The Estée Lauder Companies Inc. (EL) 10-K 25 Aug 17 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
	Jun. 30, 2017	Aug. 18, 2017	Dec. 31, 2016
Entity Registrant Name	ESTEE LAUDER COMPANIES INC
Entity Central Index Key	1,001,250
Document Type	10-K
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 17
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Common Class A
Entity Common Stock, Shares Outstanding		224,193,862
Common Class B
Entity Common Stock, Shares Outstanding		143,762,288

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
CONSOLIDATED STATEMENTS OF EARNINGS
Net Sales	$ 11,824	$ 11,262	$ 10,780
Cost of Sales	2,437	2,181	2,100
Gross Profit	9,387	9,081	8,680
Operating Expenses
Selling, general and administrative	7,469	7,338	7,074
Restructuring and other charges	195	133
Goodwill impairment	28
Impairment of other intangible assets	3
Total operating expenses	7,695	7,471	7,074
Operating Income	1,692	1,610	1,606
Interest expense	103	71	60
Interest income and investment income, net	28	16	15
Earnings before Income Taxes	1,617	1,555	1,561
Provision for income taxes	361	434	467
Net Earnings	1,256	1,121	1,094
Net earnings attributable to noncontrolling interests	(7)	(6)	(5)
Net earnings attributable to The Estee Lauder Companies Inc.	$ 1,249	$ 1,115	$ 1,089
Net earnings attributable to The Estee Lauder Companies Inc. per common share
Basic (in dollars per share)	$ 3.40	$ 3.01	$ 2.87
Diluted (in dollars per share)	$ 3.35	$ 2.96	$ 2.82
Weighted-average common shares outstanding
Basic (in shares)	367.1	370	379.3
Diluted (in shares)	373	376.6	385.7
Cash dividends declared per common share (in dollars per share)	$ 1.32	$ 1.14	$ 0.92

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net earnings	$ 1,256	$ 1,121	$ 1,094
Other comprehensive income (loss):
Net unrealized investment gain (loss)	(8)	7	(1)
Net derivative instrument gain (loss)	(54)	(18)	70
Amounts included in net periodic benefit cost	102	(88)	(24)
Translation adjustments	32	(101)	(306)
Benefit (provision) for deferred income taxes on components of other comprehensive income	(11)	36	(22)
Total other comprehensive income (loss)	61	(164)	(283)
Comprehensive income	1,317	957	811
Comprehensive (income) loss attributable to noncontrolling interests:
Net earnings	(7)	(6)	(5)
Translation adjustments			2
Total comprehensive (income) loss attributable to noncontrolling interests	(7)	(6)	(3)
Comprehensive income attributable to The Estee Lauder Companies Inc.	$ 1,310	$ 951	$ 808

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Current Assets
Cash and cash equivalents	$ 1,136	$ 914
Short-term investments	605	469
Accounts receivable, net	1,395	1,258
Inventory and promotional merchandise, net	1,479	1,264
Prepaid expenses and other current assets	349	320
Total current assets	4,964	4,225
Property, Plant and Equipment, net	1,671	1,583
Other Assets
Long-term investments	1,026	1,108
Goodwill	1,916	1,228
Other intangible assets, net	1,327	344
Other assets	664	735
Total other assets	4,933	3,415
Total assets	11,568	9,223
Current Liabilities
Current debt	189	332
Accounts payable	835	717
Other accrued liabilities	1,799	1,632
Total current liabilities	2,823	2,681
Noncurrent Liabilities
Long-term debt	3,383	1,910
Other noncurrent liabilities	960	1,045
Total noncurrent liabilities	4,343	2,955
Commitments and Contingencies
Equity
Common stock, $.01 par value; Class A shares authorized: 1,300,000,000 at June 30, 2017 and June 30, 2016; shares issued: 429,968,260 at June 30, 2017 and 424,109,008 at June 30, 2016; Class B shares authorized: 304,000,000 at June 30, 2017 and June 30, 2016; shares issued and outstanding: 143,762,288 at June 30, 2017 and 144,770,237 at June 30, 2016	6	6
Paid-in capital	3,559	3,161
Retained earnings	8,452	7,693
Accumulated other comprehensive loss	(484)	(545)
Stockholders' equity before treasury stock	11,533	10,315
Less: Treasury stock, at cost; 205,627,082 Class A shares at June 30, 2017 and 201,119,435 Class A shares at June 30, 2016	(7,149)	(6,743)
Total stockholders' equity - The Estee Lauder Companies Inc.	4,384	3,572
Noncontrolling interests	18	15
Total equity	4,402	3,587
Total liabilities and equity	$ 11,568	$ 9,223

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2017	Jun. 30, 2016
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	429,968,260	424,109,008
Common stock, shares outstanding	224,341,200	222,989,600
Treasury stock, shares	205,627,082	201,119,435
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	143,762,288	144,770,237
Common stock, shares outstanding	143,762,288	144,770,237

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions	Total stockholders' equity - The Estee Lauder Companies Inc.	Common Stock	Paid-in Capital	Retained Earnings	Accumulated other comprehensive loss	Treasury Stock	Non-controlling Interests	Total
Beginning of year at Jun. 30, 2014		$ 6	$ 2,563	$ 6,266	$ (100)	$ (4,879)	$ 14
Increase (Decrease) in Stockholders' Equity
Common stock dividends				(351)
Net earnings attributable to The Estee Lauder Companies Inc. (in dollars)				1,089				$ 1,089
Acquisition of treasury stock						(928)
Stock-based compensation			309			(50)
Net earnings attributable to noncontrolling interests							5	(5)
Distributions to noncontrolling interest holders							(6)
Other comprehensive income (loss)					(281)		(2)	(283)
End of year at Jun. 30, 2015	$ 3,644	6	2,872	7,004	(381)	(5,857)	11	3,655
Increase (Decrease) in Stockholders' Equity
Common stock dividends				(426)
Net earnings attributable to The Estee Lauder Companies Inc. (in dollars)				1,115				1,115
Acquisition of treasury stock						(835)
Stock-based compensation			289			(51)
Net earnings attributable to noncontrolling interests							6	(6)
Distributions to noncontrolling interest holders							(5)
Acquisition of noncontrolling interest							3
Other comprehensive income (loss)					(164)			(164)
End of year at Jun. 30, 2016	3,572	6	3,161	7,693	(545)	(6,743)	15	3,587
Increase (Decrease) in Stockholders' Equity
Common stock dividends				(490)
Net earnings attributable to The Estee Lauder Companies Inc. (in dollars)				1,249				1,249
Acquisition of treasury stock						(355)
Stock-based compensation			398			(51)
Net earnings attributable to noncontrolling interests							7	(7)
Distributions to noncontrolling interest holders							(4)
Other comprehensive income (loss)					61			61
End of year at Jun. 30, 2017	$ 4,384	$ 6	$ 3,559	$ 8,452	$ (484)	$ (7,149)	$ 18	$ 4,402

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Cash Flows from Operating Activities
Net earnings	$ 1,256	$ 1,121	$ 1,094
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization	464	415	409
Deferred income taxes	(118)	(94)	(53)
Non-cash stock-based compensation	219	184	165
Excess tax benefits from stock-based compensation arrangements	(45)	(23)	(48)
Loss on disposal of property, plant and equipment	5	17	15
Goodwill and other intangible asset impairments	31
Noncash restructuring and other charges	3	19
Pension and post-retirement benefit expense	80	71	64
Pension and post-retirement benefit contributions	(38)	(67)	(59)
Changes in fair value of contingent consideration	(57)	8	7
Other non-cash items	(21)	(7)
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable, net	(92)	(101)	103
Increase in inventory and promotional merchandise, net	(85)	(69)	(26)
Decrease (increase) in other assets, net	(80)	(72)	8
Increase in accounts payable	54	101	147
Increase in other accrued and noncurrent liabilities	224	286	117
Net cash flows provided by operating activities	1,800	1,789	1,943
Cash Flows from Investing Activities
Capital expenditures	(504)	(525)	(473)
Payments for acquired businesses, net of cash acquired	(1,681)	(101)	(241)
Proceeds from disposition of investments	1,226	1,373	305
Purchases of investments	(1,267)	(2,016)	(1,207)
Proceeds from sale of property, plant and equipment	12
Net cash flows used for investing activities	(2,214)	(1,269)	(1,616)
Cash Flows from Financing Activities
Proceeds of current debt, net	165		13
Proceeds from issuance of long-term debt, net	1,498	616	294
Debt issuance costs	(11)	(4)	(4)
Repayments and redemptions of long-term debt	(306)	(8)	(8)
Net proceeds from stock-based compensation transactions	141	85	101
Excess tax benefits from stock-based compensation arrangements	45	23	48
Payments to acquire treasury stock	(413)	(890)	(983)
Dividends paid to stockholders	(486)	(423)	(350)
Payments to noncontrolling interest holders for dividends	(3)	(4)	(6)
Net cash flows provided by (used for) financing activities	630	(605)	(895)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	6	(22)	(40)
Net Increase (Decrease) in Cash and Cash Equivalents	222	(107)	(608)
Cash and Cash Equivalents at Beginning of Year	914	1,021	1,629
Cash and Cash Equivalents at End of Year	$ 1,136	$ 914	$ 1,021

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Jun. 30, 2017
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS	NOTE 1 – DESCRIPTION OF BUSINESS The Estée Lauder Companies Inc. manufactures, markets and sells skin care, makeup, fragrance and hair care products around the world. Products are marketed under brand names, including: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, MžAžC, Bobbi Brown , La Mer , Aveda, Jo Malone London, Bumble and bumble, Darphin, Ojon, Smashbox, RODIN olio lusso, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, By Kilian, BECCA and Too Faced. Certain subsidiaries of The Estée Lauder Companies Inc. are also the global licensee of the Tommy Hilfiger, Kiton, Donna Karan New York, DKNY, Michael Kors, Tom Ford, Ermenegildo Zegna, Tory Burch and AERIN brand names for fragrances and/or cosmetics.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jun. 30, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation 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. Certain amounts in the consolidated financial statements of prior years have been reclassified to conform to current year presentation. Management Estimates The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles (“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. 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 year-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 $32 million, $(109) million and $(322) million, net of tax, in fiscal 2017, 2016 and 2015, respectively. For the Company’s Venezuelan and Ukrainian subsidiaries operating in highly inflationary economies, 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. These subsidiaries are not material to the Company’s consolidated financial statements or liquidity in fiscal 2017, 2016 and 2015. 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 on foreign currency transactions of $15 million, $16 million and $4 million in fiscal 2017, 2016 and 2015, respectively. Cash and Cash Equivalents Cash and cash equivalents include $434 million and $205 million of short-term time deposits at June 30, 2017 and 2016, respectively. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Investments The Company’s investment objectives include capital preservation, maintaining adequate liquidity, asset diversification, and achieving appropriate returns within the guidelines set forth in the Company’s investment policy. These investments are classified as available-for-sale, with any temporary difference between the cost and fair value of an investment presented as a separate component of accumulated other comprehensive income (loss) (“AOCI”). See Note 13 – Fair Value Measurements for further information about how the fair values of investments are determined. Investments in the common stock of privately-held companies in which the Company has significant influence, but less than a controlling financial interest, are accounted for under the equity method of accounting. The Company accounts for all other investments using the cost-method of accounting. These investments were not material to the Company’s consolidated financial statements as of June 30, 2017 and 2016 and are included in Long-term investments in the accompanying consolidated balance sheets. The Company evaluates investments held in unrealized loss positions for other-than-temporary impairment on a quarterly basis. Such evaluation involves a variety of considerations, including assessments of the risks and uncertainties associated with general economic conditions and distinct conditions affecting specific issuers. Factors considered by the Company include, but are not limited to (i) the length of time and extent the security has been in a material loss position; (ii) the financial condition and creditworthiness of the issuer; (iii) future economic conditions and market forecasts related to the issuer’s industry, sector, or geography; (iv) the Company’s intent and ability to retain its investment until maturity or for a period of time sufficient to allow for recovery of market value; and (v) an assessment of whether it is more likely than not that the Company will be required to sell its investment before recovery of market value. Accounts Receivable Accounts receivable is stated net of the allowance for doubtful accounts and customer deductions totaling $30 million and $24 million as of June 30, 2017 and 2016, respectively. This reserve is based upon the evaluation of accounts receivable aging, specific exposures and historical trends. Inventory and Promotional Merchandise Inventory and promotional merchandise only includes inventory considered saleable or usable in future periods, and is stated at the lower of cost or fair-market value, with cost being based on standard cost and production variances, which approximate actual cost on the first-in, first-out method. Cost components include raw materials, componentry, direct labor and overhead (e.g., indirect labor, utilities, depreciation, purchasing, receiving, inspection and warehousing) as well as inbound freight. M anufacturing overhead is allocated to the cost of inventory based on the normal production capacity . Unallocated overhead during periods of abnormally low production levels are recognized as cost of sales in the period in which they are incurred. Promotional merchandise is charged to expense at the time the merchandise is shipped to the Company’s customers. Included in inventory and promotional merchandise is an inventory obsolescence reserve, which represents the difference between the cost of the inventory and its estimated realizable value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends and requirements to support forecasted sales. In addition, and as necessary, specific reserves for future known or anticipated events may be established. Derivative Financial Instruments The Company’s derivative financial instruments are recorded as either assets or liabilities on the balance sheet and measured at fair value. All derivatives are (i) designated as a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair-value” hedge), (ii) designated as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash-flow” hedge), or (iii) not designated as a hedging instrument. Changes in the fair value of a derivative that is designated and qualifies as a fair-value hedge that is highly effective are recorded in current-period earnings, along with the loss or gain on the hedged asset or liability that is attributable to the hedged risk (including losses or gains on unrecognized firm commitments). Changes in the fair value of a derivative that is designated and qualifies as a cash-flow hedge of a forecasted transaction that is highly effective are recorded in OCI. Gains and losses deferred in OCI are then recognized in current-period earnings when earnings are affected by the variability of cash flows of the hedged forecasted transaction (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). Changes in the fair value of derivative instruments not designated as hedging instruments are reported in current-period earnings. Property, Plant and Equipment Property, plant and equipment, including leasehold and other improvements that extend an asset’s useful life or productive capabilities, are carried at cost less accumulated depreciation and amortization. Costs incurred for computer software developed or obtained for internal use are capitalized during the application development stage and expensed as incurred during the preliminary project and post-implementation stages. For financial statement purposes, depreciation is provided principally on the straight-line method over the estimated useful lives of the assets ranging from 3 to 40 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lives of the respective leases or the expected useful lives of those improvements. Goodwill and Other Indefinite-lived Intangible Assets Goodwill is calculated as the excess of the cost of purchased businesses over the fair value of their underlying net assets. Other indefinite-lived intangible assets principally consist of trademarks. Goodwill and other indefinite-lived intangible assets are not amortized. The Company assesses goodwill and other indefinite-lived intangible assets at least annually for impairment as of the beginning of the fiscal fourth quarter or more frequently if certain events or circumstances exist. The Company tests goodwill for impairment at the reporting unit level, which is one level below the Company’s operating segments. The Company identifies its reporting units by assessing whether the components of its operating segments constitute businesses for which discrete financial information is available and management of each operating segment regularly reviews the operating results of those components. The Company makes certain judgments and assumptions in allocating assets and liabilities to determine carrying values for its reporting units. When testing goodwill for impairment, the Company has the option of first performing a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test. If necessary, the quantitative impairment test is performed in two steps: (i) the Company determines if an indication of impairment exists by comparing the fair value of a reporting unit with its carrying value, and (ii) if there is an impairment, the Company measures the amount of impairment loss by comparing the implied fair value of goodwill with the carrying amount of that goodwill. When testing other indefinite-lived intangible assets for impairment, the Company also has the option of first performing a qualitative assessment to determine whether it is more-likely-than-not that the indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform a quantitative test. The quantitative impairment test for indefinite-lived intangible assets encompasses calculating the fair value of an indefinite-lived intangible asset and comparing the fair value to its carrying value. If the carrying value exceeds the fair value, an impairment charge is recorded. For fiscal 2017 and 2016, the Company elected to perform the qualitative assessment for certain of its reporting units and indefinite-lived intangible assets. This qualitative assessment included the review of certain macroeconomic factors and entity-specific qualitative factors to determine if it was more-likely-than-not that the fair values of its reporting units were below carrying value. The Company considered macroeconomic factors including the global economic growth, general macroeconomic trends for the markets in which the reporting units operate and the intangible assets are employed, and the growth of the global prestige beauty industry. In addition to these macroeconomic factors, among other things, the Company considered the reporting units’ current results and forecasts, any changes in the nature of the business, any significant legal, regulatory, contractual, political or other business climate factors, changes in the industry/competitive environment, changes in the composition or carrying amount of net assets and its intention to sell or dispose of a reporting unit or cease the use of a trademark. For the Company’s other reporting units and other indefinite-lived intangible assets, including those acquired during and subsequent to fiscal 2015, a quantitative assessment was performed. The Company engaged third-party valuation specialists and used industry accepted valuation models and criteria that were reviewed and approved by various levels of management. To determine the fair value of the reporting units, the Company used an equal weighting of the income and market approaches. Under the income approach, we determined fair value using a discounted cash flow method, projecting future cash flows of each reporting unit, as well as a terminal value, and discounting such cash flows at a rate of return that reflected the relative risk of the cash flows. Under the market approach, we utilized market multiples from publicly traded companies with similar operating and investment characteristics as the reporting unit. The key estimates and factors used in these two approaches include revenue growth rates and profit margins based on internal forecasts, terminal value, the weighted-average cost of capital used to discount future cash flows and comparable market multiples. To determine the fair value of other indefinite-lived intangible assets, we use an income approach, the relief-from-royalty method. This method assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. When such events or changes in circumstances occur, a recoverability test is performed comparing projected undiscounted cash flows from the use and eventual disposition of an asset or asset group to its carrying value. If the projected undiscounted cash flows are less than the carrying value, then an impairment charge would be recorded for the excess of the carrying value over the fair value, which is determined by discounting estimated future cash flows. 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 that are 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 $922 million, or 8%, $1,065 million, or 9%, and $1,060 million, or 10%, of the Company’s consolidated net sales in fiscal 2017, 2016 and 2015, respectively. This customer accounted for $112 million, or 8%, and $164 million, or 13%, of the Company’s accounts receivable at June 30, 2017 and 2016, respectively. Revenue Recognition Revenues from product sales are recognized upon transfer of ownership, including passage of title to the customer and transfer of the risk of loss related to those goods. In the Americas region, sales are generally recognized at the time the product is shipped to the customer and in the Europe, the Middle East & Africa and Asia/Pacific regions, sales are generally recognized based upon the customer’s receipt. In certain circumstances, transfer of title takes place at the point of sale, for example, at the Company’s retail stores. The Company records revenues generated from purchase with purchase promotions in Net Sales and costs of its purchase with purchase and gift with purchase promotions in Cost of Sales. Revenues are reported on a net sales basis, which is computed by deducting from gross sales the amount of actual product returns received, discounts, incentive arrangements with retailers and an amount established for anticipated product returns. The Company’s practice is to accept product returns from retailers only if properly requested and approved. In accepting returns, the Company typically provides a credit to the retailer against accounts receivable from that retailer. As a percentage of gross sales, returns were 3.5% in fiscal 2017, 3.1% in fiscal 2016 and 3.4% in fiscal 2015. Payments to Customers Certain incentive arrangements require the payment of a fee to customers based on their attainment of pre-established sales levels. These fees have been accrued and recorded as a reduction of Net Sales in the accompanying consolidated statements of earnings and were not material to the results of operations in any period presented. The Company enters into transactions related to demonstration, advertising and counter construction, some of which involve cooperative relationships with customers. These activities may be arranged either with unrelated third parties or in conjunction with the customer. To the extent the Company receives an identifiable benefit in exchange for consideration and the fair-value of the benefit can be reasonably estimated, the Company’s share of the counter depreciation and the other costs of these transactions (regardless of to whom they were paid) are reflected in Selling, general and administrative expenses in the accompanying consolidated statements of earnings and were approximately $1,405 million, $1,387 million and $1,378 million in fiscal 2017, 2016 and 2015, respectively. Advertising and Promotion Global net expenses for advertising, merchandising, sampling, promotion and product development were $2,908 million, $2,821 million and $2,772 million in fiscal 2017, 2016 and 2015, respectively, and are expensed as incurred. Excluding the impact of purchase with purchase and gift with purchase promotions, which are included in Net Sales and Cost of Sales, costs for advertising, merchandising, sampling, promotion and product development included in Selling, general and administrative expenses in the accompanying consolidated statements of earnings were $2,689 million, $2,607 million and $2,559 million in fiscal 2017, 2016 and 2015, respectively. Research and Development Research and development costs of $179 million, $191 million and $178 million in fiscal 2017, 2016 and 2015, respectively, are recorded in Selling, general and administrative expenses in the accompanying consolidated statements of earnings and are expensed as incurred. Shipping and Handling Shipping and handling expenses of $400 million, $363 million and $364 million in fiscal 2017, 2016 and 2015, respectively, are recorded in Selling, general and administrative expenses in the accompanying consolidated statements of earnings and include distribution center costs, third-party logistics costs and outbound freight. Operating Leases The Company recognizes rent expense from operating leases with periods of free and scheduled rent increases on a straight-line basis over the applicable lease term. The Company considers lease renewals when such renewals are reasonably assured. From time to time, the Company may receive capital improvement funding from its lessors. These amounts are recorded as deferred liabilities and amortized over the remaining lease term as a reduction of rent expense. License Arrangements The Company’s license agreements provide the Company with worldwide rights to manufacture, market and sell beauty and beauty-related products (or particular categories thereof) using the licensors’ trademarks. Our current licenses have an initial term of approximately 5 years to 10 years, and are renewable subject to the Company’s compliance with the license agreement provisions. Most of our license agreements have renewal terms in 5 year increments, with potential renewal periods ranging from approximately 5 years to 25 years. Under each license, the Company is required to pay royalties to the licensor, at least annually, based on net sales to third parties. Most of the Company’s licenses were entered into to create new business. In some cases, the Company acquired, or entered into, a license where the licensor or another licensee was operating a pre-existing beauty products business. In those cases, other intangible assets are capitalized and amortized over their useful lives. Certain license agreements may require minimum royalty payments, incremental royalties based on net sales levels and minimum spending on advertising and promotional activities. Royalty expenses are accrued in the period in which net sales are recognized while advertising and promotional expenses are accrued at the time these costs are incurred. Stock-Based Compensation The Company records stock-based compensation, measured at the fair value of the awards that are ultimately expected to vest, as an expense in the consolidated financial statements. Upon the exercise of stock options or the vesting of restricted stock units, performance share units, performance share units based on total stockholder return and long-term performance share units, the resulting excess tax benefits, if any, are credited to additional paid-in capital. Any resulting tax deficiencies will first be offset against those cumulative credits to additional paid-in capital. If the cumulative credits to additional paid-in capital are exhausted, tax deficiencies will be recorded to the provision for income taxes. Income Taxes The Company accounts for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its consolidated financial statements or tax returns. The net deferred tax assets assume sufficient future earnings for their realization, as well as the continued application of currently anticipated tax rates. Included in net deferred tax assets is a valuation allowance for deferred tax assets, where management believes it is not more-likely-than-not that the deferred tax assets will be realized in the relevant jurisdiction. If the Company’s assessment of realizability of a deferred tax asset changes, an increase to a valuation allowance will result in a reduction of net earnings at that time while the reduction of a valuation allowance will result in an increase of net earnings at that time. The Company provides tax reserves for U.S. federal, state, local and foreign exposures relating to periods subject to audit. The development of reserves for these exposures requires judgments about tax issues, potential outcomes and timing, and is a subjective critical estimate. The Company assesses its tax positions and records tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting dates. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon settlement with a tax authority that has full knowledge of all relevant information. For those tax positions where it is more-likely-than-not that a tax benefit will not be sustained, no tax benefit has been recognized in the consolidated financial statements. The Company classifies applicable interest and penalties as a component of the provision for income taxes. Although the outcome relating to these exposures is uncertain, in management’s opinion adequate provisions for income taxes have been made for estimable potential liabilities emanating from these exposures. If actual outcomes differ materially from these estimates, they could have a material impact on the Company’s consolidated results of operations. Recently Issued Accounting Standards Pension-related Costs In March 2017, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance that amends how companies present net periodic benefit cost in the income statement and balance sheet relating to defined benefit pension and/or other postretirement benefit plans. Within the income statement, the new guidance requires companies to report the service cost component within operating expenses and report the other components of net periodic benefit cost below operating income (if one is reported). In addition, within the balance sheet, the guidance changes the components of the pension cost eligible for capitalization to the service cost component only (e.g., as a cost of internally manufactured inventory or a self-constructed asset). Effective for the Company – Fiscal 2019 first quarter, with early adoption permitted as of the first interim period in fiscal 2018. The guidance must be applied (a) retrospectively as it pertains to the income statement classification of the components of net periodic benefit cost and (b) prospectively as it pertains to future capitalization of service costs. Impact on consolidated financial statements – The Company will adopt this guidance when it becomes effective and although certain components of pension expense will be reclassified out of operating income, the Company does not believe this will have a material impact on reported operating income. Goodwill In January 2017, FASB issued authoritative guidance which simplifies the subsequent measurement of goodwill by eliminating the second step from the quantitative goodwill impairment test. The single quantitative step test requires companies to compare the fair value of a reporting unit with its carrying amount and record an impairment charge for the amount that the carrying amount exceeds the fair value, up to the total amount of goodwill allocated to that reporting unit. The Company will continue to have the option of first performing a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. Effective for the Company – Fiscal 2021 first quarter, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Impact on consolidated financial statements – The Company did not elect to apply this guidance to its fiscal 2017 impairment testing and will continue to assess the impact of adopting it on future interim and annual impairment tests. Income Taxes In October 2016, the FASB issued authoritative guidance that changes the way companies account for income taxes relating to intra-entity transfers of assets other than inventory. This new guidance requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory in the period in which the transfer takes place. Under current guidance, recognition of current and deferred income taxes of an intra-entity asset transfer is deferred. This new guidance may affect consolidated earnings where the intra-entity transfer of an asset other than inventory occurs between entities in jurisdictions with different tax rates. This guidance must be adopted using a modified retrospective approach with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Effective for the Company – Fiscal 2019 first quarter, with early adoption permitted. Impact on consolidated financial statements – The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued authoritative guidance that requires companies to utilize an impairment model for most financial assets measured at amortized cost and certain other financial instruments, which include trade and other receivables, loans and held-to-maturity debt securities, to record an allowance for credit risk based on expected losses rather than incurred losses. In addition, this new guidance changes the recognition method for credit losses on available-for-sale debt securities, which can occur as a result of market and credit risk, as well as additional disclosures. In general, this guidance will require modified retrospective adoption for all outstanding instruments that fall under this guidance. Effective for the Company – Fiscal 2021 first quarter . Impact on consolidated financial statements – The Company is currently evaluating the impact of applying this guidance on its financial instruments, such as accounts receivable and short- and long-term investments. Compensation - Stock Compensation In March 2016, the FASB issued authoritative guidance that changes the way companies account for certain aspects of share-based payments to employees. This new guidance requires that all excess tax benefits and tax deficiencies related to share-based compensation awards be recorded as income tax expense or benefit in the income statement. In addition, companies are required to treat the tax effects of exercised or vested awards as discrete items in the period that they occur. This guidance also permits an employer to withhold up to the maximum statutory withholding rates in a jurisdiction without triggering liability classification, allows companies to elect to account for forfeitures as they occur, and provides requirements for the cash flow classification of cash paid by an employer when directly withholding shares for tax-withholding purposes and for the classification of excess tax benefits. The new guidance prescribes different transition methods for the various provisions. Effective for the Company – Fiscal 2018 first quarter, with early adoption permitted. Impact on consolidated financial statements – The Company will adopt this guidance in its fiscal 2018 first quarter. For the fiscal years ended June 30, 2017 and 2016, the Company recognized $42 million and $22 million of excess tax benefits, respectively, directly in its consolidated statements of equity. These amounts may or may not be representative of future amounts to be recognized in the income statement upon the adoption of this new standard, as the impact of the adoption will be primarily dependent on the timing and intrinsic value of stock-based compensation awards, employee exercise behavior and applicable tax rates. Leases In February 2016, the FASB issued authoritative guidance that requires lessees to account for most leases on their balance sheets with the liability being equal to the present value of the lease payments. The right-of-use asset will be based on the lease liability adjusted for certain costs such as direct costs. Lease expense will be recognized similar to current accounting guidance with operating leases resulting in a straight-line expense, and financing leases resulting in a front-loaded expense similar to the current accounting for capital leases. This guidance must be adopted using a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and provides for certain practical expedients. Effective for the Company – Fiscal 2020 first quarter, with early adoption permitted . Impact on consolidated financial statements – The Company currently has an implementation team in place that is performing a comprehensive evaluation of the impact of the adoption of this guidance. While the Company has not completed its evaluation, it believes the adoption of this standard will have a significant impact on its consolidated balance sheets. As disclosed in Note 15 – Commitments and Contingencies , the Company has $2,427 million in future minimum lease commitments as of June 30, 2017. Upon adopt

INVESTMENTS

INVESTMENTS	12 Months Ended
	Jun. 30, 2017
INVESTMENTS
INVESTMENTS	NOTE 3 – INVESTMENTS Gains and losses recorded in AOCI related to the Company’s available-for-sale investments as of June 30, 2017 were as follows: (In millions) Cost Gross Unrealized Gross Unrealized 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, 2016 were as follows: (In millions) Cost Gross Unrealized Gross Unrealized 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 June 30, 2017: (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 June 30, 2017: In a Loss Position for Less Than 12 Months In a Loss Position for More Than 12 Months (In millions) Fair Value Gross Unrealized Fair Value Gross Unrealized Available-for-sale securities $ $ ) $ $ — Gross gains and losses realized on sales of investments included in the consolidated statements of earnings were as follows: Year Ended June 30 (In millions) 2017 2016 Gross realized gains $ $ Gross realized losses ) ) Total $ — $ — The Company utilizes the first-in, first-out method to determine the cost of the security sold. Sale proceeds from investments classified as available-for-sale were $687 million and $794 million in fiscal 2017 and 2016, respectively.

INVENTORY AND PROMOTIONAL MERCH

INVENTORY AND PROMOTIONAL MERCHANDISE	12 Months Ended
	Jun. 30, 2017
INVENTORY AND PROMOTIONAL MERCHANDISE
INVENTORY AND PROMOTIONAL MERCHANDISE	NOTE 4 – INVENTORY AND PROMOTIONAL MERCHANDISE June 30 (In millions) 2017 2016 Inventory and promotional merchandise, net consists of: Raw materials $ $ Work in process Finished goods Promotional merchandise $ $

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Jun. 30, 2017
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT	NOTE 5 – PROPERTY, PLANT AND EQUIPMENT June 30 (In millions) 2017 2016 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 $183 million and $186 million as of June 30, 2017 and 2016, respectively, is included in their respective asset categories above. Depreciation and amortization of property, plant and equipment was $428 million, $401 million and $400 million in fiscal 2017, 2016 and 2015, 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.

