ACQUISITION OF BUSINESSES

12 Months Ended

Jun. 30, 2015

ACQUISITION OF BUSINESSES

ACQUISITION OF BUSINESSES

NOTE 6 — ACQUISITION OF BUSINESSES

The Company acquired RODIN olio lusso, a skin care brand, in October 2014, Le Labo, a fragrance brand, in November 2014, and in January 2015, Editions de Parfums Frédéric Malle, a fragrance brand, and GLAMGLOW, a skin care brand.  The results of operations of these businesses are included in the accompanying consolidated financial statements commencing with the date they were acquired.  The purchase price related to each of these acquisitions includes cash paid at closing plus additional amounts to be paid in the future, a portion of which is contingent on the achievement of certain future operating results. The amounts paid at closing were funded by cash on hand and through the issuance of commercial paper.  The additional amounts are expected to be paid from fiscal 2018 through fiscal 2020 with the exception of working capital adjustments that were paid during fiscal 2015 and additional working capital adjustments and a purchase price true-up payment that are expected to be paid in the first quarter of fiscal 2016.  The aggregate acquisition-date fair value of these transactions was approximately $437 million.

These fiscal 2015 acquisitions were not material, individually or in the aggregate, to the Company’s consolidated financial statements.  Pro forma results of operations of the prior year have not been presented, as the impact on the Company’s consolidated financial results would not have been material.