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EQUITY AND CONVERTIBLE PREFERRED STOCK | 3 Months Ended
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Sep. 30, 2020
Equity [Abstract] |
EQUITY AND CONVERTIBLE PREFERRED STOCK | EQUITY AND CONVERTIBLE PREFERRED STOCK Common Stock As of September 30, 2020, 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 September 30, 2020, total authorized shares of Class A Common Stock was 1,250.0 million and total outstanding shares of Class A Common Stock wa s 765.7 million. As of September 30, 2020, the Company’s largest stockholder was Cottage Holdco B.V., which owned approximately 61% of Coty’s outstanding Class A Common Stock. Cottage Holdco B.V., a wholly-owned subsidiary of JAB Cosmetics B.V. (“JABC”), is indirectly controlled by Lucresca SE, Agnaten SE and JAB Holdings B.V. (“JAB”). During the three months ended September 30, 2020, JABC did not acquire any shares of Class A Common Stock. Series A and A-1 Preferred Stock As of September 30, 2020, 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 September 30, 2020, total authorized, issued and outstanding shares of Series A Preferred Stock were 1.5 million, and Series A-1 Preferred Stock were nil. Series A Preferred Stock and Series A-1 Preferred Stock are not entitled to receive any dividends and have no voting rights except as required by law. As of September 30, 2020, the Company has nil Series A and Series A-1 Preferred Stock classified as equity or as a liability recorded in Other noncurrent liabilities in the Condensed Consolidated Balance Sheet. Convertible Series B Preferred Stock On May 11, 2020, the Company entered into an Investment Agreement with KKR Aggregator (the “Investor”), relating to the issuance and sale by the Company to the Investor 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 Issuance was proposed to be issued in two tranches: (i) an initial issuance of 750,000 shares of Series B Preferred Stock (the “Initial Issuance”) and (ii) a subsequent issuance of 250,000 shares of Series B Preferred Stock (the “Second Issuance”), which was subject to the execution and delivery of a definitive purchase agreement between the Company and the Investor or certain of its affiliates in respect of the Wella Business. On May 26, 2020 (the “Closing Date”), the Company and the Investor completed the issuance and sale of 750,000 shares of the Company’s Series B Preferred Stock for an aggregate purchase price of $750.0. On July 31, 2020, the Company completed the previously announced issuance and sale of 250,000 shares of the Company’s Series B Preferred Stock to the Investor for an aggregate purchase price of $250.0. Cumulative preferred dividends accrue daily on the Series B Preferred Stock at a rate of 9.0% per year. The Series B Preferred Stock had accrued unpaid dividends of $27.3 and $6.5 as of September 30, 2020 and June 30, 2020, respectively. There were no dividends paid in relation to the Series B Preferred Stock in the three months ended September 30, 2020. Treasury Stock Share Repurchase Program Since February 2014, the Board has authorized the Company to repurchase its Class A Common Stock under approved repurchase programs. On February 3, 2016, the Board authorized the Company to repurchase up to $500.0 of its Class A Common Stock (the “Incremental Repurchase Program”). Repurchases may be made from time to time at the Company’s discretion, based on ongoing assessments of the capital needs of the business, the market price of its Class A Common Stock, and general market conditions. For the three months ended September 30, 2020, the Company did not repurchase any shares of its Class A Common Stock. As of September 30, 2020, the Company had authority for $396.8 remaining under the Incremental Repurchase Program. Other Repurchases There were no other stock repurchases during the three months ended September 30, 2020. The Company repurchased 0.5 million shares of its Class A Common Stock for $4.5 during the three months ended September 30, 2019 in connection with the exit of an executive in September 2019. Dividend s On April 29, 2020, the Board of Directors suspended the payment of dividends, in keeping with the 2018 Coty Credit Agreement, as amended, which is expected to last through April 21, 2021 or until such later date that a Net debt to Adjusted EBITDA of 4x is reached. During fiscal 2020, prior to the Board’s decision to suspend the payment of dividends, the Company maintained a Stock Dividend Reinvestment Program and had registered a total of 19.3 shares of Class A Common Stock for purchase under the program. All holders of records of Class A Common Stock had the opportunity to participate in the program; if a holder elected to participate in the program fifty percent (50%) of their cash dividends were reinvested in additional shares of Class A Common Stock. The change in dividends accrued recorded to additional paid-in capital (“APIC”) in the Condensed Consolidated Balance Sheet as of September 30, 2020 were $0.8, consisting of $0.8 of dividends no longer expected to vest as a result of forfeitures of outstanding RSUs. In addition to the activity noted above, the Company made a payment of $0.8 for the previously accrued dividends on RSUs that vested during the three months ended September 30, 2020. Thus, total dividends settled in cash during the three months ended September 30, 2020 were $0.8. Total accrued dividends on unvested RSUs and phantom units of $2.0 and $3.0 are included in Accrued expenses and other current liabilities and Other noncurrent liabilities, respectively, in the Condensed Consolidated Balance Sheet as of September 30, 2020. Accumulated Other Comprehensive Income (Loss)
|  |  | Foreign Currency Translation Adjustments |  |  |  |
| Loss on Cash Flow Hedges |  | Gain (loss) on Net Investment Hedge |  | Other Foreign Currency Translation Adjustments |  | Pension and Other Post-Employment Benefit Plans (a) |  | Total
Balance—July 1, 2020 | $ | (43.0) |  |  | $ | 261.9 |  |  | $ | (683.8) |  |  | $ | 8.7 |  |  | $ | (456.2) |
Other comprehensive (loss) income before reclassifications | (1.0) |  |  | (210.7) |  |  | 200.3 |  |  | — |  |  | (11.4) |
Net amounts reclassified from AOCI/(L) | 6.7 |  |  | — |  |  | — |  |  | (1.2) |  |  | 5.5 |
Net current-period other comprehensive income (loss) | 5.7 |  |  | (210.7) |  |  | 200.3 |  |  | (1.2) |  |  | (5.9) |
Balance—September 30, 2020 | $ | (37.3) |  |  | $ | 51.2 |  |  | $ | (483.5) |  |  | $ | 7.5 |  |  | $ | (462.1) |
(a) For the three months ended September 30, 2020, net amounts reclassified from AOCI/(L) related to pensions and other post-employment benefit plans included amortization of prior service credits and actuarial loss of $1.2, net of tax of $0.0.
|  |  | Foreign Currency Translation Adjustments |  |  |  |
| Loss on Cash Flow Hedges |  | Gain on Net Investment Hedge |  | Other Foreign Currency Translation Adjustments |  | Pension and Other Post-Employment Benefit Plans |  | Total
Balance—July 1, 2019 | $ | (13.3) |  |  | $ | 214.8 |  |  | $ | (257.4) |  |  | $ | (2.9) |  |  | $ | (58.8) |
Other comprehensive (loss) income before reclassifications | (0.5) |  |  | 161.2 |  |  | (283.8) |  |  | — |  |  | (123.1) |
Net amounts reclassified from AOCI/(L) | (0.7) |  |  | — |  |  | — |  |  | (0.8) |  |  | (1.5) |
Net current-period other comprehensive (loss) income | (1.2) |  |  | 161.2 |  |  | (283.8) |  |  | (0.8) |  |  | (124.6) |
Balance—September 30, 2019 | $ | (14.5) |  |  | $ | 376.0 |  |  | $ | (541.2) |  |  | $ | (3.7) |  |  | $ | (183.4) |

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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