The Estée Lauder Companies Inc. (EL) 10-Q 5 Feb 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2015	Jan. 29, 2016
Entity Registrant Name	ESTEE LAUDER COMPANIES INC
Entity Central Index Key	1,001,250
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Common Class A
Entity Common Stock, Shares Outstanding		221,917,421
Common Class B
Entity Common Stock, Shares Outstanding		146,658,737

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF EARNINGS
Net Sales	$ 3,124.8	$ 3,044.5	$ 5,959.5	$ 5,675.5
Cost of Sales	589	573.1	1,166.2	1,109.7
Gross Profit	2,535.8	2,471.4	4,793.3	4,565.8
Operating expenses
Selling, general and administrative	1,887.9	1,838.6	3,692.2	3,585
Restructuring and other charges	18.5		18.5
Total operating expenses	1,906.4	1,838.6	3,710.7	3,585
Operating Income	629.4	632.8	1,082.6	980.8
Interest expense	17	15	34.1	29.8
Interest income and investment income, net	3.2	3.8	6.2	5.4
Earnings before Income Taxes	615.6	621.6	1,054.7	956.4
Provision for income taxes	167.2	183.9	295.5	289.5
Net Earnings	448.4	437.7	759.2	666.9
Net earnings attributable to noncontrolling interests	(2.2)	(2)	(3.7)	(3.1)
Net Earnings Attributable to The Estee Lauder Companies Inc.	$ 446.2	$ 435.7	$ 755.5	$ 663.8
Net earnings attributable to The Estee Lauder Companies Inc. per common share
Basic (in dollars per share)	$ 1.21	$ 1.15	$ 2.04	$ 1.74
Diluted (in dollars per share)	$ 1.19	$ 1.13	$ 2	$ 1.71
Weighted-average common shares outstanding
Basic (in shares)	369.6	380	371.1	380.9
Diluted (in shares)	376	386.1	377.5	387.1
Cash dividends declared per common share (in dollars per share)	$ 0.3	$ 0.24	$ 0.54	$ 0.44

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net earnings	$ 448.4	$ 437.7	$ 759.2	$ 666.9
Other comprehensive income (loss):
Net unrealized investment gain (loss)	(3.9)	(2.9)	(3.4)	(2.8)
Net derivative instrument gain (loss)	(7)	21.5	4.2	55.3
Amounts included in net periodic benefit cost	6.4	6.3	12.8	12.9
Translation adjustments	(43.5)	(104.7)	(122.7)	(234.6)
Benefit (provision) for deferred income taxes on components of other comprehensive income	(0.8)	(10.3)	(7.5)	(26.3)
Total other comprehensive income (loss)	(48.8)	(90.1)	(116.6)	(195.5)
Comprehensive income (loss)	399.6	347.6	642.6	471.4
Comprehensive (income) loss attributable to noncontrolling interests:
Net earnings	(2.2)	(2)	(3.7)	(3.1)
Translation adjustments	1	(1.1)	0.9	0.5
Total comprehensive (income) loss attributable to noncontrolling interests	(1.2)	(3.1)	(2.8)	(2.6)
Comprehensive income (loss) attributable to The Estee Lauder Companies Inc.	$ 398.4	$ 344.5	$ 639.8	$ 468.8

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2015	Jun. 30, 2015
Current Assets
Cash and cash equivalents	$ 868.1	$ 1,021.4
Short-term investments	546.1	503.7
Accounts receivable, net	1,410.6	1,174.5
Inventory and promotional merchandise, net	1,077.4	1,215.8
Prepaid expenses and other current assets	573.6	553.1
Total current assets	4,475.8	4,468.5
Property, Plant and Equipment, net	1,496.8	1,490.2
Other Assets
Long-term investments	772.2	420.3
Goodwill	1,147	1,144.8
Other intangible assets, net	317.4	326.6
Other assets	372.9	388.8
Total other assets	2,609.5	2,280.5
Total assets	8,582.1	8,239.2
Current Liabilities
Current debt	374.4	29.8
Accounts payable	527.4	635.4
Other accrued liabilities	1,577.6	1,470.4
Total current liabilities	2,479.4	2,135.6
Noncurrent Liabilities
Long-term debt	1,607.3	1,607.5
Other noncurrent liabilities	879.9	841.8
Total noncurrent liabilities	$ 2,487.2	$ 2,449.3
Contingencies (Note 8)
Equity
Common stock, $.01 par value; Class A shares authorized: 1,300,000,000 at December 31, 2015 and June 30, 2015; shares issued: 420,966,841 at December 31, 2015 and 418,530,857 at June 30, 2015; Class B shares authorized: 304,000,000 at December 31, 2015 and June 30, 2015; shares issued and outstanding: 146,658,737 at December 31, 2015 and 147,046,137 at June 30, 2015	$ 5.7	$ 5.7
Paid-in capital	3,019.4	2,871.6
Retained earnings	7,557.9	7,004.1
Accumulated other comprehensive loss	(497.2)	(381.5)
Stockholders' equity before treasury stock	10,085.8	9,499.9
Less: Treasury stock, at cost; 198,231,512 Class A shares at December 31, 2015 and 190,694,630 Class A shares at June 30, 2015	(6,482)	(5,856.7)
Total stockholders' equity - The Estee Lauder Companies Inc.	3,603.8	3,643.2
Noncontrolling interests	11.7	11.1
Total equity	3,615.5	3,654.3
Total liabilities and equity	$ 8,582.1	$ 8,239.2

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2015	Jun. 30, 2015
Common Class A
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,300,000,000	1,300,000,000
Common stock, shares issued	420,966,841	418,530,857
Treasury stock, shares	198,231,512	190,694,630
Common Class B
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	304,000,000	304,000,000
Common stock, shares issued	146,658,737	147,046,137
Common stock, shares outstanding	146,658,737	147,046,137

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash Flows from Operating Activities
Net earnings	$ 759.2	$ 666.9
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization	201.6	198.6
Deferred income taxes	(32)	(32.8)
Non-cash stock-based compensation	111.2	100.9
Excess tax benefits from stock-based compensation arrangements	(12.7)	(14.1)
Loss on disposal of property, plant and equipment	6.2	8
Non-cash restructuring and other charges	13.4
Pension and post-retirement benefit expense	35.2	33.7
Pension and post-retirement benefit contributions	(12)	(11.9)
Change in fair value of contingent consideration	7.8
Other non-cash items	(0.5)	(4.3)
Changes in operating assets and liabilities:
Increase in accounts receivable, net	(276.8)	(109.8)
Decrease in inventory and promotional merchandise, net	101.8	107.1
Decrease (increase) in other assets, net	(32.5)	2.9
Decrease in accounts payable	(80.9)	(1.1)
Increase in other accrued and noncurrent liabilities	173.3	49.6
Net cash flows provided by operating activities	962.3	993.7
Cash Flows from Investing Activities
Capital expenditures	(223.4)	(187.4)
Payments for acquired businesses, net of cash acquired	(19.3)	(104.2)
Proceeds from disposition of investments	558.5	61.2
Purchases of investments	(960)	(560.5)
Net cash flows used for investing activities	(644.2)	(790.9)
Cash Flows from Financing Activities
Proceeds (repayments) of current debt, net	347	50.5
Debt issuance costs	(0.1)	(1)
Repayments and redemptions of long-term debt	(4.1)	(4.9)
Net proceeds from stock-based compensation transactions	22.4	23.8
Excess tax benefits from stock-based compensation arrangements	12.7	14.1
Payments to acquire treasury stock	(627.8)	(478.6)
Dividends paid to stockholders	(201.2)	(168.9)
Payments to noncontrolling interest holders for dividends	(2.2)	(3.1)
Net cash flows used for financing activities	(453.3)	(568.1)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(18.1)	(22.6)
Net Decrease in Cash and Cash Equivalents	(153.3)	(387.9)
Cash and Cash Equivalents at Beginning of Period	1,021.4	1,629.1
Cash and Cash Equivalents at End of Period	$ 868.1	$ 1,241.2

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	N OTE 1 – S UMMARY OF S IGNIFICANT A CCOUNTING P OLICIES Basis of Presentation The accompanying consolidated financial statements include the accounts of The Estée Lauder Companies Inc. and its subsidiaries (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated. The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015. Management Estimates The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses reported in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, pension and other post-retirement benefit costs, goodwill, other intangible assets and long-lived assets, and income taxes. Descriptions of these policies are discussed in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates and assumptions resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. Currency Translation and Transactions All assets and liabilities of foreign subsidiaries and affiliates are translated at period-end rates of exchange, while revenue and expenses are translated at weighted-average rates of exchange for the period. Unrealized translation gains (losses) reported as cumulative translation adjustments through other comprehensive income (loss) (“OCI”) attributable to The Estée Lauder Companies Inc. amounted to $(44.7) million and $(111.4) million, net of tax, during the three months ended December 31, 2015 and 2014, respectively, and $(128.3) million and $(248.1) million, net of tax, during the six months ended December 31, 2015 and 2014, respectively. For the Company’s Venezuelan subsidiary operating in a highly inflationary economy, the U.S. dollar is the functional currency. Remeasurement adjustments in financial statements in a highly inflationary economy and other transactional gains and losses are reflected in earnings. The Company enters into foreign currency forward contracts and may enter into option contracts to hedge foreign currency transactions for periods consistent with its identified exposures. Accordingly, the Company categorizes these instruments as entered into for purposes other than trading. The accompanying consolidated statements of earnings include net exchange gains (losses) on foreign currency transactions of $10.4 million and $(6.5) million during the three months ended December 31, 2015 and 2014, respectively, and $5.5 million and $(16.3) million during the six months ended December 31, 2015 and 2014, respectively. Accounts Receivable Accounts receivable is stated net of the allowance for doubtful accounts and customer deductions totaling $20.8 million and $20.6 million as of December 31, 2015 and June 30, 2015, respectively. Concentration of Credit Risk The Company is a worldwide manufacturer, marketer and distributor of skin care, makeup, fragrance and hair care products. The Company’s sales subject to credit risk are made primarily to department stores, perfumeries, specialty multi-brand retailers and retailers in its travel retail business. The Company grants credit to all qualified customers and does not believe it is exposed significantly to any undue concentration of credit risk. The Company’s largest customer sells products primarily within the United States and accounted for $253.0 million, or 8%, and $266.0 million, or 9%, of the Company’s consolidated net sales for the three months ended December 31, 2015 and 2014, respectively, and $591.7 million, or 10%, and $558.8 million, or 10%, of the Company’s consolidated net sales for the six months ended December 31, 2015 and 2014, respectively. This customer accounted for $137.2 million, or 10%, and $139.1 million, or 12%, of the Company’s accounts receivable at December 31, 2015 and June 30, 2015, respectively. Inventory and Promotional Merchandise Inventory and promotional merchandise, net consists of: December 31 June 30 (In millions) 2015 2015 Raw materials $ $ Work in process Finished goods Promotional merchandise $ $ Property, Plant and Equipment December 31 June 30 (In millions) 2015 2015 Assets (Useful Life) Land $ $ Buildings and improvements (10 to 40 years) Machinery and equipment (3 to 10 years) Computer hardware and software (4 to 15 years) Furniture and fixtures (5 to 10 years) Leasehold improvements Less accumulated depreciation and amortization $ $ The cost of assets related to projects in progress of $144.0 million and $192.0 million as of December 31, 2015 and June 30, 2015, respectively, is included in their respective asset categories above. Depreciation and amortization of property, plant and equipment was $100.2 million and $96.2 million during the three months ended December 31 , 2015 and 2014, respectively, and $195.4 million and $195.1 million during the six months ended December 31, 2015 and 2014, respectively. Depreciation and amortization related to the Company’s manufacturing process is included in Cost of Sales, and all other depreciation and amortization is included in Selling, general and administrative expenses in the accompanying consolidated statements of earnings. Other Accrued Liabilities Other accrued liabilities consist of the following: December 31 June 30 (In millions) 2015 2015 Advertising, merchandising and sampling $ $ Employee compensation Payroll and other taxes Accrued income taxes Other $ $ Income Taxes The effective rate for income taxes was 27.2% and 29.6% for the three months ended December 31, 2015 and 2014, respectively, and 28.0% and 30.3% for the six months ended December 31, 2015 and 2014, respectively. The decrease in the effective tax rate for both periods was attributable to a lower effective tax rate on the Company’s foreign operations, the retroactive reinstatement of the U.S. federal research and development tax credit that was signed into law on December 18, 2015 and the reduced impact of income tax reserves as compared to the prior-year period. As of December 31, 2015 and June 30, 2015, the gross amount of unrecognized tax benefits, exclusive of interest and penalties, totaled $73.8 million and $77.8 million, respectively. The total amount of unrecognized tax benefits at December 31, 2015 that, if recognized, would affect the effective tax rate was $48.8 million. During the three months ended December 31, 2015, the Company recognized a gross interest and penalty benefit of $0.3 million in the accompanying consolidated statement of earnings. There was a gross accrued interest and penalty expense of $0.7 million during the six months ended December 31, 2015. The total gross accrued interest and penalties in the accompanying consolidated balance sheets at December 31, 2015 and June 30, 2015 was $16.3 million and $16.5 million, respectively. On the basis of the information available as of December 31, 2015, the Company does not expect any significant changes to the total amount of unrecognized tax benefits within the next twelve months. As of December 31, 2015 and June 30, 2015, the Company had current net deferred tax assets of $275.1 million and $279.0 million, respectively, substantially all of which are included in Prepaid expenses and other current assets in the accompanying consolidated balance sheets. In addition, the Company had noncurrent net deferred tax assets of $64.3 million and $72.1 million as of December 31, 2015 and June 30, 2015, respectively, substantially all of which are included in Other assets in the accompanying consolidated balance sheets. Debt As of December 31, 2015, the Company had $340.2 million of commercial paper outstanding, maturing through January 2016, which the Company is refinancing on a periodic basis as it matures at then-prevailing market interest rates. Recently Issued Accounting Standards In November 2015, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance that requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. Under current guidance, deferred taxes for each jurisdiction are presented as a net current asset or liability and net noncurrent asset or liability, requiring an in-depth analysis by jurisdiction to allocate between current and noncurrent. The updated guidance simplifies a company’s analysis by eliminating the requirement to allocate between current and noncurrent deferred taxes by jurisdiction. This guidance becomes effective for the Company’s fiscal 2018 first quarter, with early adoption permitted. The Company may apply the guidance prospectively or retrospectively, for all deferred tax assets and liabilities. The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements. In May 2014, the FASB issued authoritative guidance that defines how companies should report revenues from contracts with customers. The standard requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It provides companies with a single comprehensive five-step principles-based model to use in accounting for revenue and supersedes current revenue recognition requirements, including most industry-specific and transaction-specific revenue guidance. In August 2015, the FASB deferred the effective date of the new revenue standard by one year. As a result, the new standard is not effective for the Company until fiscal 2019, with early adoption permitted. The guidance permits an entity to apply the standard retrospectively to all prior periods presented, with certain practical expedients, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company will apply this new guidance when it becomes effective in fiscal 2019 and has not yet selected a transition method. The Company currently has an implementation team in place that is performing a comprehensive evaluation of the impact of adoption on its consolidated financial statements. No other recently issued accounting pronouncements are expected to have a material impact on the Company’s consolidated financial statements.

