FAIR VALUE MEASUREMENTS

3 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

11. FAIR VALUE MEASUREMENTS

The following fair value hierarchy is used in selecting inputs for those assets and liabilities measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three levels:

Level 1—Valuation based on quoted market prices in active markets for identical assets or liabilities;

Level 2—Valuation based on inputs other than Level 1 inputs that are observable for the assets or liabilities either directly or indirectly;

Level 3—Valuation based on prices or valuation techniques that require inputs that are both significant to the fair value measurement and supported by little or no observable market activity.

The financial assets and liabilities that the Company measures at fair value on a recurring basis based on the fair value hierarchy, as of September 30, 2013 and June 30, 2013 are presented below:

	Level 1				Level 2						Level 3
	September 30, 2013		June 30, 2013		September 30, 2013			June 30, 2013			September 30, 2013		June 30, 2013
Financial assets and liabilities
Recurring fair value measurements
Assets:
Foreign exchange contracts	$	—	$	—	$	0.1		$	0.6		$	—	$	—
Liabilities:
Foreign exchange contracts	$	—	$	—	$	1.3		$	0.8		$	—	$	—
Total recurring fair value measurements	$	—	$	—	$	(1.2	)	$	(0.2	)	$	—	$	—

The Company has concluded that the carrying amounts of cash and cash equivalents, trade receivables, accounts payable, certain accrued expenses, and short-term debt approximate their fair values due to their short-term nature.

The following methods and assumptions were used to estimate the fair value of the Company’s other financial instruments for which it is practicable to estimate that value:

Foreign exchange contracts—The Company uses an industry standard valuation model, which is based on the income approach, to value the foreign exchange contracts. The significant observable inputs to the model, such as swap yield curves and currency spot and forward rates, were obtained from an independent pricing service. Based on the assumptions used to value foreign exchange contracts at fair value, these assets and/or liabilities are categorized as Level 2 in the fair value hierarchy.

Coty Inc. Credit Facility—The Company uses the income approach to value the Credit Facility. The Company uses a present value calculation to discount interest payments and the final maturity payment on the Credit Facility using a discounted cash flow model based on observable inputs. The Company discounts the debt based on what the current market rates would offer the Company as of the reporting date. Based on the assumptions used to value the Credit Facility at fair value, this debt is categorized as Level 2 in the fair value hierarchy.

Senior Notes—The Company uses the income approach to value the Senior Notes. The Company uses the present value calculation to discount interest payments and the final maturity payment on the Senior Notes using a discounted cash flow model based on observable inputs. The Company discounts the debt based on what the current market rates would offer the Company as of the reporting date. Based on the assumptions used to value Senior Notes at fair value, this debt is categorized as Level 2 in the fair value hierarchy.

The fair values of the Company’s financial instruments estimated as of September 30, 2013 and June 30, 2013 are presented below:

	September 30, 2013				June 30, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Coty Inc. Credit Facility	$	2,095.0	$	2,095.0	$	2,095.0	$	2,086.1
Senior Notes - Series A		100.0		108.8		100.0		108.3
Senior Notes - Series B		225.0		244.8		225.0		244.4
Senior Notes - Series C		175.0		189.4		175.0		190.0