FAIR VALUE MEASUREMENTS

12 Months Ended

Jun. 30, 2014

The financial assets and liabilities that the Company measures at fair value on a recurring basis based on the fair value hierarchy, as of June 30, 2014 and 2013 are presented below:



	Level 1				Level 2						Level 3
	June 30, 2014		June 30, 2013		June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Financial assets and liabilities
Recurring fair value measurements
Assets:
Foreign exchange contracts	$	—	$	—	$	2.1		$	0.6		$	—		$	—
Liabilities:
Foreign exchange contracts	$	—	$	—	$	11.5		$	0.8		$	—		$	—
Contingent consideration - business combinations	—		—		—			—			1.1			3.5
Total Liabilities	$	—	$	—	$	11.5		$	0.8		$	1.1		$	3.5
Total recurring fair value measurements	$	—	$	—	$	(9.4	)	$	(0.2	)	$	(1.1	)	$	(3.5	)

The reconciliation of Level 3 liabilities recorded at fair value for the fiscal years ended June 30, 2014 and 2013 are presented below:



	June 30, 2014			June 30, 2013
Contingent consideration - business combinations:
Fair Value - July 1	$	3.5		$	—
Addition	1.1			3.5
Gain on change in settlement value ^(a)	(2.4		)	—
Settlement	(1.1		)	—
Effect of exchange rates	—			—
Transfers out of Level 3	—			—
Fair value - June 30	$	1.1		$	3.5

^(a) Gain on change in settlement value was recorded in Selling General and Administrative expense in the Consolidated Statements of Operations.

The fair values of the Company’s financial instruments estimated as of June 30, 2014 and 2013 are presented below:



	June 30, 2014				June 30, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Coty Inc. Credit Facility	$	2,774.5	$	2,763.2	$	2,095.0	$	2,086.1
Senior Notes - Series A	100.0		109.7		100.0		108.3
Senior Notes - Series B	225.0		256.3		225.0		244.4
Senior Notes - Series C	175.0		199.9		175.0		190.0
Dividends payable	0.9		0.7		0.4		0.3

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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