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SEGMENT DATA AND RELATED INFORMATION | 6 Months Ended
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Dec. 31, 2023
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 operating income (loss) before charges associated with restructuring and other activities. Returns and charges associated with restructuring and other activities are not allocated to the Company's 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, 2023. 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, 2023. During the fiscal 2024 second quarter, the Company identified and corrected prior-period misclassifications of net sales and operating income between certain of the Company’s product categories in its segment footnote. As a result, product category net sales and operating income have been adjusted from the amounts previously reported for the three and six months ended December 31, 2022 for comparability purposes. Presentation of product category net sales and operating income for three and nine months ended March 31, 2023, and fiscal years ended June 30, 2023 and 2022, will also be adjusted to reflect the misclassifications arising in those periods for comparability purposes within the prospective filings. The misclassifications had no impact on the current-period or prior-period consolidated statements of earnings, consolidated statements of comprehensive income, consolidated balance sheets, or the consolidated statements of cash flows, and the Company determined that the impact on the Company’s current-period and previously issued financial statements for the respective periods was not material.
|  | Three Months Ended December 31 |  |  |  | Six Months Ended December 31
(In millions) |  | 2023 |  | 2022 |  |  |  |  |  | 2023 |  | 2022
PRODUCT CATEGORY DATA |  |  |  |  |  |  |  |  |  |  |  |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |
Skin Care |  | $ | 2,173 |  |  | $ | 2,427 |  |  |  |  |  |  | $ | 3,813 |  |  | $ | 4,539 |
Makeup |  | 1,167 |  |  | 1,263 |  |  |  |  |  |  | 2,229 |  |  | 2,320 |
Fragrance |  | 737 |  |  | 734 |  |  |  |  |  |  | 1,373 |  |  | 1,330 |
Hair Care |  | 173 |  |  | 183 |  |  |  |  |  |  | 321 |  |  | 340 |
Other |  | 30 |  |  | 14 |  |  |  |  |  |  | 62 |  |  | 27 |
|  | 4,280 |  |  | 4,621 |  |  |  |  |  |  | 7,798 |  |  | 8,556 |
Returns associated with restructuring and other activities |  | (1) |  |  | (1) |  |  |  |  |  |  | (1) |  |  | (6) |
Net sales |  | $ | 4,279 |  |  | $ | 4,620 |  |  |  |  |  |  | $ | 7,797 |  |  | $ | 8,550 |
Operating income (loss) before charges associated with restructuring and other activities: |  |  |  |  |  |  |  |  |  |  |  |
Skin Care |  | $ | 415 |  |  | $ | 433 |  |  |  |  |  |  | $ | 452 |  |  | $ | 969 |
Makeup |  | 30 |  |  | (24) |  |  |  |  |  |  | (10) |  |  | (4) |
Fragrance |  | 131 |  |  | 153 |  |  |  |  |  |  | 238 |  |  | 277 |
Hair Care |  | (3) |  |  | 4 |  |  |  |  |  |  | (25) |  |  | (8) |
Other |  | 9 |  |  | (1) |  |  |  |  |  |  | 27 |  |  | (2) |
|  | 582 |  |  | 565 |  |  |  |  |  |  | 682 |  |  | 1,232 |
Reconciliation: |  |  |  |  |  |  |  |  |  |  |  |
Charges associated with restructuring and other activities |  | (8) |  |  | (9) |  |  |  |  |  |  | (10) |  |  | (15) |
Interest expense |  | (98) |  |  | (52) |  |  |  |  |  |  | (193) |  |  | (98) |
Interest income and investment income, net |  | 40 |  |  | 26 |  |  |  |  |  |  | 81 |  |  | 41 |
Other components of net periodic benefit cost |  | 3 |  |  | 2 |  |  |  |  |  |  | 5 |  |  | 5 |
Earnings before income taxes |  | $ | 519 |  |  | $ | 532 |  |  |  |  |  |  | $ | 565 |  |  | $ | 1,165 |
GEOGRAPHIC DATA(1) |  |  |  |  |  |  |  |  |  |  |  |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |
The Americas |  | $ | 1,242 |  |  | $ | 1,235 |  |  |  |  |  |  | $ | 2,450 |  |  | $ | 2,358 |
Europe, the Middle East & Africa |  | 1,589 |  |  | 1,816 |  |  |  |  |  |  | 2,841 |  |  | 3,498 |
Asia/Pacific |  | 1,449 |  |  | 1,570 |  |  |  |  |  |  | 2,507 |  |  | 2,700 |
|  | 4,280 |  |  | 4,621 |  |  |  |  |  |  | 7,798 |  |  | 8,556 |
Returns associated with restructuring and other activities |  | (1) |  |  | (1) |  |  |  |  |  |  | (1) |  |  | (6) |
Net sales |  | $ | 4,279 |  |  | $ | 4,620 |  |  |  |  |  |  | $ | 7,797 |  |  | $ | 8,550 |
Operating income (loss): |  |  |  |  |  |  |  |  |  |  |  |
The Americas |  | $ | (55) |  |  | $ | (85) |  |  |  |  |  |  | $ | (237) |  |  | $ | 40 |
Europe, the Middle East & Africa |  | 379 |  |  | 409 |  |  |  |  |  |  | 523 |  |  | 743 |
Asia/Pacific |  | 258 |  |  | 241 |  |  |  |  |  |  | 396 |  |  | 449 |
|  | 582 |  |  | 565 |  |  |  |  |  |  | 682 |  |  | 1,232 |
Charges associated with restructuring and other activities |  | (8) |  |  | (9) |  |  |  |  |  |  | (10) |  |  | (15) |
Operating income |  | $ | 574 |  |  | $ | 556 |  |  |  |  |  |  | $ | 672 |  |  | $ | 1,217 |
(1) The net sales from the Company's travel retail business are included in the Europe, the Middle East & Africa region, and operating income attributable to these net sales are included in that region and in The Americas. The exception is for net sales and operating income of Dr.Jart+ in the travel retail channel in Korea that are reflected in Korea in the Asia/Pacific region. The tables below present the effect of the corrections for the three and six months ended December, 31, 2022, the three and nine months ended March 31, 2023, and fiscal years ended June 30, 2023 and 2022.
