v3.26.3
REVENUE RECOGNITION
 3 Months Ended
Sep. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
Disaggregation of net sales by the Company's geographic regions are as follows:

Three Months Ended
September 30,
(In millions)20262025
The Americas$1,227 $1,174 
Europe, the United Kingdom and Ireland and Emerging Markets ("EUKEM")923 901 
Asia/Pacific(1)
952 873 
Mainland China
614 532 
3,716 3,480 
Returns associated with restructuring and other activities(1)1 
Net sales$3,715 $3,481 
(1)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 $48 million and $44 million as of September 30, 2026 and June 30, 2026, 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, 2026
Balance at June 30, 2026$30 
Provision for expected credit losses4 
Write-offs, net & other(1)
Balance at September 30, 2026$33 

The remaining balance of the allowance for doubtful accounts and customer deductions of $15 million and $14 million as of September 30, 2026 and June 30, 2026, respectively, relates to non-credit losses, which are primarily due to customer deductions.

Deferred Revenue

Changes in deferred revenue are as follows:

September 30,
(In millions)20262025
Deferred revenue, beginning of period$490 $533 
Revenue recognized that was included in the deferred revenue balance at the beginning of the period(115)(127)
Revenue deferred during the period147 141 
Other1 1 
Deferred revenue, end of period$523 $548 

Transaction Price Allocated to the Remaining Performance Obligations

The aggregate transaction price allocated to remaining performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2026 was $779 million, of which approximately $351 million is expected to be recognized within the next 12 months, with the remainder thereafter. These amounts are comprised of deferred revenue and future royalty revenue from the Company's license arrangements.

At September 30, 2026, the combined estimated revenue expected to be recognized in the next twelve months related to performance obligations included in deferred revenue for customer loyalty programs, gift with purchase promotions, purchase with purchase promotions, gift card liabilities and the Marcolin license arrangement related to TOM FORD is $319 million. The remaining balance of deferred revenue as of September 30, 2026 will be recognized as revenue beyond the next twelve months, of which $195 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.

As of September 30, 2026, the contractually guaranteed minimum royalty amounts due to the Company in connection with its license arrangements for the remainder of fiscal 2027 and future periods are as follows:
(In millions)Minimum Remaining Royalties
Fiscal 2027$24 
Fiscal 2028$32 
Fiscal 2029$34 
Fiscal 2030$35 
Fiscal 2031$35 
Thereafter$96 

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