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v3.23.2

INCOME TAXES (Tables) | 12 Months Ended
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Jun. 30, 2023
Income Tax Disclosure [Abstract] |
Schedule of income before income tax | Income (loss) from continuing operations before income taxes in fiscal 2023, 2022 and 2021 is presented below:
| Year Ended June 30,
| 2023 |  | 2022 |  | 2021
United States | $ | (253.6) |  |  | $ | (277.5) |  |  | $ | (434.4) |
Foreign | 958.4 |  |  | 704.3 |  |  | 194.6 |
Total | $ | 704.8 |  |  | $ | 426.8 |  |  | $ | (239.8) |
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 2023, 2022 and 2021 are presented below:
| Year Ended June 30,
| 2023 |  | 2022 |  | 2021
Provision (benefit) for income taxes on continuing operations: |  |  |  |  |
Current: |  |  |  |  |
Federal | $ | 2.6 |  |  | $ | 6.6 |  |  | $ | 3.8 |
State and local | 2.6 |  |  | (6.0) |  |  | 14.9 |
Foreign | 120.1 |  |  | 152.1 |  |  | 55.2 |
Total | 125.3 |  |  | 152.7 |  |  | 73.9 |
Deferred: |  |  |  |  |
Federal | (61.1) |  |  | (2.7) |  |  | 41.1 |
State and local | 1.0 |  |  | (12.8) |  |  | 5.4 |
Foreign | 116.4 |  |  | 27.6 |  |  | (292.4) |
Total | 56.3 |  |  | 12.1 |  |  | (245.9) |
Provision (benefit) for income taxes on continuing operations | $ | 181.6 |  |  | $ | 164.8 |  |  | $ | (172.0) |
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 2023, 2022 and 2021 is presented below:
| Year Ended June 30,
| 2023 |  | 2022 |  | 2021
Income (loss) from continuing operations before income taxes | $ | 704.8 |  |  | $ | 426.8 |  |  | $ | (239.8) |
Provision (benefit) for income taxes at statutory rate | $ | 148.0 |  |  | $ | 89.6 |  |  | $ | (50.4) |
State and local taxes—net of federal benefit | 2.8 |  |  | (14.9) |  |  | 26.3 |
Foreign tax differentials | (10.1) |  |  | (16.4) |  |  | (23.3) |
Change in valuation allowances | 10.2 |  |  | (2.3) |  |  | (3.8) |
Change in unrecognized tax benefit | 32.5 |  |  | (10.6) |  |  | (18.0) |
Permanent differences—net | (4.9) |  |  | 25.4 |  |  | (13.1) |
Non-deductible executive stock compensation | 27.7 |  |  | 37.1 |  |  | — |
Currency Loss | (13.6) |  |  | (0.2) |  |  | — |
Dispositions of business assets | — |  |  | 12.7 |  |  | — |
Russia exit | (7.0) |  |  | 24.1 |  |  | — |
Principal relocation | — |  |  | — |  |  | (234.4) |
Post-divestiture restructuring | — |  |  | — |  |  | 130.0 |
Other | (4.0) |  |  | 20.3 |  |  | 14.7 |
Provision (benefit) for income taxes on continuing operations | $ | 181.6 |  |  | $ | 164.8 |  |  | $ | (172.0) |
Effective income tax rate | 25.8 | % |  | 38.6 | % |  | 71.7 | %
Schedule of deferred tax assets and liabilities | Significant components of deferred income tax assets and liabilities as of June 30, 2023 and 2022 are presented below:
| June 30, 2023 |  | June 30, 2022
Deferred income tax assets: |  |  |
Inventories | $ | 7.5 |  |  | $ | 8.3 |
Accruals and allowances | 54.9 |  |  | 58.6 |
Sales returns | 19.1 |  |  | 17.3 |
Share-based compensation | 4.8 |  |  | 5.1 |
Employee benefits | 55.6 |  |  | 60.3 |
Net operating loss carry forwards and tax credits | 241.4 |  |  | 296.4 |
Capital loss carry forwards | 0.3 |  |  | 1.1 |
Interest expense limitation carry forward | 47.5 |  |  | 28.5 |
Lease liability | 28.6 |  |  | 30.6 |
Principal relocation lease liability | 424.0 |  |  | 434.0 |
Property, plant and equipment | 13.0 |  |  | — |
Other | 48.4 |  |  | 31.7 |
Less: valuation allowances | (60.7) |  |  | (41.7) |
Net deferred income tax assets | 884.4 |  |  | 930.2 |
Deferred income tax liabilities: |  |  |
Intangible assets | 817.4 |  |  | 811.9 |
Property, plant and equipment | — |  |  | 9.2 |
Licensing rights | 27.8 |  |  | 25.7 |
Right of use asset | 28.6 |  |  | 31.2 |
Other | 80.5 |  |  | 69.4 |
Deferred income tax liabilities | 954.3 |  |  | 947.4 |
Net deferred income tax (liability) asset | $ | (69.9) |  |  | $ | (17.2) |
Schedule of expirations of tax loss carryforwards | The expirations of tax loss carry forwards, amounting to $686.9 as of June 30, 2023, 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
2024 | $ | — |  |  | $ | 7.9 |  |  | $ | 0.6 |  |  | $ | 8.5 |
2025 | — |  |  | 3.1 |  |  | 3.9 |  |  | 7.0 |
2026 | — |  |  | — |  |  | 9.5 |  |  | 9.5 |
2027 | — |  |  | 245.9 |  |  | 27.8 |  |  | 273.7 |
2028 and thereafter | — |  |  | 115.5 |  |  | 272.7 |  |  | 388.2 |
Total | $ | — |  |  | $ | 372.4 |  |  | $ | 314.5 |  |  | $ | 686.9 |
Schedule of reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of UTBs is presented below:
| Year Ended June 30,
| 2023 |  | 2022 |  | 2021
UTBs—July 1 | $ | 251.6 |  |  | $ | 279.9 |  |  | $ | 277.9 |
Additions based on tax positions related to the current year | 6.7 |  |  | 1.7 |  |  | 32.1 |
Additions for tax positions of prior years | 0.7 |  |  | 20.8 |  |  | — |
Reductions for tax positions of prior years | (1.4) |  |  | (29.4) |  |  | (4.5) |
Settlements | (4.6) |  |  | (0.2) |  |  | (0.4) |
Lapses in statutes of limitations | (13.8) |  |  | (14.1) |  |  | (33.3) |
Foreign currency translation | (3.7) |  |  | (7.1) |  |  | 8.1 |
UTBs—June 30 | $ | 235.5 |  |  | $ | 251.6 |  |  | $ | 279.9 |

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