DEBT (Tables)

9 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Schedule of debt

The Company’s debt balances consisted of the following as of March 31, 2018 and June 30, 2017, respectively:

	March 31, 2018			June 30, 2017
Short-term debt	$	10.5		$	3.7
Galleria Credit Agreement
Galleria Revolving Credit Facility due September 2021	680.0			—
Galleria Term Loan A Facility due September 2021	920.7			944.3
Galleria Term Loan B Facility due September 2023	995.0			1,000.0
Coty Credit Agreement
Coty Revolving Credit Facility due October 2020	892.6			810.0
Coty Term Loan A Facility due October 2020	1,732.3			1,792.8
Coty Term Loan A Facility due October 2021	914.1			950.6
Coty Term Loan B Facility due October 2022	1,784.0			1,712.5
Other long-term debt and capital lease obligations	2.0			1.7
Total debt	7,931.2			7,215.6
Less: Short-term debt and current portion of long-term debt	(231.6		)	(209.1		)
Total Long-term debt	7,699.6			7,006.5
Less: Unamortized debt issuance costs (a)	(61.6		)	(67.6		)
Less: Discount on Long-term debt	(9.4		)	(10.6		)
Total Long-term debt, net	$	7,628.6		$	6,928.3

^(a) Consists of unamortized debt issuance costs of $14.1 and $17.5 for the Coty Revolving Credit Facility, $27.3 and $33.2 for the Coty Term Loan A Facility and $10.5 and $11.3 for the Coty Term Loan B Facility as of March 31, 2018 and June 30, 2017, respectively. Consists of unamortized debt issuance costs of $4.1for the Galleria Revolving Credit Facility as of March 31, 2018, and $2.6 and $2.7 for the Galleria Term Loan A Facility and $3.0 and $3.0 for the Galleria Term Loan B Facility as of March 31, 2018 and June 30, 2017, respectively. Unamortized debt issuance costs of $4.2 for the Galleria Revolving Credit Facility was classified as Other noncurrent assets in the Condensed Consolidated Balance Sheets as of June 30, 2017.

Schedule of line of credit facilities

In the case of the Coty Revolving Credit Facility, Coty Term Loan A Facilities, Galleria Revolving Facility and Galleria Term Loan A Facility, the applicable margin means a percentage per annum to be determined in accordance with a leverage-based pricing grid below:

Pricing Tier	Total Net Leverage Ratio:	LIBOR plus:	Alternative Base Rate Margin:
1.0	Greater than or equal to 5.00:1	2.000%	1.000%
2.0	Less than 5.00:1 but greater than or equal to 4.00:1	1.750%	0.750%
3.0	Less than 4.00:1 but greater than or equal to 2.75:1	1.500%	0.500%
4.0	Less than 2.75:1 but greater than or equal to 2.00:1	1.250%	0.250%
5.0	Less than 2.00:1 but greater than or equal to 1.50:1	1.125%	0.125%
6.0	Less than 1.50:1	1.000%	—%

In the case of the 2018 Coty Revolving Credit Facility and the 2018 Coty Term A Facility, the applicable margin means the lesser of a percentage per annum to be determined in accordance with the leverage-based pricing grid and the debt rating-based grid below:

Pricing Tier	Total Net Leverage Ratio:	LIBOR plus:	Alternative Base Rate Margin:
1.0	Greater than or equal to 4.75:1	2.000%	1.000%
2.0	Less than 4.75:1 but greater than or equal to 4.00:1	1.750%	0.750%
3.0	Less than 4.00:1 but greater than or equal to 2.75:1	1.500%	0.500%
4.0	Less than 2.75:1 but greater than or equal to 2.00:1	1.250%	0.250%
5.0	Less than 2.00:1 but greater than or equal to 1.50:1	1.125%	0.125%
6.0	Less than 1.50:1	1.000%	—%

Pricing Tier	Debt Ratings S&P/Moody’s:	LIBOR plus:	Alternative Base Rate Margin:
5.0	Less than BB+/Ba1	2.000%	1.000%
4.0	BB+/Ba1	1.750%	0.750%
3.0	BBB-/Baa3	1.500%	0.500%
2.0	BBB/Baa2	1.250%	0.250%
1.0	BBB+/Baa1 or higher	1.125%	0.125%

With certain exceptions as described below, the 2018 Coty Credit Agreement includes a financial covenant that requires us to maintain a Total Net Leverage Ratio (as defined below), equal to or less than the ratios shown below for each respective test period.

