SEGMENT REPORTING

9 Months Ended

Mar. 31, 2017

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 has 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 operating and reportable segments are:

Luxury — focused on prestige fragrances, premium skin care and premium cosmetics;

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 March 31,						Nine Months Ended March 31,
SEGMENT DATA	2017			2016			2017			2016
Net revenues:
Luxury	$	634.6		$	405.9		$	1,918.6		$	1,433.4
Consumer Beauty	988.6			488.5			2,562.2			1,653.7
Professional Beauty	408.9			56.3			928.2			186.4
Total	$	2,032.1		$	950.7		$	5,409.0		$	3,273.5
Operating (loss) income:
Luxury	$	60.9		$	29.7		$	203.6		$	206.1
Consumer Beauty	63.0			39.2			178.6			210.2
Professional Beauty	(18.2		)	12.8			81.5			53.4
Corporate	(298.2		)	(58.7		)	(622.5		)	(212.6		)
Total	$	(192.5	)	$	23.0		$	(158.8	)	$	257.1
Reconciliation:
Operating (loss) income	$	(192.5	)	$	23.0		$	(158.8	)	$	257.1
Interest expense, net	60.8			25.1			159.1			55.7
Loss on early extinguishment of debt	—			—			—			3.1
Other (income) expense, net	(0.5		)	6.6			0.2			30.4
(Loss) income before income taxes	$	(252.8	)	$	(8.7	)	$	(318.1	)	$	167.9

	Three Months Ended March 31,				Nine Months Ended March 31,
GEOGRAPHIC DATA	2017		2016		2017		2016
Net revenues:
North America	$	685.1	$	311.1	$	1,727.4	$	1,072.8
Europe	848.4		402.0		2,429.4		1,494.8
ALMEA	498.6		237.6		1,252.2		705.9
Total	$	2,032.1	$	950.7	$	5,409.0	$	3,273.5

Long-lived assets:	March 31, 2017		June 30, 2016
United States (a)	$	13,472.8	$	2,688.7
Switzerland	1,917.2		508.0
All other	3,246.4		1,713.6
Total	$	18,636.4	$	4,910.3

^(a) Includes the intangible assets recognized as part of the P&G Beauty Business acquisition which have not been allocated geographically out of the United States as of March 31, 2017. 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 March 31,				Nine Months Ended March 31,
PRODUCT CATEGORY	2017		2016		2017		2016
Fragrance	32.1	%	43.8	%	38.5	%	48.6	%
Color Cosmetics	31.4		39.6		28.9		34.9
Skin & Body Care	10.0		16.6		12.4		16.5
Hair Care	26.5		—		20.2		—
Total Coty Inc.	100.0	%	100.0	%	100.0	%	100.0	%