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DISCONTINUED OPERATIONS | 6 Months Ended
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Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On June 1, 2020, the Comp any entered into a definitive agreement with KKR Bidco, regarding a strategic transaction for the sale of the Wella Business, valuing the business at $4,300.0 on a cash- and debt-free basis. The transaction was completed on November 30, 2020 and Coty retained an initial ownership of 40% of the Wella Business. As of December 31, 2021, the Company owned a 25.9% stake in Wella. See Note 9—Equity Investments for additional information. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Wella Business are presented as discontinued operations in the prior period leading up to the date of the sale, and, as such, have been excluded from both continuing operations and segment results for all periods presented. The Wella Business was comprised of the Professional Beauty and Retail Hair businesses. The following table has selected financial information included in Net income (loss) from discontinued operations for the Wella Business.
|  | Three Months Ended December 31, |  | Six Months Ended December 31,
|  | 2021 (a) |  | 2020 |  | 2021 (a) |  | 2020
Net revenues | $ | — |  |  | $ | 419.9 |  |  | $ | — |  |  | $ | 986.3 |
Cost of sales | — |  |  | 141.5 |  |  | — |  |  | 322.5 |
Gross profit | — |  |  | 278.4 |  |  | — |  |  | 663.8 |
Selling, general and administrative expenses | — |  |  | 203.7 |  |  | — |  |  | 443.7 |
Restructuring costs | — |  |  | (0.7) |  |  | — |  |  | (0.7) |
Operating income | — |  |  | 75.4 |  |  | — |  |  | 220.8 |
Interest expense, net | — |  |  | 9.5 |  |  | — |  |  | 21.3 |
(Gain) loss on sale of business | (4.8) |  |  | 219.1 |  |  | (4.8) |  |  | 219.1 |
Other income, net | — |  |  | (1.1) |  |  | — |  |  | (1.0) |
Income (loss) from discontinued operations before income taxes | 4.8 |  |  | (152.1) |  |  | 4.8 |  |  | (18.6) |
Provision for income taxes on discontinued operations | 1.0 |  |  | 83.5 |  |  | 1.0 |  |  | 112.3 |
Net income (loss) from discontinued operations | $ | 3.8 |  |  | $ | (235.6) |  |  | $ | 3.8 |  |  | $ | (130.9) |
(a)Net income from discontinued operations for the three and six months ended December 31, 2021 reflect certain purchase price working capital adjustments net of the related income tax impact. The following is selected financial information included in cash flows from discontinued operations for the Wella Business held for sale:
|  | Six Months Ended December 31, 2020
NON-CASH OPERATING ITEMS |
Depreciation and amortization | $ | — |
CASH FLOW FROM INVESTING ACTIVITIES |
Capital expenditures | $ | 8.7 |
On December 22, 2021, the Company entered into an agreement with KKR Bidco related to post-closing adjustments to the purchase consideration for the Wella Business. As part of this agreement, the Company may receive future contingent proceeds. Earning the contingent proceeds is based on the future recovery of certain tax credits of the Wella Business. The Company accounts for the initial measurement of contingent consideration under a loss recovery approach. As of the time the contingent consideration arrangement was entered into, the Company was unable to determine that it was probable that any of the contingent consideration would be earned. Therefore, no contingent consideration gain was initially recognized. Subsequent measurement of the total contingent consideration will be based on the guidance for gain contingencies and any gain will be recorded at the time the consideration is earned. During the quarter, a $34.0 advance of future contingent proceeds was paid to the Company and is subject to claw back if recovery targets related to the Wella Business tax credits are not achieved. The $34.0 advanced to the Company is unearned and is included in Other noncurrent liabilities. The advance payment will be reflected as a liability until the contingency is resolved.

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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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