INVESTMENTS

INVESTMENTS	3 Months Ended
	Dec. 31, 2015
INVESTMENTS
INVESTMENTS	N OTE 2 – I NVESTMENTS Gains and losses recorded in accumulated OCI (“AOCI”) related to the Company’s available-for-sale investments as of December 31, 2015 were as follows: (In millions) Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government and agency securities $ $ — $ ) $ Foreign government and agency securities — ) Corporate notes and bonds ) Time deposits — — Other securities — — Total $ $ $ ) $ Gains and losses recorded in AOCI related to the Company’s available-for-sale investments as of June 30, 2015 were as follows: (In millions) Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government and agency securities $ $ $ ) $ Foreign government and agency securities — — Corporate notes and bonds ) Time deposits — — Other securities — Total $ $ $ ) $ The following table presents the Company’s available-for-sale securities by contractual maturity as of December 31, 2015: (In millions) Cost Fair Value Due within one year $ $ Due after one through five years $ $ The following table presents the fair market value of the Company’s investments with gross unrealized losses that are not deemed to be other-than temporarily impaired as of December 31, 2015: In a Loss Position for Less Than 12 Months In a Loss Position for More Than 12 Months (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities $ $ ) $ $ Gross gains and losses realized on sales of investments included in the consolidated statements of earnings were as follows: Three Months Ended December 31 Six Months Ended December 31 (In millions) 2015 2014 2015 2014 Gross realized gains $ $ $ $ Gross realized losses ) — ) — Total $ ) $ $ — $ The Company utilizes the first-in, first-out method to determine the cost of the security sold.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Dec. 31, 2015
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	N OTE 3 – G OODWILL AND O THER I NTANGIBLE A SSETS The following table presents goodwill by product category and the related change in the carrying amount: (In millions) Skin Care Makeup Fragrance Hair Care Total Balance as of June 30, 2015 Goodwill $ $ $ $ $ Accumulated impairments ) — — ) ) Goodwill acquired during the period — — — Translation adjustments ) ) ) ) ) ) Balance as of December 31, 2015 Goodwill Accumulated impairments ) — — ) ) $ $ $ $ $ Other intangible assets consist of the following: December 31, 2015 June 30, 2015 (In millions) Gross Carrying Value Accumulated Amortization Total Net Book Value Gross Carrying Value Accumulated Amortization Total Net Book Value Amortizable intangible assets: Customer lists and other $ $ $ $ $ $ License agreements — — $ $ $ $ Non-amortizable intangible assets: Trademarks and other Total intangible assets $ $ The aggregate amortization expense related to amortizable intangible assets was $4.0 million and $3.1 million for the three months ended December 31, 2015 and 2014, respectively, and was $7.7 million and $6.1 million for the six months ended December 31, 2015 and 2014, respectively. The estimated aggregate amortization expense for the remainder of fiscal 2016 and for each of fiscal 2017 to 2020 is $7.6 million, $12.9 million, $11.9 million, $11.3 million and $4.3 million, respectively.

CHARGES ASSOCIATED WITH RESTRUC

CHARGES ASSOCIATED WITH RESTRUCTURING ACTIVITIES	6 Months Ended
	Dec. 31, 2015
CHARGES ASSOCIATED WITH RESTRUCTURING ACTIVITIES
CHARGES ASSOCIATED WITH RESTRUCTURING ACTIVITIES	N OTE 4 – C HARGES A SSOCIATED WITH RESTRUCTURING ACTIVITIES In October 2015, officers authorized by the Company’s Board of Directors approved plans to transform and modernize the Company’s global technology infrastructure (“GTI”) to fundamentally change the way it delivers information technology services internally (such initiative, the “GTI Restructuring”). As part of the GTI Restructuring, the Company is transitioning its GTI from Company-owned assets to a primarily vendor-owned model where it will pay for services as they are used. This model, with a different third-party provider, is expected to provide an enhanced scalable platform to better support current and future requirements, help the Company achieve key strategic opportunities and improve the Company’s agility and flexibility to respond to the demands of the business by leveraging more advanced technologies. This transition is expected to result in operational efficiencies and reduce the Company’s information technology service and infrastructure costs in the future. The Company anticipates the GTI Restructuring will result in related restructuring and other charges of approximately $40 million to $50 million, consisting of non-cash asset write-offs, as well as employee-related and other implementation costs, which will be funded by cash from operations. The Company expects the implementation of the GTI Restructuring, and the related charges, will continue through calendar year 2016. The following table presents GTI Restructuring charges and the related activities under this initiative to date: (In millions) Employee- Related Costs Asset Write-offs Contract Terminations Total Charges $ $ $ $ Cash payments — — ) ) Non-cash asset write-offs — ) — ) Accrued GTI Restructuring balance at December 31, 2015 $ $ — $ $ Accrued GTI Restructuring charges at December 31, 2015 are expected to result in cash expenditures funded from cash provided by operations in fiscal 2016. Other charges in connection with the implementation of this initiative were $2.0 million for the three and six months ended December 31, 2015 and primarily relate to consulting services. These charges are included in Restructuring and other charges in the accompanying consolidated statements of earnings.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	3 Months Ended
	Dec. 31, 2015
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	N OTE 5 – D ERIVATIVE F INANCIAL I NSTRUMENTS The Company addresses certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments. The Company enters into foreign currency forward contracts and may enter into option contracts to reduce the effects of fluctuating foreign currency exchange rates. In addition, the Company enters into interest rate derivatives to manage the effects of interest rate movements on the Company’s aggregate liability portfolio, including potential future debt issuances. The Company also enters into foreign currency forward contracts and may use option contracts, not designated as hedging instruments, to mitigate the change in fair value of specific assets and liabilities on the balance sheet. The Company does not utilize derivative financial instruments for trading or speculative purposes. Costs associated with entering into derivative financial instruments have not been material to the Company’s consolidated financial results. For each derivative contract entered into where the Company looks to obtain hedge accounting treatment, the Company formally and contemporaneously documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking the hedge transaction, the nature of the risk being hedged, how the hedging instruments’ effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method of measuring ineffectiveness. This process includes linking all derivatives to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the inception of the hedges and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. If it is determined that a derivative is not highly effective, or that it has ceased to be a highly effective hedge, the Company will be required to discontinue hedge accounting with respect to that derivative prospectively. The fair values of the Company’s derivative financial instruments included in the consolidated balance sheets are presented as follows: Asset Derivatives Liability Derivatives (In millions) Balance Sheet Location Fair Value (1) Balance Sheet Location Fair Value (1) December 31 2015 June 30 2015 December 31 2015 June 30 2015 Derivatives Designated as Hedging Instruments: Foreign currency forward contracts Prepaid expenses and other current assets $ $ Other accrued liabilities $ $ Interest rate swap contracts Prepaid expenses and other current assets — Other accrued liabilities — Total Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments: Foreign currency forward contracts Prepaid expenses and other current assets Other accrued liabilities Total Derivatives $ $ $ $ (1) See Note 6 – Fair Value Measurements for further information about how the fair value of derivative assets and liabilities are determined. The amounts of the gains and losses related to the Company’s derivative financial instruments designated as hedging instruments are presented as follows: (In millions) Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion) Amount of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion) (1) Three Months Ended December 31 Three Months Ended December 31 2015 2014 2015 2014 Derivatives in Cash Flow Hedging Relationships: Foreign currency forward contracts $ $ Cost of sales $ $ Selling, general and administrative Settled interest rate-related derivatives — — Interest expense — Total derivatives $ $ $ $ (1) The amount of gain recognized in earnings related to the amount excluded from effectiveness testing was $1.4 million and $0.6 million for the three months ended December 31, 2015 and 2014, respectively . There was no gain (loss) recognized in earnings related to the ineffective portion of the hedging relationships for the three months ended December 31, 2015. The amount of gain recognized in earnings related to the ineffective portion of the hedging relationships was $0.6 million for the three months ended December 31, 2014. (In millions) Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion) Amount of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion) (1) Six Months Ended December 31 Six Months Ended December 31 2015 2014 2015 2014 Derivatives in Cash Flow Hedging Relationships: Foreign currency forward contracts $ $ Cost of sales $ $ Selling, general and administrative Settled interest rate-related derivatives — — Interest expense Total derivatives $ $ $ $ (1) The amount of gain (loss) recognized in earnings related to the amount excluded from effectiveness testing was $1.5 million and $(0.8) million for the six months ended December 31, 2015 and 2014, respectively . The amount of gain recognized in earnings related to the ineffective portion of the hedging relationships was $0.1 million and $0.6 million for the six months ended December 31, 2015 and 2014, respectively. (In millions) Location of Gain or (Loss) Recognized in Earnings on Derivatives Amount of Gain or (Loss) Recognized in Earnings on Derivatives (1) Three Months Ended December 31 Six Months Ended December 31 2015 2014 2015 2014 Derivatives in Fair Value Hedging Relationships: Interest rate swap contracts Interest expense $ ) $ — $ $ — (1) Changes in the fair value of the interest rate swap agreements are exactly offset by the change in the fair value of the underlying long-term debt. The amounts of the gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments are presented as follows: (In millions) Location of Gain or (Loss) Recognized in Earnings on Derivatives Amount of Gain or (Loss) Recognized in Earnings on Derivatives Derivatives Not Designated as Hedging Instruments: Three Months Ended December 31 Six Months Ended December 31 2015 2014 2015 2014 Foreign currency forward contracts Selling, general and administrative $ ) $ $ $ Cash-Flow Hedges The Company enters into foreign currency forward contracts to hedge anticipated transactions, as well as receivables and payables denominated in foreign currencies, for periods consistent with the Company’s identified exposures. The purpose of the hedging activities is to minimize the effect of foreign exchange rate movements on costs and on the cash flows that the Company receives from foreign subsidiaries. The majority of foreign currency forward contracts are denominated in currencies of major industrial countries. The Company may also enter into foreign currency option contracts to hedge anticipated transactions where there is a high probability that anticipated exposures will materialize. The foreign currency forward contracts entered into to hedge anticipated transactions have been designated as cash-flow hedges and have varying maturities through the end of December 2017. The Company enters into interest rate forward contracts to hedge anticipated issuance of debt for periods consistent with the Company’s identified exposures. The purpose of the hedging activities is to minimize the effect of interest rate movements on cost of debt issuance. The ineffective portion of both foreign currency forward and interest rate derivatives is recorded in current-period earnings. For hedge contracts that are no longer deemed highly effective, hedge accounting is discontinued, and gains and losses in AOCI are reclassified to earnings when the underlying forecasted transaction occurs. If it is probable that the forecasted transaction will no longer occur, then any gains or losses in AOCI are reclassified to current-period earnings. As of December 31, 2015, the Company’s foreign currency cash-flow hedges were highly effective. At December 31, 2015, the Company had foreign currency forward contracts in the amount of $2,489.1 million. The foreign currencies included in foreign currency forward contracts (notional value stated in U.S. dollars) are principally the British pound ($498.5 million), Euro ($384.3 million), Chinese yuan ($283.3 million), Hong Kong dollar ($186.0 million), Swiss franc ($177.6 million), Canadian dollar ($151.2 million) and Australian dollar ($140.5 million). The estimated net gain on foreign currency forward contracts and settled interest rate-related derivatives as of December 31, 2015 that is expected to be reclassified from AOCI into earnings, net of tax, within the next twelve months is $26.7 million. The accumulated gain on these derivative instruments in AOCI was $72.6 million and $68.4 million as of December 31, 2015 and June 30, 2015, respectively. Fair-Value Hedges The Company enters into interest rate derivative contracts to manage the exposure to interest rate fluctuations on its funded indebtedness. The Company has interest rate swap agreements, with a notional amount totaling $250.0 million, to effectively convert the fixed rate interest on its 2.35% Senior Notes due August 15, 2022 to variable interest rates based on three-month LIBOR plus a margin. These interest rate swap agreements are designated as fair-value hedges of the related long-term debt, and the changes in the fair value of the interest rate swap agreements are exactly offset by the change in the fair value of the underlying long-term debt. Credit Risk As a matter of policy, the Company enters into derivative contracts only with counterparties that have a long-term credit rating of at least A- or higher by at least two nationally recognized rating agencies. The counterparties to these contracts are major financial institutions. Exposure to credit risk in the event of nonperformance by any of the counterparties is limited to the gross fair value of contracts in asset positions, which totaled $53.9 million at December 31, 2015. To manage this risk, the Company has established strict counterparty credit guidelines that are continually monitored. Accordingly, management believes risk of loss under these hedging contracts is remote.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Dec. 31, 2015
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	N OTE 6 – F AIR V ALUE M EASUREMENTS The Company records certain of its financial assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. The accounting for fair value measurements must be applied to nonfinancial assets and nonfinancial liabilities that require initial measurement or remeasurement at fair value, which principally consist of assets and liabilities acquired through business combinations and goodwill, indefinite-lived intangible assets and long-lived assets for the purposes of calculating potential impairment. The Company is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are as follows: Level 1: Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date. Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. The following table presents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015: (In millions) Level 1 Level 2 Level 3 Total Assets: Foreign currency forward contracts $ — $ $ — $ Interest rate swap contracts — — Available-for-sale securities: U.S. government and agency securities — — Foreign government and agency securities — — Corporate notes and bonds — — Time deposits — — Other securities — — Total $ — $ $ — $ Liabilities: Foreign currency forward contracts $ — $ $ — $ Contingent consideration — — Total $ — $ $ $ The following table presents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2015: (In millions) Level 1 Level 2 Level 3 Total Assets: Foreign currency forward contracts $ — $ $ — $ Available-for-sale securities: U.S. government and agency securities — — Foreign government and agency securities — — Corporate notes and bonds — — Time deposits — — Other securities — — Total $ — $ $ — $ Liabilities: Foreign currency forward contracts $ — $ $ — $ Interest rate swap contracts — — Contingent consideration — — Total $ — $ $ $ The estimated fair values of the Company’s financial instruments are as follows: December 31 2015 June 30 2015 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Nonderivatives Cash and cash equivalents $ $ $ $ Available-for-sale securities Current and long-term debt Additional purchase price payable Contingent consideration Derivatives Foreign currency forward contracts – asset (liability) Interest rate swap contracts – asset (liability) ) ) The following methods and assumptions were used to estimate the fair value of the Company’s financial instruments for which it is practicable to estimate that value: Cash and cash equivalents – Cash and all highly-liquid securities with original maturities of three months or less are classified as cash and cash equivalents, primarily consisting of cash deposits in interest bearing accounts, money market funds and time deposits. The carrying amount approximates fair value, primarily because of the short maturity of cash equivalent instruments. Available-for-sale securities – Available-for-sale securities are classified within Level 2 of the valuation hierarchy and are valued using third-party pricing services, and for time deposits, the carrying amount approximates fair value. To determine fair value, the pricing services use market prices or prices derived from other observable market inputs such as benchmark curves, credit spreads, broker/dealer quotes, and other industry and economic factors. Foreign currency forward contracts – The fair values of the Company’s foreign currency forward contracts were determined using an industry-standard valuation model, which is based on an income approach. The significant observable inputs to the model, such as swap yield curves and currency spot and forward rates, were obtained from an independent pricing service. To determine the fair value of contracts under the model, the difference between the contract price and the current forward rate was discounted using LIBOR for contracts with maturities up to 12 months, and swap yield curves for contracts with maturities greater than 12 months. Interest rate swap contracts – The fair values of the Company’s interest rate swap contracts were determined using an industry-standard valuation model, which is based on the income approach. The significant observable inputs to the model, such as swap yield curves and LIBOR forward rates, were obtained from independent pricing services. Current and long-term debt – The fair value of the Company’s debt was estimated based on the current rates offered to the Company for debt with the same remaining maturities. To a lesser extent, debt also includes capital lease obligations for which the carrying amount approximates the fair value. The Company’s debt is classified within Level 2 of the valuation hierarchy. Additional purchase price payable – The Company’s additional purchase price payable represents fixed minimum additional purchase price that was discounted using the Company’s incremental borrowing rate, which was approximately 1%. The additional purchase price payable is classified within Level 2 of the valuation hierarchy. Contingent Consideration – The fair value of the Company’s contingent consideration obligations is measured using Level 3 inputs which include a probability weighted-average cost of capital to discount estimated future cash flows based upon the likelihood of achieving certain future operating results. The fair value of the contingent consideration related to the acquisition earn-outs was determined by discounting the future cash flows using discount rates ranging from 9% to 14%. These rates reflect the relative risk and probability of achieving future operating results with the potential earn-outs on the individual acquisitions. These implied rates are deemed to be unobservable inputs and as such the Company’s contingent consideration is classified within Level 3 of the valuation hierarchy. An increase or decrease in the risk premium of 100 basis points would result in a value that is approximately $5 million higher or lower than the current liability recorded. Changes in the fair value of the contingent consideration obligations for the six months ended December 31, 2015 are included in Selling, general and administrative expenses in the accompanying consolidated statements of earnings and were as follows: (In millions) Fair Value Contingent consideration at June 30, 2015 $ Change in fair value Contingent consideration at December 31, 2015 $