| Three Months Ended December 31, 2022 |  |  |  | Six Months Ended December 31, 2022
(In millions) | As Previously Reported | Adjustments | As Adjusted |  |  |  |  |  | As Previously Reported | Adjustments | As Adjusted
PRODUCT CATEGORY DATA |  |  |  |  |  |  |  |  |  |  |
Net sales: |  |  |  |  |  |  |  |  |  |  |
Skin Care | $ | 2,382 |  | $ | 45 |  | $ | 2,427 |  |  |  |  |  |  | $ | 4,486 |  | $ | 53 |  | $ | 4,539 |
Makeup | 1,268 |  | (5) |  | 1,263 |  |  |  |  |  |  | 2,320 |  | $ | — |  | 2,320 |
Fragrance | 775 |  | (41) |  | 734 |  |  |  |  |  |  | 1,382 |  | (52) |  | 1,330 |
Hair Care | 182 |  | 1 |  | 183 |  |  |  |  |  |  | 340 |  | $ | — |  | 340 |
Other | 14 |  | — |  | 14 |  |  |  |  |  |  | 28 |  | (1) |  | 27 |
| 4,621 |  | $ | — |  | 4,621 |  |  |  |  |  |  | 8,556 |  | $ | — |  | 8,556 |
Returns associated with restructuring and other activities | (1) |  | $ | — |  | (1) |  |  |  |  |  |  | (6) |  | $ | — |  | (6) |
Net sales | $ | 4,620 |  | $ | — |  | $ | 4,620 |  |  |  |  |  |  | $ | 8,550 |  | $ | — |  | $ | 8,550 |
Operating income (loss): |  |  |  |  |  |  |  |  |  |  |
Skin Care | $ | 421 |  | $ | 12 |  | $ | 433 |  |  |  |  |  |  | $ | 951 |  | $ | 18 |  | $ | 969 |
Makeup | (37) |  | 13 |  | (24) |  |  |  |  |  |  | (21) |  | 17 |  | (4) |
Fragrance | 177 |  | (24) |  | 153 |  |  |  |  |  |  | 310 |  | (33) |  | 277 |
Hair Care | 5 |  | (1) |  | 4 |  |  |  |  |  |  | (7) |  | (1) |  | (8) |
Other | (1) |  | $ | — |  | (1) |  |  |  |  |  |  | (1) |  | (1) |  | (2) |
| 565 |  | $ | — |  | 565 |  |  |  |  |  |  | 1,232 |  | $ | — |  | 1,232 |
Charges associated with restructuring and other activities | (9) |  | $ | — |  | (9) |  |  |  |  |  |  | (15) |  | $ | — |  | (15) |
Operating income | $ | 556 |  | $ | — |  | $ | 556 |  |  |  |  |  |  | $ | 1,217 |  | $ | — |  | $ | 1,217 |
| Three Months Ended March 31, 2023 |  |  |  | Nine Months Ended March 31, 2023
(In millions) | As Previously Reported | Adjustments | As Adjusted |  |  |  |  |  | As Previously Reported | Adjustments | As Adjusted
PRODUCT CATEGORY DATA |  |  |  |  |  |  |  |  |  |  |
Net sales: |  |  |  |  |  |  |  |  |  |  |
Skin Care | $ | 1,922 |  | $ | (7) |  | $ | 1,915 |  |  |  |  |  |  | $ | 6,408 |  | $ | 46 |  | $ | 6,454 |
Makeup | 1,088 |  | 16 |  | 1,104 |  |  |  |  |  |  | 3,408 |  | 16 |  | 3,424 |
Fragrance | 585 |  | (8) |  | 577 |  |  |  |  |  |  | 1,967 |  | (60) |  | 1,907 |
Hair Care | 149 |  | (1) |  | 148 |  |  |  |  |  |  | 489 |  | (1) |  | 488 |
Other | 11 |  | — |  | 11 |  |  |  |  |  |  | 39 |  | (1) |  | 38 |
| 3,755 |  | — |  | 3,755 |  |  |  |  |  |  | 12,311 |  | — |  | 12,311 |
Returns associated with restructuring and other activities | (4) |  | — |  | (4) |  |  |  |  |  |  | (10) |  | — |  | (10) |
Net sales | $ | 3,751 |  | $ | — |  | $ | 3,751 |  |  |  |  |  |  | $ | 12,301 |  | $ | — |  | $ | 12,301 |
