SEGMENT REPORTING

6 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

Operating and reportable segments (referred to as “segments”) reflect the way the Company is managed and 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.

In connection with the Company’s acquisition of the P&G Beauty Business, the Company realigned its operations and determined management’s internal and external reporting based on the following three divisions – Luxury, Consumer Beauty and Professional Beauty. The new organizational structure is category focused, putting the consumer first, by specifically targeting how and where they shop and what and why they purchase. Each division will have full end-to-end responsibility to optimize consumers’ beauty experience in the relevant categories and channels. The Company has determined that its three divisions are its operating segments and reportable segments. The new operating and reportable segments are:

Luxury — focused on prestige fragrance and premium skin care;

Consumer Beauty — focused on color cosmetics, retail hair coloring and styling products, mass fragrance, mass skin care and body care;

Professional Beauty — focused on hair and nail care products for professionals.

Additionally, in connection with the Company’s acquisition of the P&G Beauty Business, the Company reorganized its geographical structure into three regions: North America (Canada and the United States), Europe and ALMEA (Asia, Latin America, the Middle East, Africa and Australia).

As a result of this change in segment reporting, the Company restated prior period results, by segment, to conform to current period presentation. Prior to the realignment, the Company operated and managed its business as four operating and reportable segments: Fragrances, Color Cosmetics, Skin & Body Care, and the Brazil Acquisition.

Certain revenues and shared costs and the results of corporate initiatives are being managed outside of the three segments by Corporate. 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 restructuring costs, costs related to acquisition activities and certain other expense items not attributable to ongoing operating activities of the segments.

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.

	Three Months Ended December 31,						Six Months Ended December 31,
SEGMENT DATA	2016			2015			2016			2015
Net revenues:
Luxury	$	835.0		$	548.5		$	1,284.0		$	1,027.5
Consumer Beauty	1,001.7			597.2			1,573.6			1,165.2
Professional Beauty	460.0			64.8			519.3			130.1
Total	$	2,296.7		$	1,210.5		$	3,376.9		$	2,322.8
Operating (loss) income:
Luxury	$	66.6		$	88.7		$	142.7		$	176.4
Consumer Beauty	62.9			107.0			115.6			171.0
Professional Beauty	83.3			18.9			99.7			40.6
Corporate	(225.5		)	(62.2		)	(324.3		)	(153.9		)
Total	$	(12.7	)	$	152.4		$	33.7		$	234.1
Reconciliation:
Operating (loss) income	$	(12.7	)	$	152.4		$	33.7		$	234.1
Interest expense, net	57.9			14.6			98.3			30.6
Loss on early extinguishment of debt	—			3.1			—			3.1
Other (income) expense, net	(0.6		)	24.1			0.7			23.8
(Loss) income before income taxes	$	(70.0	)	$	110.6		$	(65.3	)	$	176.6

	Three Months Ended December 31,				Six Months Ended December 31,
GEOGRAPHIC DATA	2016		2015		2016		2015
Net revenues:
North America	$	700.5	$	396.4	$	1,044.9	$	793.4
Europe	1,134.1		585.3		1,581.0		1,091.4
ALMEA	462.1		228.8		751.0		438.0
Total	$	2,296.7	$	1,210.5	$	3,376.9	$	2,322.8

Long-lived assets:	December 31, 2016		June 30, 2016
United States	$	6,052.7	$	2,688.7
Switzerland	4,278.3		508.0
All other (a)	7,294.4		1,713.6
Total	$	17,625.4	$	4,910.3

^(a) Includes the intangible assets recognized as part of the P&G Beauty Business acquisition which have not been allocated geographically as of December 31, 2016. The Company is currently in the process of determining the geographic allocation of these intangible assets.

The table above presents long-lived assets, by our major countries and all other countries. 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.

Presented below are the revenues associated with Company’s product categories:

	Three Months Ended December 31,				Six Months Ended December 31,
PRODUCT CATEGORY	2016		2015		2016		2015
Fragrance	40.8	%	51.8	%	42.3	%	50.5	%
Color Cosmetics	24.3		30.9		27.3		33.0
Skin & Body Care	11.1		17.3		14.1		16.5
Hair Care	23.8		—		16.3		—
Total Coty Inc.	100.0	%	100.0	%	100.0	%	100.0	%