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DISCONTINUED OPERATIONS
 12 Months Ended
Jun. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS
On June 1, 2020, the Company entered into a definitive agreement with KKR Bidco, regarding a strategic transaction for the sale of Coty’s Professional and Retail Hair business, including the Wella, Clairol, OPI and ghd brands (together, the “Wella Business”), valuing the businesses at $4,300.0 on a cash- and debt-free basis. KKR will own 60% of this separately managed business and Coty will own the remaining 40%. The transaction is expected to close during the first half of fiscal 2021.
On June 1, 2020, the Company and KKR Bidco also entered into a Separation Agreement, which sets forth the terms and conditions on which the Wella Business will be separated from the Company.
In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Wella transaction are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Additionally, the Wella Business assets and liabilities which will be included in the sale are presented as assets and liabilities held for sale in the Consolidated Balance Sheets. The Professional business historically comprised the Professional Beauty reportable segment and the Retail Hair business was historically included in the Americas, EMEA and Asia Pacific reportable segments.
The following table has selected financial information included in Net income from discontinued operations for the Wella Business.
Year Ended June 30,
202020192018
Net revenues$2,020.1 $2,360.6 $2,556.1 
Cost of sales689.7 808.0 889.7 
Gross profit1,330.4 1,552.6 1,666.4 
Selling, general and administrative expenses1,009.2 1,096.0 1,211.0 
Amortization expense95.5 106.8 108.5 
Restructuring costs7.5 10.0 38.3 
Asset impairment charges— 122.9 — 
Operating income218.2 216.9 308.6 
Interest expense, net(a)
49.7 50.6 64.4 
Other (income) expense, net(0.9)(1.0)2.2 
Income from discontinued operations before income taxes169.4 167.3 242.0 
Income tax on discontinued operations82.2 46.3 7.5 
Net income from discontinued operations$87.2 $121.0 $234.5 
(a) Interest expense was allocated to the discontinued operations due to a requirement in our Credit Agreement that cash generated from the divestiture of any businesses during the next nine months will be utilized to reduce our debt, other than a maximum of $500.0 that will be used to fund operations.
The following is selected financial information included in cash flows from discontinued operations for the Wella Business held for sale:
Year Ended June 30,
202020192018
NON-CASH OPERATING ITEMS
Depreciation and amortization$131.8 $157.5 $161.5 
Goodwill and intangible asset impairment charges— 123.0 — 
CASH FLOW FROM INVESTING ACTIVITIES
Capital Expenditures$24.7 $44.1 $68.8 

The major components of assets and liabilities of the Wella Business held for sale are provided below. The assets and liabilities held for sale will evolve up to the closing date for normal operational changes as well as contractual adjustments
including the finalization of local implementation agreements impacting the separation of the Wella Business in various countries.
Year Ended June 30,
2020(a)
2019
ASSETS
Trade receivables$168.0 $302.3 
Inventories269.2 293.2 
Prepaid expenses and other current assets134.9 177.7 
Property and equipment, net241.3 268.0 
(b)
Goodwill874.8 907.1 
(b)
Other intangible assets, net2,770.4 2,891.0 
(b)
Operating lease right of use asset73.4 — 
(b)
Deferred income taxes25.5 82.3 
(b)
Other noncurrent assets55.6 47.1 
(b)
Total current assets held for sale4,613.1 773.2 
Total noncurrent assets held for sale— 4,195.5 
TOTAL ASSETS HELD FOR SALE$4,613.1 $4,968.7 
LIABILITIES
Accounts payable$128.3 $149.2 
Accrued expenses and other current liabilities236.4 295.3 
Current operating lease liabilities17.2 — 
Income and other taxes payable15.8 12.0 
Long-term operating lease liabilities65.9 — 
Noncurrent deferred tax liabilities324.8 347.6 
(b)
Pension and other post-employment benefits140.8 145.8 
(b)
Other noncurrent liabilities27.5 29.3 
(b)
Total current liabilities held for sale956.7 456.5 
Total noncurrent liabilities held for sale— 522.7 
TOTAL LIABILITIES HELD FOR SALE$956.7 $979.2 

(a) The Company expects that the transaction will close in the first half of fiscal 2021. As such, for the period ended June 30, 2020, all assets and liabilities held for sale are reported as current assets and liabilities held for sale on the Consolidated Balance Sheets.
(b) Amounts as of June 30, 2019, are reflected as part of the noncurrent assets and liabilities held for sale.