ACQUISITION OF BUSINESSES

ACQUISITION OF BUSINESSES	12 Months Ended
	Jun. 30, 2017
ACQUISITION OF BUSINESSES
ACQUISITION OF BUSINESSES	NOTE 6 – ACQUISITION OF BUSINESSES On December 19, 2016, the Company acquired 100% of Too Faced, a makeup brand, for approximately $1.5 billion. This acquisition is expected to complement the Company’s distribution in the specialty-multi channel. The amount paid at closing was funded by cash on hand including the proceeds from the issuance of commercial paper. In February 2017, the Company issued long-term debt to refinance a portion of the outstanding commercial paper, see Note 11 – Debt . A working capital adjustment of approximately $8 million was received by the Company in the fourth quarter of fiscal 2017. The results of operations of Too Faced are included in the Company’s consolidated financial statements commencing on the acquisition date. The Company has recorded an allocation of the purchase price to the Company’s tangible and identifiable intangible assets acquired and liabilities assumed based on their fair value at the acquisition date. The excess of the purchase price over the fair value of the net tangible and intangible assets was recorded as goodwill, which includes value associated with assembled workforce. The calculation of purchase price and purchase price allocation, which is pending finalization of tax-related items and completion of the related final valuation, is as follows: (In millions) Cash $ Accounts receivable (1) Inventory Other current assets Property, plant and equipment Intangible assets Goodwill Total assets acquired Accounts payable Other accrued liabilities Deferred income taxes Total liabilities assumed Total purchase price $ (1) Represents the gross amount of trade receivables of $42 million, net of estimated customer deductions which were de minimis. For the year ended June 30, 2017, the Company’s statements of earnings included approximately $165 million of net sales and $22 million, net of tax, of net loss, inclusive of acquisition-related costs, related to Too Faced. Acquisition-related costs, which primarily include financial advisory, accounting and legal fees, in the amount of $11 million for the year ended June 30, 2017, are included in Selling, general and administrative expenses in the accompanying consolidated statements of earnings. Measurement period adjustments were not material to the consolidated financial statements. On November 14, 2016, the Company also acquired 100% of BECCA, a makeup brand. Pro forma results of operations reflecting the Too Faced and BECCA acquisitions have not been presented, as the impact on the Company’s consolidated financial results would not have been material.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Jun. 30, 2017
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS As previously discussed in Note 6 – Acquisition of Businesses , during the year ended June 30, 2017, the Company acquired Too Faced and BECCA, which included the addition of goodwill of $705 million, amortizable intangible assets of $397 million (with a weighted-average amortization period of approximately 10 years) and non-amortizable intangible assets of $623 million. Goodwill associated with the acquisitions is primarily attributable to the future revenue growth opportunities associated with additional share in the makeup category. As such, the goodwill has been allocated to the Company’s makeup product category. Approximately $316 million of goodwill recorded in connection with certain of these acquisitions is expected to be deductible for tax purposes. These amounts are provisional pending finalization of tax-related items and completion of the related final valuations. During the year ended June 30, 2017, the Company recognized $11 million of goodwill associated with the continuing earn-out obligations related to the acquisition of the Bobbi Brown brand. The intangible assets acquired in connection with the acquisitions of Too Faced and BECCA are classified as Level 3 in the fair value hierarchy. The estimate of the fair values of acquired amortizable intangible assets was determined using a multi-period excess earnings income approach. Fair value was determined under this approach by estimating future cash flows over multiple periods, as well as a terminal value, and discounting such cash flows at a rate of return that reflects the relative risk of the cash flows. The estimate of the fair values of acquired intangible assets not subject to amortization was determined using an income approach, specifically the relief-from-royalty method. Goodwill The Company assigns goodwill of a reporting unit to the product category in which that reporting unit predominantly operates at the time of acquisition. The following table presents goodwill by product category and the related change in the carrying amount: (In millions) Skin Makeup Fragrance Hair Total Balance as of June 30, 2015 Goodwill $ $ $ $ $ Accumulated impairments ) — — ) ) Goodwill acquired during the year — — Translation and other adjustments — — ) ) ) — ) Balance as of June 30, 2016 Goodwill Accumulated impairments ) — — ) ) Goodwill acquired during the year — — — Impairment charges ) — ) — ) ) ) — Balance as of June 30, 2017 Goodwill Accumulated impairments ) — ) ) ) $ $ $ $ $ Other Intangible Assets Other intangible assets include trademarks and patents, as well as license agreements and other intangible assets resulting from or related to businesses and assets purchased by the Company. Indefinite-lived intangible assets (e.g., trademarks) are not subject to amortization and are assessed at least annually for impairment during the fiscal fourth quarter or more frequently if certain events or circumstances exist. Other intangible assets (e.g., non-compete agreements, customer lists) are amortized on a straight-line basis over their expected period of benefit, approximately 2 years to 20 years. Intangible assets related to license agreements were amortized on a straight-line basis over their useful lives based on the terms of the respective agreements. The costs incurred and expensed by the Company to extend or renew the term of acquired intangible assets during fiscal 2017 and 2016 were not significant to the Company’s results of operations. Other intangible assets consist of the following: June 30, 2017 June 30, 2016 (In millions) Gross Accumulated Total Net Gross Accumulated Total Net 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 for fiscal 2017, 2016 and 2015 was $35 million, $16 million and $14 million, respectively. The estimated aggregate amortization expense for each of the next five fiscal years is as follows: Fiscal (In millions) 2018 2019 2020 2021 2022 Estimated aggregate amortization expense $ $ $ $ $ Fiscal 2017 Annual Impairment Testing The Company assesses goodwill and other indefinite-lived intangible assets at least annually for impairment or more frequently if certain events or circumstances exist. Based on the Company’s annual goodwill and other intangible asset impairment testing as of April 1, 2017, the Company determined that the carrying values of the RODIN olio lusso and Editions de Parfums Frédéric Malle reporting units exceeded their fair values. This determination was made based on updated long-term plans, finalized and approved in June 2017, that reflected lower sales growth projections due to a softer than expected retail environment for those brands. As a result, a Step 2 impairment assessment was performed and the Company recorded an impairment charge of the goodwill related to these reporting units of $28 million. The fair values of the reporting units were based upon the average of the income approach, which utilizes estimated cash flows and a terminal value, discounted at a rate of return that reflects the relative risk of cash flows, and the market approach, which utilizes performance multiples based on market peers. The Company also determined that the carrying values of the RODIN olio lusso and Editions de Parfums Frédéric Malle trademarks, as well as the RODIN olio lusso persona and customer relationship intangible assets exceeded their estimated fair values. The fair values of the trademarks were determined utilizing a royalty rate to determine discounted projected future cash flows. As a result, the Company recognized impairment charges of $3 million for the remaining carrying values of the RODIN olio lusso trademark, customer relationship and persona intangible assets. The Company also recognized an impairment charge for the Editions de Parfums Frédéric Malle trademark, which was de minimis. The combined goodwill and other intangible asset impairment charges of $9 million and $22 million are reflected in the skin care and fragrance product categories, respectively, and $17 million and $14 million are reflected in the Americas and Europe, the Middle East & Africa regions, respectively.

CHARGES ASSOCIATED WITH RESTRUC

CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES	12 Months Ended
	Jun. 30, 2017
CHARGES ASSOCIATED WITH RESTRUCTURING ACTIVITIES
CHARGES ASSOCIATED WITH RESTRUCTURING ACTIVITIES	NOTE 8 – CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES During fiscal 2017 and 2016, the Company incurred charges associated with restructuring and other activities in connection with its Leading Beauty Forward and Global Technology Infrastructure initiatives as follows: Sales Returns Operating Expenses (In millions) (included in Net Cost of Sales Restructuring Other Total Fiscal 2017 Leading Beauty Forward $ $ $ $ $ Fiscal 2016 Leading Beauty Forward $ $ — $ $ $ Global Technology Infrastructure — — Total $ $ — $ $ $ The types of activities included in restructuring and other charges, and the related accounting criteria, are described below. Leading Beauty Forward Background In May 2016, the Company announced a multi-year initiative (“Leading Beauty Forward,” “LBF” or the “Program”) to build on its strengths and better leverage its cost structure to free resources for investment to continue its growth momentum. LBF is designed to enhance the Company’s go-to-market capabilities, reinforce its leadership in global prestige beauty and continue creating sustainable value. The Company plans to approve specific initiatives under LBF through fiscal 2019 related to the optimization of select corporate functions, supply chain activities, and corporate and regional market support structures, as well as the exit of underperforming businesses, and expects to complete those initiatives through fiscal 2021. Inclusive of charges recorded from inception through June 30, 2017, the Company expects that LBF will result in related restructuring and other charges totaling between $600 million and $700 million before taxes. Restructuring actions to be taken over the duration of LBF involve the redesigning, resizing and reorganization of select corporate functions and go-to-market structures to improve effectiveness and create cost efficiencies in support of increased investment in growth drivers. As the Company continues to grow, it is important to more efficiently support its diverse portfolio of brands, channels and geographies in the rapidly evolving prestige beauty environment. The initiatives being evaluated include the creation of a shared-services structure in existing or lower-cost locations, either using Company resources or through external service providers. The Company also believes that decision-making in key areas of innovation, marketing and digital communications should be moved closer to the consumer to increase speed and local relevance. In connection with LBF, at this time, the Company estimates a net reduction over the duration of LBF in the range of approximately 900 to 1,200 positions globally, which is about 2.5% of its current workforce. This reduction takes into account the elimination of some positions, retraining and redeployment of certain employees and investment in new positions in key areas. Program-to-Date Approvals Of the $600 million to $700 million restructuring and other charges expected to be incurred, total cumulative charges approved by the Company through June 30, 2017, some of which were recorded during fiscal 2017 and 2016, were: Sales Returns Operating Expenses (In millions) (included in Cost of Sales Restructuring Other Total Approval Period Fiscal 2016 $ $ $ $ $ Fiscal 2017 Cumulative through June 30, 2017 $ $ $ $ $ The major cost types related to the cumulative restructuring initiatives set forth above were: (In millions) Employee- Costs Asset-Related Contract Other Exit Total Approval Period Fiscal 2016 $ $ $ $ $ Fiscal 2017 — Cumulative through June 30, 2017 $ $ $ $ $ Specific actions taken since the Program inception include: · Optimize Select Corporate Functions – The Company approved initiatives to realign and optimize its organization to better leverage scale, improve productivity, reduce complexity and achieve cost savings across various functions, including finance, research and development, human resources, global information systems and legal. Such approvals included consulting, other professional services, temporary labor backfill and, to a lesser extent, costs for training and recruiting related to new capabilities, which are necessary for the design of the future structures, processes and technologies of these functions, as well as similar expenses for certain other corporate functions. These actions will result in a net reduction of the workforce, which includes position eliminations, the re-leveling of certain positions and an investment in new capabilities. The Company also approved other charges to support the LBF Project Management Office (“PMO”), primarily consisting of internal costs for employees dedicated solely to project management activities, with a focus on project integration and change management. The future design of certain corporate functions includes the creation of a shared-services structure, either using Company resources or through external service providers. As part of the future service delivery model, the Company approved the organizational design of the management and governance platform of a shared-services structure using Company resources, as well as the transition of select transactional activities to an external service provider, which is expected to result in other charges for implementation, project and consulting costs. · Optimize Supply Chain – An initiative to centralize the Company’s supply chain management was approved. This includes the relocation of certain operations and positions, with some employees being separated and positions replaced in a new location. Other charges approved are primarily related to consulting fees for design and implementation, temporary labor backfill during the transition and project management costs. In addition, the Company approved certain activities related to initiatives to enable distribution capabilities and generate efficiencies through an external service provider and to optimize certain supply chain activities through organizational design in certain key areas. Collectively, these actions will result in a net reduction of the workforce, which includes position eliminations, the re-leveling of certain positions and an investment in new capabilities. Initiatives to redesign certain supply chain planning and transportation management activities and to improve the organizational design of manufacturing and engineering processes related to certain product lines were also approved, primarily resulting in consulting fees and, to a lesser extent, project management costs. · Optimize Corporate and Region Market Support Structures – The Company approved initiatives to enhance its go-to-market support structures and achieve synergies across certain geographic regions, brands and channels. These initiatives are primarily intended to shift certain areas of focus from traditional to social and digital marketing strategies to provide enhanced consumer experience, as well as to support expanded omnichannel opportunities. These actions will result in a net reduction of the workforce, which includes position eliminations, the re-leveling of certain positions and an investment in new capabilities. The Company also approved consulting and other professional services related to the design of future structures, processes and technologies and, to a lesser extent, other costs for recruitment and training related to new capabilities. In addition, the Company approved initiatives to enhance consumer engagement strategies across certain channels in Europe, which is expected to result in product returns. · Exit Underperforming Businesses – To further improve profitability in certain areas of the Company’s brands and regions, the Company approved initiatives to exit certain businesses in select markets and channels of distribution. The Company has also decided to close a number of underperforming freestanding retail stores and exit mid-tier department stores for certain brands in the United States to redirect resources to other retail locations and channels with potential for greater profitability. These activities will result in product returns, inventory write-offs, reduction of workforce, accelerated depreciation and termination of contracts. Program-to-Date Restructuring and Other Charges Restructuring charges are comprised of the following: Employee-Related Costs – Employee-related costs are primarily comprised of severance and other post-employment benefit costs, calculated based on salary levels, prior service and other statutory minimum benefits, if applicable. Employee-related costs are expensed when specific employees have been identified and when payment is probable and estimable, which generally occurs upon approval of the related initiative by management with authority delegated from the Company’s Board of Directors. Asset-Related Costs – Asset-related costs primarily consist of asset write-offs or accelerated depreciation related to long-lived assets that will be taken out of service prior to their existing useful life as a direct result of a restructuring initiative. The accelerated portion of depreciation expense will be expensed on a straight-line basis and be classified as restructuring charges, while the portion relating to the previous existing useful life will continue to be reported in Selling, general and administrative expenses. Contract Terminations – Costs related to contract terminations include continuing payments to a third party after the Company has ceased benefiting from the rights conveyed in the contract, or a payment made to terminate a contract prior to its expiration. These may include continuing operating lease payments (less estimated sublease payments) to a landlord after exiting a location prior to the lease-end date as a direct result of an approved restructuring initiative. Contract terminations also include minimum payments or fees related to the early termination of license or other personal service contracts. Costs related to contract terminations are expensed upon the cease-use date of a leased property or upon the notification date to the third party in the event of a license or personal service contract termination. Other Exit Costs – Other exit costs related to restructuring activities generally include costs to relocate facilities or employees, recruiting to fill positions as a result of relocation of operations, and employee outplacement for separated employees. Other exit costs are charged to expense as incurred. Other charges associated with restructuring activities are comprised of the following: Sales Returns and Cost of Sales – Product returns (offset by the related cost of sales) and inventory write-offs or write-downs as a direct result of an approved restructuring initiative to exit certain businesses or locations will be recorded as a component of Net Sales and/or Cost of Sales when estimable and reasonably assured. Consulting and other professional services, primarily related to the design of supply chain planning activities, are expensed in Cost of Sales as incurred. Other Charges – The Company approved other charges related to the design and implementation of approved initiatives, which are charged to Operating Expenses as incurred and primarily include the following: · Consulting and other professional services for organizational design of the future structures, processes and technologies, and implementation thereof, · Temporary labor backfill, · Costs to establish and maintain a PMO for the duration of Leading Beauty Forward, including internal costs for employees dedicated solely to project management activities, and other PMO-related expenses incremental to the Company’s ongoing operations (e.g., rent and utilities), and · Recruitment and training costs for new and reskilled employees to acquire and apply the capabilities needed to perform responsibilities as a direct result of an approved restructuring initiative. The Company records approved charges that are associated with restructuring and other activities once the relevant accounting criteria have been met. Total cumulative charges recorded associated with restructuring and other activities for LBF were: Sales Returns Operating Expenses (In millions) (included in Cost of Sales Restructuring Other Total Fiscal 2016 $ $ — $ $ $ Fiscal 2017 Cumulative through June 30, 2017 $ $ $ $ $ The major cost types related to the cumulative restructuring charges set forth above were: (In millions) Employee- Costs Asset- Contract Other Exit Total Fiscal 2016 $ $ $ — $ — $ Fiscal 2017 Charges recorded through June 30, 2017 $ $ $ $ $ Accrued restructuring charges from Program inception through June 30, 2017 were: (In millions) Employee- Costs Asset- Contract Other Exit Total Charges $ $ $ — $ — $ Noncash asset write-offs — ) — — ) Translation adjustments ) — — — ) Balance at June 30, 2016 — — — Charges Cash payments ) — ) ) ) Noncash asset write-offs — ) — — ) Balance at June 30, 2017 $ $ — $ — $ — $ Restructuring charges for employee-related costs in fiscal 2017 are net of adjustments to the accrual estimate for certain employees who either resigned or transferred to other existing positions within the Company. Accrued restructuring charges at June 30, 2017 are expected to result in cash expenditures funded from cash provided by operations of approximately $97 million, $47 million and $6 million in fiscal 2018, 2019 and 2020, respectively. Global Technology Infrastructure In October 2015, the Company approved plans to transform and modernize its global technology infrastructure (“GTI”) to fundamentally change the way the Company delivers information technology services internally (such initiative, the “GTI Restructuring”). As part of the GTI Restructuring, the Company transitioned its GTI from Company-owned assets to a primarily vendor-owned, cloud-based model where the Company pays for services as they are used. The Company incurred restructuring charges of $46 million for the year ended June 30, 2016, reflecting contract terminations of $24 million, asset write-offs of $18 million and employee-related costs of $4 million. Other charges in connection with the implementation of this initiative were $7 million for the year ended June 30, 2016, primarily related to consulting services. These charges are included in Restructuring and other charges in the accompanying consolidated statements of earnings. The implementation of the GTI Restructuring was substantially completed during fiscal 2016.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Jun. 30, 2017
INCOME TAXES
INCOME TAXES	NOTE 9 – INCOME TAXES The provision for income taxes is comprised of the following: Year Ended June 30 (In millions) 2017 2016 2015 Current: Federal $ $ $ Foreign State and local Deferred: Federal ) ) ) Foreign ) ) State and local ) ) ) $ $ $ Earnings before income taxes include amounts contributed by the Company’s foreign operations of approximately $1,676 million, $1,448 million and $1,420 million for fiscal 2017, 2016 and 2015, respectively. A portion of these earnings is taxed in the United States. A reconciliation of the U.S. federal statutory income tax rate to the Company’s actual effective tax rate on earnings before income taxes is as follows: Year Ended June 30 2017 2016 2015 Provision for income taxes at statutory rate % % % Increase (decrease) due to: State and local income taxes, net of federal tax benefit Taxation of foreign operations ) ) ) China deferred tax asset valuation allowance reversal ) — — Income tax reserve adjustments ) ) Other, net ) Effective tax rate % % % Income tax reserve adjustments represent changes in the Company’s net liability for unrecognized tax benefits related to prior-year tax positions including the impact of tax settlements and lapses of the applicable statutes of limitations. In the fourth quarter of fiscal 2017, a favorable change to the tax law in China was enacted that expanded the corporate income tax deduction allowance for advertising and promotional expenses to include all companies that distribute and sell cosmetics in the country. As a result of the new law, in the fourth quarter of fiscal 2017, the Company released into income its previously established China deferred tax asset valuation allowance of approximately $75 million related to its accumulated carryforward of excess advertising and promotional expenses. Federal income and foreign withholding taxes have not been provided on approximately $4,136 million of undistributed earnings of foreign subsidiaries at June 30, 2017. The Company intends to reinvest these earnings in its foreign operations indefinitely, except where it is able to repatriate these earnings to the United States without material incremental tax provision. The determination and estimation of the future income tax consequences in all relevant taxing jurisdictions involves the application of highly complex tax laws in the countries involved, particularly in the United States, and is based on the tax profile of the Company in the year of earnings repatriation. Accordingly, it is not practicable to determine the amount of tax associated with such undistributed earnings. Significant components of the Company’s deferred income tax assets and liabilities were as follows: June 30 (In millions) 2017 2016 Deferred tax assets: Compensation related expenses $ $ Inventory obsolescence and other inventory related reserves Retirement benefit obligations Various accruals not currently deductible Net operating loss, credit and other carryforwards Unrecognized state tax benefits and accrued interest Other differences between tax and financial statement values Valuation allowance for deferred tax assets ) ) Total deferred tax assets Deferred tax liabilities: Depreciation and amortization ) ) Other differences between tax and financial statement values ) ) Total deferred tax liabilities ) ) Total net deferred tax assets $ $ As of June 30, 2017 and 2016, the Company had net deferred tax assets of $322 million and $422 million, respectively, substantially all of which are included in Other assets in the accompanying consolidated balance sheets. As of June 30, 2017 and 2016, certain subsidiaries had net operating loss and other carryforwards for tax purposes of approximately $230 million and $410 million, respectively. With the exception of approximately $218 million of net operating loss and other carryforwards with an indefinite carryforward period as of June 30, 2017, these carryforwards expire at various dates through fiscal 2024. Deferred tax assets, net of valuation allowances, in the amount of $34 million and $4 million as of June 30, 2017 and 2016, respectively, have been recorded to reflect the tax benefits of the carryforwards not utilized to date. A full valuation allowance has been provided for those deferred tax assets for which, in the opinion of management, it is more-likely-than-not that the deferred tax assets will not be realized. As of June 30, 2017 and 2016, the Company had gross unrecognized tax benefits of $68 million and $82 million, respectively. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $42 million. The Company classifies applicable interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. During fiscal 2017, the Company recognized a gross interest and penalty benefit of $5 million in the accompanying consolidated statement of earnings. The total gross accrued interest and penalty expense during fiscal 2016 in the accompanying consolidated statement of earnings was de minimis. The total gross accrued interest and penalties in the accompanying consolidated balance sheets at June 30, 2017 and 2016 were $13 million and $18 million, respectively. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: June 30 (In millions) 2017 2016 Beginning of the year balance of gross unrecognized tax benefits $ $ Gross amounts of increases as a result of tax positions taken during a prior period Gross amounts of decreases as a result of tax positions taken during a prior period ) ) Gross amounts of increases as a result of tax positions taken during the current period Amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities ) ) Reductions to unrecognized tax benefits as a result of a lapse of the applicable statutes of limitations ) ) End of year balance of gross unrecognized tax benefits $ $ Earnings from the Company’s global operations are subject to tax in various jurisdictions both within and outside the United States. The Company participates in the U.S. Internal Revenue Service (the “IRS”) Compliance Assurance Program (“CAP”). The objective of CAP is to reduce taxpayer burden and uncertainty while assuring the IRS of the accuracy of income tax returns prior to filing, thereby reducing or eliminating the need for post-filing examinations. During the fourth quarter of fiscal 2017, the Company formally concluded the compliance process with respect to fiscal 2016 under the IRS CAP. The conclusion of this process did not impact the Company’s consolidated financial statements. As of June 30, 2017, the compliance process was ongoing with respect to fiscal 2017. The Company is currently undergoing income tax examinations and controversies in several state, local and foreign jurisdictions. These matters are in various stages of completion and involve complex multi-jurisdictional issues common among multinational enterprises, including transfer pricing, which may require an extended period of time for resolution. During fiscal 2017, the Company concluded various state, local and foreign income tax audits and examinations while several other matters, including those noted above, were initiated or remained pending. On the basis of the information available in this regard as of June 30, 2017, the Company does not expect any significant changes to the total amount of unrecognized tax benefits within the next 12 months. The tax years subject to examination vary depending on the tax jurisdiction. As of June 30, 2017, the following tax years remain subject to examination by the major tax jurisdictions indicated: Major Jurisdiction Open Fiscal Years Belgium 2013 – 2017 Canada 2015 – 2017 China 2013 – 2017 France 2013 – 2017 Germany 2013 – 2017 Hong Kong 2011 – 2017 Italy 2014 – 2017 Japan 2016 – 2017 Korea 2014 – 2017 Russia 2015 – 2017 Spain 2013 – 2017 Switzerland 2014 – 2017 United Kingdom 2016 – 2017 United States 2017 State of California 2013 – 2017 State and City of New York 2011 – 2017 The Company is also subject to income tax examinations in numerous other state, local and foreign jurisdictions. The Company believes that its tax reserves are adequate for all years subject to examination.

OTHER ACCRUED LIABILITIES

OTHER ACCRUED LIABILITIES	12 Months Ended
	Jun. 30, 2017
OTHER ACCRUED LIABILITIES
OTHER ACCRUED LIABILITIES	NOTE 10 – OTHER ACCRUED LIABILITIES Other accrued liabilities consist of the following: June 30 (In millions) 2017 2016 Advertising, merchandising and sampling $ $ Employee compensation Payroll and other taxes Other $ $

