7 | 516.4 | 585.3 |
Operating Segments | Prestige | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 3,420.5 | 3,267.9 | 2,720.8 |
Operating income (loss) from continuing operations | 483.7 | 367.2 | 158.1 |
Operating Segments | Prestige | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 262.4 | 313.4 | 350.4 |
Operating Segments | Consumer Beauty | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,133.6 | 2,036.5 | 1,909.1 |
Operating income (loss) from continuing operations | 63.3 | 9.5 | 26.9 |
Operating Segments | Consumer Beauty | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 164.3 | 203 | 234.9 |
Operating Segments | Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) from continuing operations | $ (3.3) | $ (135.8) | $ (233.6) |
SEGMENT REPORTING - Geographic
SEGMENT REPORTING - Geographic Data (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 8,498.8 | $ 8,533 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,597.3 | 3,724.7 |
Netherlands | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,367.5 | 3,313.5 |
Brazil | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 495 | 467.9 |
All other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,039 | $ 1,026.9 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 5,554.1 | $ 5,304.4 | $ 4,629.9 |
U.S. | Sales Revenue | Geographic Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 1,547.7 | $ 1,477.7 | $ 1,288.9 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 100% | 100% | 100% |
Fragrances | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 59.40% | 58.90% | 57.40% |
Color Cosmetics | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 27.90% | 28.70% | 29.30% |
Body Care, Skin & Other | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated revenues | 12.70% | 12.40% | 13.30% |
ACQUISITION- AND DIVESTITURE-_2
ACQUISITION- AND DIVESTITURE-RELATED COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |||
Acquisition-related costs | $ 0 | $ 0 | $ 3 |
Divestiture-related costs | $ 0 | $ 14.7 | $ 135.8 |
RESTRUCTURING COSTS - Restructu
RESTRUCTURING COSTS - Restructuring Costs by Program (Details) - USD ($) $ in Millions | 12 Months Ended | 48 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ (6.5) | $ (6.5) | $ 63.6 | ||
Transformation Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | (6.5) | (6.5) | 73.2 | $ 156.6 | $ 216.8 |
Other Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 0 | $ 0 | $ (9.6) |
RESTRUCTURING COSTS - Narrative
RESTRUCTURING COSTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Jul. 01, 2019 | Jun. 30, 2025 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Transformation Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring plan term | 4 years | |||||
Cumulative restructuring costs | $ 216.8 | |||||
Expected cost remaining | 0 | |||||
Restructuring accrual | 10 | $ 55.2 | ||||
Cash expenditures | 37.8 | |||||
Transformation Plan | Scenario, Forecast | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cash expenditures | $ 1.1 | $ 8.9 | ||||
Other Restructuring Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring accrual | 0 | 0 | ||||
Restructuring expenses (income) | $ 0 | $ 0 | $ (9.6) |
RESTRUCTURING COSTS - Restruc_2
RESTRUCTURING COSTS - Restructuring Costs by Type (Details) - USD ($) $ in Millions | 12 Months Ended | 48 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ (6.5) | $ (6.5) | $ 63.6 | ||
Transformation Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | (6.5) | (6.5) | 73.2 | $ 156.6 | $ 216.8 |
Severance and Employee Benefits | Transformation Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | (6.5) | (6.2) | 73.4 | 151.2 | 211.9 |
Fixed Asset Write-offs | Transformation Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 0 | 0 | (0.5) | (1.1) | (1.6) |
Other Exit Costs | Transformation Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 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, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2022 | $ 55.2 |
Restructuring charges | 4.6 |
Payments | (37.8) |
Changes in estimates | (11.1) |
Effect of exchange rates | (0.9) |
Balance—June 30, 2023 | 10 |
Severance and Employee Benefits | |
Restructuring Reserve [Roll Forward] | |
Balance—July 1, 2022 | 55.2 |
Restructuring charges | 4.6 |
Payments | (37.8) |
Changes in estimates | (11.1) |
Effect of exchange rates | (0.9) |
Balance—June 30, 2023 | $ 10 |
TRADE RECEIVABLES - FACTORING (
TRADE RECEIVABLES - FACTORING (Details) € in Millions | 12 Months Ended | ||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 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 | € | € 102.6 | ||||
Factored Receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Trade receivables, utilized | $ 202,900,000 | $ 179,300,000 | |||
Trade receivables, factored | 1,579,200,000 | 1,041,200,000 | |||
Trade receivables, factoring fees | 8,500,000 | 3,000,000 | $ 1,200,000 | ||
Factored Receivable | Trade Receivables | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Trade receivables, factored, amounts due from factors | $ 14,200,000 | $ 11,200,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 224.1 | $ 171.5 |
Work-in-process | 15.6 | 13.2 |
Finished goods | 613.7 | 476.8 |
Total inventories | $ 853.4 | $ 661.5 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule of Prepaid Expenses and Other Current Assets [Line Items] | ||
Value added tax, sales and other non-income tax assets | $ 60.2 | $ 59.4 |
Expected income tax refunds, credits and prepaid income taxes | 102.4 | 116.3 |
Prepaid marketing, copyright and agency fees | 88.7 | 66.9 |
Non-trade receivables | 18.4 | 15.3 |
Prepaid rent, leases, maintenance and insurance | 17.5 | 10.3 |
Interest rate swap asset | 2.8 | 7.6 |
Forward Repurchase Contracts Asset | 137.6 | 0 |
Other | 55.4 | 46 |
Total prepaid expenses and other current assets | 553.6 | 392 |
Related Party | ||
Schedule of Prepaid Expenses and Other Current Assets [Line Items] | ||
Due from related party | $ 70.6 | $ 70.2 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,473.4 | $ 2,399.8 |
Accumulated depreciation and amortization | (1,760.5) | (1,684.3) |
Property and equipment, net | 712.9 | 715.5 |
Land, buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 432.1 | 424.2 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 676.4 | 670.7 |
Marketing furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 531.8 | 501.8 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 751.5 | 737.9 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 81.6 | $ 65.2 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense on property and equipment | $ 235 | $ 309 | $ 334.1 |
Asset impairment charges | $ 4.3 | $ 2.4 | $ 5.2 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | |||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
Impairment of intangible assets, indefinite-lived | 0 | 31.4 | 0 |
Impairment of intangible assets, finite-lived | 0 | 0 | 0 |
Amortization expense | $ 191.8 | $ 207.4 | $ 251.2 |
Finite-lived intangible assets, useful life | 19 years 7 months 6 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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill [Roll Forward] | |||
Gross beginning balance | $ 7,954.8 | $ 8,158.2 | |
Accumulated impairments | (4,040.1) | (4,040.1) | $ (4,040.1) |
Net beginning balance | 3,914.7 | 4,118.1 | |
Foreign currency translation | 73.2 | (203.4) | |
Gross ending balance | 8,028 | 7,954.8 | 8,158.2 |
Accumulated impairments | (4,040.1) | (4,040.1) | (4,040.1) |
Net ending balance | 3,987.9 | 3,914.7 | |
Prestige | |||
Goodwill [Roll Forward] | |||
Gross beginning balance | 6,220.7 | 6,384 | |
Accumulated impairments | (3,110.3) | (3,110.3) | (3,110.3) |
Net beginning balance | 3,110.4 | 3,273.7 | |
Foreign currency translation | 58.5 | (163.3) | |
Gross ending balance | 6,279.2 | 6,220.7 | 6,384 |
Accumulated impairments | (3,110.3) | (3,110.3) | (3,110.3) |
Net ending balance | 3,168.9 | 3,110.4 | |
Consumer Beauty | |||
Goodwill [Roll Forward] | |||
Gross beginning balance | 1,734.1 | 1,774.2 | |
Accumulated impairments | (929.8) | (929.8) | (929.8) |
Net beginning balance | 804.3 | 844.4 | |
Foreign currency translation | 14.7 | (40.1) | |
Gross ending balance | 1,748.8 | 1,734.1 | 1,774.2 |
Accumulated impairments | (929.8) | (929.8) | $ (929.8) |
Net ending balance | $ 819 | $ 804.3 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Indefinite-lived other intangible assets | $ 950.8 | $ 936.6 | $ 1,018.7 |
Finite-lived other intangible assets, net | 2,847.2 | 2,966.2 | |
Total Other intangible assets, net | $ 3,798 | $ 3,902.8 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Indefinite-lived Intangible Assets [Roll Forward] | |||
Gross beginning balance | $ 1,881.5 | $ 1,932.2 | |
Accumulated impairments | (944.9) | (913.5) | |
Net beginning balance | 936.6 | 1,018.7 | |
Impairment charges | 0 | (31.4) | $ 0 |
Foreign currency translation | 14.2 | (50.7) | |
Gross ending balance | 1,895.7 | 1,881.5 | 1,932.2 |
Accumulated impairments | (944.9) | (944.9) | (913.5) |
Net ending balance | 950.8 | $ 936.6 | 1,018.7 |
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Asset impairment charges | ||
Trademarks | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Gross beginning balance | 1,881.5 | $ 1,932.2 | |
Accumulated impairments | (944.9) | (913.5) | |
Net beginning balance | 936.6 | 1,018.7 | |
Impairment charges | (31.4) | ||
Foreign currency translation | 14.2 | (50.7) | |
Gross ending balance | 1,895.7 | 1,881.5 | 1,932.2 |
Accumulated impairments | (944.9) | (944.9) | (913.5) |
Net ending balance | $ 950.8 | 936.6 | $ 1,018.7 |
Max Factor and Bourjois Trademarks | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Impairment charges | $ (31.4) |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 4,905.4 | $ 5,006.3 |
Accumulated Amortization | (2,032.6) | (2,014.5) |
Accumulated Impairment | (25.6) | (25.6) |
Net | 2,847.2 | 2,966.2 |
License and collaboration agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 3,756.2 | 3,861.9 |
Accumulated Amortization | (1,282.6) | (1,302.2) |
Accumulated Impairment | (19.6) | (19.6) |
Net | 2,454 | 2,540.1 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 750.6 | 740 |
Accumulated Amortization | (505.9) | (473.5) |
Accumulated Impairment | (5.5) | (5.5) |
Net | 239.2 | 261 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 313 | 320.5 |
Accumulated Amortization | (180.6) | (177.1) |
Accumulated Impairment | (0.5) | (0.5) |
Net | 131.9 | 142.9 |
Product formulations and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 85.6 | 83.9 |
Accumulated Amortization | (63.5) | (61.7) |
Accumulated Impairment | 0 | 0 |
Net | $ 22.1 | $ 22.2 |
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, 2023 |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 19 years 7 months 6 days |
License and collaboration agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 20 years 2 months 12 days |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 15 years 4 months 24 days |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 14 years 10 months 24 days |
Product formulations and technology | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining lives | 21 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, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 190 |
2025 | 185.7 |
2026 | 154.8 |
2027 | 145.5 |
2028 | $ 142.1 |
EQUITY INVESTMENTS - Schedule o
EQUITY INVESTMENTS - Schedule of equity investments (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Nov. 30, 2021 | Oct. 20, 2021 | Nov. 30, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jan. 04, 2021 | |
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Total equity investments | $ 1,068.9 | $ 842.6 | ||||
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 | 8.9 | 12.6 | ||||
