XML 30 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS, NET
 3 Months Ended
Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS, NET
GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Goodwill
Goodwill as of September 30, 2018 and June 30, 2018 is presented below:
 
Luxury
 
Consumer Beauty
 
Professional Beauty
 
Total
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

 
 
 
 
 
 
 
 
Changes during the period ended September 30, 2018:
 
 
 
 
 
 
 
Measurement period adjustments (a)
(10.5
)
 
0.6

 
0.5

 
(9.4
)
Foreign currency translation
(5.4
)
 
(18.2
)
 
(4.0
)
 
(27.6
)
 
 
 
 
 
 
 
 
Gross balance at September 30, 2018
$
3,350.7

 
$
4,909.9

 
$
950.3

 
$
9,210.9

Accumulated impairments
(403.7
)
 
(237.1
)
 
—

 
(640.8
)
Net balance at September 30, 2018
$
2,947.0

 
$
4,672.8

 
$
950.3

 
$
8,570.1

 
 

(a) Includes measurement period adjustments in connection with the Burberry Beauty Business acquisition (Refer to Note 5—Business Combinations).
Other Intangible Assets, net
Other intangible assets, net as of September 30, 2018 and June 30, 2018 are presented below:
 
September 30, 2018
 
June 30,
2018
Indefinite-lived other intangible assets
$
3,184.7

 
$
3,186.2

Finite-lived other intangible assets, net
5,034.2

 
5,098.2

Total Other intangible assets, net
$
8,218.9

 
$
8,284.4


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, 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

 
 
 
 
 
 
 
 
Changes during the period ended September 30, 2018:
 
 
 
 
 
 
 
Foreign currency translation
(0.4
)
 
(0.5
)
 
(0.6
)
 
(1.5
)
 
 
 
 
 
 
 
 
Gross balance at September 30, 2018
414.2

 
1,702.6

 
1,265.7

 
3,382.5

Accumulated impairments
(118.8
)
 
(75.9
)
 
(3.1
)
 
(197.8
)
Net balance at September 30, 2018
$
295.4

 
$
1,626.7

 
$
1,262.6

 
$
3,184.7


Intangible assets subject to amortization are presented below:
 
Cost
 
Accumulated Amortization
 
Accumulated Impairment
 
Net
June 30, 2018
 
 
 
 
 
 
 
License agreements
$
3,362.7

 
$
(792.9
)
 
$
—

 
$
2,569.8

Customer relationships
1,960.5

 
(508.7
)
 
(5.5
)
 
1,446.3

Trademarks
1,002.1

 
(185.5
)
 
(0.4
)
 
816.2

Product formulations and technology
361.2

 
(95.3
)
 
—

 
265.9

Total
$
6,686.5

 
$
(1,582.4
)
 
$
(5.9
)
 
$
5,098.2

September 30, 2018
 
 
 
 
 
 
 
License agreements (a)
$
3,345.3

 
$
(816.5
)
 
$
(12.6
)
 
$
2,516.2

Customer relationships (a)
1,965.4

 
(544.0
)
 
(5.5
)
 
1,415.9

Trademarks (b)
1,042.9

 
(197.1
)
 
(0.4
)
 
845.4

Product formulations and technology
359.9

 
(103.2
)
 
—

 
256.7

Total
$
6,713.5

 
$
(1,660.8
)
 
$
(18.5
)
 
$
5,034.2

 
 
(a) Includes measurement period adjustments during the three months ended September 30, 2018 in connection with the Burberry Beauty Business acquisition (Refer to Note 5—Business Combinations).
(b) Includes an acquired trademark of $40.8.
During the quarter ended September 30, 2018, the Company acquired a trademark associated with a preexisting license. As a result of the acquisition, the preexisting license was effectively terminated, and accordingly the Company recorded $12.6 of Asset impairment charges in the Condensed Consolidated Statement of Operations related to the license agreement.
Amortization expense was $92.5 and $78.2 for the three months ended September 30, 2018 and 2017, respectively.