Delaware | 001-35964 | 13-3823358 | ||
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
350 Fifth Avenue New York, NY | 10118 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits: |
Exhibit No. | Description | |
99.1 | Press release regarding financial results, dated August 22, 2017, of the Company. |
Coty Inc. | |||
(Registrant) | |||
Date: August 22, 2017 | By: | /s/ Patrice de Talhouët | |
Patrice de Talhouët | |||
Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press release regarding financial results, dated August 22, 2017, of the Company. |
Results at a glance | Three Months Ended June 30, 2017 | Year Ended June 30, 2017 | ||||||||||||||||||||||||
Change YoY | Change YoY | |||||||||||||||||||||||||
(in millions, except per share data) | Reported Basis | Combined Company* | Combined Company Constant Currency* | Reported Basis | Combined Company* | Combined Company Constant Currency* | ||||||||||||||||||||
Net revenues | $ | 2,241.3 | >100% | 4 | % | 5 | % | $ | 7,650.3 | 76 | % | (1 | %) | 1 | % | |||||||||||
Operating (loss) income - reported | (279.0 | ) | NM | (437.8 | ) | NM | ||||||||||||||||||||
Operating income - adjusted* | 90.1 | (4 | %) | 772.8 | 24 | % | ||||||||||||||||||||
Net (loss) income - reported | (304.8 | ) | NM | (422.2 | ) | NM | ||||||||||||||||||||
Net income - adjusted* | (3.4 | ) | NM | 408.5 | (16 | %) | ||||||||||||||||||||
EPS (diluted) - reported | $ | (0.41 | ) | NM | $ | (0.66 | ) | NM | ||||||||||||||||||
EPS (diluted) - adjusted* | $0.00 | (100 | %) | $ | 0.63 | (54 | %) |
• | Net revenues of $2,241.3 million increased >100% as reported compared to Legacy-Coty net revenues in the prior-year period, and increased 5% for the combined company at constant currency compared to the prior year |
• | Excluding the positive contribution from the acquisitions of ghd and Younique, combined company organic net revenues declined 3% on a constant currency basis, which includes a 1% net benefit as a result of pre-shipments to customers in advance of the termination of the Transition Services Agreement ("TSA") for Europe which occurred on July 1 |
• | Reported operating loss of $(279.0) million increased from $(2.9) million for Legacy-Coty in the prior-year period driven primarily by a net increase of $190.2 million in restructuring and acquisition related costs, and a $35.6 million net increase in amortization expense primarily due to acquisitions |
• | Adjusted operating income of $90.1 million decreased from $94.2 million for Legacy-Coty in the prior-year period |
• | Reported net loss of $(304.8) million increased from $(31.0) million for Legacy-Coty in the prior-year period, while adjusted net loss of $(3.4) million declined from income of $45.7 million for Legacy-Coty |
• | Reported earnings per diluted share of $(0.41) declined from $(0.09) for Legacy-Coty in the prior-year period, while adjusted earnings per diluted share of $0.00 decreased from $0.13 for Legacy-Coty |
• | Net cash provided by operating activities was $50.8 million compared to $56.1 million for Legacy-Coty in the prior-year period |
• | Net revenues of $7,650.3 million increased 76% as reported compared to Legacy-Coty net revenues in the prior year, and grew 1% on a combined company constant currency basis |
• | Excluding the positive contribution from the acquisitions of ghd, Younique, and seven additional months of Hypermarcas Brands, the combined company organic net revenues declined 5% on a constant currency basis |
• | Reported operating loss of $(437.8) million declined from income of $254.2 million for Legacy-Coty in the prior year, driven primarily by a net increase of $466.7 million in restructuring and acquisition costs and a $195.6 million net increase in amortization expense primarily due to acquisitions |
• | Adjusted operating income of $772.8 million increased 24% from $622.9 million for Legacy-Coty |
• | Reported net loss of $(422.2) million decreased from income of $156.9 million for Legacy-Coty in the prior year while adjusted net income of $408.5 million decreased from $485.2 million |
• | Reported earnings per diluted share of $(0.66) decreased from $0.44 for Legacy-Coty in the prior year, while adjusted earnings per diluted share of $0.63 decreased from $1.37 for Legacy-Coty in part due to a larger tax benefit in fiscal 2016 |
• | Net cash provided by operating activities was $757.5 million compared to $501.4 million for Legacy-Coty in the prior year reflecting improved working capital for the combined company, partially offset by an increase in cash acquisition and restructuring costs |
• | Net cash provided by operating activities for fiscal 2017 was $757.5 million, compared to $501.4 million for Legacy-Coty in the prior year reflecting improved working capital for the combined company, partly offset by an increase in cash acquisition related and restructuring costs. |
• | Free cash flow in fiscal 2017 of $325.2 million decreased from $351.3 million in the prior year, reflecting a significant increase in capital expenditures associated with the P&G Beauty Business integration. |
• | On June 13, 2017, the Company paid a quarterly dividend of $0.125 per share for a total of $93.4 million. |
• | Cash and cash equivalents of $535.4 million increased by $163.0 million, total debt of $7,215.6 million increased by $3,045.5 million, with net debt of $6,680.2 million up $2,882.5 million from the balance on June 30, 2016. This increase reflected the assumption of approximately $1,941.8 million of debt as part of the P&G Beauty Business transaction and financings for the acquisition of ghd and the investment in Younique. |
Year Ended June 30, | |||||||||||||||||||||||||||||||
Net Revenues | Change | Reported Operating Income (Loss) | Adjusted Operating Income | ||||||||||||||||||||||||||||
(in millions) | 2017 | 2016 | Actual Year- over- Year | Combined Company Year- over- Year | Combined Company Constant Currency | 2017 | Change | 2017 | Change | ||||||||||||||||||||||
