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REVENUE RECOGNITION (Tables) | 12 Months Ended
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Jun. 30, 2021
Revenue from Contract with Customer [Abstract] |
Schedule of changes in allowance for credit losses | Changes in the allowance for credit losses are as follows:
(In millions) |  |
Balance at June 30, 2020 |  | $ | 36 |
ASC 326 cumulative effect adjustment (pre-tax) |  | 4 |
Adjustment for expected credit losses |  | (8) |
Write-offs, net & other |  | (12) |
Balance at June 30, 2021 |  | $ | 20 |
Schedule of significant changes in deferred revenue | Changes in deferred revenue are as follows:
|  | June 30
(In millions) |  | 2021 |  | 2020
Balance at the beginning of the year |  | $ | 279 |  |  | $ | 361 |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period |  | (201) |  |  | (271) |
Revenue deferred during the period |  | 294 |  |  | 189 |
Other |  | (1) |  |  | — |
Balance at the end of the year |  | $ | 371 |  |  | $ | 279 |
Adoption of ASC 606 | The following tables summarize impacts of the adoption of ASC 606 on the Company's fiscal 2019 consolidated financial statements:
Consolidated Statement of Earnings |  |  |  |  |
|  | June 30, 2019
(In millions, except per share data) |  | As Reported |  | Impact |  | Prior to the adoption of ASC 606
Net sales |  | $ | 14,863 |  |  | $ | 49 |  |  | $ | 14,912 |
Cost of sales |  | 3,387 |  |  | (300) |  |  | 3,087 |
Gross profit |  | 11,476 |  |  | 349 |  |  | 11,825 |
Selling, general and administrative |  | 8,857 |  |  | 370 |  |  | 9,227 |
Operating income |  | 2,313 |  |  | (21) |  |  | 2,292 |
Provision for income taxes |  | 513 |  |  | (5) |  |  | 508 |
Net earnings attributable to The Estée Lauder Companies Inc. |  | 1,785 |  |  | (16) |  |  | 1,769 |
Net earnings attributable to The Estée Lauder Companies Inc. per common share |  |  |  |  |  |
Basic |  | $ | 4.91 |  |  | $ | (.04) |  |  | $ | 4.87 |
Diluted |  | $ | 4.82 |  |  | $ | (.04) |  |  | $ | 4.78 |
Consolidated Balance Sheet |  |  |  |  |
|  | June 30, 2019
(In millions) |  | As Reported |  | Impact |  | Prior to the adoption of ASC 606
Accounts receivable, net |  | $ | 1,831 |  |  | $ | (202) |  |  | $ | 1,629 |
Inventory and promotional merchandise, net |  | 2,006 |  |  | (21) |  |  | 1,985 |
Other assets |  | 805 |  |  | (65) |  |  | 740 |
Total assets |  | 13,156 |  |  | (288) |  |  | 12,868 |
Other accrued liabilities |  | 2,599 |  |  | (452) |  |  | 2,147 |
Other noncurrent liabilities |  | 1,244 |  |  | (47) |  |  | 1,197 |
Total liabilities |  | 8,745 |  |  | (499) |  |  | 8,246 |
Retained earnings |  | 9,984 |  |  | 213 |  |  | 10,197 |
Accumulated other comprehensive loss |  | (563) |  |  | (2) |  |  | (565) |
Total stockholders' equity - The Estée Lauder Companies Inc. |  | 4,386 |  |  | 211 |  |  | 4,597 |
Consolidated Statement of Cash Flows |  |  |  |  |
|  | June 30, 2019
(In millions) |  | As Reported |  | Impact |  | Prior to the adoption of ASC 606
Net earnings |  | $ | 1,794 |  |  | $ | (16) |  |  | $ | 1,778 |
Changes in operating assets and liabilities |  |  |  |  |  |
Increase in accounts receivable, net |  | (169) |  |  | 5 |  |  | (164) |
Increase in inventory and promotional merchandise, net |  | (375) |  |  | (6) |  |  | (381) |
Increase in other assets, net |  | (62) |  |  | (5) |  |  | (67) |
Increase in other accrued and noncurrent liabilities |  | 285 |  |  | 22 |  |  | 307 |
Net cash flows provided by operating activities |  | 2,517 |  |  | — |  |  | 2,517 |

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