DEBT

DEBT	12 Months Ended
	Jun. 30, 2017
DEBT
DEBT	NOTE 11 – DEBT The Company’s current and long-term debt and available financing consist of the following: Debt at June 30 Available financing at June 30, 2017 (In millions) 2017 2016 Committed Uncommitted 4.15% Senior Notes, due March 15, 2047 (“2047 Senior Notes”) $ $ — $ — $ — 4.375% Senior Notes, due June 15, 2045 (“2045 Senior Notes”) — — 3.70% Senior Notes, due August 15, 2042 (“2042 Senior Notes”) — — 6.00% Senior Notes, due May 15, 2037 (“2037 Senior Notes”) — — 5.75% Senior Notes, due October 15, 2033 (“2033 Senior Notes”) — — 3.15% Senior Notes, due March 15, 2027 (“2027 Senior Notes”) — — — 2.35% Senior Notes, due August 15, 2022 (“2022 Senior Notes”) — — 1.70% Senior Notes, due May 10, 2021 (“2021 Senior Notes”) — — 1.80% Senior Notes, due February 7, 2020 (“2020 Senior Notes”) — — — 5.55% Senior Notes, due May 15, 2017 (“2017 Senior Notes”) — — — Commercial paper that matured through July 2017 (1.07% interest rate) — — Other long-term borrowings — — Other current borrowings — Revolving credit facility — — — $ $ Less current debt including current maturities ) ) $ $ As of June 30, 2017, the Company’s long-term debt consisted of the following: Notes Issue Date Price Yield Principal Unamortized Interest rate Debt Semi-annual interest ($ in millions) 2047 Senior Notes (1) February 2017 % % $ $ ) $ — $ ) March 15/September 15 2045 Senior Notes (2) June 2015 ) — ) June 15/December 15 2045 Senior Notes (2) May 2016 — ) June 15/December 15 2042 Senior Notes August 2012 ) — ) February 15/August 15 2037 Senior Notes (3) May 2007 ) — ) May 15/November 15 2033 Senior Notes (4) September 2003 ) — ) April 15/October 15 2027 Senior Notes (5) February 2017 — — ) March 15/September 15 2022 Senior Notes (6) August 2012 — ) February 15/August 15 2021 Senior Notes (6),(7) May 2016 — ) ) May 10/November 10 2020 Senior Notes (6) February 2017 — — ) February 7/August 7 (1) In November 2016, in anticipation of the issuance of the 2047 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $350 million at a weighted-average all-in rate of 3.01%. The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a gain in OCI of $3 million that is being amortized against interest expense over the life of the 2047 Senior Notes. As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2047 Senior Notes will be 4.17% over the life of the debt. (2) In April and May 2015, in anticipation of the issuance of the 2045 Senior Notes in June 2015, the Company entered into a series of forward-starting interest rate swap agreements on a notional amount totaling $300 million at a weighted-average all-in rate of 2.38%. The forward-starting interest rate swap agreements were settled upon the issuance of the new debt and the Company recognized a gain in OCI of $18 million that will be amortized against interest expense over the life of the 2045 Senior Notes. As a result of the forward-starting interest rate swap agreements, the debt discount and debt issuance costs, the effective interest rate on the 2045 Senior Notes will be 4.216% over the life of the debt. In May 2016, the Company reopened this offering with the same terms and issued an additional $150 million for an aggregate amount outstanding of $450 million of 2045 Senior Notes. (3) In April 2007, in anticipation of the issuance of the 2037 Senior Notes, the Company entered into a series of forward-starting interest rate swap agreements on a notional amount totaling $210 million at a weighted-average all-in rate of 5.45%. The forward-starting interest rate swap agreements were settled upon the issuance of the new debt and the Company recognized a loss in OCI of $1 million that is being amortized to interest expense over the life of the 2037 Senior Notes. As a result of the forward-starting interest rate swap agreements, the debt discount and debt issuance costs, the effective interest rate on the 2037 Senior Notes will be 6.181% over the life of the debt. (4) In May 2003, in anticipation of the issuance of the 2033 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $195 million at a weighted-average all-in rate of 4.53%. The treasury lock agreements were settled upon the issuance of the new debt and the Company received a payment of $15 million that is being amortized against interest expense over the life of the 2033 Senior Notes. As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2033 Senior Notes will be 5.395% over the life of the debt. (5) In November 2016, in anticipation of the issuance of the 2027 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $450 million at a weighted-average all-in rate of 2.37%. The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a gain in OCI of $2 million that is being amortized against interest expense over the life of the 2027 Senior Notes. As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2027 Senior Notes will be 3.18% over the life of the debt. (6) The Company entered into interest rate swap agreements with a notional amount totaling $250 million, $450 million and $250 million to effectively convert the fixed rate interest on its outstanding 2020 Senior Notes, 2021 Senior Notes and 2022 Senior Notes, respectively, to variable interest rates based on three-month LIBOR plus a margin. (7) In April 2016, in anticipation of the issuance of the 2021 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $400 million at a weighted-average all-in rate of 1.27%. The treasury lock agreements were settled upon the issuance of the new debt and the Company made a payment of $1 million that is being amortized to interest expense over the life of the 2021 Senior Notes. As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2021 Senior Notes will be 1.844% over the life of the debt. In October 2016, the Company replaced its undrawn $1.0 billion unsecured revolving credit facility that was set to expire on July 15, 2020 (the “Prior Facility”) with a new $1.5 billion senior unsecured revolving credit facility that expires on October 3, 2021, unless extended for up to two additional years in accordance with the terms set forth in the agreement (the “New Facility”). The New Facility may be used for general corporate purposes. Up to the equivalent of $500 million of the New Facility is available for multi-currency loans. Interest rates on borrowings under the New Facility will be based on prevailing market interest rates in accordance with the agreement. The Company incurred costs of approximately $1 million to establish the New Facility, which will be amortized over the term of the facility. The New Facility has an annual fee of approximately $1 million, payable quarterly, based on the Company’s current credit ratings. The New Facility contains a cross-default provision whereby a failure to pay other material financial obligations in excess of $175 million (after grace periods and absent a waiver from the lenders) would result in an event of default and the acceleration of the maturity of any outstanding debt under this facility. At June 30, 2017, no borrowings were outstanding under the New Facility. In November 2016, the Company increased the size of its commercial paper program, under which it may issue commercial paper in the United States, to $3 billion (from $1.5 billion) to finance the Company’s second quarter acquisitions. In November 2016, the Company also entered into a senior unsecured credit agreement that provided for a 364 day revolving credit facility (the “364 Day Facility”) in the amount of $1.5 billion for credit support for the Company’s commercial paper program and for general corporate purposes. In February 2017, the Company completed a public offering of $500 million aggregate principal amount of its 2020 Senior Notes, $500 million aggregate principal amount of its 2027 Senior Notes and $500 million aggregate principal amount of its 2047 Senior Notes. The Company used proceeds from this offering for general corporate purposes, including to repay outstanding commercial paper as it matured and to refinance its $300 million aggregate principal amount of the 2017 Senior Notes when it became due in May 2017. In February 2017, the Company decreased the size of its commercial paper program, under which it may issue commercial paper in the United States, to $1.5 billion and terminated the undrawn $1.5 billion 364 Day Facility. As of June 30, 2017, the Company had $170 million of commercial paper outstanding that matured through July 2017, which the Company refinanced as it matured. At August 18, 2017, the Company had $431 million of commercial paper outstanding, which may be refinanced on a periodic basis as it matures at the then-prevailing market interest rates. The Company maintains uncommitted credit facilities in various regions throughout the world. Interest rate terms for these facilities vary by region and reflect prevailing market rates for companies with strong credit ratings. During fiscal 2017 and 2016, the monthly average amount outstanding was approximately $17 million and $31 million, respectively, and the annualized monthly weighted-average interest rate incurred was approximately 11.2% and 12.5%, respectively. Refer to Note 15 – Commitments and Contingencies for the Company’s projected debt service payments, as of June 30, 2017, over the next five fiscal years.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	12 Months Ended
	Jun. 30, 2017
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE 12 – DERIVATIVE FINANCIAL INSTRUMENTS 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 Fair Value (1) Balance Sheet Fair Value (1) June 30 June 30 2017 2016 2017 2016 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 13 – 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) Location of Gain or Amount of Gain or (Loss) (Effective Portion) (1) June 30 June 30 2017 2016 2017 2016 Derivatives in Cash Flow Hedging Relationships: Foreign currency forward contracts $ ) $ Cost of sales $ $ Selling, general and administrative 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 $3 million and $(1) million for fiscal 2017 and 2016, respectively. The gain (loss) recognized in earnings related to the ineffective portion of the hedging relationships was de minimis for fiscal 2017. There was no gain (loss) recognized in earnings related to the ineffective portion of hedging relationships for fiscal 2016. (In millions) Location of Gain or (Loss) Recognized Amount of Gain or (Loss) Recognized (1) June 30 2017 2016 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 Amount of Gain or (Loss) Recognized June 30 2017 2016 Derivatives Not Designated as Hedging Instruments: 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 June 2019. Hedge effectiveness of foreign currency forward contracts is based on a hypothetical derivative methodology and excludes the portion of fair value attributable to the spot-forward difference which is recorded in current-period earnings. Hedge effectiveness of foreign currency option contracts is based on a dollar offset methodology. The Company may enter 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 the 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 June 30, 2017, the Company’s foreign currency cash-flow hedges were highly effective. At June 30, 2017, the Company had foreign currency forward contracts in the amount of $2,895 million. The foreign currencies included in foreign currency forward contracts (notional value stated in U.S. dollars) are principally the British pound ($541 million), Swiss franc ($457 million), Hong Kong dollar ($355 million), Euro ($295 million), Chinese yuan ($160 million), Canadian dollar ($148 million) and Thailand baht ($126 million). At June 30, 2016, the Company had foreign currency forward contracts in the amount of $3,265 million. The foreign currencies included in foreign currency forward contracts (notional value stated in U.S. dollars) are principally the Euro ($962 million), British pound ($497 million), Chinese yuan ($313 million), Hong Kong dollar ($274 million), Swiss franc ($256 million), Australian dollar ($157 million) and Taiwan dollar ($130 million). In April 2016, in anticipation of the issuance of the 2021 Senior Notes, the Company entered into a series of treasury lock agreements, which were designated as cash-flow hedges. In November 2016, in anticipation of the issuance of the 2027 and 2047 Senior Notes, the Company entered into a series of treasury lock agreements, which were designated as cash-flow hedges, see Note 11 – Debt for further discussion. The estimated net loss on the Company’s derivative instruments designated as cash-flow hedges as of June 30, 2017 that is expected to be reclassified from AOCI into earnings, net of tax, within the next twelve months is $18 million. The accumulated gain (loss) on derivative instruments in AOCI was $(4) million and $50 million as of June 30, 2017 and 2016, 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 notional amounts totaling $250 million, $450 million and $250 million to effectively convert the fixed rate interest on its 2020 Senior Notes, 2021 Senior Notes and 2022 Senior Notes, respectively, 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 $13 million at June 30, 2017. To manage this risk, the Company has 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	12 Months Ended
	Jun. 30, 2017
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 13 – FAIR VALUE MEASUREMENTS 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 June 30, 2017: (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 $ — $ $ — $ Interest rate swap 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, 2016: (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 estimated fair values of the Company’s financial instruments are as follows: June 30 2017 2016 (In millions) Carrying Fair Carrying Fair 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), net ) ) Interest rate swap contracts – asset (liability), net — — The following table presents the Company’s impairment charges for certain of its nonfinancial assets measured at fair value on a nonrecurring basis, classified as Level 3, during fiscal 2017: (In millions) Impairment Date of Fair Value Fair Value Goodwill $ April 1, 2017 $ Other intangible assets, net (trademarks) April 1, 2017 Other intangible assets, net (customer lists and other) April 1, 2017 — Total $ $ To determine the fair value of the RODIN olio lusso and Editions de Parfums Frédéric Malle reporting units as of April 1, 2017, the Company used the average of the income approach, which utilizes estimated cash flows and a terminal value, discounted at a rate of return that reflects the relative risk of cash flows, and the market approach, which utilizes performance multiples based on market peers. For both reporting units, decreased cash flows in future forecasted periods would not support a value in excess of carrying value and therefore the Company concluded that $28 million of goodwill was impaired. To determine the fair value of the RODIN olio lusso and Editions de Parfums Frédéric Malle trademarks as of April 1, 2017, the Company assessed the future performance of the reporting units and determined that decreased cash flows in future forecasted periods would not support the carrying values of the trademarks. The Company therefore concluded that the remaining carrying value of the RODIN olio lusso trademark was impaired. The impairment charge for the Editions de Parfums Frédéric Malle trademark was de minimis. The fair values of the trademarks were determined utilizing a royalty rate to determine discounted projected future cash flows. An assessment related to the carrying value of the RODIN olio lusso customer relationship and persona intangible assets also led to the conclusion of full impairment. 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 due to 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 treasury yield curves, 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 – Contingent consideration obligations consist of potential obligations related to the Company’s acquisitions in previous years. The amounts to be paid under these obligations are contingent upon the achievement of stipulated financial targets by the business subsequent to acquisition. The fair values of the contingent consideration related to certain acquisition earn-outs were estimated using a probability-weighted discount model that considers the achievement of the conditions upon which the respective contingent obligation is dependent (“Monte Carlo Method”). The Monte Carlo Method has various inputs into the valuation model, in addition to the risk-adjusted projected future operating results of the acquired entities, which include the following ranges at June 30, 2017: Risk-adjusted discount rate 1.5% to 2.3% Revenue volatility 3.7% to 8.5% Asset volatility 21.1% to 27.3% Revenue and earnings before income tax, depreciation and amortization correlation coefficient factor Revenue discount rates 3.0% to 4.8% Earnings before income tax, depreciation and amortization discount rates 10.7% to 13.1% Significant changes in the projected future operating results would result in a significantly higher or lower fair value measurement. Changes to the discount rates, volatilities or correlation factors would have a lesser effect. The 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. Changes in the fair value of the contingent consideration obligations for the year ended June 30, 2017 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, 2016 $ Changes in fair value ) Contingent consideration at June 30, 2017 $ In June 2017, the Company revised and approved the long-term financial projections for its brands. During this update, the Company noted that for certain of its fiscal 2015 and 2016 acquisitions, actual results and the most recent projections were lower during their respective earn-out measurement periods than the financial targets made at June 30, 2016 and it reassessed the likelihood of achieving those targets. As a result, the Company recognized a $57 million gain within Selling, general and administrative expenses to reflect the adjusted fair value of its contingent consideration, primarily related to the acquisitions of GLAMGLOW, Editions de Parfums Frédéric Malle and Le Labo as of June 30, 2017. The gain impacted the skin care and fragrance product categories by $24 million and $33 million, respectively, and the Americas and Europe, the Middle East & Africa regions by $43 million and $14 million, respectively. The Company also considered whether the change in the financial projections impacted the fair values of the related reporting units and intangible assets, see Note 7 - Goodwill and Other Intangible Assets for discussion of fiscal 2017 impairments.

PENSION, DEFERRED COMPENSATION

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS	12 Months Ended
	Jun. 30, 2017
PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS
PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS	NOTE 14 – PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS 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. Several plans provide pension benefits based primarily on years of service and employees’ earnings. In certain instances, the Company adjusts benefits in connection with international employee transfers. Retirement Growth Account Plan (U.S.) The Retirement Growth Account Plan is a trust-based, noncontributory qualified defined benefit pension plan. The Company seeks to maintain appropriate funded percentages. For contributions, the Company would seek to contribute an amount or amounts that would not be less than the minimum required by the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended, and subsequent pension legislation, and would not be more than the maximum amount deductible for income tax purposes. Restoration Plan (U.S.) The Company also has an unfunded, non-qualified domestic noncontributory pension Restoration Plan to provide benefits in excess of Internal Revenue Code limitations. International Pension Plans The Company maintains international pension plans, the most significant of which are defined benefit pension plans. The Company’s funding policies for these plans are determined by local laws and regulations. The Company’s most significant defined benefit pension obligations are included in the plan summaries below. Post-retirement Benefit Plans The Company maintains a domestic post-retirement benefit plan which provides certain medical and dental benefits to eligible employees. Employees hired after January 1, 2002 are not eligible for retiree medical benefits when they retire. Certain retired employees who are receiving monthly pension benefits are eligible for participation in the plan. Contributions required and benefits received by retirees and eligible family members are dependent on the age of the retiree. It is the Company’s practice to fund a portion of these benefits as incurred and may provide discretionary funding for future liabilities up to the maximum amount deductible for income tax purposes. Certain of the Company’s international subsidiaries and affiliates have post-retirement plans, although most participants are covered by government-sponsored or administered programs. Plan Summaries The significant components of the above mentioned plans as of and for the years ended June 30 are summarized as follows: Pension Plans Other than U.S. International Post-retirement (In millions) 2017 2016 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ $ $ $ $ $ Service cost Interest cost Plan participant contributions — — Actuarial loss (gain) ) ) ) Foreign currency exchange rate impact — — ) ) — ) Benefits, expenses, taxes and premiums paid ) ) ) ) ) ) Settlements and curtailments — — ) ) — — Special termination benefits — — — — Benefit obligation at end of year $ $ $ $ $ $ Change in plan assets: Fair value of plan assets at beginning of year $ $ $ $ $ $ Actual return on plan assets Foreign currency exchange rate impact — — ) ) — — Employer contributions Plan participant contributions — — Settlements — — ) ) — — Benefits, expenses, taxes and premiums paid from plan assets ) ) ) ) ) ) Fair value of plan assets at end of year $ $ $ $ $ $ Funded status $ ) $ ) $ ) $ ) $ ) $ ) Amounts recognized in the Balance Sheet consist of: Other assets $ $ — $ $ $ — $ — Other accrued liabilities ) ) ) ) — ) Other noncurrent liabilities ) ) ) ) ) ) Funded status ) ) ) ) ) ) Accumulated other comprehensive loss Net amount recognized $ $ $ $ $ ) $ ) Pension Plans Other than U.S. International Post-retirement ($ in millions) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost: Service cost $ $ $ $ $ $ $ $ $ Interest cost Expected return on assets ) ) ) ) ) ) ) ) ) Amortization of: Actuarial loss — Prior service cost — — Curtailments — — — — — ) — — — Special termination benefits — — — — — — — Net periodic benefit cost $ $ $ $ $ $ $ $ $ Weighted-average assumptions used to determine benefit obligations at June 30: Discount rate 3.40 – % 3.00 – % 3.70 – % .50 – % .25 – % .75 – % 3.70 – % 3.50 – % 4.25 – % Rate of compensation increase 3.00 – % 3.00 – % 3.00 – % 1.00 – % 0 – % 0 – % N/A N/A N/A Weighted-average assumptions used to determine net periodic benefit cost for the year ended June 30: Discount rate 3.00 – % 3.70 – % 3.60 – % .25 – % .75 – % .50 – % 3.50 – % 4.25 – % 4.10 – % Expected return on assets % % % 1.50 – 2.00 – 2.00 – % % % % % % Rate of compensation increase 3.00 – % 3.00 – % 3.00 – % 0 – % 0 – % 1.00 – % N/A N/A N/A The discount rate for each plan used for determining future net periodic benefit cost is based on a review of highly rated long-term bonds. The discount rate for the Company’s Domestic Plans is based on a bond portfolio that includes only long-term bonds with an Aa rating, or equivalent, from a major rating agency. The Company used an above-mean yield curve which represents an estimate of the effective settlement rate of the obligation, and the timing and amount of cash flows related to the bonds included in this portfolio are expected to match the estimated defined benefit payment streams of the Company’s Domestic Plans. For the Company’s international plans, the discount rate in a particular country was principally determined based on a yield curve constructed from high quality corporate bonds in each country, with the resulting portfolio having a duration matching that particular plan. In determining the long-term rate of return for a plan, the Company considers the historical rates of return, the nature of the plan’s investments and an expectation for the plan’s investment strategies. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The assumed weighted-average health care cost trend rate for the coming year is 7.33% while the weighted-average ultimate trend rate of 4.53% is expected to be reached in approximately 19 years. A 100 basis-point change in assumed health care cost trend rates for fiscal 2017 would have had the following effects: (In millions) 100 Basis-Point 100 Basis-Point Effect on total service and interest costs $ $ ) Effect on post-retirement benefit obligations $ $ ) Amounts recognized in AOCI (before tax) as of June 30, 2017 are as follows: Pension Plans Other than (In millions) U.S. International Post-retirement Total Net actuarial losses, beginning of year $ $ $ $ Actuarial gains recognized ) ) ) ) Amortization included in net periodic benefit cost ) ) ) ) Net actuarial losses, end of year Net prior service cost, beginning of year — Amortization included in net periodic benefit cost ) ) — ) Net prior service cost, end of year ) Total amounts recognized in AOCI $ $ $ $ Amounts in AOCI expected to be amortized as components of net periodic benefit cost during fiscal 2018 are as follows: Pension Plans Other than (In millions) U.S. International Post-retirement Net prior service cost $ $ — $ Net actuarial losses $ $ $ — The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the Company’s pension plans at June 30 are as follows: Pension Plans Retirement Growth Restoration International (In millions) 2017 2016 2017 2016 2017 2016 Projected benefit obligation $ $ $ $ $ $ Accumulated benefit obligation $ $ $ $ $ $ Fair value of plan assets $ $ $ — $ — $ $ International pension plans with projected benefit obligations in excess of the plans’ assets had aggregate projected benefit obligations of $281 million and $330 million and aggregate fair value of plan assets of $137 million and $165 million at June 30, 2017 and 2016, respectively. International pension plans with accumulated benefit obligations in excess of the plans’ assets had aggregate accumulated benefit obligations of $220 million and $226 million and aggregate fair value of plan assets of $103 million and $93 million at June 30, 2017 and 2016, respectively. The expected cash flows for the Company’s pension and post-retirement plans are as follows: Pension Plans Other than (In millions) U.S. International Post-retirement Expected employer contributions for year ending June 30, 2018 $ — $ $ — Expected benefit payments for year ending June 30, 2018 2019 2020 2021 2022 Years 2023 – 2027 Plan Assets The Company’s investment strategy for its pension and post-retirement plan assets is to maintain a diversified portfolio of asset classes with the primary goal of meeting long-term cash requirements as they become due. Assets are primarily invested in diversified funds that hold equity or debt securities to maintain the security of the funds while maximizing the returns within each plan’s investment policy. The investment policy for each plan specifies the type of investment vehicles appropriate for the plan, asset allocation guidelines, criteria for selection of investment managers and procedures to monitor overall investment performance, as well as investment manager performance. The Company’s target asset allocation at June 30, 2017 is as follows: Pension Plans Other than U.S. International Post-retirement Equity % % % Debt securities % % % Other % % % % % % The following is a description of the valuation methodologies used for plan assets measured at fair 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 and time deposits. The carrying amount approximates fair value, primarily because of the short maturity of cash equivalent instruments. Short-term investment funds – The fair values are determined using the Net Asset Value (“NAV”) provided by the administrator of the fund when the Company has the ability to redeem the assets at the measurement date. These assets are classified within Level 2 of the valuation hierarchy. For some assets the Company is utilizing the NAV as a practical expedient and those investments are not included in the valuation hierarchy. Government and agency securities – The fair values are determined using third-party pricing services using market prices or prices derived from observable market inputs such as benchmark curves, broker/dealer quotes, and other industry and economic factors. These investments are classified within Level 2 of the valuation hierarchy. Debt instruments – The fair values are determined using third-party pricing services using market prices or prices derived from observable market inputs such as credit spreads, broker/dealer quotes, benchmark curves and other industry and economic factors. These investments are classified within Level 2 of the valuation hierarchy. Equity securities — The fair values are determined using the closing price reported on a major market where the individual securities are traded. These investments are classified within Level 1 of the valuation hierarchy. Commingled funds – The fair values of publicly traded funds are based upon market quotes and are classified within Level 1 of the valuation hierarchy. The fair values for non-publicly traded funds are determined using the NAV provided by the administrator of the fund when the Company has the ability to redeem the assets at the measurement date. These assets are classified within Level 2 of the valuation hierarchy. When the Company is utilizing the NAV as a practical expedient those investments are not included in the valuation hierarchy. These investments have monthly redemption frequencies with redemption notice periods ranging from 10 to 30 days. There are no unfunded commitments related to these investments. Insurance contracts – The fair values are based on negotiated value and the underlying investments held in separate account portfolios, as well as the consideration of the creditworthiness of the issuer. The underlying investments are primarily government, asset-backed and fixed income securities. Insurance contracts are generally classified as Level 3 as there are no quoted prices or other observable inputs for pricing. Interests in limited partnerships and hedge fund investments – The fair values are determined using the NAV provided by the administrator as a practical expedient, and therefore these investments are not included in the valuation hierarchy. These investments have monthly and quarterly redemption frequencies with redemption notice periods ranging from 30 to 90 days. Unfunded commitments related to these investments are de minimis. The following table presents the fair values of the Company’s pension and post-retirement plan assets by asset category as of June 30, 2017: (In millions) Level 1 Level 2 Level 3 Assets (1) Total Cash and cash equivalents $ $ — $ — $ — $ Short term investment funds — — Government and agency securities — — — Debt instruments — — — Commingled funds — Insurance contracts — — — Limited partnerships and hedge fund investments — — — Total $ $ $ $ $ _________________ (1) Per the fiscal 2017 adoption of new accounting guidance issued by the FASB, certain assets that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The following table presents the fair values of the Company’s pension and post-retirement plan assets by asset category as of June 30, 2016: (In millions) Level 1 Level 2 Level 3 Assets (1) Total Cash and cash equivalents $ $ — $ — $ — $ Short term investment funds — — Government and agency securities — — — Equity securities — — — Debt instruments — — — Commingled funds — Insurance contracts — — — Limited partnerships and hedge fund investments — — — Total $ $ $ $ $ _________________ (1) Per the fiscal 2017 adoption of new accounting guidance issued by the FASB, certain assets that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The following table presents the changes in Level 3 plan assets for fiscal 2017: (In millions) Insurance Contracts Balance as of June 30, 2016 $ Actual return on plan assets: Relating to assets still held at the reporting date Purchases, sales, issuances and settlements, net Foreign exchange impact Balance as of June 30, 2017 $ 401(k) Savings Plan (U.S.) The Company’s 401(k) Savings Plan (“Savings Plan”) is a contributory defined contribution plan covering substantially all regular U.S. employees who have completed the hours and service requirements, as defined by the plan document. Regular full-time employees are eligible to participate in the Savings Plan thirty days following their date of hire. The Savings Plan is subject to the applicable provisions of ERISA. The Company matches a portion of the participant’s contributions after one year of service under a predetermined formula based on the participant’s contribution level. The Company’s contributions were $39 million, $37 million and $35 million for fiscal 2017, 2016 and 2015, respectively. Shares of the Company’s Class A Common Stock are not an investment option in the Savings Plan and the Company does not use such shares to match participants’ contributions. Deferred Compensation The Company has agreements with certain employees and outside directors who defer compensation. The Company accrues for such compensation, and either interest thereon or for the change in the value of cash units. The amounts included in the accompanying consolidated balance sheets under these plans were $75 million and $71 million as of June 30, 2017 and 2016, respectively. The expense for fiscal 2017, 2016 and 2015 was $6 million, $6 million and $9 million, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Jun. 30, 2017
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 15 – COMMITMENTS AND CONTINGENCIES Contractual Obligations The following table summarizes scheduled maturities of the Company’s contractual obligations for which cash flows are fixed and determinable as of June 30, 2017: Payments Due in Fiscal (In millions) Total 2018 2019 2020 2021 2022 Thereafter Debt service (1) $ $ $ $ $ $ $ Operating lease commitments (2) Unconditional purchase obligations (3) Gross unrecognized tax benefits and interest – current (4) — — — — — Total contractual obligations $ $ $ $ $ $ $ (1) Includes long-term and current debt and the related projected interest costs, and to a lesser extent, capital lease commitments. Interest costs on long-term and current debt in fiscal 2018, 2019, 2020, 2021, 2022 and thereafter are projected to be $123 million, $117 million, $117 million, $108 million, $101 million and $1,645 million, respectively. Projected interest costs on variable rate instruments were calculated using market rates at June 30, 2017. (2) Minimum operating lease commitments only include base rent. Certain leases provide for contingent rents that are not measurable at inception and primarily include rents based on a percentage of sales in excess of stipulated levels, as well as common area maintenance. These amounts are excluded from minimum operating lease commitments and are included in the determination of total rent expense when it is probable that the expense has been incurred and the amount is reasonably measurable. Such amounts have not been material to total rent expense. Total rental expense included in the accompanying consolidated statements of earnings was $457 million, $442 million and $402 million in fiscal 2017, 2016 and 2015, respectively. In July 2017, the Company entered into new lease commitments for its principal offices at the same location. The Company’s rental obligations under the new leases will commence in fiscal 2020 and expire in fiscal 2040. Minimum lease obligations pursuant to the leases in fiscal 2020, 2021, 2022 and thereafter are $5 million, $24 million, $32 million and $597 million, respectively. (3) Unconditional purchase obligations primarily include: inventory commitments, additional purchase price payable and contingent consideration which resulted from the fiscal 2016 and 2015 acquisitions, earn-out payments related to the acquisition of Bobbi Brown, royalty payments pursuant to license agreements, advertising commitments, capital improvement commitments, non-discretionary planned funding of pension and other post-retirement benefit obligations and commitments pursuant to executive compensation arrangements. Future contingent consideration, earn-out payments and royalty and advertising commitments were estimated based on planned future sales for the term that was in effect at June 30, 2017, without consideration for potential renewal periods. (4) Refer to Note 9 – Income Taxes for information regarding unrecognized tax benefits. As of June 30, 2017, the noncurrent portion of the Company’s unrecognized tax benefits, including related accrued interest and penalties was $73 million. At this time, the settlement period for the noncurrent portion of the unrecognized tax benefits, including related accrued interest and penalties, cannot be determined and therefore was not included. 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.

COMMON STOCK

COMMON STOCK	12 Months Ended
	Jun. 30, 2017
COMMON STOCK
COMMON STOCK	NOTE 16 – COMMON STOCK As of June 30, 2017, the Company’s authorized common stock consists of 1,300 million shares of Class A Common Stock, par value $.01 per share, and 304 million shares of Class B Common Stock, par value $.01 per share. Class B Common Stock is convertible into Class A Common Stock, in whole or in part, at any time and from time to time at the option of the holder, on the basis of one share of Class A Common Stock for each share of Class B Common Stock converted. Holders of the Company’s Class A Common Stock are entitled to one vote per share and holders of the Company’s Class B Common Stock are entitled to ten votes per share. Information about the Company’s common stock outstanding is as follows: (Shares in thousands) Class A Class B Balance at June 30, 2014 Acquisition of treasury stock ) — Conversion of Class B to Class A ) Stock-based compensation — Balance at June 30, 2015 Acquisition of treasury stock ) — Conversion of Class B to Class A ) Stock-based compensation — Balance at June 30, 2016 Acquisition of treasury stock ) — Conversion of Class B to Class A ) Stock-based compensation — Balance at June 30, 2017 The Company is authorized by the Board of Directors to repurchase Class A Common Stock in the open market or in privately negotiated transactions, depending on market conditions and other factors. As of June 30, 2017, the remaining authorized share repurchase balance was 14.5 million shares. Subsequent to June 30, 2017 and as of August 18, 2017, the Company purchased approximately 0.5 million additional shares of its Class A Common Stock for $45 million pursuant to its share repurchase program. The following is a summary of cash dividends declared per share on the Company’s Class A and Class B Common Stock during the year ended June 30, 2017: Date Declared Record Date Payable Date Amount per Share August 18, 2016 August 31, 2016 September 15, 2016 $.30 November 1, 2016 November 30, 2016 December 15, 2016 $.34 February 1, 2017 February 28, 2017 March 15, 2017 $.34 May 2, 2017 May 31, 2017 June 15, 2017 $.34 On August 17, 2017, a dividend was declared in the amount of $.34 per share on the Company’s Class A and Class B Common Stock. The dividend is payable in cash on September 15, 2017 to stockholders of record at the close of business on August 31, 2017.

STOCK PROGRAMS

STOCK PROGRAMS	12 Months Ended
	Jun. 30, 2017
STOCK PROGRAMS
STOCK PROGRAMS	NOTE 17 – STOCK PROGRAMS As of June 30, 2017, the Company has two active equity compensation plans which include the Amended and Restated Fiscal 2002 Share Incentive Plan (the “Fiscal 2002 Plan”) and the Amended and Restated Non-Employee Director Share Incentive Plan (collectively, the “Plans”). These Plans currently provide for the issuance of approximately 76.8 million shares of Class A Common Stock, which consist of shares originally provided for and shares transferred to the Fiscal 2002 Plan from other inactive plans and employment agreements, to be granted in the form of stock-based awards to key employees, consultants and non-employee directors of the Company. As of June 30, 2017, approximately 11.9 million shares of Class A Common Stock were reserved and available to be granted pursuant to these Plans. The Company may satisfy the obligation of its stock-based compensation awards with either new or treasury shares. The Company’s equity compensation awards include stock options, restricted stock units (“RSU”), performance share units (“PSU”), PSUs based on total stockholder return, long-term PSUs and share units. 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: Year Ended June 30 (In millions) 2017 2016 2015 Compensation expense $ $ $ Income tax benefit As of June 30, 2017, the total unrecognized compensation cost related to unvested stock-based awards was $170 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 June 30, 2017 and changes during the fiscal year then ended: (Shares in thousands) Shares Weighted- Aggregate (1) (in millions) Weighted-Average Outstanding at June 30, 2016 $ Granted at fair value Exercised ) Expired ) Forfeited ) Outstanding at June 30, 2017 $ Vested and expected to vest at June 30, 2017 $ Exercisable at June 30, 2017 $ _____________________________ (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 exercise period for all stock options generally may not exceed ten years from the date of grant. Stock option grants to individuals generally become exercisable in three substantively equal tranches over a service period of up to four years. The Company attributes the value of option awards on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. 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: Year Ended June 30 (In millions, except per share data) 2017 2016 2015 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: Year Ended June 30 2017 2016 2015 Weighted-average expected stock-price volatility 26% 27% 28% Weighted-average expected option life 7 years 7 years 7 years Average risk-free interest rate 1.5% 1.9% 2.2% Average dividend yield 1.3% 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 1.6 million RSUs during fiscal 2017 which, at the time of grant, were scheduled to vest as follows: 0.5 million in fiscal 2018, 0.5 million in fiscal 2019, 0.5 million in fiscal 2020 and 0.1 million in fiscal 2022. Vesting of RSUs granted is generally subject to the continued employment of the grantees. RSUs are accompanied by dividend equivalent rights, payable upon settlement of the RSU either in cash or shares (based on the terms of the particular award) upon settlement of the RSU 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 June 30, 2017 and activity during the fiscal year then ended: Weighted-Average Grant Date (Shares in thousands) Shares Fair Value Per Share Nonvested at June 30, 2016 $ Granted Dividend equivalents Vested ) Forfeited ) Nonvested at June 30, 2017 Performance Share Units During fiscal 2017, the Company granted PSUs with a target payout of approximately 0.3 million shares with a grant date fair value per share of $89.47, 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, 2020, all subject to the continued employment or retirement of the grantees. In January 2017, the Company granted PSUs with a target payout of approximately 0.3 million shares with a grant date fair value per share of $80.79, which will be settled in stock subject to the achievement of certain net sales and net operating profit goals of a subsidiary of the Company for the fiscal year ending June 30, 2020. In January 2017, the Company also granted PSUs with a target payout of approximately 0.2 million shares with a grant date fair value per share of $80.79, which will be settled in stock subject to the achievement of certain net sales and net operating profit goals of a subsidiary of the Company for the fiscal year ending June 30, 2022. Settlement of all PSUs will be made pursuant to a range of opportunities relative to the target goals and, as such, the compensation cost of the PSU is subject to adjustment based upon the attainability of these target goals. No settlement will occur for results below the applicable minimum threshold of a target and additional shares shall be issued if performance exceeds the targeted performance goals. PSUs are accompanied by dividend equivalent rights that will be payable in cash upon settlement of the PSU and, as such, were valued at the closing market value of the Company’s Class A Common Stock on the date of grant. These awards are subject to the provisions of the agreement under which the PSUs are granted. The PSUs generally vest at the end of the performance period. Approximately 0.2 million shares of Class A Common Stock are anticipated to be issued, relative to the target goals set at the time of issuance, in settlement of the 0.3 million PSUs that vested as of June 30, 2017. In September 2016, approximately 0.3 million 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 issuance, in settlement of 0.3 million PSUs which vested as of June 30, 2016. The following is a summary of the status of the Company’s PSUs as of June 30, 2017 and activity during the fiscal year then ended: Weighted-Average Grant Date (Shares in thousands) Shares Fair Value Per Share Nonvested at June 30, 2016 $ Granted Vested ) Forfeited ) Nonvested at June 30, 2017 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 of June 30, 2015, 2016, and 2017. Settlement of the PSUs are 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. 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 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. Through June 30, 2017, 92,431 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 periods ended June 30, 2016 and 2015. In August 2017, an additional 30,267 shares of the Company’s Class A Common Stock are anticipated to be issued, and related dividends to be paid, in accordance with the terms of the grant, related to the performance period ended June 30, 2017. 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. Since the Company achieved positive Net Earnings, as defined in the PSU award agreement, for the fiscal year ended June 30, 2016, performance and vesting of each tranche will be based on the Company achieving positive Cumulative Operating Income, as defined in the PSU 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 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. During January 2016, the Company granted PSUs to an executive of the Company with an aggregate target payout of 71,694 shares (in three tranches of 23,898 each) of the Company’s Class A Common Stock. Since the Company achieved positive Net Earnings, as defined in the PSU award agreement, for the fiscal year ended June 30, 2017, the vesting of each tranche will generally be subject to continued employment through the end of relative service periods that end on January 29, 2018, 2019 and 2020. Payment with respect to a tranche will be made within 30 business days of the date on which the PSUs vest. The PSUs are accompanied by dividend equivalent rights that will be payable in cash at the same time as the payment of shares of the Company’s Class A Common Stock. The grant date fair value of these PSUs of $6 million was estimated using the closing stock price of the Company’s Class A Common Stock as of January 28, 2016, the date of grant. Share Units The Company grants share units to certain non-employee directors under the Amended and Restated Non-Employee Director Share Incentive Plan. The share units are convertible into shares of the Company’s Class A Common Stock as provided for in that plan. Share units are accompanied by dividend equivalent rights that are converted to additional share units when such dividends are declared. The following is a summary of the status of the Company’s share units as of June 30, 2017 and activity during the fiscal year then ended: Weighted-Average Grant Date (Shares in thousands) Shares Fair Value Per Share Outstanding at June 30, 2016 $ Granted Dividend equivalents Converted — — Outstanding at June 30, 2017 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 $2 million, $2 million and $3 million as compensation expense to reflect additional deferrals and the change in the market value for fiscal 2017, 2016 and 2015, respectively.