Luxury | $ | 2,566.6 | $ | 1,836.6 | 40 | % | (3 | %) | (1 | %) | $ | 158.0 | (31 | )% | $ | 283.0 | 1 | % | |||||||||||||
Consumer Beauty | 3,688.2 | 2,262.5 | 63 | % | (3 | %) | (2 | %) | 261.2 | 6 | % | 355.7 | 33 | % | |||||||||||||||||
Professional | 1,395.5 | 250.0 | >100% | 8 | % | 10 | % | 78.5 | 15 | % | 134.1 | 75 | % | ||||||||||||||||||
Corporate | — | — | N/A | N/A | N/A | (935.5 | ) | NM | — | N/A | |||||||||||||||||||||
Total | $ | 7,650.3 | $ | 4,349.1 | 76 | % | (1 | %) | 1 | % | $ | (437.8 | ) | <(100%) | $ | 772.8 | 24 | % |
• | Luxury net revenues of $2,566.6 million increased 40% as reported compared to Legacy-Coty net revenues in the prior-year reflecting the contribution from the acquired P&G Beauty Business. Luxury net revenues decreased 1% for the combined company at constant currency compared to the prior year, reflecting declines in Calvin Klein and Marc Jacobs partly offset by growth in Hugo Boss, philosophy and Chloe. |
• | Adjusted operating income of $283.0 million increased 1% from $279.4 million in the prior-year, resulting in a 11.0% adjusted operating income margin, a decrease of 420 basis points versus Legacy-Coty in the prior-year. |
• | Consumer Beauty net revenues of $3,688.2 million increased 63% as reported compared to Legacy-Coty net revenues in the prior year reflecting the contribution from the acquired P&G Beauty Business, Younique and Hypermarcas Brands. Consumer Beauty net revenues decreased 2% for the combined company at constant currency compared to the prior year, reflecting a 10% organic decline largely offset by positive contributions from both Younique and seven months of the Hypermarcas Brands. The organic decline reflected weakness in several of the acquired P&G Beauty Business brands COVERGIRL, Clairol and Wella Retail, as well as continued weakness in the U.S. nail category which pressured the Sally Hansen brand. |
• | Adjusted operating income of $355.7 million increased 33% from $267.0 million in the prior-year, resulting in a 9.6% adjusted operating income margin, a decrease of 220 basis points versus Legacy-Coty in the prior year. |
• | Professional Beauty net revenues of $1,395.5 million increased from $250.0 million for Legacy-Coty net revenues in the prior year reflecting the contribution from the P&G Beauty Business and ghd acquisitions. Professional Beauty net revenues increased 10% for the combined company at constant currency compared to the prior year, reflecting flat organic net revenues and a positive contribution from ghd. Strong momentum in Wella and System Professional salon hair care was offset by declines in OPI, though these declines moderated in Q4 compared to prior quarters. |
• | Adjusted operating income of $134.1 million increased 75% from $76.5 million in the prior-year, resulting in a 9.6% adjusted operating income margin, a decrease from 30.6% for Legacy-Coty in the prior year. |
Year Ended June 30, | |||||||||||||||||
Net Revenues | Change | ||||||||||||||||
(in millions) | 2017 | 2016 | Reported Basis | Combined Company Year-Over-Year | Combined Company Constant Currency | ||||||||||||
North America | $ | 2,506.9 | $ | 1,413.0 | 77 | % | (2 | %) | (2 | %) | |||||||
Europe | 3,325.7 | 1,924.6 | 73 | % | (5 | %) | 0 | % | |||||||||
ALMEA | 1,817.7 | 1,011.5 | 80 | % | 8 | % | 6 | % | |||||||||
Total | $ | 7,650.3 | $ | 4,349.1 | 76 | % | (1 | %) | 1 | % |
• | Reported net revenues increased 77% compared to Legacy-Coty in the prior year and declined 2% for the combined company at constant currency compared to the prior year, driven by declines in the U.S., primarily in the Consumer Beauty division. |
• | Reported net revenues increased 73% compared to Legacy-Coty in the prior year and was flat for the combined company at constant currency compared to the prior year. |
• | Reported net revenues increased 80% compared to Legacy-Coty in the prior year and grew 6% for the combined company at constant currency compared to the prior year, driven by positive organic growth in Brazil, the Middle East and Australia, as well as the contribution from seven months of Hypermarcas Brands. |
• | For the three months ended June 30, 2017, the Company reported net revenues of $2,241.3 million, up from $1,075.6 million for Legacy-Coty in the prior-year period, an increase of 5% for the combined company at constant currency in the prior-year period. The 5% combined company constant currency net revenue growth reflected a positive contribution from the acquisitions of ghd and Younique, and a 3% organic decline which included a 1% net benefit from pre-shipments to customers in advance of the Europe TSA exit. |
• | Luxury net revenues grew 61% as reported and 5% organically, supported by strong performance at Hugo Boss, Gucci, Chloe and philosophy brands. Consumer Beauty increased 85% as reported and declined 10% organically, reflecting continued pressure on COVERGIRL, Clairol, and Sally Hansen. Professional Beauty net revenues of $467.3 million increased from $63.6 million in the prior year and increased 3% organically, driven by growth in Wella and System Professional and moderating declines in OPI. |
• | Reported operating loss of $(279.0) million declined from $(2.9) million in the prior-year period, driven primarily by a net increase of $190.2 million in restructuring and acquisition related costs and a $35.6 million net increase in amortization expense. |
• | Adjusted operating income declined 4% to $90.1 million, primarily driven by a higher level of marketing investment to support the momentum in the business as well as a higher fixed cost base. Adjusted operating margin as a percentage of adjusted net revenues decreased to 4.0% compared to 8.8% in the prior-year period. |
• | Reported net loss attributable to Coty Inc. declined to $(304.8) million from a net loss of $(31.0) million, primarily driven by lower reported operating income. |
• | Adjusted net income attributable to Coty Inc. declined to $(3.4) million from $45.7 million in the prior-year period, primarily driven by lower adjusted operating income and higher interest expense. Reported earnings per diluted share declined to $(0.41) from $(0.09) in the prior-year period. Adjusted net earnings per diluted share of $0.00 decreased from $0.13 in the prior-year period. |
• | Net cash provided by operating activities was $50.8 million compared to $56.1 million in the prior-year period. |
• | On May 1, 2017 and July 1, 2017, the Company exited from the Transition Services Agreements in North America and Europe, respectively. As a result, Coty is now in full control of processes, systems and data for all aspects of the Company's expanded businesses in these regions and impacted export countries. |
• | On August 22, 2017 Coty announced a dividend of $0.125, payable on September 14, 2017 to stockholders of record at the close of business on September 1, 2017. |
• | the Company’s ability to achieve its global business strategies, compete effectively in the beauty industry and achieve the benefits contemplated by its recent strategic transactions within the expected time frame or at all; |
• | use of estimates and assumptions in preparing the Company’s financial statements, including with regard to revenue recognition, stock compensation expense, the assessment of goodwill, other intangible assets and long-lived assets for impairment, the market value of inventory, pension expense and the fair value of acquired assets and liabilities associated with acquisitions; |
• | managerial, integration, operational, regulatory, legal and financial, including management of cash flows, and expenses associated with the Company’s strategic transactions and internal reorganizations; |
• | the integration of the P&G Beauty Business with Legacy-Coty business, operations, systems, financial data and culture (including the recent exits and anticipated future exit of the Transition Services Agreement and implementation of the Company’s Global Integration Activities) and the ability to realize synergies, reduce costs and other potential efficiencies and benefits at the levels and at the costs and within the time frames currently contemplated or at all; |
• | the Company’s ability to anticipate, gauge and respond to market trends and consumer preferences, which may change rapidly, and the market acceptance of new products, including any relaunched or rebranded products; |
• | increased competition, consolidation among retailers, shifts in consumers’ preferred distribution channels (including to digital channels) and other changes in the retail, e-commerce and wholesale environment in which the Company does business and sells its products; |
• | changes in law, regulations and policies that affect the Company’s business, operations or its products; |
• | the Company and its brand partners' and licensors' ability to obtain, maintain and protect the intellectual property rights, including trademarks, brand names and other intellectual property used in their respective businesses, products and software, and their abilities to protect their respective reputations and defend claims by third parties for infringement of intellectual property rights; |
• | the Company’s ability to successfully execute its announced intent to divest and/or discontinue non-core brands and to rationalize wholesale distribution by reducing the amount of product diversion to the value and mass channels; |
• | any unanticipated problems, liabilities or other challenges associated with an acquired business which could result in increased risk of new, unanticipated or unknown liabilities, including with respect to environmental, competition and other regulatory matters; |
• | the Company’s international operations and joint ventures, including reputational, compliance, regulatory, economic and foreign political risks, including difficulties and costs associated with maintaining compliance with a broad variety of complex domestic and international regulations; |
• | the Company’s dependence on certain licenses, entities performing outsourced functions and third-party suppliers, including third party software providers; |
• | administrative, development and other difficulties in meeting the expected timing of market expansions, product launches and marketing efforts; |
• | global political and/or economic uncertainties or disruptions, including the impact of Brexit and the new U.S. administration; |
• | the number, type, outcomes (by judgment, order or settlement) and costs of legal, tax, regulatory or administrative proceedings, and/or litigation; |
• | the Company’s ability to manage seasonal and other variability and to anticipate future business trends based on the information available to it under the TSA with respect to the P&G Beauty Business; |
• | disruptions in operations, including due to disruptions or consolidation in supply chain, restructurings, manufacturing rights or information systems, labor disputes and natural disasters; |
• | restrictions imposed on the Company through its license agreements and credit facilities and changes in the manner in which the Company finances its debt and future capital needs, including potential acquisitions; |
• | increasing dependency on information technology and the Company’s ability to protect against service interruptions, data corruption, cyber-based attacks or network security breaches, costs and timing of implementation and effectiveness of any upgrades to information technology systems, inability to control the quality or level of detail of financial data provided by third parties, and its failure to comply with any privacy or data security laws or to protect against theft of customer, employee and corporate sensitive information; |
• | the Company’s ability to attract and retain key personnel, including during times of transition and restructurings; |
• | the distribution and sale by third parties of counterfeit and/or gray market versions of the Company’s products; and |