PENSION AND POST-RETIREMENT BEN

PENSION AND POST-RETIREMENT BENEFIT PLANS	3 Months Ended
	Dec. 31, 2015
PENSION AND POST-RETIREMENT BENEFIT PLANS
PENSION AND POST-RETIREMENT BENEFIT PLANS	N OTE 7 – P ENSION AND P OST -R ETIREMENT B ENEFIT P LANS The Company maintains pension plans covering substantially all of its full-time employees for its U.S. operations and a majority of its international operations. The Company also maintains post-retirement benefit plans which provide certain medical and dental benefits to eligible employees. Descriptions of these plans are discussed in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015. The components of net periodic benefit cost for the three months ended December 31, 2015 and 2014 consisted of the following: Other than Pension Plans Pension Plans U.S. International Post-retirement (In millions) 2015 2014 2015 2014 2015 2014 Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) ) ) Amortization of: Prior service cost Actuarial loss Settlement — — — — — Net periodic benefit cost $ $ $ $ $ $ The components of net periodic benefit cost for the six months ended December 31, 2015 and 2014 consisted of the following: Other than Pension Plans Pension Plans U.S. International Post-retirement (In millions) 2015 2014 2015 2014 2015 2014 Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) ) ) Amortization of: Prior service cost Actuarial loss Settlement — — — — — Net periodic benefit cost $ $ $ $ $ $ During the six months ended December 31, 2015, the Company made contributions to its international pension plans totaling approximately $6 million. The amounts recognized in the consolidated balance sheets related to the Company’s pension and post-retirement benefit plans consist of the following: December 31 June 30 (In millions) 2015 2015 Other assets $ $ Other accrued liabilities ) ) Other noncurrent liabilities ) ) Funded status ) ) Accumulated other comprehensive loss Net amount recognized $ $

CONTINGENCIES

CONTINGENCIES	3 Months Ended
	Dec. 31, 2015
CONTINGENCIES
CONTINGENCIES	N OTE 8 – C ONTINGENCIES Legal Proceedings The Company is involved, from time to time, in litigation and other legal proceedings incidental to its business. Management believes that the outcome of current litigation and legal proceedings will not have a material adverse effect upon the Company’s results of operations, financial condition or cash flows. However, management’s assessment of the Company’s current litigation and other legal proceedings could change in light of the discovery of facts with respect to legal actions or other proceedings pending against the Company not presently known to the Company or determinations by judges, juries or other finders of fact which are not in accord with management’s evaluation of the possible liability or outcome of such litigation or proceedings. Reasonably possible losses in addition to the amounts accrued for litigation and other legal proceedings are not material to the Company’s consolidated financial statements.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Dec. 31, 2015
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	N OTE 9 – S TOCK -B ASED C OMPENSATION The Company has various stock-based compensation programs (the “Plans”) under which awards, including stock options, restricted stock units (“RSUs”), performance share units (“PSUs”), PSUs based on total stockholder return, long-term PSUs and share units, may be granted. During the second quarter of fiscal 2016, the amount of shares of the Company’s Class A Common Stock that was reserved and available to be granted pursuant to these Plans was increased by 10,600,000 to approximately 17,169,000 shares as of December 31, 2015. Total net stock-based compensation expense is attributable to the granting of, and the remaining requisite service periods of, stock options, RSUs, PSUs, PSUs based on total stockholder return, long-term PSUs, and share units. Compensation expense attributable to net stock-based compensation is as follows: Three Months Ended December 31 Six Months Ended December 31 (In millions) 2015 2014 2015 2014 Compensation expense $ $ $ $ Income tax benefit As of December 31, 2015, the total unrecognized compensation cost related to unvested stock-based awards was $207.8 million and the related weighted-average period over which it is expected to be recognized is approximately two years. Stock Options The following is a summary of the Company’s stock option programs as of December 31, 2015 and changes during the six months then ended: (Shares in thousands) Shares Weighted- Average Exercise Price Per Share Aggregate Intrinsic Value (1) (in millions) Weighted- Average Contractual Life Remaining in Years Outstanding at June 30, 2015 $ Granted at fair value Exercised ) Expired ) Forfeited ) Outstanding at December 31, 2015 $ Vested and expected to vest at December 31, 2015 $ Exercisable at December 31, 2015 $ (1) The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The following is a summary of the per-share weighted-average grant date fair value of stock options granted and total intrinsic value of stock options exercised: Three Months Ended December 31 Six Months Ended December 31 (In millions, except per share data) 2015 2014 2015 2014 Per-share weighted-average grant date fair value of stock options granted $ $ $ $ Intrinsic value of stock options exercised $ $ $ $ The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended December 31 Six Months Ended December 31 2015 2014 2015 2014 Weighted-average expected stock-price volatility 27% 28% 27% 28% Weighted-average expected option life 9 years 9 years 7 years 7 years Average risk-free interest rate 2.0% 2.3% 1.9% 2.2% Average dividend yield 1.2% 1.1% 1.2% 1.1% The Company uses a weighted-average expected stock-price volatility assumption that is a combination of both current and historical implied volatilities of the underlying stock. The implied volatilities were obtained from publicly available data sources. For the weighted-average expected option life assumption, the Company considers the exercise behavior for past grants and models the pattern of aggregate exercises. The average risk-free interest rate is based on the U.S. Treasury strip rate for the expected term of the options, and the average dividend yield is based on historical experience. Restricted Stock Units The Company granted approximately 1,555,400 RSUs during the six months ended December 31, 2015 which, at the time of grant, were scheduled to vest as follows: 544,100 in fiscal 2017, 559,200 in fiscal 2018 and 452,100 in fiscal 2019. All RSUs are subject to the continued employment or retirement of the grantees. Beginning in fiscal 2015, the RSUs granted are accompanied by dividend equivalent rights, payable upon settlement either in cash or shares (based on the terms of the particular award) and, as such, were valued at the closing market price of the Company’s Class A Common Stock on the date of grant. The following is a summary of the status of the Company’s RSUs as of December 31, 2015 and activity during the six months then ended: Weighted-Average Grant Date (Shares in thousands) Shares Fair Value Per Share Nonvested at June 30, 2015 $ Granted Dividend equivalents Vested ) Forfeited ) Nonvested at December 31, 2015 Performance Share Units During the six months ended December 31, 2015, the Company granted approximately 277,400 PSUs, which will be settled in stock subject to the achievement of the Company’s net sales, diluted net earnings per common share and return on invested capital goals for the three fiscal years ending June 30, 2018, all subject to the continued employment or retirement of the grantees. PSUs are accompanied by dividend equivalent rights that will be payable in cash upon settlement. In September 2015, approximately 276,200 shares of the Company’s Class A Common Stock were issued and related accrued dividends were paid, relative to the target goals set at the time of the issuance, in settlement of 249,900 PSUs which vested as of June 30, 2015. The following is a summary of the status of the Company’s PSUs as of December 31, 2015 and activity during the six months then ended: Weighted-Average Grant Date (Shares in thousands) Shares Fair Value Per Share Nonvested at June 30, 2015 $ Granted Vested — — Forfeited ) Nonvested at December 31, 2015 Performance Share Units Based on Total Stockholder Return During fiscal 2013, the Company granted PSUs to an executive of the Company with an aggregate target payout of 162,760 shares of the Company’s Class A Common Stock, subject to continued employment through the end of the relative performance periods. The first performance period ended June 30, 2015, and the remaining performance periods end June 30, 2016 and 2017. The remaining PSUs will be settled based upon the Company’s relative total stockholder return (“TSR”) over the relevant performance period as compared to companies in the S&P 500 on July 1, 2012. No settlement will occur if the Company’s TSR falls below a minimum threshold, and up to an aggregate of 173,611 shares of the Company’s Class A Common Stock will be issued depending on the extent to which the Company’s TSR equals or exceeds the minimum threshold. The PSUs are accompanied by dividend equivalent rights that will be payable in cash upon settlement. The grant date fair value of the PSUs of $11.0 million was estimated using a lattice model with a Monte Carlo simulation and the following assumptions for each performance period, respectively: contractual life of 33, 45 and 57 months, average risk-free interest rate of 0.3%, 0.5% and 0.7% and a dividend yield of 1.0%. Using the historical stock prices and dividends from public sources, the Company estimated the covariance structure of the returns on S&P 500 stocks. The volatility for the Company’s stock produced by this estimation was 32%. The average risk-free interest rate is based on the U.S. Treasury strip rates over the contractual term of the grant, and the dividend yield is based on historical experience. In September 2015, 42,549 shares of the Company’s Class A Common Stock were issued and related dividends were paid, in accordance with the terms of the grant, related to the performance period ended June 30, 2015. The remaining PSUs have an aggregate target payout of 108,507 shares as of December 31, 2015. Long-term Performance Share Units During September 2015, the Company granted PSUs to an executive of the Company with an aggregate target payout of 387,848 shares (in three tranches of approximately 129,283 each) of the Company’s Class A Common Stock, generally subject to continued employment through the end of relative performance periods, which end June 30, 2018, 2019 and 2020. No portion of the award will generally vest unless the Company has achieved positive Net Earnings, as defined in the PSU award agreement, for the fiscal year ending June 30, 2016. If the Net Earnings goal is met, then performance and vesting of each tranche will be based on the Company achieving positive Cumulative Operating Income, as defined in the performance share unit award agreement, during the relative performance period. Payment with respect to a tranche will be made on the third anniversary of the last day of the respective performance period. The PSUs are accompanied by dividend equivalent rights that will be payable in cash at the same time as the payment of shares of Class A Common Stock. The grant date fair value of these PSUs of $30.0 million was estimated using the closing stock price of the Company’s Class A Common Stock as of September 4, 2015, the date of grant. Share Units The Company grants share units to certain non-employee directors under the Non-Employee Director Share Incentive Plan. The following is a summary of the status of the Company’s share units as of December 31, 2015 and activity during the six months then ended: Weighted-Average Grant Date (Shares in thousands) Shares Fair Value Per Share Outstanding at June 30, 2015 $ Granted Dividend equivalents Converted — — Outstanding at December 31, 2015 Cash Units Certain non-employee directors defer cash compensation in the form of cash payout share units, which are not subject to the Plans. These share units are classified as liabilities and, as such, their fair value is adjusted to reflect the current market value of the Company’s Class A Common Stock. The Company recorded $1.9 million and $0.6 million as compensation expense to reflect additional deferrals and the change in the market value for the three months ended December 31, 2015 and 2014, respectively. The Company recorded $0.7 million and $0.8 million as compensation expense to reflect additional deferrals and the change in the market value for the six months ended December 31, 2015 and 2014, respectively.

NET EARNINGS ATTRIBUTABLE TO TH

NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE	3 Months Ended
	Dec. 31, 2015
NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE
NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE	N OTE 10 – N ET E ARNINGS A TTRIBUTABLE TO T HE E STÉE L AUDER C OMPANIES I NC. P ER C OMMON S HARE Net earnings attributable to The Estée Lauder Companies Inc. per common share (“basic EPS”) is computed by dividing net earnings attributable to The Estée Lauder Companies Inc. by the weighted-average number of common shares outstanding and contingently issuable shares (which satisfy certain conditions). Net earnings attributable to The Estée Lauder Companies Inc. per common share assuming dilution (“diluted EPS”) is computed by reflecting potential dilution from stock-based awards. A reconciliation between the numerator and denominator of the basic and diluted EPS computations is as follows: Three Months Ended December 31 Six Months Ended December 31 (In millions, except per share data) 2015 2014 2015 2014 Numerator: Net earnings attributable to The Estée Lauder Companies Inc. $ $ $ $ Denominator: Weighted-average common shares outstanding – Basic Effect of dilutive stock options Effect of RSUs Effect of PSUs based on TSR — — Weighted-average common shares outstanding – Diluted Net earnings attributable to The Estée Lauder Companies Inc. per common share: Basic $ $ $ $ Diluted As of December 31, 2015 and 2014, outstanding options to purchase 0.2 million and 2.2 million shares, respectively, of Class A Common Stock were not included in the computation of diluted EPS because their inclusion would be anti-dilutive. As of December 31, 2015 and 2014, 0.8 million shares of Class A Common Stock underlying PSUs have been excluded from the calculation of diluted EPS because the number of shares ultimately issued is contingent on the achievement of certain performance targets of the Company, as discussed in Note 9 – Stock-Based Compensation.

