The Company tests goodwill and indefinite-lived 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 in fiscal 2025. To determine the fair value of the reporting units, the Company uses either a combination of the income and market approaches or solely the income approach, when the market approach is less representative of fair value. The Company believes either the blended approach or the income approach are indicative of the factors a market participant would consider when performing a similar valuation. The trademarks’ fair values are based upon the income approach, primarily utilizing the relief from royalty methodology.

During the third quarter of fiscal 2026, the Company’s stock price experienced a further decline, resulting in a decrease in market capitalization. In addition, the Company experienced overall sales declines within Consumer Beauty, particularly in mass fragrance and color cosmetics in the United States and Europe, which led to revisions to internal forecasts for Consumer Beauty. Based on the totality of the facts and circumstances evaluated, the Company concluded that it was more likely than not that the fair values of its reporting units were below the carrying amounts as of March 31, 2026. Therefore, we performed an interim quantitative impairment test.

To determine the fair value of our Consumer Beauty reporting unit, the Company used annual revenue growth rates of up to 2.4% and a discount rate of 11.50%. The Company determined the fair value of the CoverGirl trademark using annual growth rates of up to 2.0% and a discount rate of 13.2%. The Company determined the fair value of the Sally Hansen trademark using annual revenue growth rates of up to 2.0% and a discount rate of 12.5%. The Company determined the fair value of the Max Factor trademark using annual revenue growth rates of up to 2.0% and a discount rate of 15.3%. The Company determined the fair value of the Bourjois trademark using annual revenue growth rates of up to 2.0% and a discount rate of 21.2%.

Based on the interim quantitative impairment test performed for the period ended March 31, 2026, the Company recognized asset impairment charges of $362.8, of which $237.1 relates to goodwill impairment within the Consumer Beauty reporting unit, and $125.7 relates to indefinite-lived other intangible assets (related to the CoverGirl, Max Factor, Sally Hansen, and Bourjois trademarks). These impairments are recorded as Asset impairment charges in the Condensed Consolidated Statements of Operations.

Goodwill as of March 31, 2026 and June 30, 2025 is presented below:


	Prestige		Consumer Beauty		Total
Gross balance at June 30, 2025	$	6,340.1	$	1,762.2	$	8,102.3
Accumulated impairments	(3,110.3)		(929.8)		(4,040.1)
Net balance at June 30, 2025	$	3,229.8	$	832.4	$	4,062.2

Changes during the period ended March 31, 2026


Foreign currency translation	(13.3)		(1.8)		(15.1)
Impairment charges	—		(237.1)		(237.1)

Gross balance at March 31, 2026	$	6,326.8	$	1,760.4	$	8,087.2
Accumulated impairments	(3,110.3)		(1,166.9)		(4,277.2)
Net balance at March 31, 2026	$	3,216.5	$	593.5	$	3,810.0

Other intangible assets, net as of March 31, 2026 and June 30, 2025 are presented below:


	March 31, 2026		June 30, 2025
Indefinite-lived other intangible assets	$	628.7	$	761.0
Finite-lived other intangible assets, net	2,231.9		2,453.8
Total Other intangible assets, net	$	2,860.6	$	3,214.8

The changes in the carrying amount of indefinite-lived other intangible assets are presented below:


	Trademarks		Total
Gross balance at June 30, 2025	$	1,918.7	$	1,918.7
Accumulated impairments	(1,157.7)		(1,157.7)
Net balance at June 30, 2025	$	761.0	$	761.0

Changes during the period ended March 31, 2026

Foreign currency translation	(6.6)		(6.6)
Impairment charges	(125.7)		(125.7)

Gross balance at March 31, 2026	$	1,912.1	$	1,912.1
Accumulated impairments	(1,283.4)		(1,283.4)
Net balance at March 31, 2026	$	628.7	$	628.7

Intangible assets subject to amortization are presented below:


	Cost		Accumulated Amortization		Accumulated Impairment		Net
June 30, 2025
License agreements and collaboration agreements	$	3,765.8	$	(1,614.9)	$	(19.6)	$	2,131.3
Customer relationships	766.0		(568.9)		(5.5)		191.6
Trademarks	318.2		(208.4)		(0.5)		109.3
Product formulations and technology	87.8		(66.2)		—		21.6
Total	$	4,937.8	$	(2,458.4)	$	(25.6)	$	2,453.8
March 31, 2026
License agreements and collaboration agreements	$	3,711.8	$	(1,758.9)	$	(19.6)	$	1,933.3
Customer relationships	761.9		(578.0)		(5.5)		178.4
Trademarks	316.5		(216.1)		(0.5)		99.9
Product formulations and technology	87.5		(67.2)		—		20.3
Total	$	4,877.7	$	(2,620.2)	$	(25.6)	$	2,231.9

Amortization expense was $74.5 and $45.9 for the three months ended March 31, 2026 and 2025, respectively, and $187.9 and $141.3 for the nine months ended March 31, 2026 and 2025, respectively.