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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Jun. 30, 2018
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS
Savings and Retirement Plans - The Company’s Savings and Retirement Plans include a U.S. defined contribution plan for employees primarily in the U.S. and international savings plans for employees in certain other countries. In the U.S., hourly and salary based employees are eligible to participate in the plan after 90 days of service and the Company matches 100% of employee contributions up to 6.0% of employee compensation. In addition, the Company makes contributions to the plan on behalf of employees determined by their age and compensation.
During fiscal 2018, 2017 and 2016, the defined contribution expense for the U.S. defined contribution plan was $22.0, $20.6 and $12.7, respectively, and the defined contribution expense for the international savings plans was $18.3, $13.3 and $5.7, respectively.
Pension Plans - The Company sponsors contributory and noncontributory defined benefit pension plans covering certain U.S. and international employees primarily in Austria, France, Germany, the Netherlands, Spain and Switzerland. Participants in the U.S. defined benefit pension plan no longer accrue benefits. The Company measures defined benefit plan assets and obligations as of the date of the Company’s fiscal year-end. The Company’s defined benefit pension plans are funded primarily through contributions from the Company after consideration of recommendations from the pension plans’ independent actuaries and are funded at levels sufficient to comply with local requirements.
Settlements and Curtailments for Pension Plans
The Company settled obligations to U.S. Del Laboratories, Inc. pension plan (the “Del Plan”) participants during the first and second quarters of fiscal year 2017 resulting in the recognition of pre-tax settlement losses of $15.9, included in Selling, general and administrative expenses in the Consolidated Statement of Operations for the year ended June 30, 2017. As of December 31, 2016, the Del Plan had been fully terminated as a result of these actions.
Additionally during fiscal year 2017, the Company recognized a curtailment gain of $1.8 in connection with involuntary employee terminations as part of the Acquisition Integration Program, which significantly reduced the expected years of future service of employees within one of the Company’s international pension plans. The curtailment gain is included in Restructuring costs in the Company’s Consolidated Statements of Operations for the year ended June 30, 2017. Refer to Note 6—Restructuring Costs for further information about the Acquisition Integration Program.
P&G Beauty Business Employee Benefit Plans
In connection with the P&G Beauty Business acquisition, the Company assumed certain international pension and other post-employment benefit plan obligations and assets. The assumed benefit plans resulted in liabilities of $404.1, representing the aggregate funded status of these plans as of the date of acquisition.
As part of Global Integration Activities initiated during fiscal 2017, we concluded that our restructuring actions resulted in a significant reduction of future services of active employees primarily in our non-U.S. pension plans. As a result, we recognized net settlement and curtailment gains of $0.4 and $0.4, respectively, in restructuring costs during fiscal 2017.
Other Post-Employment Benefit Plans (“OPEB”) - The Company provides certain post-employment health and life insurance benefits for certain employees and spouses principally in the U.S., France, and Canada if certain age and service requirements are met. Estimated benefits to be paid by the Company are expensed over the service period of each employee based on calculations performed by an independent actuary. In addition, the Company has a supplemental retirement plan and a termination benefit plan for selected salaried employees.
Settlements and Curtailments for OPEB Plans
The Company amended one of our non-U.S. postretirement healthcare plans during fiscal 2018, which significantly reduced the expected years of future service for employees participating in the plan. The amendment triggered a curtailment gain of $10.4, which is included in Selling, general and administrative expenses in the Consolidated Statement of Operations for the year ended June 30, 2018.
The aggregate reconciliation of the projected benefit obligations, plan assets, funded status and amounts recognized in the Company’s Consolidated Financial Statements related to the Company’s pension plans and other post-employment benefit plans is presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
Total
 
U.S.
 
International
 
 
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Change in benefit obligation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation—July 1
$
18.8

 
$
82.1

 
$
708.8

 
$
203.6

 
$
63.8

 
$
47.7

 
$
791.4

 
$
333.4

Service cost
—

 
—

 
38.8

 
34.8

 
1.4

 
1.9

 
40.2

 
36.7

Interest cost
0.7

 
1.6

 
12.6

 
6.6

 
2.0

 
1.8

 
15.3

 
10.0

Plan participants’ contributions
—

 
—

 
7.1

 
15.0

 
0.2

 
0.2

 
7.3

 
15.2

Benefits paid
(1.3
)
 
(2.5
)
 
(29.6
)
 
(9.6
)
 
(1.6
)
 
(2.0
)
 
(32.5
)
 
(14.1
)
Premiums paid
—

 
—

 
(2.7
)
 
