v3.26.1
GOODWILL AND OTHER INTANGIBLE ASSETS, NET
 12 Months Ended
Jun. 30, 2026
Intangible Asset, Goodwill and Other [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS, NET GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Assessment for Impairments
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. 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 fiscal year 2026, the Company recorded $237.1 of goodwill impairment within the Consumer Beauty reporting unit. During fiscal years 2025 and 2024, the Company recorded no impairments of goodwill at the Company’s reporting units. During fiscal years 2026, 2025, and 2024, the Company recorded total impairments of $125.7, $212.8 and nil, respectively, related to indefinite-lived other intangible assets. Additionally, the Company recorded no impairments on finite-lived other intangible assets during fiscal years 2026, 2025, and 2024.
In the third quarter of fiscal 2026, due to continuing stock price declines and decreased market capitalization for the Company, as well as reduced forecasts for Consumer Beauty, the Company performed a quantitative impairment test. As a result of the quantitative test, during the third quarter of fiscal 2026, the Company recognized goodwill impairment charges of $237.1 within the Consumer Beauty Segment and asset impairment charges of $125.7 related to the CoverGirl, Max Factor, Sally Hansen, and Bourjois trademarks within the Consumer Beauty Segment. These impairments were recorded as Asset impairment charges in the Consolidated Statements of Operations.
To determine the fair value of our Consumer Beauty reporting unit during the third quarter fiscal 2026 quantitative impairment test, 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%.
The Company recorded no additional impairment charges related to goodwill and indefinite-lived other intangible assets as of May 1, 2026, the date of our annual impairment test.
Goodwill
Goodwill as of June 30, 2026, 2025 and 2024 is presented below:
PrestigeConsumer BeautyTotal
Gross balance at June 30, 2024$6,214.6 $1,731.2 $7,945.8 
Accumulated impairments(3,110.3)(929.8)(4,040.1)
Net balance at June 30, 2024$3,104.3 $801.4 $3,905.7 
Changes during the year ended June 30, 2025
Foreign currency translation125.5 31.0 156.5 
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 year ended June 30, 2026
Impairment Charges— (237.1)(237.1)
Foreign currency translation(14.4)(1.0)(15.4)
Gross balance at June 30, 20266,325.7 1,761.2 8,086.9 
Accumulated impairments(3,110.3)(1,166.9)(4,277.2)
Net balance at June 30, 2026$3,215.4 $594.3 $3,809.7 
Other Intangible Assets, net
    Other intangible assets, net as of June 30, 2026 and 2025 are presented below:
June 30,
2026		June 30,
2025
Indefinite-lived other intangible assets $626.7 $761.0 
Finite-lived other intangible assets, net 2,148.9 2,453.8 
Total Other intangible assets, net$2,775.6 $3,214.8 
The changes in the carrying amount of indefinite-lived other intangible assets are presented below:
TrademarksTotal
Gross balance at June 30, 2024$1,889.5 $1,889.5 
Accumulated impairments(944.9)(944.9)
Net balance at June 30, 2024$944.6 $944.6 
Changes during the year ended June 30, 2025
Impairment charges (a)
(212.8)(212.8)
Foreign currency translation29.2 29.2 
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 year ended June 30, 2026
Impairment charges
(125.7)(125.7)
Foreign currency translation(8.6)(8.6)
Gross balance at June 30, 2026$1,910.1 $1,910.1 
Accumulated impairments
(1,283.4)(1,283.4)
Net balance at June 30, 2026626.7 626.7 

Intangible assets subject to amortization are presented below:
CostAccumulated AmortizationAccumulated ImpairmentNet
June 30, 2025
License and collaboration agreements *
$3,765.8 $(1,614.9)$(19.6)$2,131.3 
Customer relationships766.0 (568.9)(5.5)191.6 
Trademarks318.2 (208.4)(0.5)109.3 
Product formulations and technology87.8 (66.2)— 21.6 
Total$4,937.8 $(2,458.4)$(25.6)$2,453.8 
June 30, 2026
License and collaboration agreements$3,695.3 $(1,817.7)$(19.6)$1,858.0 
Customer relationships760.7 (581.0)(5.5)174.2 
Trademarks
316.0 (218.7)(0.5)96.8 
Product formulations and technology87.5 (67.6)— 19.9 
Total$4,859.5 $(2,685.0)$(25.6)$2,148.9 

* On March 21, 2025, the KKW Collaboration Agreement was terminated pursuant to the KKW Sale Agreement. As such, the Company derecognized the remaining KKW Collaboration Agreement carrying amount of $142.5 as of the termination date.
Amortization expense totaled $262.0, $186.9 and $193.4 for the fiscal years ended June 30, 2026, 2025 and 2024, respectively.
Intangible assets subject to amortization are amortized principally using the straight-line method and have the following weighted-average remaining lives: (1)
Description
License and collaboration agreements14.7
Customer relationships14.5
Trademarks13.4
Product formulations and technology18.3
As of June 30, 2026, the remaining weighted-average life of all intangible assets subject to amortization is 14.6 years. (1)
The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below: (1)
2027$125.7 
2028121.9 
2029119.6 
2030115.7 
2031115.1 
(1) The remaining weighted-average life of all intangible assets subject to amortization and the estimated aggregate amortization expense reflects the impact of the early termination of the Gucci License. Refer to Note 25 — Subsequent Events.
License Agreements
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 regional basis, certain of the Company’s products which comprise a significant portion of the Company’s revenues. These licenses have initial terms covering various periods. Certain brand licenses provide for automatic extensions ranging from 2 to 10 year terms, at the Company’s discretion.