BUSINESS COMBINATIONS

6 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

4. BUSINESS COMBINATIONS

On July 1, 2013, the Company executed a Share Purchase Agreement (“SPA”) to acquire 100% of the shares of StarAsia Group Pte Ltd. (“StarAsia”) for consideration of $27.0, subject to post-closing adjustments. Included in the consideration is $3.0 that was deposited in escrow under the SPA, which was placed in escrow to provide for adjustments for net working capital and indemnities against the seller’s warranties. StarAsia is a regional distribution company that acted as a third party distributor of the Company’s fragrance, color cosmetics and skin & body care products, as well as beauty products supplied by parties other than the Company.

In accordance with the terms set forth in the SPA, the net working capital post-closing adjustments have been agreed to by both parties in the amount of $3.5 as of December 31, 2013. The Company received the cash settlement of $3.5 in January 2014. The following table summarizes the consideration and preliminary purchase price allocation to the net assets acquired in the StarAsia acquisition. The purchase price allocation is expected to be finalized during fiscal 2014.

Consideration:
Cash paid	$	25.0
Noncash consideration of pre-acquisition trade-receivables		2.0
Receivable from seller of net working capital adjustment		(3.5	)
Purchase price	$	23.5

	Estimated fair value		Estimated useful life (in years)
Goodwill	$	11.3
Customer relationships		7.2		12
Trademarks		0.2		2
Other net assets		4.8
Total identifiable net assets:	$	23.5

The goodwill is not deductible for tax purposes and represents expected benefits associated with the Company’s control over future expansion in Asia and all of our segments. Preliminary goodwill of $6.9, $3.7, and $0.7 is allocated to Skin & Body Care, Fragrances and Color Cosmetics segments, respectively.

For the three months ended December 31, 2013, Net revenues and Net loss included in the Company’s Condensed Consolidated Statements of Operations were $5.6 and $(2.3), respectively. For the six months ended December 31, 2013, Net revenues and Net loss included in the Company’s Condensed Consolidated Statements of Operations from the date of acquisition were $11.0 and $(3.1), respectively.

Transaction-related costs associated with this acquisition of $1.1 during fiscal 2013 were expensed as incurred and included in Selling, general, and administrative expenses in the Condensed Consolidated Statements of Operations. There were no transaction-related costs during the three and six months ended December 31, 2013.