GOODWILL AND OTHER INTANGIBLE ASSETS, NET

6 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

Goodwill

Goodwill as of December 31, 2016 and June 30, 2016 is presented below:



	Luxury			Consumer Beauty			Professional Beauty			Total
Gross balance at June 30, 2016	$	1,294.5		$	1,288.2		$	270.8		$	2,853.5
Accumulated impairments	(403.7		)	(237.1		)	—			(640.8		)
Net balance at June 30, 2016	$	890.8		$	1,051.1		$	270.8		$	2,212.7

Changes during the period ended December 31, 2016:
Measurement Period Adjustments ^(a)	—			(16.6		)	—			(16.6		)
Acquisitions ^(b)	342.0			4,192.8			722.5			5,257.3
Foreign currency translation	(8.7		)	(44.9		)	(9.7		)	(63.3		)

Gross balance at December 31, 2016	$	1,627.8		$	5,419.5		$	983.6		$	8,030.9
Accumulated impairments	(403.7		)	(237.1		)	—			(640.8		)
Net balance at December 31, 2016	$	1,224.1		$	5,182.4		$	983.6		$	7,390.1

^(a)Includes measurement period adjustments in connection with the Brazil Acquisition (Refer to Note 3 — Business Combinations)

^(b)Includes goodwill resulting from the P&G Beauty Business and ghd acquisitions during the six months ended December 31, 2016 (Refer to Note 3 — Business Combinations)

As described in Note 4 — Segment Reporting, the Company changed its segments during the second quarter ended December 31, 2016. As a result, the Company allocated goodwill to the new segments using a relative fair value approach. In addition, the Company completed an assessment of any potential goodwill impairment for all reporting units immediately prior to the reallocation and determined that no impairment existed. Further, the Company recast the goodwill and indefinite-lived intangible asset tables for the new segments.

Other Intangible Assets, net

Other intangible assets, net as of December 31, 2016 and June 30, 2016 are presented below:



	December 31, 2016		June 30, 2016
Indefinite-lived other intangible assets	$	3,431.0	$	1,417.0
Finite-lived other intangible assets, net	5,385.6		633.1
Total Other intangible assets, net	$	8,816.6	$	2,050.1

The changes in the carrying amount of indefinite-lived other intangible assets are presented below:



	Luxury			Consumer Beauty			Professional Beauty			Total
Gross balance at June 30, 2016	$	401.2		$	551.5		$	662.1		$	1,614.8
Accumulated impairments	(118.8		)	(75.9		)	(3.1		)	(197.8		)
Net balance at June 30, 2016	282.4			475.6			659.0			1,417.0

Changes during the period ended December 31, 2016:
Acquisitions ^(a)	—			1,390.0			663.8			2,053.8
Foreign currency translation	(14.4		)	(18.5		)	(6.9		)	(39.8		)

Gross balance at December 31, 2016	386.8			1,923.0			1,319.0			3,628.8
Accumulated impairments	(118.8		)	(75.9		)	(3.1		)	(197.8		)
Net balance at December 31, 2016	$	268.0		$	1,847.1		$	1,315.9		$	3,431.0

^(a)Includes Indefinite-lived other intangible assets resulting from the P&G Beauty Business and ghd acquisitions during the six months ended December 31, 2016 (Refer to Note 3 — Business Combinations).

Intangible assets subject to amortization are presented below:



	Cost		Accumulated Amortization			Accumulated Impairment			Net
June 30, 2016
License agreements	$	798.3	$	(532.2	)	$	—		$	266.1
Customer relationships	611.7		(274.2		)	(5.5		)	332.0
Trademarks	128.3		(108.6		)	—			19.7
Product formulations	48.0		(32.7		)	—			15.3
Total	$	1,586.3	$	(947.7	)	$	(5.5	)	$	633.1
December 31, 2016
License agreements ^(a)	$	2,627.6	$	(560.5	)	$	—		$	2,067.1
Customer relationships ^(a)	2,441.2		(332.4		)	(5.5		)	2,103.3
Trademarks ^(a)	1,005.7		(118.3		)	—			887.4
Product formulations and technology^(a)	369.2		(41.4		)	—			327.8
Total	$	6,443.7	$	(1,052.6	)	$	(5.5	)	$	5,385.6

^(a)Includes License agreements, Customer relationships, Trademarks, and Product formulations and technology of $1,836.0, $1,840.0, $879.1 and $322.4, respectively resulting from the P&G Beauty Business and ghd acquisitions during the six months ended December 31, 2016 (Refer to Note 3 — Business Combinations)

Amortization expense totaled $95.1 and $18.9, for the three months ended December 31, 2016 and 2015, respectively, and $116.4 and $38.1 for the six months ended December 31, 2016 and 2015, respectively.

Intangible assets subject to amortization are amortized principally using the straight-line method and have the following weighted-average remaining lives:



Description
License agreements	26.2 years
Customer relationships	14.0 years
Trademarks	24.2 years
Product formulations and technology	13.6 years

As of December 31, 2016, the remaining weighted-average life of all intangible assets subject to amortization is 20.4 years.

The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below:



2017, remaining	$	193.2
2018	372.4
2019	330.6
2020	325.5
2021	316.8
2022	299.8

License Agreements

The Company records assets for license agreements (“licenses”) acquired in transactions accounted for as business combinations. These licenses provide the Company with the exclusive right to manufacture and market on a worldwide and/or regional basis certain of the Company’s products which comprise a significant portion of the Company’s revenues. These licenses have initial terms covering various periods. Certain licenses provide for automatic extensions ranging from 2 to 18 year terms, at the Company’s discretion.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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