XML 57 R22.htm IDEA: XBRL DOCUMENT
v3.20.1

SEGMENT DATA AND RELATED INFORMATION | 9 Months Ended
--- | ---
Mar. 31, 2020
Segment Reporting [Abstract] |
SEGMENT DATA AND RELATED INFORMATION | NOTE 16 – 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. Although the Company operates in one business segment, beauty products, management also evaluates performance on a product category basis. 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 the fiscal 2020 first quarter, 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 operating income of The Americas was increased, with a corresponding decrease in Europe, the Middle East & Africa, by $229 million and $640 million for the three and nine months ended March 31, 2019, 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 for the consolidated financial statements, as described in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019. 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. Other than the changes in total assets as a result of the acquisition discussed in Note 2 - Acquisition of Business, which impacted the Asia/Pacific region, and the goodwill and other intangible asset impairments discussed in Note 3 – Goodwill and Other Intangible Assets, which impacted The Americas region, there has been no significant variance in the total or long-lived asset values associated with the Company’s segment data since June 30, 2019.
|  | Three Months Ended March 31 |  |  |  | Nine Months Ended March 31 |  |
(In millions) |  | 2020 |  | 2019 |  | 2020 |  | 2019
PRODUCT CATEGORY DATA |  |  |  |  |  |  |  |
Net sales: |  |  |  |  |  |  |  |
Skin Care |  | $ | 1,723 |  |  | $ | 1,744 |  |  | $ | 5,770 |  |  | $ | 4,962 |
Makeup |  | 1,146 |  |  | 1,461 |  |  | 4,249 |  |  | 4,427 |
Fragrance |  | 349 |  |  | 392 |  |  | 1,392 |  |  | 1,401 |
Hair Care |  | 119 |  |  | 136 |  |  | 417 |  |  | 433 |
Other |  | 8 |  |  | 13 |  |  | 36 |  |  | 52 |
|  | 3,345 |  |  | 3,746 |  |  | 11,864 |  |  | 11,275 |
Returns associated with restructuring and other activities |  | — |  |  |  | (2) |  |  |  | — |  |  |  | (2) |
Net sales |  | $ | 3,345 |  |  | $ | 3,744 |  |  | $ | 11,864 |  |  | $ | 11,273 |
Operating income (loss) before charges associated with restructuring and other activities: |  |  |  |  |  |  |  |
Skin Care |  | $ | 418 |  |  | $ | 593 |  |  | $ | 1,822 |  |  | $ | 1,624 |
Makeup |  | (283) |  |  | 99 |  |  | (790) |  |  | 398 |
Fragrance |  | — |  |  | 17 |  |  | 163 |  |  | 156 |
Hair Care |  | (2) |  |  | (2) |  |  | 10 |  |  | 27 |
Other |  | 1 |  |  | 2 |  |  | 7 |  |  | 9 |
|  | 134 |  |  | 709 |  |  | 1,212 |  |  | 2,214 |
Reconciliation: |  |  |  |  |  |  |  |
Charges associated with restructuring and other activities |  | (25) |  |  | (35) |  |  | (63) |  |  | (117) |
Interest expense |  | (42) |  |  | (32) |  |  | (112) |  |  | (101) |
Interest income and investment income, net |  | 14 |  |  | 15 |  |  | 41 |  |  | 42 |
Other components of net periodic benefit cost |  | (1) |  |  | (1) |  |  | (3) |  |  | (1) |
Other income, net |  | — |  |  | 71 |  |  | 576 |  |  | 71 |
Earnings before income taxes |  | $ | 80 |  |  | $ | 727 |  |  | $ | 1,651 |  |  | $ | 2,108 |
GEOGRAPHIC DATA(1) |  |  |  |  |  |  |  |
Net sales: |  |  |  |  |  |  |  |
The Americas |  | $ | 892 |  |  | $ | 1,155 |  |  | $ | 3,278 |  |  | $ | 3,609 |
Europe, the Middle East & Africa |  | 1,525 |  |  | 1,625 |  |  | 5,281 |  |  | 4,825 |
Asia/Pacific |  | 928 |  |  | 966 |  |  | 3,305 |  |  | 2,841 |
|  | 3,345 |  |  | 3,746 |  |  | 11,864 |  |  |  | 11,275 |
Returns associated with restructuring and other activities |  | — |  |  | (2) |  |  | — |  |  | (2) |
Net sales |  | $ | 3,345 |  |  | $ | 3,744 |  |  | $ | 11,864 |  |  | $ | 11,273 |
Operating income (loss): |  |  |  |  |  |  |  |
The Americas |  | $ | (217) |  |  | $ | 200 |  |  | $ | (571) |  |  | $ | 583 |
Europe, the Middle East & Africa |  | 202 |  |  | 265 |  |  | 1,084 |  |  | 940 |
Asia/Pacific |  | 149 |  |  | 244 |  |  | 699 |  |  | 691 |
|  | 134 |  |  | 709 |  |  | 1,212 |  |  | 2,214 |
Charges associated with restructuring and other activities |  | (25) |  |  | (35) |  |  | (63) |  |  | (117) |
Operating income |  | $ | 109 |  |  | $ | 674 |  |  | $ | 1,149 |  |  | $ | 2,097 |
______________________________________________ (1)The net sales and operating income from the Company’s travel retail business are included in the Europe, the Middle East & Africa region.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration