GOODWILL AND OTHER INTANGIBLE ASSETS, NET

Goodwill

The Company tests goodwill and indefinite lived intangible assets for impairment at least annually as of May 1, or more frequently, if certain events or circumstances warrant. There were no impairments of goodwill at the Company’s reporting units in fiscal 2017 and 2016.

Goodwill as of June 30, 2017, 2016 and 2015 is presented below:



	Luxury			Consumer Beauty			Professional Beauty			Total
Gross balance at June 30, 2015	$	1,092.7		$	848.1		$	230.7		$	2,171.5
Accumulated impairments	(403.7		)	(237.1		)	—			(640.8		)
Net balance at June 30, 2015	$	689.0		$	611.0		$	230.7		$	1,530.7

Changes during the year ended June 30, 2016
Acquisitions^(a)	167.6			306.7			36.2			510.5
Measurement period adjustments	—			56.9			—			56.9
Foreign currency translation	34.2			79.3			5.3			118.8
Dispositions	—			(2.8		)	(1.4		)	(4.2		)

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 year ended June 30, 2017
Acquisitions^(b)	1,866.1			3,285.2			665.5			5,816.8
Measurement period adjustments^(c)	308.0			124.7			12.0			444.7
Foreign currency translation	28.2			36.3			19.2			83.7
Dispositions	—			(2.4		)	—			(2.4		)

Gross balance at June 30, 2017	$	3,496.8		$	4,732.0		$	967.5		$	9,196.3
Accumulated impairments	(403.7		)	(237.1		)	—			(640.8		)
Net balance at June 30, 2017	$	3,093.1		$	4,494.9		$	967.5		$	8,555.5

^(a) Includes goodwill resulting from the Hypermarcas Brands during the year ended June 30, 2016 (Refer to Note 3—Business Combinations). Additionally, the Company acquired 100% of the issued share capital of Beamly Limited for a purchase price of $17.9 in a transaction accounted for as a business combination, which resulted in the recognition of $13.7 of goodwill.

^(b) Includes goodwill resulting from the P&G Beauty Business, ghd and Younique acquisitions during the year ended June 30, 2017 (Refer to Note 3—Business Combinations).

^(c) Includes measurement period adjustments in connection with the Hypermarcas Brands, P&G Beauty Business, ghd and Younique acquisitions (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 recasted the goodwill and indefinite-lived intangible asset tables for the new segments.

During fiscal 2017, the Company sold assets related to one of its fragrance brands for a total disposal price of $10.5. The Company allocated $2.4 of goodwill to the brand as part of the sale. During fiscal 2016, the Company sold assets relating to the Cutex brand for a total disposal price of $29.2. The Company allocated $4.2 of goodwill to the brand as part of the sale. The Company recorded gains of $3.1 and $24.8, which are reflected in Gain on sale of assets in the Consolidated Statements of Operations for the fiscal years ended June 30, 2017 and 2016, respectively.

Other Intangible Assets, net

Other intangible assets, net as of June 30, 2017 and 2016 are presented below:



	June 30, 2017		June 30, 2016
Indefinite-lived other intangible assets	$	3,186.9	$	1,417.0
Finite-lived other intangible assets, net	5,238.3		633.1
Total Other intangible assets, net	$	8,425.2	$	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, 2015	404.8			403.9			663.1			1,471.8
Accumulated impairments	(118.8		)	(75.9		)	(3.1		)	(197.8		)
Net balance at June 30, 2015	286.0			328.0			660.0			1,274.0

Changes during the year ended June 30, 2016
Acquisitions	—			157.1			—			157.1
Measurement period adjustments	—			(10.0		)	—			(10.0		)
Foreign currency translation	(3.6		)	0.5			(1.0		)	(4.1		)

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 year ended June 30, 2017
Acquisitions ^(a)	—			1,390.0			663.8			2,053.8
Measurement period adjustments^(b)	—			(255.0		)	(60.0		)	(315.0		)
Foreign currency translation	8.6			9.9			12.6			31.1

Gross balance at June 30, 2017	409.8			1,696.4			1,278.5			3,384.7
Accumulated impairments	(118.8		)	(75.9		)	(3.1		)	(197.8		)
Net balance at June 30, 2017	$	291.0		$	1,620.5		$	1,275.4		$	3,186.9

^(a) Includes Indefinite-lived other intangible assets resulting from the P&G Beauty Business and ghd acquisitions during the year ended June 30, 2017 (Refer to Note 3—Business Combinations).

^(b) Includes measurement period adjustments in connection with the P&G Beauty Business acquisition (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
June 30, 2017
License agreements^(a)	$	3,148.4	$	(653.3	)	$	—		$	2,495.1
Customer relationships^(a)	1,937.3		(375.0		)	(5.5		)	1,556.8
Trademarks^(a)	1,001.1		(141.0		)	—			860.1
Product formulations and technology^(a)	389.3		(63.0		)	—			326.3
Total	$	6,476.1	$	(1,232.3	)	$	(5.5	)	$	5,238.3

^(a)Includes License agreements, Customer relationships, Trademarks, and Product formulations and technology of $2,299.0, $1,307.8, $870.7 and $331.0, respectively resulting from the P&G Beauty Business, ghd and Younique acquisitions during the year ended June 30, 2017 (see Note 3—Business Combinations).

In conjunction with the Company’s analysis of its go-to-market strategy in Southeast Asia during the first quarter of fiscal 2016, the Company evaluated future cash flows for this asset group and determined that the carrying value exceeded the undiscounted cash flows. As a result, the Company evaluated the fair value of the long-lived assets in the asset group, through an analysis of discounted future cash flows, and determined that the customer relationships were fully impaired and thus recorded $5.5 of Asset impairment charges in the Consolidated Statements of Operations for the fiscal year ended June 30, 2016.

Amortization expense totaled $275.1 and $79.5 for the years ended June 30, 2017 and 2016, 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	24.7 years
Customer relationships	16.5 years
Trademarks	22.8 years
Product formulations and technology	10.7 years

As of June 30, 2017, the remaining weighted-average life of all intangible assets subject to amortization is 21.1 years.

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



2018	$	361.1
2019	353.0
2020	348.0
2021	346.6
2022	307.0

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 3 to 10 year terms, at the Company’s discretion.