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SEGMENT DATA AND RELATED INFORMATION
 12 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT DATA AND RELATED INFORMATION SEGMENT DATA AND RELATED INFORMATION
Operating segments include components of an enterprise for which separate financial information is available that are regularly reviewed by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the Chief Executive Officer (the “CEO”). As a result of the similarities in the manufacturing, marketing and distribution processes for the Company’s products, much of the information provided in the consolidated financial statements is similar to, or the same as, that reviewed on a regular basis by the CEO. While the Company’s results of operations are reviewed on a consolidated basis, the CEO also reviews data segmented on a basis that facilitates comparison to industry statistics. Although the Company operates in one business segment, beauty products, the CEO evaluates performance based on its four major product categories: skin care, makeup, fragrance and hair care. These product categories meet the definition of operating and reportable segments and, accordingly, additional financial data is provided below. Skin care products include moisturizers, serums, cleansers, toners, eye care, body care, exfoliators, acne and oil corrections, facial masks and sun care products. Makeup products include foundations, powders, concealers, and setting sprays, lipsticks, lip liners and lip glosses, and mascaras, eyeshadows and eye liners. Fragrance products include parfum, eau de parfum, eau de toilette, eau de cologne and body spray, as well as lotions, creams, powders, candles and soaps that are based on a particular fragrance. Hair care products include shampoos, conditioners, styling products, treatment, finishing sprays and hair color products. Royalty revenue associated with the license of the TOM FORD trademark as discussed in Note 14 - Revenue Recognition, as well as sales and related results of ancillary products and services that do not fit within the Company's definitions of skin care, makeup, fragrance and hair care are included in the other category.

The CEO assesses each reportable segment’s performance using their respective operating income. Segment operating income is used in developing the overall strategy and during the annual budget process, as well as considered in budget-to-actual variances on a monthly basis when making decisions about the allocation of operating and capital resources to each reportable segment. Segment net sales and operating income (loss) is before the impacts of restructuring and other activities and the impacts from the other category described above. Returns and charges associated with restructuring and other activities are not allocated to the Company's segments because they are centrally directed and controlled, are not included in internal measures of segment 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 the same as those described in the summary of significant accounting policies, with the exception that the impacts of restructuring and other activities are not allocated to the reportable segments. 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 CEO or included herein.

Information about the Company's four operating segments is as follows:

(In millions)Year Ended June 30, 2026
Skin CareMakeupFragranceHair CareTotal
Net sales
$15,049 
Less: Other category net sales
103 
Less: Returns associated with restructuring and other activities
(12)
Segment net sales
$7,338 $4,276 $2,779 $565 $14,958 
Cost of sales1,761 1,102 638 144 3,645 
Selling, general and administrative expenses4,134 3,209 1,924 416 9,683 
Other segment items(1)
27 35 13 9 84 
Segment operating income (loss)
$1,416 $(70)$204 $(4)$1,546 
Other category operating income57 
Charges associated with restructuring and other activities
(823)
Operating income780
Reconciliation to earnings before income taxes:
Interest expense(334)
Interest income and investment income, net90 
Other components of net periodic benefit cost(19)
Earnings before income taxes$517 
Segment depreciation and amortization
$388 $226 $147 $30 $791 
Other category
5 
Depreciation and amortization$796 
(1) Other segment items reflect the securities class action litigation settlement.
(In millions)Year Ended June 30, 2025
Skin CareMakeupFragranceHair CareTotal
Net sales
$14,326 
Less: Other category net sales
100 
Less: Returns associated with restructuring and other activities
3 
Segment net sales
$6,962 $4,205 $2,491 $565 $14,223 
Cost of sales1,817 1,131 571 158 3,677 
Selling, general and administrative expenses4,196 3,048 1,749 448 9,441 
Impairment of goodwill and other intangible assets
375 308 549 — 1,232 
Other segment items(1)
— 159 — — 159 
Segment operating income (loss)
$574 $(441)$(378)$(41)$(286)
Other category operating loss(13)
Charges associated with restructuring and other activities
(486)
Operating loss(785)
Reconciliation to loss before income taxes:
Interest expense(357)
Interest income and investment income, net114 
Other components of net periodic benefit cost(12)
Loss before income taxes$(1,040)
Segment depreciation and amortization
$403 $243 $144 $33 $823 
Other category
6 
Depreciation and amortization$829 
(1) Other segment items reflect the Talcum litigation settlement agreements.
(In millions)Year Ended June 30, 2024
Skin CareMakeupFragranceHair CareTotal
Net sales
$15,608 
Less: Other category net sales
115 
Less: Returns associated with restructuring and other activities
(1)
Segment net sales
$7,908 $4,470 $2,487 $629 $15,494 
Cost of sales2,278 1,290 624 191 4,383 
Selling, general and administrative expenses4,424 3,087 1,598 490 9,599 
Impairment of goodwill and other intangible assets471 — — — 471 
Segment operating income (loss)
$735 $93 $265 $(52)$1,041 
Other category operating income
53 
Charges associated with restructuring and other activities
(124)
Operating income
970 
Reconciliation to earnings before income taxes:
Interest expense(378)
Interest income and investment income, net167 
Other components of net periodic benefit cost13 
Earnings before income taxes$772 
Segment depreciation and amortization
$418 $236 $132 $33 $819 
Other category
6 
Depreciation and amortization$825 
For the Company’s geographic region presentation, as disclosed in Note 14 – Revenue Recognition, net sales are attributed to a country based on the legal entity sale location, and this predominantly aligns with the location of the customer, with the primary exception related to the Company’s net sales from its global travel retail business. The net sales from the Company’s global travel retail business are included in the Asia/Pacific geographic region. For the presentation of net sales by country below, the Company has presented this based on the location of the customer (e.g., the customer is the retailer in the wholesale business and the consumer in the direct-to-consumer business), and as such has attributed net sales from its global travel retail business to the country to which the product is shipped, and not the Company’s country of legal sale.

The Company is domiciled in the United States. Net sales in the United States, including net sales from travel retail locations in the United States, as well as net sales in foreign countries, including net sales from travel retail locations in that country, that contribute 10% or more of net sales of the Company in fiscal 2026, 2025 and 2024 were as follows:

June 30,
(In millions)202620252024
United States
$3,749 $3,762 $3,887 
Mainland China
3,930 3,652 4,019 
All other countries
7,370 6,912 7,702 
Net sales
$15,049 $14,326 $15,608 
The Company’s long-lived assets, consisting of property, plant and equipment, net and operating lease ROU assets, in the United States, and in foreign countries that are 10% or greater of the Company’s consolidated long-lived assets at June 30, 2026, 2025 and 2024 were as follows:

June 30,
(In millions)202620252024
United States
$1,722 $1,956 $2,087 
Japan
661 780 733 
All other countries
2,162 2,388 2,149 
Long-lived assets
$4,545 $5,124 $4,969