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DISCONTINUED OPERATIONS | 3 Months Ended
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Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On June 1, 2020, the Company entered into a definitive agreement with Rainbow UK Bidco Limited (“KKR Bidco”) , regarding a strategic transaction for the sale of Coty’s Professional and Ret ail Hair business, including the Wella, Clairol, OPI and ghd brands (together, the “Wella Business”), valuing the businesses at $4,300.0 on a cash- and debt-free basis. KKR will own 60% of this separately managed business and Coty will own the remaining 40%. The transaction is expected to close during the second quarter of fiscal 2021. On June 1, 2020, the Company and KKR Bidco also entered into a Separation Agreement, which sets forth the terms and conditions on which the Wella Business will be separated from the Company. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Wella Business are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Additionally, the Wella Business assets and liabilities which will be included in the sale are presented as assets and liabilities held for sale in the Condensed Consolidated Balance Sheets. The Wella Business historically comprised the Professional Beauty reportable segment and the Retail Hair business was historically included in the Americas, EMEA and Asia Pacific reportable segments. The following table has selected financial information included in Net income from discontinued operations for the Wella Business.
| Three Months Ended September 30, |  |
| 2020 |  | 2019 |  |  |  |
Net revenues | $ | 566.4 |  |  | $ | 531.6 |  |  |  |  |
Cost of sales | 181.0 |  |  | 176.5 |  |  |  |  |
Gross profit | 385.4 |  |  | $ | 355.1 |  |  |  |  |
Selling, general and administrative expenses | 240.0 |  |  | 265.9 |  |  |  |  |
Amortization expense | — |  |  | 26.0 |  |  |  |  |
Restructuring costs | — |  |  | 1.2 |  |  |  |  |
Operating income | 145.4 |  |  | 62.0 |  |  |  |  |
Interest expense, net (a) | 11.8 |  |  | 14.3 |  |  |  |
Other (income) expense, net | 0.1 |  |  | (0.1) |  |  |  |  |
Income from discontinued operations before income taxes | 133.5 |  |  | 47.8 |  |  |  |  |
Income tax on discontinued operations | 28.8 |  |  | 8.3 |  |  |  |  |
Net income from discontinued operations | $ | 104.7 |  |  | $ | 39.5 |  |  |  |  |
(a) Interest expense was allocated to the discontinued operations due to a requirement in our Credit Agreement that cash generated from the divestiture of any businesses through March 31, 2021 will be utilized to reduce our debt, other than a maximum of $500.0 that will be used to fund operations. The following is selected financial information included in cash flows from discontinued operations for the Wella Business held for sale:
| Three Months Ended September 30,
| 2020 |  | 2019
NON-CASH OPERATING ITEMS |  |  |
Depreciation and amortization | $ | — |  |  | $ | 36.3 |
CASH FLOW FROM INVESTING ACTIVITIES |  |  |
Capital Expenditures | $ | 4.7 |  |  | $ | 7.9 |
The major components of assets and liabilities of the Wella Business held for sale are provided below. The assets and liabilities held for sale will evolve up to the closing date for normal operational changes as well as contractual adjustments including the finalization of local implementation agreements impacting the separation of the Wella Business in various countries.
| September 30, 2020(a) |  | June 30, 2020(a) |
ASSETS |  |  |  |
Trade receivables | $ | 239.3 |  |  | $ | 168.0 |  |
Inventories | 252.8 |  |  | 269.2 |  |
Prepaid expenses and other current assets | 138.1 |  |  | 134.9 |  |
Property and equipment, net | 246.1 |  |  | 241.3 |  |
Goodwill | 900.4 |  |  | 874.8 |  |
Other intangible assets, net | 2,801.1 |  |  | 2,770.4 |  |
Operating lease right of use asset | 115.4 |  |  | 73.4 |  |
Deferred income taxes | 21.8 |  |  | 25.5 |  |
Other noncurrent assets | 48.4 |  |  | 55.6 |  |
TOTAL ASSETS HELD FOR SALE | $ | 4,763.4 |  |  | $ | 4,613.1 |  |
LIABILITIES |  |  |  |
Accounts payable | $ | 111.9 |  |  | $ | 128.3 |  |
Accrued expenses and other current liabilities | 233.4 |  |  | 236.4 |  |
Current operating lease liabilities | 24.0 |  |  | 17.2 |  |
Income and other taxes payable | 17.5 |  |  | 15.8 |  |
Long-term operating lease liabilities | 92.9 |  |  | 65.9 |  |
Noncurrent deferred tax liabilities | 322.3 |  |  | 324.8 |  |
Pension and other post-employment benefits | 154.0 |  |  | 140.8 |  |
Other noncurrent liabilities | 29.1 |  |  | 27.5 |  |
TOTAL LIABILITIES HELD FOR SALE | $ | 985.1 |  |  | $ | 956.7 |  |
(a) The Company expects that the transaction will clo se in the second quarter of fiscal 2021. As such, for the periods ending September 30, 2020 and June 30, 2020, all assets and liabilities held for sale are reported as current assets and liabilities held for sale on the Consolidated Balance Sheets.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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