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REVENUE RECOGNITION | 12 Months Ended
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Jun. 30, 2025
Revenue from Contract with Customer [Abstract] |
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregation of net sales by the Company's geographic regions are as follows:
|  | Year Ended June 30,
(In millions) |  | 2025 |  | 2024 |  | 2023
The Americas |  | $ | 4,411 |  |  | $ | 4,581 |  |  | $ | 4,518 |
Europe, the Middle East & Africa |  | 5,375 |  |  | 6,140 |  |  | 6,225 |
Asia/Pacific |  | 4,537 |  |  | 4,888 |  |  | 5,194 |
|  | 14,323 |  |  | 15,609 |  |  | 15,937 |
Returns associated with restructuring and other activities |  | 3 |  |  | (1) |  |  | (27) |
Net sales |  | $ | 14,326 |  |  | $ | 15,608 |  |  | $ | 15,910 |
(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 net sales of Dr.Jart+ in the travel retail channel that are reflected in Korea in the Asia/Pacific region. Accounts Receivable Accounts receivable, net is stated net of the allowance for doubtful accounts, including credit losses, and customer deductions totaling $38 million and $26 million as of June 30, 2025 and June 30, 2024, respectively. Payment terms are short-term in nature and are generally less than one year. Changes in the allowance for credit losses are as follows:
|  | June 30,
(In millions) |  | 2025 |  | 2024
Allowance for credit losses, beginning of year |  | $ | 14 |  |  | $ | 16 |
Provision (adjustment) for expected credit losses |  | 11 |  |  | (4) |
Write-offs, net & other |  | 1 |  |  | 2 |
Allowance for credit losses, end of year |  | $ | 26 |  |  | $ | 14 |
The remaining balance of the allowance for doubtful accounts and customer deductions of $12 million as of June 30, 2025 and June 30, 2024, relates to non-credit losses, which are primarily due to customer deductions. Deferred Revenue Changes in deferred revenue are as follows:
|  | June 30,
(In millions) |  | 2025 |  | 2024
Deferred revenue, beginning of year |  | $ | 560 |  |  | $ | 572 |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period |  | (288) |  |  | (316) |
Revenue deferred during the period |  | 257 |  |  | 316 |
Other |  | 4 |  |  | (12) |
Deferred revenue, end of year |  | $ | 533 |  |  | $ | 560 |
Transaction Price Allocated to the Remaining Performance Obligations At June 30, 2025, the combined estimated revenue expected to be recognized in the next twelve months related to performance obligations for customer loyalty programs, gift with purchase promotions, purchase with purchase promotions, gift card liabilities, and the Marcolin license arrangement related to TOM FORD that are unsatisfied (or partially unsatisfied) is $314 million. The remaining balance of deferred revenue at June 30, 2025 will be recognized beyond the next twelve months, of which, $210 million relates to the non-refundable upfront payment received as part of the Marcolin licensing arrangement that is being recognized on a straight-line basis over the estimated economic life of the license, which is 20 years. Royalty Revenue - License Arrangements As of June 30, 2025, the remaining contractually guaranteed minimum royalty amounts due to the Company during future periods are as follows:
(In millions) |  | Minimum Remaining Royalties
Fiscal 2026 |  | $ | 30 |
Fiscal 2027 |  | 31 |
Fiscal 2028 |  | 33 |
Fiscal 2029 |  | 34 |
Fiscal 2030 |  | 35 |
Thereafter |  | 133 |
The royalty revenue associated with the TOM FORD Acquisition is included within the other category and within The Americas region.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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