The Company tests goodwill and indefinite-lived other intangible assets for impairment at least annually as of May 1, or more frequently, if certain events or circumstances warrant. There were no impairments of goodwill at the Company’s reporting units or of indefinite-lived other intangible assets in fiscal 2018. During fiscal 2019, the Company recorded total goodwill impairments of $3,307.5 and total impairments on indefinite-lived other intangible assets of $389.8. Additionally, the Company recorded impairments of $19.7 on finite-lived other intangible assets during fiscal 2019.

During fiscal 2020, the Company recorded total goodwill impairments of $105.0 and total impairments on indefinite-lived other intangible assets of $329.0. The asset impairment charges were a result of the following impairment tests:

During the third quarter of fiscal 2020, the Company was adversely impacted by the COVID-19 global pandemic. This drove a decrease in net revenue, impacting all product categories across the Company, due to the closure of retail malls, professional salons, travel retail channels and certain mass channels. Management concluded that this adverse factor represented an indicator of impairment that warranted an interim impairment test for goodwill and certain other intangible assets. As a result, in the three and nine months ended March 31, 2020, the Company recognized asset impairment charges of $40.4, relating to indefinite-lived other intangible assets (related to the CoverGirl, Max Factor and Bourjois trademarks).

In the fourth quarter of fiscal 2020, as a result of the May 1, 2020 annual impairment test, the Company recorded asset impairment charges of $288.6 related to indefinite-lived other intangible assets (mainly CoverGirl, Max Factor, Philosophy and Bourjois trademarks) that are all considered corporate assets. There were no goodwill impairment charges recorded as a result of the annual impairment test performed on May 1, 2020.

On June 1, 2020, the Company entered into a definitive agreement with KKR, regarding a strategic transaction for the sale of Coty’s Wella Business. A goodwill impairment test should be performed immediately before and after a Company reorganizes its reporting structure if the reorganization would affect the composition of one or more of its reporting units. As a result, the Company determined that goodwill should be tested for potential impairment after considering the sale of the Wella Business. As a result of the June 1, 2020 impairment test, the Company recorded impairment charges of $105.0 related to goodwill of the EMEA reporting unit.

The Company considered several factors that developed during the fourth quarter of fiscal 2020 that led to the conclusion that the fair values of the EMEA reporting unit and certain indefinite-lived other intangible assets were below their carrying amounts. The continuing impacts of the COVID-19 pandemic was the principle driver of additional impairments. This drove a

decrease in net revenue, impacting all product categories across the Company, due to the slow economic recovery that arose as a result of the pandemic. The fair value of the EMEA reporting unit was also adversely impacted due to a loss of synergies from the sale of the Wella Business. Additionally the fair values of the trademarks were adversely affected by a 165 and 190 basis point increase in the discount rate compared to the May 1, 2019 and March 31, 2020 test, respectively.

The Company estimated the fair values of its reporting units based on discounted cash flow methodology reflecting the latest projections which included, among other things, the impact of COVID-19 pandemic for the Company’s impairment testing performed during the fourth quarter of our 2020 fiscal year. These projections assumed a gradual recovery from the COVID-19 pandemic beginning in early fiscal 2021 through the third quarter of fiscal 2021. These projections also considered the targeted reduction in the Company’s fixed cost structure in line with the announced Transformation Plan. These cost reductions will be achieved through a combination of further consolidating its supply network, headcount restructuring, and substantial reduction in its non-people costs.


	Americas		EMEA		APAC		Total
Gross balance at June 30, 2018	$	3,117.4	$	3,793.4	$	1,312.4	$	8,223.2
Accumulated impairments	(206.1)		(297.0)		(124.5)		(627.6)
Net balance at June 30, 2018	$	2,911.3	$	3,496.4	$	1,187.9	$	7,595.6

Changes during the year ended June 30, 2019
Impairment charges	(1,562.6)		(1,455.3)		(289.6)		(3,307.5)
Measurement period adjustments ^(a)	(2.2)		(4.8)		(2.7)		(9.7)

Foreign currency translation	(45.8)		(50.7)		(15.1)		(111.6)

Gross balance at June 30, 2019	$	3,069.4	$	3,737.9	$	1,294.6	$	8,101.9
Accumulated impairments	(1,768.7)		(1,752.3)		(414.1)		(3,935.1)
Net balance at June 30, 2019	$	1,300.7	$	1,985.6	$	880.5	$	4,166.8

