SEGMENT REPORTING

12 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

Operating segments (referred to as “segments”) include components of the enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company has designated its Chief Executive Officer as the CODM.

During fiscal 2016, the Company completed the Brazil Acquisition, a consumer goods company based in Brazil (Note 4). The Company has concluded that the Brazil Acquisition represents a separate operating and reportable segment. The Company anticipates that its operating and reporting segments could change upon completion of the anticipated transaction with The Procter & Gamble Company’s (“P&G”) fine fragrance, color cosmetics, and hair color businesses (the “P&G Beauty Brands”).

The Company has determined that its operating and reportable segments are Fragrances, Color Cosmetics, Skin & Body Care, and Brazil Acquisition (also referred to as “segments”). The reportable segments represent the Company’s product groupings other than the Brazil Acquisition segment. The Brazil Acquisition reportable segment represents revenues and expenses generated from multiple product groupings such as skin care, nail care, deodorants, and hair care products which are principally sold within Brazil. In addition to reflecting the Company’s business model, these segments also reflect how the CODM reviews operating results when making decisions about resources to be allocated to the segments and when assessing their performance. Fragrances products include a variety of men’s and women’s products and include fashion designer, celebrity and lifestyle brands. Color Cosmetics products include nail and other color cosmetics, consisting of lip, eye and other facial color products. Skin & Body Care products include shower gels, deodorants, skin care and sun treatment products.

The Company evaluates segment performance based on several factors, including Operating income (loss). The Company uses Operating income (loss) as a measure of the segment performance as it excludes the impact of corporate-driven decisions related to interest expense and income taxes.

The items within Corporate relate to corporate-based responsibilities and decisions and are not used by the CODM to measure the underlying performance of the segments. Corporate primarily includes a component of share-based compensation expense, restructuring costs, costs related to acquisition activities and certain other expense items not attributable to ongoing operating activities of the segments.

For grants issued prior to June 12, 2013, the effective date of the share-based compensation plan amendments, the component of share-based compensation included in Corporate represents the difference between the grant date fair value and the fair value at June 12, 2013 using equity plan accounting.  Corporate also includes share-based compensation expense related to the Special Share Purchase Transaction as discussed in Note 23.

With the exception of goodwill and acquired intangible assets, the Company does not identify or monitor assets by segment. The Company does not present assets by reportable segment since various assets are shared between reportable segments. The allocation of goodwill and acquired intangible assets by segment is presented in Note 10.

	Year Ended June 30,
SEGMENT DATA	2016			2015			2014
Net revenues:
Fragrances	$	2,012.7		$	2,178.3		$	2,324.0
Color Cosmetics	1,547.5			1,445.0			1,366.2
Skin & Body Care	693.4			771.9			861.4
Brazil Acquisition	95.5			—			—
Total	$	4,349.1		$	4,395.2		$	4,551.6
Depreciation and amortization:
Fragrances	$	86.1		$	90.5		$	102.8
Color Cosmetics	104.5			99.9			92.6
Skin & Body Care	34.8			39.2			50.8
Brazil Acquisition	6.3			—			—
Corporate	0.3			1.3			4.5
Total	$	232.0		$	230.9		$	250.7
Operating income (loss):
Fragrances	$	288.9		$	352.7		$	341.2
Color Cosmetics	213.7			158.5			154.2
Skin & Body Care	39.3			33.1			(337.3		)
Brazil Acquisition	1.5			—			—
Corporate	(289.2		)	(149.2		)	(132.4		)
Total	$	254.2		$	395.1		$	25.7
Reconciliation:
Operating income	$	254.2		$	395.1		$	25.7
Interest expense, net	81.9			73.0			68.5
Loss on early extinguishment of debt	3.1			88.8			—
Other expense, net	30.4			—			1.3
Income (loss) before income taxes	$	138.8		$	233.3		$	(44.1	)

	Year Ended June 30,
	2016		2015		2014
GEOGRAPHIC DATA
Net revenues:
Americas (a)	$	1,663.3	$	1,696.0	$	1,703.8
EMEA (b)	2,169.0		2,166.0		2,302.9
Asia Pacific (c)	516.8		533.2		544.9
Total	$	4,349.1	$	4,395.2	$	4,551.6

^(a)  includes North & South America

^(b)  includes Europe, Middle East and Africa

^(c)includes Asia and Australia

	Year Ended June 30,
	2016		2015		2014
Net revenues:
U.S.	$	1,258.9	$	1,343.1	$	1,338.6
Switzerland (a):
Travel Retail and Export	529.1		482.9		497.8
United Kingdom	—		402.5		415.1
Netherlands	74.5		83.2		93.8
Domestic	26.1		30.2		34.8
Total Switzerland	629.7		998.8		1,041.5
All other	2,460.5		2,053.3		2,171.5
Total	$	4,349.1	$	4,395.2	$	4,551.6
Long-lived assets:
U.S.	$	2,688.7	$	2,713.9	$	2,921.2
Brazil	882.7		1.4		0.2
Switzerland	508.0		297.4		143.8
All other	830.9		931.8		655.0
Total	$	4,910.3	$	3,944.5	$	3,720.2

^(a) The Company’s subsidiaries in Switzerland generate revenues from sales to various countries, from time to time, including the United Kingdom (“U.K.”) and the Netherlands, domestic sales in Switzerland and the Travel Retail and Export business (which sells to a large number of travel outlets, including duty free shops, airlines and other tax-free zones in several countries), as specified separately in the table above. Due to a change in go-to-market strategy for the U.K. from commissionaire to buy and sell distribution, the net revenues for the U.K. are now reported under All other net revenues. 

For Net revenues, a major country is defined as a group of subsidiaries in a country with combined revenues greater than 10% of consolidated net revenues or as otherwise deemed significant.

For Long-lived assets, a major country is defined as a group of subsidiaries within a country with combined long-lived assets greater than 10% of consolidated long-lived assets or as otherwise deemed significant. Long-lived assets include property and equipment, goodwill and other intangible assets.

No customer or group of affiliated customers accounted for more than 10% of the Company’s Net revenues in fiscal 2016, 2015 and 2014 or are otherwise deemed significant.

Within the Company’s reportable segments, product categories exceeding 5% of consolidated net revenues are presented below:

	Year Ended June 30,
PRODUCT CATEGORY	2016		2015		2014
Fragrances:
Designer	35.5	%	36.9	%	37.4	%
Lifestyle	6.6		7.4		7.6
Celebrity	4.2		5.3		6.0
Total	46.3	%	49.6	%	51.0	%
Color Cosmetics:
Nail Care	14.9	%	14.9	%	14.0	%
Other Color Cosmetics	20.7		18.0		16.0
Total	35.6	%	32.9	%	30.0	%
Skin & Body Care:
Body Care	9.9	%	10.9	%	12.6	%
Skin Care	6.0		6.6		6.4
Total	15.9	%	17.5	%	19.0	%
Brazil Acquisition:
Total	2.2	%	—	%	—	%
Total	100.0	%	100.0	%	100.0	%