LEASES

The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 4 and 25 years. The Company utilizes these leased office facilities for use by its employees in countries in which the Company conducts its business. Leases are negotiated with third parties and, in some instances, contain renewal, expansion and termination options. The Company also subleases certain office facilities to third parties when the Company no longer intends to utilize the space. None of the Company’s leases restrict the payment of dividends or the incurrence of debt or additional lease obligations, or contain significant purchase options.

The following table provides additional information about the Company’s operating leases for the fiscal years ended June 30, 2025, 2024 and 2023.


Lease Cost:	Year Ended June 30, 2025			Year Ended June 30, 2024			Year Ended June 30, 2023
Operating lease cost	$	74.4		$	74.5		$	76.2
Short-term lease cost	3.3			3.4			0.9
Variable lease cost	44.4			41.7			40.3
Sublease income	(13.4)			(16.7)			(15.8)
Net lease cost	$	108.7		$	102.9		$	101.6

Other information:
Operating cash outflows from operating leases	(69.3)			(72.0)			$	(73.8)
Right-of-use assets obtained in exchange for lease obligations	60.9			32.6			$	25.7

Weighted-average remaining lease term - real estate	6.2 years			6.8 years			7.2 years
Weighted-average discount rate - real estate leases	4.29		%	4.52		%	4.13		%

Future minimum lease payments for the Company’s operating leases as of June 30, 2025 are as follows:


Fiscal Year Ending June 30,
2026	$	74.4
2027	66.0
2028	51.7
2029	43.5
2030	28.2
Thereafter	65.7
Total future lease payments	329.5
Less: imputed interest	(43.3)
Total present value of lease liabilities	$	286.2
Current operating lease liabilities	64.4
Long-term operating lease liabilities	221.8
Total operating lease liabilities	$	286.2

Table excludes obligations for leases with original terms of twelve months or less which have not been recognized as ROU assets or liabilities in the Consolidated Balance Sheets.

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

COTY INC. Leases Disclosure

About Leases Disclosures

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