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SEGMENT DATA AND RELATED INFORMATION | 6 Months Ended
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Dec. 31, 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. 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 our product categories or geographic regions because they are centrally directed and controlled, are not included in internal measures of product category or geographic region performance and result from activities that are deemed Company-wide initiatives to redesign, resize and reorganize select areas of the business. 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, 2020. 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. There has been no significant variance in the total or long-lived asset values associated with the Company’s segment data since June 30, 2020.
|  | Three Months Ended December 31 |  | Six Months Ended December 31
(In millions) |  | 2020 |  | 2019 |  | 2020 |  | 2019
PRODUCT CATEGORY DATA |  |  |  |  |  |  |  |
Net sales: |  |  |  |  |  |  |  |
Skin Care |  | $ | 2,819 |  |  | $ | 2,205 |  |  | $ | 4,854 |  |  | $ | 4,047 |
Makeup |  | 1,247 |  |  | 1,660 |  |  | 2,225 |  |  | 3,103 |
Fragrance |  | 618 |  |  | 581 |  |  | 1,024 |  |  | 1,043 |
Hair Care |  | 154 |  |  | 162 |  |  | 290 |  |  | 298 |
Other |  | 15 |  |  | 16 |  |  | 22 |  |  | 28 |
Net sales |  | $ | 4,853 |  |  | $ | 4,624 |  |  | $ | 8,415 |  |  | $ | 8,519 |
Operating income (loss) before charges associated with restructuring and other activities: |  |  |  |  |  |  |  |
Skin Care |  | $ | 928 |  |  | $ | 772 |  |  | $ | 1,649 |  |  | $ | 1,404 |
Makeup |  | 28 |  |  | (611) |  |  | (43) |  |  | (507) |
Fragrance |  | 141 |  |  | 97 |  |  | 201 |  |  | 163 |
Hair Care |  | 4 |  |  | 12 |  |  | 7 |  |  | 12 |
Other |  | (1) |  |  | 4 |  |  | — |  |  | 6 |
|  | 1,100 |  |  | 274 |  |  | 1,814 |  |  | 1,078 |
Reconciliation: |  |  |  |  |  |  |  |
Charges associated with restructuring and other activities |  | (37) |  |  | (13) |  |  | (46) |  |  | (38) |
Interest expense |  | (43) |  |  | (38) |  |  | (88) |  |  | (70) |
Interest income and investment income, net |  | 17 |  |  | 13 |  |  | 31 |  |  | 27 |
Other components of net periodic benefit cost |  | (7) |  |  | (1) |  |  | (10) |  |  | (2) |
Other income |  | — |  |  | 576 |  |  | — |  |  | 576 |
Earnings before income taxes |  | $ | 1,030 |  |  | $ | 811 |  |  | $ | 1,701 |  |  | $ | 1,571 |
GEOGRAPHIC DATA(1) |  |  |  |  |  |  |  |
Net sales: |  |  |  |  |  |  |  |
The Americas |  | $ | 1,048 |  |  | $ | 1,226 |  |  | $ | 1,921 |  |  | $ | 2,386 |
Europe, the Middle East & Africa |  | 2,030 |  |  | 2,079 |  |  | 3,570 |  |  | 3,756 |
Asia/Pacific |  | 1,775 |  |  | 1,319 |  |  | 2,924 |  |  | 2,377 |
Net sales |  | $ | 4,853 |  |  | $ | 4,624 |  |  | $ | 8,415 |  |  | $ | 8,519 |
Operating income (loss): |  |  |  |  |  |  |  |
The Americas |  | $ | 36 |  |  | $ | (529) |  |  | $ | 101 |  |  | $ | (354) |
Europe, the Middle East & Africa |  | 657 |  |  | 505 |  |  | 1,068 |  |  | 882 |
Asia/Pacific |  | 407 |  |  | 298 |  |  | 645 |  |  | 550 |
|  | 1,100 |  |  | 274 |  |  | 1,814 |  |  | 1,078 |
Charges associated with restructuring and other activities |  | (37) |  |  | (13) |  |  | (46) |  |  | (38) |
Operating income |  | $ | 1,063 |  |  | $ | 261 |  |  | $ | 1,768 |  |  | $ | 1,040 |
(1) The net sales 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+ in the travel retail channel that are reflected in Korea in the Asia/Pacific region. Operating income attributable to the travel retail sales included in Europe, the Middle East & Africa is included in that region and in The Americas.

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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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