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GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 12 Months Ended
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Jun. 30, 2022
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 2022, 2021 and 2020, the Company recorded total impairments of goodwill at the Company’s reporting units of nil, nil and $105.0, respectively. During fiscal years 2022, 2021 and 2020, the Company recorded total impairments on indefinite-lived other intangible assets of $31.4, nil and $329.0, respectively. Additionally, the Company recorded no impairments on finite-lived other intangible assets during fiscal years 2022, 2021 or 2020. In the fourth quarter of fiscal 2022, as a result of the annual impairment test, the Company recorded asset impairment charges of $21.3 and $10.1 related to the Max Factor and Bourjois trademarks, respectively, that are part of the Consumer Beauty reporting unit. The principal drivers of the impairments were related to the loss of revenue and impact on profitability as a result of the Company’s decision to exit the Russian market. Additionally, the current macroeconomic environment resulted in a 150 basis point increase in the discount rate compared to the May 1, 2021 test. Goodwill Goodwill as of June 30, 2022, 2021 and 2020 is presented below:
| Prestige |  | Consumer Beauty |  | Total
Gross balance at June 30, 2020 | $ | 6,255.5 |  |  | $ | 1,758.5 |  |  | $ | 8,014.0 |
Accumulated impairments | (3,110.3) |  |  | (929.8) |  |  | (4,040.1) |
Net balance at June 30, 2020 | $ | 3,145.2 |  |  | $ | 828.7 |  |  | $ | 3,973.9 |
Changes during the year ended June 30, 2021 |  |  |  |  |
Measurement period adjustments | 13.9 |  |  | (13.9) |  |  | — |
Foreign currency translation | 114.6 |  |  | 29.6 |  |  | 144.2 |
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 |
Other Intangible Assets, net Other intangible assets, net as of June 30, 2022 and 2021 are presented below:
| June 30, 2022 |  | June 30, 2021
Indefinite-lived other intangible assets | $ | 936.6 |  |  | $ | 1,018.7 |
Finite-lived other intangible assets, net | 2,966.2 |  |  | 3,444.3 |
Total Other intangible assets, net | $ | 3,902.8 |  |  | $ | 4,463.0 |
The changes in the carrying amount of indefinite-lived other intangible assets are presented below:
| Trademarks |  | Total
Gross balance at June 30, 2020 | $ | 1,909.0 |  |  | $ | 1,909.0 |
Accumulated impairments | (913.5) |  |  | (913.5) |
Net balance at June 30, 2020 | $ | 995.5 |  |  | $ | 995.5 |
Changes during the year ended June 30, 2021 |  |  |
Foreign currency translation | 23.2 |  |  | 23.2 |
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 |
(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, 2021 |  |  |  |  |  |  |
License and collaboration agreements (a) | $ | 4,192.9 |  |  | $ | (1,229.1) |  |  | $ | (19.6) |  |  | $ | 2,944.2 |
Customer relationships | 803.1 |  |  | (486.3) |  |  | (5.5) |  |  | 311.3 |
Trademarks | 330.2 |  |  | (168.7) |  |  | (0.5) |  |  | 161.0 |
Product formulations and technology | 90.2 |  |  | (62.4) |  |  | — |  |  | 27.8 |
Total | $ | 5,416.4 |  |  | $ | (1,946.5) |  |  | $ | (25.6) |  |  | $ | 3,444.3 |
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 |
(a) Includes the KKW Collaboration Agreement of $180.6 resulting from the KKW Holdings transaction on January 4, 2021 (Refer to Note 4—Business Combinations, Asset Acquisitions and Divestitures. Amortization expense totaled $207.4, $251.2 and $233.1 for the fiscal years ended June 30, 2022, 2021 and 2020, 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 | 20.9 years
Customer relationships | 15.8 years
Trademarks | 15.5 years
Product formulations and technology | 22.3 years
As of June 30, 2022, the remaining weighted-average life of all intangible assets subject to amortization is 20.2 years. The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below:
2023 | $ | 200.0 |
2024 | 198.2 |
2025 | 193.7 |
2026 | 162.5 |
2027 | 152.7 |
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.

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