XML 51 R34.htm IDEA: XBRL DOCUMENT v3.6.0.2
BUSINESS COMBINATIONS (Tables)
 6 Months Ended
Dec. 31, 2016
Business Combinations [Abstract]  
Schedule of the allocation of the purchase price to net assets acquired
The following table summarizes the estimated allocation of the purchase price to the net assets of ghd as of the November 21, 2016 acquisition date:
 
Estimated
fair value
 
Estimated
useful life
(in years)
Cash and cash equivalents
$
7.1

 
 
Inventories
79.8

 
 
Property, plant and equipment
11.3

 
3 - 10
Goodwill
175.5

 
Indefinite
Indefinite-lived other intangibles assets
163.8

 
Indefinite
Customer relationships
44.2

 
14 - 21
Technology
138.6

 
10 - 20
Other net working capital
(7.4
)
 
 
Net other assets
0.9

 
 
Deferred tax liability, net
(75.3
)
 
 
Total purchase price
538.5

 
 
The following table summarizes the estimated allocation of the purchase price to the net assets of the P&G Beauty Business as of the October 1, 2016 acquisition date:
 
Estimated
fair value
 
Estimated
useful life
(in years)
Cash and cash equivalents
$
387.6

 
 
Inventories
506.7

 
 
Property, plant and equipment
770.4

 
3 - 40
Goodwill
5,081.8

 
Indefinite
Trademarks - indefinite
1,890.0

 
Indefinite
Trademarks - finite
879.1

 
10 - 30
Customer relationships
1,795.8

 
1.5 - 17
License agreements
1,836.0

 
10 - 30
Product formulations
183.8

 
5 - 29
Other net working capital
10.8

 
 
Net other assets
54.9

 
 
Unfavorable contract liabilities
(130.0
)
 
 
Pension liabilities
(394.9
)
 
 
Deferred tax liability, net
(1,301.6
)
 
 
Total purchase price
$
11,570.4

 
 
The following table summarizes the allocation of the purchase price to the net assets acquired as of the February 1, 2016 acquisition date:
 
Estimated
fair value as previously reported (a)
 
Measurement period adjustments (b)
 
Estimated
fair value as adjusted
 
Estimated
useful life
(in years)
Cash and cash equivalents
$
11.1

 
$
—

 
$
11.1

 
 
Inventories
45.6

 
—

 
45.6

 
 
Property, plant and equipment
95.4

 
—

 
95.4

 
2 - 40
Goodwill
553.7

 
(16.6
)
 
537.1

 
Indefinite
Trademarks - indefinite
147.1

 
—

 
147.1

 
Indefinite
Trademarks - finite
10.3

 
—

 
10.3

 
5 - 15
Customer relationships
44.6

 
—

 
44.6

 
13 - 28
Product formulations
12.8

 
—

 
12.8

 
3
Other net working capital
0.7

 
—

 
0.7

 
 
Net other assets
2.1

 
(0.7
)
 
1.4

 
 
Deferred tax liability, net
(21.5
)
 
17.3

 
(4.2
)
 
 
Total purchase price
$
901.9

 
$
—

 
$
901.9

 
 
 
 
(a) As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016.
(b) The Company recorded measurement period adjustments in the first quarter of fiscal 2017 to account for a $0.7 asset retirement obligation, as well as, a net decrease in net deferred tax liability of $17.3 million as of the February 1, 2016 acquisition date. These adjustments were offset against Goodwill.
Schedule of unaudited pro forma information
The pro forma information for the three months ended December 31, 2015 and six months ended December 31, 2016 and 2015 are as follows:
 
Three Months Ended December 31,
 
Six Months Ended December 31,


2015 (a)
 
2016 (b)
 
2015 (a)
Pro forma Net revenues
$
2,462.5

 
$
4,407.9

 
$
4,647.8

Pro forma Net income
215.5

 
132.5

 
207.6

Pro forma Net income attributable to Coty Inc.
206.9

 
117.4

 
191.6

Pro forma Net income attributable to Coty Inc. per common share:
 
 
 
 
 
          Basic
$
0.27

 
$
0.16

 
$
0.25

          Diluted
$
0.27

 
$
0.16

 
$
0.25

 
 
(a) The pro forma information for the three and six months ended December 31, 2015 combines the Company's historical results of operations for the three and six months ended December 31, 2015 with P&G Beauty Business results of operations for the three and six months ended December 31, 2015. The pro forma information included $0.0 and $133.0 of non-recurring acquisition-related costs as well as $12.2 and $48.7 of amortization of inventory step up for the three and six months ended December 31, 2015, respectively.
(b) The pro forma information for the six months ended December 31, 2016 combines the Company's historical results of operations for the six months ended December 31, 2016 with P&G Beauty Business results of operations for the three months ended September 30, 2016. P&G Beauty Business results of operations for the three months ended December 31, 2016 are already included in the Company’s historical results of operation. For the six months ended December 31, 2016, the pro forma information excluded $314.1 of non-recurring acquisition-related costs and $36.5 of amortization of inventory step up.