SEGMENT REPORTING

12 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

Operating segments (referred to as “segments”) include components of the enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company has designated its Chief Executive Officer as the CODM.

The Company has determined that its operating and reportable segments are Fragrances, Color Cosmetics and Skin & Body Care (also referred to as “segments”). The reportable segments also represent the Company’s product groupings. In addition to reflecting the Company’s business model, these segments also reflect how the CODM reviews operating results when making decisions about resources to be allocated to the segments and when assessing their performance. Fragrances products include a variety of men’s and women’s products and include fashion designer, celebrity and lifestyle brands. Color Cosmetics products include nail and other color cosmetics, consisting of lip, eye and other facial color products. Skin & Body Care products include shower gels, deodorants, skin care and sun treatment products.

During the first quarter of fiscal 2015, the Company evaluated the impact of the Organizational Redesign restructuring program (see Note 7) on the determination of its operating segments and reporting units. The Company concluded that its operating and reportable segments continue to be Fragrances, Color Cosmetics and Skin & Body Care. However, based on the organizational changes that result from the Organizational Redesign and the impact on the information used by the CODM, the Company reclassified the revenues and costs associated with one brand from the Fragrances to the Skin & Body Care operating segment. The revenues and costs associated with the reclassification of one brand from Fragrances to Skin & Body Care have been reflected for the fiscal years ending 2015, 2014, and 2013. Further, the Company has reclassified amounts presented for depreciation and amortization to reflect the fully allocated amounts included in Operating income (loss) of the segments. Revenue and cost relating to a brand that generates revenues from more than one of the Company’s product categories are allocated in their entirety to one of the operating segments based on the information used by the CODM, its organizational structure, and the product category that is deemed to be the strategic priority for the brand.

The Company evaluates segment performance based on several factors, including Operating income (loss). The Company uses Operating income (loss) as a measure of the segment performance as it excludes the impact of corporate-driven decisions related to interest expense and income taxes.

The items within Corporate relate to corporate-based responsibilities and decisions and are not used by the CODM to measure the underlying performance of the segments. Corporate primarily includes a component of share-based compensation expense, restructuring costs and certain other expense items not attributable to ongoing operating activities of the segments.

For grants issued prior to June 12, 2013, the effective date of the share-based compensation plan amendments, the component of share-based compensation included in Corporate represents  the difference between the grant date fair value  and the fair value at June 12, 2013 using equity plan accounting.  Corporate also includes share-based compensation expense related to the Special Share Purchase Transaction as discussed in Note 23.

With the exception of goodwill and acquired intangible assets, the Company does not identify or monitor assets by segment. The Company does not present assets by reportable segment since various assets are shared between reportable segments. The allocation of goodwill and acquired intangible assets by segment is presented in Note 11.

	Year Ended June 30,
SEGMENT DATA	2015			2014			2013
Net revenues:
Fragrances	$	2,178.3		$	2,324.0		$	2,312.8
Color Cosmetics	1,445.0			1,366.2			1,468.5
Skin & Body Care	771.9			861.4			867.8
Total	$	4,395.2		$	4,551.6		$	4,649.1
Depreciation and amortization (a) :
Fragrances	$	90.5		$	102.8		$	96.3
Color Cosmetics	99.9			92.6			91.3
Skin & Body Care	39.2			50.8			54.5
Corporate	1.3			4.5			17.5
Total	$	230.9		$	250.7		$	259.6
Operating income (loss):
Fragrances	$	352.7		$	341.2		$	354.9
Color Cosmetics	158.5			154.2			208.8
Skin & Body Care	33.1			(337.3		)	9.1
Corporate	(149.2		)	(132.4		)	(178.4		)
Total	$	395.1		$	25.7		$	394.4
Reconciliation:
Operating income	$	395.1		$	25.7		$	394.4
Interest expense, net	73.0			68.5			76.5
Loss on early extinguishment of debt	88.8			—			—
Other expense (income), net	—			1.3			(0.8		)
Income (loss) before income taxes	$	233.3		$	(44.1	)	$	318.7

^(a)  Subsequent to the issuance of the Company’s fiscal 2014 financial statements, the Company determined that amounts presented under depreciation and amortization by operating segment for 2014 and 2013 did not include allocations for corporate depreciation and amortization.  The depreciation and amortization for the operating segments was restated by allocating total Corporate depreciation and amortization of $34.5 and $31.9 in fiscal 2014 and 2013, respectively, from Corporate to the three operating segments, consistent with the allocation method used in fiscal 2015. There was no effect on total depreciation and amortization or segment operating income as previously presented. 

	Year Ended June 30,
	2015		2014		2013
GEOGRAPHIC DATA
Net revenues:
Americas (a)	$	1,696.0	$	1,703.8	$	1,914.8
EMEA (b)	2,166.0		2,302.9		2,188.9
Asia Pacific (c)	533.2		544.9		545.4
Total	$	4,395.2	$	4,551.6	$	4,649.1

^(a)  includes North & South America

^(b)  includes Europe, Middle East and Africa

^(c)includes Asia and Australia

	Year Ended June 30,
	2015		2014		2013
Net revenues:
U.S.	$	1,343.1	$	1,338.6	$	1,537.4
Switzerland (a):
Travel Retail and Export	482.9		497.8		500.6
United Kingdom	402.5		415.1		388.1
Netherlands	83.2		93.8		98.1
Domestic	30.2		34.8		36.3
Total Switzerland	998.8		1,041.5		1,023.1
All other	2,053.3		2,171.5		2,088.6
Total	$	4,395.2	$	4,551.6	$	4,649.1
Long-lived assets:
U.S.	$	2,713.9	$	2,921.2	$	2,924.3
All other	1,230.6		799.0		1,076.2
Total	$	3,944.5	$	3,720.2	$	4,000.5

^(a)  The Company’s subsidiaries in Switzerland generate revenues from sales in the United Kingdom (“U.K.”), the Netherlands and domestic sales in Switzerland as well as the Travel Retail and Export business (which sells to a large number of travel outlets, including duty free shops, airlines and other tax-free zones in several countries), as specified separately in the table above.

For Net revenues, a major country is defined as a group of subsidiaries in a country with combined revenues greater than 10% of consolidated net revenues or as otherwise deemed significant.

For Long-lived assets, a major country is defined as a group of subsidiaries within a country with combined long-lived assets greater than 10% of consolidated long-lived assets or as otherwise deemed significant. Long-lived assets include property and equipment, goodwill and other intangible assets.

No customer or group of affiliated customers accounted for more than 10% of the Company’s Net revenues in fiscal 2015, 2014 and 2013 or are otherwise deemed significant.

Within the Company’s reportable segments, product categories exceeding 5% of consolidated net revenues are presented below:

	Year Ended June 30,
PRODUCT CATEGORY	2015		2014		2013
Fragrances:
Designer	36.9	%	37.4	%	35.8	%
Lifestyle	7.4		7.6		6.9
Celebrity	5.3		6.0		7.0
Total	49.6	%	51.0	%	49.7	%
Color Cosmetics:
Nail Care	14.9	%	14.0	%	16.1	%
Other Color Cosmetics	18.0		16.0		15.5
Total	32.9	%	30.0	%	31.6	%
Skin & Body Care:
Body Care	10.9	%	12.6	%	12.3	%
Skin Care	6.6		6.4		6.4
Total	17.5	%	19.0	%	18.7	%
Total	100.0	%	100.0	%	100.0	%