XML 86 R45.htm IDEA: XBRL DOCUMENT v3.2.0.727
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables)
 12 Months Ended
Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of goodwill and other intangible assets
Goodwill as of June 30, 2015 and June 30, 2014 is presented below:
 
Fragrances
 
Color Cosmetics
 
Skin & Body Care
 
Total
Gross balance at June 30, 2014
$
751.9

 
$
538.2

 
$
693.5

 
$
1,983.6

Accumulated impairments (a)
—

 
—

 
(640.8
)
 
(640.8
)
Net balance at June 30, 2014
$
751.9

 
$
538.2

 
$
52.7

 
$
1,342.8

 
 
 
 
 
 
 
 
Changes during the year ended June 30, 2015:
 
 
 
 
 
 
Acquisition contingent payment (b)
$
30.0

 
$
—

 
$
—

 
$
30.0

Acquisitions (c)
35.0

 
148.7

 
11.1

 
194.8

Foreign currency translation
(27.0
)
 
(9.6
)
 
(0.3
)
 
(36.9
)
Reclassification (d)
(69.1
)
 
—

 
69.1

 
—

 
 
 
 
 
 
 
 
Gross balance at June 30, 2015
$
720.8

 
$
677.3

 
$
773.4

 
$
2,171.5

Accumulated impairments
—

 
—

 
(640.8
)
 
(640.8
)
Net balance at June 30, 2015
$
720.8

 
$
677.3

 
$
132.6

 
$
1,530.7

 
 
(a) Prior to June 30, 2013, the Company recorded pre-tax non-cash impairment in the Skin & Body Care reporting unit of $384.4. In fiscal 2014, the Company recorded pre-tax non-cash impairment in the Skin & Body Care reporting unit of $256.4.
(b) Pursuant to the Company's fiscal 2006 acquisition of Unilever Cosmetics International, the Company was contractually obligated to make annual contingent purchase price consideration payments for a 10-year period following the acquisition to the seller. Payments are based on contractually agreed upon sales targets and can range up to $30.0 per year. The Company paid $30.0 during the third quarter of fiscal 2015, 2014 and 2013 for such contingent consideration. The March 2015 payment was the final contingent purchase price payment due under the contract.
(c) During the year ended June 30, 2015, the Company acquired 100% of the assets of Bourjois. This transaction was accounted for as business combinations (See Note 4).
(d) As a result of the Company’s Organizational Redesign program announced on July 9, 2014, a certain brand and its attributable goodwill of $69.1 was reclassified from the Fragrances segment to the Skin & Body Care segment. The Company calculated the fair value of the brand relative to the reporting unit using the same methodology utilized in the annual impairment analysis.
Other Intangible Assets
In fiscal 2015, there were no impairments of Other intangible assets. Other intangible assets, net as of June 30, 2015 and June 30, 2014 are presented below:
 
June 30,
2015
 
June 30,
2014
Indefinite-lived other intangible assets (a)
$
1,274.0

 
$
1,167.8

Finite-lived other intangible assets, net (b)
639.6

 
669.3

Total Other intangible assets, net
$
1,913.6

 
$
1,837.1

 

(a) Net of accumulated impairments of $188.6 as of June 30, 2015 and June 30, 2014.
(b) Net of accumulated impairments of $21.0 and $33.5 related to the TJoy trademark and customer relationships, respectively, recorded in fiscal 2014.
Schedule of impaired intangible assets
The changes in the carrying amount of indefinite-lived other intangible assets are presented below:
 
Fragrances
 
Color
Cosmetics
 
Skin & Body
Care
 
Total
Gross balance at June 30, 2014
$
25.2

 
$
886.5

 
$
453.9

 
$
1,365.6

Accumulated impairments (a)
—

 
(9.2
)
 
(188.6
)
 
(197.8
)
Balance—June 30, 2014
25.2

 
877.3

 
265.3

 
1,167.8

 
 
 
 
 
 
 
 
Changes during the period ended June 30, 2015
 
 
 
 
 
 
Acquisitions (b)
—

 
112.0

 
—

 
112.0

Foreign currency translation
(4.5
)
 
(1.3
)
 
—

 
(5.8
)
 
 
 
 
 
 
 
 
Gross balance at June 30, 2015
20.7

 
997.2

 
453.9

 
1,471.8

Accumulated impairments
—

 
(9.2
)
 
(188.6
)
 
(197.8
)
Net balance at June 30, 2015
$
20.7

 
$
988.0

 
$
265.3

 
$
1,274.0


 
 
(a) Impairment charges of $197.8 were recorded prior to June 30, 2013.
(b) During the year ended June 30, 2015, the Company acquired 100% of the assets of Bourjois. This transaction was accounted for as business combinations (See Note 4).
Intangible assets subject to amortization
Intangible assets with finite lives are amortized principally using the straight-line method over the following estimated useful lives:
Description
 
Estimated Useful Lives
License agreements
 
Lesser of agreement term or economic life
Customer relationships
 
5-20 years
Trademarks
 
5-20 years
Product formulations
 
3-7 years
Intangible assets subject to amortization are presented below:
 
Cost
 
Accumulated Amortization
 
Accumulated Impairment
 
Net
June 30, 2014
 
 
 
 
 
 
 
License agreements
$
835.0

 
$
(490.8
)
 
$
—

 
$
344.2

Customer relationships
510.8

 
(169.4
)
 
(33.5
)
 
307.9

Trademarks
125.8

 
(90.1
)
 
(21.0
)
 
14.7

Product formulations
31.8

 
(29.3
)
 
—

 
2.5

Total
$
1,503.4

 
$
(779.6
)
 
$
(54.5
)
 
$
669.3

June 30, 2015
 
 
 
 
 
 
 
License agreements
$
800.7

 
$
(501.1
)
 
$
—

 
$
299.6

Customer relationships (c)
559.1

 
(232.8
)
 
—

 
326.3

Trademarks (c)
119.1

 
(108.2
)
 
—

 
10.9

Product formulations
32.7

 
(29.9
)
 
—

 
2.8

Total
$
1,511.6

 
$
(872.0
)
 
$
—

 
$
639.6


(c) The cost, accumulated amortization and accumulated impairment related to the TJoy customer relationship and trademark was eliminated as of June 30, 2015 due to disposition of the business.
Schedule of finite-lived intangible assets weighted average remaining lives
Intangible assets subject to amortization are amortized principally using the straight-line method and have the following weighted-average remaining lives:
Description
 
License agreements
10.4 years
Customer relationships
8.8 years
Trademarks
12.4 years
Product formulations
2.6 years
Amortization expense
Amortization expense totaled $74.7, $85.7 and $90.2 for the fiscal years ended June 30, 2015, 2014 and 2013, respectively. The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below:
2016
$
78.6

2017
77.8

2018
77.3

2019
76.4

2020
75.0