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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of financial assets and liabilities measured at fair value on a recurring basis

The following table presents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021:

(In millions)						Level 1						Level 2						Level 3						Total
Assets:
Money market funds						$	2,079					$	—					$	—					$	2,079
Foreign currency forward contracts						—						52						—						52
Interest rate-related derivatives						—						15						—						15
Total						$	2,079					$	67					$	—					$	2,146
Liabilities:
Foreign currency forward contracts						$	—					$	56					$	—					$	56
DECIEM stock options						—						—						141						141
Total						$	—					$	56					$	141					$	197

The following table presents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2020:

(In millions)						Level 1						Level 2						Level 3						Total
Assets:
Money market funds						$	2,810					$	—					$	—					$	2,810
Foreign currency forward contracts						—						87						—						87
Interest rate-related derivatives						—						15						—						15
Total						$	2,810					$	102					$	—					$	2,912
Liabilities:
Foreign currency forward contracts						$	—					$	80					$	—					$	80
Interest rate-related derivatives						—						3						—						3
Contingent consideration						—						—						4						4
Total						$	—					$	83					$	4					$	87

Schedule of estimated fair values of financial instruments

The estimated fair values of the Company’s financial instruments are as follows:

						June 30
						2021												2020
(In millions)						Carrying Amount						Fair Value						Carrying Amount						Fair Value
Nonderivatives
Cash and cash equivalents						$	4,958					$	4,958					$	5,022					$	5,022
Current and long-term debt						5,569						6,262						6,136						6,902
Contingent consideration						—						—						4						4
DECIEM stock options						141						141						—						—
Derivatives
Foreign currency forward contracts – asset (liability), net						(4)						(4)						7						7
Interest rate-related derivatives – asset, net						15						15						12						12

Impairment charges measured at fair value on a nonrecurring basis, classified as Level 3

The following table presents the Company’s impairment charges for certain of its nonfinancial assets measured at fair value on a nonrecurring basis, classified as Level 3, during fiscal 2021, 2020 and 2019:

Fiscal 2021

(In millions)						Impairment Charges						Date of Fair Value Measurement						Fair Value(1)
Goodwill
GLAMGLOW						$	54					November 30, 2020						$	—
BECCA(2)						13						February 28, 2021						—
Other						4						June 30, 2021						—
Total						71												—
Other intangible assets, net (trademark and customer lists)
GLAMGLOW						52						November 30, 2020 April 1, 2021						11
BECCA(2)						34						February 28, 2021						—
Smashbox						11						April 1, 2021						21
Total						97												32
Long-lived assets						71						March 31, 2021 June 30, 2021						66
Total impairments						$	239											$	98

(1)See Note 6 – Goodwill and Other Intangible Assets for discussion of the valuation techniques used to measure fair value, the description of the inputs and information used to develop those inputs.

(2)See Note 8 – Charges Associated with Restructuring and Other Activities for further information relating to goodwill and other intangible asset impairment charges recorded in connection with the exit of the global distribution of BECCA products.

Fiscal 2020

(In millions)						Impairment Charges						Date of Fair Value Measurement						Fair Value(1)
Goodwill
Too Faced						$	592					March 31, 2020						$	13
Smashbox						72						March 31, 2020						—
Editions de Parfums Frédéric Malle						3						April 1, 2020						3
BECCA						85						June 30, 2020						13
GLAMGLOW						60						June 30, 2020						54
Total						812												83
Other intangible assets, net (trademark)
Too Faced						253						March 31, 2020						272
Smashbox						23						March 31, 2020						32
Editions de Parfums Frédéric Malle						11						April 1, 2020						21
BECCA						71						June 30, 2020						27
GLAMGLOW						6						June 30, 2020						57
Total						364												409
Other intangible assets, net (customer lists)
BECCA						35						June 30, 2020						7
Long-lived assets						215						June 30, 2020						200
Total impairments						$	1,426											$	699

(1)See Note 6 – Goodwill and Other Intangible Assets and Note 7 – Leases for discussion of the valuation techniques used to measure fair value, the description of the inputs and information used to develop those inputs.

Fiscal 2019

(In millions)						Impairment Charges						Date of Fair Value Measurement						Fair Value(1)
Smashbox
Goodwill						$	68					March 31, 2019						$	72
Other intangible assets, net (trademarks)						22						March 31, 2019						55
Total						$	90											$	127

(1)See Note 6 – Goodwill and Other Intangible Assets for discussion of the valuation techniques used to measure fair value, the description of the inputs and information used to develop those inputs.

Changes in the fair value of the contingent consideration obligations

Changes in the fair value of the contingent consideration obligations for the year ended June 30, 2021 are included in Selling, general and administrative expenses in the accompanying consolidated statements of earnings and were as follows:

(In millions)						Fair Value
Contingent consideration at June 30, 2020						$	4
Payments						(2)
Changes in fair value						(2)
Contingent consideration at June 30, 2021						$	—

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Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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