Changes during the year ended June 30, 2020
Acquisitions ^(b)	128.6		—		—		128.6
Dispositions	(10.8)		(10.1)		(2.0)		(22.9)

Foreign currency translation	(75.0)		(88.9)		(29.7)		(193.6)
Impairment charges	—		(105.0)		—		(105.0)

Gross balance at June 30, 2020	$	3,112.2	$	3,638.9	$	1,262.9	$	8,014.0
Accumulated impairments	(1,768.7)		(1,857.3)		(414.1)		(4,040.1)
Net balance at June 30, 2020	$	1,343.5	$	1,781.6	$	848.8	$	3,973.9

^(a) Includes measurement period adjustments during the year ended June 30, 2019 in connection with the Burberry Beauty Business acquisition (Refer to Note 4—Business Combinations, Asset Acquisitions and Divestitures).

As described in Note 5 — Segment Reporting, the Company changed its segments during the third quarter ended March 31, 2020. As a result, the Company allocated goodwill to the new segments using a relative fair value approach. In addition, the Company completed an assessment of any potential goodwill impairment for all reporting units immediately prior to the reallocation and determined that no impairment existed. Further, the Company recast the goodwill and indefinite-lived intangible asset tables for the new segments.

As a result of the definitive agreement signed with KKR for the Wella Business (see Note 3 — Discontinued Operations), the results of the Wella Business are presented as discontinued operations. The Professional Beauty business has historically been reported as the Company’s Professional Beauty reportable segment, and the Retail Hair business has been included within EMEA, Americas and Asia Pacific reportable segments. The goodwill attributable to the Wella Business as of June 30, 2020, 2019 and 2018 is excluded from the preceding table and is reported as held for sale in the Consolidated Balance Sheets.


	Trademarks		Total
Gross balance at June 30, 2018	$	1,932.7	$	1,932.7
Accumulated impairments	(194.7)		(194.7)
Net balance at June 30, 2018	$	1,738.0	$	1,738.0

Changes during the year ended June 30, 2019
Impairment charges	(389.8)		(389.8)

Foreign currency translation	(18.7)		(18.7)

Gross balance at June 30, 2019	$	1,914.0	$	1,914.0
Accumulated impairments	(584.5)		(584.5)
Net balance at June 30, 2019	$	1,329.5	$	1,329.5

Changes during the year ended June 30, 2020
Impairment charges	(329.0)		(329.0)
Foreign currency translation	(5.0)		(5.0)

Gross balance at June 30, 2020	$	1,909.0	$	1,909.0
Accumulated impairments	(913.5)		(913.5)
Net balance at June 30, 2020	$	995.5	$	995.5


	Cost		Accumulated Amortization		Accumulated Impairment		Net
June 30, 2019
License and collaboration agreements	$	3,240.2	$	(873.1)	$	(19.6)	$	2,347.5
Customer relationships	978.6		(450.2)		(5.5)		522.9
Trademarks	451.2		(157.8)		(0.5)		292.9
Product formulations and technology	100.4		(61.9)		—		38.5
Total	$	4,770.4	$	(1,543.0)	$	(25.6)	$	3,201.8
June 30, 2020
License and collaboration agreements^(a)	$	3,861.2	$	(1,021.1)	$	(19.6)	$	2,820.5
Customer relationships^(a)	786.1		(427.3)		(5.5)		353.3
Trademarks	325.7		(154.0)		(0.5)		171.2
Product formulations and technology	86.2		(54.6)		—		31.6
Total	$	5,059.2	$	(1,657.0)	$	(25.6)	$	3,376.6

^(a)Includes License agreements and Customer relationships of $649.0 and $27.0, respectively resulting from the King Kylie acquisition on January 6, 2020 (Refer to Note 4—Business Combinations, Asset Acquisitions and Divestitures).

In September 2019, the Company divested all of its membership interest in Foundation, which held the net assets of Younique (including goodwill of $22.9 and other intangible assets of $228.6). (Refer to Note 4—Business Combinations, Asset Acquisitions and Divestitures).

In July 2018, the Company acquired a trademark associated with a preexisting license. As a result of the acquisition, the preexisting license was effectively terminated, and accordingly the Company recorded $12.6 of Asset impairment charges in the Consolidated Statement of Operations related to the license agreement.

The Company records assets for license agreements (“licenses”) acquired in transactions accounted for as business combinations. These licenses provide the Company with the exclusive right to manufacture and market on a worldwide and/or