• | other factors described elsewhere in this document and from time to time in documents that the Company files with the SEC. |
• | Costs related to acquisition activities: The Company excludes acquisition-related costs and acquisition accounting impacts such as those related to transaction costs and costs associated with the revaluation of acquired inventory in connection with business combinations because these costs are unique to each transaction. The nature and amount of such costs vary significantly based on the size and timing of the acquisitions and the maturities of the businesses being acquired. Also, the size, complexity and/or volume of past acquisitions, which often drives the magnitude of such expenses, may not be indicative of the size, complexity and/or volume of any future acquisitions. |
• | Restructuring and other business realignment costs: The Company excludes costs associated with restructuring and business structure realignment programs to allow for comparable financial results to historical operations and forward-looking guidance. In addition, the nature and amount of such charges vary significantly based on the size and timing of the programs. By excluding the above referenced expenses from the non-GAAP financial measures, management is able to evaluate the Company’s ability to utilize existing assets and estimate their long-term value. Furthermore, management believes that the adjustment of these items supplement the GAAP information with a measure that can be used to assess the sustainability of the Company’s operating performance. |
• | Amortization expense: The Company excludes the impact of amortization of finite-lived intangible assets, as such non-cash amounts are inconsistent in amount and frequency and are significantly impacted by the |
• | Asset impairment charges: The Company excludes the impact of asset impairments as such non-cash amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Management believes that the adjustment of these items supplement the GAAP information with a measure that can be used to assess the sustainability of the Company’s operating performance. |
• | Share-based compensation adjustment: The Company excludes the impact of the fiscal 2013 accounting modification from liability plan to equity plan accounting for the share-based compensation plans as well as other share-based compensation transactions that are not reflective of the ongoing and planned pattern of recognition for such expense. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” contained in the respective forms filed with the SEC for a full discussion of the share-based compensation adjustment. |
• | Interest and other (income) expense: The Company excludes foreign currency impacts associated with acquisition-related and debt financing related forward contracts as the nature and amount of such charges are not consistent and are significantly impacted by the timing and size of such transactions. |
• | Loss on early extinguishment of debt: The Company excludes the loss on extinguishment of debt as this represents a non-cash charge, and the amount and frequency of such charges is not consistent and is significantly impacted by the timing and size of debt financing transactions. |
• | Tax: This adjustment represents the impact of the tax effect of the pretax items excluded from Adjusted net income. The tax impact of the non-GAAP adjustments are based on the tax rates related to the jurisdiction in which the adjusted items are received or incurred. |
Year Ended June 30, | Quarter Ended June 30, | |||||||||||||||||||||||
(in millions, except per share data) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Net revenues | $ | 7,650.3 | $ | 4,349.1 | $ | 4,395.2 | $ | 2,241.3 | $ | 1,075.6 | $ | 1,019.5 | ||||||||||||
Cost of sales | 3,028.5 | 1,746.0 | 1,757.0 | 875.3 | 465.6 | 414.1 | ||||||||||||||||||
as % of Net revenues | 39.6 | % | 40.1 | % | 40.0 | % | 39.1 | % | 43.3 | % | 40.6 | % | ||||||||||||
Gross profit | 4,621.8 | 2,603.1 | 2,638.2 | 1,366.0 | 610.0 | 605.4 | ||||||||||||||||||
Gross margin | 60.4 | % | 59.9 | % | 60.0 | % | 60.9 | % | 56.7 | % | 59.4 | % | ||||||||||||
Selling, general and administrative expenses | 4,060.0 | 2,027.8 | 2,066.1 | 1,315.4 | 533.9 | 558.4 | ||||||||||||||||||
as % of Net revenues | 53.1 | % | 46.6 | % | 47.0 | % | 58.7 | % | 49.6 | % | 54.8 | % | ||||||||||||
Amortization expense | 275.1 | 79.5 | 74.7 | 56.1 | 20.5 | 19.2 | ||||||||||||||||||
Restructuring costs | 372.2 | 86.9 | 75.4 | 193.2 | 7.6 | 19.0 | ||||||||||||||||||
Acquisition-related costs | 355.4 | 174.0 | 34.1 | 80.3 | 75.7 | 32.2 | ||||||||||||||||||
Asset impairment charges | — | 5.5 | — | — | — | — | ||||||||||||||||||
Gain on sale of asset | (3.1 | ) | (24.8 | ) | (7.2 | ) | — | (24.8 | ) | — | ||||||||||||||
Operating (loss) income | (437.8 | ) | 254.2 | 395.1 | (279.0 | ) | (2.9 | ) | (23.4 | ) | ||||||||||||||
as % of Net revenues | (5.7 | %) | 5.8 | % | 9.0 | % | (12.4 | %) | (0.3 | %) | (2.3 | %) | ||||||||||||
Interest expense, net | 218.6 | 81.9 | 73.0 | 59.5 | 26.2 | 16.7 | ||||||||||||||||||
Loss on extinguishment of debt | — | 3.1 | 88.8 | — | — | — | ||||||||||||||||||
Other expense | 1.6 | 30.4 | — | 1.4 | — | 0.2 | ||||||||||||||||||
(Loss) income before income taxes | (658.0 | ) | 138.8 | 233.3 | (339.9 | ) | (29.1 | ) | (40.3 | ) | ||||||||||||||
as % of Net revenues | (8.6 | %) | 3.2 | % | 5.3 | % | (15.2 | %) | (2.7 | %) | (4.0 | %) | ||||||||||||
(Benefit) provision for income taxes | (259.5 | ) | (40.4 | ) | (26.1 | ) | (38.9 | ) | 2.1 | (65.9 | ) | |||||||||||||
Net (loss) income | (398.5 | ) | 179.2 | 259.4 | (301.0 | ) | (31.2 | ) | 25.6 | |||||||||||||||
as % of Net revenues | (5.2 | %) | 4.1 | % | 5.9 | % | (13.4 | %) | (2.9 | %) | 2.5 | % | ||||||||||||
Net income (loss) attributable to noncontrolling interests | 15.4 | 7.6 | 15.1 | 1.2 | (4.5 | ) | 1.1 | |||||||||||||||||
Net income attributable to redeemable noncontrolling interests | 8.3 | 14.7 | 11.8 | 2.6 | 4.3 | 3.5 | ||||||||||||||||||