EQUITY

EQUITY	3 Months Ended
	Dec. 31, 2015
EQUITY
EQUITY	N OTE 11 – E QUITY Total Stockholders’ Equity – The Estée Lauder Companies Inc. (In millions) Common Stock Paid-in Capital Retained Earnings AOCI Treasury Stock Total Non- controlling Interests Total Equity Balance at June 30, 2015 $ $ $ $ ) $ ) $ $ $ Net earnings — — — — Common stock dividends — — ) — — ) ) ) Other comprehensive loss — — — ) — ) ) ) Acquisition of treasury stock — — — — ) ) — ) Stock-based compensation — — — ) — Balance at December 31, 2015 $ $ $ $ ) $ ) $ $ $ The following is a summary of quarterly cash dividends declared per share on the Company’s Class A and Class B Common Stock during the six months ended December 31, 2015: Date Declared Record Date Payable Date Amount per Share August 14, 2015 August 31, 2015 September 15, 2015 $.24 October 30, 2015 November 30, 2015 December 15, 2015 $.30 On February 4, 2016, a dividend was declared in the amount of $.30 per share on the Company’s Class A and Class B Common Stock. The dividend is payable in cash on March 15, 2016 to stockholders of record at the close of business on February 29, 2016. Common Stock During the six months ended December 31, 2015, the Company purchased 7.6 million shares of its Class A Common Stock for $627.8 million. During the six months ended December 31, 2015, approximately 0.4 million shares of the Company’s Class B Common Stock were converted into the same amount of shares of the Company’s Class A Common Stock. Subsequent to December 31, 2015 and through January 29, 2016, the Company repurchased approximately 0.9 million additional shares of its Class A Common Stock for $75.0 million pursuant to its share repurchase program. Accumulated Other Comprehensive Income (Loss) The following table represents changes in AOCI, net of tax, by component for the six months ended December 31, 2015: Net Net Amounts Unrealized Derivative Included in Investment Instrument Net Periodic Translation (In millions) Gain (Loss) Gain (Loss) Benefit Cost Adjustments Total Balance at June 30, 2015 $ $ $ $ $ OCI before reclassifications Amounts reclassified from AOCI — — Net current-period OCI Balance at December 31, 2015 $ $ $ $ $ (1) Includes foreign currency translation gains of $6.5 million. The following table represents the effects of reclassification adjustments from AOCI into net earnings for the three and six months ended December 31, 2015 and 2014: Amount Reclassified from AOCI Three Months Ended December 31 Six Months Ended December 31 Affected Line Item in Consolidated (In millions) 2015 2014 2015 2014 Statement of Earnings Gain (Loss) on Investments Gain (loss) on investments $ ) $ $ — $ Interest income and investment income, net Benefit (provision) for deferred taxes — ) — ) Provision for income taxes $ ) $ $ — $ Net earnings Gain (Loss) on Cash-Flow Hedges Foreign currency forward contracts $ $ $ $ Cost of sales Foreign currency forward contracts Selling, general and administrative Settled interest rate-related derivatives Interest expense Earnings before income taxes Benefit (provision) for deferred taxes ) ) ) ) Provision for income taxes $ $ $ $ Net earnings Amounts Included in Net Periodic Benefit Cost Amortization of prior service cost $ ) $ ) $ ) $ ) (1) Amortization of actuarial loss ) ) ) ) (1) Settlement ) — ) — (1) ) ) ) ) Earnings before income taxes Benefit (provision) for deferred taxes Provision for income taxes $ ) $ ) $ ) $ ) Net earnings Total reclassification adjustments, net $ $ $ $ ) Net earnings (1) See Note 7 – Pension and Post-Retirement Benefit Plans for additional information.

STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS	3 Months Ended
	Dec. 31, 2015
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS	N OTE 12 – S TATEMENT OF C ASH F LOWS Supplemental cash flow information for the six months ended December 31, 2015 and 2014 is as follows: (In millions) 2015 2014 Cash: Cash paid during the period for interest $ $ Cash paid during the period for income taxes $ $ Non-cash investing and financing activities: Incremental tax benefit from the exercise of stock options $ ) $ ) Capital lease and asset retirement obligations incurred $ $ Non-cash purchases (sales) of short- and long-term investments, net $ ) $ — Property, plant and equipment accrued but unpaid $ $ Increase (decrease) in accrued dividend equivalents $ $ ) Accrued dividend distribution to noncontrolling interest $ — $

SEGMENT DATA AND RELATED INFORM

SEGMENT DATA AND RELATED INFORMATION	3 Months Ended
	Dec. 31, 2015
SEGMENT DATA AND RELATED INFORMATION
SEGMENT DATA AND RELATED INFORMATION	N OTE 13 – S EGMENT D ATA AND R ELATED I NFORMATION Reportable operating segments include components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the “Chief Executive”) in deciding how to allocate resources and in assessing performance. Although the Company operates in one business segment, beauty products, management also evaluates performance on a product category basis. Product category performance is measured based upon net sales and earnings before income taxes, interest expense and interest income and investment income, net. Charges associated with restructuring activities are not allocated to product categories because they resulted from activities that are part of a company-wide program to redesign the Company’s GTI. The accounting policies for the Company’s reportable segments are substantially the same as those for the consolidated financial statements, as described in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015. 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 Chief Executive or included herein. There has been no significant variance in the total or long-lived asset values associated with the Company’s segment data since June 30, 2015. Three Months Ended December 31 Six Months Ended December 31 (In millions) 2015 2014 2015 2014 PRODUCT CATEGORY DATA Net Sales: Skin Care $ $ $ $ Makeup Fragrance Hair Care Other Net Sales $ $ $ $ Operating Income (Loss) before charges associated with restructuring activities: Skin Care $ $ $ $ Makeup Fragrance Hair Care Other ) ) Reconciliation: Charges associated with restructuring activities ) — ) — Interest expense ) ) ) ) Interest income and investment income, net Earnings before income taxes $ $ $ $ GEOGRAPHIC DATA Net Sales: The Americas $ $ $ $ Europe, the Middle East & Africa Asia/Pacific Net Sales $ $ $ $ Operating Income (Loss): The Americas $ $ $ $ Europe, the Middle East & Africa Asia/Pacific Charges associated with restructuring activities ) — ) — Operating Income $ $ $ $

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of The Estée Lauder Companies Inc. and its subsidiaries (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated. The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015.
Management Estimates	Management Estimates The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses reported in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, pension and other post-retirement benefit costs, goodwill, other intangible assets and long-lived assets, and income taxes. Descriptions of these policies are discussed in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates and assumptions resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods.
Currency Translation and Transactions	Currency Translation and Transactions All assets and liabilities of foreign subsidiaries and affiliates are translated at period-end rates of exchange, while revenue and expenses are translated at weighted-average rates of exchange for the period. Unrealized translation gains (losses) reported as cumulative translation adjustments through other comprehensive income (loss) (“OCI”) attributable to The Estée Lauder Companies Inc. amounted to $(44.7) million and $(111.4) million, net of tax, during the three months ended December 31, 2015 and 2014, respectively, and $(128.3) million and $(248.1) million, net of tax, during the six months ended December 31, 2015 and 2014, respectively. For the Company’s Venezuelan subsidiary operating in a highly inflationary economy, the U.S. dollar is the functional currency. Remeasurement adjustments in financial statements in a highly inflationary economy and other transactional gains and losses are reflected in earnings. The Company enters into foreign currency forward contracts and may enter into option contracts to hedge foreign currency transactions for periods consistent with its identified exposures. Accordingly, the Company categorizes these instruments as entered into for purposes other than trading. The accompanying consolidated statements of earnings include net exchange gains (losses) on foreign currency transactions of $10.4 million and $(6.5) million during the three months ended December 31, 2015 and 2014, respectively, and $5.5 million and $(16.3) million during the six months ended December 31, 2015 and 2014, respectively.
Accounts Receivable	Accounts Receivable Accounts receivable is stated net of the allowance for doubtful accounts and customer deductions totaling $20.8 million and $20.6 million as of December 31, 2015 and June 30, 2015, respectively.
Concentration of Credit Risk	Concentration of Credit Risk The Company is a worldwide manufacturer, marketer and distributor of skin care, makeup, fragrance and hair care products. The Company’s sales subject to credit risk are made primarily to department stores, perfumeries, specialty multi-brand retailers and retailers in its travel retail business. The Company grants credit to all qualified customers and does not believe it is exposed significantly to any undue concentration of credit risk. The Company’s largest customer sells products primarily within the United States and accounted for $253.0 million, or 8%, and $266.0 million, or 9%, of the Company’s consolidated net sales for the three months ended December 31, 2015 and 2014, respectively, and $591.7 million, or 10%, and $558.8 million, or 10%, of the Company’s consolidated net sales for the six months ended December 31, 2015 and 2014, respectively. This customer accounted for $137.2 million, or 10%, and $139.1 million, or 12%, of the Company’s accounts receivable at December 31, 2015 and June 30, 2015, respectively.
Property, Plant and Equipment	Property, Plant and Equipment December 31 June 30 (In millions) 2015 2015 Assets (Useful Life) Land $ $ Buildings and improvements (10 to 40 years) Machinery and equipment (3 to 10 years) Computer hardware and software (4 to 15 years) Furniture and fixtures (5 to 10 years) Leasehold improvements Less accumulated depreciation and amortization $ $ The cost of assets related to projects in progress of $144.0 million and $192.0 million as of December 31, 2015 and June 30, 2015, respectively, is included in their respective asset categories above. Depreciation and amortization of property, plant and equipment was $100.2 million and $96.2 million during the three months ended December 31 , 2015 and 2014, respectively, and $195.4 million and $195.1 million during the six months ended December 31, 2015 and 2014, respectively. Depreciation and amortization related to the Company’s manufacturing process is included in Cost of Sales, and all other depreciation and amortization is included in Selling, general and administrative expenses in the accompanying consolidated statements of earnings.
Income Taxes	Income Taxes The effective rate for income taxes was 27.2% and 29.6% for the three months ended December 31, 2015 and 2014, respectively, and 28.0% and 30.3% for the six months ended December 31, 2015 and 2014, respectively. The decrease in the effective tax rate for both periods was attributable to a lower effective tax rate on the Company’s foreign operations, the retroactive reinstatement of the U.S. federal research and development tax credit that was signed into law on December 18, 2015 and the reduced impact of income tax reserves as compared to the prior-year period. As of December 31, 2015 and June 30, 2015, the gross amount of unrecognized tax benefits, exclusive of interest and penalties, totaled $73.8 million and $77.8 million, respectively. The total amount of unrecognized tax benefits at December 31, 2015 that, if recognized, would affect the effective tax rate was $48.8 million. During the three months ended December 31, 2015, the Company recognized a gross interest and penalty benefit of $0.3 million in the accompanying consolidated statement of earnings. There was a gross accrued interest and penalty expense of $0.7 million during the six months ended December 31, 2015. The total gross accrued interest and penalties in the accompanying consolidated balance sheets at December 31, 2015 and June 30, 2015 was $16.3 million and $16.5 million, respectively. On the basis of the information available as of December 31, 2015, the Company does not expect any significant changes to the total amount of unrecognized tax benefits within the next twelve months. As of December 31, 2015 and June 30, 2015, the Company had current net deferred tax assets of $275.1 million and $279.0 million, respectively, substantially all of which are included in Prepaid expenses and other current assets in the accompanying consolidated balance sheets. In addition, the Company had noncurrent net deferred tax assets of $64.3 million and $72.1 million as of December 31, 2015 and June 30, 2015, respectively, substantially all of which are included in Other assets in the accompanying consolidated balance sheets.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In November 2015, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance that requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. Under current guidance, deferred taxes for each jurisdiction are presented as a net current asset or liability and net noncurrent asset or liability, requiring an in-depth analysis by jurisdiction to allocate between current and noncurrent. The updated guidance simplifies a company’s analysis by eliminating the requirement to allocate between current and noncurrent deferred taxes by jurisdiction. This guidance becomes effective for the Company’s fiscal 2018 first quarter, with early adoption permitted. The Company may apply the guidance prospectively or retrospectively, for all deferred tax assets and liabilities. The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements. In May 2014, the FASB issued authoritative guidance that defines how companies should report revenues from contracts with customers. The standard requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It provides companies with a single comprehensive five-step principles-based model to use in accounting for revenue and supersedes current revenue recognition requirements, including most industry-specific and transaction-specific revenue guidance. In August 2015, the FASB deferred the effective date of the new revenue standard by one year. As a result, the new standard is not effective for the Company until fiscal 2019, with early adoption permitted. The guidance permits an entity to apply the standard retrospectively to all prior periods presented, with certain practical expedients, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company will apply this new guidance when it becomes effective in fiscal 2019 and has not yet selected a transition method. The Company currently has an implementation team in place that is performing a comprehensive evaluation of the impact of adoption on its consolidated financial statements. No other recently issued accounting pronouncements are expected to have a material impact on the Company’s consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Inventory and Promotional Merchandise	December 31 June 30 (In millions) 2015 2015 Raw materials $ $ Work in process Finished goods Promotional merchandise $ $
Property, Plant and Equipment	December 31 June 30 (In millions) 2015 2015 Assets (Useful Life) Land $ $ Buildings and improvements (10 to 40 years) Machinery and equipment (3 to 10 years) Computer hardware and software (4 to 15 years) Furniture and fixtures (5 to 10 years) Leasehold improvements Less accumulated depreciation and amortization $ $
Other Accrued Liabilities	December 31 June 30 (In millions) 2015 2015 Advertising, merchandising and sampling $ $ Employee compensation Payroll and other taxes Accrued income taxes Other $ $

INVESTMENTS (Tables)