NET EARNINGS ATTRIBUTABLE TO TH

NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE	12 Months Ended
	Jun. 30, 2017
NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE
NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE	NOTE 18 – NET EARNINGS ATTRIBUTABLE TO THE ESTÉE LAUDER COMPANIES INC. PER COMMON SHARE 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 numerators and denominators of the basic and diluted EPS computations is as follows: Year Ended June 30 (In millions, except per share data) 2017 2016 2015 Numerator: Net earnings attributable to The Estée Lauder Companies Inc. $ $ $ Denominator: Weighted-average common shares outstanding – Basic Effect of dilutive stock options Effect of PSUs Effect of RSUs Effect of performance share units 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 June 30, 2017, there were 1.8 million stock options excluded from the computation of diluted EPS because their inclusion would be anti-dilutive. As of June 30, 2016, there were 0.2 million stock options excluded from the computation of diluted EPS because their inclusion would be anti-dilutive. As of June 30, 2015, there were no anti-dilutive stock options to be excluded from the computation of diluted EPS. As of June 30, 2017, 2016 and 2015, 1.0 million, 0.5 million and 0.6 million, respectively, of 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 17 – Stock Programs .

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	12 Months Ended
	Jun. 30, 2017
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 19 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of AOCI included in the accompanying consolidated balance sheets consist of the following: Year Ended June 30 (In millions) 2017 2016 2015 Net unrealized investment gains, beginning of year $ $ — $ Unrealized investment gains (losses) ) Reclassification to earnings during the year (1) — — ) Net unrealized investment gains (losses), end of year ) — Net derivative instruments, beginning of year ) Gain (loss) on derivative instruments ) Benefit (provision) for deferred income taxes ) ) Reclassification to earnings during the year: Foreign currency forward contracts (2) ) ) ) Interest rate-related derivatives (3) ) ) — Benefit for deferred income taxes on reclassification (4) Net derivative instruments, end of year ) Net pension and post-retirement adjustments, beginning of year ) ) ) Changes in plan assets and benefit obligations: Net actuarial gains (losses) recognized ) ) Translation adjustments — Benefit (provision) for deferred income taxes ) Amortization, settlements and curtailments included in net periodic benefit cost (5) : Net actuarial losses Net prior service cost Provision for deferred income taxes on reclassification (4) ) ) ) Net pension and post-retirement adjustments, end of year ) ) ) Cumulative translation adjustments, beginning of year ) ) Translation adjustments ) ) Provision for deferred income taxes — ) ) Cumulative translation adjustments, end of year ) ) ) Accumulated other comprehensive loss $ ) $ ) $ ) (1) Amounts recorded in Interest income and investment income, net in the accompanying consolidated statements of earnings. (2) For the year ended June 30, 2017, $10 million and $30 million were recorded in Cost of Sales and Selling, general and administrative expenses, respectively, in the accompanying consolidated statements of earnings. For the year ended June 30, 2016, $17 million and $48 million were recorded in Cost of Sales and Selling, general and administrative expenses, respectively, in the accompanying consolidated statements of earnings. For the year ended June 30, 2015, $9 million and $29 million were recorded in Cost of Sales and Selling, general and administrative expenses, respectively, in the accompanying consolidated statements of earnings. (3) Amounts recorded in Interest expense in the accompanying consolidated statements of earnings. (4) Amounts recorded in Provision for income taxes in the accompanying consolidated statements of earnings. (5) See Note 14 – Pension, Deferred Compensation and Post-Retirement Benefit Plans for additional information.

STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS	12 Months Ended
	Jun. 30, 2017
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS	NOTE 20 – STATEMENT OF CASH FLOWS Supplemental cash flow information is as follows: Year Ended June 30 (In millions) 2017 2016 2015 Cash: Cash paid during the year for interest $ $ $ Cash paid during the year for income taxes $ $ $ Non-cash investing and financing activities: Capital lease and asset retirement obligations incurred $ $ $ Pending purchase price true-up payment $ — $ — $ Non-cash purchases (sales) of short- and long-term investments, net $ $ ) $ Property, plant and equipment accrued but unpaid $ $ $

SEGMENT DATA AND RELATED INFORM

SEGMENT DATA AND RELATED INFORMATION	12 Months Ended
	Jun. 30, 2017
SEGMENT DATA AND RELATED INFORMATION
SEGMENT DATA AND RELATED INFORMATION	NOTE 21 – SEGMENT DATA AND RELATED INFORMATION 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. As a result of the similarities in the manufacturing, marketing and distribution processes for all of the Company’s products, much of the information provided in the consolidated financial statements is similar to, or the same as, that reviewed on a regular basis by the Chief Executive. Although the Company operates in one business segment, beauty products, management also evaluates performance on a product category basis. While the Company’s results of operations are also reviewed on a consolidated basis, the Chief Executive reviews data segmented on a basis that facilitates comparison to industry statistics. Accordingly, net sales, depreciation and amortization, and operating income are available with respect to the manufacture and distribution of skin care, makeup, fragrance, hair care and other products. These product categories meet the definition of operating segments and, accordingly, additional financial data are provided below. The “other” segment includes the sales and related results of ancillary products and services that do not fit the definition of skin care, makeup, fragrance and hair care. Product category performance is measured based upon net sales before returns associated with restructuring and other activities, and earnings before income taxes, interest expense, interest income and investment income, net, and charges associated with restructuring and other activities. Returns and charges associated with restructuring and other activities are not allocated to the product categories because they result from activities that are deemed a Company-wide initiative to redesign, resize and reorganize select corporate functions and go-to-market structures, and to transform and modernize the Company’s GTI. The accounting policies for the Company’s reportable segments are the same as those described in the summary of significant accounting policies, except for depreciation and amortization charges, which are allocated, primarily, based upon net sales. 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. Year Ended June 30 (In millions) 2017 2016 2015 PRODUCT CATEGORY DATA Net Sales: Skin Care $ $ $ Makeup Fragrance Hair Care Other Returns associated with restructuring and other activities ) ) — $ $ $ Depreciation and Amortization: Skin Care $ $ $ Makeup Fragrance Hair Care Other $ $ $ Operating Income (Loss) before charges associated with restructuring and other activities: Skin Care $ $ $ Makeup Fragrance Hair Care Other ) Reconciliation: Charges associated with restructuring and other activities ) ) — Interest expense ) ) ) Interest income and investment income, net Earnings before income taxes $ $ $ Year Ended or at June 30 (In millions) 2017 2016 2015 GEOGRAPHIC DATA Net Sales: The Americas $ $ $ Europe, the Middle East & Africa Asia/Pacific Returns associated with restructuring and other activities ) ) — $ $ $ Operating Income (Loss): The Americas $ $ $ Europe, the Middle East & Africa Asia/Pacific Charges associated with restructuring and other activities ) ) — $ $ $ Total Assets: The Americas $ $ $ Europe, the Middle East & Africa Asia/Pacific $ $ $ Long-Lived Assets (property, plant and equipment, net): The Americas $ $ $ Europe, the Middle East & Africa Asia/Pacific $ $ $ Net sales are predominantly attributed to a country within a geographic segment based on the location of the customer. The net sales from the Company’s travel retail business are included in the Europe, the Middle East & Africa region. The Company is domiciled in the United States. Net sales in the United States in fiscal 2017, 2016 and 2015 were $4,238 million, $4,151 million and $3,972 million, respectively. The Company’s long-lived assets in the United States at June 30, 2017, 2016 and 2015 were $869 million, $862 million and $856 million, respectively.

UNAUDITED QUARTERLY FINANCIAL D

UNAUDITED QUARTERLY FINANCIAL DATA	12 Months Ended
	Jun. 30, 2017
UNAUDITED QUARTERLY FINANCIAL DATA
UNAUDITED QUARTERLY FINANCIAL DATA	NOTE 22 – UNAUDITED QUARTERLY FINANCIAL DATA The following summarizes the unaudited quarterly operating results of the Company for fiscal 2017 and 2016: Quarter Ended (In millions, except per share data) September 30 (1) December 31 (2) March 31 (3) June 30 (4) Total Year Fiscal 2017 Net Sales $ $ $ $ $ Gross Profit Operating Income Net Earnings Attributable to The Estée Lauder Companies Inc. Net earnings attributable to The Estée Lauder Companies Inc. per common share: Basic .80 .81 .62 Diluted .79 .80 .61 Fiscal 2016 Net Sales $ $ $ $ $ Gross Profit Operating Income Net Earnings Attributable to The Estée Lauder Companies Inc. Net earnings attributable to The Estée Lauder Companies Inc. per common share: Basic .83 .72 .25 Diluted .82 .71 .25 (1) Fiscal 2017 first quarter results include charges associated with restructuring and other activities of $(31) million ($(20) million after tax, or $(.05) per diluted common share). (2) Fiscal 2017 second quarter results include charges associated with restructuring and other activities of $(41) million ($(26) million after tax, or $(.07) per diluted common share). Fiscal 2016 second quarter results include charges associated with restructuring and other activities of $(19) million ($(12) million after tax, or $(.03) per diluted common share). (3) Fiscal 2017 third quarter results include charges associated with restructuring and other activities of $(62) million ($(42) million after tax, or $(.11) per diluted common share). Fiscal 2016 third quarter results include charges associated with restructuring and other activities of $(15) million ($(10) million after tax, or $(.02) per diluted common share). (4) Fiscal 2017 fourth quarter results include charges associated with restructuring and other activities of $(78) million ($(55) million after tax, or $(.15) per diluted common share), the changes in fair value of contingent consideration of $58 million ($42 million after tax, or $.11 per diluted common share), goodwill and other intangible asset impairments of $(31) million ($(23) million after tax, or $(.06) per diluted common share) and the China deferred tax asset valuation allowance reversal of $75 million, or $.20 per diluted common share. Fiscal 2016 fourth quarter results include charges associated with restructuring and other activities of $(100) million ($(68) million after tax, or $(.18) per diluted common share).

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Jun. 30, 2017
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	THE ESTÉE LAUDER COMPANIES INC. SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Three Years Ended June 30, 2017 (In millions) Additions Description Balance (1) (2) Deductions Balance Reserves deducted in the balance sheet from the assets to which they apply: Allowance for doubtful accounts and customer deductions: Year ended June 30, 2017 $ $ $ — $ (a) $ Year ended June 30, 2016 $ $ $ — $ (a) $ Year ended June 30, 2015 $ $ $ — $ (a) $ Sales return accrual: Year ended June 30, 2017 $ $ $ — $ (b) $ Year ended June 30, 2016 $ $ $ — $ (b) $ Year ended June 30, 2015 $ $ $ — $ (b) $ Deferred tax valuation allowance: Year ended June 30, 2017 $ $ $ — $ $ Year ended June 30, 2016 $ $ $ — $ $ Year ended June 30, 2015 $ $ $ — $ $ Accrued restructuring initiatives: Year ended June 30, 2017 $ $ $ — $ $ Year ended June 30, 2016 $ — $ $ — $ $ Year ended June 30, 2015 $ — $ — $ — $ — $ — (a) Includes amounts written-off, net of recoveries. (b) Represents actual returns.

SUMMARY OF SIGNIFICANT ACCOUN31

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation	Principles of Consolidation 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. Certain amounts in the consolidated financial statements of prior years have been reclassified to conform to current year presentation.
Management Estimates	Management Estimates The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles (“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. 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 year-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 $32 million, $(109) million and $(322) million, net of tax, in fiscal 2017, 2016 and 2015, respectively. For the Company’s Venezuelan and Ukrainian subsidiaries operating in highly inflationary economies, 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. These subsidiaries are not material to the Company’s consolidated financial statements or liquidity in fiscal 2017, 2016 and 2015. 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 on foreign currency transactions of $15 million, $16 million and $4 million in fiscal 2017, 2016 and 2015, respectively.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include $434 million and $205 million of short-term time deposits at June 30, 2017 and 2016, respectively. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents.
Investments	Investments The Company’s investment objectives include capital preservation, maintaining adequate liquidity, asset diversification, and achieving appropriate returns within the guidelines set forth in the Company’s investment policy. These investments are classified as available-for-sale, with any temporary difference between the cost and fair value of an investment presented as a separate component of accumulated other comprehensive income (loss) (“AOCI”). See Note 13 – Fair Value Measurements for further information about how the fair values of investments are determined. Investments in the common stock of privately-held companies in which the Company has significant influence, but less than a controlling financial interest, are accounted for under the equity method of accounting. The Company accounts for all other investments using the cost-method of accounting. These investments were not material to the Company’s consolidated financial statements as of June 30, 2017 and 2016 and are included in Long-term investments in the accompanying consolidated balance sheets. The Company evaluates investments held in unrealized loss positions for other-than-temporary impairment on a quarterly basis. Such evaluation involves a variety of considerations, including assessments of the risks and uncertainties associated with general economic conditions and distinct conditions affecting specific issuers. Factors considered by the Company include, but are not limited to (i) the length of time and extent the security has been in a material loss position; (ii) the financial condition and creditworthiness of the issuer; (iii) future economic conditions and market forecasts related to the issuer’s industry, sector, or geography; (iv) the Company’s intent and ability to retain its investment until maturity or for a period of time sufficient to allow for recovery of market value; and (v) an assessment of whether it is more likely than not that the Company will be required to sell its investment before recovery of market value.
Accounts Receivable	Accounts Receivable Accounts receivable is stated net of the allowance for doubtful accounts and customer deductions totaling $30 million and $24 million as of June 30, 2017 and 2016, respectively. This reserve is based upon the evaluation of accounts receivable aging, specific exposures and historical trends.
Inventory and Promotional Merchandise	Inventory and Promotional Merchandise Inventory and promotional merchandise only includes inventory considered saleable or usable in future periods, and is stated at the lower of cost or fair-market value, with cost being based on standard cost and production variances, which approximate actual cost on the first-in, first-out method. Cost components include raw materials, componentry, direct labor and overhead (e.g., indirect labor, utilities, depreciation, purchasing, receiving, inspection and warehousing) as well as inbound freight. M anufacturing overhead is allocated to the cost of inventory based on the normal production capacity . Unallocated overhead during periods of abnormally low production levels are recognized as cost of sales in the period in which they are incurred. Promotional merchandise is charged to expense at the time the merchandise is shipped to the Company’s customers. Included in inventory and promotional merchandise is an inventory obsolescence reserve, which represents the difference between the cost of the inventory and its estimated realizable value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends and requirements to support forecasted sales. In addition, and as necessary, specific reserves for future known or anticipated events may be established.
Derivative Financial Instruments	Derivative Financial Instruments The Company’s derivative financial instruments are recorded as either assets or liabilities on the balance sheet and measured at fair value. All derivatives are (i) designated as a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair-value” hedge), (ii) designated as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash-flow” hedge), or (iii) not designated as a hedging instrument. Changes in the fair value of a derivative that is designated and qualifies as a fair-value hedge that is highly effective are recorded in current-period earnings, along with the loss or gain on the hedged asset or liability that is attributable to the hedged risk (including losses or gains on unrecognized firm commitments). Changes in the fair value of a derivative that is designated and qualifies as a cash-flow hedge of a forecasted transaction that is highly effective are recorded in OCI. Gains and losses deferred in OCI are then recognized in current-period earnings when earnings are affected by the variability of cash flows of the hedged forecasted transaction (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). Changes in the fair value of derivative instruments not designated as hedging instruments are reported in current-period earnings.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment, including leasehold and other improvements that extend an asset’s useful life or productive capabilities, are carried at cost less accumulated depreciation and amortization. Costs incurred for computer software developed or obtained for internal use are capitalized during the application development stage and expensed as incurred during the preliminary project and post-implementation stages. For financial statement purposes, depreciation is provided principally on the straight-line method over the estimated useful lives of the assets ranging from 3 to 40 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lives of the respective leases or the expected useful lives of those improvements.
Goodwill and Other Indefinite-lived Intangible Assets	Goodwill and Other Indefinite-lived Intangible Assets Goodwill is calculated as the excess of the cost of purchased businesses over the fair value of their underlying net assets. Other indefinite-lived intangible assets principally consist of trademarks. Goodwill and other indefinite-lived intangible assets are not amortized. The Company assesses goodwill and other indefinite-lived intangible assets at least annually for impairment as of the beginning of the fiscal fourth quarter or more frequently if certain events or circumstances exist. The Company tests goodwill for impairment at the reporting unit level, which is one level below the Company’s operating segments. The Company identifies its reporting units by assessing whether the components of its operating segments constitute businesses for which discrete financial information is available and management of each operating segment regularly reviews the operating results of those components. The Company makes certain judgments and assumptions in allocating assets and liabilities to determine carrying values for its reporting units. When testing goodwill for impairment, the Company has the option of first performing a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test. If necessary, the quantitative impairment test is performed in two steps: (i) the Company determines if an indication of impairment exists by comparing the fair value of a reporting unit with its carrying value, and (ii) if there is an impairment, the Company measures the amount of impairment loss by comparing the implied fair value of goodwill with the carrying amount of that goodwill. When testing other indefinite-lived intangible assets for impairment, the Company also has the option of first performing a qualitative assessment to determine whether it is more-likely-than-not that the indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform a quantitative test. The quantitative impairment test for indefinite-lived intangible assets encompasses calculating the fair value of an indefinite-lived intangible asset and comparing the fair value to its carrying value. If the carrying value exceeds the fair value, an impairment charge is recorded. For fiscal 2017 and 2016, the Company elected to perform the qualitative assessment for certain of its reporting units and indefinite-lived intangible assets. This qualitative assessment included the review of certain macroeconomic factors and entity-specific qualitative factors to determine if it was more-likely-than-not that the fair values of its reporting units were below carrying value. The Company considered macroeconomic factors including the global economic growth, general macroeconomic trends for the markets in which the reporting units operate and the intangible assets are employed, and the growth of the global prestige beauty industry. In addition to these macroeconomic factors, among other things, the Company considered the reporting units’ current results and forecasts, any changes in the nature of the business, any significant legal, regulatory, contractual, political or other business climate factors, changes in the industry/competitive environment, changes in the composition or carrying amount of net assets and its intention to sell or dispose of a reporting unit or cease the use of a trademark. For the Company’s other reporting units and other indefinite-lived intangible assets, including those acquired during and subsequent to fiscal 2015, a quantitative assessment was performed. The Company engaged third-party valuation specialists and used industry accepted valuation models and criteria that were reviewed and approved by various levels of management. To determine the fair value of the reporting units, the Company used an equal weighting of the income and market approaches. Under the income approach, we determined fair value using a discounted cash flow method, projecting future cash flows of each reporting unit, as well as a terminal value, and discounting such cash flows at a rate of return that reflected the relative risk of the cash flows. Under the market approach, we utilized market multiples from publicly traded companies with similar operating and investment characteristics as the reporting unit. The key estimates and factors used in these two approaches include revenue growth rates and profit margins based on internal forecasts, terminal value, the weighted-average cost of capital used to discount future cash flows and comparable market multiples. To determine the fair value of other indefinite-lived intangible assets, we use an income approach, the relief-from-royalty method. This method assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset.
Long-Lived Assets	Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. When such events or changes in circumstances occur, a recoverability test is performed comparing projected undiscounted cash flows from the use and eventual disposition of an asset or asset group to its carrying value. If the projected undiscounted cash flows are less than the carrying value, then an impairment charge would be recorded for the excess of the carrying value over the fair value, which is determined by discounting estimated future cash flows.
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 that are 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 $922 million, or 8%, $1,065 million, or 9%, and $1,060 million, or 10%, of the Company’s consolidated net sales in fiscal 2017, 2016 and 2015, respectively. This customer accounted for $112 million, or 8%, and $164 million, or 13%, of the Company’s accounts receivable at June 30, 2017 and 2016, respectively.
Revenue Recognition	Revenue Recognition Revenues from product sales are recognized upon transfer of ownership, including passage of title to the customer and transfer of the risk of loss related to those goods. In the Americas region, sales are generally recognized at the time the product is shipped to the customer and in the Europe, the Middle East & Africa and Asia/Pacific regions, sales are generally recognized based upon the customer’s receipt. In certain circumstances, transfer of title takes place at the point of sale, for example, at the Company’s retail stores. The Company records revenues generated from purchase with purchase promotions in Net Sales and costs of its purchase with purchase and gift with purchase promotions in Cost of Sales. Revenues are reported on a net sales basis, which is computed by deducting from gross sales the amount of actual product returns received, discounts, incentive arrangements with retailers and an amount established for anticipated product returns. The Company’s practice is to accept product returns from retailers only if properly requested and approved. In accepting returns, the Company typically provides a credit to the retailer against accounts receivable from that retailer. As a percentage of gross sales, returns were 3.5% in fiscal 2017, 3.1% in fiscal 2016 and 3.4% in fiscal 2015.
Payments to Customers	Payments to Customers Certain incentive arrangements require the payment of a fee to customers based on their attainment of pre-established sales levels. These fees have been accrued and recorded as a reduction of Net Sales in the accompanying consolidated statements of earnings and were not material to the results of operations in any period presented. The Company enters into transactions related to demonstration, advertising and counter construction, some of which involve cooperative relationships with customers. These activities may be arranged either with unrelated third parties or in conjunction with the customer. To the extent the Company receives an identifiable benefit in exchange for consideration and the fair-value of the benefit can be reasonably estimated, the Company’s share of the counter depreciation and the other costs of these transactions (regardless of to whom they were paid) are reflected in Selling, general and administrative expenses in the accompanying consolidated statements of earnings and were approximately $1,405 million, $1,387 million and $1,378 million in fiscal 2017, 2016 and 2015, respectively.
Advertising and Promotion	Advertising and Promotion Global net expenses for advertising, merchandising, sampling, promotion and product development were $2,908 million, $2,821 million and $2,772 million in fiscal 2017, 2016 and 2015, respectively, and are expensed as incurred. Excluding the impact of purchase with purchase and gift with purchase promotions, which are included in Net Sales and Cost of Sales, costs for advertising, merchandising, sampling, promotion and product development included in Selling, general and administrative expenses in the accompanying consolidated statements of earnings were $2,689 million, $2,607 million and $2,559 million in fiscal 2017, 2016 and 2015, respectively.
Research and Development	Research and Development Research and development costs of $179 million, $191 million and $178 million in fiscal 2017, 2016 and 2015, respectively, are recorded in Selling, general and administrative expenses in the accompanying consolidated statements of earnings and are expensed as incurred.
Shipping and Handling	Shipping and Handling Shipping and handling expenses of $400 million, $363 million and $364 million in fiscal 2017, 2016 and 2015, respectively, are recorded in Selling, general and administrative expenses in the accompanying consolidated statements of earnings and include distribution center costs, third-party logistics costs and outbound freight.
Operating Leases	Operating Leases The Company recognizes rent expense from operating leases with periods of free and scheduled rent increases on a straight-line basis over the applicable lease term. The Company considers lease renewals when such renewals are reasonably assured. From time to time, the Company may receive capital improvement funding from its lessors. These amounts are recorded as deferred liabilities and amortized over the remaining lease term as a reduction of rent expense.
License Arrangements	License Arrangements The Company’s license agreements provide the Company with worldwide rights to manufacture, market and sell beauty and beauty-related products (or particular categories thereof) using the licensors’ trademarks. Our current licenses have an initial term of approximately 5 years to 10 years, and are renewable subject to the Company’s compliance with the license agreement provisions. Most of our license agreements have renewal terms in 5 year increments, with potential renewal periods ranging from approximately 5 years to 25 years. Under each license, the Company is required to pay royalties to the licensor, at least annually, based on net sales to third parties. Most of the Company’s licenses were entered into to create new business. In some cases, the Company acquired, or entered into, a license where the licensor or another licensee was operating a pre-existing beauty products business. In those cases, other intangible assets are capitalized and amortized over their useful lives. Certain license agreements may require minimum royalty payments, incremental royalties based on net sales levels and minimum spending on advertising and promotional activities. Royalty expenses are accrued in the period in which net sales are recognized while advertising and promotional expenses are accrued at the time these costs are incurred.
Stock-Based Compensation	Stock-Based Compensation The Company records stock-based compensation, measured at the fair value of the awards that are ultimately expected to vest, as an expense in the consolidated financial statements. Upon the exercise of stock options or the vesting of restricted stock units, performance share units, performance share units based on total stockholder return and long-term performance share units, the resulting excess tax benefits, if any, are credited to additional paid-in capital. Any resulting tax deficiencies will first be offset against those cumulative credits to additional paid-in capital. If the cumulative credits to additional paid-in capital are exhausted, tax deficiencies will be recorded to the provision for income taxes.
Income Taxes	Income Taxes The Company accounts for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its consolidated financial statements or tax returns. The net deferred tax assets assume sufficient future earnings for their realization, as well as the continued application of currently anticipated tax rates. Included in net deferred tax assets is a valuation allowance for deferred tax assets, where management believes it is not more-likely-than-not that the deferred tax assets will be realized in the relevant jurisdiction. If the Company’s assessment of realizability of a deferred tax asset changes, an increase to a valuation allowance will result in a reduction of net earnings at that time while the reduction of a valuation allowance will result in an increase of net earnings at that time. The Company provides tax reserves for U.S. federal, state, local and foreign exposures relating to periods subject to audit. The development of reserves for these exposures requires judgments about tax issues, potential outcomes and timing, and is a subjective critical estimate. The Company assesses its tax positions and records tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting dates. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon settlement with a tax authority that has full knowledge of all relevant information. For those tax positions where it is more-likely-than-not that a tax benefit will not be sustained, no tax benefit has been recognized in the consolidated financial statements. The Company classifies applicable interest and penalties as a component of the provision for income taxes. Although the outcome relating to these exposures is uncertain, in management’s opinion adequate provisions for income taxes have been made for estimable potential liabilities emanating from these exposures. If actual outcomes differ materially from these estimates, they could have a material impact on the Company’s consolidated results of operations.
Recently Issued Accounting Standards	Recently Issued Accounting Standards Pension-related Costs In March 2017, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance that amends how companies present net periodic benefit cost in the income statement and balance sheet relating to defined benefit pension and/or other postretirement benefit plans. Within the income statement, the new guidance requires companies to report the service cost component within operating expenses and report the other components of net periodic benefit cost below operating income (if one is reported). In addition, within the balance sheet, the guidance changes the components of the pension cost eligible for capitalization to the service cost component only (e.g., as a cost of internally manufactured inventory or a self-constructed asset). Effective for the Company – Fiscal 2019 first quarter, with early adoption permitted as of the first interim period in fiscal 2018. The guidance must be applied (a) retrospectively as it pertains to the income statement classification of the components of net periodic benefit cost and (b) prospectively as it pertains to future capitalization of service costs. Impact on consolidated financial statements – The Company will adopt this guidance when it becomes effective and although certain components of pension expense will be reclassified out of operating income, the Company does not believe this will have a material impact on reported operating income. Goodwill In January 2017, FASB issued authoritative guidance which simplifies the subsequent measurement of goodwill by eliminating the second step from the quantitative goodwill impairment test. The single quantitative step test requires companies to compare the fair value of a reporting unit with its carrying amount and record an impairment charge for the amount that the carrying amount exceeds the fair value, up to the total amount of goodwill allocated to that reporting unit. The Company will continue to have the option of first performing a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. Effective for the Company – Fiscal 2021 first quarter, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Impact on consolidated financial statements – The Company did not elect to apply this guidance to its fiscal 2017 impairment testing and will continue to assess the impact of adopting it on future interim and annual impairment tests. Income Taxes In October 2016, the FASB issued authoritative guidance that changes the way companies account for income taxes relating to intra-entity transfers of assets other than inventory. This new guidance requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory in the period in which the transfer takes place. Under current guidance, recognition of current and deferred income taxes of an intra-entity asset transfer is deferred. This new guidance may affect consolidated earnings where the intra-entity transfer of an asset other than inventory occurs between entities in jurisdictions with different tax rates. This guidance must be adopted using a modified retrospective approach with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Effective for the Company – Fiscal 2019 first quarter, with early adoption permitted. Impact on consolidated financial statements – The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued authoritative guidance that requires companies to utilize an impairment model for most financial assets measured at amortized cost and certain other financial instruments, which include trade and other receivables, loans and held-to-maturity debt securities, to record an allowance for credit risk based on expected losses rather than incurred losses. In addition, this new guidance changes the recognition method for credit losses on available-for-sale debt securities, which can occur as a result of market and credit risk, as well as additional disclosures. In general, this guidance will require modified retrospective adoption for all outstanding instruments that fall under this guidance. Effective for the Company – Fiscal 2021 first quarter . Impact on consolidated financial statements – The Company is currently evaluating the impact of applying this guidance on its financial instruments, such as accounts receivable and short- and long-term investments. Compensation - Stock Compensation In March 2016, the FASB issued authoritative guidance that changes the way companies account for certain aspects of share-based payments to employees. This new guidance requires that all excess tax benefits and tax deficiencies related to share-based compensation awards be recorded as income tax expense or benefit in the income statement. In addition, companies are required to treat the tax effects of exercised or vested awards as discrete items in the period that they occur. This guidance also permits an employer to withhold up to the maximum statutory withholding rates in a jurisdiction without triggering liability classification, allows companies to elect to account for forfeitures as they occur, and provides requirements for the cash flow classification of cash paid by an employer when directly withholding shares for tax-withholding purposes and for the classification of excess tax benefits. The new guidance prescribes different transition methods for the various provisions. Effective for the Company – Fiscal 2018 first quarter, with early adoption permitted. Impact on consolidated financial statements – The Company will adopt this guidance in its fiscal 2018 first quarter. For the fiscal years ended June 30, 2017 and 2016, the Company recognized $42 million and $22 million of excess tax benefits, respectively, directly in its consolidated statements of equity. These amounts may or may not be representative of future amounts to be recognized in the income statement upon the adoption of this new standard, as the impact of the adoption will be primarily dependent on the timing and intrinsic value of stock-based compensation awards, employee exercise behavior and applicable tax rates. Leases In February 2016, the FASB issued authoritative guidance that requires lessees to account for most leases on their balance sheets with the liability being equal to the present value of the lease payments. The right-of-use asset will be based on the lease liability adjusted for certain costs such as direct costs. Lease expense will be recognized similar to current accounting guidance with operating leases resulting in a straight-line expense, and financing leases resulting in a front-loaded expense similar to the current accounting for capital leases. This guidance must be adopted using a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and provides for certain practical expedients. Effective for the Company – Fiscal 2020 first quarter, with early adoption permitted . Impact on consolidated financial statements – The Company currently has an implementation team in place that is performing a comprehensive evaluation of the impact of the adoption of this guidance. While the Company has not completed its evaluation, it believes the adoption of this standard will have a significant impact on its consolidated balance sheets. As disclosed in Note 15 – Commitments and Contingencies , the Company has $2,427 million in future minimum lease commitments as of June 30, 2017. Upon adoption, the Company’s lease liability will generally be based on the present value of such payments and the related right-of use asset will generally be based on the lease liability, adjusted for initial direct costs. Revenue from Contracts with Customers 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 March 2016, the FASB issued authoritative guidance that amended the principal versus agent guidance in its new revenue recognition standard. These amendments do not change the key aspects of the principal versus agent guidance, including the definition that an entity is a principal if it controls the good or service prior to it being transferred to a customer, but the amendments clarify the implementation guidance related to the considerations that must be made during the contract evaluation process. In April 2016, the FASB issued authoritative guidance that amended the new standard to clarify the guidance on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued authoritative guidance that clarified certain terms, guidance and disclosure requirements during the transition period related to completed contracts and contract modifications. In addition, the FASB provided clarification on the concept of collectability, the calculation of the fair value of noncash consideration and the presentation of sales and other similar taxes. In May 2016, the FASB issued authoritative guidance to reflect the Securities and Exchange Commission Staff’s rescission of their prior comments that covered, among other things, accounting for shipping and handling costs and accounting for consideration given by a vendor to a customer. In December 2016, the FASB issued authoritative guidance that amends various aspects of the new standard to clarify certain terms, guidance and disclosure requirements. In particular, the guidance addresses disclosure requirements for remaining performance obligations, impairment testing for contract costs and accrual of advertising costs, as well as clarifies several examples. Effective for the Company – Fiscal 2019, with early adoption permitted. An entity is permitted to apply the foregoing guidance retrospectively to all prior periods presented, with certain practical expedients, or apply the requirements in the year of adoption, through a cumulative adjustment. Impact on consolidated financial statements – The Company will apply all of this new guidance when they become effective in fiscal 2019 and has not yet selected a transition method. Although the Company has not yet completed its evaluation, it has preliminarily determined that certain promotional goods, such as samples and testers, may be reclassified from Selling, general and administrative expenses to Cost of Sales in the consolidated financial statements upon adoption. Additionally, the Company’s customer loyalty programs, which have historically been accounted for under the incremental cost approach, will be accounted for as a reduction of revenue based on the fair value of estimated future redemptions when the obligation is created (i.e. upon sale of the product to the consumer). No other recently issued accounting pronouncements are expected to have a material impact on the Company’s consolidated financial statements.