(2.9
)
 
—

 
—

 
(2.7
)
 
(2.9
)
Pension curtailment
—

 
—

 
0.3

 
(2.2
)
 
(10.4
)
 
—

 
(10.1
)
 
(2.2
)
Pension settlements
—

 
(60.2
)
 
(1.0
)
 
(23.0
)
 
—

 
—

 
(1.0
)
 
(83.2
)
Actuarial (gain) loss
(0.7
)
 
(2.2
)
 
(6.3
)
 
(80.9
)
 
(2.5
)
 
(1.4
)
 
(9.5
)
 
(84.5
)
Acquired obligations(a)
—

 
—

 
—

 
557.4

 
—

 
15.4

 
—

 
572.8

Effect of exchange rates
—

 
—

 
4.6

 
10.1

 
0.3

 
0.1

 
4.9

 
10.2

Other
—

 
—

 
—

 
(0.1
)
 
—

 
0.1

 
—

 
—

Benefit obligation—June 30
$
17.5

 
$
18.8

 
$
732.6

 
$
708.8

 
$
53.2

 
$
63.8

 
$
803.3

 
$
791.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets—July 1
$
—

 
$
53.2

 
$
234.2

 
$
42.4

 
$
0.4

 
$
—

 
$
234.6

 
$
95.6

Actual return on plan assets
—

 
(0.8
)
 
18.8

 
10.6

 
—

 
—

 
18.8

 
9.8

Employer contributions
1.3

 
10.1

 
37.1

 
29.8

 
1.4

 
1.8

 
39.8

 
41.7

Plan participants’ contributions
—

 
—

 
7.1

 
15.0

 
0.2

 
0.2

 
7.3

 
15.2

Benefits paid
(1.3
)
 
(2.5
)
 
(29.2
)
 
(9.6
)
 
(1.6
)
 
(2.0
)
 
(32.1
)
 
(14.1
)
Premiums paid
—

 
—

 
(2.7
)
 
(2.9
)
 
—

 
—

 
(2.7
)
 
(2.9
)
Plan settlements
—

 
(60.2
)
 
(1.0
)
 
(23.0
)
 
—

 
—

 
(1.0
)
 
(83.2
)
Acquired plan assets(a)
—

 
—

 
—

 
168.3

 
—

 
0.4

 
—

 
168.7

Effect of exchange rates
—

 
—

 
(2.5
)
 
3.6

 
—

 
—

 
(2.5
)
 
3.6

Other
—

 
0.2

 
—

 
—

 
—

 
—

 
—

 
0.2

Fair value of plan assets—June 30
—

 
—

 
261.8

 
234.2

 
0.4

 
0.4

 
262.2

 
234.6

Funded status—June 30
$
(17.5
)
 
$
(18.8
)
 
$
(470.8
)
 
$
(474.6
)
 
$
(52.8
)
 
$
(63.4
)
 
$
(541.1
)
 
$
(556.8
)
 
 
(a) As a result of the acquisition of the P&G Beauty Business, the Company acquired certain international pension plans during Fiscal 2017. See Note 3—Business Combinations for additional information.
With respect to the Company’s pension plans and other post-employment benefit plans, amounts recognized in the Company’s Consolidated Balance Sheets as of June 30, 2018 and 2017, are presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
Total
 
U.S.
 
International
 
 
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Noncurrent assets
$
—

 
$
—

 
$
1.1

 
$
0.5

 
$
—

 
$
—

 
$
1.1

 
$
0.5

Current liabilities
(1.3
)
 
(1.3
)
 
(5.5
)
 
(4.9
)
 
(2.1
)
 
(1.9
)
 
(8.9
)
 
(8.1
)
Noncurrent liabilities
(16.2
)
 
(17.5
)
 
(466.4
)
 
(470.2
)
 
(50.7
)
 
(61.5
)
 
(533.3
)
 
(549.2
)
Funded status
(17.5
)
 
(18.8
)
 
(470.8
)
 
(474.6
)
 
(52.8
)
 
(63.4
)
 
(541.1
)
 
(556.8
)
AOC(L)/I
1.7

 
2.5

 
44.7

 
25.1

 
20.1

 
23.9

 
66.5

 
51.5

Net amount recognized
$
(15.8
)
 
$
(16.3
)
 
$
(426.1
)
 
$
(449.5
)
 
$
(32.7
)
 
$
(39.5
)
 
$
(474.6
)
 
$
(505.3
)

The accumulated benefit obligation for the U.S. defined benefit pension plans was $17.5 and $18.8 as of June 30, 2018 and 2017, respectively. The accumulated benefit obligation for international defined benefit pension plans was $669.1 and $640.6 as of June 30, 2018 and 2017, respectively.
Pension plans with accumulated benefit obligations in excess of plan assets and projected benefit obligations in excess of plan assets are presented below:
 
Pension plans with accumulated benefit obligations in excess of plan assets
 
Pension plans with projected benefit obligations in excess of plan assets
 
U.S.
 
