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FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended
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Dec. 31, 2023
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 December 31, 2023:
(In millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |  |
Money market funds |  | $ | 2,458 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,458 |
Foreign currency forward contracts |  | — |  |  | 30 |  |  | — |  |  | 30 |
Cross-currency swap contracts |  | — |  |  | 25 |  |  | — |  |  | 25 |
Total |  | $ | 2,458 |  |  | $ | 55 |  |  | $ | — |  |  | $ | 2,513 |
Liabilities: |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | — |  |  | $ | 45 |  |  | $ | — |  |  | $ | 45 |
Interest rate-related derivatives |  | — |  |  | 131 |  |  | — |  |  | 131 |
DECIEM stock options |  | — |  |  | — |  |  | 103 |  |  | 103 |
Total |  | $ | — |  |  | $ | 176 |  |  | $ | 103 |  |  | $ | 279 |
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, 2023:
(In millions) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |  |
Money market funds |  | $ | 3,241 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,241 |
Foreign currency forward contracts |  | — |  |  | 76 |  |  | — |  |  | 76 |
Cross-currency swap contracts |  | — |  |  | 22 |  |  | — |  |  | 22 |
Total |  | $ | 3,241 |  |  | $ | 98 |  |  | $ | — |  |  | $ | 3,339 |
Liabilities: |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | — |  |  | $ | 49 |  |  | $ | — |  |  | $ | 49 |
Interest rate-related derivatives |  | — |  |  | 150 |  |  | — |  |  | 150 |
DECIEM stock options |  | — |  |  | — |  |  | 99 |  |  | 99 |
Total |  | $ | — |  |  | $ | 199 |  |  | $ | 99 |  |  | $ | 298 |
Schedule of estimated fair values of financial instruments | The estimated fair values of the Company’s financial instruments are as follows:
|  | December 31, 2023 |  | June 30, 2023
(In millions) |  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Nonderivatives |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 3,939 |  |  | $ | 3,939 |  |  | $ | 4,029 |  |  | $ | 4,029 |
Current and long-term debt |  | 8,140 |  |  | 7,781 |  |  | 8,114 |  |  | 7,665 |
DECIEM stock options |  | 103 |  |  | 103 |  |  | 99 |  |  | 99 |
Deferred consideration payable |  | 342 |  |  | 344 |  |  | 341 |  |  | 338 |
Derivatives |  |  |  |  |  |  |  |
Cross-currency swap contracts - asset, net |  | 25 |  |  | 25 |  |  | 22 |  |  | 22 |
Foreign currency forward contracts – asset (liability), net |  | (15) |  |  | (15) |  |  | 27 |  |  | 27 |
Interest rate-related derivatives – liability, net |  | (131) |  |  | (131) |  |  | (150) |  |  | (150) |
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 three and six months ended December 31, 2022 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 during the three months ended December 31, 2022:
(In millions) |  | Impairment charges |  | Date of Fair Value Measurement |  | Fair Value(1)
Other intangible assets, net (trademarks) |  |  |  |  |  |
Dr.Jart+ |  | $ | 100 |  |  | November 30, 2022 |  | $ | 339 |
Too Faced |  | 86 |  |  | November 30, 2022 |  | 186 |
Smashbox |  | 21 |  |  | December 31, 2022 |  | — |
Total |  | $ | 207 |  |  |  |  | $ | 525 |
(1)See Note 2 - 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 DECEIM stock option liability | Changes in the DECIEM stock option liability for the six months ended December 31, 2023 are included in Selling, general and administrative expenses in the accompanying consolidated statements of earnings and were as follows:
(In millions) |  | Fair Value
DECIEM stock option liability as of June 30, 2023 |  | $ | 99 |
Changes in fair value, net of foreign currency remeasurements |  | 3 |
Translation adjustments and other, net |  | 1 |
DECIEM stock option liability as of December 31, 2023 |  | $ | 103 |

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- 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). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 + Details
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- Definition 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). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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