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INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2020

(Loss) income before income taxes from continuing operations in fiscal 2020, 2019 and 2018 is presented below:


	Year Ended June 30,
	2020		2019		2018
United States	$	(960.3)	$	(2,003.5)	$	(379.3)
Foreign	(507.3)		(1,941.9)		(15.2)
Total	$	(1,467.6)	$	(3,945.4)	$	(394.5)

Schedule of components of income tax expense (benefit)

The components of the Company’s total (benefit) provision for income taxes from continuing operations during fiscal 2020, 2019 and 2018 are presented below:


	Year Ended June 30,
	2020		2019		2018
(Benefit) provision for income taxes from continuing operations:
Current:
Federal	$	—	$	0.8	$	0.2
State and local	(0.3)		8.2		9.8
Foreign	90.7		129.4		(33.9)
Total	90.4		138.4		(23.9)
Deferred:
Federal	(286.7)		(116.1)		87.7
State and local	(50.6)		(49.9)		1.3
Foreign	(130.8)		(27.2)		(97.3)
Total	(468.1)		(193.2)		(8.3)
Benefit for income taxes from continued operations	$	(377.7)	$	(54.8)	$	(32.2)

Schedule of effective income tax rate reconciliation

The reconciliation of the U.S. Federal statutory tax rate to the Company’s effective income tax rate during fiscal 2020, 2019 and 2018 is presented below:


	Year Ended June 30,
	2020			2019			2018
Income (loss) from continuing operations before income taxes	$	(1,467.6)		$	(3,945.4)		$	(394.5)
Benefit for income taxes at statutory rate	$	(308.2)		$	(828.5)		$	(110.7)
State and local taxes—net of federal benefit	(28.0)			(28.5)			6.8
Foreign tax differentials	7.2			43.0			(22.7)
Change in valuation allowances	7.4			(0.8)			3.8
Change in unrecognized tax benefit	21.3			43.3			(26.7)
Tax Act	—			—			123.0
Permanent differences—net	14.3			5.0			(9.3)
Amortization on intercompany sale	—			—			1.9
Goodwill impairment	26.1			675.6			—
Gain on sale of business adjustment	(132.1)			—			—
Other	14.3			36.1			1.7
Benefit for income taxes from continuing operations	$	(377.7)		$	(54.8)		$	(32.2)
Effective income tax rate	25.7		%	1.4		%	8.2		%

Schedule of deferred tax assets and liabilities

Significant components of deferred income tax assets and liabilities as of June 30, 2020 and 2019 are presented below:


	June 30, 2020		June 30, 2019
Deferred income tax assets:
Inventories	$	14.2	$	21.2
Accruals and allowances	66.9		50.5
Sales returns	12.9		16.0
Share-based compensation	10.1		11.1
Employee benefits	81.7		102.6
Net operating loss carry forwards and tax credits	446.5		268.4
Capital loss carry forwards	105.7		—
Interest expense limitation carry forward	122.1		52.3
Lease liability	22.6		8.0
Other	54.3		32.2
Less: valuation allowances	(40.0)		(59.2)
Net deferred income tax assets	897.0		503.1
Deferred income tax liabilities:
Intangible assets	635.2		637.9
Property, plant and equipment	6.4		18.3
Unrealized gain	—		0.5
Licensing rights	20.9		23.7
Right of use asset	32.0		—
Other	15.2		63.6
Deferred income tax liabilities	709.7		744.0
Net deferred income tax asset (liability)	$	187.3	$	(240.9)

Expirations of tax loss carryforwards

The expirations of tax loss carry forwards, amounting to $2,075.5 as of June 30, 2020, in each of the fiscal years ending June 30, are presented below:


Fiscal Year Ending June 30,	United States		Western Europe		Rest of World		Total
2021	$	—	$	—	$	11.1	$	11.1
2022	—		—		3.5		3.5
2023	—		—		5.6		5.6
2024	—		0.1		7.0		7.1
2025 and thereafter	645.5		1,246.8		155.9		2,048.2
Total	$	645.5	$	1,246.9	$	183.1	$	2,075.5

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of UTBs is presented below:


	Year Ended June 30,
	2020		2019		2018
UTBs—July 1	$	263.6	$	235.7	$	256.7
Additions based on tax positions related to the current year	15.9		43.9		43.6
Additions for tax positions of prior years	42.9		8.3		29.6
Reductions for tax positions of prior years	(27.6)		(9.6)		(39.9)
Settlements	(0.1)		(2.7)		(42.3)
Lapses in statutes of limitations	(12.7)		(9.0)		(10.4)
Foreign currency translation	(4.1)		(3.0)		(1.6)
UTBs—June 30	$	277.9	$	263.6	$	235.7