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v3.22.2.2

INCOME TAXES (Tables) | 12 Months Ended
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Jun. 30, 2022
Income Tax Disclosure [Abstract] |
Schedule of income before income tax | Income (loss) from continuing operations before income taxes in fiscal 2022, 2021 and 2020 is presented below:
| Year Ended June 30,
| 2022 |  | 2021 |  | 2020
United States | $ | (277.5) |  |  | $ | (434.4) |  |  | $ | (960.3) |
Foreign | 704.3 |  |  | 194.6 |  |  | (507.3) |
Total | $ | 426.8 |  |  | $ | (239.8) |  |  | $ | (1,467.6) |
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 2022, 2021 and 2020 are presented below:
| Year Ended June 30,
| 2022 |  | 2021 |  | 2020
Provision (benefit) for income taxes on continuing operations: |  |  |  |  |
Current: |  |  |  |  |
Federal | $ | 6.6 |  |  | $ | 3.8 |  |  | $ | — |
State and local | (6.0) |  |  | 14.9 |  |  | (0.3) |
Foreign | 152.1 |  |  | 55.2 |  |  | 90.7 |
Total | 152.7 |  |  | 73.9 |  |  | 90.4 |
Deferred: |  |  |  |  |
Federal | (2.7) |  |  | 41.1 |  |  | (286.7) |
State and local | (12.8) |  |  | 5.4 |  |  | (50.6) |
Foreign | 27.6 |  |  | (292.4) |  |  | (130.8) |
Total | 12.1 |  |  | (245.9) |  |  | (468.1) |
Provision (benefit) for income taxes on continuing operations | $ | 164.8 |  |  | $ | (172.0) |  |  | $ | (377.7) |
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 2022, 2021 and 2020 is presented below:
| Year Ended June 30,
| 2022 |  | 2021 |  | 2020
Income (loss) from continuing operations before income taxes | $ | 426.8 |  |  | $ | (239.8) |  |  | $ | (1,467.6) |
Provision (benefit) for income taxes at statutory rate | $ | 89.6 |  |  | $ | (50.4) |  |  | $ | (308.2) |
State and local taxes—net of federal benefit | (14.9) |  |  | 26.3 |  |  | (28.0) |
Foreign tax differentials | (16.4) |  |  | (23.3) |  |  | 7.2 |
Change in valuation allowances | (2.3) |  |  | (3.8) |  |  | 7.4 |
Change in unrecognized tax benefit | (10.6) |  |  | (18.0) |  |  | 21.3 |
Permanent differences—net | 25.4 |  |  | (13.1) |  |  | 14.3 |
Non-deductible executive stock compensation | 37.1 |  |  | — |  |  | — |
Dispositions of business assets | 12.7 |  |  | — |  |  | — |
Russia exit | 24.1 |  |  | — |  |  | — |
Goodwill impairment | — |  |  | — |  |  | 26.1 |
Principal relocation | — |  |  | (234.4) |  |  | — |
Post-divestiture restructuring | — |  |  | 130.0 |  |  | — |
Gain on sale of business adjustment | — |  |  | — |  |  | (132.1) |
Other | 20.1 |  |  | 14.7 |  |  | 14.3 |
Provision (benefit) for income taxes on continuing operations | $ | 164.8 |  |  | $ | (172.0) |  |  | $ | (377.7) |
Effective income tax rate | 38.6 | % |  | 71.7 | % |  | 25.7 | %
Schedule of deferred tax assets and liabilities | Significant components of deferred income tax assets and liabilities as of June 30, 2022 and 2021 are presented below:
| June 30, 2022 |  | June 30, 2021
Deferred income tax assets: |  |  |
Inventories | $ | 8.3 |  |  | $ | 9.7 |
Accruals and allowances | 58.6 |  |  | 86.4 |
Sales returns | 17.3 |  |  | 16.4 |
Share-based compensation | 5.1 |  |  | 5.8 |
Employee benefits | 60.3 |  |  | 101.6 |
Net operating loss carry forwards and tax credits | 296.4 |  |  | 295.4 |
Capital loss carry forwards | 1.1 |  |  | 1.1 |
Interest expense limitation carry forward | 28.5 |  |  | 15.5 |
Lease liability | 30.6 |  |  | 24.3 |
Principal relocation lease liability | 434.0 |  |  | 487.8 |
Property, plant and equipment | — |  |  | 7.7 |
Other | 31.7 |  |  | 36.8 |
Less: valuation allowances | (41.7) |  |  | (33.4) |
Net deferred income tax assets | 930.2 |  |  | 1,055.1 |
Deferred income tax liabilities: |  |  |
Intangible assets | 811.9 |  |  | 892.1 |
Property, plant and equipment | 9.2 |  |  | — |
Licensing rights | 25.7 |  |  | 23.3 |
Right of use asset | 31.2 |  |  | 27.4 |
Other | 69.4 |  |  | 28.7 |
Deferred income tax liabilities | 947.4 |  |  | 971.5 |
Net deferred income tax (liability) asset | $ | (17.2) |  |  | $ | 83.6 |
Expirations of tax loss carryforwards | The expirations of tax loss carry forwards, amounting to $1,074.7 as of June 30, 2022, 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
2023 | $ | — |  |  | $ | — |  |  | $ | 1.5 |  |  | $ | 1.5 |
2024 | — |  |  | — |  |  | 3.5 |  |  | 3.5 |
2025 | — |  |  | 60.2 |  |  | 11.6 |  |  | 71.8 |
2026 | — |  |  | 33.0 |  |  | 1.9 |  |  | 34.9 |
2027 and thereafter | — |  |  | 712.9 |  |  | 250.1 |  |  | 963.0 |
Total | $ | — |  |  | $ | 806.1 |  |  | $ | 268.6 |  |  | $ | 1,074.7 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of UTBs is presented below:
| Year Ended June 30,
| 2022 |  | 2021 |  | 2020
UTBs—July 1 | $ | 279.9 |  |  | $ | 277.9 |  |  | $ | 263.6 |
Additions based on tax positions related to the current year | 1.7 |  |  | 32.1 |  |  | 15.9 |
Additions for tax positions of prior years | 20.8 |  |  | — |  |  | 42.9 |
Reductions for tax positions of prior years | (29.4) |  |  | (4.5) |  |  | (27.6) |
Settlements | (0.2) |  |  | (0.4) |  |  | (0.1) |
Lapses in statutes of limitations | (14.1) |  |  | (33.3) |  |  | (12.7) |
Foreign currency translation | (7.1) |  |  | 8.1 |  |  | (4.1) |
UTBs—June 30 | $ | 251.6 |  |  | $ | 279.9 |  |  | $ | 277.9 |

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