LEASES

12 Months Ended

Jun. 30, 2021

The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 10 and 25 years. The Company utilizes these leased office facilities for use by its employees in countries in which the Company conducts its business. Leases are negotiated with third parties and, in some instances contain renewal, expansion and termination options. The Company also subleases certain office facilities to third parties when the Company no longer intends to utilize the space. None of the Company’s leases restricts the payment of dividends or the incurrence of debt or additional lease obligations, or contain significant purchase options.

Due to the divestiture of the Wella Business, lease assets, liabilities and expenses specific to this business for the fiscal years ended June 30, 2021 and 2020 are excluded from the subsequent tables.

The following table provides additional information about the Company’s operating leases for the fiscal years ended June 30, 2021 and 2020.


Lease Cost:	Year Ended June 30, 2021			Year Ended June 30, 2020
Operating lease cost	$	87.1		$	97.0
Short-term lease cost	0.8			2.3
Variable lease cost	49.5			53.4
Sublease income	(14.9)			(4.8)
Net lease cost	$	122.5		$	147.9

Other information:
Operating cash outflows from operating leases	(132.4)			(100.9)
Right-of-use assets obtained in exchange for lease obligations	27.8			6.3

Weighted-average remaining lease term - real estate	6.4 years			6.9 years
Weighted-average discount rate - real estate leases	3.57		%	3.09		%

The Company incurred net rent expense of $197.7 relating to operating leases under ASC 840 in fiscal year 2019. The Company collected payments from sub-lessors relating to facilities no longer in use by the Company of $9.4 for fiscal year 2019. The fiscal year ended 2019 rent expense and sub-lessor payments include amounts related to discontinued operations.

During fiscal 2021, 2020 and 2019, the Company recorded asset impairment charges of $0.6, $7.8 and $0.0. The fiscal 2020 impairment charges are recorded in selling, general and administrative expenses in the Consolidated Statements of Operations and primarily relate to abandonment of a retail store no longer in use.

Future minimum lease payments for the Company’s operating leases as of June 30, 2021 are as follows:


Fiscal Year Ending June 30,
2022	$	87.5
2023	68.5
2024	54.4
2025	42.2
2026	34.9
Thereafter	102.5
Total future lease payments	390.0
Less: imputed interest	(45.0)
Total present value of lease liabilities	$	345.0
Current operating lease liabilities	75.7
Long-term operating lease liabilities	269.3
Total operating lease liabilities	$	345.0

Table excludes obligations for leases with original terms of twelve months or less which have not been recognized as ROU assets or liabilities in the Consolidated Balance Sheets.