Loss from equity method investments | 3.7 | 3.6 | ||||
Wella Company | ||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Equity investments at fair value | $ 1,060 | $ 830 | ||||
Equity method investment, amount sold (percentage) | 4.70% | 9.40% | ||||
Ownership percentage | 40% | 25.90% | 25.90% | |||
Wella Business | ||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Equity method investment, amount sold (percentage) | 60% |
EQUITY INVESTMENTS - Summarized
EQUITY INVESTMENTS - Summarized Statements of Operations Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Net revenues | $ 5,554.1 | $ 5,304.4 | $ 4,629.9 |
Gross profit | 3,547.3 | 3,369.2 | 2,768.2 |
Operating income (loss) | 543.7 | 240.9 | (48.6) |
Loss before income taxes | 704.8 | 426.8 | (239.8) |
Net loss | 523.2 | 267.7 | $ (205.1) |
KKW Beauty And Wella | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Gross profit | 1,616.2 | 1,706.5 | |
Net loss | (76.2) | (171.7) | |
KKW Beauty And Wella | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Net revenues | 2,477.7 | 2,505.1 | |
Operating income (loss) | 163.6 | 91.9 | |
Loss before income taxes | $ (33.6) | $ (137.8) |
EQUITY INVESTMENTS - Summariz_2
EQUITY INVESTMENTS - Summarized Balance Sheet Information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Current assets | $ 2,051.7 | $ 1,681.9 |
TOTAL ASSETS | 12,661.6 | 12,116.1 |
Current liabilities | 2,736.8 | 2,565.6 |
TOTAL LIABILITIES | 8,428.3 | 8,558.1 |
KKW Beauty And Wella | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Current assets | 1,093.4 | 951.4 |
Noncurrent assets | 4,554.5 | 4,577.5 |
TOTAL ASSETS | 5,647.9 | 5,528.9 |
Current liabilities | 1,038.9 | 985.7 |
Noncurrent liabilities | 2,708.5 | 2,525.6 |
TOTAL LIABILITIES | $ 3,747.4 | $ 3,511.3 |
EQUITY INVESTMENTS - Narrative
EQUITY INVESTMENTS - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Nov. 30, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | |||
Common stock, shares issued (in shares) | 919.3 | 905.5 | |
Redeemable preferred stock, shares issued (in shares) | 0.1 | 0.1 | |
Wella Company | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Common stock, shares issued (in shares) | 30 | ||
Redeemable preferred stock, shares issued (in shares) | 1,843.2 | ||
Total equity | $ 1,938.8 | ||
Wella Company | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Ownership percentage | 25.90% | 25.90% | 40% |
EQUITY INVESTMENTS - Summary of
EQUITY INVESTMENTS - Summary of Movement in Equity Investments (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2023 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, 2022 | $ 830 |
Total gains/(losses) included in earnings | 230 |
Balance as of June 30, 2023 | $ 1,060 |
EQUITY INVESTMENTS - Summary _2
EQUITY INVESTMENTS - Summary of Significant Unobservable Inputs Used in Level 3 Valuation (Details) - Wella Company $ in Millions | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity investments at fair value | $ 1,060 | $ 830 |
Level 3 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity investments at fair value | $ 1,060 | |
Level 3 | Discount rate | Discounted cash flows | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Unobservable input | 0.1075 | |
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 | 0.092 | |
Level 3 | Revenue multiple | Market multiple | Minimum | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Unobservable input | 2.5 | |
Level 3 | Revenue multiple | Market multiple | Maximum | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Unobservable input | 3 | |
Level 3 | EBITDA multiple | Market multiple | Minimum | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Unobservable input | 12 | |
Level 3 | EBITDA multiple | Market multiple | Maximum | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Unobservable input | 15 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Derivative [Line Items] | ||
Advertising, marketing and licensing | $ 338.4 | $ 314.9 |
Customer returns, discounts, allowances and bonuses | 261.5 | 254.1 |
Compensation and other compensation related benefits | 171.1 | 131.7 |
Value added, sales and other non-income taxes | 71.5 | 83.1 |
Derivative liability for foreign currency | $ 4.3 | $ 62.1 |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Restructuring costs | $ 8.9 | $ 54.1 |
Interest | 47 | 47.8 |
Auditing, consulting, legal and litigation accruals | 25.2 | 30.8 |
Deferred income | 6.9 | 21.5 |
Factoring - due to counterparty | 23 | 12.8 |
Unfavorable contract liability | 10.5 | 10.1 |
Other | 64.9 | 65.9 |
Total accrued expenses and other current liabilities | 1,042 | 1,097.1 |
Related Party | ||
Derivative [Line Items] | ||
Due to related party | 8.3 | 4.7 |
Cross-currency swap contracts | ||
Derivative [Line Items] | ||
Cross currency swap liability | $ 0.5 | $ 3.5 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Short-term debt | $ 0 | $ 0 |
Long term debt | 4,274.5 | |
Brazilian Credit Facility | 31.9 | 42.4 |
Other long-term debt and finance lease obligations | 7.1 | 0.1 |
Total debt | 4,281.6 | 4,498.5 |
Less: Short-term debt and current portion of long-term debt | (57.9) | (23) |
Total Long-term debt | 4,223.7 | 4,475.5 |
Less: Unamortized financing fees | (29.8) | (41.8) |
Less: Discount on long-term debt | (15.7) | (24.6) |
Total Long-term debt, net | 4,178.2 | 4,409.1 |
Senior Notes | 2026 Dollar Senior Secured Notes due April 2026 | ||
Debt Instrument [Line Items] | ||
Long term debt | 900 | 900 |
Senior Notes | 2026 Euro Senior Secured Notes due April 2026 | ||
Debt Instrument [Line Items] | ||
Long term debt | 761 | 731.8 |
Senior Notes | 2029 Dollar Senior Secured Notes due January 2029 | ||
Debt Instrument [Line Items] | ||
Long term debt | 500 | 500 |
Senior Notes | 2026 Dollar Notes due April 2026 | ||
Debt Instrument [Line Items] | ||
Long term debt | 473 | 550 |
Senior Notes | 2026 Euro Notes due April 2026 | ||
Debt Instrument [Line Items] | ||
Long term debt | 196 | 261.4 |
Line of Credit | Revolving credit facility | 2021 Coty Revolving Credit Facility due April 2025 | ||
Debt Instrument [Line Items] | ||
Long term debt | 228.9 | 273.6 |
Line of Credit | Term Loan | 2018 Coty Term B Facility due April 2025 | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 1,183.7 | $ 1,239.2 |
DEBT - Short-Term Debt (Details
DEBT - Short-Term Debt (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
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 | $ 49,200,000 | $ 43,100,000 |
Short-term debt | 0 | 0 |
Letter of credit | ||
Short-term Debt [Line Items] | ||
Undrawn letters of credit | 7,200,000 | 14,300,000 |
Bank Guarantee | ||
Short-term Debt [Line Items] | ||
Undrawn letters of credit | $ 16,300,000 | $ 17,200,000 |
Minimum | Short-term Lines of Credit | ||
Short-term Debt [Line Items] | ||
Interest rate spread | 4.80% | 1.20% |
Maximum | Short-term Lines of Credit | ||
Short-term Debt [Line Items] | ||
Interest rate spread | 16.40% | 15.90% |
DEBT - Schedule of Long Term De
DEBT - Schedule of Long Term Debt Facilities (Details) | 12 Months Ended | ||||||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 EUR (€) | Jun. 30, 2022 EUR (€) | Nov. 30, 2021 USD ($) | Jun. 16, 2021 EUR (€) | Apr. 21, 2021 USD ($) | Apr. 05, 2018 USD ($) | Apr. 05, 2018 EUR (€) | |
2029 Dollar Senior Secured Notes due January 2029 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Borrowing capacity | $ 500,000,000 | ||||||||
Senior Notes | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Stated interest rate | 4.75% | ||||||||
Senior Notes | 2029 Dollar Senior Secured Notes due January 2029 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Borrowing capacity | $ 500,000,000 | ||||||||
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 | 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 | 2021 Coty Revolving Credit Facility due April 2025 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Borrowing capacity | $ 2,000,000,000 | $ 2,000,000,000 | |||||||
Applicable interest rate spread | 1.75% | 1.75% | 1.75% | 1.75% | |||||
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 | Brazilian Credit Facilities - September 2023 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Stated interest rate | 3.74% | 3.74% | 3.74% | 3.74% | |||||
Senior Notes | Term Loan | 2026 Dollar Senior Secured Notes due April 2026 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Borrowing capacity | $ 900,000,000 | $ 900,000,000 | |||||||
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 | 2026 Dollar Notes | U.S. Dollar | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Borrowing capacity | $ 473,000,000 | $ 473,000,000 | |||||||
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 | $ 31,900,000 | $ 31,900,000 | |||||||
Applicable interest rate spread | 3.48% | 3.48% | 3.48% | 3.48% | |||||
Line of Credit | Brazilian Credit Facilities - September 2023 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Borrowing capacity | $ 0 | $ 0 | |||||||
Applicable interest rate spread | 3.74% | 3.74% | 3.74% | 3.74% | |||||
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 | Euro | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Borrowing capacity | € | € 430,600,000 | ||||||||
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 | U.S. Dollar | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Borrowing capacity | $ 715,500,000 | ||||||||
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 | 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 | 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 | Base Rate | U.S. Dollar | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Margin percentage | 1.25% | 1.25% |
Debt - Recent Developments (Det
Debt - Recent Developments (Details) $ in Millions | Jun. 23, 2023 USD ($) |
Brazilian Credit Facilities - September 2023 | |
Debt Instrument, Redemption [Line Items] | |
Repayments of long-term debt | $ 10.5 |
DEBT - Senior Secured Notes (De
DEBT - Senior Secured Notes (Details) € in Millions | Nov. 30, 2021 USD ($) | Nov. 30, 2021 EUR (€) | Jun. 16, 2021 EUR (€) | Apr. 21, 2021 USD ($) |
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.75% | |||
2029 Dollar Senior Secured Notes due January 2029 | ||||
Debt Instrument [Line Items] | ||||
Amount of debt | $ 500,000,000 | |||
2029 Dollar Senior Secured Notes due January 2029 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Amount of debt | $ 500,000,000 | |||
Early redemption premium, percent of outstanding principal amount | 1% | 1% | ||
Base redemption price, percentage | 100% | 100% | ||
2029 Dollar Senior Secured Notes due January 2029 | Senior Notes | Treasury Rate | ||||
Debt Instrument [Line Items] | ||||
Margin percentage | 0.50% | 0.50% | ||
2018 Coty Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 394,000,000 | |||
2018 Coty Term A Facility | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 100,400,000 | € 89.5 | ||
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 | |||
Early redemption premium, percent of outstanding principal amount | 1% | |||
Base redemption price, percentage | 100% | |||
2026 Euro Senior Secured Notes due April 2026 | Senior Notes | Treasury Rate | ||||
Debt Instrument [Line Items] | ||||
Margin percentage | 0.50% | |||
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 | |||
Early redemption premium, percent of outstanding principal amount | 1% | |||
Base redemption price, percentage | 100% | |||
2026 Dollar Senior Secured Notes due April 2026 | Senior Notes | Bund 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, 2023 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 101% |
2026 Dollar Senior Secured Notes | 2024 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 101.25% |
2026 Dollar Senior Secured Notes | 2025 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
