v3.21.1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
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9 Months Ended |
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Goodwill and Intangible Assets Disclosure [Abstract] |
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Schedule of goodwill by product category and related change in the carrying amount |
The following table presents goodwill by product category and the related change in the carrying amount:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (In millions) | | Skin Care | | Makeup | | Fragrance | | Hair Care | | Total | Balance as of June 30, 2020 | | | | | | | | | | | Goodwill | | $ | 519 | | | $ | 1,210 | | | $ | 254 | | | $ | 389 | | | $ | 2,372 | | Accumulated impairments | | (95) | | | (817) | | | (26) | | | (33) | | | (971) | | | | 424 | | | 393 | | | 228 | | | 356 | | | 1,401 | | | | | | | | | | | | | Goodwill acquired during the period | | — | | | 6 | | | — | | | 4 | | | 10 | | Impairment charges(1) | | (54) | | | (13) | | | — | | | — | | | (67) | | Translation adjustments, goodwill | | 21 | | | — | | | 4 | | | 3 | | | 28 | | Translation adjustments, accumulated impairments | | (1) | | | — | | | — | | | (2) | | | (3) | | | | (34) | | | (7) | | | 4 | | | 5 | | | (32) | | | | | | | | | | | | | Balance as of March 31, 2021 | | | | | | | | | | | Goodwill | | 540 | | | 1,216 | | | 258 | | | 396 | | | 2,410 | | Accumulated impairments | | (150) | | | (830) | | | (26) | | | (35) | | | (1,041) | | | | $ | 390 | | | $ | 386 | | | $ | 232 | | | $ | 361 | | | $ | 1,369 | | | | | | | | | | | | |
(1)A goodwill impairment charge of $13 million was recorded in connection with the exit of the global distribution of BECCA products and is included in Restructuring and other charges in the accompanying consolidated statements of earnings (loss) for the three and nine months ended March 31, 2021. See Note 4 – Charges Associated with Restructuring and Other Activities for further information relating to the Post-COVID Business Acceleration Program. See “Impairment Testing During the Nine Months Ended March 31, 2021” below for further information relating to fiscal 2021 impairment charges related to GLAMGLOW.
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Schedule of other intangible assets, by type |
Other intangible assets consist of the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2021 | | June 30, 2020 | (In millions) | | Gross Carrying Value | | Accumulated Amortization | | Total Net Book Value | | Gross Carrying Value | | Accumulated Amortization | | Total Net Book Value | Amortizable intangible assets: | | | | | | | | | | | | | Customer lists and other | | $ | 1,641 | | | $ | 564 | | | $ | 1,077 | | | $ | 1,590 | | | $ | 475 | | | $ | 1,115 | | License agreements | | 43 | | | 43 | | | — | | | 43 | | | 43 | | | — | | | | $ | 1,684 | | | $ | 607 | | | 1,077 | | | $ | 1,633 | | | $ | 518 | | | 1,115 | | Non-amortizable intangible assets: | | | | | | | | | | | | | Trademarks and other | | | | | | 1,217 | | | | | | | 1,223 | | Total intangible assets | | | | | | $ | 2,294 | | | | | | | $ | 2,338 | |
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Estimated aggregate amortization expense for the remainder of the current fiscal year and the next four years |
The estimated aggregate amortization expense for the remainder of fiscal 2021 and for each of the next four fiscal years is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fiscal | (In millions) | | 2021 | | 2022 | | 2023 | | 2024 | | 2025 | Estimated aggregate amortization expense | | $ | 24 | | | $ | 101 | | | $ | 100 | | | $ | 100 | | | $ | 100 | |
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Summary of impairment charges and carrying value of intangible assets |
A summary of the impairment charges for the three and nine months ended March 31, 2020 and the remaining trademark and goodwill carrying values as of March 31, 2020, for each reporting unit, are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Impairment Charge | | | | | (In millions) | | | | | | Three Months Ended March 31, 2020 | | Nine Months Ended March 31, 2020 | | Carrying Value | Reporting Unit: | | Product Category | | Region | | Trademark | | Goodwill | | Trademark | | Goodwill | | Trademark | | Goodwill | Too Faced | | Makeup | | The Americas | | $ | 42 | | | $ | 162 | | | $ | 253 | | | $ | 592 | | | $ | 272 | | | $ | 13 | | BECCA | | Makeup | | The Americas | | 14 | | | 35 | | | 47 | | | 70 | | | 51 | | | 28 | | Smashbox | | Makeup | | The Americas | | 1 | | | 26 | | | 23 | | | 72 | | | 32 | | | — | | GLAMGLOW | | Skin care | | The Americas | | 1 | | | 52 | | | 1 | | | 52 | | | 62 | | | 62 | | Total | | | | | | $ | 58 | | | $ | 275 | | | $ | 324 | | | $ | 786 | | | $ | 417 | | | $ | 103 | |
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- DefinitionTabular disclosure of amortizable finite-lived intangible assets, including the gross carrying amount and accumulated amortization along with disclosure of the carrying value of indefinite-lived intangible assets not subject to amortization, excluding goodwill, in total and by major class.
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- DefinitionTabular disclosure of impairment charges and carrying value of intangible assets.
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- DefinitionTabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.
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- DefinitionTabular disclosure of the amount of amortization expense expected to be recorded in succeeding fiscal years for finite-lived intangible assets.
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