LEASES

12 Months Ended

Jun. 30, 2023

The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 5 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 year ended June 30, 2021 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, 2023, 2022 and 2021.


Lease Cost:	Year Ended June 30, 2023			Year Ended June 30, 2022			Year Ended June 30, 2021
Operating lease cost	$	76.2		$	90.4		$	87.1
Short-term lease cost	0.9			1.2			0.8
Variable lease cost	40.3			39.3			49.5
Sublease income	(15.8)			(20.0)			(14.9)
Net lease cost	$	101.6		$	110.9		$	122.5

Other information:
Operating cash outflows from operating leases	(73.8)			(83.8)			$	(132.4)
Right-of-use assets obtained in exchange for lease obligations	25.7			104.9			$	27.8

Weighted-average remaining lease term - real estate	7.2 years			7.6 years			6.4 years
Weighted-average discount rate - real estate leases	4.13		%	3.85		%	3.57		%

Future minimum lease payments for the Company’s operating leases as of June 30, 2023 are as follows:


Fiscal Year Ending June 30,
2024	$	78.6
2025	60.0
2026	48.8
2027	41.0
2028	32.7
Thereafter	107.1
Total future lease payments	368.2
Less: imputed interest	(55.1)
Total present value of lease liabilities	$	313.1
Current operating lease liabilities	65.6
Long-term operating lease liabilities	247.5
Total operating lease liabilities	$	313.1

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.