2026 Euro Senior Secured Notes | 2024 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100.969% |
2026 Euro Senior Secured Notes | 2025 | |
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 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
2026 Dollar Notes | 2023 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 101.625% |
2026 Dollar Notes | 2024 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
2026 Euro Notes | 2023 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 101.1875% |
2026 Euro Notes | 2024 | |
Debt Instrument, Redemption [Line Items] | |
Redemption price, percentage | 100% |
DEBT - 2018 Coty Credit Agreeme
DEBT - 2018 Coty Credit Agreement (Details) | 1 Months Ended | 12 Months Ended | |||||||
Apr. 05, 2018 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Apr. 05, 2018 EUR (€) | |
Line of Credit Facility [Line Items] | |||||||||
Termination payments | $ 38,300,000 | € 35,300,000 | $ 55,600,000 | € 52,500,000 | |||||
Repayments of long-term lines of credit | $ 1,600,100,000 | $ 1,338,800,000 | $ 3,593,300,000 | ||||||
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 | Revolving credit facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Borrowing capacity | 2,000,000,000 | ||||||||
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 | ||||||||
2018 Coty Term B Facility, Euro Portion | Debt Paydowns | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Repayments of long-term lines of credit | 7,200,000 | € 6,600,000 | 14,300,000 | € 13,500,000 | |||||
2018 Coty Term B Facility, Dollar Portion | Debt Paydowns | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Repayments of long-term lines of credit | $ 8,000,000 | $ 21,500,000 |
DEBT - Senior Unsecured Notes (
DEBT - Senior Unsecured Notes (Details) | 12 Months Ended | ||||||||
Jun. 30, 2023 USD ($) | Dec. 07, 2022 USD ($) | Dec. 07, 2022 EUR (€) | Jun. 30, 2022 USD ($) | Apr. 15, 2022 USD ($) | Apr. 15, 2022 EUR (€) | Nov. 30, 2021 | Apr. 05, 2018 USD ($) | Apr. 05, 2018 EUR (€) | |
Debt Instrument [Line Items] | |||||||||
Long term debt | $ 4,274,500,000 | ||||||||
Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 4.75% | ||||||||
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 | $ 473,000,000 | $ 550,000,000 | |||||||
Senior Notes | 2023 Euro Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of debt | $ 606,400,000 | € 550,000,000 | € 550,000,000 | ||||||
Stated interest rate | 4% | 4% | |||||||
Debt redemption, amount to be funded with cash on hand | 480,700,000 | ||||||||
Debt redemption, amount to be funded with additional debt | $ 125,700,000 | ||||||||
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 | $ 196,000,000 | $ 261,400,000 | |||||||
Cash Tender Offers | 2026 Dollar Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long term debt | $ 77,000,000 | ||||||||
Cash Tender Offers | 2026 Euro Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long term debt | $ 72,200,000 | € 69,700,000 |
DEBT - Deferred Issuance Costs
DEBT - Deferred Issuance Costs and Write-offs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||
Payments of debt issuance costs | $ 0 | $ 39.6 | $ 21.9 |
Writeoff of deferred financing fees | 0.7 | 4.7 | 21.1 |
Writeoff of original debt discount | 0.1 | 0.4 | 3.1 |
Line of Credit | |||
Debt Instrument [Line Items] | |||
Recognized deferred financing fees | 0 | 9.2 | 25.4 |
Payments of debt issuance costs | $ 0 | $ 27 | $ 0 |
DEBT - Schedule of Debt Pricing
DEBT - Schedule of Debt Pricing Tier (Details) | 12 Months Ended |
Jun. 30, 2023 | |
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 - Interest (Details)
DEBT - Interest (Details) - Coty Term Loan B Facility due October 2022 | 12 Months Ended |
Jun. 30, 2023 | |
Debt Instrument [Line Items] | |
LIBOR floor | 0% |
SOFR | |
Debt Instrument [Line Items] | |
Margin percentage | 2.25% |
Base Rate | |
Debt Instrument [Line Items] | |
Margin percentage | 1.25% |
EURIBOR | |
Debt Instrument [Line Items] | |
Margin percentage | 2.50% |
DEBT - Schedule of Fair Value o
DEBT - Schedule of Fair Value of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Carrying Amount | 2018 Coty Credit Agreement | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 1,412.6 | $ 1,512.8 |
Fair Value | 2018 Coty Credit Agreement | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 1,393.5 | 1,451.5 |
Senior Secured Notes | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 2,161 | 2,131.8 |
Senior Secured Notes | Fair Value | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 2,066.9 | 1,914.1 |
Senior Unsecured Notes | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 669 | 811.4 |
Senior Unsecured Notes | Fair Value | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 661.5 | 733.5 |
Brazilian Credit Facility | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Fair value of debt | 31.9 | 42.4 |
Brazilian Credit Facility | Fair Value | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 32.2 | $ 48.2 |
DEBT - Long-term Debt Repayment
DEBT - Long-term Debt Repayment Schedule (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2024 | $ 55.1 |
2025 | 1,389.3 |
2026 | 2,330.1 |
2027 | 0 |
2028 | 0 |
Thereafter | 500 |
Total | $ 4,274.5 |
DEBT - Covenants (Details)
DEBT - Covenants (Details) | 12 Months Ended |
Jun. 30, 2023 | |
June 30, 2023 through April 5, 2025 | |
Debt Instrument [Line Items] | |
Total net leverage ratio | 4 |
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 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Jun. 30, 2023 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, lease term | 5 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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lease Cost: | |||
Operating lease cost | $ 76.2 | $ 90.4 | $ 87.1 |
Short-term lease cost | 0.9 | 1.2 | 0.8 |
Variable lease cost | 40.3 | 39.3 | 49.5 |
Sublease income | (15.8) | (20) | (14.9) |
Net lease cost | 101.6 | 110.9 | 122.5 |
Other information: | |||
Operating cash outflows from operating leases | (73.8) | (83.8) | (132.4) |
Right-of-use assets obtained in exchange for lease obligations | $ 25.7 | $ 104.9 | $ 27.8 |
Weighted-average remaining lease term - real estate | 7 years 2 months 12 days | 7 years 7 months 6 days | 6 years 4 months 24 days |
Weighted-average discount rate - real estate leases | 4.13% | 3.85% | 3.57% |
LEASES - Minimum Lease Payments
LEASES - Minimum Lease Payments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Minimum lease payments | ||
2024 | $ 78.6 | |
2025 | 60 | |
2026 | 48.8 | |
2027 | 41 | |
2028 | 32.7 | |
Thereafter | 107.1 | |
Total future lease payments | 368.2 | |
Less: imputed interest | (55.1) | |
Total present value of lease liabilities | 313.1 | |
Current operating lease liabilities | 65.6 | $ 67.8 |
Long-term operating lease liabilities | 247.5 | $ 282.2 |
Total operating lease liabilities | $ 313.1 |
INCOME TAXES - Income (Loss) fr
INCOME TAXES - Income (Loss) from Operations before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (253.6) | $ (277.5) | $ (434.4) |
Foreign | 958.4 | 704.3 | 194.6 |
Income (loss) from continuing operations before income taxes | $ 704.8 | $ 426.8 | $ (239.8) |
INCOME TAXES - Components of Pr
INCOME TAXES - Components of Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current: | |||
Federal | $ 2.6 | $ 6.6 | $ 3.8 |
State and local | 2.6 | (6) | 14.9 |
Foreign | 120.1 | 152.1 | 55.2 |
Total | 125.3 | 152.7 | 73.9 |
Deferred: | |||
Federal | (61.1) | (2.7) | 41.1 |
State and local | 1 | (12.8) | 5.4 |
Foreign | 116.4 | 27.6 | (292.4) |
Total | 56.3 | 12.1 | (245.9) |
Provision (benefit) for income taxes on continuing operations | $ 181.6 | $ 164.8 | $ (172) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | 12 Months Ended | |||
Jun. 30, 2023 USD ($) jurisdiction | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Income Tax Contingency [Line Items] | ||||
Provision (benefit) for income taxes on continuing operations | $ 181.6 | $ 164.8 | $ (172) | |
Foreign tax rate principal relocation | 0 | 0 | 234.4 | |
Tax expense, internal restructuring | 0 | 0 | 130 | |
Tax loss carry forwards subject to expiration | 686.9 | |||
Valuation allowance | 60.7 | 41.7 | ||
Unrecognized tax benefits | 235.5 | 251.6 | 279.9 | $ 277.9 |
Unrecognized tax benefits that would impact effective tax rate | 184.9 | |||
Unrecognized tax benefits, including accrued interest and penalties | 218.6 | 191.8 | ||
Unrecognized tax benefits, interest | 7.8 | 4.2 | 0.8 | |
Unrecognized tax benefits, penalties | 0 | 0 | $ 0.5 | |
Accrued interest and penalties | $ 33.1 | 26.4 | ||
Number of tax jurisdictions | jurisdiction | 40 | |||
Income tax benefit | $ 18.4 | 14.3 | ||
Amount of decrease in UTBs | 21.5 | |||
Wella Business | ||||
Income Tax Contingency [Line Items] | ||||
Large fair value gains on investment, tax costs | $ 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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) from continuing operations before income taxes | $ 704.8 | $ 426.8 | $ (239.8) |
Provision (benefit) for income taxes at statutory rate | 148 | 89.6 | (50.4) |
State and local taxes—net of federal benefit | 2.8 | (14.9) | 26.3 |
Foreign tax differentials | (10.1) | (16.4) | (23.3) |
Change in valuation allowances | 10.2 | (2.3) | (3.8) |
Change in unrecognized tax benefit | 32.5 | (10.6) | (18) |
Permanent differences—net | (4.9) | 25.4 | (13.1) |
Non-deductible executive stock compensation | 27.7 | 37.1 | 0 |
Currency Loss | (13.6) | (0.2) | 0 |
Dispositions of business assets | 0 | 12.7 | 0 |
Russia exit | (7) | 24.1 | 0 |
Principal relocation | 0 | 0 | (234.4) |
Post-divestiture restructuring | 0 | 0 | 130 |
Other | (4) | 20.3 | 14.7 |
Provision (benefit) for income taxes on continuing operations | $ 181.6 | $ 164.8 | $ (172) |
Effective income tax rate | 25.80% | 38.60% | 71.70% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred income tax assets: | ||
Inventories | $ 7.5 | $ 8.3 |
Accruals and allowances | 54.9 | 58.6 |
Sales returns | 19.1 | 17.3 |
Share-based compensation | 4.8 | 5.1 |
Employee benefits | 55.6 | 60.3 |
Net operating loss carry forwards and tax credits | 241.4 | 296.4 |
Capital loss carry forwards | 0.3 | 1.1 |
Interest expense limitation carry forward | 47.5 | 28.5 |
Lease liability | 28.6 | 30.6 |
Principal relocation lease liability | 424 | 434 |
Property, plant and equipment | 13 | 0 |
Other | 48.4 | 31.7 |
Less: valuation allowances | (60.7) | (41.7) |
Net deferred income tax assets | 884.4 | 930.2 |
Deferred income tax liabilities: | ||
Intangible assets | 817.4 | 811.9 |
Property, plant and equipment | 0 | 9.2 |
Licensing rights | 27.8 | 25.7 |
Right of use asset | 28.6 | 31.2 |
Other | 80.5 | 69.4 |
Deferred income tax liabilities | 954.3 | 947.4 |
Net deferred income tax (liability) asset | $ (69.9) | $ (17.2) |
INCOME TAXES - Expirations of T
INCOME TAXES - Expirations of Tax Loss Carry Forwards (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 686.9 |
2024 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 8.5 |
2025 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 7 |
2026 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 9.5 |
2027 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 273.7 |
2028 and thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 388.2 |
United States | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
United States | 2024 | |
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 and thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
Western Europe | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 372.4 |
Western Europe | 2024 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 7.9 |
Western Europe | 2025 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 3.1 |
Western Europe | 2026 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0 |
