SEGMENT REPORTING

9 Months Ended

Mar. 31, 2020

Operating and reportable segments (referred to as “segments”) reflect the way the Company is managed and for which separate financial information is available and evaluated regularly by the Company’s CODM in deciding how to allocate resources and assess performance. The Company has designated its Chief Executive Officer as the CODM.

On July 1, 2019, the Company announced its turnaround plan, which included the Company's CODM changing the reporting structure used to allocate resources from the previous category focused organizational structure that included three operating and reportable segments: Luxury, Consumer Beauty and Professional Beauty, to a structure based on regional commercial business units. These changes were implemented during the three months ended March 31, 2020. See Note 1—Description of Business for information on the Company’s turnaround plan update announced on October 21, 2019.

As a result of these changes, the Company has four operating segments and reportable segments: Europe, Middle East & Africa (“EMEA”), Americas, Asia Pacific, and Professional Beauty. EMEA, Americas and Asia Pacific include the businesses focused on prestige fragrances, prestige skin care, prestige color cosmetics, mass color cosmetics, retail hair coloring and styling products, mass fragrance, mass skin care and body care, and are supported by central marketing teams.

Certain income and shared costs and the results of corporate initiatives are managed by Corporate. Corporate primarily includes restructuring and realignment costs, costs related to acquisition and divestiture activities and impairments of long lived assets, goodwill and intangibles that are not attributable to ongoing operating activities of the segments. Due to the changes in the reporting structure to the CODM, certain internal cost allocations between the segments were revised. Further, previously

incurred amortization expense and asset impairment charges related to goodwill and intangible assets that have historically supported Luxury and Consumer Beauty categories were reallocated. The results of Younique, LLC ("Younique") are included in "Other." See Note 5—Business Combinations, Asset Acquisitions and Divestitures for information on Younique and the divestiture, which was completed on September 16, 2019. Corporate costs are not used by the CODM to measure the underlying performance of the segments.

With the exception of goodwill, the Company does not identify or monitor assets by segment. The Company does not present assets by reportable segment since various assets are shared between reportable segments. The allocation of goodwill by segment is presented in Note 9—Goodwill and Other Intangible Assets, net.


	Three Months Ended March 31,						Nine Months Ended March 31,
SEGMENT DATA	2020		2019		2020		2019
Net revenues:
Americas	$	492.6	$	581.6	$	1,689.0	$	1,897.4
EMEA	550.6		705.6		2,229.7		2,406.0
Asia Pacific	124.7		197.7		537.5		606.5
Professional Beauty	360.1		419.0		1,304.1		1,348.6
Other	—		86.7		55.5		274.6
Total	$	1,528.0	$	1,990.6	$	5,815.8	$	6,533.1
Operating income (loss):
Americas	(16.8)		36.4		20.0		(293.3)
EMEA	(47.4)		53.8		108.8		(207.6)
Asia Pacific	(24.7)		22.4		3.0		(29.4)
Professional	2.1		33.0		112.4		110.8
Other	—		(2.9)		(11.0)		(11.0)
Corporate	(172.0)		(57.2)		(330.6)		(309.3)
Total	$	(258.8)	$	85.5	$	(97.4)	$	(739.8)
Reconciliation:
Operating (loss) income	$	(258.8)	$	85.5	$	(97.4)	$	(739.8)
Interest expense, net	73.6		72.0		222.1		204.4
Other expense, net	0.5		17.5		4.0		25.0
Loss before income taxes	$	(332.9)	$	(4.0)	$	(323.5)	$	(969.2)

Presented below are the percentage of revenues associated with the Company’s product categories:



	Three Months Ended March 31,						Nine Months Ended March 31,
PRODUCT CATEGORY	2020		2019		2020		2019
Fragrance	35.2	%	36.6	%	41.4	%	40.6	%
Color Cosmetics	27.9		27.7		23.7		25.6
Hair Care	28.2		25.7		26.2		24.7
Skin & Body Care	8.7		10.0		8.7		9.1
Total Coty Inc.	100.0	%	100.0	%	100.0	%	100.0	%