INVESTMENTS (Tables)

INVESTMENTS (Tables)	12 Months Ended
	Jun. 30, 2017
INVESTMENTS
Schedule of gains and losses recorded in AOCI related to the Company's available-for-sale investments	Gains and losses recorded in AOCI related to the Company’s available-for-sale investments as of June 30, 2017 were as follows: (In millions) Cost Gross Unrealized Gross Unrealized 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, 2016 were as follows: (In millions) Cost Gross Unrealized Gross Unrealized 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 June 30, 2017: (In millions) Cost Fair Value Due within one year $ $ Due after one through five years $ $
Schedule of gross 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 June 30, 2017: In a Loss Position for Less Than 12 Months In a Loss Position for More Than 12 Months (In millions) Fair Value Gross Unrealized Fair Value Gross Unrealized Available-for-sale securities $ $ ) $ $ —
Schedule of gross gains and losses realized on sales of investments	Year Ended June 30 (In millions) 2017 2016 Gross realized gains $ $ Gross realized losses ) ) Total $ — $ —

INVENTORY AND PROMOTIONAL MER33

INVENTORY AND PROMOTIONAL MERCHANDISE (Tables)	12 Months Ended
	Jun. 30, 2017
INVENTORY AND PROMOTIONAL MERCHANDISE
Inventory and Promotional Merchandise	June 30 (In millions) 2017 2016 Inventory and promotional merchandise, net consists of: Raw materials $ $ Work in process Finished goods Promotional merchandise $ $

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Jun. 30, 2017
PROPERTY, PLANT AND EQUIPMENT
Property, Plant and Equipment	June 30 (In millions) 2017 2016 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 ) ) $ $

ACQUISITION OF BUSINESSES (Tabl

ACQUISITION OF BUSINESSES (Tables)	12 Months Ended
	Jun. 30, 2017
ACQUISITION OF BUSINESSES
Summary of calculation and allocation of purchase price	(In millions) Cash $ Accounts receivable (1) Inventory Other current assets Property, plant and equipment Intangible assets Goodwill Total assets acquired Accounts payable Other accrued liabilities Deferred income taxes Total liabilities assumed Total purchase price $ (1) Represents the gross amount of trade receivables of $42 million, net of estimated customer deductions which were de minimis.

GOODWILL AND OTHER INTANGIBLE36

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Jun. 30, 2017
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of goodwill by product category and related change in the carrying amount	(In millions) Skin Makeup Fragrance Hair Total Balance as of June 30, 2015 Goodwill $ $ $ $ $ Accumulated impairments ) — — ) ) Goodwill acquired during the year — — Translation and other adjustments — — ) ) ) — ) Balance as of June 30, 2016 Goodwill Accumulated impairments ) — — ) ) Goodwill acquired during the year — — — Impairment charges ) — ) — ) ) ) — Balance as of June 30, 2017 Goodwill Accumulated impairments ) — ) ) ) $ $ $ $ $
Schedule of finite-lived assets	June 30, 2017 June 30, 2016 (In millions) Gross Accumulated Total Net Gross Accumulated Total Net Amortizable intangible assets: Customer lists and other $ $ $ $ $ $ License agreements — — $ $ $ $ Non-amortizable intangible assets: Trademarks and other Total intangible assets $ $
Schedule of indefinite-lived assets	June 30, 2017 June 30, 2016 (In millions) Gross Accumulated Total Net Gross Accumulated Total Net Amortizable intangible assets: Customer lists and other $ $ $ $ $ $ License agreements — — $ $ $ $ Non-amortizable intangible assets: Trademarks and other Total intangible assets $ $
Estimated aggregate amortization expense for next five years	Fiscal (In millions) 2018 2019 2020 2021 2022 Estimated aggregate amortization expense $ $ $ $ $

CHARGES ASSOCIATED WITH RESTR37

CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES (Tables)	12 Months Ended
	Jun. 30, 2017
CHARGES ASSOCIATED WITH RESTRUCTURING ACTIVITIES
Schedule of incurred charges associated with restructuring and other activities	Sales Returns Operating Expenses (In millions) (included in Net Cost of Sales Restructuring Other Total Fiscal 2017 Leading Beauty Forward $ $ $ $ $ Fiscal 2016 Leading Beauty Forward $ $ — $ $ $ Global Technology Infrastructure — — Total $ $ — $ $ $
Leading Beauty Forward
CHARGES ASSOCIATED WITH RESTRUCTURING ACTIVITIES
Schedule of restructuring and other charges expected to be incurred	Sales Returns Operating Expenses (In millions) (included in Cost of Sales Restructuring Other Total Approval Period Fiscal 2016 $ $ $ $ $ Fiscal 2017 Cumulative through June 30, 2017 $ $ $ $ $
Schedule of total cumulative charges by type approved associated with restructuring initiatives	(In millions) Employee- Costs Asset-Related Contract Other Exit Total Approval Period Fiscal 2016 $ $ $ $ $ Fiscal 2017 — Cumulative through June 30, 2017 $ $ $ $ $
Schedule of total cumulative charges recorded associated with restructuring and other activities	Sales Returns Operating Expenses (In millions) (included in Cost of Sales Restructuring Other Total Fiscal 2016 $ $ — $ $ $ Fiscal 2017 Cumulative through June 30, 2017 $ $ $ $ $
Schedule of total cumulative charges by type recorded associated with restructuring and other activities	(In millions) Employee- Costs Asset- Contract Other Exit Total Fiscal 2016 $ $ $ — $ — $ Fiscal 2017 Charges recorded through June 30, 2017 $ $ $ $ $
Schedule of accrued restructuring charges from program inception	(In millions) Employee- Costs Asset- Contract Other Exit Total Charges $ $ $ — $ — $ Noncash asset write-offs — ) — — ) Translation adjustments ) — — — ) Balance at June 30, 2016 — — — Charges Cash payments ) — ) ) ) Noncash asset write-offs — ) — — ) Balance at June 30, 2017 $ $ — $ — $ — $

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2017
INCOME TAXES
Provision for income taxes	Year Ended June 30 (In millions) 2017 2016 2015 Current: Federal $ $ $ Foreign State and local Deferred: Federal ) ) ) Foreign ) ) State and local ) ) ) $ $ $
Reconciliation of the U.S. federal statutory income tax rate and actual effective tax rate on earnings before income taxes	Year Ended June 30 2017 2016 2015 Provision for income taxes at statutory rate % % % Increase (decrease) due to: State and local income taxes, net of federal tax benefit Taxation of foreign operations ) ) ) China deferred tax asset valuation allowance reversal ) — — Income tax reserve adjustments ) ) Other, net ) Effective tax rate % % %
Significant components of deferred income tax assets and liabilities	June 30 (In millions) 2017 2016 Deferred tax assets: Compensation related expenses $ $ Inventory obsolescence and other inventory related reserves Retirement benefit obligations Various accruals not currently deductible Net operating loss, credit and other carryforwards Unrecognized state tax benefits and accrued interest Other differences between tax and financial statement values Valuation allowance for deferred tax assets ) ) Total deferred tax assets Deferred tax liabilities: Depreciation and amortization ) ) Other differences between tax and financial statement values ) ) Total deferred tax liabilities ) ) Total net deferred tax assets $ $
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits	June 30 (In millions) 2017 2016 Beginning of the year balance of gross unrecognized tax benefits $ $ Gross amounts of increases as a result of tax positions taken during a prior period Gross amounts of decreases as a result of tax positions taken during a prior period ) ) Gross amounts of increases as a result of tax positions taken during the current period Amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities ) ) Reductions to unrecognized tax benefits as a result of a lapse of the applicable statutes of limitations ) ) End of year balance of gross unrecognized tax benefits $ $
Tax years that remain subject to examination vary by the major tax jurisdictions	Major Jurisdiction Open Fiscal Years Belgium 2013 – 2017 Canada 2015 – 2017 China 2013 – 2017 France 2013 – 2017 Germany 2013 – 2017 Hong Kong 2011 – 2017 Italy 2014 – 2017 Japan 2016 – 2017 Korea 2014 – 2017 Russia 2015 – 2017 Spain 2013 – 2017 Switzerland 2014 – 2017 United Kingdom 2016 – 2017 United States 2017 State of California 2013 – 2017 State and City of New York 2011 – 2017

OTHER ACCRUED LIABILITIES (Tabl

OTHER ACCRUED LIABILITIES (Tables)	12 Months Ended
	Jun. 30, 2017
OTHER ACCRUED LIABILITIES
Other Accrued Liabilities	June 30 (In millions) 2017 2016 Advertising, merchandising and sampling $ $ Employee compensation Payroll and other taxes Other $ $

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Jun. 30, 2017
DEBT
Schedule of current and long-term debt and available financing	Debt at June 30 Available financing at June 30, 2017 (In millions) 2017 2016 Committed Uncommitted 4.15% Senior Notes, due March 15, 2047 (“2047 Senior Notes”) $ $ — $ — $ — 4.375% Senior Notes, due June 15, 2045 (“2045 Senior Notes”) — — 3.70% Senior Notes, due August 15, 2042 (“2042 Senior Notes”) — — 6.00% Senior Notes, due May 15, 2037 (“2037 Senior Notes”) — — 5.75% Senior Notes, due October 15, 2033 (“2033 Senior Notes”) — — 3.15% Senior Notes, due March 15, 2027 (“2027 Senior Notes”) — — — 2.35% Senior Notes, due August 15, 2022 (“2022 Senior Notes”) — — 1.70% Senior Notes, due May 10, 2021 (“2021 Senior Notes”) — — 1.80% Senior Notes, due February 7, 2020 (“2020 Senior Notes”) — — — 5.55% Senior Notes, due May 15, 2017 (“2017 Senior Notes”) — — — Commercial paper that matured through July 2017 (1.07% interest rate) — — Other long-term borrowings — — Other current borrowings — Revolving credit facility — — — $ $ Less current debt including current maturities ) ) $ $
Schedule of long-term debt	As of June 30, 2017, the Company’s long-term debt consisted of the following: Notes Issue Date Price Yield Principal Unamortized Interest rate Debt Semi-annual interest ($ in millions) 2047 Senior Notes (1) February 2017 % % $ $ ) $ — $ ) March 15/September 15 2045 Senior Notes (2) June 2015 ) — ) June 15/December 15 2045 Senior Notes (2) May 2016 — ) June 15/December 15 2042 Senior Notes August 2012 ) — ) February 15/August 15 2037 Senior Notes (3) May 2007 ) — ) May 15/November 15 2033 Senior Notes (4) September 2003 ) — ) April 15/October 15 2027 Senior Notes (5) February 2017 — — ) March 15/September 15 2022 Senior Notes (6) August 2012 — ) February 15/August 15 2021 Senior Notes (6),(7) May 2016 — ) ) May 10/November 10 2020 Senior Notes (6) February 2017 — — ) February 7/August 7 (1) In November 2016, in anticipation of the issuance of the 2047 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $350 million at a weighted-average all-in rate of 3.01%. The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a gain in OCI of $3 million that is being amortized against interest expense over the life of the 2047 Senior Notes. As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2047 Senior Notes will be 4.17% over the life of the debt. (2) In April and May 2015, in anticipation of the issuance of the 2045 Senior Notes in June 2015, the Company entered into a series of forward-starting interest rate swap agreements on a notional amount totaling $300 million at a weighted-average all-in rate of 2.38%. The forward-starting interest rate swap agreements were settled upon the issuance of the new debt and the Company recognized a gain in OCI of $18 million that will be amortized against interest expense over the life of the 2045 Senior Notes. As a result of the forward-starting interest rate swap agreements, the debt discount and debt issuance costs, the effective interest rate on the 2045 Senior Notes will be 4.216% over the life of the debt. In May 2016, the Company reopened this offering with the same terms and issued an additional $150 million for an aggregate amount outstanding of $450 million of 2045 Senior Notes. (3) In April 2007, in anticipation of the issuance of the 2037 Senior Notes, the Company entered into a series of forward-starting interest rate swap agreements on a notional amount totaling $210 million at a weighted-average all-in rate of 5.45%. The forward-starting interest rate swap agreements were settled upon the issuance of the new debt and the Company recognized a loss in OCI of $1 million that is being amortized to interest expense over the life of the 2037 Senior Notes. As a result of the forward-starting interest rate swap agreements, the debt discount and debt issuance costs, the effective interest rate on the 2037 Senior Notes will be 6.181% over the life of the debt. (4) In May 2003, in anticipation of the issuance of the 2033 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $195 million at a weighted-average all-in rate of 4.53%. The treasury lock agreements were settled upon the issuance of the new debt and the Company received a payment of $15 million that is being amortized against interest expense over the life of the 2033 Senior Notes. As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2033 Senior Notes will be 5.395% over the life of the debt. (5) In November 2016, in anticipation of the issuance of the 2027 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $450 million at a weighted-average all-in rate of 2.37%. The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a gain in OCI of $2 million that is being amortized against interest expense over the life of the 2027 Senior Notes. As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2027 Senior Notes will be 3.18% over the life of the debt. (6) The Company entered into interest rate swap agreements with a notional amount totaling $250 million, $450 million and $250 million to effectively convert the fixed rate interest on its outstanding 2020 Senior Notes, 2021 Senior Notes and 2022 Senior Notes, respectively, to variable interest rates based on three-month LIBOR plus a margin. (7) In April 2016, in anticipation of the issuance of the 2021 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $400 million at a weighted-average all-in rate of 1.27%. The treasury lock agreements were settled upon the issuance of the new debt and the Company made a payment of $1 million that is being amortized to interest expense over the life of the 2021 Senior Notes. As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2021 Senior Notes will be 1.844% over the life of the debt.

DERIVATIVE FINANCIAL INSTRUME41

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Jun. 30, 2017
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 Fair Value (1) Balance Sheet Fair Value (1) June 30 June 30 2017 2016 2017 2016 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 13 – 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) Location of Gain or Amount of Gain or (Loss) (Effective Portion) (1) June 30 June 30 2017 2016 2017 2016 Derivatives in Cash Flow Hedging Relationships: Foreign currency forward contracts $ ) $ Cost of sales $ $ Selling, general and administrative 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 $3 million and $(1) million for fiscal 2017 and 2016, respectively. The gain (loss) recognized in earnings related to the ineffective portion of the hedging relationships was de minimis for fiscal 2017. There was no gain (loss) recognized in earnings related to the ineffective portion of hedging relationships for fiscal 2016. (In millions) Location of Gain or (Loss) Recognized Amount of Gain or (Loss) Recognized (1) June 30 2017 2016 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 Amount of Gain or (Loss) Recognized June 30 2017 2016 Derivatives Not Designated as Hedging Instruments: Foreign currency forward contracts Selling, general and administrative $ ) $

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Jun. 30, 2017
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 June 30, 2017: (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 $ — $ $ — $ Interest rate swap 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, 2016: (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 $ — $ $ $
Estimated fair values of financial instruments	June 30 2017 2016 (In millions) Carrying Fair Carrying Fair 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), net ) ) Interest rate swap contracts – asset (liability), net — —
Impairment charges measured at fair value on a nonrecurring basis, classified as Level 3	(In millions) Impairment Date of Fair Value Fair Value Goodwill $ April 1, 2017 $ Other intangible assets, net (trademarks) April 1, 2017 Other intangible assets, net (customer lists and other) April 1, 2017 — Total $ $
Schedule of fair value assumptions	The Monte Carlo Method has various inputs into the valuation model, in addition to the risk-adjusted projected future operating results of the acquired entities, which include the following ranges at June 30, 2017: Risk-adjusted discount rate 1.5% to 2.3% Revenue volatility 3.7% to 8.5% Asset volatility 21.1% to 27.3% Revenue and earnings before income tax, depreciation and amortization correlation coefficient factor Revenue discount rates 3.0% to 4.8% Earnings before income tax, depreciation and amortization discount rates 10.7% to 13.1%
Changes in the fair value of the contingent consideration obligations	(In millions) Fair Value Contingent consideration at June 30, 2016 $ Changes in fair value ) Contingent consideration at June 30, 2017 $

PENSION, DEFERRED COMPENSATIO43

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS (Tables)	12 Months Ended
	Jun. 30, 2017
PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS
Schedule of components of net periodic benefit cost for pension and other post-retirement benefit plans	Pension Plans Other than U.S. International Post-retirement (In millions) 2017 2016 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ $ $ $ $ $ Service cost Interest cost Plan participant contributions — — Actuarial loss (gain) ) ) ) Foreign currency exchange rate impact — — ) ) — ) Benefits, expenses, taxes and premiums paid ) ) ) ) ) ) Settlements and curtailments — — ) ) — — Special termination benefits — — — — Benefit obligation at end of year $ $ $ $ $ $ Change in plan assets: Fair value of plan assets at beginning of year $ $ $ $ $ $ Actual return on plan assets Foreign currency exchange rate impact — — ) ) — — Employer contributions Plan participant contributions — — Settlements — — ) ) — — Benefits, expenses, taxes and premiums paid from plan assets ) ) ) ) ) ) Fair value of plan assets at end of year $ $ $ $ $ $ Funded status $ ) $ ) $ ) $ ) $ ) $ ) Amounts recognized in the Balance Sheet consist of: Other assets $ $ — $ $ $ — $ — Other accrued liabilities ) ) ) ) — ) Other noncurrent liabilities ) ) ) ) ) ) Funded status ) ) ) ) ) ) Accumulated other comprehensive loss Net amount recognized $ $ $ $ $ ) $ )
Net periodic benefit costs and weighted-average assumptions	Pension Plans Other than U.S. International Post-retirement ($ in millions) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost: Service cost $ $ $ $ $ $ $ $ $ Interest cost Expected return on assets ) ) ) ) ) ) ) ) ) Amortization of: Actuarial loss — Prior service cost — — Curtailments — — — — — ) — — — Special termination benefits — — — — — — — Net periodic benefit cost $ $ $ $ $ $ $ $ $ Weighted-average assumptions used to determine benefit obligations at June 30: Discount rate 3.40 – % 3.00 – % 3.70 – % .50 – % .25 – % .75 – % 3.70 – % 3.50 – % 4.25 – % Rate of compensation increase 3.00 – % 3.00 – % 3.00 – % 1.00 – % 0 – % 0 – % N/A N/A N/A Weighted-average assumptions used to determine net periodic benefit cost for the year ended June 30: Discount rate 3.00 – % 3.70 – % 3.60 – % .25 – % .75 – % .50 – % 3.50 – % 4.25 – % 4.10 – % Expected return on assets % % % 1.50 – 2.00 – 2.00 – % % % % % % Rate of compensation increase 3.00 – % 3.00 – % 3.00 – % 0 – % 0 – % 1.00 – % N/A N/A N/A
Impact of one-percentage-point change in assumed health care cost trend rates	A 100 basis-point change in assumed health care cost trend rates for fiscal 2017 would have had the following effects: (In millions) 100 Basis-Point 100 Basis-Point Effect on total service and interest costs $ $ ) Effect on post-retirement benefit obligations $ $ )
Amounts recognized in AOCI (before tax)	Amounts recognized in AOCI (before tax) as of June 30, 2017 are as follows: Pension Plans Other than (In millions) U.S. International Post-retirement Total Net actuarial losses, beginning of year $ $ $ $ Actuarial gains recognized ) ) ) ) Amortization included in net periodic benefit cost ) ) ) ) Net actuarial losses, end of year Net prior service cost, beginning of year — Amortization included in net periodic benefit cost ) ) — ) Net prior service cost, end of year ) Total amounts recognized in AOCI $ $ $ $
Amounts in AOCI expected to be amortized as components of net periodic benefit cost during next fiscal year	Amounts in AOCI expected to be amortized as components of net periodic benefit cost during fiscal 2018 are as follows: Pension Plans Other than (In millions) U.S. International Post-retirement Net prior service cost $ $ — $ Net actuarial losses $ $ $ —
Projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the Company's pension plans	Pension Plans Retirement Growth Restoration International (In millions) 2017 2016 2017 2016 2017 2016 Projected benefit obligation $ $ $ $ $ $ Accumulated benefit obligation $ $ $ $ $ $ Fair value of plan assets $ $ $ — $ — $ $
Expected Cash Flows	Pension Plans Other than (In millions) U.S. International Post-retirement Expected employer contributions for year ending June 30, 2018 $ — $ $ — Expected benefit payments for year ending June 30, 2018 2019 2020 2021 2022 Years 2023 – 2027
Target Asset Allocation	The Company’s target asset allocation at June 30, 2017 is as follows: Pension Plans Other than U.S. International Post-retirement Equity % % % Debt securities % % % Other % % % % % %
Fair values of the Company's pension and post-retirement plan assets by asset category	The following table presents the fair values of the Company’s pension and post-retirement plan assets by asset category as of June 30, 2017: (In millions) Level 1 Level 2 Level 3 Assets (1) Total Cash and cash equivalents $ $ — $ — $ — $ Short term investment funds — — Government and agency securities — — — Debt instruments — — — Commingled funds — Insurance contracts — — — Limited partnerships and hedge fund investments — — — Total $ $ $ $ $ _________________ (1) Per the fiscal 2017 adoption of new accounting guidance issued by the FASB, certain assets that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The following table presents the fair values of the Company’s pension and post-retirement plan assets by asset category as of June 30, 2016: (In millions) Level 1 Level 2 Level 3 Assets (1) Total Cash and cash equivalents $ $ — $ — $ — $ Short term investment funds — — Government and agency securities — — — Equity securities — — — Debt instruments — — — Commingled funds — Insurance contracts — — — Limited partnerships and hedge fund investments — — — Total $ $ $ $ $ _________________ (1) Per the fiscal 2017 adoption of new accounting guidance issued by the FASB, certain assets that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.
Changes in Level 3 plan assets	The following table presents the changes in Level 3 plan assets for fiscal 2017: (In millions) Insurance Contracts Balance as of June 30, 2016 $ Actual return on plan assets: Relating to assets still held at the reporting date Purchases, sales, issuances and settlements, net Foreign exchange impact Balance as of June 30, 2017 $

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Jun. 30, 2017
COMMITMENTS AND CONTINGENCIES
Summary of scheduled maturities of contractual obligations for which cash flows are fixed and determinable	The following table summarizes scheduled maturities of the Company’s contractual obligations for which cash flows are fixed and determinable as of June 30, 2017: Payments Due in Fiscal (In millions) Total 2018 2019 2020 2021 2022 Thereafter Debt service (1) $ $ $ $ $ $ $ Operating lease commitments (2) Unconditional purchase obligations (3) Gross unrecognized tax benefits and interest – current (4) — — — — — Total contractual obligations $ $ $ $ $ $ $ (1) Includes long-term and current debt and the related projected interest costs, and to a lesser extent, capital lease commitments. Interest costs on long-term and current debt in fiscal 2018, 2019, 2020, 2021, 2022 and thereafter are projected to be $123 million, $117 million, $117 million, $108 million, $101 million and $1,645 million, respectively. Projected interest costs on variable rate instruments were calculated using market rates at June 30, 2017. (2) Minimum operating lease commitments only include base rent. Certain leases provide for contingent rents that are not measurable at inception and primarily include rents based on a percentage of sales in excess of stipulated levels, as well as common area maintenance. These amounts are excluded from minimum operating lease commitments and are included in the determination of total rent expense when it is probable that the expense has been incurred and the amount is reasonably measurable. Such amounts have not been material to total rent expense. Total rental expense included in the accompanying consolidated statements of earnings was $457 million, $442 million and $402 million in fiscal 2017, 2016 and 2015, respectively. In July 2017, the Company entered into new lease commitments for its principal offices at the same location. The Company’s rental obligations under the new leases will commence in fiscal 2020 and expire in fiscal 2040. Minimum lease obligations pursuant to the leases in fiscal 2020, 2021, 2022 and thereafter are $5 million, $24 million, $32 million and $597 million, respectively. (3) Unconditional purchase obligations primarily include: inventory commitments, additional purchase price payable and contingent consideration which resulted from the fiscal 2016 and 2015 acquisitions, earn-out payments related to the acquisition of Bobbi Brown, royalty payments pursuant to license agreements, advertising commitments, capital improvement commitments, non-discretionary planned funding of pension and other post-retirement benefit obligations and commitments pursuant to executive compensation arrangements. Future contingent consideration, earn-out payments and royalty and advertising commitments were estimated based on planned future sales for the term that was in effect at June 30, 2017, without consideration for potential renewal periods. (4) Refer to Note 9 – Income Taxes for information regarding unrecognized tax benefits. As of June 30, 2017, the noncurrent portion of the Company’s unrecognized tax benefits, including related accrued interest and penalties was $73 million. At this time, the settlement period for the noncurrent portion of the unrecognized tax benefits, including related accrued interest and penalties, cannot be determined and therefore was not included.

COMMON STOCK (Tables)

COMMON STOCK (Tables)	12 Months Ended
	Jun. 30, 2017
COMMON STOCK
Information about the entity's common stock outstanding	(Shares in thousands) Class A Class B Balance at June 30, 2014 Acquisition of treasury stock ) — Conversion of Class B to Class A ) Stock-based compensation — Balance at June 30, 2015 Acquisition of treasury stock ) — Conversion of Class B to Class A ) Stock-based compensation — Balance at June 30, 2016 Acquisition of treasury stock ) — Conversion of Class B to Class A ) Stock-based compensation — Balance at June 30, 2017
Summary of cash dividends declared per share on the Company's Class A and Class B Common Stock	The following is a summary of cash dividends declared per share on the Company’s Class A and Class B Common Stock during the year ended June 30, 2017: Date Declared Record Date Payable Date Amount per Share August 18, 2016 August 31, 2016 September 15, 2016 $.30 November 1, 2016 November 30, 2016 December 15, 2016 $.34 February 1, 2017 February 28, 2017 March 15, 2017 $.34 May 2, 2017 May 31, 2017 June 15, 2017 $.34

STOCK PROGRAMS (Tables)

STOCK PROGRAMS (Tables)	12 Months Ended
	Jun. 30, 2017
STOCK PROGRAMS
Schedule of stock-based compensation expense and related income tax benefits	Year Ended June 30 (In millions) 2017 2016 2015 Compensation expense $ $ $ Income tax benefit
Summary of stock option programs and changes during the period	(Shares in thousands) Shares Weighted- Aggregate (1) (in millions) Weighted-Average Outstanding at June 30, 2016 $ Granted at fair value Exercised ) Expired ) Forfeited ) Outstanding at June 30, 2017 $ Vested and expected to vest at June 30, 2017 $ Exercisable at June 30, 2017 $ _____________________________ (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	Year Ended June 30 (In millions, except per share data) 2017 2016 2015 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	Year Ended June 30 2017 2016 2015 Weighted-average expected stock-price volatility 26% 27% 28% Weighted-average expected option life 7 years 7 years 7 years Average risk-free interest rate 1.5% 1.9% 2.2% Average dividend yield 1.3% 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, 2016 $ Granted Dividend equivalents Vested ) Forfeited ) Nonvested at June 30, 2017
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, 2016 $ Granted Vested ) Forfeited ) Nonvested at June 30, 2017
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, 2016 $ Granted Dividend equivalents Converted — — Outstanding at June 30, 2017

NET EARNINGS ATTRIBUTABLE TO 47

NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE (Tables)	12 Months Ended
	Jun. 30, 2017
NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE
Schedule of reconciliation between the numerators and denominators of the basic and diluted EPS computations	Year Ended June 30 (In millions, except per share data) 2017 2016 2015 Numerator: Net earnings attributable to The Estée Lauder Companies Inc. $ $ $ Denominator: Weighted-average common shares outstanding – Basic Effect of dilutive stock options Effect of PSUs Effect of RSUs Effect of performance share units based on TSR — Weighted-average common shares outstanding – Diluted Net earnings attributable to The Estée Lauder Companies Inc. per common share: Basic $ $ $ Diluted

ACCUMULATED OTHER COMPREHENSI48

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	12 Months Ended
	Jun. 30, 2017
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Schedule of components of AOCI	Year Ended June 30 (In millions) 2017 2016 2015 Net unrealized investment gains, beginning of year $ $ — $ Unrealized investment gains (losses) ) Reclassification to earnings during the year (1) — — ) Net unrealized investment gains (losses), end of year ) — Net derivative instruments, beginning of year ) Gain (loss) on derivative instruments ) Benefit (provision) for deferred income taxes ) ) Reclassification to earnings during the year: Foreign currency forward contracts (2) ) ) ) Interest rate-related derivatives (3) ) ) — Benefit for deferred income taxes on reclassification (4) Net derivative instruments, end of year ) Net pension and post-retirement adjustments, beginning of year ) ) ) Changes in plan assets and benefit obligations: Net actuarial gains (losses) recognized ) ) Translation adjustments — Benefit (provision) for deferred income taxes ) Amortization, settlements and curtailments included in net periodic benefit cost (5) : Net actuarial losses Net prior service cost Provision for deferred income taxes on reclassification (4) ) ) ) Net pension and post-retirement adjustments, end of year ) ) ) Cumulative translation adjustments, beginning of year ) ) Translation adjustments ) ) Provision for deferred income taxes — ) ) Cumulative translation adjustments, end of year ) ) ) Accumulated other comprehensive loss $ ) $ ) $ ) (1) Amounts recorded in Interest income and investment income, net in the accompanying consolidated statements of earnings. (2) For the year ended June 30, 2017, $10 million and $30 million were recorded in Cost of Sales and Selling, general and administrative expenses, respectively, in the accompanying consolidated statements of earnings. For the year ended June 30, 2016, $17 million and $48 million were recorded in Cost of Sales and Selling, general and administrative expenses, respectively, in the accompanying consolidated statements of earnings. For the year ended June 30, 2015, $9 million and $29 million were recorded in Cost of Sales and Selling, general and administrative expenses, respectively, in the accompanying consolidated statements of earnings. (3) Amounts recorded in Interest expense in the accompanying consolidated statements of earnings. (4) Amounts recorded in Provision for income taxes in the accompanying consolidated statements of earnings. (5) See Note 14 – Pension, Deferred Compensation and Post-Retirement Benefit Plans for additional information.

