v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of (loss) income before income tax
(Loss) income before income taxes in fiscal 2026, 2025 and 2024 is presented below:
Year Ended June 30,
202620252024
United States$(531.3)$(696.0)$(591.1)
Foreign(78.9)351.2 795.6 
Total$(610.2)$(344.8)$204.5 
Schedule of components of income tax expense (benefit)
The components of the Company’s total provision (benefit) for income taxes during fiscal 2026, 2025 and 2024 are presented below:
Year Ended June 30,
202620252024
(Benefit) provision for income taxes:
Current:
Federal$13.5 $(7.8)$1.2 
State and local3.8 3.4 (3.5)
Foreign117.6 97.3 107.2 
Total134.9 92.9 104.9 
Deferred:
Federal5.8 (20.2)(36.7)
State and local(8.1)(16.9)(16.7)
Foreign(152.6)(50.4)43.6 
Total(154.9)(87.5)(9.8)
(Benefit) provision for income taxes$(20.0)$5.4 $95.1 
Schedule of effective income tax rate reconciliation
The reconciliation of the U.S. Federal statutory tax rate to the Company’s effective income tax rate during fiscal 2026 is presented below:
AmountTax Rate
U.S. Federal statutory tax rate$(128.1)21.0 %
State and local income tax, net of federal (national) income tax effect (a)$(3.4)0.6 %
Foreign tax effects
Brazil
Foreign rate differential$9.1 (1.5)%
State incentive credits$(17.0)2.8 %
Other$(1.1)0.2 %
Switzerland
Participation exemption on Wella sale$(34.0)5.6 %
Other$9.9 (1.6)%
Netherlands
Foreign rate differential$(19.3)3.2 %
Nondeductible impairment$31.6 (5.2)%
Other$13.7 (2.2)%
Germany
Other$(11.4)1.9 %
Other Foreign Jurisdictions$15.0 (2.5)%
Effect of changes in tax laws or rates enacted in the current period$— — %
Effect of cross-border tax laws (b)$104.3 (17.1)%
Tax credits$— — %
Changes in valuation allowances$5.7 (0.9)%
Nontaxable or nondeductible items
Nondeductible impairment$20.0 (3.3)%
Other$8.9 (1.5)%
Changes in unrecognized tax benefits$(12.5)2.0 %
Other$(11.4)1.9 %
Total$(20.0)3.3 %
(a)State taxes in California, Illinois, New Jersey, Florida, North Carolina, Texas, Maryland and Pennsylvania make up the majority (greater than 50%) of the tax effect in this category.
(b)Includes the impact of any tax credits
The reconciliation of the U.S. Federal statutory tax rate to the Company’s effective income tax rate during fiscal 2025 and 2024 is presented below:
Year Ended June 30,
20252024
Income (loss) before income taxes$(344.8)$204.5 
Provision for income taxes at statutory rate$(72.4)$42.9 
State and local taxes—net of federal benefit(10.6)(15.9)
Foreign tax differentials(0.1)20.9 
Change in valuation allowances97.8 38.9 
Change in unrecognized tax benefit34.3 (15.5)
Permanent differences—net43.9 7.6 
Non-deductible executive stock compensation11.0 19.7 
Currency Loss8.3 (22.5)
Russia exit uncertain tax position release(10.0)— 
Principal relocation revaluation— 27.6 
Nondeductible Interest Expense6.8 12.1 
Swiss Tax Credits-net of valuation allowance(2.4)(37.8)
Tax Rate Change Deferred Tax Liability Revaluation— 24.2 
Brazil tax recovery benefit(78.5)— 
Swiss Impairment(31.2)— 
Other8.5 (7.1)
Provision for income taxes$5.4 $95.1 
Effective income tax rate(1.6)%46.5 %
Schedule of deferred tax assets and liabilities
Significant components of deferred income tax assets and liabilities as of June 30, 2026 and 2025 are presented below:
June 30,
2026		June 30,
2025
Deferred income tax assets:
Inventories$8.7 $4.4 
Accruals and allowances91.0 64.1 
Sales returns16.1 16.3 
Share-based compensation5.1 4.0 
Employee benefits36.5 46.5 
Net operating loss carry forwards and tax credits442.3 376.3 
Capital loss carry forwards29.9 29.8 
Interest expense limitation carry forward210.2 173.5 
Lease liability21.0 16.1 
Principal relocation lease 308.8 347.6 
Property, plant and equipment2.5 42.0 
Derivative Instruments26.6 70.5 
Investment in partnerships13.9 — 
Other77.2 63.0 
Less: valuation allowances(287.7)(274.1)
Net deferred income tax assets1,002.1 980.0 
Deferred income tax liabilities:
Intangible assets675.6 753.6 
Licensing rights29.9 29.9 
Right of use asset18.5 22.8 
Investment in partnerships— 48.3 
Other24.9 31.7 
Deferred income tax liabilities748.9 886.3 
Net deferred income tax (liability) asset$253.2 $93.7 
Schedule of expirations of tax loss carryforwards
The expirations of tax loss carry forwards, amounting to $889.2 as of June 30, 2026, in each of the fiscal years ending June 30, are presented below:
Fiscal Year Ending June 30,United StatesWestern EuropeRest of WorldTotal
2027$— $— $9.8 $9.8 
2028— — 20.1 20.1 
2029— — 23.0 23.0 
2030— — 42.9 42.9 
2031 and thereafter— 424.8 368.6 793.4 
Total$— $424.8 $464.4 $889.2 
Schedule of reconciliation of unrecognized tax benefits
A reconciliation of the beginning and ending amount of UTBs is presented below:
Year Ended June 30,
202620252024
UTBs—July 1$240.8 $215.3 $235.5 
Additions based on tax positions related to the current year1.5 1.2 1.3 
Additions for tax positions of prior years4.2 50.8 15.8 
Reductions for tax positions of prior years(11.0)(6.0)(19.0)
Settlements(0.3)(0.3)(1.2)
Lapses in statutes of limitations(6.6)(33.1)(17.8)
Foreign currency translation1.9 12.9 0.7 
UTBs—June 30$230.5 $240.8 $215.3 
Schedule of cash flow
A summary of income taxes paid in 2026, net of refunds received, is as follows:
Amount
U.S. Federal$22.5 
U.S. State and Local (a)
4.2 
Foreign
Spain12.2 
France9.3 
Germany5.9 
Mexico6.8 
Netherlands9.4 
Singapore5.3 
United Arab Emirates5.4 
Other20.7 
Total$101.7 
(a) No single state or local jurisdiction accounts for more than 5% of the total income taxes paid.