The Company's equity investments, classified as Equity investments in the Condensed Consolidated Balance Sheets are represented by the following:


	March 31, 2025		June 30, 2024
Equity method investments:
KKW Holdings (a)	$	—	$	5.6
Equity investments at fair value:
Wella (b)	1,000.0		1,085.0

Total equity investments	$	1,000.0	$	1,090.6

(a)On January 4, 2021, the Company completed its purchase of 20% of the outstanding equity of KKW Holdings, LLC ("KKW Holdings"). The Company accounted for this minority investment under the equity method, given it had the ability to exercise significant influence over, but not control, the investee. The carrying value of the Company’s investment included basis differences allocated to amortizable intangible assets. On March 21, 2025, the Company sold and derecognized its investment in KKW Holdings.

The Company recognized $0.7 and $0.7, respectively, during the three months ended March 31, 2025 and 2024, and $2.6 and $2.4 respectively, during the nine months ended March 31, 2025 and 2024 representing its share of the investee’s net loss in Other expense, net within the Condensed Consolidated Statements of Operations.

On March 21, 2025, the Company sold its 20% equity investment in KKW Holdings pursuant to an agreement entered into between the Company, KKW Holdings, and New KKW Holdings, LLC (the “KKW Sale Agreement”). This agreement terminated the collaboration agreement, which gave the Company the right and license to manufacture, advertise, promote, distribute, and sell certain Kim Kardashian beauty products and use certain intellectual property owned by or licensed to KKW Holdings (the “KKW Collaboration Agreement”). The total consideration received in this transaction was $74.0.

As a result of this transaction, the Company derecognized the remaining book value of the KKW Collaboration Agreement and related assets (See Footnote 7— Goodwill and Other Intangibles, net), and its investment in KKW Holdings. The Company recognized a loss of $71.0 related to the termination of the KKW Collaboration Agreement and a loss of $1.5 on the sale of its investment in KKW Holdings, included in Selling, General and Administrative expenses and Other expense, net, respectively in the Condensed Consolidated Statements of Operations.

The following table presents summarized financial information of the Company’s equity method investees for the period ending March 31, 2025. Amounts presented represent combined totals at the investee level and not the Company’s proportionate share:


	Three Months Ended March 31,				Nine Months Ended March 31,
	2025		2024		2025		2024
Summarized Statements of Operations information:
Net revenues	$	616.3	$	597.5	$	2,009.7	$	1,938.7
Gross profit	426.0		401.0		1,379.1		1,299.9
Operating income	45.3		28.5		193.1		153.0
Income before income taxes	—		(28.0)		48.8		(10.6)
Net income (loss)	4.2		(40.3)		(2.7)		17.2

The following table summarizes movements in equity investments with fair value option that are classified within Level 3 for the period ended March 31, 2025. There were no internal movements to or from Level 3 and Level 1 or Level 2 for the period ended March 31, 2025.


Equity investments at fair value:
Balance as of June 30, 2024	$	1,085.0



Total losses included in earnings	(85.0)
Balance as of March 31, 2025	$	1,000.0

The following table summarizes the significant unobservable inputs used in Level 3 valuation of the Company's investments carried at fair value as of March 31, 2025. Included in the table are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.

Fair value

Valuation technique

Unobservable
input

Range

Equity investments at fair value

1,000.0

Discounted cash flows

Discount rate

9.25% (a)

Growth rate

1.8% - 6.1% (a)

Market multiple

Revenue multiple

2.0x – 2.1x (b)

EBITDA multiple

9.4x – 10.3x (b)

(a)The primary unobservable inputs used in the fair value measurement of the Company's equity investments with fair value option, when using a discounted cash flow method, are the discount rate and revenue growth rate. Significant increases (decreases) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement. The Company estimates the discount rate based on the investees' projected cost of equity and debt. The revenue growth rate is forecasted for future years by the investee based on their best estimates. Significant increases (decreases) in the revenue growth rate in isolation would result in a significantly higher (lower) fair value measurement.

(b)The primary unobservable inputs used in the fair value measurement of the Company's equity investments with fair value option, when using a market multiple method, are the revenue multiple and EBITDA multiple. Significant increases (decreases) in the revenue multiple or EBITDA multiple in isolation would result in a significantly higher (lower) fair value measurement. The market multiples are derived from a group of guideline public companies.