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SEGMENT DATA AND RELATED INFORMATION | 12 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
SEGMENT DATA AND RELATED INFORMATION | SEGMENT DATA AND RELATED INFORMATION Reportable operating segments include components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the “Chief Executive”) in deciding how to allocate resources and in assessing performance. As a result of the similarities in the manufacturing, marketing and distribution processes for all of the Company’s products, much of the information provided in the consolidated financial statements is similar to, or the same as, that reviewed on a regular basis by the Chief Executive. Although the Company operates in one business segment, beauty products, management also evaluates performance on a product category basis. While the Company’s results of operations are also reviewed on a consolidated basis, the Chief Executive reviews data segmented on a basis that facilitates comparison to industry statistics. Accordingly, net sales, depreciation and amortization, and operating income are available with respect to the manufacture and distribution of skin care, makeup, fragrance, hair care and other products. These product categories meet the definition of operating segments and, accordingly, additional financial data are provided below. The “other” segment includes the sales and related results of ancillary products and services that do not fit the definition of skin care, makeup, fragrance and hair care. Product category performance is measured based upon net sales before returns associated with restructuring and other activities, and earnings before income taxes, other components of net periodic benefit cost, interest expense, interest income and investment income, net, other income, net and charges associated with restructuring and other activities. Returns and charges associated with restructuring and other activities are not allocated to the product categories because they result from activities that are deemed a Company-wide initiative to redesign, resize and reorganize select corporate functions and go-to-market structures. During fiscal 2020, changes were made to reflect certain Leading Beauty Forward enhancements made to the capabilities and cost structure of the Company’s travel retail business, which are primarily centralized in The Americas region, and resulted in a change to the royalty structure of the travel retail business to reflect the value created in The Americas region. Accordingly, the fiscal 2019 and 2018 operating income of The Americas was increased, with a corresponding decrease in Europe, the Middle East & Africa, by $866 million and $661 million, respectively, to conform with the current year methodology and presentation. The accounting policies for the Company’s reportable segments are substantially the same as those described in the summary of significant accounting policies, except for depreciation and amortization charges, which are allocated, primarily, based upon net sales. The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; thus, no additional information is produced for the Chief Executive or included herein.
|  | Year Ended June 30 |  |  |  |
(In millions) |  | 2020 |  | 2019 |  | 2018
PRODUCT CATEGORY DATA |  |  |  |  |  |
Net sales: |  |  |  |  |  |
Skin Care |  | $ | 7,382 |  |  | $ | 6,551 |  |  | $ | 5,595 |
Makeup |  | 4,794 |  |  | 5,860 |  |  | 5,633 |
Fragrance |  | 1,563 |  |  | 1,802 |  |  | 1,826 |
Hair Care |  | 515 |  |  | 584 |  |  | 570 |
Other |  | 40 |  |  | 69 |  |  | 67 |
|  | 14,294 |  |  | 14,866 |  |  | 13,691 |
Returns associated with restructuring and other activities |  | — |  |  | (3) |  |  | (8) |
Net sales |  | $ | 14,294 |  |  | $ | 14,863 |  |  | $ | 13,683 |
Depreciation and amortization: |  |  |  |  |  |
Skin Care |  | $ | 268 |  |  | $ | 202 |  |  | $ | 185 |