Net (loss) income attributable to Coty Inc. | $ | (422.2 | ) | $ | 156.9 | $ | 232.5 | $ | (304.8 | ) | $ | (31.0 | ) | $ | 21.0 | |||||||||
as % of Net revenues | (5.5 | %) | 3.6 | % | 5.3 | % | (13.6 | %) | (2.9 | %) | 2.1 | % | ||||||||||||
Net (loss) income attributable to Coty Inc. per common share: | ||||||||||||||||||||||||
Basic | $ | (0.66 | ) | $ | 0.45 | $ | 0.66 | $ | (0.41 | ) | $ | (0.09 | ) | $ | 0.06 | |||||||||
Diluted | $ | (0.66 | ) | $ | 0.44 | $ | 0.64 | $ | (0.41 | ) | $ | (0.09 | ) | $ | 0.05 | |||||||||
Weighted-average common shares outstanding: | ||||||||||||||||||||||||
Basic | 642.8 | 345.5 | 353.3 | 747.7 | 338.8 | 360.4 | ||||||||||||||||||
Diluted | 642.8 | 354.2 | 362.9 | 747.7 | 338.8 | 369.4 |
Year Ended June 30, 2017 | ||||||||||||||||||||
(in millions) | Reported (GAAP) | Adjustments(a) | Adjusted (Non-GAAP) | Foreign Currency Translation | Adjusted Results at Constant Currency | |||||||||||||||
Net revenues | $ | 7,650.3 | $ | — | $ | 7,650.3 | $ | 117.4 | $ | 7,767.7 | ||||||||||
Gross profit | 4,621.8 | 151.9 | 4,773.7 | 109.6 | 4,883.3 | |||||||||||||||
Gross margin | 60.4 | % | 62.4 | % | 62.9 | % | ||||||||||||||
Operating (loss) income | (437.8 | ) | 1,210.6 | 772.8 | 35.5 | 808.3 | ||||||||||||||
as % of Net revenues | (5.7 | %) | 10.1 | % | 10.4 | % | ||||||||||||||
Net (loss) income attributable to Coty Inc. | $ | (422.2 | ) | $ | 830.7 | $ | 408.5 | |||||||||||||
as % of Net revenues | (5.5 | %) | 5.3 | % | ||||||||||||||||
EPS (diluted) | $ | (0.66 | ) | $ | 0.63 | |||||||||||||||
Year Ended June 30, 2016 | ||||||||||||||||||||
(in millions) | Reported (GAAP) | Adjustments(a) | Adjusted (Non-GAAP) | |||||||||||||||||
Net revenues | $ | 4,349.1 | $ | — | $ | 4,349.1 | ||||||||||||||
Gross profit | 2,603.1 | 21.6 | 2,624.7 | |||||||||||||||||
Gross margin | 59.9 | % | 60.4 | % | ||||||||||||||||
Operating income | 254.2 | 368.7 | 622.9 | |||||||||||||||||
as % of Net revenues | 5.8 | % | 14.3 | % | ||||||||||||||||
Net income attributable to Coty Inc. | $ | 156.9 | $ | 328.3 | $ | 485.2 | ||||||||||||||
as % of Net revenues | 3.6 | % | 11.2 | % | ||||||||||||||||
EPS (diluted) | $ | 0.44 | $ | 1.37 |
Three Months Ended June 30, 2017 | ||||||||||||||||||||
(in millions) | Reported (GAAP) | Adjustments(a) | Adjusted (Non-GAAP) | Foreign Currency Translation | Adjusted Results at Constant Currency | |||||||||||||||
Net revenues | $ | 2,241.3 | $ | — | $ | 2,241.3 | $ | 31.2 | $ | 2,272.5 | ||||||||||
Gross profit | 1,366.0 | 25.0 | 1,391.0 | 27.9 | 1,418.9 | |||||||||||||||
Gross margin | 60.9 | % | 62.1 | % | 62.4 | % | ||||||||||||||
Operating (loss) income | (279.0 | ) | 369.1 | 90.1 | (4.7 | ) | 85.4 | |||||||||||||
as % of Net revenues | (12.4 | %) | 4.0 | % | 3.8 | % | ||||||||||||||
Net (loss) income attributable to Coty Inc. | $ | (304.8 | ) | $ | 301.4 | $ | (3.4 | ) | ||||||||||||
as % of Net revenues | (13.6 | %) | (0.2 | %) | ||||||||||||||||
EPS (diluted) | $ | (0.41 | ) | $ | — | |||||||||||||||
Three Months Ended June 30, 2016 | ||||||||||||||||||||
(in millions) | Reported (GAAP) | Adjustments(a) | Adjusted (Non-GAAP) | |||||||||||||||||
Net revenues | $ | 1,075.6 | $ | — | $ | 1,075.6 | ||||||||||||||
Gross profit | 610.0 | 12.7 | 622.7 | |||||||||||||||||
Gross margin | 56.7 | % | 57.9 | % | ||||||||||||||||
Operating (loss) income | (2.9 | ) | 97.1 | 94.2 | ||||||||||||||||
as % of Net revenues | (0.3 | %) | 8.8 | % | ||||||||||||||||
Net income attributable to Coty Inc. | $ | (31.0 | ) | $ | 76.7 | $ | 45.7 | |||||||||||||
as % of Net revenues | (2.9 | %) | 4.2 | % | ||||||||||||||||
EPS (diluted) | $ | (0.09 | ) | $ | 0.13 |
Three Months Ended June 30, | Year Ended June 30, | |||||||||||||||||||||
(in millions) | 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||
Reported Operating (Loss) Income | $ | (279.0 | ) | $ | (2.9 | ) | NM | $ | (437.8 | ) | $ | 254.2 | NM | |||||||||
% of Net revenues | (12.4 | %) | (0.3 | %) | (5.7 | %) | 5.8 | % | ||||||||||||||
Costs related to acquisition activities (a) | 99.2 | 90.2 | 10 | % | 494.9 | 197.5 | >100% | |||||||||||||||
Amortization expense (b) | 56.1 | 20.5 | >100% | 275.1 | 79.5 | >100% | ||||||||||||||||
Restructuring and other business realignment costs (c) | 212.2 | 11.2 | >100% | 426.2 | 109.7 | >100% | ||||||||||||||||
Pension Settlement (d) | 1.6 | — | 100 | % | 17.5 | — | 100 | % | ||||||||||||||
Asset impairment charges (e) | — | — | N/A | — | 5.5 | (100 | %) | |||||||||||||||
Share-based compensation expense adjustment (f) | — | — | N/A | — | 1.3 | (100 | %) | |||||||||||||||
Gain on sale of asset | — | (24.8 | ) | (100 | %) | (3.1 | ) | (24.8 | ) | 88 | % | |||||||||||
Total adjustments to Reported Operating (Loss) Income | 369.1 | 97.1 | >100% | 1,210.6 | 368.7 | >100% | ||||||||||||||||
Adjusted Operating Income | $ | 90.1 | $ | 94.2 | (4 | %) | $ | 772.8 | $ | 622.9 | 24 | % | ||||||||||
% of Net revenues | 4.0 | % | 8.8 | % | 10.1 | % | 14.3 | % |
Three Months Ended June 30, 2017 | Three Months Ended June 30, 2016 | |||||||||||||||||||||
(in millions) | (Loss) Income Before Income Taxes | Provision for Taxes | Effective Tax Rate | (Loss) Income Before Income Taxes | Provision (Benefit) for Taxes | Effective Tax Rate | ||||||||||||||||
Reported (Loss) Before Taxes | $ | (339.9 | ) | $ | (38.9 | ) | 11.4 | % | $ | (29.1 | ) | $ | 2.1 | (7.2 | )% | |||||||
Adjustments to Reported Operating (Loss) (a)(b) | 369.1 | 42.0 | 97.1 | 5.2 | ||||||||||||||||||
Other Adjustments (b) (c) | — | (0.2 | ) | (10.8 | ) | 4.4 | ||||||||||||||||
Adjusted Income Before Taxes | $ | 29.2 | $ | 2.9 | 9.9 | % | $ | 57.2 | $ | 11.7 | 20.5 | % |
Year Ended June 30, 2017 | Year Ended June 30, 2016 | |||||||||||||||||||||
(in millions) | (Loss)Income Before Income Taxes | (Benefit) Provision for Taxes | Effective Tax Rate | Income Before Income Taxes | (Benefit) Provision for Taxes | Effective Tax Rate | ||||||||||||||||