Western Europe | 2027 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 245.9 |
Western Europe | 2028 and thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 115.5 |
Rest of World | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 314.5 |
Rest of World | 2024 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 0.6 |
Rest of World | 2025 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 3.9 |
Rest of World | 2026 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 9.5 |
Rest of World | 2027 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 27.8 |
Rest of World | 2028 and thereafter | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 272.7 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefit Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 251.6 | $ 279.9 | $ 277.9 |
Additions based on tax positions related to the current year | 6.7 | 1.7 | 32.1 |
Additions for tax positions of prior years | 0.7 | 20.8 | 0 |
Reductions for tax positions of prior years | (1.4) | (29.4) | (4.5) |
Settlements | (4.6) | (0.2) | (0.4) |
Lapses in statutes of limitations | (13.8) | (14.1) | (33.3) |
Foreign currency translation | (3.7) | (7.1) | 8.1 |
Ending balance | $ 235.5 | $ 251.6 | $ 279.9 |
INTEREST EXPENSE, NET (Details)
INTEREST EXPENSE, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest Income (Expense), Net [Abstract] | |||
Interest expense | $ 261.1 | $ 241.2 | $ 231.8 |
Foreign exchange losses (gains), net of derivative contracts | 12.2 | (10) | 6.8 |
Interest income | (15.4) | (7.2) | (3.5) |
Total interest expense, net | $ 257.9 | $ 224 | $ 235.1 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
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 | $ 0.7 | $ 1.3 | $ 6.9 |
Actuarial loss (gain) | 20.7 | 100.5 | |
Net periodic benefit cost | 8.5 | 12.7 | 17.8 |
Discontinued Operations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost | 0 | 0 | 6.2 |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial loss (gain) | 17.4 | 89.6 | |
Gain (loss) on plan assets | (1.9) | (16) | |
Other Post-Employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | 0 | 0 | 0 |
Actuarial loss (gain) | 3.3 | 10.9 | |
Net periodic benefit cost | (0.3) | 1.1 | (1.1) |
Expected contributions | 2.4 | ||
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | 13.7 | 13.6 | 15.8 |
U.S. | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | 0 | 0 | 0 |
Actuarial loss (gain) | 0.8 | 2.8 | |
Accumulated benefit obligation | 13 | 14.5 | |
Net periodic benefit cost | (2.2) | 0.9 | 2 |
Expected contributions | 1.3 | ||
International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | 9.6 | 9.7 | 12 |
International | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | 0.7 | 1.3 | 6.9 |
Actuarial loss (gain) | 16.6 | 86.8 | |
Accumulated benefit obligation | 346.3 | 333 | |
Net periodic benefit cost | 11 | 10.7 | 16.9 |
Expected contributions | 16.2 | ||
Transformation Plan | International | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | 0.7 | 1.3 | 6.9 |
Settlement loss related to restructuring activities | 0.2 | 1.8 | 3.8 |
Turnaround Plan, Current Year Restructuring Actions | International | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement loss related to restructuring activities | $ 0 | $ 1.4 | $ 2.3 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
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 | $ 397 | $ 585 | |
Service cost | 5.4 | 9.9 | $ 19.4 |
Interest cost | 13.3 | 7.2 | 10.2 |
Plan participants’ contributions | 1.3 | 1.7 | |
Benefits paid | (17.8) | (19.4) | |
New employees transfers in | 1 | 4.2 | |
Premiums paid | (0.5) | (0.5) | |
Pension curtailment | (0.7) | (1.6) | |
Other | 16.2 | 0 | |
Pension settlement | (4.2) | (39.3) | |
Actuarial loss (gain) | (20.7) | (100.5) | |
Effect of exchange rates | 14.3 | (49.7) | |
Benefit obligation—June 30 | 404.6 | 397 | 585 |
Change in plan assets | |||
Fair value of plan assets—July 1 | 101.5 | 159.1 | |
Actual return on plan assets | 1.5 | (11.6) | |
Employer contributions | 16.9 | 19.8 | |
Plan participants’ contributions | 1.3 | 1.7 | |
Benefits paid | (17.8) | (19.4) | |
New employees transfers in | 1 | 4.2 | |
Premiums paid | (0.5) | (0.5) | |
Plan settlements | (4.2) | (39.1) | |
Other | 16.2 | 0 | |
Effect of exchange rates | 5.1 | (12.7) | |
Fair value of plan assets—June 30 | 121 | 101.5 | 159.1 |
Funded status | (283.6) | (295.5) | |
Pension Plans | |||
Change in benefit obligation | |||
Actuarial loss (gain) | (17.4) | (89.6) | |
Other Post-Employment Benefits | |||
Change in benefit obligation | |||
Benefit obligation—July 1 | 38.8 | 50.2 | |
Service cost | 0.6 | 0.8 | 1 |
Interest cost | 1.7 | 0.8 | 1.3 |
Plan participants’ contributions | 0.2 | 0.2 | |
Benefits paid | (1.9) | (2.2) | |
New employees transfers in | 0 | 0 | |
Premiums paid | 0 | 0 | |
Pension curtailment | 0 | 0 | |
Other | 0 | 0 | |
Pension settlement | 0 | 0 | |
Actuarial loss (gain) | (3.3) | (10.9) | |
Effect of exchange rates | (0.1) | (0.1) | |
Benefit obligation—June 30 | 36 | 38.8 | 50.2 |
Change in plan assets | |||
Fair value of plan assets—July 1 | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 1.8 | 2 | |
Plan participants’ contributions | 0.2 | 0.2 | |
Benefits paid | (1.9) | (2.2) | |
New employees transfers 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 | 0.1 | 0 | 0 |
Funded status | (35.9) | (38.8) | |
United States | Pension Plans | |||
Change in benefit obligation | |||
Benefit obligation—July 1 | 14.5 | 18.9 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0.7 | 0.5 | 0.5 |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (1.4) | (2.1) | |
New employees transfers in | 0 | 0 | |
Premiums paid | 0 | 0 | |
Pension curtailment | 0 | 0 | |
Other | 0 | 0 | |
Pension settlement | 0 | 0 | |
Actuarial loss (gain) | (0.8) | (2.8) | |
Effect of exchange rates | 0 | 0 | |
Benefit obligation—June 30 | 13 | 14.5 | 18.9 |
Change in plan assets | |||
Fair value of plan assets—July 1 | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 1.4 | 2.1 | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (1.4) | (2.1) | |
New employees transfers 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 | (13) | (14.5) | |
Fair value of plan assets | 0 | 0 | |
International | Pension Plans | |||
Change in benefit obligation | |||
Benefit obligation—July 1 | 343.7 | 515.9 | |
Service cost | 4.8 | 9.1 | 18.4 |
Interest cost | 10.9 | 5.9 | 8.4 |
Plan participants’ contributions | 1.1 | 1.5 | |
Benefits paid | (14.5) | (15.1) | |
New employees transfers in | 1 | 4.2 | |
Premiums paid | (0.5) | (0.5) | |
Pension curtailment | (0.7) | (1.6) | |
Other | 16.2 | 0 | |
Pension settlement | (4.2) | (39.3) | |
Actuarial loss (gain) | (16.6) | (86.8) | |
Effect of exchange rates | 14.4 | (49.6) | |
Benefit obligation—June 30 | 355.6 | 343.7 | 515.9 |
Change in plan assets | |||
Fair value of plan assets—July 1 | 101.5 | 159.1 | |
Actual return on plan assets | 1.5 | (11.6) | |
Employer contributions | 13.7 | 15.7 | |
Plan participants’ contributions | 1.1 | 1.5 | |
Benefits paid | (14.5) | (15.1) | |
New employees transfers in | 1 | 4.2 | |
Premiums paid | (0.5) | (0.5) | |
Plan settlements | (4.2) | (39.1) | |
Other | 16.2 | 0 | |
Effect of exchange rates | 5.1 | (12.7) | |
Fair value of plan assets—June 30 | 120.9 | 101.5 | $ 159.1 |
Funded status | (234.7) | (242.2) | |
Fair value of plan assets | 106.2 | $ 85.3 | |
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, 2023 | Jun. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | $ 1.4 | $ 1.4 |
Current liabilities | (4.3) | (4.7) |
Noncurrent liabilities | (280.7) | (292.2) |
Funded status | (283.6) | (295.5) |
AOC(L)/I | 76 | 60.9 |
Net amount recognized | (207.6) | (234.6) |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (2.5) | (2.6) |
Noncurrent liabilities | (33.4) | (36.2) |
Funded status | (35.9) | (38.8) |
AOC(L)/I | 18.5 | 17.6 |
Net amount recognized | (17.4) | (21.2) |
United States | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (1.3) | (1.3) |
Noncurrent liabilities | (11.7) | (13.2) |
Funded status | (13) | (14.5) |
AOC(L)/I | 1.4 | 3.5 |
Net amount recognized | (11.6) | (11) |
International | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 1.4 | 1.4 |
Current liabilities | (0.5) | (0.8) |
Noncurrent liabilities | (235.6) | (242.8) |
Funded status | (234.7) | (242.2) |
AOC(L)/I | 56.1 | 39.8 |
Net amount recognized | $ (178.6) | $ (202.4) |
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, 2023 | Jun. 30, 2022 |
United States | ||
Pension plans with accumulated benefit obligations in excess of plan assets | ||
Projected benefit obligation | $ 13 | $ 14.5 |
Accumulated benefit obligation | 13 | 14.5 |
Fair value of plan assets | 0 | 0 |
Pension plans with projected benefit obligations in excess of plan assets | ||
Projected benefit obligation | 13 | 14.5 |
Accumulated benefit obligation | 13 | 14.5 |
Fair value of plan assets | 0 | 0 |
International | ||
Pension plans with accumulated benefit obligations in excess of plan assets | ||
Projected benefit obligation | 342 | 328.8 |
Accumulated benefit obligation | 333.7 | 319 |
Fair value of plan assets | 106.2 | 85.3 |
Pension plans with projected benefit obligations in excess of plan assets | ||
Projected benefit obligation | 342 | 328.8 |
Accumulated benefit obligation | 333.7 | 319 |
Fair value of plan assets | $ 106.2 | $ 85.3 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
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 | $ 5.4 | $ 9.9 | $ 19.4 |
Interest cost | 13.3 | 7.2 | 10.2 |
Expected return on plan assets | (3.4) | (4.5) | (6.3) |
Amortization of prior service (credit) cost | (0.3) | (0.4) | (3.6) |
Amortization of net (gain) loss | (6) | 0 | 1.2 |
Settlements (gain) loss recognized | 0.2 | 1.8 | 3.8 |
Curtailment (gain) loss recognized | (0.7) | (1.3) | (6.9) |
Net periodic benefit cost | 8.5 | 12.7 | 17.8 |
Other Post-Employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.6 | 0.8 | 1 |
Interest cost | 1.7 | 0.8 | 1.3 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (0.2) | (0.3) | (3.3) |
Amortization of net (gain) loss | (2.4) | (0.2) | (0.1) |
Settlements (gain) loss recognized | 0 | 0 | 0 |
Curtailment (gain) loss recognized | 0 | 0 | 0 |
Net periodic benefit cost | (0.3) | 1.1 | (1.1) |
United States | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0.7 | 0.5 | 0.5 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | 0 | 0 | 0 |
Amortization of net (gain) loss | (2.9) | 0.4 | 1.5 |
Settlements (gain) loss recognized | 0 | 0 | 0 |
Curtailment (gain) loss recognized | 0 | 0 | 0 |
Net periodic benefit cost | (2.2) | 0.9 | 2 |
International | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4.8 | 9.1 | 18.4 |
Interest cost | 10.9 | 5.9 | 8.4 |
Expected return on plan assets | (3.4) | (4.5) | (6.3) |
Amortization of prior service (credit) cost | (0.1) | (0.1) | (0.3) |
Amortization of net (gain) loss | (0.7) | (0.2) | (0.2) |
Settlements (gain) loss recognized | 0.2 | 1.8 | 3.8 |
Curtailment (gain) loss recognized | (0.7) | (1.3) | (6.9) |
Net periodic benefit cost | $ 11 | $ 10.7 | $ 16.9 |
EMPLOYEE BENEFIT PLANS - Pre-ta
EMPLOYEE BENEFIT PLANS - Pre-tax Amounts Recognized in AOCI (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | $ 74.9 | $ 59.6 |
Prior service credit (cost) | 1.1 | 1.3 |
Total recognized in AOC(L)/I | 76 | 60.9 |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 18.2 | 17.1 |
Prior service credit (cost) | 0.3 | 0.5 |
Total recognized in AOC(L)/I | 18.5 | 17.6 |
United States | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 1.4 | 3.5 |
Prior service credit (cost) | 0 | 0 |
Total recognized in AOC(L)/I | 1.4 | 3.5 |
International | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 55.3 | 39 |
Prior service credit (cost) | 0.8 | 0.8 |