STATEMENT OF CASH FLOWS (Tables

STATEMENT OF CASH FLOWS (Tables)	12 Months Ended
	Jun. 30, 2017
STATEMENT OF CASH FLOWS
Supplemental cash flow information	Year Ended June 30 (In millions) 2017 2016 2015 Cash: Cash paid during the year for interest $ $ $ Cash paid during the year for income taxes $ $ $ Non-cash investing and financing activities: Capital lease and asset retirement obligations incurred $ $ $ Pending purchase price true-up payment $ — $ — $ Non-cash purchases (sales) of short- and long-term investments, net $ $ ) $ Property, plant and equipment accrued but unpaid $ $ $

SEGMENT DATA AND RELATED INFO50

SEGMENT DATA AND RELATED INFORMATION (Tables)	12 Months Ended
	Jun. 30, 2017
SEGMENT DATA AND RELATED INFORMATION
Schedule of segment data and related information	Year Ended June 30 (In millions) 2017 2016 2015 PRODUCT CATEGORY DATA Net Sales: Skin Care $ $ $ Makeup Fragrance Hair Care Other Returns associated with restructuring and other activities ) ) — $ $ $ Depreciation and Amortization: Skin Care $ $ $ Makeup Fragrance Hair Care Other $ $ $ Operating Income (Loss) before charges associated with restructuring and other activities: Skin Care $ $ $ Makeup Fragrance Hair Care Other ) Reconciliation: Charges associated with restructuring and other activities ) ) — Interest expense ) ) ) Interest income and investment income, net Earnings before income taxes $ $ $ Year Ended or at June 30 (In millions) 2017 2016 2015 GEOGRAPHIC DATA Net Sales: The Americas $ $ $ Europe, the Middle East & Africa Asia/Pacific Returns associated with restructuring and other activities ) ) — $ $ $ Operating Income (Loss): The Americas $ $ $ Europe, the Middle East & Africa Asia/Pacific Charges associated with restructuring and other activities ) ) — $ $ $ Total Assets: The Americas $ $ $ Europe, the Middle East & Africa Asia/Pacific $ $ $ Long-Lived Assets (property, plant and equipment, net): The Americas $ $ $ Europe, the Middle East & Africa Asia/Pacific $ $ $

UNAUDITED QUARTERLY FINANCIAL51

UNAUDITED QUARTERLY FINANCIAL DATA (Tables)	12 Months Ended
	Jun. 30, 2017
UNAUDITED QUARTERLY FINANCIAL DATA
Summary of unaudited quarterly operating results	Quarter Ended (In millions, except per share data) September 30 (1) December 31 (2) March 31 (3) June 30 (4) Total Year Fiscal 2017 Net Sales $ $ $ $ $ Gross Profit Operating Income Net Earnings Attributable to The Estée Lauder Companies Inc. Net earnings attributable to The Estée Lauder Companies Inc. per common share: Basic .80 .81 .62 Diluted .79 .80 .61 Fiscal 2016 Net Sales $ $ $ $ $ Gross Profit Operating Income Net Earnings Attributable to The Estée Lauder Companies Inc. Net earnings attributable to The Estée Lauder Companies Inc. per common share: Basic .83 .72 .25 Diluted .82 .71 .25 (1) Fiscal 2017 first quarter results include charges associated with restructuring and other activities of $(31) million ($(20) million after tax, or $(.05) per diluted common share). (2) Fiscal 2017 second quarter results include charges associated with restructuring and other activities of $(41) million ($(26) million after tax, or $(.07) per diluted common share). Fiscal 2016 second quarter results include charges associated with restructuring and other activities of $(19) million ($(12) million after tax, or $(.03) per diluted common share). (3) Fiscal 2017 third quarter results include charges associated with restructuring and other activities of $(62) million ($(42) million after tax, or $(.11) per diluted common share). Fiscal 2016 third quarter results include charges associated with restructuring and other activities of $(15) million ($(10) million after tax, or $(.02) per diluted common share). (4) Fiscal 2017 fourth quarter results include charges associated with restructuring and other activities of $(78) million ($(55) million after tax, or $(.15) per diluted common share), the changes in fair value of contingent consideration of $58 million ($42 million after tax, or $.11 per diluted common share), goodwill and other intangible asset impairments of $(31) million ($(23) million after tax, or $(.06) per diluted common share) and the China deferred tax asset valuation allowance reversal of $75 million, or $.20 per diluted common share. Fiscal 2016 fourth quarter results include charges associated with restructuring and other activities of $(100) million ($(68) million after tax, or $(.18) per diluted common share).

SUMMARY OF SIGNIFICANT ACCOUN52

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Currency Translation and Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Currency Translation and Transactions
Unrealized translation gains (losses), net of tax	$ 32	$ (109)	$ (322)
Net exchange gains on foreign currency transactions	$ 15	$ 16	$ 4

SUMMARY OF SIGNIFICANT ACCOUN53

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents and Accounts Receivable (Details) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Cash and Cash Equivalents
Short-term time deposits	$ 434	$ 205
Accounts Receivable
Allowance for doubtful accounts and customer deductions	$ 30	$ 24

SUMMARY OF SIGNIFICANT ACCOUN54

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details)	12 Months Ended
	Jun. 30, 2017
Minimum
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	3 years
Maximum
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	40 years

SUMMARY OF SIGNIFICANT ACCOUN55

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Concentration of Credit Risk
Net Sales	$ 2,894	$ 2,857	$ 3,208	$ 2,865	$ 2,646	$ 2,657	$ 3,124	$ 2,835	$ 11,824	$ 11,262	$ 10,780
Accounts receivable, net	1,395				1,258				1,395	1,258
Net Sales | Largest Customer
Concentration of Credit Risk
Net Sales									$ 922	$ 1,065	$ 1,060
Concentration of credit risk (as a percent)									8.00%	9.00%	10.00%
Accounts Receivable | Largest Customer
Concentration of Credit Risk
Accounts receivable, net	$ 112				$ 164				$ 112	$ 164
Concentration of credit risk (as a percent)									8.00%	13.00%

SUMMARY OF SIGNIFICANT ACCOUN56

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Payments to Customers, Advertising and Promotion (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Revenue Recognition
Product return by customers (as a percent)	3.50%	3.10%	3.40%
Payments to Customers
Payments to customers	$ 1,405	$ 1,387	$ 1,378
Advertising and Promotion
Global net expenses for advertising, merchandising, sampling, promotion and product development	2,908	2,821	2,772
Global net expenses excluding purchase with purchase, gift with purchase, for advertising, merchandising, sampling, promotion and product development costs	$ 2,689	$ 2,607	$ 2,559

SUMMARY OF SIGNIFICANT ACCOUN57

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Research and Development and Shipping and Handling (Details) - Selling, general and administrative expenses - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Research and Development
Research and development costs	$ 179	$ 191	$ 178
Shipping and Handling
Shipping and handling expenses	$ 400	$ 363	$ 364

SUMMARY OF SIGNIFICANT ACCOUN58

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Licensing Arrangements (Details) - License agreements	12 Months Ended
	Jun. 30, 2017
Finite-lived intangible assets
License agreement, remaining or renewal term	5 years
Minimum
Finite-lived intangible assets
License initial term	5 years
License agreement, remaining or renewal term	5 years
Maximum
Finite-lived intangible assets
License initial term	10 years
License agreement, remaining or renewal term	25 years

SUMMARY OF SIGNIFICANT ACCOUN59

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Standards (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Recently Issued Accounting Standards
Recognized excess tax benefits	$ 42	$ 22
Future minimum lease commitments	$ 2,427

INVESTMENTS - Gains and Losses

INVESTMENTS - Gains and Losses Recorded in AOCI (Details) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Gains and losses recorded in AOCI
Cost	$ 1,499	$ 1,497
Gross Unrealized Gains	3	7
Gross Unrealized Losses	(4)
Fair Value	1,498	1,504
U.S. government and agency securities
Gains and losses recorded in AOCI
Cost	464	560
Gross Unrealized Gains	2	3
Gross Unrealized Losses	(2)
Fair Value	464	563
Foreign government and agency securities
Gains and losses recorded in AOCI
Cost	103	61
Gross Unrealized Losses	(1)
Fair Value	102	61
Corporate notes and bonds
Gains and losses recorded in AOCI
Cost	506	454
Gross Unrealized Gains		3
Gross Unrealized Losses	(1)
Fair Value	505	457
Time deposits
Gains and losses recorded in AOCI
Cost	410	390
Fair Value	410	390
Other securities
Gains and losses recorded in AOCI
Cost	16	32
Gross Unrealized Gains	1	1
Fair Value	$ 17	$ 33

INVESTMENTS - Available-For-Sal

INVESTMENTS - Available-For-Sale Securities by Contractual Maturity (Details) $ in Millions	Jun. 30, 2017USD ($)
Available-for-sale securities by contractual maturity
Due within one year, Cost	$ 604
Due after one through five years, Cost	895
Cost, Total	1,499
Due within one year, Fair Value	605
Due after one through five years, Fair Value	893
Fair Value, Total	$ 1,498

INVESTMENTS - Fair Market Value

INVESTMENTS - Fair Market Value of Investments With Unrealized Losses Not Deemed to be Other-Than Temporarily Impaired (Details) - Available-for-sale securities $ in Millions	12 Months Ended
	Jun. 30, 2017USD ($)
Fair market value of investments with gross unrealized losses that are not deemed to be other-than temporarily impaired
In a Loss Position for Less Than 12 Months, Fair Value	$ 739
In a Loss Position for Less Than 12 Months, Gross Unrealized Losses	(4)
In a Loss Position for More Than 12 Months, Fair Value	$ 9

INVESTMENTS - Gross Gains and L

INVESTMENTS - Gross Gains and Losses Realized on Sales of Investments (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Gross gains and losses realized on sales of investments
Gross realized gains	$ 1	$ 1
Gross realized losses	$ (1)	$ (1)

INVESTMENTS - Sales proceeds fr

INVESTMENTS - Sales proceeds from investments classified as available-for-sale (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Proceeds from sale of available-for-sale securities
Sales proceeds from investments classified as available-for-sale	$ 687	$ 794

INVENTORY AND PROMOTIONAL MER65

INVENTORY AND PROMOTIONAL MERCHANDISE (Details) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
INVENTORY AND PROMOTIONAL MERCHANDISE
Raw materials	$ 334	$ 306
Work in process	194	177
Finished goods	762	622
Promotional merchandise	189	159
Inventory and promotional merchandise, net	$ 1,479	$ 1,264

PROPERTY, PLANT AND EQUIPMENT66

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment
Property, Plant and Equipment	$ 4,019	$ 3,796
Less accumulated depreciation and amortization	(2,348)	(2,213)
Property, Plant and Equipment, net	1,671	1,583	$ 1,490
Cost of assets related to projects in progress	183	186
Depreciation and amortization of property, plant and equipment	$ 428	401	$ 400
Minimum
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	3 years
Maximum
Property, Plant and Equipment
Property, Plant and Equipment, Useful Life	40 years
Land
Property, Plant and Equipment
Property, Plant and Equipment	$ 30	15
Buildings and improvements
Property, Plant and Equipment
Property, Plant and Equipment	$ 192	187
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	$ 668	680
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	$ 1,115	1,041
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	$ 96	84
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	$ 1,918	$ 1,789

ACQUISITION OF BUSINESSES (Deta

ACQUISITION OF BUSINESSES (Details) - USD ($) $ in Millions	Dec. 19, 2016	Jun. 30, 2017	Jun. 30, 2017	Nov. 14, 2016	Jun. 30, 2016	Jun. 30, 2015
Assets acquired and liabilities assumed at the acquisition date
Goodwill		$ 1,916	$ 1,916		$ 1,228	$ 1,145
Too Faced
Acquisition of Businesses
Interest acquired (as a percent)	100.00%
Consideration	$ 1,500
Working capital adjustment		$ 8
Net sales			165
Net earnings (loss)			22
Acquisition-related costs			$ 11
Assets acquired and liabilities assumed at the acquisition date
Cash	28
Accounts receivable	42
Inventory	102
Other current assets	4
Property, plant and equipment	8
Intangible assets	860
Goodwill	607
Total assets acquired	1,651
Accounts payable	60
Other accrued liabilities	15
Deferred income taxes	100
Total liabilities assumed	175
Total purchase price	1,476
Acquired trade receivables
Gross amount of accounts receivable	$ 42
BECCA
Acquisition of Businesses
Interest acquired (as a percent)				100.00%

GOODWILL AND OTHER INTANGIBLE68

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Goodwill and Other Intangible Assets
Goodwill	$ 2,008	$ 1,292	$ 1,210
Accumulated impairments	(92)	(64)	(65)
Changes in goodwill
Goodwill, Beginning Balance	1,228	1,145
Goodwill acquired during the period	716	88
Impairment charges	(28)
Translation adjustments		(5)
Goodwill, Period Increase (Decrease)	688	83
Goodwill, Ending Balance	1,916	1,228
Too Faced And BECCA
Changes in goodwill
Amortizable intangible assets	$ 397
Weighted average amortization period	10 years
Non-amortizable intangible assets	$ 623
Goodwill acquired during the period	705
Goodwill expected to be deductible for tax purposes arising from acquisitions	316
Bobbi Brown brand
Changes in goodwill
Goodwill, Period Increase (Decrease)	11
Skin Care
Goodwill and Other Intangible Assets
Goodwill	184	184	184
Accumulated impairments	(35)	(29)	(29)
Changes in goodwill
Goodwill, Beginning Balance	155	155
Impairment charges	(6)
Goodwill, Period Increase (Decrease)	(6)
Goodwill, Ending Balance	149	155
Makeup
Goodwill and Other Intangible Assets
Goodwill	1,176	460	450
Changes in goodwill
Goodwill, Beginning Balance	460	450
Goodwill acquired during the period	716	10
Goodwill, Period Increase (Decrease)	716	10
Goodwill, Ending Balance	1,176	460
Fragrance
Goodwill and Other Intangible Assets
Goodwill	255	255	181
Accumulated impairments	(22)
Changes in goodwill
Goodwill, Beginning Balance	255	181
Goodwill acquired during the period		78
Impairment charges	(22)
Translation adjustments		(4)
Goodwill, Period Increase (Decrease)	(22)	74
Goodwill, Ending Balance	233	255
Hair Care
Goodwill and Other Intangible Assets
Goodwill	393	393	395
Accumulated impairments	(35)	(35)	$ (36)
Changes in goodwill
Goodwill, Beginning Balance	358	359
Translation adjustments		(1)
Goodwill, Period Increase (Decrease)		(1)
Goodwill, Ending Balance	$ 358	$ 358

GOODWILL AND OTHER INTANGIBLE69

GOODWILL AND OTHER INTANGIBLE ASSETS - Finite and Indefinite-Lived Assets (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Intangible assets
Total intangible assets	$ 1,327	$ 1,327	$ 344
Amortizable intangible assets:
Gross Carrying Value	739	739	342
Accumulated Amortization	322	322	288
Total Net Book Value	417	417	54
Aggregate amortization expense for amortizable intangible assets		35	16	$ 14
Estimated aggregate amortization expense
Estimated aggregate amortization expense for fiscal year 2018	52	52
Estimated aggregate amortization expense for fiscal year 2019	51	51
Estimated aggregate amortization expense for fiscal year 2020	44	44
Estimated aggregate amortization expense for fiscal year 2021	43	43
Estimated aggregate amortization expense for fiscal year 2022	42	42
Goodwill impairment		28
Impairment of other intangible assets		3
Combined goodwill and other intangible asset impairment charges	31	31
The Americas
Estimated aggregate amortization expense
Combined goodwill and other intangible asset impairment charges		17
Europe, the Middle East and Africa
Estimated aggregate amortization expense
Combined goodwill and other intangible asset impairment charges		14
Skin Care
Estimated aggregate amortization expense
Goodwill impairment		6
Combined goodwill and other intangible asset impairment charges		9
Fragrance
Estimated aggregate amortization expense
Goodwill impairment		22
Combined goodwill and other intangible asset impairment charges		22
Trademarks and other
Non-amortizable intangible assets:
Trademarks and other	910	910	290
Customer lists and other
Amortizable intangible assets:
Gross Carrying Value	696	696	299
Accumulated Amortization	279	279	245
Total Net Book Value	417	417	54
License agreements
Amortizable intangible assets:
Gross Carrying Value	43	43	43
Accumulated Amortization	$ 43	$ 43	$ 43
License agreements | Minimum
Intangible assets
Finite-Lived Intangible Asset, Useful Life		5 years
License agreements | Maximum
Intangible assets
Finite-Lived Intangible Asset, Useful Life		10 years
Other | Minimum
Intangible assets
Finite-Lived Intangible Asset, Useful Life		2 years
Other | Maximum
Intangible assets
Finite-Lived Intangible Asset, Useful Life		20 years

CHARGES ASSOCIATED WITH RESTR70

CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES - Charges Associated with Restructuring and Other Activities (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Restructuring and related costs
Restructuring and other charges		$ 134
Sales Returns (included in Net Sales)
Restructuring and related costs
Restructuring and other charges		1
Restructuring Charges.
Restructuring and related costs
Restructuring and other charges		121
Other Charges.
Restructuring and related costs
Restructuring and other charges		12
Leading Beauty Forward
Restructuring and related costs
Restructuring and other charges	$ 212	81
Leading Beauty Forward | Sales Returns (included in Net Sales)
Restructuring and related costs
Restructuring and other charges	2	1
Leading Beauty Forward | Cost of sales
Restructuring and related costs
Restructuring and other charges	15
Leading Beauty Forward | Restructuring Charges.
Restructuring and related costs
Restructuring and other charges	122	75
Leading Beauty Forward | Other Charges.
Restructuring and related costs
Restructuring and other charges	$ 73	5
Global Technology Infrastructure
Restructuring and related costs
Restructuring and other charges		53
Global Technology Infrastructure | Restructuring Charges.
Restructuring and related costs
Restructuring and other charges		46
Global Technology Infrastructure | Other Charges.
Restructuring and related costs
Restructuring and other charges		$ 7

CHARGES ASSOCIATED WITH RESTR71

CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES - Leading Beauty Forward (Details) - Leading Beauty Forward $ in Millions	12 Months Ended
	Jun. 30, 2017USD ($)employee
Charges associated with restructuring and other activities
Restructuring and other charges expected to be incurred	$ 461
Estimated net reduction in global positions (as a percentage)	2.50%
Minimum
Charges associated with restructuring and other activities
Restructuring and other charges expected to be incurred	$ 600
Estimated net reduction in global positions | employee	900
Maximum
Charges associated with restructuring and other activities
Restructuring and other charges expected to be incurred	$ 700
Estimated net reduction in global positions | employee	1,200

CHARGES ASSOCIATED WITH RESTR72

CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES - Approved Restructuring Activities by Major Cost Type (Details) - Leading Beauty Forward $ in Millions	Jun. 30, 2017USD ($)
Restructuring and related costs
Restructuring and related costs, approved costs, 2016 fiscal year	$ 190
Restructuring and related costs, approved costs, current period	271
Restructuring and Related Cost, Expected Cost	461
Sales Returns (included in Net Sales)
Restructuring and related costs
Restructuring and related costs, approved costs, 2016 fiscal year	4
Restructuring and related costs, approved costs, current period	11
Restructuring and Related Cost, Expected Cost	15
Cost of sales
Restructuring and related costs
Restructuring and related costs, approved costs, 2016 fiscal year	28
Restructuring and related costs, approved costs, current period	10
Restructuring and Related Cost, Expected Cost	38
Restructuring Charges.
Restructuring and related costs
Restructuring and related costs, approved costs, 2016 fiscal year	87
Restructuring and related costs, approved costs, current period	132
Restructuring and Related Cost, Expected Cost	219
Restructuring Charges. | Employee-Related Costs
Restructuring and related costs
Restructuring and related costs, approved costs, 2016 fiscal year	75
Restructuring and related costs, approved costs, current period	126
Restructuring and Related Cost, Expected Cost	201
Restructuring Charges. | Asset-Related Costs
Restructuring and related costs
Restructuring and related costs, approved costs, 2016 fiscal year	3
Restructuring and related costs, approved costs, current period	1
Restructuring and Related Cost, Expected Cost	4
Restructuring Charges. | Contract Terminations
Restructuring and related costs
Restructuring and related costs, approved costs, 2016 fiscal year	5
Restructuring and Related Cost, Expected Cost	5
Restructuring Charges. | Other Exit Costs
Restructuring and related costs
Restructuring and related costs, approved costs, 2016 fiscal year	4
Restructuring and related costs, approved costs, current period	5
Restructuring and Related Cost, Expected Cost	9
Other Charges.
Restructuring and related costs
Restructuring and related costs, approved costs, 2016 fiscal year	71
Restructuring and related costs, approved costs, current period	118
Restructuring and Related Cost, Expected Cost	$ 189

CHARGES ASSOCIATED WITH RESTR73

CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES - Cumulative Restructuring Charges by Major Cost Type (Details) - Leading Beauty Forward $ in Millions	Jun. 30, 2017USD ($)
Restructuring and related costs
Restructuring and related costs, 2016 fiscal year	$ 81
Restructuring and related costs, current period	212
Restructuring and related costs	293
Sales Returns (included in Net Sales)
Restructuring and related costs
Restructuring and related costs, 2016 fiscal year	1
Restructuring and related costs, current period	2
Restructuring and related costs	3
Cost of sales
Restructuring and related costs
Restructuring and related costs, current period	15
Restructuring and related costs	15
Restructuring Charges.
Restructuring and related costs
Restructuring and related costs, 2016 fiscal year	75
Restructuring and related costs, current period	122
Restructuring and related costs	197
Restructuring Charges. | Employee-Related Costs
Restructuring and related costs
Restructuring and related costs, 2016 fiscal year	74
Restructuring and related costs, current period	116
Restructuring and related costs	190
Restructuring Charges. | Asset-Related Costs
Restructuring and related costs
Restructuring and related costs, 2016 fiscal year	1
Restructuring and related costs, current period	2
Restructuring and related costs	3
Restructuring Charges. | Contract Terminations
Restructuring and related costs
Restructuring and related costs, current period	2
Restructuring and related costs	2
Restructuring Charges. | Other Exit Costs
Restructuring and related costs
Restructuring and related costs, current period	2
Restructuring and related costs	2
Other Charges.
Restructuring and related costs
Restructuring and related costs, 2016 fiscal year	5
Restructuring and related costs, current period	73
Restructuring and related costs	$ 78

CHARGES ASSOCIATED WITH RESTR74

CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES - Accrued Restructuring Charges (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Restructuring Costs
Charges				$ 212	$ 134
Leading Beauty Forward
Restructuring Costs
Beginning balance			$ 150	73
Charges				122	75
Cash payments				(43)
Non-cash asset write-offs				(2)	(1)
Translation adjustments					(1)
Ending balance				150	73
Employee-Related Costs | Leading Beauty Forward
Restructuring Costs
Beginning balance			150	73
Charges				116	74
Cash payments				(39)
Translation adjustments					(1)
Ending balance				150	73
Asset-Related Costs | Leading Beauty Forward
Restructuring Costs
Charges				2	1
Non-cash asset write-offs				(2)	$ (1)
Contract Terminations | Leading Beauty Forward
Restructuring Costs
Charges				2
Cash payments				(2)
Other Exit Costs | Leading Beauty Forward
Restructuring Costs
Charges				2
Cash payments				$ (2)
Forecast | Leading Beauty Forward
Restructuring Costs
Accrued restructuring charges expected to result in cash expenditures funded from cash provided by operations	$ 6	$ 47	$ 97

CHARGES ASSOCIATED WITH RESTR75

CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES - GTI Restructuring (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Restructuring charges and the related activities
Restructuring Charges	$ 212	$ 134
Global Technology Infrastructure
Restructuring charges and the related activities
Restructuring Charges		46
Other charges		7
Global Technology Infrastructure | Contract Terminations
Restructuring charges and the related activities
Restructuring Charges		24
Global Technology Infrastructure | Asset-Related Costs
Restructuring charges and the related activities
Restructuring Charges		18
Global Technology Infrastructure | Employee-Related Costs
Restructuring charges and the related activities
Restructuring Charges		$ 4

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2017	Jun. 30, 2016
Current:
Federal		$ 218	$ 224	$ 237
Foreign		253	293	251
State and local		8	11	32
Total		479	528	520
Deferred:
Federal		(58)	(73)	(56)
Foreign		(61)	(22)	2
State and local		1	1	1
Total		(118)	(94)	(53)
Provision for income taxes		361	434	467
Amounts contributed by the Company's foreign operations included in earnings before income taxes		$ 1,676	$ 1,448	$ 1,420
Reconciliation of the U.S. federal statutory income tax rate and entity's actual effective tax rate on earnings before income taxes
Provision for income taxes at statutory rate (as a percent)		35.00%	35.00%	35.00%
Increase (decrease) due to:
State and local income taxes, net of federal tax benefit (as a percent)		0.70%	0.90%	1.10%
Taxation of foreign operations (as a percent)		(7.50%)	(8.00%)	(6.80%)
China deferred tax asset valuation allowance reversal (as a percent)		(4.60%)
Income tax reserve adjustments (as a percent)		(1.20%)	(0.30%)	0.50%
Reversal of deferred tax asset		(4.60%)
Other, net (as a percent)		(0.10%)	0.30%	0.10%
Effective tax rate (as a percent)		22.30%	27.90%	29.90%
China deferred tax asset valuation allowance	$ 75
Undistributed earnings of foreign subsidiaries on which Federal income and foreign withholding taxes have not been provided					$ 4,136
Deferred tax assets:
Compensation related expenses					256	$ 240
Inventory obsolescence and other inventory related reserves					97	86
Retirement benefit obligations					124	129
Various accruals not currently deductible					189	197
Net operating loss, credit and other carryforwards					65	111
Unrecognized state tax benefits and accrued interest					24	25
Other differences between tax and financial statement values					91	88
Deferred tax assets, gross					846	876
Valuation allowance for deferred tax assets					(42)	(118)
Total deferred tax assets					804	758
Deferred tax liabilities:
Depreciation and amortization					(465)	(293)
Other differences between tax and financial statement values					(17)	(43)
Total deferred tax liabilities					(482)	(336)
Total net deferred tax assets					322	422
Net operating loss and other carryforwards					230	410
Portion of net operating loss and other carryforwards with indefinite carryforward period					218
Deferred tax assets, net of valuation allowances recorded to reflect the tax benefits of the carryforwards not utilized to date					34	4
Gross unrecognized tax benefits	68	$ 82	$ 78	$ 78	68	82
Total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate					42
Gross interest and penalty (expense) benefit		5
Total gross accrued interest and penalties related to unrecognized tax benefits					$ 13	$ 18
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits
Beginning of the year balance of gross unrecognized tax benefits		82	78
Gross amounts of increases as a result of tax positions taken during a prior period		6	16
Gross amounts of decreases as a result of tax positions taken during a prior period		(23)	(14)
Gross amounts of increases as a result of tax positions taken during the current period		10	12
Amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities		(5)	(8)
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statutes of limitations		(2)	(2)
End of year balance of gross unrecognized tax benefits	$ 68	$ 68	$ 82	$ 78

OTHER ACCRUED LIABILITIES (Deta

OTHER ACCRUED LIABILITIES (Details) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
OTHER ACCRUED LIABILITIES
Advertising, merchandising and sampling	$ 319	$ 283
Employee compensation	522	504
Payroll and other taxes	190	163
Other	768	682
Total	$ 1,799	$ 1,632

DEBT (Details)