INVESTMENTS (Tables)	3 Months Ended
	Dec. 31, 2015
INVESTMENTS
Schedule of gains and losses recorded in AOCI related to the Company's available-for-sale investments	Gains and losses recorded in accumulated OCI (“AOCI”) related to the Company’s available-for-sale investments as of December 31, 2015 were as follows: (In millions) Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government and agency securities $ $ — $ ) $ Foreign government and agency securities — ) Corporate notes and bonds ) Time deposits — — Other securities — — Total $ $ $ ) $ Gains and losses recorded in AOCI related to the Company’s available-for-sale investments as of June 30, 2015 were as follows: (In millions) Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government and agency securities $ $ $ ) $ Foreign government and agency securities — — Corporate notes and bonds ) Time deposits — — Other securities — Total $ $ $ ) $
Schedule of available-for-sale securities by contractual maturity	The following table presents the Company’s available-for-sale securities by contractual maturity as of December 31, 2015: (In millions) Cost Fair Value Due within one year $ $ Due after one through five years $ $
Schedule of unrealized losses that are not deemed to be other-than-temporarily impaired	The following table presents the fair market value of the Company’s investments with gross unrealized losses that are not deemed to be other-than temporarily impaired as of December 31, 2015: In a Loss Position for Less Than 12 Months In a Loss Position for More Than 12 Months (In millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities $ $ ) $ $
Schedule of gross realized gains and losses on sales of investments	Three Months Ended December 31 Six Months Ended December 31 (In millions) 2015 2014 2015 2014 Gross realized gains $ $ $ $ Gross realized losses ) — ) — Total $ ) $ $ — $

GOODWILL AND OTHER INTANGIBLE23

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Dec. 31, 2015
GOODWILL AND OTHER INTANGIBLE ASSETS
Other intangible assets, by type	December 31, 2015 June 30, 2015 (In millions) Gross Carrying Value Accumulated Amortization Total Net Book Value Gross Carrying Value Accumulated Amortization Total Net Book Value Amortizable intangible assets: Customer lists and other $ $ $ $ $ $ License agreements — — $ $ $ $ Non-amortizable intangible assets: Trademarks and other Total intangible assets $ $

DERIVATIVE FINANCIAL INSTRUME24

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Dec. 31, 2015
DERIVATIVE FINANCIAL INSTRUMENTS
Schedule of fair values of the derivative financial instruments included in the consolidated balance sheets	Asset Derivatives Liability Derivatives (In millions) Balance Sheet Location Fair Value (1) Balance Sheet Location Fair Value (1) December 31 2015 June 30 2015 December 31 2015 June 30 2015 Derivatives Designated as Hedging Instruments: Foreign currency forward contracts Prepaid expenses and other current assets $ $ Other accrued liabilities $ $ Interest rate swap contracts Prepaid expenses and other current assets — Other accrued liabilities — Total Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments: Foreign currency forward contracts Prepaid expenses and other current assets Other accrued liabilities Total Derivatives $ $ $ $ (1) See Note 6 – Fair Value Measurements for further information about how the fair value of derivative assets and liabilities are determined.
Schedule of gains and losses related to derivative financial instruments designated as hedging instruments	(In millions) Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion) Amount of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion) (1) Three Months Ended December 31 Three Months Ended December 31 2015 2014 2015 2014 Derivatives in Cash Flow Hedging Relationships: Foreign currency forward contracts $ $ Cost of sales $ $ Selling, general and administrative Settled interest rate-related derivatives — — Interest expense — Total derivatives $ $ $ $ (1) The amount of gain recognized in earnings related to the amount excluded from effectiveness testing was $1.4 million and $0.6 million for the three months ended December 31, 2015 and 2014, respectively . There was no gain (loss) recognized in earnings related to the ineffective portion of the hedging relationships for the three months ended December 31, 2015. The amount of gain recognized in earnings related to the ineffective portion of the hedging relationships was $0.6 million for the three months ended December 31, 2014. (In millions) Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion) Amount of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion) (1) Six Months Ended December 31 Six Months Ended December 31 2015 2014 2015 2014 Derivatives in Cash Flow Hedging Relationships: Foreign currency forward contracts $ $ Cost of sales $ $ Selling, general and administrative Settled interest rate-related derivatives — — Interest expense Total derivatives $ $ $ $ (1) The amount of gain (loss) recognized in earnings related to the amount excluded from effectiveness testing was $1.5 million and $(0.8) million for the six months ended December 31, 2015 and 2014, respectively . The amount of gain recognized in earnings related to the ineffective portion of the hedging relationships was $0.1 million and $0.6 million for the six months ended December 31, 2015 and 2014, respectively. (In millions) Location of Gain or (Loss) Recognized in Earnings on Derivatives Amount of Gain or (Loss) Recognized in Earnings on Derivatives (1) Three Months Ended December 31 Six Months Ended December 31 2015 2014 2015 2014 Derivatives in Fair Value Hedging Relationships: Interest rate swap contracts Interest expense $ ) $ — $ $ — (1) Changes in the fair value of the interest rate swap agreements are exactly offset by the change in the fair value of the underlying long-term debt.
Schedule of gains and losses related to derivative financial instruments not designated as hedging instruments	(In millions) Location of Gain or (Loss) Recognized in Earnings on Derivatives Amount of Gain or (Loss) Recognized in Earnings on Derivatives Derivatives Not Designated as Hedging Instruments: Three Months Ended December 31 Six Months Ended December 31 2015 2014 2015 2014 Foreign currency forward contracts Selling, general and administrative $ ) $ $ $

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Dec. 31, 2015
FAIR VALUE MEASUREMENTS
Financial assets and liabilities measured at fair value on a recurring basis	The following table presents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015: (In millions) Level 1 Level 2 Level 3 Total Assets: Foreign currency forward contracts $ — $ $ — $ Interest rate swap contracts — — Available-for-sale securities: U.S. government and agency securities — — Foreign government and agency securities — — Corporate notes and bonds — — Time deposits — — Other securities — — Total $ — $ $ — $ Liabilities: Foreign currency forward contracts $ — $ $ — $ Contingent consideration — — Total $ — $ $ $ The following table presents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2015: (In millions) Level 1 Level 2 Level 3 Total Assets: Foreign currency forward contracts $ — $ $ — $ Available-for-sale securities: U.S. government and agency securities — — Foreign government and agency securities — — Corporate notes and bonds — — Time deposits — — Other securities — — Total $ — $ $ — $ Liabilities: Foreign currency forward contracts $ — $ $ — $ Interest rate swap contracts — — Contingent consideration — — Total $ — $ $ $
Estimated fair values of financial instruments	December 31 2015 June 30 2015 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Nonderivatives Cash and cash equivalents $ $ $ $ Available-for-sale securities Current and long-term debt Additional purchase price payable Contingent consideration Derivatives Foreign currency forward contracts – asset (liability) Interest rate swap contracts – asset (liability) ) )

PENSION AND POST-RETIREMENT B26

PENSION AND POST-RETIREMENT BENEFIT PLANS (Tables)	3 Months Ended
	Dec. 31, 2015
PENSION AND POST-RETIREMENT BENEFIT PLANS
Schedule of components of net periodic benefit cost for pension and other post-retirement benefit plans	The components of net periodic benefit cost for the three months ended December 31, 2015 and 2014 consisted of the following: Other than Pension Plans Pension Plans U.S. International Post-retirement (In millions) 2015 2014 2015 2014 2015 2014 Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) ) ) Amortization of: Prior service cost Actuarial loss Settlement — — — — — Net periodic benefit cost $ $ $ $ $ $ The components of net periodic benefit cost for the six months ended December 31, 2015 and 2014 consisted of the following: Other than Pension Plans Pension Plans U.S. International Post-retirement (In millions) 2015 2014 2015 2014 2015 2014 Service cost $ $ $ $ $ $ Interest cost Expected return on plan assets ) ) ) ) ) ) Amortization of: Prior service cost Actuarial loss Settlement — — — — — Net periodic benefit cost $ $ $ $ $ $
Schedule of amounts recognized in the consolidated balance sheets related to the entity's pension and post-retirement benefit plans	December 31 June 30 (In millions) 2015 2015 Other assets $ $ Other accrued liabilities ) ) Other noncurrent liabilities ) ) Funded status ) ) Accumulated other comprehensive loss Net amount recognized $ $

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Dec. 31, 2015
STOCK-BASED COMPENSATION
Schedule of stock-based compensation expense and related income tax benefits	Three Months Ended December 31 Six Months Ended December 31 (In millions) 2015 2014 2015 2014 Compensation expense $ $ $ $ Income tax benefit
Summary of stock option programs and changes during the period	(Shares in thousands) Shares Weighted- Average Exercise Price Per Share Aggregate Intrinsic Value (1) (in millions) Weighted- Average Contractual Life Remaining in Years Outstanding at June 30, 2015 $ Granted at fair value Exercised ) Expired ) Forfeited ) Outstanding at December 31, 2015 $ Vested and expected to vest at December 31, 2015 $ Exercisable at December 31, 2015 $ (1) The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option.
Summary of the per-share weighted-average grant date fair value of stock options granted and total intrinsic value of stock options exercised	Three Months Ended December 31 Six Months Ended December 31 (In millions, except per share data) 2015 2014 2015 2014 Per-share weighted-average grant date fair value of stock options granted $ $ $ $ Intrinsic value of stock options exercised $ $ $ $
Schedule of fair value option-pricing assumptions	Three Months Ended December 31 Six Months Ended December 31 2015 2014 2015 2014 Weighted-average expected stock-price volatility 27% 28% 27% 28% Weighted-average expected option life 9 years 9 years 7 years 7 years Average risk-free interest rate 2.0% 2.3% 1.9% 2.2% Average dividend yield 1.2% 1.1% 1.2% 1.1%
Summary of the status of Restricted Stock Units (RSUs) and activity	Weighted-Average Grant Date (Shares in thousands) Shares Fair Value Per Share Nonvested at June 30, 2015 $ Granted Dividend equivalents Vested ) Forfeited ) Nonvested at December 31, 2015
Summary of the status of Performance Share Units, (PSUs) and activity	Weighted-Average Grant Date (Shares in thousands) Shares Fair Value Per Share Nonvested at June 30, 2015 $ Granted Vested — — Forfeited ) Nonvested at December 31, 2015
Summary of the status of share units and activity under the Non-Employee Director Share Incentive Plan	Weighted-Average Grant Date (Shares in thousands) Shares Fair Value Per Share Outstanding at June 30, 2015 $ Granted Dividend equivalents Converted — — Outstanding at December 31, 2015

NET EARNINGS ATTRIBUTABLE TO 28

NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE (Tables)	3 Months Ended
	Dec. 31, 2015
NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE
Schedule of reconciliation between the numerator and denominator of the basic and diluted EPS computations	Three Months Ended December 31 Six Months Ended December 31 (In millions, except per share data) 2015 2014 2015 2014 Numerator: Net earnings attributable to The Estée Lauder Companies Inc. $ $ $ $ Denominator: Weighted-average common shares outstanding – Basic Effect of dilutive stock options Effect of RSUs Effect of PSUs based on TSR — — Weighted-average common shares outstanding – Diluted Net earnings attributable to The Estée Lauder Companies Inc. per common share: Basic $ $ $ $ Diluted

EQUITY (Tables)

EQUITY (Tables)	3 Months Ended
	Dec. 31, 2015
EQUITY
Schedule of equity	Total Stockholders’ Equity – The Estée Lauder Companies Inc. (In millions) Common Stock Paid-in Capital Retained Earnings AOCI Treasury Stock Total Non- controlling Interests Total Equity Balance at June 30, 2015 $ $ $ $ ) $ ) $ $ $ Net earnings — — — — Common stock dividends — — ) — — ) ) ) Other comprehensive loss — — — ) — ) ) ) Acquisition of treasury stock — — — — ) ) — ) Stock-based compensation — — — ) — Balance at December 31, 2015 $ $ $ $ ) $ ) $ $ $
Summary of cash dividends declared per share on the Company's Class A and Class B Common Stock	The following is a summary of quarterly cash dividends declared per share on the Company’s Class A and Class B Common Stock during the six months ended December 31, 2015: Date Declared Record Date Payable Date Amount per Share August 14, 2015 August 31, 2015 September 15, 2015 $.24 October 30, 2015 November 30, 2015 December 15, 2015 $.30
Schedule of components of AOCI	Net Net Amounts Unrealized Derivative Included in Investment Instrument Net Periodic Translation (In millions) Gain (Loss) Gain (Loss) Benefit Cost Adjustments Total Balance at June 30, 2015 $ $ $ $ $ OCI before reclassifications Amounts reclassified from AOCI — — Net current-period OCI Balance at December 31, 2015 $ $ $ $ $ (1) Includes foreign currency translation gains of $6.5 million.
Schedule of effects of reclassification adjustments from AOCI into net earnings	Amount Reclassified from AOCI Three Months Ended December 31 Six Months Ended December 31 Affected Line Item in Consolidated (In millions) 2015 2014 2015 2014 Statement of Earnings Gain (Loss) on Investments Gain (loss) on investments $ ) $ $ — $ Interest income and investment income, net Benefit (provision) for deferred taxes — ) — ) Provision for income taxes $ ) $ $ — $ Net earnings Gain (Loss) on Cash-Flow Hedges Foreign currency forward contracts $ $ $ $ Cost of sales Foreign currency forward contracts Selling, general and administrative Settled interest rate-related derivatives Interest expense Earnings before income taxes Benefit (provision) for deferred taxes ) ) ) ) Provision for income taxes $ $ $ $ Net earnings Amounts Included in Net Periodic Benefit Cost Amortization of prior service cost $ ) $ ) $ ) $ ) (1) Amortization of actuarial loss ) ) ) ) (1) Settlement ) — ) — (1) ) ) ) ) Earnings before income taxes Benefit (provision) for deferred taxes Provision for income taxes $ ) $ ) $ ) $ ) Net earnings Total reclassification adjustments, net $ $ $ $ ) Net earnings (1) See Note 7 – Pension and Post-Retirement Benefit Plans for additional information.

