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 Company’s 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:

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

Consumer Beauty — primarily focused on color cosmetics, retail hair coloring and styling products, mass fragrance, mass skin care and body care;

Professional Beauty — primarily focused on hair and nail care products for professionals.

As a result of this change in segment reporting, the Company retrospectively revised 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 8—Goodwill and Other Intangible Assets, net.



	Three Months Ended September 30,
SEGMENT DATA	2017			2016
Net revenues:
Luxury	$	764.4		$	449.0
Consumer Beauty	1,043.4			571.9
Professional Beauty	430.5			59.3
Total	$	2,238.3		$	1,080.2
Operating income (loss):
Luxury	$	56.7		$	75.7
Consumer Beauty	61.9			53.2
Professional Beauty	(1.7		)	16.3
Corporate	(88.2		)	(98.8		)
Total	$	28.7		$	46.4
Reconciliation:
Operating income	$	28.7		$	46.4
Interest expense, net	66.4			40.4
Other expense, net	3.7			1.3
(Loss) income before income taxes	$	(41.4	)	$	4.7

Presented below are the percentage of revenues associated with the Company’s product categories:



	Three Months Ended September 30,
PRODUCT CATEGORY	2017		2016
Fragrance	37.1	%	45.6	%
Color Cosmetics	28.9		33.6
Hair Care	23.9		0.5
Skin & Body Care	10.1		20.3
Total Coty Inc.	100.0	%	100.0	%