Reported Income Before Taxes | $ | (658.0 | ) | $ | (259.5 | ) | 39.4 | % | $ | 138.8 | $ | (40.4 | ) | (29.1 | %) | |||||||
Adjustments to Reported Operating Income (a) (b) | 1,210.6 | 355.0 | 368.7 | 50.7 | ||||||||||||||||||
Other Adjustments (b) (c) | 1.4 | 0.4 | 9.6 | (0.7) | ||||||||||||||||||
Adjusted Income Before Taxes | $ | 554.0 | $ | 95.9 | 17.3 | % | $ | 517.1 | $ | 9.6 | 1.9 | % |
(a) | See "Reconciliation of Operating Income to Adjusted Operating Income" |
(b) | The tax effects of each of the items included in adjusted income are calculated in a manner that results in a corresponding income tax expense/provision for adjusted income. In preparing the calculation, each adjustment to reported income is first analyzed to determine if the adjustment has an income tax consequence. The provision for taxes is then calculated based on the jurisdiction in which the adjusted items are incurred, multiplied by the respective statutory rates and offset by the increase or reversal of any valuation allowances commensurate with the non-GAAP measure of profitability. |
Three Months Ended June 30, | Year Ended June 30, | |||||||||||||||||||||
(in millions) | 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||
Reported Net (Loss) Income Attributable to Coty Inc. | $ | (304.8 | ) | $ | (31.0 | ) | NM | $ | (422.2 | ) | $ | 156.9 | NM | |||||||||
% of Net revenues | (13.6 | %) | (2.9 | %) | (5.5 | %) | 3.6 | % | ||||||||||||||
Adjustments to Reported Operating (Loss) Income (a) | 369.1 | 97.1 | >100% | 1,210.6 | 368.7 | >100% | ||||||||||||||||
Adjustments to interest expense (b) | — | (10.8 | ) | 100 | % | 1.4 | (23.9 | ) | >100% | |||||||||||||
Loss on early extinguishment of debt (c) | — | — | N/A | — | 3.1 | (100 | %) | |||||||||||||||
Adjustments to other expense (d) | — | — | N/A | — | 30.4 | (100 | %) | |||||||||||||||
Adjustments to noncontrolling interest expense (e) | (25.9 | ) | — | (100 | %) | (25.9 | ) | — | (100 | %) | ||||||||||||
Change in tax provision due to adjustments to Reported Net Income (Loss) Attributable to Coty Inc. | (41.8 | ) | (9.6 | ) | NM | (355.4 | ) | (50.0 | ) | NM | ||||||||||||
Adjusted Net Income Attributable to Coty Inc. | $ | (3.4 | ) | $ | 45.7 | NM | $ | 408.5 | $ | 485.2 | (16 | %) | ||||||||||
% of Net revenues | (0.2 | %) | 4.2 | % | 5.3 | % | 11.2 | % | ||||||||||||||
Per Share Data | ||||||||||||||||||||||
Adjusted weighted-average common shares | ||||||||||||||||||||||
Basic | 747.7 | 338.8 | 642.8 | 345.5 | ||||||||||||||||||
Diluted | 747.7 | 338.8 | 647.8 | 354.2 | ||||||||||||||||||
Adjusted Net Income Attributable to Coty Inc. per Common Share | ||||||||||||||||||||||
Basic | $ | — | $ | 0.14 | $ | 0.64 | $ | 1.40 | ||||||||||||||
Diluted | $ | — | $ | 0.13 | $ | 0.63 | $ | 1.37 |
(b) | The amount in the fiscal year June 30, 2017 represents a net loss of $1.4 incurred in connection with the acquisition of the Hypermarcas Brands and subsequent intercompany loans, included in Interest expense, net in the Consolidated Statements of Operations. |
Year Ended June 30, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
Net cash provided by operating activities | $ | 757.5 | $ | 501.4 | $ | 526.3 | ||||||
Capital expenditures | (432.3 | ) | (150.1 | ) | (170.9 | ) | ||||||
Additions of goodwill | — | — | (30.0 | ) | ||||||||
Free cash flow | $ | 325.2 | $ | 351.3 | $ | 325.4 |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||
Net Revenues | Change | Reported Operating Income (Loss) | Adjusted Operating Income (Loss) | ||||||||||||||||||||||||||||
(in millions) | 2017 | 2016 | Actual Year- Over- Year | Combined Company Year-Over-Year | Combined Company Constant Currency | 2017 | Change | 2017 | Change | ||||||||||||||||||||||
Luxury | $ | 648.0 | $ | 403.2 | 61 | % | 3 | % | 5 | % | $ | (43.8 | ) | NM | $ | 10.0 | (66 | )% | |||||||||||||
Consumer Beauty | 1,126.0 | 608.8 | 85 | % | 1 | % | 1 | % | 80.9 | 94 | % | 64.9 | 37 | % | |||||||||||||||||
Professional | 467.3 | 63.6 | >100% | 13 | % | 16 | % | (3.1 | ) | NM | 15.2 | (14 | )% | ||||||||||||||||||
Corporate | — | — | N/A | N/A | N/A | (313.0 | ) | NM | — | N/A | |||||||||||||||||||||
Total | $ | 2,241.3 | $ | 1,075.6 | >100% | 4 | % | 5 | % | $ | (279.0 | ) | NM | $ | 90.1 | (4 | )% | ||||||||||||||
Year Ended June 30, | |||||||||||||||||||||||||||||||
Net Revenues | Change | Reported Operating Income (Loss) | Adjusted Operating Income (Loss) | ||||||||||||||||||||||||||||
(in millions) | 2017 | 2016 | Actual Year- Over- Year | Combined Company Year-Over-Year | Combined Company Constant Currency | 2017 | Change | 2017 | Change | ||||||||||||||||||||||
Luxury | $ | 2,566.6 | $ | 1,836.6 | 40 | % | (3 | %) | (1 | %) | $ | 158.0 | (31 | )% | $ | 283.0 | 1 | % | |||||||||||||
Consumer Beauty | 3,688.2 | 2,262.5 | 63 | % | (3 | %) | (2 | %) | 261.2 | 6 | % | 355.7 | 33 | % | |||||||||||||||||
Professional | 1,395.5 | 250.0 | >100% | 8 | % | 10 | % | 78.5 | 15 | % | 134.1 | 75 | % | ||||||||||||||||||
Corporate | — | — | N/A | N/A | N/A | (935.5 | ) | NM | — | N/A | |||||||||||||||||||||
Total | $ | 7,650.3 | $ | 4,349.1 | 76 | % | (1 | %) | 1 | % | $ | (437.8 | ) | NM | $ | 772.8 | 24 | % |
Three Months Ended June 30, | |||||||||||||||||
Net Revenues | Change | ||||||||||||||||
(in millions) | 2017 | 2016 | Reported Basis | Combined Company Year-Over-Year | Combined Company Constant Currency | ||||||||||||
North America | $ | 779.5 | $ | 340.2 | >100% | 9 | % | 9 | % | ||||||||
Europe | 896.3 | 429.8 | >100% | (2 | %) | 1 | % | ||||||||||
ALMEA | 565.5 | 305.6 | 85 | % | 7 | % | 6 | % | |||||||||
Total | $ | 2,241.3 | $ | 1,075.6 | >100% | 4 | % | 5 | % | ||||||||
Year Ended June 30, | |||||||||||||||||
Net Revenues | Change | ||||||||||||||||
(in millions) | 2017 | 2016 | Reported Basis | Combined Company Year-Over-Year | Combined Company Constant Currency | ||||||||||||
North America | $ | 2,506.9 | $ | 1,413.0 | 77 | % | (2 | %) | (2 | %) | |||||||
Europe | 3,325.7 | 1,924.6 | 73 | % | (5 | %) | 0 | % | |||||||||
ALMEA | 1,817.7 | 1,011.5 | 80 | % | 8 | % | 6 | % | |||||||||