STATEMENT OF CASH FLOWS (Tables

STATEMENT OF CASH FLOWS (Tables)	3 Months Ended
	Dec. 31, 2015
STATEMENT OF CASH FLOWS
Supplemental cash flow information	(In millions) 2015 2014 Cash: Cash paid during the period for interest $ $ Cash paid during the period for income taxes $ $ Non-cash investing and financing activities: Incremental tax benefit from the exercise of stock options $ ) $ ) Capital lease and asset retirement obligations incurred $ $ Non-cash purchases (sales) of short- and long-term investments, net $ ) $ — Property, plant and equipment accrued but unpaid $ $ Increase (decrease) in accrued dividend equivalents $ $ ) Accrued dividend distribution to noncontrolling interest $ — $

SEGMENT DATA AND RELATED INFO31

SEGMENT DATA AND RELATED INFORMATION (Tables)	3 Months Ended
	Dec. 31, 2015
SEGMENT DATA AND RELATED INFORMATION
Schedule of segment data and related information	Three Months Ended December 31 Six Months Ended December 31 (In millions) 2015 2014 2015 2014 PRODUCT CATEGORY DATA Net Sales: Skin Care $ $ $ $ Makeup Fragrance Hair Care Other Net Sales $ $ $ $ Operating Income (Loss) before charges associated with restructuring activities: Skin Care $ $ $ $ Makeup Fragrance Hair Care Other ) ) Reconciliation: Charges associated with restructuring activities ) — ) — Interest expense ) ) ) ) Interest income and investment income, net Earnings before income taxes $ $ $ $ GEOGRAPHIC DATA Net Sales: The Americas $ $ $ $ Europe, the Middle East & Africa Asia/Pacific Net Sales $ $ $ $ Operating Income (Loss): The Americas $ $ $ $ Europe, the Middle East & Africa Asia/Pacific Charges associated with restructuring activities ) — ) — Operating Income $ $ $ $

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Currency Translation and Transactions
Unrealized translation gains (losses), net of tax	$ (44.7)	$ (111.4)	$ (128.3)	$ (248.1)
Net exchange gains (losses) on foreign currency transactions	10.4	(6.5)	5.5	(16.3)
Accounts Receivable
Allowance for doubtful accounts and customer deductions	20.8		20.8		$ 20.6
Concentration of Credit Risk
Net Sales	3,124.8	3,044.5	5,959.5	5,675.5
Accounts receivable, net	1,410.6		1,410.6		1,174.5
Inventory and Promotional Merchandise
Raw materials	247.3		247.3		306.9
Work in process	122.7		122.7		168.7
Finished goods	551.5		551.5		581.3
Promotional merchandise	155.9		155.9		158.9
Inventory and promotional merchandise, net	1,077.4		1,077.4		1,215.8
Net Sales | Largest Customer
Concentration of Credit Risk
Net Sales	$ 253	$ 266	$ 591.7	$ 558.8
Concentration of credit risk (as a percent)	8.00%	9.00%	10.00%	10.00%
Accounts Receivable | Largest Customer
Concentration of Credit Risk
Accounts receivable, net	$ 137.2		$ 137.2		$ 139.1
Concentration of credit risk (as a percent)			10.00%		12.00%

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Property, Plant and Equipment
Property, Plant and Equipment	$ 3,702.3		$ 3,702.3		$ 3,579.6
Less accumulated depreciation and amortization	2,205.5		2,205.5		2,089.4
Property, Plant and Equipment, net	1,496.8		1,496.8		1,490.2
Cost of assets related to projects in progress	144		144		192
Depreciation and amortization of property, plant and equipment	100.2	$ 96.2	195.4	$ 195.1
Land
Property, Plant and Equipment
Property, Plant and Equipment	15.2		15.2		15.4
Buildings and improvements
Property, Plant and Equipment
Property, Plant and Equipment	181.6		$ 181.6		184.9
Buildings and improvements | Minimum
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life			10 years
Buildings and improvements | Maximum
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life			40 years
Machinery and equipment
Property, Plant and Equipment
Property, Plant and Equipment	672.9		$ 672.9		671.3
Machinery and equipment | Minimum
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life			3 years
Machinery and equipment | Maximum
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life			10 years
Computer hardware and software
Property, Plant and Equipment
Property, Plant and Equipment	1,051.4		$ 1,051.4		1,012.4
Computer hardware and software | Minimum
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life			4 years
Computer hardware and software | Maximum
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life			15 years
Furniture and fixtures
Property, Plant and Equipment
Property, Plant and Equipment	83.7		$ 83.7		73.7
Furniture and fixtures | Minimum
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life			5 years
Furniture and fixtures | Maximum
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life			10 years
Leasehold improvements
Property, Plant and Equipment
Property, Plant and Equipment	$ 1,697.5		$ 1,697.5		$ 1,621.9

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Other Accrued Liabilities
Advertising, merchandising and sampling	$ 311.7		$ 311.7		$ 293.8
Employee compensation	354		354		463.3
Payroll and other taxes	196		196		142
Accrued income taxes	188.2		188.2		96.9
Other	527.7		527.7		474.4
Total	$ 1,577.6		$ 1,577.6		1,470.4
Income Taxes
Effective tax rate (as a percent)	27.20%	29.60%	28.00%	30.30%
Gross unrecognized tax benefits	$ 73.8		$ 73.8		77.8
Total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate	48.8		48.8
Total gross interest and penalty expense (benefit) related to unrecognized tax benefits	(0.3)		0.7
Gross accrued interest and penalties related to unrecognized tax benefits	16.3		16.3		16.5
Current net deferred tax assets	275.1		275.1		279
Debt
Commercial paper, outstanding amount	340.2		340.2
Other assets
Income Taxes
Noncurrent deferred tax assets, net of valuation allowances recorded to reflect the tax benefits of the carryforwards not utilized to date	$ 64.3		$ 64.3		$ 72.1

INVESTMENTS (Details)

INVESTMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2015	Jun. 30, 2015
Gains and losses recorded in AOCI
Cost	$ 1,258.8	$ 918
Gross Unrealized Gains	0.1	0.3
Gross Unrealized Losses	(3.5)	(0.5)
Fair Value	1,255.4	917.8
U.S. government and agency securities
Gains and losses recorded in AOCI
Cost	402.2	265.8
Gross Unrealized Gains		0.1
Gross Unrealized Losses	(1.8)	(0.1)
Fair Value	400.4	265.8
Foreign government and agency securities
Gains and losses recorded in AOCI
Cost	34.4	23.9
Gross Unrealized Losses	(0.1)
Fair Value	34.3	23.9
Corporate notes and bonds
Gains and losses recorded in AOCI
Cost	352.4	182.7
Gross Unrealized Gains	0.1	0.1
Gross Unrealized Losses	(1.6)	(0.4)
Fair Value	350.9	182.4
Time deposits
Gains and losses recorded in AOCI
Cost	446.9	410.8
Fair Value	446.9	410.8
Other securities
Gains and losses recorded in AOCI
Cost	22.9	34.8
Gross Unrealized Gains		0.1
Fair Value	$ 22.9	$ 34.9

INVESTMENTS (Details 2)

INVESTMENTS (Details 2) $ in Millions	Dec. 31, 2015USD ($)
Available-for-sale securities by contractual maturity
Due within one year, Cost	$ 546.2
Due after one through five years, Cost	712.7
Cost, Total	1,258.9
Due within one year, Fair Value	546.1
Due after one through five years, Fair Value	709.3
Fair Value, Total	$ 1,255.4

INVESTMENTS (Details 3)

INVESTMENTS (Details 3) - Available-for-sale securities $ in Millions	3 Months Ended
	Dec. 31, 2015USD ($)
Fair market value of investments with unrealized losses not deemed to be other-than temporarily impaired
In a Loss Position for Less Than 12 Months, Fair Value	$ 713.3
In a Loss Position for More Than 12 Months, Fair Value	61.4
In a Loss Position for Less Than 12 Months, Gross Unrealized Losses	(3.3)
In a Loss Position for More Than 12 Months, Gross Unrealized Losses	$ (0.2)

INVESTMENTS (Details 4)

INVESTMENTS (Details 4) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Gross gains and losses realized on sales of investments
Gross realized gains	$ 0.2	$ 1.5	$ 0.4	$ 1.5
Gross realized losses	(0.3)		$ (0.4)
Investment income, net	$ (0.1)	$ 1.5		$ 1.5

GOODWILL AND OTHER INTANGIBLE39

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
Goodwill and Other Intangible Assets
Goodwill, gross	$ 1,208.6	$ 1,209.6
Accumulated impairments	(61.6)	(64.8)
Goodwill	1,147	1,144.8
Changes in goodwill
Goodwill acquired during the period	5.5
Translation adjustments	(3.3)
Goodwill, Period Increase (Decrease)	2.2
Skin Care
Goodwill and Other Intangible Assets
Goodwill, gross	183.6	183.9
Accumulated impairments	(28.7)	(29.1)
Goodwill	154.9	154.8
Changes in goodwill
Translation adjustments	0.1
Goodwill, Period Increase (Decrease)	0.1
Makeup
Goodwill and Other Intangible Assets
Goodwill, gross	455.1	449.7
Goodwill	455.1	449.7
Changes in goodwill
Goodwill acquired during the period	5.5
Translation adjustments	(0.1)
Goodwill, Period Increase (Decrease)	5.4
Fragrance
Goodwill and Other Intangible Assets
Goodwill, gross	179	181.3
Goodwill	179	181.3
Changes in goodwill
Translation adjustments	(2.3)
Goodwill, Period Increase (Decrease)	(2.3)
Hair Care
Goodwill and Other Intangible Assets
Goodwill, gross	390.9	394.7
Accumulated impairments	(32.9)	(35.7)
Goodwill	358	$ 359
Changes in goodwill
Translation adjustments	(1)
Goodwill, Period Increase (Decrease)	$ (1)

GOODWILL AND OTHER INTANGIBLE40

GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Amortizable intangible assets:
Gross Carrying Value	$ 337.1		$ 337.1		$ 337.4
Accumulated Amortization	279.3		279.3		271.7
Total Net Book Value	57.8		57.8		65.7
Aggregate amortization expense for amortizable intangible assets	4	$ 3.1	7.7	$ 6.1
Non-amortizable intangible assets:
Trademarks and other	259.6		259.6		260.9
Total intangible assets	317.4		317.4		326.6
Estimated aggregate amortization expense
Estimated aggregate amortization expense for remainder of fiscal year 2016	7.6		7.6
Estimated aggregate amortization expense for fiscal year 2017	12.9		12.9
Estimated aggregate amortization expense for fiscal year 2018	11.9		11.9
Estimated aggregate amortization expense for fiscal year 2019	11.3		11.3
Estimated aggregate amortization expense for fiscal year 2020	4.3		4.3
Customer lists and other
Amortizable intangible assets:
Gross Carrying Value	294.1		294.1		294.4
Accumulated Amortization	236.3		236.3		228.7
Total Net Book Value	57.8		57.8		65.7
License agreements
Amortizable intangible assets:
Gross Carrying Value	43		43		43
Accumulated Amortization	$ 43		$ 43		$ 43

CHARGES ASSOCIATED WITH RESTR41

CHARGES ASSOCIATED WITH RESTRUCTURING ACTIVITIES $ in Millions	3 Months Ended	6 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Restructuring and related activities
Charges (adjustments)		$ 16.5
Cash payments		(0.3)
Non-cash asset write-offs		(13.4)
Accrued GTI Restructuring balance at December 31, 2015	$ 2.8	2.8
Other charges associated with the initiative
Total Restructuring Charges
Other charges	2	2
Non-cash asset write-offs and employee-related and other implementation costs | Minimum
Total Restructuring Charges
Restructuring and other charges	40	40
Non-cash asset write-offs and employee-related and other implementation costs | Maximum
Total Restructuring Charges
Restructuring and other charges	50	50
Employee-Related Costs
Restructuring and related activities
Charges (adjustments)		2.6
Accrued GTI Restructuring balance at December 31, 2015	2.6	2.6
Asset Write-offs
Restructuring and related activities
Charges (adjustments)		13.4
Non-cash asset write-offs		(13.4)
Contract Termination and Other Exit Costs
Restructuring and related activities
Charges (adjustments)		0.5
Cash payments		(0.3)
Accrued GTI Restructuring balance at December 31, 2015	$ 0.2	$ 0.2

DERIVATIVE FINANCIAL INSTRUME42

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2015	Jun. 30, 2015
Derivatives, Fair Value
Derivative Asset, Total	$ 53.9	$ 43.1
Derivative Liability, Total	6.4	8.5
Derivatives designated as hedging instruments
Derivatives, Fair Value
Derivative Asset, Total	51.4	41.1
Derivative Liability, Total	2.9	4.4
Derivatives designated as hedging instruments | Foreign currency forward contracts | Prepaid expenses and other current assets
Derivatives, Fair Value
Derivative asset, fair value	45.8	41.1
Derivatives designated as hedging instruments | Foreign currency forward contracts | Other accrued liabilities.
Derivatives, Fair Value
Derivative liability, fair value	2.9	4.2
Derivatives designated as hedging instruments | Interest rate swap contracts | Prepaid expenses and other current assets
Derivatives, Fair Value
Derivative asset, fair value	5.6
Derivatives designated as hedging instruments | Interest rate swap contracts | Other accrued liabilities.
Derivatives, Fair Value
Derivative liability, fair value		0.2
Derivatives not designated as hedging instruments | Foreign currency forward contracts | Prepaid expenses and other current assets
Derivatives, Fair Value
Derivative asset, fair value	2.5	2
Derivatives not designated as hedging instruments | Foreign currency forward contracts | Other accrued liabilities.
Derivatives, Fair Value
Derivative liability, fair value	$ 3.5	$ 4.1

DERIVATIVE FINANCIAL INSTRUME43

DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Gain (loss) on derivative financial instruments
Gain (loss) recognized in earnings related to the amount excluded from effectiveness testing			$ 1.5	$ (0.8)
Gain (loss) recognized in earnings related to the ineffective portion of the hedging relationships			0.1	0.6
Foreign currency forward contracts | Selling, general and administrative | Derivatives not designated as hedging instruments
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in Earnings on Derivatives	$ (6)	$ 2.8	1	0.1
Derivatives in Cash Flow Hedging Relationships
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)	10.7	30.4	35.9	64.1
Amount of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion)	17.7	8.8	31.7	8.7
Gain (loss) recognized in earnings related to the amount excluded from effectiveness testing	1.4	0.6
Gain (loss) recognized in earnings related to the ineffective portion of the hedging relationships	0	0.6
Derivatives in Cash Flow Hedging Relationships | Foreign currency forward contracts
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)	10.7	30.4	35.9	64.1
Derivatives in Cash Flow Hedging Relationships | Foreign currency forward contracts | Cost of sales
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion)	3.7	2.2	7.4	1.8
Derivatives in Cash Flow Hedging Relationships | Foreign currency forward contracts | Selling, general and administrative
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion)	13.9	$ 6.6	24	6.8
Derivatives in Cash Flow Hedging Relationships | Settled interest rate-related derivatives | Interest expense
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion)	0.1		0.3	$ 0.1
Derivatives in Fair Value Hedging Relationships | Interest rate swap contracts | Interest expense
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in Earnings on Derivatives	$ (2.4)		$ 5.8