Total recognized in AOC(L)/I | $ 56.1 | $ 39.8 |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Changes in Plan Assets and Benefit Obligations Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | $ 18.8 | $ 84.8 |
Amortization or curtailment recognition of prior service (credit) cost | (0.3) | (0.4) |
Recognized net actuarial (gain) loss | (5.8) | 1.9 |
Prior service credit (cost) | 0 | 0 |
Effect of exchange rates | 2.3 | (2.2) |
Total recognized in OCI/(L) | 15 | 84.1 |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 3.3 | 10.9 |
Amortization or curtailment recognition of prior service (credit) cost | (0.2) | (0.3) |
Recognized net actuarial (gain) loss | (2.4) | (0.2) |
Prior service credit (cost) | 0 | 0 |
Effect of exchange rates | 0.2 | (0.5) |
Total recognized in OCI/(L) | 0.9 | 9.9 |
United States | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 0.8 | 2.8 |
Amortization or curtailment recognition of prior service (credit) cost | 0 | 0 |
Recognized net actuarial (gain) loss | (2.9) | 0.4 |
Prior service credit (cost) | 0 | 0 |
Effect of exchange rates | 0 | 0 |
Total recognized in OCI/(L) | (2.1) | 3.2 |
International | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (loss) gain | 14.7 | 71.1 |
Amortization or curtailment recognition of prior service (credit) cost | (0.1) | (0.1) |
Recognized net actuarial (gain) loss | (0.5) | 1.7 |
Prior service credit (cost) | 0 | 0 |
Effect of exchange rates | 2.1 | (1.7) |
Total recognized in OCI/(L) | $ 16.2 | $ 71 |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Assumptions (Details) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
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 | 7.10% | 6.70% | 7.50% |
Minimum | Other Post-Employment Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 4.10% | 2.90% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 2.90% | 1.50% | 1.70% |
Maximum | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rate assumed for next year | 7.60% | ||
Maximum | Other Post-Employment Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 5.10% | 4.70% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 4.70% | 2.80% | 2.80% |
U.S. | Minimum | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 4.90% | 4% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 4% | 2.40% | 2.50% |
U.S. | Maximum | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 5.30% | 4.70% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 4.70% | 2.60% | 2.80% |
International | Minimum | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 2% | 2.30% | |
Future compensation growth rates | 1.30% | 1.10% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 2.30% | 0.30% | 0.40% |
Future compensation growth rates | 1.10% | 1% | 1.50% |
Expected long-term rates of return on plan assets | 2.70% | 1.30% | 1% |
International | Maximum | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rates | 4.20% | 3.40% | |
Future compensation growth rates | 3.20% | 3.20% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rates | 3.40% | 1.60% | 6.70% |
Future compensation growth rates | 3.20% | 2.50% | 6.70% |
Expected long-term rates of return on plan assets | 3.80% | 3.80% | 5.80% |
EMPLOYEE BENEFIT PLANS - Target
EMPLOYEE BENEFIT PLANS - Target and Weighted-average Asset Allocations (Details) - Pension Plans - United States | Jun. 30, 2023 | Jun. 30, 2022 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target percentage of plan assets | 40% | |
Actual percentage of plan assets | 32% | 38% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target percentage of plan assets | 49% | |
Actual percentage of plan assets | 37% | 42% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target percentage of plan assets | 11% | |
Actual percentage of plan assets | 31% | 20% |
EMPLOYEE BENEFIT PLANS - Fair V
EMPLOYEE BENEFIT PLANS - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | $ 121 | $ 101.5 | $ 159.1 |
International | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 120.9 | 101.5 | 159.1 |
International | Pension Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 51.4 | 33.6 | $ 75.2 |
International | Pension Plans | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 121 | 101.5 | |
International | Pension Plans | Recurring | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 69.6 | 67.9 | |
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 | 51.4 | 33.6 | |
International | Pension Plans | Recurring | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 32.1 | 32.5 | |
International | Pension Plans | Recurring | Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 32.1 | 32.5 | |
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 | 37.3 | 33.8 | |
International | Pension Plans | Recurring | Corporate securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 37.3 | 33.8 | |
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 | 0.2 | 1.6 | |
International | Pension Plans | Recurring | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total pension plan assets | 0.2 | 1.6 | |
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 | 51.4 | 33.6 | |
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 | $ 51.4 | $ 33.6 |
EMPLOYEE BENEFIT PLANS - Reco_2
EMPLOYEE BENEFIT PLANS - Reconciliations of Level 3 Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Change in plan assets | ||
Fair value of plan assets—July 1 | $ 101.5 | $ 159.1 |
Return on plan assets | 1.5 | (11.6) |
Effect of exchange rates | 5.1 | (12.7) |
Fair value of plan assets—June 30 | 121 | 101.5 |
International | Pension Plans | ||
Change in plan assets | ||
Fair value of plan assets—July 1 | 101.5 | 159.1 |
Return on plan assets | 1.5 | (11.6) |
Effect of exchange rates | 5.1 | (12.7) |
Fair value of plan assets—June 30 | 120.9 | 101.5 |
International | Pension Plans | Level 3 | ||
Change in plan assets | ||
Fair value of plan assets—July 1 | 33.6 | 75.2 |
Return on plan assets | (0.3) | (7.5) |
Purchases, sales and settlements, net | 15.5 | (31.6) |
Effect of exchange rates | 2.6 | (2.5) |
Fair value of plan assets—June 30 | $ 51.4 | $ 33.6 |
EMPLOYEE BENEFIT PLANS - Expect
EMPLOYEE BENEFIT PLANS - Expected Benefit Payments (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 25.5 |
2025 | 22.3 |
2026 | 23 |
2027 | 23.7 |
2028 | 24 |
2029 - 2032 | 127.8 |
Other Post-Employment Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 2.5 |
2025 | 2.7 |
2026 | 2.8 |
2027 | 2.9 |
2028 | 3 |
2029 - 2032 | 15.6 |
United States | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 1.3 |
2025 | 1.3 |
2026 | 1.2 |
2027 | 1.2 |
2028 | 1.2 |
2029 - 2032 | 5.3 |
International | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 21.7 |
2025 | 18.3 |
2026 | 19 |
2027 | 19.6 |
2028 | 19.8 |
2029 - 2032 | $ 106.9 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) € in Millions | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2020 USD ($) | Sep. 30, 2019 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 EUR (€) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Payments for hedge termination | $ 0 | $ 0 | $ 37,600,000 | |||||
Stock repurchase program, authorized amount | 200,000,000 | $ 196,000,000 | ||||||
Accumulated other comprehensive loss | (662,400,000) | (717,900,000) | ||||||
Net investment hedge | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Foreign exchange risk exposure, amount | € | € 701.3 | € 289 | ||||||
Other Foreign Currency Translation Adjustments | Net investment hedge | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Accumulated other comprehensive loss | (12,200,000) | 41,700,000 | ||||||
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 | 1,653,500,000 | 2,403,800,000 | ||||||
Foreign exchange forward contracts | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Accumulated cash flow hedges in AOCI/(L), net of tax | 700,000 | 4,300,000 | ||||||
Cash flow hedge to be reclassified from AOCI/(L) during next 12 months | 200,000 | |||||||
Foreign exchange forward contracts | Net investment hedge | ||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||
Notional amount | 28,000,000 | 30,000,000 | ||||||
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 | 700,000,000 | ||||||
Payments for hedge termination | 1,900,000 | $ 4,900,000 | ||||||
Notional amount | $ 200,000,000 | $ 800,000,000 | ||||||
Incremental notional amount | $ 1,000,000,000 |
DERIVATIVE INSTRUMENTS - Gains
DERIVATIVE INSTRUMENTS - Gains and Losses Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative [Line Items] | |||
Net investment hedges | $ (53.9) | $ 36.3 | $ (256.5) |
Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | (3.7) | (1) | (0.3) |
Interest rate swap contracts | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | 5.4 | 13.9 | 1 |
Cross-currency swap contracts | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in OCI | $ 0 | $ 0 | $ (25.1) |
DERIVATIVE INSTRUMENTS - Amount
DERIVATIVE INSTRUMENTS - Amount of Gains and Losses Reclassified from AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Foreign exchange forward contracts | Net Revenues | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Amount of gain reclassified from AOCI into income | $ 0 | $ 0 | $ 1 |
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 | (1.6) | 1.7 | 0 |
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 | Net Revenues | |||
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 | $ 8.3 | $ (13) | $ (36.1) |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Selling, general and administrative expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in operations | $ (5.1) | $ (0.1) | $ 0.1 |
Interest income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in operations | (69.3) | 2.7 | 26.3 |
Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in operations | $ 168.7 | $ 18.4 | $ (0.6) |
MANDATORILY REDEEMABLE FINANC_2
MANDATORILY REDEEMABLE FINANCIAL INTEREST (Details) - USD ($) $ in Millions | 1 Months Ended | |
Jul. 31, 2021 | Jun. 30, 2023 | |
United Arab Emirates subsidiary | ||
Schedule of Equity Method Investments [Line Items] | ||
Purchase of additional noncontrolling interest | $ 7.1 | |
United Arab Emirates subsidiary | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of redeemable noncontrolling interest | 25% |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTERESTS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2029 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Redeemable Noncontrolling Interest [Line Items] | |||||
Redeemable noncontrolling interest balances | $ 93.5 | $ 69.8 | $ 84.1 | $ 79.1 | |
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, 2023 | |
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. 29, 2021 shares | Jun. 30, 2023 USD ($) vote $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) shares | Jun. 30, 2020 shares | |
Class of Stock [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Common stock, shares authorized (in shares) | 1,250,000,000 | 1,250,000,000 | |||
Common stock, shares outstanding (in shares) | 852,800,000 | 839,200,000 | |||
Exercise of employee stock options and restricted stock units | $ | $ 0.9 | ||||
Restricted stock awards reacquired (in shares) | 800,000 | ||||
Restricted stock awards granted (in shares) | 1,400,000 | ||||
Shares withheld for employee taxes (in shares) | 100,000 | ||||
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 | $ | $ 0.9 | $ 0 | $ 0 | ||
JAB Beauty B.V. | Restricted Stock Units | Chief Executive Officer | |||||
Class of Stock [Line Items] | |||||
Shares contributed by related party (in shares) | 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) | 852,800,000 | ||||
Shares issued (in shares) | 13,800,000 | 3,300,000 | 1,700,000 | ||
Awards forfeited (in shares) | 700,000 | ||||
Common Class A | JAB Beauty B.V. | |||||
Class of Stock [Line Items] | |||||
