On December 18, 2025, the Company completed the sale of its remaining 25.8% equity interest in Wella to an entity affiliated with Kohlberg Kravis Roberts & Co. L.P. ("KKR"). Under the terms of the Purchase and Sale Agreement, the Company received $750.0 in cash consideration and a right to future proceeds from a subsequent sale or initial public offering of Wella, after KKR achieves a preferred return (the "Wella Distribution Rights"). The fair value of the Wella Distribution Rights recognized at the closing date was $58.0, and is included in Other noncurrent assets in the Consolidated Balance Sheets.

The Company recognized a loss on sale of $201.9 included in Other expense (income), net in the Consolidated Statements of Operations as a result of this transaction for the year ended June 30, 2026.


Cash proceeds	$	750.0
Wella Distribution Rights	58.0
Total consideration	808.0

Less:
Wella investment carrying value	1,003.0
Transaction and other costs to sell	6.9

Loss on sale of Wella investment	$	(201.9)

The fair value of the Wella Distribution Rights was estimated using a Monte Carlo simulation incorporating significant unobservable inputs, including expected volatility of Wella’s equity value based on historical volatility of comparable companies. The Monte Carlo simulation incorporated multiple scenarios for Wella’s enterprise value, including timing of exit, and distribution waterfall provisions. The fair value of the Wella Distribution Rights is classified as Level 3 within the fair value hierarchy. Changes in fair value are recorded in Other expense (income), net in the Consolidated Statement of Operations.

During fiscal 2026, the fair value of the Wella Distribution Rights decreased by $19.0, primarily due to the reduction in the remaining time to the assumed exit dates used in the valuation model.

The estimated fair value remains sensitive to changes in the unobservable inputs used in the valuation model. Increases in expected equity volatility would generally result in a higher fair value. The valuation reflects discrete assumed exit dates. Accordingly, as time progresses toward those dates, the remaining time to exit decreases, which may reduce the time value component of the instrument, all else equal. Changes in assumptions regarding the nature, probability and timing of liquidity events, timing of proceeds, and the estimated enterprise value of Wella could also have a significant impact on the fair value of the Wella Distribution Rights. Due to the use of multiple interdependent assumptions in the Monte Carlo simulation, the Company does not isolate the impact of individual inputs; however, reasonably possible changes in the significant unobservable inputs could result in a material increase or decrease in the fair value.

On March 31, 2025, the Company sold its 20% equity investment in KKW Holdings pursuant to an agreement entered into between the Company, KKW Holdings, and New KKW Holdings, LLC (the “KKW Sale Agreement”). This agreement terminated the collaboration agreement, which gave the Company the right and license to manufacture, advertise, promote, distribute, and sell certain Kim Kardashian beauty products and use certain intellectual property owned or licensed to KKW Holdings (the “KKW Collaboration Agreement”). The total consideration received in this transaction was $74.0.

As a result of this transaction, the Company derecognized the remaining book value of the KKW Collaboration Agreement and related assets (See Footnote 9— Goodwill and Other Intangibles, net), and its investment in KKW Holdings. The Company recognized a loss of $71.0 related to the termination of KKW Collaboration Agreement and a loss of $1.5 on the sale of its investment in KKW Holdings, including in Selling, General, Administrative expenses and Other expense, net, respectively in the Consolidated Statement of Operations.

The following table presents summarized financial information of the Company’s former equity method investees for the years ended June 30, 2026 and 2025. Amounts presented represent combined totals at the investee level and not the Company’s proportionate share:


Summarized Statements of Operations information:	Year Ended June 30, 2026		Year Ended June 30, 2025
Net revenues	$	1,526.9	$	2,692.9
Gross profit	1,054.6		1,842.3
Operating income	191.8		230.9
Income (loss) before income taxes	109.3		33.4
Net loss	66.0		(15.0)


Summarized Balance Sheet information:	June 30, 2025
Current assets	$	1,133.8
Noncurrent assets	4,177.9
Total assets	5,311.7
Current liabilities	991.6
Noncurrent liabilities	2,762.9
Total liabilities	3,754.5



Summarized balance sheet information relates to Wella as of June 30, 2025. The Company no longer held an equity interest in Wella as of June 30, 2026 following the sale of its investment on December 18, 2025.