COTY INC.COTY
COTY INC. Goodwill & Intangibles Disclosure
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. During fiscal years 2025, 2024, and 2023, the Company recorded no impairments of goodwill at the Company’s reporting units. During fiscal years 2025, 2024, and 2023, the Company recorded total impairments of $212.8, nil and nil, respectively, on indefinite-lived other intangible assets. Additionally, the Company recorded no impairments on finite-lived other intangible assets during fiscal years 2025, 2024, and 2023.
During the third quarter of fiscal 2025, the Company concluded that weakening demand in the color cosmetics market, particularly in the United States and Europe, combined with broader macroeconomic disruptions, signaled a deterioration in business climate. As a result of these adverse factors, during the third quarter of fiscal 2025, the Company recognized asset impairment charges of $84.0, $61.0, and $24.9 related to the Max Factor, CoverGirl and Bourjois trademarks within the Consumer Beauty Segment and $42.9 related to the Philosophy trademark within the Prestige Segment. These impairments were recorded as Asset impairment charges in the Consolidated Statements of Operations.
Goodwill
Goodwill as of June 30, 2025, 2024 and 2023 is presented below:
| Prestige | Consumer Beauty | Total | |||||||||||||||
| Gross balance at June 30, 2023 | $ | 6,279.2 | $ | 1,748.8 | $ | 8,028.0 | |||||||||||
| Accumulated impairments | (3,110.3) | (929.8) | (4,040.1) | ||||||||||||||
| Net balance at June 30, 2023 | $ | 3,168.9 | $ | 819.0 | $ | 3,987.9 | |||||||||||
| Changes during the year ended June 30, 2024 | |||||||||||||||||
| Foreign currency translation | (64.6) | (17.6) | (82.2) | ||||||||||||||
| 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 translation | 125.5 | 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 | |||||||||||
Other Intangible Assets, net
Other intangible assets, net as of June 30, 2025 and 2024 are presented below:
| June 30, 2025 | June 30, 2024 | ||||||||||
| Indefinite-lived other intangible assets | $ | 761.0 | $ | 944.6 | |||||||
| Finite-lived other intangible assets, net | 2,453.8 | 2,621.0 | |||||||||
| Total Other intangible assets, net | $ | 3,214.8 | $ | 3,565.6 | |||||||
The changes in the carrying amount of indefinite-lived other intangible assets are presented below:
| Trademarks | Total | ||||||||||
| Gross balance at June 30, 2023 | $ | 1,895.7 | $ | 1,895.7 | |||||||
| Accumulated impairments | (944.9) | (944.9) | |||||||||
| Net balance at June 30, 2023 | $ | 950.8 | $ | 950.8 | |||||||
| Changes during the year ended June 30, 2024 | |||||||||||
| Foreign currency translation | (6.2) | (6.2) | |||||||||
| 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 | (212.8) | (212.8) | |||||||||
| Foreign currency translation | 29.2 | 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 | |||||||||
Intangible assets subject to amortization are presented below:
| Cost | Accumulated Amortization | Accumulated Impairment | Net | ||||||||||||||||||||
| June 30, 2024 | |||||||||||||||||||||||
License and collaboration agreements | $ | 3,715.1 | $ | (1,422.5) | $ | (19.6) | $ | 2,273.0 | |||||||||||||||
| Customer relationships | 741.8 | (527.8) | (5.5) | 208.5 | |||||||||||||||||||
| Trademarks | 311.7 | (192.4) | (0.5) | 118.8 | |||||||||||||||||||
| Product formulations and technology | 83.7 | (63.0) | — | 20.7 | |||||||||||||||||||
| Total | $ | 4,852.3 | $ | (2,205.7) | $ | (25.6) | $ | 2,621.0 | |||||||||||||||
| June 30, 2025 | |||||||||||||||||||||||
| License 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 | |||||||||||||||
* 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 $186.9, $193.4 and $191.8 for the fiscal years ended June 30, 2025, 2024 and 2023, respectively.
Intangible assets subject to amortization are amortized principally using the straight-line method and have the following weighted-average remaining lives:
| Description | |||||
| License and collaboration agreements | 20.2 | ||||
| Customer relationships | 15.2 | ||||
| Trademarks | 13.8 | ||||
| Product formulations and technology | 19.3 | ||||
As of June 30, 2025, the remaining weighted-average life of all intangible assets subject to amortization is 19.5 years.
The estimated aggregate amortization expense for each of the following fiscal years ending June 30 is presented below:
| 2026 | $ | 149.4 | |||
| 2027 | 139.8 | ||||
| 2028 | 136.3 | ||||
| 2029 | 134.2 | ||||
| 2030 | 130.5 | ||||
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.
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.