International
 
U.S.
 
International
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Projected benefit obligation
$
17.5

 
$
18.8

 
$
713.9

 
$
695.0

 
$
17.5

 
$
18.8

 
$
725.0

 
$
705.6

Accumulated benefit obligation
17.5

 
18.8

 
657.8

 
631.6

 
17.5

 
18.8

 
669.1

 
640.6

Fair value of plan assets
—

 
—

 
247.0

 
223.9

 
—

 
—

 
254.2

 
230.4


Net Periodic Benefit Cost
The components of net periodic benefit cost for pension plans and other post-employment benefit plans recognized in the Consolidated Statements of Operations are presented below:
 
Year Ended June 30,
 
Pension Plans
 
Other Post-
Employment Benefits
 
 
 
 
 
 
 
U.S.
 
International
 
 
Total
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Service cost
$
—

 
$
—

 
$
—

 
$
38.8

 
$
34.8

 
$
6.5

 
$
1.4

 
$
1.9

 
$
1.1

 
$
40.2

 
$
36.7

 
$
7.6

Interest cost
0.7

 
1.6

 
3.4

 
12.6

 
6.6

 
3.6

 
2.0

 
1.8

 
1.9

 
15.3

 
10.0

 
8.9

Expected return on plan assets
—

 
(0.9
)
 
(2.6
)
 
(7.5
)
 
(6.3
)
 
(1.1
)
 
—

 
—

 
—

 
(7.5
)
 
(7.2
)
 
(3.7
)
Amortization of prior service (credit) cost
—

 
—

 
—

 
0.2

 
0.2

 
0.2

 
(5.9
)
 
(5.9
)
 
(5.9
)
 
(5.7
)
 
(5.7
)
 
(5.7
)
Amortization of net loss (gain)
(0.7
)
 
2.3

 
1.2

 
1.2

 
4.2

 
2.6

 
(0.1
)
 
0.1

 
—

 
0.4

 
6.6

 
3.8

Settlements loss (gain) recognized
—

 
15.9

 
—

 
—

 
(0.5
)
 
0.1

 
—

 
—

 
—

 
—

 
15.4

 
0.1

Curtailment (gain) loss recognized
—

 
—

 
—

 
0.1

 
(2.2
)
 
—

 
(10.4
)
 
—

 
(1.8
)
 
(10.3
)
 
(2.2
)
 
(1.8
)
Net periodic benefit cost
$
—

 
$
18.9

 
$
2.0

 
$
45.4

 
$
36.8

 
$
11.9

 
$
(13.0
)
 
$
(2.1
)
 
$
(4.7
)
 
$
32.4

 
$
53.6

 
$
9.2


Pre-tax amounts recognized in AOC(L)/I, which have not yet been recognized as a component of net periodic benefit cost are presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
 
 
 
 
U.S.
 
International
 
 
Total
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Net actuarial (loss) gain
$
1.7

 
$
2.5

 
$
46.7

 
$
27.4

 
$
3.8

 
$
1.7

 
$
52.2

 
$
31.6

Prior service (cost) credit
—

 
—

 
(2.0
)
 
(2.3
)
 
16.3

 
22.2

 
14.3

 
19.9

Total recognized in AOC(L)/I
$
1.7

 
$
2.5

 
$
44.7

 
$
25.1

 
$
20.1

 
$
23.9

 
$
66.5

 
$
51.5

Changes in plan assets and benefit obligations recognized in OCI/(L) during the fiscal year are presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
 
 
 
 
U.S.
 
