MANDATORILY REDEEMABLE FINANCIAL INTEREST

12 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

MANDATORILY REDEEMABLE FINANCIAL INTEREST

MANDATORILY REDEEMABLE FINANCIAL INTEREST

United Arab Emirates subsidiary

The Company is required under a shareholders agreement to purchase all of the shares held by the noncontrolling interest holder equal to 25% of the outstanding shares of a certain subsidiary in the United Arab Emirates (the “U.A.E. subsidiary”) at the termination of the agreement. The Company has determined such shares to be a mandatorily redeemable financial instrument (“MRFI”) that is recorded as a liability. The liability is calculated based upon a pre-determined formula in accordance with the related U.A.E. Shareholders Agreement. As of June 30, 2019 and 2018, the liability amounted to $7.5 and $8.2, respectively, of which $6.1 and $6.7, respectively, was recorded in Other noncurrent liabilities and $1.4 and $1.5, respectively, was recorded in Accrued expenses and other current liabilities.

The assets of the U.A.E. subsidiary are restricted in that they are not available for general business use outside the context of the U.A.E. subsidiary and creditors (or beneficial interest holders) do not have recourse to the Company or to its other assets. The U.A.E. subsidiary has total assets and total liabilities of $37.2 and $26.7 as of June 30, 2019, and $33.2 and $20.2 as of June 30, 2018, respectively.

Southeast Asian subsidiary

On May 23, 2017, the Company entered into the Sale of Shares and Termination Deed, as amended (the “Termination Agreement”) to purchase the remaining 49% noncontrolling interest from the noncontrolling interest holder of a certain Southeast Asian subsidiary for a purchase price of $45.0. Additionally, all remaining retained earnings will be paid out as dividends by December 31, 2019. As a result of the Termination Agreement, the noncontrolling interest balance is recorded as an MRFI. The MRFI balance was accreted to the redemption value through the effective date of the purchase with changes in the balance being reflected in Other income (expense) in the Consolidated Statements of Operations. The termination was effective on June 30, 2019 and the Company remitted purchase consideration of $45.0 in July of fiscal 2020 to the noncontrolling interest holder.

As of June 30, 2019 and 2018, the MRFI liability, which includes the termination payment and dividends payable to the noncontrolling interest holder, amounted to $50.4 and $45.1, respectively, which was recorded in Accrued expenses and other current liabilities in the Consolidated Balance Sheet.