DERIVATIVE FINANCIAL INSTRUME44

DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) $ in Millions	Dec. 31, 2015USD ($)item	Jun. 30, 2015USD ($)
Derivatives in Cash Flow Hedging Relationships
Cash Flow Hedges
Accumulated gain on derivative instruments in AOCI, before tax	$ 72.6	$ 68.4
Derivative
Credit Risk
Minimum number of nationally recognized rating agencies | item	2
Maximum exposure to credit risk in the event of nonperformance by counterparties, gross fair value of contracts in asset positions	$ 53.9
Foreign currency forward contracts | Derivatives in Cash Flow Hedging Relationships
Cash Flow Hedges
Notional amount	2,489.1
Amount expected to be reclassified from AOCI into earnings, net of tax, within the next twelve months	26.7
Interest rate swap contracts | Derivatives in Fair Value Hedging Relationships
Cash Flow Hedges
Notional amount	$ 250
Interest rate swap contracts | Derivatives in Fair Value Hedging Relationships | Senior Notes
Fair Value Hedges
Interest rate, stated percentage	2.35%
Euro | Foreign currency forward contracts | Derivatives in Cash Flow Hedging Relationships
Cash Flow Hedges
Notional amount	$ 384.3
British pound | Foreign currency forward contracts | Derivatives in Cash Flow Hedging Relationships
Cash Flow Hedges
Notional amount	498.5
Chinese yuan | Foreign currency forward contracts | Derivatives in Cash Flow Hedging Relationships
Cash Flow Hedges
Notional amount	283.3
Hong Kong dollar | Foreign currency forward contracts | Derivatives in Cash Flow Hedging Relationships
Cash Flow Hedges
Notional amount	186
Canadian dollar | Foreign currency forward contracts | Derivatives in Cash Flow Hedging Relationships
Cash Flow Hedges
Notional amount	151.2
Swiss franc | Foreign currency forward contracts | Derivatives in Cash Flow Hedging Relationships
Cash Flow Hedges
Notional amount	177.6
Australian dollar | Foreign currency forward contracts | Derivatives in Cash Flow Hedging Relationships
Cash Flow Hedges
Notional amount	$ 140.5

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2015	Jun. 30, 2015
Assets:
Available-for-sale securities	$ 1,255.4	$ 917.8
Liabilities:
Contingent consideration	167.1	159.3
U.S. government and agency securities
Assets:
Available-for-sale securities	400.4	265.8
Foreign government and agency securities
Assets:
Available-for-sale securities	34.3	23.9
Corporate notes and bonds
Assets:
Available-for-sale securities	350.9	182.4
Time deposits
Assets:
Available-for-sale securities	446.9	410.8
Other securities
Assets:
Available-for-sale securities	22.9	34.9
Recurring basis
Assets:
Foreign currency forward contracts	48.3	43.1
Interest rate swap contracts	5.6
Total	1,309.3	960.9
Liabilities:
Foreign currency forward contracts	6.4	8.3
Interest rate swap contracts		0.2
Contingent consideration	167.1	159.3
Total	173.5	167.8
Recurring basis | Level 2
Assets:
Foreign currency forward contracts	48.3	43.1
Interest rate swap contracts	5.6
Total	1,309.3	960.9
Liabilities:
Foreign currency forward contracts	6.4	8.3
Interest rate swap contracts		0.2
Total	6.4	8.5
Recurring basis | Level 3
Liabilities:
Contingent consideration	167.1	159.3
Total	167.1	159.3
Recurring basis | U.S. government and agency securities
Assets:
Available-for-sale securities	400.4	265.8
Recurring basis | U.S. government and agency securities | Level 2
Assets:
Available-for-sale securities	400.4	265.8
Recurring basis | Foreign government and agency securities
Assets:
Available-for-sale securities	34.3	23.9
Recurring basis | Foreign government and agency securities | Level 2
Assets:
Available-for-sale securities	34.3	23.9
Recurring basis | Corporate notes and bonds
Assets:
Available-for-sale securities	350.9	182.4
Recurring basis | Corporate notes and bonds | Level 2
Assets:
Available-for-sale securities	350.9	182.4
Recurring basis | Time deposits
Assets:
Available-for-sale securities	446.9	410.8
Recurring basis | Time deposits | Level 2
Assets:
Available-for-sale securities	446.9	410.8
Recurring basis | Other securities
Assets:
Available-for-sale securities	22.9	34.9
Recurring basis | Other securities | Level 2
Assets:
Available-for-sale securities	$ 22.9	$ 34.9

FAIR VALUE MEASUREMENTS (Deta46

FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2015	Jun. 30, 2015
Nonderivatives
Available-for-sale securities			$ 1,255.4	$ 917.8
Contingent consideration	$ 167.1	$ 159.3	167.1	159.3
Derivatives
Derivative asset			53.9	43.1
Derivative liability			(6.4)	(8.5)
Changes in the fair value of the contingent consideration obligations
Contingent consideration at the beginning of the period		159.3
Change in fair value		7.8
Contingent consideration at the end of the period	167.1	$ 167.1
LIBOR | Foreign currency forward contracts
Foreign currency forward contracts
Contract maturities, maximum		12 months
Swap yield curve | Foreign currency forward contracts
Foreign currency forward contracts
Contract maturities greater than		12 months
Carrying Value
Nonderivatives
Cash and cash equivalents			868.1	1,021.4
Available-for-sale securities			1,255.4	917.8
Current and long-term debt			1,981.7	1,637.3
Additional purchase price payable			37.2	37
Contingent consideration	167.1	$ 159.3	167.1	159.3
Changes in the fair value of the contingent consideration obligations
Contingent consideration at the beginning of the period		159.3
Contingent consideration at the end of the period	167.1	167.1
Carrying Value | Foreign currency forward contracts
Derivatives
Derivative asset			41.9	34.8
Carrying Value | Interest rate swap contracts
Derivatives
Derivative asset			5.6
Derivative liability				(0.2)
Fair Value
Nonderivatives
Cash and cash equivalents			868.1	1,021.4
Available-for-sale securities			1,255.4	917.8
Current and long-term debt			2,060.8	1,697.5
Additional purchase price payable			37.2	37
Contingent consideration	167.1	159.3	167.1	159.3
Changes in the fair value of the contingent consideration obligations
Contingent consideration at the beginning of the period		159.3
Contingent consideration at the end of the period	$ 167.1	$ 167.1
Fair Value | Foreign currency forward contracts
Derivatives
Derivative asset			41.9	34.8
Fair Value | Interest rate swap contracts
Derivatives
Derivative asset			$ 5.6
Derivative liability				$ (0.2)
Level 2 | Additional Purchase Price Payable
Nonderivatives
Discount rate (as a percent)	1.00%
Level 3 | Contingent Consideration
Nonderivatives
Basis points (as a percent)			1.00%
Contingent consideration value change due to increase or decrease in risk premium basis points	$ 5
Level 3 | Minimum | Contingent Consideration
Nonderivatives
Discount rate (as a percent)		9.00%
Contingent consideration value change due to increase or decrease in risk premium basis points	$ 5
Level 3 | Maximum | Contingent Consideration
Nonderivatives
Discount rate (as a percent)		14.00%

PENSION AND POST-RETIREMENT B47

PENSION AND POST-RETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Amortization of:
Settlement	$ (0.1)		$ (0.1)
Amounts recognized in the consolidated balance sheets related to the entity's pension and post-retirement benefit plans
Other assets	107.9		107.9		$ 113.1
Other accrued liabilities	(23.8)		(23.8)		(23.8)
Other noncurrent liabilities	(373.2)		(373.2)		(373)
Funded status	(289.1)		(289.1)		(283.7)
Accumulated other comprehensive loss	326.9		326.9		346.2
Net amount recognized	37.8		37.8		$ 62.5
Pension Plans U.S.
Components of net periodic benefit cost:
Service cost	8.1	$ 7.9	16.2	$ 15.8
Interest cost	8.2	7.6	16.4	15.2
Expected return on plan assets	(12.2)	(12.5)	(24.4)	(25)
Amortization of:
Prior service cost	0.2	0.2	0.3	0.3
Actuarial loss	2.8	2.4	5.6	4.9
Net periodic benefit cost	7.1	5.6	14.1	11.2
Pension Plans International
Components of net periodic benefit cost:
Service cost	6.2	6.1	12.5	12.5
Interest cost	3.8	4.4	7.6	9
Expected return on plan assets	(4.9)	(5.3)	(9.9)	(11)
Amortization of:
Prior service cost	0.5	0.5	1	1.1
Actuarial loss	2.5	2.6	5.2	5.4
Settlement	0.1		0.1
Net periodic benefit cost	8.2	8.3	16.5	17
Employer contributions			6
Post-retirement benefit other than pension plans
Components of net periodic benefit cost:
Service cost	0.7	0.8	1.4	1.7
Interest cost	1.8	1.9	3.7	3.8
Expected return on plan assets	(0.5)	(0.6)	(1.1)	(1.2)
Amortization of:
Prior service cost	0.2	0.2	0.4	0.4
Actuarial loss	0.1	0.4	0.2	0.8
Net periodic benefit cost	$ 2.3	$ 2.7	$ 4.6	$ 5.5

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation expense	$ 42.5	$ 38.8	$ 111.2	$ 100.9
Income tax benefit	14	$ 12.6	36.5	$ 33
Total unrecognized compensation cost related to unvested stock-based awards	$ 207.8		$ 207.8
Weighted-average period over which compensation cost related to unvested stock-based awards is expected to be recognized			2 years
Common Class A
Share-based Compensation Arrangement by Share-based Payment Award
Number of Class A Common Stock shares authorized under active equity compensation plans	10,600,000		10,600,000
Number of Class A Common Stock shares reserved and available to be granted pursuant to equity compensation plans	17,169,000		17,169,000
Stock options
Shares
Outstanding at the beginning of the year (in shares)			13,437,100
Granted at fair value (in shares)			2,500,200
Exercised (in shares)			(570,000)
Expired (in shares)			(8,900)
Forfeited (in shares)			(91,700)
Outstanding at the end of the period (in shares)	15,266,700		15,266,700
Vested and expected to vest (in shares)	15,125,700		15,125,700
Exercisable (in shares)	8,746,300		8,746,300
Weighted-Average Exercise Price Per Share
Outstanding at the beginning of the year (in dollars per share)			$ 47.73
Granted at fair value (in dollars per share)			77.46
Exercised (in dollars per share)			39.19
Expired (in dollars per share)			47
Forfeited (in dollars per share)			70.31
Outstanding at the end of the period (in dollars per share)	$ 52.78		52.78
Vested and expected to vest Weighted-Average Exercise Price (in dollars per share)	52.56		52.56
Exercisable Weighted-Average Exercise Price (in dollars per share)	$ 37.81		$ 37.81
Additional General Disclosures
Outstanding Aggregate Intrinsic Value (in dollars)	$ 538.6		$ 538.6
Weighted-Average Contractual Life Remaining	6 years 4 months 24 days
Vested and expected to vest Aggregate Intrinsic Value (in dollars)	$ 537		537
Vested and expected to vest Exercisable Weighted-Average Contractual Life Remaining	6 years 2 months 12 days
Exercisable Aggregate Intrinsic Value (in dollars)	$ 439.5		$ 439.5
Exercisable Weighted-Average Contractual Life Remaining	4 years 9 months 18 days
Per-share weighted-average grant date fair value of stock options granted (in dollars per share)	$ 25.18	$ 23.62	$ 21.51	$ 22.46
Intrinsic value of stock options exercised (in dollars)	$ 17.6	$ 15.1	$ 25.6	$ 31.9
Fair Value Of Option Grants, Assumptions and Methodology
Method used for estimating fair value of option grant			Black-Scholes
Weighted-average expected stock-price volatility (as a percent)	27.00%	28.00%	27.00%	28.00%
Weighted-average expected option life	9 years	9 years	7 years	7 years
Average risk-free interest rate (as a percent)	2.00%	2.30%	1.90%	2.20%
Average dividend yield (as a percent)	1.20%	1.10%	1.20%	1.10%

STOCK-BASED COMPENSATION (Det49

STOCK-BASED COMPENSATION (Details 2) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2015itemshares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)	Jun. 30, 2015$ / sharesshares	Jun. 30, 2013shares	Sep. 04, 2015USD ($)
Restricted Stock Units
Other Equity Compensation Plans
Nonvested at the beginning of the period (in shares)				2,592,100
Granted (in shares)				1,555,400
Dividend equivalents (in shares)				10,800
Vested (in shares)				(1,242,200)
Forfeited (in shares)				(73,900)
Nonvested at the end of the period (in shares)		2,842,200		2,842,200		2,592,100
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted-Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share) | $ / shares				$ 70.31
Granted (in dollars per share) | $ / shares				77.35
Dividend equivalents (in dollars per share) | $ / shares				83.98
Vested (in dollars per share) | $ / shares				67.76
Forfeited (in dollars per share) | $ / shares				73.25
Nonvested at the end of the period (in dollars per share) | $ / shares		$ 75.25		$ 75.25		$ 70.31
Restricted Stock Units | RSU grants scheduled to vest in fiscal 2017
Other Equity Compensation Plans
RSU grants scheduled to vest (in shares)				544,100
Restricted Stock Units | RSU grants scheduled to vest in fiscal 2018
Other Equity Compensation Plans
RSU grants scheduled to vest (in shares)				559,200
Restricted Stock Units | RSU grants scheduled to vest in fiscal 2019
Other Equity Compensation Plans
RSU grants scheduled to vest (in shares)				452,100
Performance Share Units
Other Equity Compensation Plans
Nonvested at the beginning of the period (in shares)				550,400
Granted (in shares)				277,400
Vested (in shares)						(249,900)
Forfeited (in shares)				(4,500)
Nonvested at the end of the period (in shares)		823,300		823,300		550,400
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted-Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share) | $ / shares				$ 71.59
Granted (in dollars per share) | $ / shares				77.35
Forfeited (in dollars per share) | $ / shares				67.31
Nonvested at the end of the period (in dollars per share) | $ / shares		$ 73.55		$ 73.55		$ 71.59
Performance Share Units | Common Class A
Share-based Compensation Arrangement by Share-based Payment Award
Common Stock issued (in shares)	276,200
Performance Share Units Based on Total Stockholder Return
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted-Average Grant Date Fair Value
Grant date fair value (in USD) | $		$ 11		$ 11
Method used for estimating grant date fair value				lattice model with a Monte Carlo
Dividend yield (as a percent)				1.00%
Weighted-average expected volatility (as a percent)				32.00%
Performance Share Units Based on Total Stockholder Return | Performance share units based on total stockholders return vesting (contractual term 33 months)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted-Average Grant Date Fair Value
Weighted-average expected life				33 months
Weighted-average risk-free interest rate (as a percent)				0.30%
Performance Share Units Based on Total Stockholder Return | Performance share units based on total stockholders return vesting (contractual term 45 months)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted-Average Grant Date Fair Value
Weighted-average expected life				45 months
Weighted-average risk-free interest rate (as a percent)				0.50%
Performance Share Units Based on Total Stockholder Return | Performance share units based on total stockholders return vesting (contractual term 57 months)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted-Average Grant Date Fair Value
Weighted-average expected life				57 months
Weighted-average risk-free interest rate (as a percent)				0.70%
Performance Share Units Based on Total Stockholder Return | Common Class A
Share-based Compensation Arrangement by Share-based Payment Award
Target payout for performance share units in Class A Common Stock (in shares)				108,507
Performance Share Units Based on Total Stockholder Return | Common Class A | Executive
Share-based Compensation Arrangement by Share-based Payment Award
Target payout for performance share units in Class A Common Stock (in shares)							162,760
Common Stock issued (in shares)	42,549
Performance Share Units Based on Total Stockholder Return | Common Class A | Maximum | Executive
Share-based Compensation Arrangement by Share-based Payment Award
Target payout for performance share units in Class A Common Stock (in shares)				173,611
Long-term Performance Share Units | Common Class A | Executive
Share-based Compensation Arrangement by Share-based Payment Award
Target payout for performance share units in Class A Common Stock (in shares)	387,848
Number of tranches | item	3
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted-Average Grant Date Fair Value
Grant date fair value (in USD) | $								$ 30
Long-term Performance Share Units | Common Class A | Executive | Performance period ending June 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award
Target payout for performance share units in Class A Common Stock (in shares)	129,283
Long-term Performance Share Units | Common Class A | Executive | Performance period ending June 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award
Target payout for performance share units in Class A Common Stock (in shares)	129,283
Long-term Performance Share Units | Common Class A | Executive | Performance period ending June 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award
Target payout for performance share units in Class A Common Stock (in shares)	129,283
Share Units
Non-Employee Director Plans
Outstanding at the beginning of the period (in shares)				110,300
Granted (in shares)				8,900
Dividend equivalents (in shares)				700
Outstanding at the end of the period (in shares)		119,900		119,900		110,300
Weighted-Average Grant Date Fair Value Per Share
Outstanding at the beginning of the period (in dollars per share) | $ / shares				$ 41.24
Granted (in dollars per share) | $ / shares				84.35
Dividend equivalents (in dollars per share) | $ / shares				82.89
Outstanding at the end of the period (in dollars per share) | $ / shares		$ 44.69		$ 44.69		$ 41.24
Cash Units
Non-employee Director Deferred Cash Compensation, Cash Payout Shares
Deferred compensation expense (income) to reflect additional deferrals and change in market value (in dollars) | $		$ 1.9	$ 0.6	$ 0.7	$ 0.8

