SEGMENT DATA AND RELATED INFORMATION (Tables)

12 Months Ended

Jun. 30, 2026

Schedule of segment data and related information

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


(In millions)	Year Ended June 30, 2026
	Skin Care		Makeup		Fragrance		Hair Care		Total
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 sales	1,761		1,102		638		144		3,645
Selling, general and administrative expenses	4,134		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 income									57
Charges associated with restructuring and other activities									(823)
Operating income									780

Reconciliation to earnings before income taxes:
Interest expense									(334)
Interest income and investment income, net									90
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 Care		Makeup		Fragrance		Hair Care		Total
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 sales	1,817		1,131		571		158		3,677
Selling, general and administrative expenses	4,196		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, net									114
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 Care		Makeup		Fragrance		Hair Care		Total
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 sales	2,278		1,290		624		191		4,383
Selling, general and administrative expenses	4,424		3,087		1,598		490		9,599
Impairment of goodwill and other intangible assets	471		—		—		—		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, net									167
Other components of net periodic benefit cost									13

Earnings before income taxes									$	772

Segment depreciation and amortization	$	418	$	236	$	132	$	33	$	819
Other category									6
Depreciation and amortization									$	825

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

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)	2026		2025		2024
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)	2026		2025		2024
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