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INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2021

(Loss) income before income taxes from continuing operations in fiscal 2021, 2020 and 2019 is presented below:


	Year Ended June 30,
	2021		2020		2019
United States	$	(434.4)	$	(960.3)	$	(2,003.5)
Foreign	194.6		(507.3)		(1,941.9)
Total	$	(239.8)	$	(1,467.6)	$	(3,945.4)

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 2021, 2020 and 2019 are presented below:


	Year Ended June 30,
	2021		2020		2019
(Benefit) provision for income taxes from continuing operations:
Current:
Federal	$	3.8	$	—	$	0.8
State and local	14.9		(0.3)		8.2
Foreign	55.2		90.7		129.4
Total	73.9		90.4		138.4
Deferred:
Federal	41.1		(286.7)		(116.1)
State and local	5.4		(50.6)		(49.9)
Foreign	(292.4)		(130.8)		(27.2)
Total	(245.9)		(468.1)		(193.2)
Benefit for income taxes from continued operations	$	(172.0)	$	(377.7)	$	(54.8)

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 2021, 2020 and 2019 is presented below:


	Year Ended June 30,
	2021			2020			2019
Income (loss) from continuing operations before income taxes	$	(239.8)		$	(1,467.6)		$	(3,945.4)
Benefit for income taxes at statutory rate	$	(50.4)		$	(308.2)		$	(828.5)
State and local taxes—net of federal benefit	26.3			(28.0)			(28.5)
Foreign tax differentials	(23.3)			7.2			43.0
Change in valuation allowances	(3.8)			7.4			(0.8)
Change in unrecognized tax benefit	(18.0)			21.3			43.3

Permanent differences—net	(13.1)			14.3			5.0

Goodwill impairment	—			26.1			675.6
Principal relocation	(234.4)
Post-divestiture restructuring	130.0
Gain on sale of business adjustment	—			(132.1)			—
Other	14.7			14.3			36.1
Benefit for income taxes from continuing operations	$	(172.0)		$	(377.7)		$	(54.8)
Effective income tax rate	71.7		%	25.7		%	1.4		%

Schedule of deferred tax assets and liabilities

Significant components of deferred income tax assets and liabilities as of June 30, 2021 and 2020 are presented below:


	June 30, 2021		June 30, 2020
Deferred income tax assets:
Inventories	$	9.7	$	14.2
Accruals and allowances	86.4		66.9
Sales returns	16.4		12.9
Share-based compensation	5.8		10.1
Employee benefits	101.6		81.7
Net operating loss carry forwards and tax credits	295.4		446.5
Capital loss carry forwards	1.1		105.7
Interest expense limitation carry forward	15.5		122.1
Lease liability	24.3		22.6
Principal relocation lease liability	487.8		—
Property, plant and equipment	7.7		—
Other	36.8		54.3
Less: valuation allowances	(33.4)		(40.0)
Net deferred income tax assets	1,055.1		897.0
Deferred income tax liabilities:
Intangible assets	892.1		635.2
Property, plant and equipment	—		6.4
Licensing rights	23.3		20.9
Right of use asset	27.4		32.0
Other	28.7		15.2
Deferred income tax liabilities	971.5		709.7
Net deferred income tax asset	$	83.6	$	187.3

Expirations of tax loss carryforwards

The expirations of tax loss carry forwards, amounting to $1,343.8 as of June 30, 2021, 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
2022	$	—	$	—	$	4.0	$	4.0
2023	—		—		2.1		2.1
2024	—		—		5.5		5.5
2025	—		71.9		15.3		87.2
2026 and thereafter	—		1,050.4		194.6		1,245.0
Total	$	—	$	1,122.3	$	221.5	$	1,343.8

Reconciliation of unrecognized tax benefits

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


	Year Ended June 30,
	2021		2020		2019
UTBs—July 1	$	277.9	$	263.6	$	235.7
Additions based on tax positions related to the current year	32.1		15.9		43.9
Additions for tax positions of prior years	—		42.9		8.3
Reductions for tax positions of prior years	(4.5)		(27.6)		(9.6)
Settlements	(0.4)		(0.1)		(2.7)
Lapses in statutes of limitations	(33.3)		(12.7)		(9.0)
Foreign currency translation	8.1		(4.1)		(3.0)
UTBs—June 30	$	279.9	$	277.9	$	263.6