Total | $ | 7,650.3 | $ | 4,349.1 | 76 | % | (1 | %) | 1 | % |
Three Months Ended June 30, 2017 | ||||||||||||||||||||
(in millions) | Reported (GAAP) | Adjustments (a) | Adjusted (Non-GAAP) | Foreign Currency Translation | Adjusted Results at Constant Currency | |||||||||||||||
OPERATING INCOME (LOSS) | ||||||||||||||||||||
Luxury | $ | (43.8 | ) | $ | (53.8 | ) | $ | 10.0 | $ | (3.2 | ) | $ | 6.8 | |||||||
Consumer Beauty | 80.9 | 16.0 | 64.9 | (1.9 | ) | 63.0 | ||||||||||||||
Professional | (3.1 | ) | (18.3 | ) | 15.2 | 0.4 | 15.6 | |||||||||||||
Corporate | (313.0 | ) | (313.0 | ) | — | — | — | |||||||||||||
Total | $ | (279.0 | ) | $ | (369.1 | ) | $ | 90.1 | $ | (4.7 | ) | $ | 85.4 | |||||||
OPERATING MARGIN | ||||||||||||||||||||
Luxury | (6.8 | %) | 1.5 | % | 1.0 | % | ||||||||||||||
Consumer Beauty | 7.2 | % | 5.8 | % | 5.6 | % | ||||||||||||||
Professional | (0.7 | %) | 3.3 | % | 3.3 | % | ||||||||||||||
Corporate | N/A | N/A | N/A | |||||||||||||||||
Total | (12.4 | %) | 4.0 | % | 3.8 | % | ||||||||||||||
Three Months Ended June 30, 2016 | ||||||||||||||||||||
(in millions) | Reported (GAAP) | Adjustments (a) | Adjusted (Non-GAAP) | |||||||||||||||||
OPERATING INCOME (LOSS) | ||||||||||||||||||||
Luxury | $ | 16.8 | $ | (12.3 | ) | $ | 29.1 | |||||||||||||
Consumer Beauty | 41.4 | (6.0 | ) | 47.4 | ||||||||||||||||
Professional | 15.5 | (2.2 | ) | 17.7 | ||||||||||||||||
Corporate | (76.6 | ) | (76.6 | ) | — | |||||||||||||||
Total | $ | (2.9 | ) | $ | (97.1 | ) | $ | 94.2 | ||||||||||||
OPERATING MARGIN | ||||||||||||||||||||
Luxury | 4.2 | % | 7.2 | % | ||||||||||||||||
Consumer Beauty | 6.8 | % | 7.8 | % | ||||||||||||||||
Professional | 24.4 | % | 27.8 | % | ||||||||||||||||
Corporate | N/A | N/A | ||||||||||||||||||
Total | (0.3 | %) | 8.8 | % |
Year Ended June 30, 2017 | ||||||||||||||||||||
(in millions) | Reported (GAAP) | Adjustments (a) | Adjusted (Non-GAAP) | Foreign Currency Translation | Adjusted Results at Constant Currency | |||||||||||||||
OPERATING INCOME (LOSS) | ||||||||||||||||||||
Luxury | $ | 158.0 | $ | (125.0 | ) | $ | 283.0 | $ | 15.1 | $ | 298.1 | |||||||||
Consumer Beauty | 261.2 | (94.5 | ) | 355.7 | 10.9 | 366.6 | ||||||||||||||
Professional | 78.5 | (55.6 | ) | 134.1 | 9.5 | 143.6 | ||||||||||||||
Corporate | (935.5 | ) | (935.5 | ) | — | — | — | |||||||||||||
Total | $ | (437.8 | ) | $ | (1,210.6 | ) | $ | 772.8 | $ | 35.5 | $ | 808.3 | ||||||||
OPERATING MARGIN | ||||||||||||||||||||
Luxury | 6.2 | % | 11.0 | % | 11.4 | % | ||||||||||||||
Consumer Beauty | 7.1 | % | 9.6 | % | 9.9 | % | ||||||||||||||
Professional | 5.6 | % | 9.6 | % | 10.0 | % | ||||||||||||||
Corporate | N/A | N/A | N/A | |||||||||||||||||
Total | (5.7 | %) | 10.1 | % | 10.4 | % | ||||||||||||||
Year Ended June 30, 2016 | ||||||||||||||||||||
(in millions) | Reported (GAAP) | Adjustments (a) | Adjusted (Non-GAAP) | |||||||||||||||||
OPERATING INCOME (LOSS) | ||||||||||||||||||||
Luxury | $ | 228.9 | $ | (50.5 | ) | $ | 279.4 | |||||||||||||
Consumer Beauty | 246.5 | (20.5 | ) | 267.0 | ||||||||||||||||
Professional | 68.0 | (8.5 | ) | 76.5 | ||||||||||||||||
Corporate | (289.2 | ) | (289.2 | ) | — | |||||||||||||||
Total | $ | 254.2 | $ | (368.7 | ) | $ | 622.9 | |||||||||||||
OPERATING MARGIN | ||||||||||||||||||||
Luxury | 12.5 | % | 15.2 | % | ||||||||||||||||
Consumer Beauty | 10.9 | % | 11.8 | % | ||||||||||||||||
Professional | 27.2 | % | 30.6 | % | ||||||||||||||||
Corporate | N/A | N/A | ||||||||||||||||||
Total | 5.8 | % | 14.3 | % |
4Q FY17 (Three Months Ended June 30, 2017) Net Revenue Change YoY | |||||||||||||||||
of which | |||||||||||||||||
Net Revenues Change YoY | Reported Basis vs Legacy Coty | Combined Company Reported 1 | Combined Company Reported at Constant Currency | Impact from Acquisitions 2 | Combined Company Organic (LFL) | ||||||||||||
Luxury | 61 | % | 3 | % | 5 | % | — | % | 5 | % | |||||||
Consumer Beauty | 85 | % | 1 | % | 1 | % | 11 | % | (10 | )% | |||||||
Professional Beauty | >100% | 13 | % | 16 | % | 13 | % | 3 | % | ||||||||
Total Company | >100% | 4 | % | 5 | % | 8 | % | (3 | )% |
FY17 (Year Ended June 30, 2017) Net Revenue Change YoY | |||||||||||||||||
of which | |||||||||||||||||
Net Revenues Change YoY | Reported Basis vs Legacy Coty | Combined Company Reported 1 | Combined Company Reported at Constant Currency | Impact from Acquisitions 2 | Combined Company Organic (LFL) | ||||||||||||
Luxury | 40 | % | (3 | )% | (1 | )% | — | % | (1 | )% | |||||||
Consumer Beauty | 63 | % | (3 | )% | (2 | )% | 8 | % | (10 | )% | |||||||
Professional Beauty | >100% | 8 | % | 10 | % | 10 | % | — | % | ||||||||
Total Company | 76 | % | (1 | )% | 1 | % | 6 | % | (5 | )% |
Year Ended June 30, | ||||||||
(in millions) | 2017 | 2016 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 535.4 | $ | 372.4 | ||||
Restricted cash | 35.3 | — | ||||||
Trade receivables—less allowances of $58.5 and $35.2, respectively | 1,470.3 | 682.9 | ||||||
Inventories | 1,052.6 | 565.8 | ||||||
Prepaid expenses and other current assets | 487.9 | 206.8 | ||||||
Deferred income taxes | — | 110.5 | ||||||
Total current assets | 3,581.5 | 1,938.4 | ||||||
Property and equipment, net | 1,632.1 | 638.6 | ||||||
Goodwill | 8,555.5 | 2,212.7 | ||||||
Other intangible assets, net | 8,425.2 | 2,050.1 | ||||||
Deferred income taxes | 72.6 | 15.7 | ||||||
Other noncurrent assets | 281.3 | 180.1 | ||||||
TOTAL ASSETS | $ | 22,548.2 | $ | 7,035.6 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,732.1 | $ | 921.4 | ||||
Accrued expenses and other current liabilities | 1,796.4 | 748.4 | ||||||
Short-term debt and current portion of long-term debt | 209.1 | 161.8 | ||||||
Income and other taxes payable | 66.0 | 18.7 | ||||||
Deferred income taxes | — | 4.9 | ||||||
Total current liabilities | 3,803.6 | 1,855.2 | ||||||
Long-term debt, net | 6,928.3 | 3,936.4 | ||||||
Pension and other post-employment benefits | 549.2 | 230.6 | ||||||
Deferred income taxes | 924.9 | 339.2 | ||||||
