Coty Inc. has entered into a License Termination and Transition Agreement with Kering S.A. and Guccio Gucci S.p.A. to end the Gucci Beauty license early. The license, originally set to expire on June 30, 2028, will now terminate on June 30, 2027, with an option for Kering to extend this date. Coty will receive a total of approximately $400 million in consideration for the early termination. This includes $250 million in cash received upon signing the agreement and an additional $150 million to be received by September 30, 2027, subject to a potential $30 million holdback. Coty will also sell Kering an amount of Gucci Beauty inventory sufficient to support the transition. The proceeds are earmarked for debt reduction, reinvestment in Coty's core fragrance and beauty brands, and organizational optimization. The agreement also includes a mutual resolution of all pending litigation and related claims concerning the Gucci Beauty license. Coty has estimated cash taxes of approximately $30 million related to this transaction.