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 2018 and 2017.

Goodwill as of June 30, 2018, 2017 and 2016 is presented below:



	Luxury			Consumer Beauty			Professional Beauty			Total
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	1,866.1			3,285.2			665.5			5,816.8
Measurement period adjustments	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

Changes during the year ended June 30, 2018
Acquisitions ^(a)	68.2			—			2.6			70.8
Measurement period adjustments ^(b)	(185.0		)	228.8			(17.3		)	26.5
Foreign currency translation	(10.3		)	(24.1		)	1.0			(33.4		)
Dispositions	(3.1		)	(9.2		)	—			(12.3		)

Gross balance at June 30, 2018	$	3,366.6		$	4,927.5		$	953.8		$	9,247.9
Accumulated impairments	(403.7		)	(237.1		)	—			(640.8		)
Net balance at June 30, 2018	$	2,962.9		$	4,690.4		$	953.8		$	8,607.1

^(a) Includes goodwill resulting from the Burberry Beauty Business acquisition during the year ended June 30, 2018 (Refer to Note 3—Business Combinations).

^(b) Includes measurement period adjustments in connection with the P&G Beauty Business, ghd, Younique and Burberry Beauty Business acquisitions (Refer to Note 3—Business Combinations).

Other Intangible Assets, net

Other intangible assets, net as of June 30, 2018 and 2017 are presented below:



	June 30, 2018		June 30, 2017
Indefinite-lived other intangible assets	$	3,186.2	$	3,186.9
Finite-lived other intangible assets, net	5,098.2		5,238.3
Total Other intangible assets, net	$	8,284.4	$	8,425.2

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, 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	—			1,390.0			663.8			2,053.8
Measurement period adjustments	—			(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

Changes during the year ended June 30, 2018
Measurement period adjustments^(a)	—			—			(14.8		)	(14.8		)
Foreign currency translation	4.8			6.7			2.6			14.1

Gross balance at June 30, 2018	414.6			1,703.1			1,266.3			3,384.0
Accumulated impairments	(118.8		)	(75.9		)	(3.1		)	(197.8		)
Net balance at June 30, 2018	$	295.8		$	1,627.2		$	1,263.2		$	3,186.2

^(a) Includes measurement period adjustments in connection with the ghd acquisition (Refer to Note 3—Business Combinations).

Intangible assets subject to amortization are presented below:



	Cost		Accumulated Amortization			Accumulated Impairment			Net
June 30, 2017
License agreements	$	3,148.4	$	(653.3	)	$	—		$	2,495.1
Customer relationships	1,937.3		(375.0		)	(5.5		)	1,556.8
Trademarks	1,001.1		(141.0		)	—			860.1
Product formulations and technology	389.3		(63.0		)	—			326.3
Total	$	6,476.1	$	(1,232.3	)	$	(5.5	)	$	5,238.3
June 30, 2018
License agreements ^(a)(b)	$	3,362.7	$	(792.9	)	$	—		$	2,569.8
Customer relationships ^(a)(b)	1,960.5		(508.7		)	(5.5		)	1,446.3
Trademarks	1,002.1		(185.5		)	(0.4		)	816.2
Product formulations and technology ^(a)	361.2		(95.3		)	—			265.9
Total	$	6,686.5	$	(1,582.4	)	$	(5.9	)	$	5,098.2

^(a) Includes measurement period adjustments in connection with the P&G Beauty Business and ghd acquisitions during fiscal 2018.

^(b)Includes License agreements and Customer relationships of $171.1 and $6.7, respectively resulting from the Burberry Beauty Business acquisition during the fiscal year ended June 30, 2018 (see Note 3—Business Combinations).

During fiscal 2018, the Company sold assets related to the Playboy and Cerruti brands (including related licenses of $26.2 and goodwill of $12.3) for proceeds of $33.0, resulting in a noncash loss of $28.6. During fiscal 2017, the Company sold assets related to the J.Lo brand 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 losses (gains) of $28.6, $(3.1) and $(24.8), which are reflected in Loss (gain) on sale of assets in the Consolidated Statements of Operations for the fiscal years ended June 30, 2018, 2017 and 2016, respectively.

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 $352.8, $275.1 and $79.5 for the June 30, 2018, 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	24.6 years
Customer relationships	15.9 years
Trademarks	22.0 years
Product formulations and technology	10.5 years

As of June 30, 2018, the remaining weighted-average life of all intangible assets subject to amortization is 21.0 years.

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



2019	$	353.9
2020	349.1
2021	344.8
2022	326.5
2023	304.4

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 brand licenses provide for automatic extensions ranging from 2 to 10 year terms, at the Company’s discretion.