Parent ownership percentage | 53% | ||||
Common Class A | Majority Shareholders | JAB Cosmetics B.V. | |||||
Class of Stock [Line Items] | |||||
Open market shares acquired by related party (in shares) | 0 | 0 | 300,000 | ||
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 | |||||||
Oct. 14, 2021 | Oct. 14, 2020 | May 11, 2020 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) vote day class_of_stock $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) | Nov. 16, 2020 shares | Mar. 27, 2017 shares | |
Class of Stock [Line Items] | ||||||||
Preferred stock, shares authorized (in shares) | shares | 20,000,000 | 20,000,000 | ||||||
Number of classes of preferred stock | class_of_stock | 2 | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||
Preferred stock, shares outstanding (in shares) | shares | 1,000,000 | 1,500,000 | ||||||
Preferred stock, shares issued (in shares) | shares | 1,000,000 | 1,500,000 | ||||||
Preferred stock classified as a liability | $ 800,000 | |||||||
Dividends, preferred stock | 13,200,000 | |||||||
Dividends | 0 | |||||||
Employee taxes | 200,000 | $ 1,400,000 | ||||||
Additional Paid-in Capital | ||||||||
Class of Stock [Line Items] | ||||||||
Dividends, preferred stock | 13,200,000 | |||||||
Noncash dividend | 100,000 | 800,000 | ||||||
Restricted Stock Units | ||||||||
Class of Stock [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Payment of ordinary dividends, preferred stock and preference stock, declared during the period | 700,000 | |||||||
Restricted Stock Units | Tranche One | ||||||||
Class of Stock [Line Items] | ||||||||
Award vesting rights, percentage | 25% | 33.30% | ||||||
Restricted Stock Units | Tranche Two | ||||||||
Class of Stock [Line Items] | ||||||||
Award vesting rights, percentage | 25% | 33.30% | ||||||
Restricted Stock Units | Tranche Three | ||||||||
Class of Stock [Line Items] | ||||||||
Award vesting rights, percentage | 50% | 33.30% | ||||||
Restricted Stock Units And Phantom Units | Accrued Expenses And Other Current Liabilities | ||||||||
Class of Stock [Line Items] | ||||||||
Noncash dividend | 1,000,000 | 1,400,000 | ||||||
Restricted Stock Units And Phantom Units | Other noncurrent Liabilities | ||||||||
Class of Stock [Line Items] | ||||||||
Noncash dividend | $ 100,000 | 500,000 | ||||||
Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares authorized (in shares) | shares | 1,000,000 | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||
Preferred stock, shares outstanding (in shares) | shares | 1,000,000 | 1,000,000 | ||||||
Preferred stock, shares issued (in shares) | shares | 1,000,000 | 1,000,000 | ||||||
Number of votes entitled to holders | vote | 0 | |||||||
Series A-1 Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares authorized (in shares) | shares | 0 | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||
Preferred stock, shares outstanding (in shares) | shares | 0 | |||||||
Preferred stock, shares issued (in shares) | shares | 0 | |||||||
Number of votes entitled to holders | vote | 0 | |||||||
Exchange value pricing determination period | 10 days | |||||||
Series A-1 Preferred Stock | Stock Compensation Plan | Tranche One | ||||||||
Class of Stock [Line Items] | ||||||||
Award vesting rights, percentage | 60% | |||||||
Vesting period | 3 years | |||||||
Series A-1 Preferred Stock | Stock Compensation Plan | Tranche Two | ||||||||
Class of Stock [Line Items] | ||||||||
Award vesting rights, percentage | 20% | |||||||
Vesting period | 4 years | |||||||
Series A-1 Preferred Stock | Stock Compensation Plan | Tranche Three | ||||||||
Class of Stock [Line Items] | ||||||||
Award vesting rights, percentage | 20% | |||||||
Vesting period | 5 years | |||||||
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, maximum aggregate purchase price | $ 1,000 | |||||||
Investment agreement, sale of stock (in dollars per share) | $ / shares | $ 1,000 | |||||||
Preferred stock dividend rate | 9% | |||||||
Dividends, preferred stock | $ 13,200,000 | 35,200,000 | ||||||
Payment of ordinary dividends, preferred stock and preference stock, declared during the period | 13,200,000 | 55,800,000 | ||||||
Converted dividends | 0 | 50,100,000 | ||||||
Noncash dividend | $ 3,300,000 | $ 3,300,000 | $ 74,100,000 | |||||
Liquidation preference (in dollars per share) | $ / shares | $ 1,000 | |||||||
Liquidation preference | $ 1,000,000,000 | |||||||
Preferred stock dividend rate, increase on seven-year anniversary of issuance | 1% | |||||||
Preferred stock, period after which dividend rate will increase | 7 years | |||||||
Preferred stock dividend rate, annual increase on each subsequent anniversary | 1% | |||||||
Preferred stock dividend rate, maximum after increases | 12% | |||||||
Preferred stock dividend rate, additional increase if dividends are not paid | 1% | |||||||
Conversion price (in dollars per share) | $ / shares | $ 6.24 | |||||||
Conversion ratio | 160.2564 | |||||||
Volume weighted average price for 20 trading days exceeds, Company may convert shares (in dollars per share) | $ / shares | $ 12.48 | |||||||
Preferred stock, convertible, threshold trading days | day | 20 | |||||||
Preferred stock, convertible, threshold consecutive trading days | day | 30 | |||||||
Redemption features, percentage of liquidation preference | 100% | |||||||
Redemption features, multiplier of unpaid dividends after fifth anniversary and prior to sixth anniversary | 107% | |||||||
Redemption features, multiplier of unpaid dividends after sixth anniversary and prior to seventh anniversary | 105% | |||||||
Redemption features, multiplier of unpaid dividends after seventh anniversary | 100% | |||||||
Change of control put, percentage of liquidation preference, on or before fifth anniversary | 110% | |||||||
Change of control put, percentage of liquidation preference, on or after fifth anniversary | 100% | |||||||
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 |
EQUITY AND CONVERTIBLE PREFER_5
EQUITY AND CONVERTIBLE PREFERRED STOCK - Schedule of Key Terms of Series A Preferred Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 27, 2017 | |
Class of Stock [Line Items] | ||||
Number of Shares Awarded at Grant Date (millions of shares) | 1 | 1.5 | ||
Number of Shares Outstanding (millions of shares) | 1 | 1.5 | ||
Share-based compensation expense | $ 137.6 | $ 197.8 | $ 28.4 | |
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Number of Shares Awarded at Grant Date (millions of shares) | 1 | 1 | ||
Number of Shares Outstanding (millions of shares) | 1 | 1 | ||
Hurdle Price per Share (in dollars per share) | $ 22.39 | |||
Selling, general and administrative expenses | ||||
Class of Stock [Line Items] | ||||
Share-based compensation expense | $ 138.7 | 202 | 34.7 | |
Selling, general and administrative expenses | Former Board of Directors Chairman | ||||
Class of Stock [Line Items] | ||||
Share-based compensation expense | $ 0.2 | $ (0.2) | $ 0.8 |
EQUITY AND CONVERTIBLE PREFER_6
EQUITY AND CONVERTIBLE PREFERRED STOCK - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 3,345.8 | $ 3,062.2 | $ 3,228.8 |
Total other comprehensive income (loss), net of tax | 55.9 | (396.9) | 134.2 |
Ending balance | 3,997.4 | 3,345.8 | 3,062.2 |
Total | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (717.9) | (321.9) | (456.2) |
Other comprehensive income (loss) before reclassifications | 65.4 | (406.2) | |
Net amounts reclassified from AOCI/(L) | (9.9) | 10.2 | |
Total other comprehensive income (loss), net of tax | 55.5 | (396) | 134.3 |
Ending balance | (662.4) | (717.9) | (321.9) |
(Losses) Gains on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 4.3 | (15.5) | |
Other comprehensive income (loss) before reclassifications | 1.7 | 11 | |
Net amounts reclassified from AOCI/(L) | (5.3) | 8.8 | |
Total other comprehensive income (loss), net of tax | (3.6) | 19.8 | |
Ending balance | 0.7 | 4.3 | (15.5) |
(Losses) Gains on Net Investment Hedge | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 4.1 | (32.2) | |
Other comprehensive income (loss) before reclassifications | (53.9) | 36.3 | |
Net amounts reclassified from AOCI/(L) | 0 | 0 | |
Total other comprehensive income (loss), net of tax | (53.9) | 36.3 | |
Ending balance | (49.8) | 4.1 | (32.2) |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (770.8) | (259.3) | |
Other comprehensive income (loss) before reclassifications | 102.9 | (511.5) | |
Net amounts reclassified from AOCI/(L) | 0 | 0 | |
Total other comprehensive income (loss), net of tax | 102.9 | (511.5) | |
Ending balance | (667.9) | (770.8) | (259.3) |
Pension and Other Post-Employment Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 44.5 | (14.9) | |
Other comprehensive income (loss) before reclassifications | 14.7 | 58 | |
Net amounts reclassified from AOCI/(L) | (4.6) | 1.4 | |
Total other comprehensive income (loss), net of tax | 10.1 | 59.4 | |
Ending balance | 54.6 | 44.5 | $ (14.9) |
Amortization of actuarial losses | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Net amounts reclassified from AOCI/(L) | 6.1 | 1.6 | |
Amortization of actuarial gains (losses), tax | $ 1.5 | $ 0.2 |
EQUITY AND CONVERTIBLE PREFER_7
EQUITY AND CONVERTIBLE PREFERRED STOCK - Treasury Stock - Share Repurchase Program (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Nov. 10, 2021 | Dec. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Feb. 03, 2016 | |
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 196,000,000 | $ 200,000,000 | ||||
Level 2 | ||||||
Class of Stock [Line Items] | ||||||
Fair value forward contract | $ 219,800,000 | $ 24,500,000 | ||||
SOFR | ||||||
Class of Stock [Line Items] | ||||||
Interest rate basic spread on variable rate | 8.20% | 9.20% | ||||
June 2022 Forward Contracts | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 200,000,000 | |||||
Execution fees | $ 2,000,000 | |||||
December 2022 Forward Contracts | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 196,000,000 | |||||
Execution fees | 2,000,000 | |||||
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 | Counterparty One | ||||||
Class of Stock [Line Items] | ||||||
Issuance and sale of stock (in shares) | 27,000,000 | |||||
Common Class A | June 2022 Forward Contracts | Counterparty Two | ||||||
Class of Stock [Line Items] | ||||||
Issuance and sale of stock (in shares) | 27,000,000 | |||||
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 | ||||||
Class of Stock [Line Items] | ||||||
Treasury stock acquired during the period | $ 0 | $ 0 | $ 0 | |||
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 | $ 396,800,000 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
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) | 46.3 | ||
Share-based compensation expense | $ 137.6 | $ 197.8 | $ 28.4 |
Allocated share-based compensation income | (1.1) | (4.2) | (6.3) |
Series A and Series A-1 Preferred Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized share-based compensation expense | 0 | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized share-based compensation expense | $ 0.8 | ||
Weighted-average period for unrecognized share-based compensation | 10 months 9 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 2.7 | 1.8 | 1 |
Total unrecognized share-based compensation expense | $ 3.2 | ||
Weighted-average period for unrecognized share-based compensation | 1 year 11 months 12 days | ||
Performance Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1.5 | ||
Total unrecognized share-based compensation expense | $ 5 | ||
Weighted-average period for unrecognized share-based compensation | 2 years 3 months 21 days | ||
RSUs and Other Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized share-based compensation expense | $ 172.9 | ||
Weighted-average period for unrecognized share-based compensation | 3 years 8 months 26 days | ||
Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 138.7 | $ 202 | $ 34.7 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS - Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 137.6 | $ 197.8 | $ 28.4 |
Share based compensation expense | 134.7 | 195.4 | 27.4 |
Additional Paid-in Capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation expense | 134.7 | 195.4 | 27.4 |
Additional Paid-in Capital | Discontinued Operations | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation expense | 0 | 0 | 2 |
Equity plan expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 134.7 | 195.4 | 25.4 |
Equity plan modified and cash settled | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 0 | 0 | 0.9 |
Liability plan expense (income) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 1.2 | 0.1 | 1.6 |
Fringe expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 1.7 | $ 2.3 | $ 0.5 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning balance (in shares) | 5.1 | 5.8 | |
Share-based compensation expense | $ 137.6 | $ 197.8 | $ 28.4 |
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) | 18.55 | ||
Exercisable options grant price (in dollars per share) | $ 18.55 | ||
Nonqualified Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 0 | 0 | 0 |
Vesting period | 5 years | ||
Nonqualified stock options contractual life | 10 years | ||
Share-based compensation expense | $ 1.3 | $ (0.9) | $ 0.5 |
Nonqualified Options | Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 2 | ||
Nonqualified Options | Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 3.1 | ||
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, 2023 USD ($) $ / shares shares | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 5.8 |
Exercised (in shares) | shares | (0.1) |
Forfeited (in shares) | shares | (0.6) |
Outstanding, ending balance (in shares) | shares | 5.1 |
Vested and expected to vest (in shares) | shares | 4.9 |
Exercisable (in shares) | shares | 4.1 |
Weighted Average Exercise Price | |
Outstanding, weighted average exercise price, beginning balance (in dollars per share) | $ / shares | $ 12.85 |
Exercised (in dollars per share) | $ / shares | 11.08 |
Forfeited (in dollars per share) | $ / shares | 11.42 |
Outstanding, weighted average exercise price, ending balance (in dollars per share) | $ / shares | 13.06 |
Vested and expected to vest (in dollars per share) | $ / shares | 13.13 |
Exercisable (in dollars per share) | $ / shares | $ 13.48 |
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 | 5 years 1 month 6 days |
Exercisable, weighted average remaining contractual term | 4 years 11 months 12 days |
SHARE-BASED COMPENSATION PLAN_6
SHARE-BASED COMPENSATION PLANS - Summary of the Total Intrinsic Value of Stock Options Exercised and Payment to Settle Nonqualified Stock Options (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |
Intrinsic value of options exercised | $ 0.1 |
SHARE-BASED COMPENSATION PLAN_7
SHARE-BASED COMPENSATION PLANS - Nonvested Nonqualified Stock Options (Details) shares in Millions | 12 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Shares | |
Non-vested, beginning balance (in shares) | shares | 2.3 |
Vested (in Shares) | shares | (0.9) |
Forfeited (in shares) | shares | (0.4) |
Non-vested, ending balance (in shares) | shares | 1 |
Weighted Average Grant Date Fair Value | |
Non-vested, beginning balance (in dollars per share) | $ / shares | $ 3.14 |
Vested (in dollars per share) | $ / shares | 3.70 |
Forfeited (in dollars per share) | $ / shares | 2.23 |
Non-vested, ending balance (in dollars per share) | $ / shares | $ 3.02 |
SHARE-BASED COMPENSATION PLAN_8
SHARE-BASED COMPENSATION PLANS - Executive Ownership Programs (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 137,600,000 | $ 197,800,000 | $ 28,400,000 |
EOP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares purchased during period (in shares) | 0 | 0 | 0.1 |
Share-based compensation expense | $ 0 | $ 0 | $ 0 |
SHARE-BASED COMPENSATION PLAN_9
SHARE-BASED COMPENSATION PLANS - Series A Preferred Stock Narrative (Details) - Series A Preferred Stock - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment arrangement (income) expense | $ 0.2 | $ (0.2) | $ 0.8 |
Nonqualified stock options contractual life | 7 years |
SHARE-BASED COMPENSATION PLA_10
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 | Jun. 30, 2021 | |
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 | 2 years 8 months 26 days |
Expected volatility | 66.31% | 65.57% | 51.64% |
Risk-free rate of return | 5.44% | 2.89% | 0.46% |
Dividend yield on Class A Common Stock | 0% | 1.56% | 1.34% |
SHARE-BASED COMPENSATION PLA_11
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, 2023 USD ($) $ / shares shares | |
Shares | |
Outstanding, beginning of period (in shares) | shares | 1.5 |
Forfeited (in shares) | shares | (0.5) |
Outstanding, end of period (in shares) | shares | 1 |
Vested and expected to vest (in shares) | shares | 1 |
Exercisable (in shares) | shares | 1 |
Weighted Average Exercise Price | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 22.10 |
Forfeited (in dollars per share) | $ / shares | 21.52 |
Outstanding, end of period (in dollars per share) | $ / shares | 22.39 |
Vested and expected to vest (in dollars per share) | $ / shares | 22.39 |
Exercisable (in dollars per share) | $ / shares | $ 22.39 |
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 | 8 months 26 days |
Exercisable, weighted average remaining contractual term | 8 months 26 days |
SHARE-BASED COMPENSATION PLA_12
SHARE-BASED COMPENSATION PLANS - Nonvested Shares of Series A Preferred Stock (Details) - Series A Preferred Stock shares in Millions | 12 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 0.2 |
Forfeited (in shares) | shares | (0.2) |
Outstanding, ending balance (in shares) | shares | 0 |
Weighted Average Grant Date Fair Value | |
Outstanding and nonvested, beginning balance (in dollars per share) | $ / shares | $ 3.65 |
Forfeited (in dollars per share) | $ / shares | 3.65 |
Outstanding and nonvested, ending balance (in dollars per share) | $ / shares | $ 0 |
SHARE-BASED COMPENSATION PLA_13
SHARE-BASED COMPENSATION PLANS - Long-term Equity Program for CEO Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||||
May 04, 2023 | Oct. 29, 2021 | Oct. 14, 2021 | Oct. 14, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Aug. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||||
Total share-based compensation expense | $ 137.6 | $ 197.8 | $ 28.4 | |||||
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 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Total share-based compensation expense | $ 131.9 | 197.2 | $ 26.1 | |||||
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% | ||||||
Restricted Stock Units | Tranche One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights, percentage | 25% | 33.30% | ||||||
Performance Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total unrecognized share-based compensation expense | 5 | |||||||
Total share-based compensation expense | 1.5 | |||||||
Chief Executive Officer | Restricted Stock Units | Award | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total unrecognized share-based compensation expense | 280.2 | |||||||
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 | |||||||
Total unrecognized share-based compensation expense | $ 109.6 | |||||||
Vesting period | 5 years | |||||||
Total share-based compensation expense | $ 3.2 | |||||||
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) | 10,000,000 | |||||||
Chief Executive Officer | Restricted Stock Units | Common Class A | 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 | 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 Two | Award | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares to be granted for awards (in shares) | 10,000,000 | 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 Three | Award | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares to be granted for awards (in shares) | 10,000,000 | |||||||
Total unrecognized share-based compensation expense | $ 15.9 | |||||||
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 | JAB Beauty B.V. | Award | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares to be contributed by related party (in shares) | 5,000,000 | |||||||
Chief Executive Officer | Restricted Stock Units | Tranche One | Award | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares to be granted for awards (in shares) | 10,000,000 | |||||||
Total unrecognized share-based compensation expense | $ 93.4 | $ 170.9 | ||||||
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 | JAB Beauty B.V. | Award | ||||||||
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 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 | |||||||
Performance objectives term | 3 years |
SHARE-BASED COMPENSATION PLA_14
SHARE-BASED COMPENSATION PLANS - Restricted Share Units Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Oct. 14, 2021 | Oct. 14, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | $ 137.6 | $ 197.8 | $ 28.4 | ||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Granted (in shares) | 17.5 | ||||
Total share-based compensation expense | $ 131.9 | 197.2 | 26.1 | ||
Total intrinsic value of restricted shares vested and settled | $ 34.3 | $ 33.5 | $ 32.9 | ||
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% | |||
Restricted Stock Units | Omnibus Long-Term Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 17.2 | 4.6 | 38.1 | ||
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_15
SHARE-BASED COMPENSATION PLANS - Restricted Share Units Activity & Performance Restricted Stock Units (Details) shares in Millions, $ in Millions | 12 Months Ended |
Jun. 30, 2023 USD ($) shares | |
Restricted Stock Units | |
Shares | |
Outstanding, beginning balance (in shares) | 32.4 |
Granted (in shares) | 17.5 |
Settled (in shares) | (14.9) |
Cancelled (in shares) | (1.1) |
Outstanding, ending balance (in shares) | 33.9 |
Vested and expected to vest (in shares) | 31 |
Vested and expected to vest, aggregate intrinsic value | $ | $ 381 |
Vested and expected to vest, weighted average remaining contractual term | 2 years 3 months 3 days |
Performance Restricted Stock Units | |
Shares | |
Outstanding, beginning balance (in shares) | 0 |
Granted (in shares) | 1.2 |
Settled (in shares) | 0 |
Outstanding, ending balance (in shares) | 1.2 |
Vested and expected to vest (in shares) | 1 |
Vested and expected to vest, aggregate intrinsic value | $ | $ 12.3 |
Vested and expected to vest, weighted average remaining contractual term | 2 years 3 months 21 days |
SHARE-BASED COMPENSATION PLA_16
SHARE-BASED COMPENSATION PLANS - Outstanding and Nonvested Restricted Share Units & Performance Restricted Stock Units Activity (Details) shares in Millions | 12 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Restricted Stock Units | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 32 |
Granted (in shares) | shares | 17.5 |
Vested (in shares) | shares | (15) |
Cancelled (in shares) | shares | (1.1) |
Outstanding, ending balance (in shares) | shares | 33.4 |
Weighted Average Grant Date Fair Value | |
Outstanding and nonvested, beginning balance (in dollars per share) | $ / shares | $ 8.63 |
Granted (in dollars per share) | $ / shares | 9.70 |
Vested (in dollars per share) | $ / shares | 8.79 |
Cancelled (in dollars per share) | $ / shares | 8.02 |
Outstanding and nonvested, ending balance (in dollars per share) | $ / shares | $ 9.38 |
Performance Restricted Stock Units | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 1.2 |
Vested (in shares) | shares | 0 |
Outstanding, ending balance (in shares) | shares | 1.2 |
Weighted Average Grant Date Fair Value | |
Outstanding and nonvested, beginning balance (in dollars per share) | $ / shares | |
