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REVENUE RECOGNITION
 3 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
Disaggregation of net sales by the Company's geographic regions(1) are as follows:

 Three Months Ended
September 30,
(In millions)20252024
The Americas$1,174 $1,197 
Europe, United Kingdom and Ireland and Emerging Markets ("EUKEM")
901 868 
Asia/Pacific(2)
873 806 
Mainland China
532 490 
3,480 3,361 
Returns associated with restructuring and other activities1 — 
Net sales$3,481 $3,361 
(1)The Company has reorganized its geographic regions, effective July 1, 2025 and has presented the information for the three months ended September 30, 2025 and 2024 under this new basis.
(2)The net sales from the Company’s travel retail business are included 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 $39 million and $38 million as of September 30, 2025 and June 30, 2025, 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:

(In millions)September 30, 2025
Balance at June 30, 2025$26 
Provision for expected credit losses2 
Write-offs, net & other(1)
Balance at September 30, 2025$27 

The remaining balance of the allowance for doubtful accounts and customer deductions of $12 million as of September 30, 2025 and June 30, 2025, relates to non-credit losses, which are primarily due to customer deductions.

Deferred Revenue

Changes in deferred revenue are as follows:
Three Months Ended
September 30,
(In millions)20252024
Deferred revenue, beginning of period$533 $560 
Revenue recognized that was included in the deferred revenue balance at the beginning of the period(127)(148)
Revenue deferred during the period
141 154 
Other1 1 
Deferred revenue, end of period$548 $567 

Transaction Price Allocated to the Remaining Performance Obligations

At September 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 $332 million. The remaining balance of deferred revenue at September 30, 2025 will be recognized beyond the next twelve months, of which $207 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 ending in fiscal 2043.

Royalty Revenue – License Arrangements

The Company’s contractually guaranteed minimum royalty amounts due during future periods under its existing license arrangements is disclosed in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025.