Makeup |  | 242 |  |  | 257 |  |  | 255 |
Fragrance |  | 71 |  |  | 69 |  |  | 64 |
Hair Care |  | 28 |  |  | 26 |  |  | 24 |
Other |  | 2 |  |  | 3 |  |  | 3 |
|  | $ | 611 |  |  | $ | 557 |  |  | $ | 531 |
Operating income (loss) before charges associated with restructuring and other activities: |  |  |  |  |  |
Skin Care |  | $ | 2,125 |  |  | $ | 1,925 |  |  | $ | 1,514 |
Makeup |  | (1,438) |  |  | 438 |  |  | 549 |
Fragrance |  | 17 |  |  | 140 |  |  | 176 |
Hair Care |  | (19) |  |  | 39 |  |  | 64 |
Other |  | 4 |  |  | 12 |  |  | 9 |
|  | 689 |  |  | 2,554 |  |  | 2,312 |
Reconciliation: |  |  |  |  |  |
Charges associated with restructuring and other activities |  | (83) |  |  | (241) |  |  | (257) |
Interest expense |  | (161) |  |  | (133) |  |  | (128) |
Interest income and investment income, net |  | 48 |  |  | 58 |  |  | 56 |
Other components of net periodic benefit cost |  | (4) |  |  | (2) |  |  | (3) |
Other income, net |  | 557 |  |  | 71 |  |  | — |
Earnings before income taxes |  | $ | 1,046 |  |  | $ | 2,307 |  |  | $ | 1,980 |
|  | Year Ended June 30 |  |  |  |
(In millions) |  | 2020 |  | 2019 |  | 2018
GEOGRAPHIC DATA(1) |  |  |  |  |  |
Net sales: |  |  |  |  |  |
The Americas |  | $ | 3,794 |  |  | $ | 4,741 |  |  | $ | 5,015 |
Europe, the Middle East & Africa |  | 6,262 |  |  | 6,452 |  |  | 5,634 |
Asia/Pacific |  | 4,238 |  |  | 3,673 |  |  | 3,042 |
|  | 14,294 |  |  | 14,866 |  |  | 13,691 |
Returns associated with restructuring and other activities |  | — |  |  | (3) |  |  | (8) |
Net sales |  | $ | 14,294 |  |  | $ | 14,863 |  |  | $ | 13,683 |
Operating income (loss): |  |  |  |  |  |
The Americas |  | $ | (1,044) |  |  | $ | 672 |  |  | $ | 872 |
Europe, the Middle East & Africa |  | 997 |  |  | 1,153 |  |  | 865 |
Asia/Pacific |  | 736 |  |  | 729 |  |  | 575 |
|  | 689 |  |  | 2,554 |  |  | 2,312 |
Charges associated with restructuring and other activities |  | (83) |  |  | (241) |  |  | (257) |
Operating income |  | $ | 606 |  |  | $ | 2,313 |  |  | $ | 2,055 |
Total assets: |  |  |  |  |  |
The Americas |  | $ | 9,189 |  |  | $ | 7,661 |  |  | $ | 7,558 |
Europe, the Middle East & Africa |  | 4,319 |  |  | 3,862 |  |  | 3,855 |
Asia/Pacific |  | 4,273 |  |  | 1,633 |  |  | 1,154 |
|  | $ | 17,781 |  |  | $ | 13,156 |  |  | $ | 12,567 |
Long-lived assets(2): |  |  |  |  |  |
The Americas |  | $ | 2,512 |  |  | $ | 1,230 |  |  | $ | 1,138 |
Europe, the Middle East & Africa |  | 1,306 |  |  | 647 |  |  | 525 |
Asia/Pacific |  | 519 |  |  | 191 |  |  | 160 |
|  | $ | 4,337 |  |  | $ | 2,068 |  |  | $ | 1,823 |
(1)The net sales and operating income from the Company's travel retail business are included in the Europe, the Middle East & Africa region, with the exception of the net sales of Dr. Jart+ products in the travel retail channel that are reflected in Korea in the Asia/Pacific region. (2)Includes property, plant and equipment, net. Fiscal 2020 also includes operating lease ROU assets, recognized as a result of the adoption of ASC 842. Refer to Note 7 – Leases for information. Net sales are predominantly attributed to a country within a geographic region based on the location of the customer. The Company is domiciled in the United States. Net sales in the United States, including net sales from travel retail locations, in fiscal 2020, 2019 and 2018 were $3,449 million, $4,295 million and $4,531 million, respectively. Net sales in mainland China, including net sales from travel retail locations, in fiscal 2020, 2019 and 2018 were approximately 24%, 17% and 13% of consolidated net sales, respectively, and no other country represented greater than 10% of the Company’s consolidated net sales. The Company’s long-lived assets in the United States at June 30, 2020, 2019 and 2018 were $2,192 million, $953 million and $912 million, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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