International
 
 
Total
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Net actuarial (loss) gain
$
0.7

 
$
0.4

 
$
17.8

 
$
85.2

 
$
2.3

 
$
1.4

 
$
20.8

 
$
87.0

Amortization of prior service cost (credit)
—

 
—

 
0.2

 
0.2

 
(5.9
)
 
(5.9
)
 
(5.7
)
 
(5.7
)
Recognized net actuarial loss (gain)
(0.6
)
 
17.6

 
1.2

 
3.7

 
(0.1
)
 
0.1

 
0.5

 
21.4

Effect of exchange rates
—

 
—

 
0.3

 
2.7

 
0.1

 
0.3

 
0.4

 
3.0

Total recognized in OCI/(L)
$
0.1

 
$
18.0

 
$
19.5

 
$
91.8

 
$
(3.6
)
 
$
(4.1
)
 
$
16.0

 
$
105.7


Amounts in AOCI/(L) expected to be amortized as components of net periodic benefit cost during fiscal 2019 are presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
Total
 
U.S.
 
International
 
 
Prior service (cost) credit
$
—

 
$
(0.2
)
 
$
5.9

 
$
5.7

Net gain (loss)
0.7

 
(0.4
)
 
0.1

 
0.4

Total
$
0.7

 
$
(0.6
)
 
$
6.0

 
$
6.1


Pension and Other Post-Employment Benefit Assumptions
The weighted-average assumptions used to determine the Company’s projected benefit obligation above are presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
U.S.
 
International
 
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Discount rates
4.0%
 
3.6%
 
0.6%-8.0%
 
0.4%-7.5%
 
2.3%-4.2%
 
1.9%-7.6%
Future compensation growth rates
N/A
 
N/A
 
1.5%-5.8%
 
0%-6.0%
 
N/A
 
 N/A
The weighted-average assumptions used to determine the Company’s net periodic benefit cost in fiscal 2018, 2017 and 2016 are presented below:
 
Pension Plans
 
Other Post-
Employment Benefits
 
U.S.
 
International
 
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Discount rates
3.6%
 
3.3%-3.8%
 
4.1%-4.5%
 
0.4%-7.5%
 
0.2%-7.8%
 
1.0%-2.7%
 
1.9%-7.6%
 
1.4%-8.0%
 
4.1%-4.6%
Future compensation growth rates
 N/A
 
 N/A
 
 N/A
 
1.5%-6.0%
 
1.5%-5.8%
 
1.5%-2.5%
 
 N/A
 
 N/A
 
 N/A
Expected long-term rates of return on plan assets
 N/A
 
 N/A
 
5.1%
 
1.8%-8.2%
 
1.6%-6.0%
 
2.3%-4.3%
 
 N/A
 
 N/A
 
 N/A

The health care cost trend rate assumptions have a significant effect on the amounts reported.
 
Year Ended June 30,
 
2018
 
2017
 
2016
Health care cost trend rate assumed for next year
7.4%-8.5%
 
7.2%-7.4%
 
7.2%-7.4%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
5%
 
5%
 
5%
Year that the rate reaches the ultimate trend rate
2026
 
2025
 
2024 - 2025

A one-percentage point change in assumed health care cost trend rates would have the following effects:
 
One Percentage Point Increase
 
One Percentage Point Decrease
Effect on total service cost and interest cost
$
6.1

 
$
(5.3
)
Effect on post-employment benefit obligation
0.4

 
(0.4
)

Pension Plan Investment Policy
The Company’s investment policies and strategies for plan assets are to achieve the greatest return consistent with the fiduciary character of the plan and to maintain a level of liquidity that is sufficient to meet the need for timely payment of benefits. The goals of the investment managers include minimizing risk and achieving growth in principal value so that the purchasing power of such value is maintained with respect to the rate of inflation.
The pension plan’s return on assets is based on management’s expectations of long-term average rates of return to be achieved by the underlying investment portfolios. In establishing this assumption, management considers historical and expected returns for the assets in which the plan is invested, as well as current economic and market conditions.
The asset allocation decision includes consideration of future retirements, lump-sum elections, growth in the number of participants, the Company’s contributions and cash flow. These actual characteristics of the plan place certain demands upon the level, risk and required growth of trust assets. Actual asset allocation is regularly reviewed and periodically rebalanced to the strategic allocation when considered appropriate.
The target asset allocations for the Company’s pension plans as of June 30, 2018 and 2017, by asset category are presented below:
 
 
 
% of Plan Assets at Year Ended
 
Target
 
2018
 
2017
Equity securities
40
%
 
41
%
 
41
%
Fixed income securities
50
%
 
42
%
 
39
%
Cash and other investments
10
%
 
17
%
 
20
%


Fair Value of Plan Assets
The international pension plan assets that the Company measures at fair value on a recurring basis, based on the fair value hierarchy as described in Note 2—Summary of Significant Accounting Policies, as of June 30, 2018 and 2017 are presented below:
 
Level 1
 
Level 2
 
Level 3
 
Total
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Equity securities
$
63.0

