EQUITY INVESTMENTS (Tables)

6 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Summary of equity investments

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

	December 31, 2022		June 30, 2022
Equity method investments:
KKW Holdings (a)	$	10.6	$	12.6
Equity investments at fair value:
Wella (b)	1,040.0		$	830.0
Total equity investments	1,050.6		$	842.6

(a)On January 4, 2021, the Company completed its purchase of 20% of the outstanding equity of KKW Holdings. The Company accounts for this minority investment under the equity method, given it has the ability to exercise significant influence over, but not control, the investee. The carrying value of the Company’s investment includes basis differences allocated to amortizable intangible assets.

The Company recognized $1.1 and $0.8, respectively, during the three months ended December 31, 2022 and 2021 and $2.0 and $1.4, respectively, during the six months ended December 31, 2022 and 2021 representing its share of the investee’s net loss in Other income, net within the Condensed Consolidated Statements of Operations.

(b)As of December 31, 2022 and June 30, 2022, the Company's stake in Wella was 25.9%.

The following table presents summarized financial information of the Company’s equity method investees for the period ending December 31, 2022. Amounts presented represent combined totals at the investee level and not the Company’s proportionate share:

	Three Months Ended December 31,				Six Months Ended December 31,
	2022		2021		2022		2021 (a)
Summarized Statements of Operations information:
Net revenues	$	660.6	$	744.3	$	1,257.2	$	1,363.5
Gross profit	420.3		508.4		814.9		938.1
Operating income	55.5		76.2		116.5		101.8
Income before income taxes	0.3		49.4		20.3		56.9
Net (loss) income	(1.5)		36.5		14.5		42.0

Summary of movement in equity investments

The following table summarizes movements in equity investments with fair value option that are classified within Level 3 for the period ended December 31, 2022. There were no internal movements to or from Level 3 and Level 1 or Level 2 for the period ended December 31, 2022.

Equity investments at fair value:
Balance as of June 30, 2022	$	830.0
Total gains included in earnings	210.0
Balance as of December 31, 2022	$	1,040.0

Summary of significant unobservable inputs used in Level 3 valuation

The following table summarizes the significant unobservable inputs used in Level 3 valuation of the Company's investments carried at fair value as of December 31, 2022. 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	$	1,040.0	Discounted cash flows	Discount rate	10.75% (a)
				Growth rate	1.8% - 7.2% (a)
			Market multiple	Revenue multiple	2.7x – 3.0x (b)
				EBITDA multiple	12.1x – 14.5x (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.