Other noncurrent liabilities | 473.4 | 233.8 | ||||||
Total liabilities | 12,679.4 | 6,595.2 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 24) | ||||||||
REDEEMABLE NONCONTROLLING INTERESTS | 551.1 | 73.3 | ||||||
EQUITY: | ||||||||
Preferred Stock | — | — | ||||||
Class A Common Stock | 8.1 | 1.4 | ||||||
Class B Common Stock | — | 2.6 | ||||||
Additional paid-in capital | 11,203.2 | 2,038.4 | ||||||
Accumulated deficit | (459.2 | ) | (37.0 | ) | ||||
Accumulated other comprehensive income (loss) | 4.4 | (239.7 | ) | |||||
Treasury stock | (1,441.8 | ) | (1,405.5 | ) | ||||
Total Coty Inc. stockholders’ equity | 9,314.7 | 360.2 | ||||||
Noncontrolling interests | 3.0 | 6.9 | ||||||
Total equity | 9,317.7 | 367.1 | ||||||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | $ | 22,548.2 | $ | 7,035.6 |
Year Ended June 30, | |||||||||||
2017 | 2016 | 2015 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net (loss) income | $ | (398.5 | ) | $ | 179.2 | $ | 259.4 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 555.1 | 232.0 | 230.9 | ||||||||
Asset impairment charges | — | 5.5 | — | ||||||||
Deferred income taxes | (390.0 | ) | (139.2 | ) | (87.2 | ) | |||||
Provision for bad debts | 23.4 | 21.9 | 4.5 | ||||||||
Provision for pension and other post-employment benefits | 53.6 | 9.2 | 16.2 | ||||||||
Share-based compensation | 24.6 | 22.2 | 30.6 | ||||||||
Gain on sale of assets | (3.1 | ) | (24.8 | ) | (7.2 | ) | |||||
Loss on extinguishment of debt | — | 3.1 | 88.8 | ||||||||
Other | 25.9 | 12.8 | 20.5 | ||||||||
Change in operating assets and liabilities, net of effects from purchase of acquired companies: | |||||||||||
Trade receivables | (279.8 | ) | (44.5 | ) | (43.5 | ) | |||||
Inventories | 162.3 | 27.2 | 29.4 | ||||||||
Prepaid expenses and other current assets | (105.7 | ) | 6.7 | 6.0 | |||||||
Accounts payable | 540.9 | 148.2 | 7.0 | ||||||||
Accrued expenses and other current liabilities | 479.2 | 23.3 | 16.1 | ||||||||
Income and other taxes payable | 85.0 | 15.7 | 127.7 | ||||||||
Other noncurrent assets | 23.4 | 9.0 | (136.7 | ) | |||||||
Other noncurrent liabilities | (38.8 | ) | (6.1 | ) | (36.2 | ) | |||||
Net cash provided by operating activities | 757.5 | 501.4 | 526.3 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Capital expenditures | (432.3 | ) | (150.1 | ) | (170.9 | ) | |||||
Payments for business combinations, net of cash acquired | (742.6 | ) | (908.7 | ) | 11.7 | ||||||
Additions of goodwill | — | — | (30.0 | ) | |||||||
Proceeds from sale of assets | 11.3 | 29.2 | 14.8 | ||||||||
Payments related to loss on foreign currency contracts | — | (29.6 | ) | — | |||||||
Other | — | — | 3.2 | ||||||||
Net cash used in investing activities | (1,163.6 | ) | (1,059.2 | ) | (171.2 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from short-term debt, original maturity more than three months | 9.5 | 19.1 | 652.2 | ||||||||
Repayments of short-term debt, original maturity more than three months | (10.2 | ) | (28.3 | ) | (655.0 | ) | |||||
Net (repayments of) proceeds from short-term debt, original maturity less than three months | (49.2 | ) | 25.4 | 11.6 | |||||||
Proceeds from revolving loan facilities | 2,244.4 | 1,940.0 | 853.0 | ||||||||
Repayments of revolving loan facilities | (2,074.4 | ) | (1,430.0 | ) | (1,616.0 | ) | |||||
Proceeds from term loans and other long term debt | 1,075.0 | 3,506.2 | 800.9 | ||||||||
Repayments of term loans and other long term debt | (136.1 | ) | (2,499.4 | ) | (784.6 | ) | |||||
Dividend payment | (372.6 | ) | (89.0 | ) | (71.0 | ) | |||||
Net proceeds from issuance of Class A Common Stock and Series A Preferred Stock and related tax benefits | 22.8 | 44.7 | 48.5 | ||||||||
Net proceeds from issuance of Class A Common Stock to former CEO | — | — | 12.5 | ||||||||
Purchase of Class A Common Stock from former CEO | — | — | (42.0 | ) | |||||||
Payments for purchases of Class A Common Stock held as Treasury Stock | (36.3 | ) | (794.9 | ) | (263.1 | ) | |||||
Net payments for foreign currency contracts | (1.2 | ) | (9.7 | ) | (37.9 | ) | |||||
Payment for business combinations – contingent consideration | — | — | (0.8 | ) | |||||||
Proceeds from mandatorily redeemable noncontrolling interests and noncontrolling interests | — | — | 1.8 | ||||||||
Distributions to mandatorily redeemable noncontrolling interests, redeemable noncontrolling interests and noncontrolling interests | (42.3 | ) | (33.2 | ) | (21.3 | ) | |||||
Purchase of additional mandatorily redeemable noncontrolling interests, redeemable noncontrolling interests and noncontrolling interests | (9.8 | ) | (0.7 | ) | (15.8 | ) | |||||
Payment of deferred financing fees | (24.4 | ) | (57.6 | ) | (11.2 | ) | |||||
Net cash provided by (used in) financing activities | 595.2 | 592.6 | (1,138.2 | ) | |||||||
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 9.2 | (3.7 | ) | (113.6 | ) | ||||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 198.3 | 31.1 | (896.7 | ) | |||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 372.4 | 341.3 | 1,238.0 | ||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period | 570.7 | 372.4 | 341.3 | ||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | |||||||||||
Cash paid during the year for interest | 190.2 | 90.3 | 64.7 | ||||||||
Cash paid during the year for income taxes, net of refunds received | 90.1 | 118.1 | 104.8 |
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES: | |||||||||||
Accrued capital expenditure additions | 106.7 | 78.0 | 41.2 | ||||||||
Non-cash stock issued for business combination | 9,628.6 | — | 376.8 | ||||||||
Non-cash debt assumed for business combination | 1,943.0 | — | — | ||||||||
Non-cash capital contribution associated with special share purchase transaction | — | 13.8 | — | ||||||||
Non-cash acquisition of additional redeemable noncontrolling interests | 415.9 | 10.1 | — | ||||||||
Non-cash reclassification from noncontrolling interest to mandatorily redeemable financial interest | 49.9 | — | — |