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REVENUE RECOGNITION
 12 Months Ended
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)202520242023
The Americas$4,411 $4,581 $4,518 
Europe, the Middle East & Africa5,375 6,140 6,225 
Asia/Pacific4,537 4,888 5,194 
14,323 15,609 15,937 
Returns associated with restructuring and other activities3 (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)20252024
Allowance for credit losses, beginning of year
$14 $16 
Provision (adjustment) for expected credit losses11 (4)
Write-offs, net & other1 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)20252024
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 period257 316 
Other4 (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 
Thereafter133 

The royalty revenue associated with the TOM FORD Acquisition is included within the other category and within The Americas region.