DEBT (Details) - USD ($) $ in Millions	1 Months Ended						2 Months Ended	12 Months Ended
	Feb. 28, 2017	Nov. 30, 2016	Oct. 31, 2016	Apr. 30, 2016	Apr. 30, 2007	May 31, 2003	May 31, 2015	Jun. 30, 2017	Jun. 30, 2016	Aug. 18, 2017	May 31, 2016
Current and long-term debt and available financing
Current and long-term debt								$ 3,572	$ 2,242
Less current debt including current maturities								(189)	(332)
Long-term debt, excluding current maturities								3,383	1,910
Available financing, committed								1,500
Available financing, uncommitted								1,470
4.15% Senior Notes, due March 15, 2047 ("2047 Senior Notes")
Current and long-term debt and available financing
Current and long-term debt								$ 493
Interest rate, stated percentage								4.15%
Price (as a percent)								99.739%
Yield (as a percent)								4.165%
Aggregate principal amount	$ 500							$ 500
Unamortized Debt (Discount) Premium								(2)
Debt Issuance Costs								(5)
4.15% Senior Notes, due March 15, 2047 ("2047 Senior Notes") | Treasury lock agreements
Current and long-term debt and available financing
Yield (as a percent)		4.17%
Weighted-average all-in rate (as a percent)		3.01%
Gain (loss) on derivative instruments recognized in other comprehensive income		$ 3
Notional amount		$ 350
4.375% Senior Notes, due June 15, 2045 ("2045 Senior Notes")
Current and long-term debt and available financing
Current and long-term debt								$ 455	455
Interest rate, stated percentage								4.375%
Price (as a percent)								97.999%
Yield (as a percent)								4.497%
Aggregate principal amount								$ 300			$ 150
Aggregate amount outstanding of senior notes											$ 450
Unamortized Debt (Discount) Premium								(6)
Debt Issuance Costs								$ (3)
4.375% Senior Notes, due June 15, 2045 ("2045 Senior Notes") | Interest rate swap contracts
Current and long-term debt and available financing
Yield (as a percent)							4.216%
Weighted-average all-in rate (as a percent)							2.38%
Gain (loss) on derivative instruments recognized in other comprehensive income							$ 18
Notional amount							$ 300
4.375% Senior Notes, due June 15, 2045 ("2045 Senior Notes - Addendum")
Current and long-term debt and available financing
Price (as a percent)								110.847%
Yield (as a percent)								3.753%
Aggregate principal amount								$ 150
Unamortized Debt (Discount) Premium								16
Debt Issuance Costs								(2)
3.70% Senior Notes due August 15, 2042 ("2042 Senior Notes")
Current and long-term debt and available financing
Current and long-term debt								$ 247	247
Interest rate, stated percentage								3.70%
Price (as a percent)								99.567%
Yield (as a percent)								3.724%
Aggregate principal amount								$ 250
Unamortized Debt (Discount) Premium								(1)
Debt Issuance Costs								(2)
6.00% Senior Notes, due May 15, 2037 ("2037 Senior Notes")
Current and long-term debt and available financing
Current and long-term debt								$ 294	293
Interest rate, stated percentage								6.00%
Price (as a percent)								98.722%
Yield (as a percent)								6.093%
Aggregate principal amount								$ 300
Unamortized Debt (Discount) Premium								(3)
Debt Issuance Costs								(3)
6.00% Senior Notes, due May 15, 2037 ("2037 Senior Notes") | Interest rate swap contracts
Current and long-term debt and available financing
Yield (as a percent)					6.181%
Weighted-average all-in rate (as a percent)					5.45%
Gain (loss) on derivative instruments recognized in other comprehensive income					$ (1)
Notional amount					$ 210
5.75% Senior Notes, due October 15, 2033 ("2033 Senior Notes")
Current and long-term debt and available financing
Current and long-term debt								$ 197	197
Interest rate, stated percentage								5.75%
Price (as a percent)								98.645%
Yield (as a percent)								5.846%
Aggregate principal amount								$ 200
Unamortized Debt (Discount) Premium								(2)
Debt Issuance Costs								(1)
5.75% Senior Notes, due October 15, 2033 ("2033 Senior Notes") | Treasury lock agreements
Current and long-term debt and available financing
Yield (as a percent)						5.395%
Weighted-average all-in rate (as a percent)						4.53%
Cash paid / (received) on settlement of derivative						$ 15
Notional amount						$ 195
3.15% Senior Notes, due March 15, 2027 ("2027 Senior Notes")
Current and long-term debt and available financing
Current and long-term debt								$ 497
Interest rate, stated percentage								3.15%
Price (as a percent)								99.963%
Yield (as a percent)								3.154%
Aggregate principal amount	500							$ 500
Debt Issuance Costs								(3)
3.15% Senior Notes, due March 15, 2027 ("2027 Senior Notes") | Treasury lock agreements
Current and long-term debt and available financing
Yield (as a percent)		3.18%
Weighted-average all-in rate (as a percent)		2.37%
Gain (loss) on derivative instruments recognized in other comprehensive income		$ 2
Notional amount		450
2.35% Senior Notes due August 15, 2022 ("2022 Senior Notes")
Current and long-term debt and available financing
Current and long-term debt								$ 252	267
Interest rate, stated percentage								2.35%
Price (as a percent)								99.911%
Yield (as a percent)								2.36%
Aggregate principal amount								$ 250
Interest rate swap adjustments								3
Debt Issuance Costs								$ (1)
2.35% Senior Notes due August 15, 2022 ("2022 Senior Notes") | LIBOR
Current and long-term debt and available financing
Number of months for LIBOR calculation								3 months
2.35% Senior Notes due August 15, 2022 ("2022 Senior Notes") | Interest rate swap contracts
Current and long-term debt and available financing
Notional amount								$ 250
1.70% Senior Notes, due May 10, 2021 ("2021 Senior Notes")
Current and long-term debt and available financing
Current and long-term debt								$ 445	448
Interest rate, stated percentage								1.70%
Price (as a percent)								99.976%
Yield (as a percent)								1.705%
Aggregate principal amount								$ 450
Interest rate swap adjustments								(3)
Debt Issuance Costs								$ (2)
1.70% Senior Notes, due May 10, 2021 ("2021 Senior Notes") | LIBOR
Current and long-term debt and available financing
Number of months for LIBOR calculation								3 months
1.70% Senior Notes, due May 10, 2021 ("2021 Senior Notes") | Interest rate swap contracts
Current and long-term debt and available financing
Notional amount								$ 450
1.70% Senior Notes, due May 10, 2021 ("2021 Senior Notes") | Treasury lock agreements
Current and long-term debt and available financing
Yield (as a percent)				1.844%
Weighted-average all-in rate (as a percent)				1.27%
Cash paid / (received) on settlement of derivative				$ 1
Notional amount				$ 400
1.80% Senior Notes, due February 7, 2020 ("2020 Senior Notes")
Current and long-term debt and available financing
Current and long-term debt								$ 498
Interest rate, stated percentage								1.80%
Price (as a percent)								99.986%
Yield (as a percent)								1.805%
Aggregate principal amount	500							$ 500
Debt Issuance Costs								$ (2)
1.80% Senior Notes, due February 7, 2020 ("2020 Senior Notes") | LIBOR
Current and long-term debt and available financing
Number of months for LIBOR calculation								3 months
1.80% Senior Notes, due February 7, 2020 ("2020 Senior Notes") | Interest rate swap contracts
Current and long-term debt and available financing
Notional amount								$ 250
5.55% Senior Notes, due May 15, 2017 ("2017 Senior Notes")
Current and long-term debt and available financing
Current and long-term debt									307
Interest rate, stated percentage								5.55%
Refinance of principal amount debt	300
Commercial paper that matured through July 2017 (1.07% interest rate)
Current and long-term debt and available financing
Current and long-term debt								$ 170
Interest rate, stated percentage								1.07%
Available financing, uncommitted								$ 1,330
Aggregate principal amount	1,500	3,000	$ 1,500
Commercial paper, outstanding amount								170		$ 431
Other long-term borrowings
Current and long-term debt and available financing
Current and long-term debt								5	3
Other current borrowings
Current and long-term debt and available financing
Current and long-term debt								19	25
Available financing, uncommitted								140
Monthly average amount outstanding								$ 17	$ 31
Weighted-average interest rate (as a percent)								11.20%	12.50%
Revolving credit facility
Current and long-term debt and available financing
Available financing, committed								$ 1,500
Revolving Credit Facility Expiring November 2017
Current and long-term debt and available financing
Maximum borrowing capacity		$ 1,500
Termination of undrawn senior unsecured credit agreement	$ 1,500
Debt instrument term	364 days	364 days
Revolving Credit Facility Expiring July 2020
Current and long-term debt and available financing
Maximum borrowing capacity			1,000
Revolving Credit Facility Expiring October 2021
Current and long-term debt and available financing
Annual fee			1
Maximum borrowing capacity			$ 1,500
Debt Instrument Term Extension			2 years
Amount of borrowings outstanding								$ 0
Maximum borrowing capacity for multi-currency loans			$ 500
Incurred costs to establish facility			1
Amount of financial obligation due, which if exceeded and which there is a failure to pay, would result in an event of default and acceleration of the maturity date			$ 175

DERIVATIVE FINANCIAL INSTRUME79

DERIVATIVE FINANCIAL INSTRUMENTS - Derivative Instruments Included in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Derivatives, Fair Value
Derivative Asset, Total	$ 13	$ 66
Derivative Liability, Total	49	26
Derivatives designated as hedging instruments
Derivatives, Fair Value
Derivative Asset, Total	10	55
Derivative Liability, Total	47	18
Derivatives designated as hedging instruments | Foreign currency forward contracts | Prepaid expenses and other current assets
Derivatives, Fair Value
Derivative asset, fair value	7	37
Derivatives designated as hedging instruments | Foreign currency forward contracts | Other accrued liabilities
Derivatives, Fair Value
Derivative liability, fair value	44	18
Derivatives designated as hedging instruments | Interest rate swap contracts | Prepaid expenses and other current assets
Derivatives, Fair Value
Derivative asset, fair value	3	18
Derivatives designated as hedging instruments | Interest rate swap contracts | Other accrued liabilities
Derivatives, Fair Value
Derivative liability, fair value	3
Derivatives not designated as hedging instruments | Foreign currency forward contracts | Prepaid expenses and other current assets
Derivatives, Fair Value
Derivative asset, fair value	3	11
Derivatives not designated as hedging instruments | Foreign currency forward contracts | Other accrued liabilities
Derivatives, Fair Value
Derivative liability, fair value	$ 2	$ 8

DERIVATIVE FINANCIAL INSTRUME80

DERIVATIVE FINANCIAL INSTRUMENTS - Gain (Loss) on Derivative Financial Instruments (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
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	$ (2)	$ 5
Derivatives in cash flow hedging relationships
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)	(13)	48
Amount of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion)	41	66
Gain (loss) recognized in earnings related to the amount excluded from effectiveness testing	3	(1)
Gain (loss) recognized in earnings related to the ineffective portion of the hedging relationships		0
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)	(18)	48
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)	10	17
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)	30	48
Derivatives in cash flow hedging relationships | Interest rate-related derivatives
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)	5
Derivatives in cash flow hedging relationships | Interest rate-related derivatives | Interest expense
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Reclassified from AOCI into Earnings (Effective Portion)	1	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	$ (18)	$ 18

DERIVATIVE FINANCIAL INSTRUME81

DERIVATIVE FINANCIAL INSTRUMENTS - Cash-Flow Hedges, Fair Value Hedges, Credit Risk (Details) $ in Millions	12 Months Ended
	Jun. 30, 2017USD ($)Agency	Jun. 30, 2016USD ($)
1.80% Senior Notes, due February 7, 2020 ("2020 Senior Notes") | LIBOR
Fair Value Hedges
Number of months for LIBOR calculation	3 months
1.70% Senior Notes, due May 10, 2021 ("2021 Senior Notes") | LIBOR
Fair Value Hedges
Number of months for LIBOR calculation	3 months
2.35% Senior Notes due August 15, 2022 ("2022 Senior Notes") | LIBOR
Fair Value Hedges
Number of months for LIBOR calculation	3 months
Derivative
Credit Risk
Minimum number of nationally recognized rating agencies | Agency	2
Maximum exposure to credit risk in the event of nonperformance by counterparties, gross fair value of contracts in asset positions	$ 13
Interest rate swap contracts | 1.80% Senior Notes, due February 7, 2020 ("2020 Senior Notes")
Fair Value Hedges
Notional amount	250
Interest rate swap contracts | 1.70% Senior Notes, due May 10, 2021 ("2021 Senior Notes")
Fair Value Hedges
Notional amount	450
Interest rate swap contracts | 2.35% Senior Notes due August 15, 2022 ("2022 Senior Notes")
Fair Value Hedges
Notional amount	250
Derivatives in cash flow hedging relationships
Foreign Currency Cash-Flow Hedges
Amount expected to be reclassified from AOCI into earnings, net of tax, within the next twelve months	18
Accumulated gain (loss) on derivative instruments in AOCI, before tax	(4)	$ 50
Derivatives in cash flow hedging relationships | Foreign currency forward contracts
Foreign Currency Cash-Flow Hedges
Notional amount	2,895	3,265
Derivatives in cash flow hedging relationships | Foreign currency forward contracts | Euro
Foreign Currency Cash-Flow Hedges
Notional amount	295	962
Derivatives in cash flow hedging relationships | Foreign currency forward contracts | British pound
Foreign Currency Cash-Flow Hedges
Notional amount	541	497
Derivatives in cash flow hedging relationships | Foreign currency forward contracts | Chinese yuan
Foreign Currency Cash-Flow Hedges
Notional amount	160	313
Derivatives in cash flow hedging relationships | Foreign currency forward contracts | Swiss franc
Foreign Currency Cash-Flow Hedges
Notional amount	457	256
Derivatives in cash flow hedging relationships | Foreign currency forward contracts | Canadian dollar
Foreign Currency Cash-Flow Hedges
Notional amount	148
Derivatives in cash flow hedging relationships | Foreign currency forward contracts | Hong Kong dollar
Foreign Currency Cash-Flow Hedges
Notional amount	355	274
Derivatives in cash flow hedging relationships | Foreign currency forward contracts | Australian dollar
Foreign Currency Cash-Flow Hedges
Notional amount		157
Derivatives in cash flow hedging relationships | Foreign currency forward contracts | Taiwan dollar
Foreign Currency Cash-Flow Hedges
Notional amount		$ 130
Derivatives in cash flow hedging relationships | Foreign currency forward contracts | Thailand baht
Foreign Currency Cash-Flow Hedges
Notional amount	126
Derivatives in Fair Value Hedging Relationships | Interest rate swap contracts | 1.80% Senior Notes, due February 7, 2020 ("2020 Senior Notes")
Fair Value Hedges
Notional amount	$ 250
Derivatives in Fair Value Hedging Relationships | Interest rate swap contracts | 1.80% Senior Notes, due February 7, 2020 ("2020 Senior Notes") | LIBOR
Fair Value Hedges
Number of months for LIBOR calculation	3 months
Derivatives in Fair Value Hedging Relationships | Interest rate swap contracts | 1.70% Senior Notes, due May 10, 2021 ("2021 Senior Notes")
Fair Value Hedges
Notional amount	$ 450
Derivatives in Fair Value Hedging Relationships | Interest rate swap contracts | 1.70% Senior Notes, due May 10, 2021 ("2021 Senior Notes") | LIBOR
Fair Value Hedges
Number of months for LIBOR calculation	3 months
Derivatives in Fair Value Hedging Relationships | Interest rate swap contracts | 2.35% Senior Notes due August 15, 2022 ("2022 Senior Notes")
Fair Value Hedges
Notional amount	$ 250
Derivatives in Fair Value Hedging Relationships | Interest rate swap contracts | 2.35% Senior Notes due August 15, 2022 ("2022 Senior Notes") | LIBOR
Fair Value Hedges
Number of months for LIBOR calculation	3 months

FAIR VALUE MEASUREMENTS - Hiera

FAIR VALUE MEASUREMENTS - Hierarchy For Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Assets:
Available-for-sale securities	$ 1,498	$ 1,504
U.S. government and agency securities
Assets:
Available-for-sale securities	464	563
Foreign government and agency securities
Assets:
Available-for-sale securities	102	61
Corporate notes and bonds
Assets:
Available-for-sale securities	505	457
Time deposits
Assets:
Available-for-sale securities	410	390
Other securities
Assets:
Available-for-sale securities	17	33
Recurring basis | Level 2
Assets:
Foreign currency forward contracts	10	48
Interest rate swap contracts	3	18
Total	1,511	1,570
Liabilities:
Foreign currency forward contracts	46	26
Interest rate swap contracts	3
Total	49	26
Recurring basis | Level 3
Liabilities:
Contingent consideration	139	196
Total	139	196
Recurring basis | U.S. government and agency securities | Level 2
Assets:
Available-for-sale securities	464	563
Recurring basis | Foreign government and agency securities | Level 2
Assets:
Available-for-sale securities	102	61
Recurring basis | Corporate notes and bonds | Level 2
Assets:
Available-for-sale securities	505	457
Recurring basis | Time deposits | Level 2
Assets:
Available-for-sale securities	410	390
Recurring basis | Other securities | Level 2
Assets:
Available-for-sale securities	17	33
Fair Value
Assets:
Available-for-sale securities	1,498	1,504
Liabilities:
Contingent consideration	139	196
Fair Value | Recurring basis
Assets:
Foreign currency forward contracts	10	48
Interest rate swap contracts	3	18
Total	1,511	1,570
Liabilities:
Foreign currency forward contracts	46	26
Interest rate swap contracts	3
Contingent consideration	139	196
Total	188	222
Fair Value | Recurring basis | U.S. government and agency securities
Assets:
Available-for-sale securities	464	563
Fair Value | Recurring basis | Foreign government and agency securities
Assets:
Available-for-sale securities	102	61
Fair Value | Recurring basis | Corporate notes and bonds
Assets:
Available-for-sale securities	505	457
Fair Value | Recurring basis | Time deposits
Assets:
Available-for-sale securities	410	390
Fair Value | Recurring basis | Other securities
Assets:
Available-for-sale securities	$ 17	$ 33

FAIR VALUE MEASUREMENTS - Estim

FAIR VALUE MEASUREMENTS - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2017	Jun. 30, 2016
Nonderivatives
Available-for-sale securities					$ 1,498	$ 1,504
Derivatives
Derivative Asset					13	66
Derivative liability					(49)	(26)
Impairment charges of certain non financial assets measured at fair value on a nonrecurring basis
Goodwill impairment		$ 28
Goodwill				$ 1,145	1,916	1,228
Changes in the fair value of the contingent consideration obligations
Changes in fair value of contingent consideration	$ 58	57	$ (8)	(7)
Skin Care
Impairment charges of certain non financial assets measured at fair value on a nonrecurring basis
Goodwill impairment		6
Goodwill				155	149	155
Fragrance
Impairment charges of certain non financial assets measured at fair value on a nonrecurring basis
Goodwill impairment		$ 22
Goodwill				$ 181	233	255
Level 2 | Additional Purchase Price Payable
Fair value inputs
Risk-adjusted discount rate (as a percent)		1.00%
Level 3 | Contingent Consideration | Monte Carlo Method
Fair value inputs
Revenue and earnings before income tax, depreciation and amortization correlation coefficient factor (as a percent)		80.00%
Level 3 | Non recurring basis
Impairment charges of certain non financial assets measured at fair value on a nonrecurring basis
Goodwill impairment		$ 28
Total		31
Level 3 | Non recurring basis | Customer lists and other
Impairment charges of certain non financial assets measured at fair value on a nonrecurring basis
Other intangible assets, net		1
Level 3 | Non recurring basis | Trademarks
Impairment charges of certain non financial assets measured at fair value on a nonrecurring basis
Other intangible assets, net		$ 2
Minimum | Level 3 | Contingent Consideration | Monte Carlo Method
Fair value inputs
Risk-adjusted discount rate (as a percent)		1.50%
Revenue volatility (as a percent)		3.70%
Asset volatility (as a percent)		21.10%
Revenue discount rates (as a percent)		3.00%
Earnings before income tax, depreciation and amortization discount rates (as a percent)		10.70%
Minimum | Swap yield curve | Foreign currency forward contracts
Foreign currency forward contracts
Contract maturities		12 months
Maximum | Level 3 | Contingent Consideration | Monte Carlo Method
Fair value inputs
Risk-adjusted discount rate (as a percent)		2.30%
Revenue volatility (as a percent)		8.50%
Asset volatility (as a percent)		27.30%
Revenue discount rates (as a percent)		4.80%
Earnings before income tax, depreciation and amortization discount rates (as a percent)		13.10%
Maximum | LIBOR | Foreign currency forward contracts
Foreign currency forward contracts
Contract maturities		12 months
Carrying Amount
Nonderivatives
Cash and cash equivalents					1,136	914
Available-for-sale securities					1,498	1,504
Current and long-term debt					3,572	2,242
Additional purchase price payable					38	37
Contingent consideration	139	$ 196	196		139	196
Changes in the fair value of the contingent consideration obligations
Contingent consideration at the beginning of the period		196
Contingent consideration at the end of the period	139	139	196
Carrying Amount | Foreign currency forward contracts
Derivatives
Derivative Asset						22
Derivative liability					(36)
Carrying Amount | Interest rate swap contracts
Derivatives
Derivative Asset						18
Fair Value
Nonderivatives
Cash and cash equivalents					1,136	914
Available-for-sale securities					1,498	1,504
Current and long-term debt					3,759	2,482
Additional purchase price payable					38	37
Contingent consideration	139	196	196		139	196
Changes in the fair value of the contingent consideration obligations
Contingent consideration at the beginning of the period		196
Contingent consideration at the end of the period	$ 139	139	$ 196
Fair Value | Selling, general and administrative expenses
Changes in the fair value of the contingent consideration obligations
Changes in fair value of contingent consideration		57
Fair Value | Selling, general and administrative expenses | The Americas
Changes in the fair value of the contingent consideration obligations
Changes in fair value of contingent consideration		43
Fair Value | Selling, general and administrative expenses | Europe, the Middle East and Africa
Changes in the fair value of the contingent consideration obligations
Changes in fair value of contingent consideration		14
Fair Value | Selling, general and administrative expenses | Skin Care
Changes in the fair value of the contingent consideration obligations
Changes in fair value of contingent consideration		24
Fair Value | Selling, general and administrative expenses | Fragrance
Changes in the fair value of the contingent consideration obligations
Changes in fair value of contingent consideration		33
Fair Value | Level 3 | Non recurring basis
Impairment charges of certain non financial assets measured at fair value on a nonrecurring basis
Goodwill					6
Total		38
Fair Value | Level 3 | Non recurring basis | Trademarks
Impairment charges of certain non financial assets measured at fair value on a nonrecurring basis
Other intangible assets, net		$ 32
Fair Value | Foreign currency forward contracts
Derivatives
Derivative Asset						22
Derivative liability					$ (36)
Fair Value | Interest rate swap contracts
Derivatives
Derivative Asset						$ 18

PENSION, DEFERRED COMPENSATIO84

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS - Benefit Obligation, Plan Assets and Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Change in plan assets:
Fair value of plan assets at beginning of year	$ 1,305
Fair value of plan assets at end of year	1,366	$ 1,305
Amounts recognized in the Balance Sheet consist of:
Accumulated other comprehensive loss	325
Pension Plans | United States
Change in benefit obligation:
Benefit obligation at beginning of year	877	794
Service cost	37	32	$ 32
Interest cost	30	33	30
Actuarial loss (gain)	(1)	62
Benefits, expenses, taxes and premiums paid	(40)	(44)
Benefit obligation at end of year	903	877	794
Change in plan assets:
Fair value of plan assets at beginning of year	743	721
Actual return on plan assets	71	27
Employer contributions	7	39
Benefits, expenses, taxes and premium paid	(40)	(44)
Fair value of plan assets at end of year	781	743	721
Funded status	(122)	(134)
Amounts recognized in the Balance Sheet consist of:
Other assets	12
Other accrued liabilities	(23)	(17)
Other noncurrent liabilities	(111)	(117)
Funded status	(122)	(134)
Accumulated other comprehensive loss	232	270
Net amount recognized	110	136
Pension Plans | International
Change in benefit obligation:
Benefit obligation at beginning of year	616	586
Service cost	28	25	24
Interest cost	11	15	17
Plan participant contributions	4	4
Actuarial loss (gain)	(26)	53
Foreign currency exchange rate impact	(2)	(38)
Benefits, expenses, taxes and premiums paid	(25)	(29)
Settlements and curtailments	(3)	(1)
Special termination benefits	2	1
Benefit obligation at end of year	605	616	586
Change in plan assets:
Fair value of plan assets at beginning of year	529	519
Actual return on plan assets	28	57
Foreign currency exchange rate impact	(9)	(42)
Employer contributions	24	22
Plan participant contributions	4	4
Settlements	(3)	(2)
Benefits, expenses, taxes and premium paid	(25)	(29)
Fair value of plan assets at end of year	548	529	519
Funded status	(57)	(87)
Amounts recognized in the Balance Sheet consist of:
Other assets	88	79
Other accrued liabilities	(5)	(4)
Other noncurrent liabilities	(140)	(162)
Funded status	(57)	(87)
Accumulated other comprehensive loss	72	123
Net amount recognized	15	36
Other than Pension Plans Post-Retirement
Change in benefit obligation:
Benefit obligation at beginning of year	191	175
Service cost	3	3	3
Interest cost	7	7	8
Plan participant contributions	1	1
Actuarial loss (gain)	(11)	13
Foreign currency exchange rate impact		(1)
Benefits, expenses, taxes and premiums paid	(8)	(7)
Benefit obligation at end of year	183	191	175
Change in plan assets:
Fair value of plan assets at beginning of year	33	32
Actual return on plan assets	4	1
Employer contributions	7	6
Plan participant contributions	1	1
Benefits, expenses, taxes and premium paid	(8)	(7)
Fair value of plan assets at end of year	37	33	$ 32
Funded status	(146)	(158)
Amounts recognized in the Balance Sheet consist of:
Other accrued liabilities		(7)
Other noncurrent liabilities	(146)	(151)
Funded status	(146)	(158)
Accumulated other comprehensive loss	21	35
Net amount recognized	$ (125)	$ (123)

PENSION, DEFERRED COMPENSATIO85

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Pension Plans | United States
Components of net periodic benefit cost:
Service cost	$ 37	$ 32	$ 32
Interest cost	30	33	30
Expected return on plan assets	(52)	(49)	(50)
Amortization of:
Actuarial loss	16	11	10
Prior service cost	1	1
Net periodic benefit cost	$ 32	$ 28	$ 22
Weighted-average assumptions used to determine net periodic benefit cost for the year ended June 30:
Expected return on assets (as a percent)	7.00%	7.00%	7.50%
Pension Plans | United States | Minimum
Weighted-average assumptions used to determine benefit obligations at June 30:
Discount rate (as a percent)	3.40%	3.00%	3.70%
Rate of compensation increase (as a percent)	3.00%	3.00%	3.00%
Weighted-average assumptions used to determine net periodic benefit cost for the year ended June 30:
Discount rate (as a percent)	3.00%	3.70%	3.60%
Rate of compensation increase (as a percent)	3.00%	3.00%	3.00%
Pension Plans | United States | Maximum
Weighted-average assumptions used to determine benefit obligations at June 30:
Discount rate (as a percent)	3.90%	3.70%	4.40%
Rate of compensation increase (as a percent)	7.00%	7.00%	7.00%
Weighted-average assumptions used to determine net periodic benefit cost for the year ended June 30:
Discount rate (as a percent)	3.70%	4.40%	4.30%
Rate of compensation increase (as a percent)	7.00%	7.00%	7.00%
Pension Plans | International
Components of net periodic benefit cost:
Service cost	$ 28	$ 25	$ 24
Interest cost	11	15	17
Expected return on plan assets	(16)	(20)	(21)
Amortization of:
Actuarial loss	11	11	10
Prior service cost	2	2	2
Curtailments			(1)
Special termination benefits	2	1
Net periodic benefit cost	$ 38	$ 34	$ 31
Pension Plans | International | Minimum
Weighted-average assumptions used to determine benefit obligations at June 30:
Discount rate (as a percent)	0.50%	0.25%	0.75%
Rate of compensation increase (as a percent)	1.00%	0.00%	0.00%
Weighted-average assumptions used to determine net periodic benefit cost for the year ended June 30:
Discount rate (as a percent)	0.25%	0.75%	0.50%
Expected return on assets (as a percent)	1.50%	2.00%	2.00%
Rate of compensation increase (as a percent)	0.00%	0.00%	1.00%
Pension Plans | International | Maximum
Weighted-average assumptions used to determine benefit obligations at June 30:
Discount rate (as a percent)	6.75%	6.00%	7.00%
Rate of compensation increase (as a percent)	5.50%	5.50%	5.50%
Weighted-average assumptions used to determine net periodic benefit cost for the year ended June 30:
Discount rate (as a percent)	6.00%	7.00%	6.75%
Expected return on assets (as a percent)	6.00%	7.00%	6.75%
Rate of compensation increase (as a percent)	5.50%	5.50%	5.50%
Other than Pension Plans Post-Retirement
Components of net periodic benefit cost:
Service cost	$ 3	$ 3	$ 3
Interest cost	7	7	8
Expected return on plan assets	(1)	(2)	(2)
Amortization of:
Actuarial loss	1		1
Prior service cost		1	1
Net periodic benefit cost	$ 10	$ 9	$ 11
Weighted-average assumptions used to determine net periodic benefit cost for the year ended June 30:
Expected return on assets (as a percent)	7.00%	7.00%	7.50%
Other than Pension Plans Post-Retirement | Minimum
Weighted-average assumptions used to determine benefit obligations at June 30:
Discount rate (as a percent)	3.70%	3.50%	4.25%
Weighted-average assumptions used to determine net periodic benefit cost for the year ended June 30:
Discount rate (as a percent)	3.50%	4.25%	4.10%
Other than Pension Plans Post-Retirement | Maximum
Weighted-average assumptions used to determine benefit obligations at June 30:
Discount rate (as a percent)	9.75%	9.50%	9.00%
Weighted-average assumptions used to determine net periodic benefit cost for the year ended June 30:
Discount rate (as a percent)	9.50%	9.00%	9.00%

PENSION, DEFERRED COMPENSATIO86

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS - Assumed Health Care Cost Trend Rates (Details) - Other than Pension Plans Post-Retirement	12 Months Ended
	Jun. 30, 2017
Assumed health care cost trend rates
Assumed weighted-average health care cost trend rate for the coming year (as a percent)	7.33%
Weighted-average ultimate trend rate (as a percent)	4.53%
Period after which ultimate trend rate is expected to be reached	19 years

PENSION, DEFERRED COMPENSATIO87

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS - Impact of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) - Other than Pension Plans Post-Retirement $ in Millions	12 Months Ended
	Jun. 30, 2017USD ($)
Effects of one-percentage-point change in assumed health care cost trend rates for fiscal 2016
Effect of one-percentage-point increase on total service and interest costs	$ 1
Effect of one-percentage-point decrease on total service and interest costs	(1)
Effect of one-percentage-point increase on post-retirement benefit obligations	15
Effect of one-percentage-point decrease on post-retirement benefit obligations	$ (13)

PENSION, DEFERRED COMPENSATIO88

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS - Amounts Recognized in AOCI (Before Tax) (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Defined Benefit Plan Disclosure
Balance, beginning of year	$ (3,572)
Balance, end of year	(4,384)	$ (3,572)
Total amounts recognized in AOCI	325
Net actuarial (gains) losses recognized
Defined Benefit Plan Disclosure
Balance, beginning of year	423
Amounts before reclassification	(71)	114	$ 48
Amounts reclassified out	(28)	(22)	(21)
Balance, end of year	324	423
Net prior service cost (credit) recognized
Defined Benefit Plan Disclosure
Balance, beginning of year	4
Amounts reclassified out	(3)	(4)	$ (3)
Balance, end of year	1	4
Other than Pension Plans Post-Retirement
Defined Benefit Plan Disclosure
Total amounts recognized in AOCI	21	35
Other than Pension Plans Post-Retirement | Net actuarial (gains) losses recognized
Defined Benefit Plan Disclosure
Balance, beginning of year	33
Amounts before reclassification	(12)
Amounts reclassified out	(1)
Balance, end of year	20	33
Other than Pension Plans Post-Retirement | Net prior service cost (credit) recognized
Defined Benefit Plan Disclosure
Balance, beginning of year	1
Balance, end of year	1	1
United States | Pension Plans
Defined Benefit Plan Disclosure
Total amounts recognized in AOCI	232	270
United States | Pension Plans | Net actuarial (gains) losses recognized
Defined Benefit Plan Disclosure
Balance, beginning of year	267
Amounts before reclassification	(21)
Amounts reclassified out	(16)
Balance, end of year	230	267
United States | Pension Plans | Net prior service cost (credit) recognized
Defined Benefit Plan Disclosure
Balance, beginning of year	3
Amounts reclassified out	(1)
Balance, end of year	2	3
International | Pension Plans
Defined Benefit Plan Disclosure
Total amounts recognized in AOCI	72	123
International | Pension Plans | Net actuarial (gains) losses recognized
Defined Benefit Plan Disclosure
Balance, beginning of year	123
Amounts before reclassification	(38)
Amounts reclassified out	(11)
Balance, end of year	74	$ 123
International | Pension Plans | Net prior service cost (credit) recognized
Defined Benefit Plan Disclosure
Amounts reclassified out	(2)
Balance, end of year	$ (2)