NET EARNINGS ATTRIBUTABLE TO 50

NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Numerator:
Net earnings attributable to The Estee Lauder Companies Inc. (in dollars)	$ 446.2	$ 435.7	$ 755.5	$ 663.8
Denominator:
Weighted-average common shares outstanding - Basic	369.6	380	371.1	380.9
Weighted-average common shares outstanding - Diluted	376	386.1	377.5	387.1
Net earnings attributable to The Estee Lauder Companies Inc. per common share:
Basic (in dollars per share)	$ 1.21	$ 1.15	$ 2.04	$ 1.74
Diluted (in dollars per share)	$ 1.19	$ 1.13	$ 2	$ 1.71
Stock options
Denominator:
Incremental common shares attributable to share-based payment arrangements	4.4	4.6	4.4	4.6
Restricted Stock Units
Denominator:
Incremental common shares attributable to share-based payment arrangements	1.9	1.5	1.9	1.6
Performance Share Units Based on Total Stockholder Return
Denominator:
Incremental common shares attributable to share-based payment arrangements	0.1		0.1

NET EARNINGS ATTRIBUTABLE TO 51

NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE (Details 2) - shares shares in Millions	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Stock options
Antidilutive Securities Excluded from Computation of Earnings, Per Share
Antidilutive shares excluded from the calculation of diluted earnings per share	0.2	2.2
Contingently Issuable Shares
Antidilutive Securities Excluded from Computation of Earnings, Per Share
Antidilutive shares excluded from the calculation of diluted earnings per share	0.8	0.8

EQUITY (Details)

EQUITY (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Increase (Decrease) in Stockholders' Equity
Beginning of period			$ 3,654.3
Net earnings	$ 448.4	$ 437.7	759.2	$ 666.9
Common stock dividends			(203.9)
Other comprehensive loss	(48.8)	$ (90.1)	(116.6)	$ (195.5)
Acquisition of treasury stock			(575)
Stock-based compensation			97.5
End of period	3,615.5		3,615.5
Total stockholders' equity - The Estee Lauder Companies Inc.
Increase (Decrease) in Stockholders' Equity
Beginning of period			3,643.2
Net earnings			755.5
Common stock dividends			(201.7)
Other comprehensive loss			(115.7)
Acquisition of treasury stock			(575)
Stock-based compensation			97.5
End of period	3,603.8		3,603.8
Common stock.
Increase (Decrease) in Stockholders' Equity
Beginning of period			5.7
End of period	5.7		5.7
Paid-in Capital
Increase (Decrease) in Stockholders' Equity
Beginning of period			2,871.6
Stock-based compensation			147.8
End of period	3,019.4		3,019.4
Retained Earnings
Increase (Decrease) in Stockholders' Equity
Beginning of period			7,004.1
Net earnings			755.5
Common stock dividends			(201.7)
End of period	7,557.9		7,557.9
AOCI Attributable to Parent
Increase (Decrease) in Stockholders' Equity
Beginning of period			(381.5)
Other comprehensive loss			(115.7)
End of period	(497.2)		(497.2)
Treasury Stock
Increase (Decrease) in Stockholders' Equity
Beginning of period			(5,856.7)
Acquisition of treasury stock			(575)
Stock-based compensation			(50.3)
End of period	(6,482)		(6,482)
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity
Beginning of period			11.1
Net earnings			3.7
Common stock dividends			(2.2)
Other comprehensive loss			(0.9)
End of period	$ 11.7		$ 11.7

EQUITY (Details 2)

EQUITY (Details 2) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Mar. 15, 2016	Feb. 04, 2016	Dec. 15, 2015	Oct. 30, 2015	Sep. 15, 2015	Aug. 14, 2015	Jan. 29, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Class of Stock
Cash dividends declared per common share (in dollars per share)								$ 0.3	$ 0.24	$ 0.54	$ 0.44
Purchase of Class A Common Stock (in dollars)										$ 575
Common Class A
Class of Stock
Cash dividends declared per common share (in dollars per share)		$ 0.30		$ 0.30		$ 0.24
Dividends paid (in dollars per share)			$ 0.30		$ 0.24
Purchase of Class A Common Stock (in shares)							0.9			7.6
Purchase of Class A Common Stock (in dollars)							$ 75			$ 627.8
Common Class A | Forecast
Class of Stock
Dividends paid (in dollars per share)	$ 0.30
Common Class B
Class of Stock
Cash dividends declared per common share (in dollars per share)		$ 0.30		$ 0.30		$ 0.24
Dividends paid (in dollars per share)			$ 0.30		$ 0.24
Conversion of Class B to Class A (in shares)										0.4
Common Class B | Forecast
Class of Stock
Dividends paid (in dollars per share)	$ 0.30

EQUITY (Details 3)

EQUITY (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Changes in AOCI, net of tax by component
Balance, beginning of year			$ 3,643.2
Amounts reclassified from AOCI	$ (6.8)	$ (2.4)	(11.4)	$ 2.4
Balance, end of year	3,603.8		3,603.8
AOCI Attributable to Parent
Changes in AOCI, net of tax by component
Balance, beginning of year			(381.5)
OCI before reclassifications			(104.3)
Amounts reclassified from AOCI			(11.4)
Net current-period OCI			(115.7)
Balance, end of year	(497.2)		(497.2)
Net Unrealized Investment Gain (Losses)
Changes in AOCI, net of tax by component
Balance, beginning of year			(0.1)
OCI before reclassifications			(3.4)
Net current-period OCI			(3.4)
Balance, end of year	(3.5)		(3.5)
Net Derivative Instrument Gain (Loss)
Changes in AOCI, net of tax by component
Balance, beginning of year			43.9
OCI before reclassifications			23.3
Amounts reclassified from AOCI			(20.5)
Net current-period OCI			2.8
Balance, end of year	46.7		46.7
Amounts Included in Net Periodic Benefit Cost
Changes in AOCI, net of tax by component
Balance, beginning of year			(235)
OCI before reclassifications			4.1
Amounts reclassified from AOCI	4.6	$ 4.4	9.1	$ 9.1
Net current-period OCI			13.2
Balance, end of year	(221.8)		(221.8)
Foreign currency translation gains			6.5
Translation Adjustments
Changes in AOCI, net of tax by component
Balance, beginning of year			(190.3)
OCI before reclassifications			(128.3)
Net current-period OCI			(128.3)
Balance, end of year	$ (318.6)		$ (318.6)

EQUITY (Details 4)

EQUITY (Details 4) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Reclassification adjustments from accumulated other comprehensive income (loss)
Interest income and investment income, net	$ 3.2	$ 3.8	$ 6.2	$ 5.4
Cost of sales	(589)	(573.1)	(1,166.2)	(1,109.7)
Selling, general and administrative	(1,887.9)	(1,838.6)	(3,692.2)	(3,585)
Interest expense	(17)	(15)	(34.1)	(29.8)
Earnings before Income Taxes	615.6	621.6	1,054.7	956.4
Benefit (provision) for deferred taxes	(167.2)	(183.9)	(295.5)	(289.5)
Net Earnings	448.4	437.7	759.2	666.9
Settlement	(0.1)		(0.1)
Total reclassification adjustments, net	6.8	2.4	11.4	(2.4)
Net Unrealized Investment Gain (Losses) | Amount Reclassified from AOCI
Reclassification adjustments from accumulated other comprehensive income (loss)
Interest income and investment income, net	(0.1)	1.5		1.5
Benefit (provision) for deferred taxes		(0.4)		(0.4)
Net Earnings	(0.1)	1.1		1.1
Net Derivative Instrument Gain (Loss)
Reclassification adjustments from accumulated other comprehensive income (loss)
Total reclassification adjustments, net			20.5
Net Derivative Instrument Gain (Loss) | Amount Reclassified from AOCI
Reclassification adjustments from accumulated other comprehensive income (loss)
Earnings before Income Taxes	17.7	8.9	31.7	8.8
Benefit (provision) for deferred taxes	(6.2)	(3.2)	(11.2)	(3.2)
Net Earnings	11.5	5.7	20.5	5.6
Net Derivative Instrument Gain (Loss) | Amount Reclassified from AOCI | Foreign currency forward contracts
Reclassification adjustments from accumulated other comprehensive income (loss)
Cost of sales	3.7	2.2	7.4	1.8
Selling, general and administrative	13.9	6.6	24	6.8
Net Derivative Instrument Gain (Loss) | Amount Reclassified from AOCI | Settled interest rate-related derivatives
Reclassification adjustments from accumulated other comprehensive income (loss)
Interest expense	0.1	0.1	0.3	0.2
Amounts Included in Net Periodic Benefit Cost
Reclassification adjustments from accumulated other comprehensive income (loss)
Earnings before Income Taxes	(6.4)	(6.3)	(12.8)	(12.9)
Benefit (provision) for income taxes	1.8	1.9	3.7	3.8
Total reclassification adjustments, net	(4.6)	(4.4)	(9.1)	(9.1)
Prior service cost
Reclassification adjustments from accumulated other comprehensive income (loss)
Amortization	(0.9)	(0.9)	(1.7)	(1.8)
Actuarial loss
Reclassification adjustments from accumulated other comprehensive income (loss)
Amortization	$ (5.4)	$ (5.4)	$ (11)	$ (11.1)

STATEMENT OF CASH FLOWS (Detail

STATEMENT OF CASH FLOWS (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash:
Cash paid during the period for interest	$ 39.9	$ 32.8
Cash paid during the period for income taxes	188.8	200
Non-cash investing and financing activities:
Incremental tax benefit from the exercise of stock options	(2.1)	(2.5)
Capital lease and asset retirement obligations incurred	22.4	8.2
Non-cash purchases (sales) of short- and long-term investments, net	(1.8)
Property, plant and equipment accrued but unpaid	33.5	30.3
Increase (decrease) in accrued dividend equivalents	$ 0.5	(0.8)
Accrued dividend distribution to noncontrolling interest		$ 2.6

SEGMENT DATA AND RELATED INFO57

SEGMENT DATA AND RELATED INFORMATION (Details) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2015USD ($)segment	Dec. 31, 2014USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Segment Reporting Information
Number of operating segments | segment	1
Net Sales:
Net Sales	$ 3,124.8	$ 3,044.5	$ 5,959.5	$ 5,675.5
Operating Income (Loss)
Operating Income (Loss) before charges associated with restructuring activities	647.9	632.8	1,101.1	980.8
Operating Income (Loss)	629.4	632.8	1,082.6	980.8
Reconciliation:
Charges associated with restructuring activities	(18.5)		(18.5)
Interest expense	(17)	(15)	(34.1)	(29.8)
Interest income and investment income, net	3.2	3.8	6.2	5.4
Earnings before Income Taxes	615.6	621.6	1,054.7	956.4
The Americas
Net Sales:
Net Sales	1,227	1,201.4	2,495.3	2,316.2
Operating Income (Loss)
Operating Income (Loss)	107.8	120.8	198.4	178.2
Europe, the Middle East and Africa
Net Sales:
Net Sales	1,268.4	1,211.5	2,285.2	2,153.7
Operating Income (Loss)
Operating Income (Loss)	386.5	355.2	630.2	525.1
Asia/Pacific
Net Sales:
Net Sales	629.4	631.6	1,179	1,205.6
Operating Income (Loss)
Operating Income (Loss)	153.6	156.8	272.5	277.5
Skin Care
Net Sales:
Net Sales	1,232.2	1,274.4	2,341	2,365.8
Operating Income (Loss)
Operating Income (Loss)	309.2	317.1	498.9	493.5
Makeup
Net Sales:
Net Sales	1,251.2	1,176.2	2,413	2,197.5
Operating Income (Loss)
Operating Income (Loss)	260.8	253.4	450	379.3
Fragrance
Net Sales:
Net Sales	470.6	439.7	883.5	817.1
Operating Income (Loss)
Operating Income (Loss)	53.2	47.5	119.3	86.5
Hair Care
Net Sales:
Net Sales	149	137.1	283.3	265.2
Operating Income (Loss)
Operating Income (Loss)	19.9	16.2	25.6	25
Other
Net Sales:
Net Sales	21.8	17.1	38.7	29.9
Operating Income (Loss)
Operating Income (Loss)	$ 4.8	$ (1.4)	$ 7.3	$ (3.5)