Test Period Ending	Total Net Leverage Ratio(a)
June 30, 2018	5.50 to 1.00
September 30, 2018	5.50 to 1.00
December 31, 2018	5.50 to 1.00
March 31, 2019	5.25 to 1.00
June 30, 2019	5.25 to 1.00
September 30, 2019	5.00 to 1.00
December 31, 2019	5.00 to 1.00
March 31, 2020	4.75 to 1.00
June 30, 2020	4.75 to 1.00
September 30, 2020	4.50 to 1.00
December 31, 2020	4.50 to 1.00
March 31, 2021	4.25 to 1.00
June 30, 2021	4.25 to 1.00
September 30, 2021	4.00 to 1.00
December 31, 2021	4.00 to 1.00
March 31, 2022	4.00 to 1.00
June 30, 2022	4.00 to 1.00
September 30, 2022	4.00 to 1.00
December 31, 2022	4.00 to 1.00
March 31, 2023	4.00 to 1.00
June 30, 2023	4.00 to 1.00

^(a) Total Net Leverage Ratio means, as of any date of determination, the ratio of: (a) (i) Total Indebtedness minus (ii) unrestricted cash and Cash Equivalents of the Parent Borrower and its Restricted Subsidiaries as determined in accordance with GAAP to (b) Adjusted EBITDA for the most recently ended Test Period (each of the defined terms used within the definition of Total Net Leverage Ratio have the meanings ascribed to them within the 2018 Coty Credit Agreement).

Fair value of long-term debt

Fair Value of Debt

	March 31, 2018				June 30, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Galleria Credit Agreement	$	2,595.7	$	2,588.8	$	1,944.3	$	1,944.0
Coty Credit Agreement	5,323.0		5,337.8		5,265.9		5,275.4

Schedule of maturities of long-term debt

Aggregate maturities of the Company’s long-term debt, including current portion of long-term debt and excluding capital lease obligations as of March 31, 2018, are presented below:

Fiscal Year Ending June 30,
2018, remaining	$	55.1
2019	220.2
2020	220.2
2021	2,532.9
2022	2,231.0
Thereafter	2,659.3
Total	$	7,918.7

Aggregate maturities of the Company’s long-term debt under the 2018 Coty Credit Agreement, excluding capital lease obligations as of April 5, 2018, are presented below:

Fiscal Year Ending June 30,
2018, remaining	$	—
2019	199.7
2020	199.7
2021	199.7
2022	199.7
2023	4,005.8
Thereafter	3,182.0
Total	$	7,986.6

Summary total net leverage ratio requirement

The Company was required to comply with certain affirmative and negative covenants contained within the Coty Credit Agreement and the Galleria Credit Agreement (collectively the “Debt Agreements”). With certain exceptions as described below, the Debt Agreements included a financial covenant that required the Company to maintain a Total Net Leverage Ratio (as defined below), equal to or less than the ratios shown below for each respective test period.

Test Period Ending	Total Net Leverage Ratio(a)
March 31, 2018	4.75 to 1.00

^(a) Total Net Leverage Ratio means, as of any date of determination, the ratio of: (a) (i) Total Indebtedness minus (ii) unrestricted cash and Cash Equivalents of the Parent Borrower and its Restricted Subsidiaries as determined in accordance with GAAP to (b) Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) for the most recently ended Test Period (each of the defined terms used within the definition of Total Net Leverage Ratio have the meanings ascribed to them within the Debt Agreements).