Granted (in dollars per share) | $ / shares | 6.62 |
Vested (in dollars per share) | $ / shares | |
Outstanding and nonvested, ending balance (in dollars per share) | $ / shares | $ 6.62 |
SHARE-BASED COMPENSATION PLA_17
SHARE-BASED COMPENSATION PLANS - Performance Restricted Stock Units Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 137.6 | $ 197.8 | $ 28.4 |
Performance Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 1.2 | ||
Total share-based compensation expense | $ 1.5 | ||
Total intrinsic value of restricted shares vested and settled | $ 0 | ||
Performance Restricted Stock Units | Omnibus Long-Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 1.2 |
SHARE-BASED COMPENSATION PLA_18
SHARE-BASED COMPENSATION PLANS - Restricted Stock Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 137.6 | $ 197.8 | $ 28.4 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 0.4 | 0.3 | 0 |
Total share-based compensation expense | $ 2.7 | $ 1.8 | $ 1 |
Total intrinsic value of restricted shares vested and settled | $ 2.6 | $ 1.7 |
SHARE-BASED COMPENSATION PLA_19
SHARE-BASED COMPENSATION PLANS - Restricted Stock Activity (Details) - Restricted Stock - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Shares | |||
Outstanding, beginning balance (in shares) | 0.6 | ||
Granted (in shares) | 0.4 | 0.3 | 0 |
Settled (in shares) | (0.3) | ||
Outstanding, ending balance (in shares) | 0.7 | 0.6 | |
Vested and expected to vest (in shares) | 0.6 | ||
Vested and expected to vest, aggregate intrinsic value | $ 7.8 | ||
Vested and expected to vest, weighted average remaining contractual term | 1 year 11 months 12 days |
SHARE-BASED COMPENSATION PLA_20
SHARE-BASED COMPENSATION PLANS - Outstanding and Nonvested Restricted Stock Activity (Details) - Restricted Stock - $ / shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Shares | |||
Outstanding, beginning balance (in shares) | 0.6 | ||
Granted (in shares) | 0.4 | 0.3 | 0 |
Vested (in shares) | (0.3) | ||
Outstanding, ending balance (in shares) | 0.7 | 0.6 | |
Weighted Average Grant Date Fair Value | |||
Outstanding and nonvested, beginning balance (in dollars per share) | $ 6.58 | ||
Granted (in dollars per share) | 6.62 | ||
Vested (in dollars per share) | 5.94 | ||
Outstanding and nonvested, ending balance (in dollars per share) | $ 6.94 | $ 6.58 |
SHARE-BASED COMPENSATION PLA_21
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Amounts attributable to Coty Inc.: | |||
Net income (loss) from continuing operations | $ 508.2 | $ 253.8 | $ (64) |
Convertible Series B Preferred Stock dividends | 13.2 | 198.3 | 102.3 |
Net income (loss) from continuing operations attributable to common stockholders | 495 | 55.5 | (166.3) |
Net income (loss) from discontinued operations, net of tax | 0 | 5.7 | (137.3) |
Net income (loss) from continuing operations attributable to common stockholders | $ 495 | $ 61.2 | $ (303.6) |
Weighted-average common shares outstanding: | |||
Weighted-average common shares outstanding—Basic (in shares) | 849 | 820.6 | 764.8 |
Effect of dilutive stock options and Series A/A-1 Preferred Stock (in shares) | 0 | 0 | 0 |
Effect of restricted stock, PRSUs and RSUs (in shares) | 13.8 | 13.5 | 0 |
Effect of Convertible Series B Preferred Stock (in shares) | 23.7 | 0 | 0 |
Effect of Forward Repurchase Contracts | 0 | 0 | 0 |
Weighted-average common shares and common share equivalents outstanding—Diluted (in shares) | 886.5 | 834.1 | 764.8 |
Earnings (losses) per common share | |||
Earnings (losses) from continuing operations per common share - basic (in dollars per share) | $ 0.58 | $ 0.07 | $ (0.22) |
Earnings (losses) from continuing operations per common share - diluted (in dollars per share) | 0.57 | 0.07 | (0.22) |
Earnings (losses) from discontinued operations - basic (in dollars per share) | 0 | 0.01 | (0.18) |
Earnings (losses) from discontinued operations - diluted (in dollars per share) | 0 | 0.01 | (0.18) |
Earnings (losses) per common share - basic (in dollars per share) | 0.58 | 0.08 | (0.40) |
Earnings (losses) per common share - diluted (in dollars per share) | $ 0.57 | $ 0.08 | $ (0.40) |
Convertible Series B Preferred Stock dividends | $ 13.2 | $ 198.3 | $ 102.3 |
Antidilutive fair market value adjustments | $ (101.8) | $ 0 | $ 0 |
Share-Based Payment Arrangement, Option And Series A Preferred Stock | |||
Earnings (losses) per common share | |||
Anti-dilutive shares (in shares) | 4.8 | 8.3 | |
Restricted Stock Units | |||
Earnings (losses) per common share | |||
Anti-dilutive shares (in shares) | 3.2 | 1.6 | |
Convertible Series B Preferred Stock | |||
Earnings (losses) per common share | |||
Anti-dilutive shares (in shares) | 65.4 |
LEGAL AND OTHER CONTINGENCIES -
LEGAL AND OTHER CONTINGENCIES - Brazilian Tax Assessments (Details) R$ in Millions, $ in Millions | Jun. 30, 2023 USD ($) | Jun. 30, 2023 BRL (R$) | Jun. 30, 2022 USD ($) |
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 33.1 | $ 26.4 | |
Pending Litigation | Brazilian Tax Assessments | 2016 - 2017 | Foreign State Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 0.2 | R$ 1.1 | |
Pending Litigation | Brazilian Tax Assessments | 2016 - 2017 | Foreign Federal Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 82.8 | 401.9 | |
Pending Litigation | Brazilian Tax Assessments | 2017 - 2019 | Foreign State Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 117.2 | 569.3 | |
Pending Litigation | Brazilian Tax Assessments | 2018 - 2019 | Foreign Federal Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 110.6 | 537.3 | |
Pending Litigation | Brazilian Tax Assessments | 2016 - 2019 | Foreign State Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 44.8 | 217.4 | |
Pending Litigation | Brazilian Tax Assessments | 2016 - 2020 | Foreign State Tax Authority | |||
Loss Contingencies [Line Items] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 13.1 | R$ 63.8 |
LEGAL AND OTHER CONTINGENCIES_2
LEGAL AND OTHER CONTINGENCIES - Schedule of Other Commitments (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Fiscal Year Ending June 30, | |
2024 | $ 869.3 |
2025 | 24.5 |
2026 | 22.8 |
2027 | 9.9 |
2028 | 5.1 |
Thereafter | 0 |
Total | $ 931.6 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Millions | 7 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2021 | Nov. 10, 2021 USD ($) shares | Oct. 20, 2021 | Jun. 30, 2021 USD ($) | Jun. 30, 2023 USD ($) jurisdiction shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | Jun. 30, 2020 director | Nov. 30, 2020 | Nov. 16, 2020 shares | |
Related Party Transaction [Line Items] | ||||||||||
Preferred stock, shares issued (in shares) | shares | 1,000,000 | 1,500,000 | ||||||||
Accounts receivable | $ 360.9 | $ 364.6 | ||||||||
Accounts payable | 1,444.7 | 1,268.3 | ||||||||
Long-term payables | 325.4 | 340 | ||||||||
Total share-based compensation expense | 137.6 | 197.8 | $ 28.4 | |||||||
Sublease income | 15.8 | 20 | 14.9 | |||||||
Wella Company | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Unearned contingent proceeds received, advance payment | $ 30.8 | 0.7 | ||||||||
Unearned contingent proceeds received, remaining amount | $ 2.5 | |||||||||
Wella Company | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Equity method investment, amount sold (percentage) | 4.70% | 9.40% | ||||||||
Ownership percentage | 25.90% | 25.90% | 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 | |||||||||
Wella Company | Accrued Expenses And Other Current Liabilities | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Long-term payables | $ 0.8 | |||||||||
JAB Partners LLP | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Lessee, operating lease, remaining lease term | 8 years | |||||||||
JAB Partners LLP | Performance Guarantee | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Maximum potential future payments | $ 4.1 | |||||||||
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 | |||||||||
KKR | Issuance and Closing of Convertible Preferred Stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Expenses | $ 0 | $ 0 | 7.6 | |||||||
Wella Company | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Accounts receivable | 70.6 | |||||||||
Accounts payable | 8.3 | |||||||||
Total share-based compensation expense | 4.6 | 0.7 | 2.3 | |||||||
Sublease income | 9.1 | 13.3 | 9.1 | |||||||
Wella Company | Management, Consulting and Financial Services | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Expenses | 2.7 | 0 | 0 | |||||||
Wella Company | Transition Services Agreement Fees | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenue from related party | $ 86.6 | 3.3 | 87.5 | |||||||
Wella Company | Related Party Transaction, Other Fees | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenue from related party | $ 3.4 | $ 7.6 | 6.7 | |||||||
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 | $ 2.3 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Aug. 03, 2023 EUR (€) | Jul. 26, 2023 USD ($) | Jul. 18, 2023 USD ($) | Jul. 11, 2023 USD ($) tranche | Jul. 11, 2023 EUR (€) tranche | Jun. 30, 2023 | Jun. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 |
Senior Notes | |||||||||
Subsequent Event [Line Items] | |||||||||
Stated interest rate | 4.75% | ||||||||
Subsequent Event | 2018 Coty Credit Agreement | Line of Credit | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt refinancing | $ 2,000,000,000 | ||||||||
Number of tranches | tranche | 2 | 2 | |||||||
Credit spread adjustment | 0.10% | ||||||||
Subsequent Event | 2018 Coty Credit Agreement | Line of Credit | Refinancing in Dollars and Certain Other Currencies | |||||||||
Subsequent Event [Line Items] | |||||||||
Borrowing capacity | $ 1,670 | ||||||||
Subsequent Event | 2018 Coty Credit Agreement | Line of Credit | Refinancing in Euros | |||||||||
Subsequent Event [Line Items] | |||||||||
Borrowing capacity | € | € 300,000,000 | ||||||||
Subsequent Event | 2030 Dollar Senior Secured Notes | Senior Notes | |||||||||
Subsequent Event [Line Items] | |||||||||
Amount of debt | $ 750,000,000 | ||||||||
Stated interest rate | 6.625% | ||||||||
Proceeds from issuance of senior secured notes | $ 740,600,000 | ||||||||
Subsequent Event | 2018 Coty Term B Facility due April 2025 | Line of Credit | |||||||||
Subsequent Event [Line Items] | |||||||||
Repayments of Debt | € | € 408,000,000 | ||||||||
Subsequent Event | Discontinued Operations, Disposed of by Sale | Wella Company | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from divestiture | $ 150,000,000 | ||||||||
Wella Company | |||||||||
Subsequent Event [Line Items] | |||||||||
Ownership percentage | 25.90% | 25.90% | 40% | ||||||
Wella Company | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Ownership percentage | 22.30% | ||||||||
KKR | Wella Company | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Ownership percentage by parent | 3.60% |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 53.4 | $ 47.7 | $ 91.1 |
Balance Change through Acquisition/Divestiture | 0 | 0 | (28.4) |
Charged to Costs and Expenses | 4.3 | 26.2 | 5.7 |
Deductions | (34.5) | (20.5) | (20.7) |
Balance at End of Period | 23.2 | 53.4 | 47.7 |
Allowance for customer returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 95.3 | 89.9 | 67.8 |
Balance Change through Acquisition/Divestiture | 0 | 0 | 0 |
Charged to Costs and Expenses | 103 | 128.4 | 131.3 |
Deductions | (115.5) | (123) | (109.2) |
Balance at End of Period | 82.8 | 95.3 | 89.9 |
Deferred tax valuation allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 41.7 | 33.4 | 54.9 |
Balance Change through Acquisition/Divestiture | 0 | 0 | (14.9) |
Charged to Costs and Expenses | 21.7 | 12.5 | 1.4 |
Deductions | (2.7) | (4.2) | (8) |
Balance at End of Period | $ 60.7 | $ 41.7 | $ 33.4 |
Uncategorized Items - coty-2023
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |