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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Mar. 31, 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 March 31, 2021:

(In millions)						Level 1						Level 2						Level 3						Total
Assets:
Money market funds						$	3,518					$	—					$	—					$	3,518
Foreign currency forward contracts						—						136						—						136
Interest rate-related derivatives						—						7						—						7
Total						$	3,518					$	143					$	—					$	3,661
Liabilities:
Foreign currency forward contracts						$	—					$	129					$	—					$	129
Interest rate-related derivatives						—						15						—						15
Contingent consideration						—						—						2						2
Total						$	—					$	144					$	2					$	146

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:

						March 31 2021												June 30 2020
(In millions)						Carrying Amount						Fair Value						Carrying Amount						Fair Value
Nonderivatives
Cash and cash equivalents						$	6,399					$	6,399					$	5,022					$	5,022
Current and long-term debt						5,958						6,465						6,136						6,902
Contingent consideration						2						2						4						4
Derivatives
Foreign currency forward contracts – asset (liability), net						7						7						7						7
Interest rate-related derivatives – asset (liability), net						(8)						(8)						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 the nine months ended March 31, 2021 for certain of its nonfinancial assets measured at fair value on a nonrecurring basis, classified as Level 3, due to a change in circumstances that triggered an interim impairment test:

(In millions)						Impairment charges						Date of Fair Value Measurement						Fair Value(1)
Goodwill
GLAMGLOW						$	54					November 30, 2020						$	—
BECCA(2)						13						February 28, 2021						—
Total						67												—
Other intangible assets, net (trademark and customer lists)
GLAMGLOW						27						November 30, 2020						36
BECCA(2)						34						February 28, 2021						—
Total						61												36
Long-lived assets						33						March 31, 2021						35
Total						$	161											$	71

(1)See Note 3 - 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 4 – 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.

The following table presents the Company’s impairment charges for the nine months ended March 31, 2020 for certain of its nonfinancial assets measured at fair value on a nonrecurring basis, classified as Level 3, due to a change in circumstances that triggered an interim impairment test:

(In millions)						Impairment charges						Date of Fair Value Measurement						Fair Value(1)
Goodwill						$	786					March 31, 2020						$	103
Other intangible assets, net (trademark)						324						March 31, 2020						417
Long-lived assets						13						March 31, 2020						11
Total						$	1,123											$	531

(1)See Note 3 - 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 nine months ended March 31, 2021 are included in Selling, general and administrative expenses in the accompanying consolidated statements of earnings (loss) and were as follows:

(In millions)						Fair Value
Contingent consideration at June 30, 2020						$	4
Changes in fair value						(2)
Contingent consideration at March 31, 2021						$	2

X

- Definition

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 contingent payment arrangements including the terms that will result in payment and the accounting treatment that will be followed if such contingencies occur, including the potential impact on earnings per share if contingencies are to be settled in common stock of the entity. The description also may include the period over which amounts are expected to be paid, and changes in the amount since the previous reporting period. This also includes contingent options and commitments.

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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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