Operating income (loss): |  |  |  |  |  |  |  |  |  |  |
Skin Care | $ | 256 |  | $ | 13 |  | $ | 269 |  |  |  |  |  |  | $ | 1,207 |  | $ | 31 |  | $ | 1,238 |
Makeup | (15) |  | 10 |  | (5) |  |  |  |  |  |  | (36) |  | 27 |  | (9) |
Fragrance | 89 |  | (23) |  | 66 |  |  |  |  |  |  | 399 |  | (56) |  | 343 |
Hair Care | (24) |  | — |  | (24) |  |  |  |  |  |  | (31) |  | (1) |  | (32) |
Other | 9 |  | — |  | 9 |  |  |  |  |  |  | 8 |  | (1) |  | 7 |
| 315 |  | — |  | 315 |  |  |  |  |  |  | 1,547 |  | — |  | 1,547 |
Charges associated with restructuring and other activities | (18) |  | — |  | (18) |  |  |  |  |  |  | (33) |  | — |  | (33) |
Operating income | $ | 297 |  | $ | — |  | $ | 297 |  |  |  |  |  |  | $ | 1,514 |  | $ | — |  | $ | 1,514 |
| Year Ended June 30, 2023 |  |  |  | Year Ended June 30, 2022
(In millions) | As Previously Reported | Adjustments | As Adjusted |  |  |  |  |  | As Previously Reported | Adjustments | As Adjusted
PRODUCT CATEGORY DATA |  |  |  |  |  |  |  |  |  |  |
Net sales: |  |  |  |  |  |  |  |  |  |  |
Skin Care | $ | 8,202 |  | $ | 47 |  | $ | 8,249 |  |  |  |  |  |  | $ | 9,886 |  | $ | 16 |  | $ | 9,902 |
Makeup | 4,516 |  | 16 |  | 4,532 |  |  |  |  |  |  | 4,667 |  | 3 |  | 4,670 |
Fragrance | 2,512 |  | (61) |  | 2,451 |  |  |  |  |  |  | 2,508 |  | (17) |  | 2,491 |
Hair Care | 653 |  | (1) |  | 652 |  |  |  |  |  |  | 631 |  | — |  | 631 |
Other | 54 |  | (1) |  | 53 |  |  |  |  |  |  | 49 |  | (2) |  | 47 |
| 15,937 |  | — |  | 15,937 |  |  |  |  |  |  | 17,741 |  | — |  | 17,741 |
Returns associated with restructuring and other activities | (27) |  | — |  | (27) |  |  |  |  |  |  | (4) |  | — |  | (4) |
Net sales | $ | 15,910 |  | $ | — |  | $ | 15,910 |  |  |  |  |  |  | $ | 17,737 |  | $ | — |  | $ | 17,737 |
Operating income (loss): |  |  |  |  |  |  |  |  |  |  |
Skin Care | $ | 1,204 |  | $ | 73 |  | $ | 1,277 |  |  |  |  |  |  | $ | 2,753 |  | $ | 23 |  | $ | 2,776 |
Makeup | (22) |  | 1 |  | (21) |  |  |  |  |  |  | 133 |  | (7) |  | 126 |
Fragrance | 440 |  | (70) |  | 370 |  |  |  |  |  |  | 456 |  | (15) |  | 441 |
Hair Care | (34) |  | (2) |  | (36) |  |  |  |  |  |  | (28) |  | — |  | (28) |
Other | 6 |  | (2) |  | 4 |  |  |  |  |  |  | 0 |  | (1) |  | (1) |
| 1,594 |  | — |  | 1,594 |  |  |  |  |  |  | 3,314 |  | — |  | 3,314 |
Charges associated with restructuring and other activities | (85) |  | — |  | (85) |  |  |  |  |  |  | (144) |  | — |  | (144) |
Operating income | $ | 1,509 |  | $ | — |  | $ | 1,509 |  |  |  |  |  |  | $ | 3,170 |  | $ | — |  | $ | 3,170 |

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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://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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