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DISCONTINUED OPERATIONS | 9 Months Ended
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Mar. 31, 2021
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS As described in Note 1—Description of Business, on November 30, 2020, the Company completed the strategic transaction for the sale of a majority stake in the Wella Business. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Wella Business are presented as discontinued operations for the period up to and including the date of the sale, and, as such, have been excluded from both continuing operations and segment results for all periods presented. Additionally, the Wella Business assets and liabilities included in the sale are presented as assets and liabilities held for sale in the Condensed Consolidated Balance Sheets for the comparative period provided. The Wella Business was comprised of the Professional Beauty reportable segment and the Retail Hair business, which was included in the Americas, EMEA and Asia Pacific reportable segments. The following table has selected financial information included in Net (loss) income from discontinued operations for the Wella Business.
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2021 (b) |  | 2020 |  | 2021 (b) |  | 2020
Net revenues | $ | — |  |  | $ | 465.5 |  |  | $ | 986.3 |  |  | $ | 1,658.4 |
Cost of sales | — |  |  | 156.3 |  |  | 322.5 |  |  | 559.8 |
Gross profit | — |  |  | 309.2 |  |  | 663.8 |  |  | 1,098.6 |
Selling, general and administrative expenses | — |  |  | 241.2 |  |  | 443.7 |  |  | 793.3 |
Amortization expense | — |  |  | 26.0 |  |  | — |  |  | 78.0 |
Restructuring costs | — |  |  | 1.3 |  |  | (0.7) |  |  | 8.7 |
Operating income | — |  |  | 40.7 |  |  | 220.8 |  |  | 218.6 |
Interest expense, net (a) | — |  |  | 9.8 |  | 21.3 |  |  | 36.8
Loss on sale of business (c) | 27.5 |  |  | — |  |  | 246.6 |  |  | — |
Other expense (income), net | — |  |  | 0.2 |  |  | (1.0) |  |  | — |
(Loss) income from discontinued operations before income taxes | (27.5) |  |  | 30.7 |  |  | (46.1) |  |  | 181.8 |
(Benefit) provision for income taxes on discontinued operations | (10.2) |  |  | (8.7) |  |  | 102.1 |  |  | 18.0 |
Net (loss) income from discontinued operations | $ | (17.3) |  |  | $ | 39.4 |  |  | $ | (148.2) |  |  | $ | 163.8 |
(a)In terest expense was allocated to the discontinued operations due to a requirement in the 2018 Coty Credit Agreement, as amended (defined in Note 12—Debt), 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 is reserved for reinvestment in the business. (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 zero and five months for the three and nine months ended March 31, 2021 respectively. (c)The Loss on sale of business for the three months ended March 31, 2021 reflects certain purchase price working capital adjustments. The following is selected financial information included in cash flows from discontinued operations for the Wella Business held for sale:
| Nine Months Ended March 31,
| 2021 (a) |  | 2020
NON-CASH OPERATING ITEMS |  |  |
Depreciation and amortization | $ | — |  |  | $ | 108.3 |
CASH FLOW FROM INVESTING ACTIVITIES |  |  |
Capital expenditures | $ | 8.7 |  |  | $ | 19.0 |
(a) As the sale of the Wella Business occurred on November 30, 2020, discontinued operations activity comprises five months for the nine month period ended March 31, 2021. The major components of assets and liabilities of the Wella Business held for sale are provided below.
|  |  | June 30, 2020(a) |
ASSETS |  |  |  |
Trade receivables |  |  | $ | 168.0 |  |
Inventories |  |  | 269.2 |  |
Prepaid expenses and other current assets |  |  | 134.9 |  |
Property and equipment, net |  |  | 241.3 |  |
Goodwill |  |  | 874.8 |  |
Other intangible assets, net |  |  | 2,770.4 |  |
Operating lease right-of-use assets |  |  | 73.4 |  |
Deferred income taxes |  |  | 25.5 |  |
Other noncurrent assets |  |  | 55.6 |  |
TOTAL ASSETS HELD FOR SALE |  |  | $ | 4,613.1 |  |
LIABILITIES |  |  |  |
Accounts payable |  |  | $ | 128.3 |  |
Accrued expenses and other current liabilities |  |  | 236.4 |  |
Current operating lease liabilities |  |  | 17.2 |  |
Income and other taxes payable |  |  | 15.8 |  |
Long-term operating lease liabilities |  |  | 65.9 |  |
Noncurrent deferred tax liabilities |  |  | 324.8 |  |
Pension and other post-employment benefits |  |  | 140.8 |  |
Other noncurrent liabilities |  |  | 27.5 |  |
TOTAL LIABILITIES HELD FOR SALE |  |  | $ | 956.7 |  |
(a) The sale of Wella closed on November 30, 2020. For the period ended on 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. The loss on sale of the Wella Business included in Net (loss) income from discontinued operations in the Condensed Consolidated Statements of Operations was $246.6 for the nine months ended March 31, 2021. Initial cash proceeds received by the Company for the sale of its 60% stake in Wella 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.

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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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