 
$
53.4

 
$
—

 
$
—

 
$
—

 
$
—

 
$
63.0

 
$
53.4

Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Corporate securities
54.6

 
50.5

 
—

 
—

 
—

 
—

 
54.6

 
50.5

Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Cash and cash equivalents
0.9

 
0.5

 
—

 
—

 
—

 
—

 
0.9

 
0.5

  Insurance contracts and other
—

 
—

 
—

 
—

 
143.7

 
130.2

 
143.7

 
130.2

Total pension plan assets
$
118.5

 
$
104.4

 
$
—

 
$
—

 
$
143.7

 
$
130.2

 
$
262.2

 
$
234.6


The following is a description of the valuation methodologies used for plan assets measured at fair value:
Equity securities-The fair values reflect the closing price reported on a major market where the individual securities are traded. These investments are classified within Level 1 of the valuation hierarchy.
Corporate securities-The fair values are based on a compilation of primarily observable market information or a broker quote in a non-active market. These investments are primarily classified within Level 1 of the valuation hierarchy.
Cash and cash equivalents-The carrying amount approximates fair value, primarily because of the short maturity of cash equivalent instruments. These investments are classified within Level 1 of the valuation hierarchy.
Insurance contracts and other- Includes contracts issued by insurance companies and other investments that are not publicly traded.  These investments are generally classified as Level 3 as there are neither quoted prices nor other observable inputs for pricing. Insurance contracts are valued at cash surrender value, which approximates the contract fair value.  Other Level 3 plan assets include real estate and other alternative investment funds requiring inputs that cannot be readily derived from observable market data due to the infrequency with which the underlying assets trade.
The Company sponsors a qualified defined benefit pension plan for all eligible Swiss employees. Retirement benefits are provided based on employees’ years of service and earnings, or in accordance with applicable employee regulations. Consistent with typical Swiss practice, the pension plan is funded through a guaranteed insurance contract with an insurance company (“IC”). The IC is responsible for the investment strategy of the insurance premiums that the Company submits and does not hold individual assets per participating employer. Assets are invested in accordance with the IC’s own strategies and risk assessments. Under the terms of the contract, the interest rate as well as the capital value is guaranteed for each participant, with the IC assuming any risk to the value of the underlying assets. The IC is a member of a security fund, whose purpose is to cover any shortfall in the event they are not able to fulfill its contractual agreements. The plan assets of the Swiss plan are included in the Level 3 valuation.
The Company also sponsors qualified defined benefit pension plans for certain eligible German employees. The Company’s German pension plans are partially funded with plan assets held in a Contractual Trust Arrangement, under which Company assets have been irrevocably transferred to a registered association for the exclusive purpose of securing and funding pension obligations in Germany.  The association invests primarily in publicly tradable equity and fixed income securities, using a funding strategy that is reviewed on a regular basis.
Plan assets are also held in the Company’s other non-U.S. defined benefit pension plans.  The other non-U.S. defined benefit pension plans provide benefits primarily based on earnings and years of service and are funded in compliance with local laws and practices. The plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification and investment return over the long term at an acceptable level of risk.
The reconciliations of Level 3 plan assets measured at fair value in fiscal 2018 and 2017 are presented below:
 
June 30,
2018
 
June 30,
2017
Insurance contracts:
 
 
 
Fair value—July 1
$
130.2

 
$
42.4

Plan assets from acquisitions
—

 
75.7

Return on plan assets
14.0

 
4.7

Purchases, sales and settlements, net
3.9

 
5.3

Effect of exchange rates
(4.4
)
 
2.1

Fair value—June 30
$
143.7

 
$
130.2


Contributions
The Company plans to contribute approximately $1.3 to its remaining U.S. pension plan and expects to contribute approximately $36.8 and $2.1 to its international pension and other post-employment benefit plans, respectively, during fiscal 2019.
Estimated Future Benefit Payments
Expected benefit payments, which reflect expected future service, as appropriate, are presented below:
 
Pension Plans
 
Other Post-Employment Benefits
 
Total
Fiscal Year Ending June 30,
U.S.
 
International
 
 
2019
$
1.3

 
$
40.5

 
$
2.1

 
$
43.9

2020
1.3

 
26.6

 
2.5

 
30.4

2021
1.3

 
26.5

 
2.9

 
30.7

2022
1.3

 
29.1

 
3.1

 
33.5

2023
1.2

 
28.0

 
3.3

 
32.5

2024 - 2027
5.9

 
167.2

 
17.5

 
190.6