PENSION, DEFERRED COMPENSATIO89

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS - Amounts in AOCI expected to be amortized as components of net periodic benefit cost during fiscal 2017 (Details) $ in Millions	Jun. 30, 2017USD ($)
Pension Plans | United States
Amounts in accumulated other comprehensive (income) loss expected to be amortized as components of net periodic benefit cost during fiscal 2018
Prior service cost	$ 1
Net actuarial loss	13
Pension Plans | International
Amounts in accumulated other comprehensive (income) loss expected to be amortized as components of net periodic benefit cost during fiscal 2018
Net actuarial loss	5
Other than Pension Plans Post-Retirement
Amounts in accumulated other comprehensive (income) loss expected to be amortized as components of net periodic benefit cost during fiscal 2018
Prior service cost	$ 1

PENSION, DEFERRED COMPENSATIO90

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS - Amounts Recognized in AOCI (Before Tax) (Details) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 1,366	$ 1,305
Pension Plans Retirement Growth Account
Defined Benefit Plan Disclosure
Projected benefit obligation	769	754
Accumulated benefit obligation	726	710
Fair value of plan assets	781	743
Pension Plans Restoration
Defined Benefit Plan Disclosure
Projected benefit obligation	134	123
Accumulated benefit obligation	120	109
Pension Plans | International
Defined Benefit Plan Disclosure
Projected benefit obligation	605	616	$ 586
Accumulated benefit obligation	540	549
Fair value of plan assets	548	529	$ 519
Defined benefit plans with obligations in excess of plan assets:
Pension plans with projected benefit obligations in excess of the plans' assets, aggregate projected benefit obligations	281	330
Pension plans with projected benefit obligations in excess of the plans' assets, aggregate fair value of plan assets	137	165
Defined benefit plans with accumulated benefit obligations in excess of plan assets:
Pension plans with accumulated benefit obligations in excess of the plans' assets, aggregate accumulated benefit obligations	220	226
Pension plans with accumulated benefit obligations in excess of the plans' assets, aggregate fair value of plan assets	$ 103	$ 93

PENSION, DEFERRED COMPENSATIO91

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS - Expected Cash Flows for the Company's Pension and Post-Retirement Plans (Details) $ in Millions	Jun. 30, 2017USD ($)
Pension Plans | United States
Expected cash flows for the Company's pension and post-retirement plans
Expected benefit payments for year ending June 30, 2018	$ 83
Expected benefit payments for year ending June 30, 2019	72
Expected benefit payments for year ending June 30, 2020	68
Expected benefit payments for year ending June 30, 2021	63
Expected benefit payments for year ending June 30, 2022	63
Expected benefit payments for year ending June 30, Years 2023-2027	333
Pension Plans | International
Expected cash flows for the Company's pension and post-retirement plans
Expected employer contributions for year ending June 30, 2018	27
Expected benefit payments for year ending June 30, 2018	22
Expected benefit payments for year ending June 30, 2019	20
Expected benefit payments for year ending June 30, 2020	22
Expected benefit payments for year ending June 30, 2021	22
Expected benefit payments for year ending June 30, 2022	28
Expected benefit payments for year ending June 30, Years 2023-2027	132
Other than Pension Plans Post-Retirement
Expected cash flows for the Company's pension and post-retirement plans
Expected benefit payments for year ending June 30, 2018	7
Expected benefit payments for year ending June 30, 2019	8
Expected benefit payments for year ending June 30, 2020	8
Expected benefit payments for year ending June 30, 2021	9
Expected benefit payments for year ending June 30, 2022	10
Expected benefit payments for year ending June 30, Years 2023-2027	$ 57

PENSION, DEFERRED COMPENSATIO92

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS - Company's Target Asset Allocation at June 30, 2017 (Details)	Jun. 30, 2017
Pension Plans | United States
Company's target asset allocation at June 30, 2017
Target asset allocation (as a percent)	100.00%
Pension Plans | United States | Equity securities
Company's target asset allocation at June 30, 2017
Target asset allocation (as a percent)	44.00%
Pension Plans | United States | Debt instruments
Company's target asset allocation at June 30, 2017
Target asset allocation (as a percent)	39.00%
Pension Plans | United States | Other
Company's target asset allocation at June 30, 2017
Target asset allocation (as a percent)	17.00%
Pension Plans | International
Company's target asset allocation at June 30, 2017
Target asset allocation (as a percent)	100.00%
Pension Plans | International | Equity securities
Company's target asset allocation at June 30, 2017
Target asset allocation (as a percent)	15.00%
Pension Plans | International | Debt instruments
Company's target asset allocation at June 30, 2017
Target asset allocation (as a percent)	60.00%
Pension Plans | International | Other
Company's target asset allocation at June 30, 2017
Target asset allocation (as a percent)	25.00%
Other than Pension Plans Post-Retirement
Company's target asset allocation at June 30, 2017
Target asset allocation (as a percent)	100.00%
Other than Pension Plans Post-Retirement | Equity securities
Company's target asset allocation at June 30, 2017
Target asset allocation (as a percent)	44.00%
Other than Pension Plans Post-Retirement | Debt instruments
Company's target asset allocation at June 30, 2017
Target asset allocation (as a percent)	39.00%
Other than Pension Plans Post-Retirement | Other
Company's target asset allocation at June 30, 2017
Target asset allocation (as a percent)	17.00%

PENSION, DEFERRED COMPENSATIO93

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS - Fair values of the Company's pension and post-retirement plan assets by asset category (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 1,366	$ 1,305
Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	150	238
Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	874	799
Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	48	45
Assets Measured at NAV
Defined Benefit Plan Disclosure
Fair value of plan assets	294	223
Cash and cash equivalents
Defined Benefit Plan Disclosure
Fair value of plan assets	3	14
Cash and cash equivalents | Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	3	14
Short-term investment funds
Defined Benefit Plan Disclosure
Fair value of plan assets	23	48
Short-term investment funds | Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	17	43
Short-term investment funds | Assets Measured at NAV
Defined Benefit Plan Disclosure
Fair value of plan assets	6	5
Government and agency securities
Defined Benefit Plan Disclosure
Fair value of plan assets	37	29
Government and agency securities | Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	37	29
Equity securities
Defined Benefit Plan Disclosure
Fair value of plan assets		17
Equity securities | Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets		17
Debt instruments
Defined Benefit Plan Disclosure
Fair value of plan assets	59	145
Debt instruments | Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	59	145
Commingled funds
Defined Benefit Plan Disclosure
Fair value of plan assets	1,102	889
Unfunded commitments	$ 0
Commingled funds | Minimum
Defined Benefit Plan Disclosure
Monthly and quarterly redemption notice periods	10 days
Commingled funds | Maximum
Defined Benefit Plan Disclosure
Monthly and quarterly redemption notice periods	30 days
Commingled funds | Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 147	207
Commingled funds | Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	761	582
Commingled funds | Assets Measured at NAV
Defined Benefit Plan Disclosure
Fair value of plan assets	194	100
Insurance contracts
Defined Benefit Plan Disclosure
Fair value of plan assets	48	45
Insurance contracts | Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	48	45
Limited partnerships and hedge fund investments
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 94	118
Limited partnerships and hedge fund investments | Minimum
Defined Benefit Plan Disclosure
Monthly and quarterly redemption notice periods	30 days
Limited partnerships and hedge fund investments | Maximum
Defined Benefit Plan Disclosure
Monthly and quarterly redemption notice periods	90 days
Limited partnerships and hedge fund investments | Assets Measured at NAV
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 94	$ 118

PENSION, DEFERRED COMPENSATIO94

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS - Changes in Level 3 Plan Assets (Details) $ in Millions	12 Months Ended
	Jun. 30, 2017USD ($)
Changes in Level 3 plan assets
Fair value of plan assets at beginning of year	$ 1,305
Actual return on plan assets:
Fair value of plan assets at end of year	1,366
Level 3
Changes in Level 3 plan assets
Fair value of plan assets at beginning of year	45
Actual return on plan assets:
Fair value of plan assets at end of year	48
Insurance contracts
Changes in Level 3 plan assets
Fair value of plan assets at beginning of year	45
Actual return on plan assets:
Fair value of plan assets at end of year	48
Insurance contracts | Level 3
Changes in Level 3 plan assets
Fair value of plan assets at beginning of year	45
Actual return on plan assets:
Relating to assets still held at the reporting date	1
Purchases, sales, issuances and settlements, net	1
Foreign exchange impact	1
Fair value of plan assets at end of year	$ 48

PENSION, DEFERRED COMPENSATIO95

PENSION, DEFERRED COMPENSATION AND POST-RETIREMENT BENEFIT PLANS - 401(k) Savings Plan (U.S.) and Deferred Compensation (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
401(k) Savings Plan (U.S.)
Minimum period following date of hire after which full-time employees become eligible to participate in the savings plan	30 days
Minimum service period after which the Company matches a portion of the participant's contributions	1 year
Company's contribution to contributory defined contribution plan	$ 39	$ 37	$ 35
Deferred Compensation
Accrued amount of deferred compensation and interest thereon	75	71
Deferred compensation expense (income) to reflect additional deferrals and change in market value (in dollars)	$ 6	$ 6	$ 9

COMMITMENTS AND CONTINGENCIES96

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015	Jul. 31, 2017
Debt service, Payments Due in Fiscal
Debt service	$ 5,805
Debt service, Payments Due in Fiscal 2018	312
Debt service, Payments Due in Fiscal 2019	122
Debt service, Payments Due in Fiscal 2020	617
Debt service, Payments Due in Fiscal 2021	558
Debt service, Payments Due in Fiscal 2022	101
Debt service, Payments Due in Fiscal Thereafter	4,095
Operating lease commitments, Payments Due in Fiscal
Operating lease commitments	2,427
Operating lease commitments, Payments Due in Fiscal 2018	377
Operating lease commitments, Payments Due in Fiscal 2019	349
Operating lease commitments, Payments Due in Fiscal 2020	301			$ 5
Operating lease commitments, Payments Due in Fiscal 2021	239			24
Operating lease commitments, Payments Due in Fiscal 2022	212			32
Operating lease commitments, Payments Due in Fiscal Thereafter	949			$ 597
Unconditional purchase obligations, Payments Due in Fiscal
Unconditional purchase obligations	3,035
Unconditional purchase obligations, Payments Due in Fiscal 2018	1,434
Unconditional purchase obligations, Payments Due in Fiscal 2019	407
Unconditional purchase obligations, Payments Due in Fiscal 2020	435
Unconditional purchase obligations, Payments Due in Fiscal 2021	368
Unconditional purchase obligations, Payments Due in Fiscal 2022	342
Unconditional purchase obligations, Payments Due in Fiscal Thereafter	49
Gross unrecognized tax benefits and interest - current, Payments Due in Fiscal
Gross unrecognized tax benefits and interest - current	3
Gross unrecognized tax benefits and interest - current, Payments Due in Fiscal 2018	3
Total contractual obligations, Payments Due in Fiscal
Total contractual obligations	11,270
Total contractual obligations, Payments Due in Fiscal 2018	2,126
Total contractual obligations, Payments Due in Fiscal 2019	878
Total contractual obligations, Payments Due in Fiscal 2020	1,353
Total contractual obligations, Payments Due in Fiscal 2021	1,165
Total contractual obligations, Payments Due in Fiscal 2022	655
Total contractual obligations, Payments Due in Fiscal Thereafter	5,093
Projected interest costs on long-term and current debt, payments Due in fiscal
Projected interest costs on long-term and current debt Due in fiscal 2018	123
Projected interest costs on long-term and current debt Due in fiscal 2019	117
Projected interest costs on long-term and current debt Due in fiscal 2020	117
Projected interest costs on long-term and current debt Due in fiscal 2021	108
Projected interest costs on long-term and current debt Due in fiscal 2022	101
Projected interest costs on long-term and current debt Due in fiscal Thereafter	1,645
Rental expense	457	$ 442	$ 402
Noncurrent unrecognized tax benefits, accrued interest and penalties	$ 73

COMMON STOCK (Details)

COMMON STOCK (Details) - USD ($) $ / shares in Units, $ in Millions	Sep. 15, 2017	Aug. 18, 2017	Aug. 17, 2017	Jun. 15, 2017	May 02, 2017	Mar. 15, 2017	Feb. 01, 2017	Dec. 15, 2016	Nov. 01, 2016	Sep. 15, 2016	Aug. 18, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2017
Stock disclosures
Additional purchase of Class A Common Stock (in dollars)												$ 413	$ 890	$ 983
Cash dividends declared per common share (in dollars per share)												$ 1.32	$ 1.14	$ 0.92
Common Class A and Common Class B
Stock disclosures
Cash dividends declared per common share (in dollars per share)			$ 0.34		$ 0.34		$ 0.34		$ 0.34		$ 0.30
Dividends paid (in dollars per share)				$ 0.34		$ 0.34		$ 0.34		$ 0.30
Common Class A and Common Class B | Forecast
Stock disclosures
Dividends paid (in dollars per share)	$ 0.34
Common Class A
Class of Stock
Common stock, shares authorized												1,300,000,000	1,300,000,000		1,300,000,000
Common stock, par value (in dollars per share)												$ 0.01	$ 0.01		$ 0.01
Exchange basis for conversion of Class B Common Stock into shares of Class A Common Stock												One-for-one basis
Common stock holder voting rights												one vote per share
Increase (Decrease) in Stockholders' Equity
Balance at the beginning of the period (in shares)												222,989,600	227,836,200	234,156,400	227,836,200
Acquisition of treasury stock (in shares)												(4,694,800)	(10,534,400)	(12,397,100)
Conversion of Class B to Class A (in shares)												1,007,900	2,275,900	1,682,000
Stock-based compensation (in shares)												5,038,500	3,411,900	4,394,900
Balance at the end of the period (in shares)												224,341,200	222,989,600	227,836,200	224,341,200
Stock disclosures
Remaining authorized share repurchase balance (in shares)												14,500,000			14,500,000
Additional purchase of Class A Common Stock (in shares)		500,000
Additional purchase of Class A Common Stock (in dollars)		$ 45
Common Class B
Class of Stock
Common stock, shares authorized												304,000,000	304,000,000		304,000,000
Common stock, par value (in dollars per share)												$ 0.01	$ 0.01		$ 0.01
Common stock holder voting rights												ten votes per share
Increase (Decrease) in Stockholders' Equity
Balance at the beginning of the period (in shares)												144,770,237	147,046,100	148,728,100	147,046,100
Conversion of Class B to Class A (in shares)												(1,007,900)	(2,275,900)	(1,682,000)
Balance at the end of the period (in shares)												143,762,288	144,770,237	147,046,100	143,762,288

STOCK PROGRAMS - Stock Program

STOCK PROGRAMS - Stock Program Details (Details) shares in Millions, $ in Millions	12 Months Ended
	Jun. 30, 2017USD ($)itemshares	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)
Share-based Compensation Arrangement by Share-based Payment Award
Number of active equity compensation plans | item	2
Compensation expense
Compensation expense	$ 219	$ 184	$ 165
Income tax benefit	72	$ 60	$ 54
Total unrecognized compensation cost related to unvested stock-based awards	$ 170
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 | shares	76.8
Number of Class A Common Stock shares reserved and available to be granted pursuant to equity compensation plans | shares	11.9

STOCK PROGRAMS - Stock Options

STOCK PROGRAMS - Stock Options (Details) - Stock options $ / shares in Units, $ in Millions	12 Months Ended
	Jun. 30, 2017USD ($)item$ / sharesshares	Jun. 30, 2016USD ($)$ / sharesshares	Jun. 30, 2015USD ($)$ / shares
Shares
Outstanding at the beginning of the year (in shares) | shares	14,007,500
Grant at fair value (in shares) | shares	2,477,800
Exercised (in shares) | shares	(3,361,600)
Expired (in shares) | shares	(23,900)
Forfeited (in shares) | shares	(135,500)
Outstanding at the end of the period (in shares) | shares	12,964,300	14,007,500
Vested and expected to vest (in shares) | shares	12,858,000
Exercisable (in shares) | shares	8,458,100
Weighted-Average Exercise Price Per Share
Outstanding at the beginning of the year (in dollars per share)	$ 52.92
Grant date fair value (in dollars per share)	89.24
Exercise price (in dollars per share)	41.81
Expired (in dollars per share)	70.93
Forfeited (in dollars per share)	81.23
Outstanding at the end of the period (in dollars per share)	62.42	$ 52.92
Vested and expected to vest Weighted-Average Exercise Price (in dollars per share)	62.22
Exercisable Weighted-Average Exercise Price (in dollars per share)	$ 51.17
Additional General Disclosures
Outstanding Aggregate Intrinsic Value (in dollars) | $	$ 435
Weighted-Average Contractual Life Remaining	6 years 1 month 6 days
Vested and expected to vest Aggregate Intrinsic Value (in dollars) | $	$ 434
Vested and expected to vest Exercisable Weighted-Average Contractual Life Remaining	6 years
Exercisable Aggregate Intrinsic Value (in dollars) | $	$ 379
Exercisable Weighted-Average Contractual Life Remaining	4 years 9 months 18 days
Maximum exercise period for all stock options from the date of grant	10 years
Number of substantively equal tranches in which stock options grants become exercisable | item	3
Service period over which stock option grants generally become exercisable in substantively equal tranches	4 years
Per-share weighted-average grant date fair value of stock options granted
Per-share weighted-average grant date fair value of stock options granted (in dollars per share)	$ 22.79	$ 21.51	$ 22.44
Intrinsic value of stock options exercised (in dollars) | $	$ 149	$ 75	$ 114
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)	26.00%	27.00%	28.00%
Weighted-average expected option life	7 years	7 years	7 years
Average risk-free interest rate (as a percent)	1.50%	1.90%	2.20%
Average dividend yield (as a percent)	1.30%	1.20%	1.10%

STOCK PROGRAMS - Restricted Sto

STOCK PROGRAMS - Restricted Stock Units (Details) - Restricted Stock Units	12 Months Ended
	Jun. 30, 2017$ / sharesshares
Shares
Nonvested at the beginning of the period (in shares)	2,795,400
Granted (in shares)	1,594,100
Dividend equivalents (in shares)	34,100
Vested (in shares)	(1,337,900)
Forfeited (in shares)	(146,500)
Nonvested at the end of the period (in shares)	2,939,200
Weighted-Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share) | $ / shares	$ 75.55
Grant date fair value (in dollars per share) | $ / shares	88.91
Dividend equivalents (in dollars per share) | $ / shares	86.38
Vested (in dollars per share) | $ / shares	74.05
Forfeited (in dollars per share) | $ / shares	80.58
Nonvested at the end of the period (in dollars per share) | $ / shares	$ 83.35
RSU grants scheduled to vest in fiscal 2018
Shares
RSU grants scheduled to vest (in shares)	500,000
RSU grants scheduled to vest in fiscal 2019
Shares
RSU grants scheduled to vest (in shares)	500,000
RSU grants scheduled to vest in fiscal 2020
Shares
RSU grants scheduled to vest (in shares)	500,000
RSU grants scheduled to vest in fiscal 2022
Shares
RSU grants scheduled to vest (in shares)	100,000

STOCK PROGRAMS - Performance Sh

STOCK PROGRAMS - Performance Share Units (Details) - $ / shares	1 Months Ended		12 Months Ended
	Jan. 31, 2017	Sep. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Common Class A
Share-based Compensation Arrangement by Share-based Payment Award
Common Stock issued (in shares)			5,038,500	3,411,900	4,394,900
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period			3 years
Granted (in shares)			749,200
Grant date fair value (in dollars per share)			$ 83.73
Other Equity Compensation Plans
Nonvested at the beginning of the period (in shares)			539,100
Granted (in shares)			749,200
Vested (in shares)			(259,800)	(300,000)
Forfeited (in shares)			(6,300)
Nonvested at the end of the period (in shares)			1,022,200	539,100
Weighted-Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)			$ 76.81
Grant date fair value (in dollars per share)			83.73
Vested (in dollars per share)			76.23
Forfeited (in dollars per share)			81.11
Nonvested at the end of the period (in dollars per share)			$ 82	$ 76.81
Performance Share Units | 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)			200,000
Common Stock issued (in shares)		300,000
PSU settled June 30, 2020 | Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award
Granted (in shares)	300,000		300,000
Grant date fair value (in dollars per share)	$ 80.79		$ 89.47
Other Equity Compensation Plans
Granted (in shares)	300,000		300,000
Weighted-Average Grant Date Fair Value
Grant date fair value (in dollars per share)	$ 80.79		$ 89.47
PSU settled June 30, 2022 | Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award
Granted (in shares)	200,000
Grant date fair value (in dollars per share)	$ 80.79
Other Equity Compensation Plans
Granted (in shares)	200,000
Weighted-Average Grant Date Fair Value
Grant date fair value (in dollars per share)	$ 80.79

STOCK PROGRAMS - Performance102

STOCK PROGRAMS - Performance Share Units Based on Total Stockholder Return (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended				24 Months Ended
	Aug. 31, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2013	Jun. 30, 2017
Common Class A
Share-based Compensation Arrangement by Share-based Payment Award
Common Stock issued (in shares)		5,038,500	3,411,900	4,394,900
Performance share units based on total stockholder return
Share-based Compensation Arrangement by Share-based Payment Award
Grant date fair value (in USD)		$ 11				$ 11
Method used for estimating fair value of option grant		lattice model with a Monte Carlo
Dividend yield (as a percent)		1.00%
Weighted-average expected stock-price 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
Weighted-average expected option 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
Weighted-average expected option 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
Weighted-average expected option 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 | 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)						92,431
Forecast | Performance share units based on total stockholder return | Common Class A | Executive
Share-based Compensation Arrangement by Share-based Payment Award
Common Stock issued (in shares)	30,267

STOCK PROGRAMS - Long-term Perf

STOCK PROGRAMS - Long-term Performance Share Units (Details) - Long-term Performance Share Units - Common Class A - Executive $ in Millions	1 Months Ended
	Jan. 31, 2016itemshares	Sep. 30, 2015itemshares	Jan. 28, 2016USD ($)	Sep. 04, 2015USD ($)
Share-based Compensation Arrangement by Share-based Payment Award
Target payout for performance share units in Class A Common Stock (in shares)	71,694	387,848
Number of tranches | item	3	3
Business days to make tranche payment	30 days
Grant date fair value (in USD) | $			$ 6	$ 30
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
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
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
Performance period ending January 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award
Target payout for performance share units in Class A Common Stock (in shares)	23,898
Performance period ending January 29, 2019
Share-based Compensation Arrangement by Share-based Payment Award
Target payout for performance share units in Class A Common Stock (in shares)	23,898
Performance period ending January 29, 2020
Share-based Compensation Arrangement by Share-based Payment Award
Target payout for performance share units in Class A Common Stock (in shares)	23,898

STOCK PROGRAMS - Share Units, C

STOCK PROGRAMS - Share Units, Cash Units (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Non-employee Director Deferred Cash Compensation, Cash Payout Shares
Deferred compensation expense (income) to reflect additional deferrals and change in market value (in dollars)	$ 6	$ 6	$ 9
Share Units
Shares
Outstanding at the beginning of the period (in shares)	120,700
Granted (in shares)	8,900
Dividend equivalents (in shares)	2,000
Outstanding at the end of the period (in shares)	131,600	120,700
Weighted-Average Grant Date Fair Value Per Share
Outstanding at the beginning of the period (in dollars per share)	$ 45
Grant date fair value (in dollars per share)	78.36
Dividend equivalents (in dollars per share)	86.46
Outstanding at the end of the period (in dollars per share)	$ 47.87	$ 45
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)	$ 2	$ 2	$ 3

NET EARNINGS ATTRIBUTABLE TO105

NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE - Reconciliation Between Numerator and Denominator of Basic and Diluted EPS Computations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Numerator:
Net earnings attributable to The Estee Lauder Companies Inc. (in dollars)									$ 1,249	$ 1,115	$ 1,089
Denominator:
Weighted-average common shares outstanding - Basic									367.1	370	379.3
Weighted-average common shares outstanding - Diluted									373	376.6	385.7
Net earnings attributable to The Estee Lauder Companies Inc. per common share:
Basic (in dollars per share)	$ 0.62	$ 0.81	$ 1.17	$ 0.80	$ 0.25	$ 0.72	$ 1.21	$ 0.83	$ 3.40	$ 3.01	$ 2.87
Diluted (in dollars per share)	$ 0.61	$ 0.80	$ 1.15	$ 0.79	$ 0.25	$ 0.71	$ 1.19	$ 0.82	$ 3.35	$ 2.96	$ 2.82
Stock options
Denominator:
Incremental common shares attributable to share-based payment arrangements									3.8	4.6	4.6
Performance Share Units
Denominator:
Incremental common shares attributable to share-based payment arrangements									0.2	0.1	0.1
Restricted Stock Units
Denominator:
Incremental common shares attributable to share-based payment arrangements									1.9	1.8	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 TO106

NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE - Antidilutive Securities Excluded from Computation of Earnings, Per Share (Details) - shares shares in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Stock options
Antidilutive Securities Excluded from Computation of Earnings, Per Share
Antidilutive shares excluded from the calculation of diluted earnings per share	1.8	0.2	0
Contingently Issuable Shares
Antidilutive Securities Excluded from Computation of Earnings, Per Share
Antidilutive shares excluded from the calculation of diluted earnings per share	1	0.5	0.6

ACCUMULATED OTHER COMPREHENS107

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in AOCI by Component (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Changes in AOCI, net of tax by component
Balance, beginning of year	$ 3,572
Translation adjustments	32	$ (101)	$ (306)
Balance, end of year	4,384	3,572
Accumulated other comprehensive loss	(484)	(545)
Accumulated other comprehensive loss
Changes in AOCI, net of tax by component
Accumulated other comprehensive loss	(484)	(545)	(381)
Net unrealized investment gains (losses)
Changes in AOCI, net of tax by component
Balance, beginning of year	7		1
Amounts before reclassification	(8)	7	1
Reclassification to earnings during the year			(2)
Balance, end of year	(1)	7
Accumulated other comprehensive income (loss) from foreign currency cash-flow hedges
Changes in AOCI, net of tax by component
Balance, beginning of year	32	44	(1)
Amounts before reclassification	(13)	48	108
Benefit (provision) for deferred income taxes before reclassification	5	(17)	(38)
Benefit (provision) for deferred income taxes on reclassification	14	23	13
Balance, end of year	(3)	32	44
Accumulated other comprehensive income (loss) from foreign currency cash-flow hedges | Foreign currency forward contracts
Changes in AOCI, net of tax by component
Reclassification to earnings during the year	(40)	(65)	(38)
Accumulated other comprehensive income (loss) from foreign currency cash-flow hedges | Interest rate-related derivatives
Changes in AOCI, net of tax by component
Reclassification to earnings during the year	(1)	(1)
Amounts Included in Net Periodic Benefit Cost
Changes in AOCI, net of tax by component
Balance, beginning of year	(285)	(235)	(233)
Benefit (provision) for deferred income taxes before reclassification	(20)	39	13
Benefit (provision) for deferred income taxes on reclassification	(10)	(7)	(7)
Translation adjustments		6	16
Balance, end of year	(213)	(285)	(235)
Net actuarial (gains) losses recognized
Changes in AOCI, net of tax by component
Balance, beginning of year	(423)
Amounts before reclassification	71	(114)	(48)
Reclassification to earnings during the year	28	22	21
Balance, end of year	(324)	(423)
Net prior service cost (credit) recognized
Changes in AOCI, net of tax by component
Balance, beginning of year	(4)
Reclassification to earnings during the year	3	4	3
Balance, end of year	(1)	(4)
Translation adjustments
Changes in AOCI, net of tax by component
Balance, beginning of year	(299)	(190)	132
Amounts before tax	32	(107)	(319)
Provision for deferred income taxes		(2)	(3)
Balance, end of year	$ (267)	$ (299)	$ (190)

ACCUMULATED OTHER COMPREHENS108

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Components of AOCI - Footnotes (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Reclassification adjustments from accumulated other comprehensive income (loss)
Cost of sales	$ (2,437)	$ (2,181)	$ (2,100)
Selling, general and administrative	(7,469)	(7,338)	(7,074)
Accumulated other comprehensive income (loss) from foreign currency cash-flow hedges | Foreign currency forward contracts | Amount Reclassified from AOCI
Reclassification adjustments from accumulated other comprehensive income (loss)
Cost of sales	10	17	9
Selling, general and administrative	$ 30	$ 48	$ 29

STATEMENT OF CASH FLOWS (Detail

STATEMENT OF CASH FLOWS (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Cash:
Cash paid during the year for interest	$ 96	$ 79	$ 66
Cash paid during the year for income taxes	456	451	417
Noncash investing and financing activities:
Capital lease and asset retirement obligations incurred	12	27	9
Pending purchase price true-up payment			11
Non-cash purchases (sales) of short- and long-term investments, net	6	(3)	2
Property, plant and equipment accrued but unpaid	$ 29	$ 29	$ 29

SEGMENT DATA AND RELATED INF110

SEGMENT DATA AND RELATED INFORMATION (Details) $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2017USD ($)segment	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)
SEGMENT DATA AND RELATED INFORMATION
Number of operating segments | segment									1
Net Sales:
Net Sales before returns associated with restructuring activities									$ 11,826	$ 11,263	$ 10,780
Net Sales	$ 2,894	$ 2,857	$ 3,208	$ 2,865	$ 2,646	$ 2,657	$ 3,124	$ 2,835	11,824	11,262	10,780
Depreciation and Amortization:
Depreciation and amortization									464	415	409
Operating Income (Loss) before charges associated with restructuring and other activities:
Operating Income (Loss) before charges associated with restructuring and other activities									1,904	1,744	1,606
Operating Income	230	$ 427	$ 617	$ 418	143	$ 384	$ 630	$ 453	1,692	1,610	1,606
Reconciliation:
Returns/Charges associated with restructuring and other activities									(212)	(134)
Interest expense									(103)	(71)	(60)
Interest income and investment income, net									28	16	15
Earnings before Income Taxes									1,617	1,555	1,561
Total Assets:
Assets	11,568				9,223				11,568	9,223	8,227
Long-Lived Assets (property, plant and equipment, net):
Long-Lived Assets	1,671				1,583				1,671	1,583	1,490
Skin Care
Net Sales:
Net Sales before returns associated with restructuring activities									4,527	4,446	4,479
Depreciation and Amortization:
Depreciation and amortization									161	151	158
Operating Income (Loss) before charges associated with restructuring and other activities:
Operating Income (Loss) before charges associated with restructuring and other activities									1,014	842	832
Makeup
Net Sales:
Net Sales before returns associated with restructuring activities									5,054	4,702	4,304
Depreciation and Amortization:
Depreciation and amortization									218	184	168
Operating Income (Loss) before charges associated with restructuring and other activities:
Operating Income (Loss) before charges associated with restructuring and other activities									713	758	659
Fragrance
Net Sales:
Net Sales before returns associated with restructuring activities									1,637	1,487	1,416
Depreciation and Amortization:
Depreciation and amortization									59	52	54
Operating Income (Loss) before charges associated with restructuring and other activities:
Operating Income (Loss) before charges associated with restructuring and other activities									115	87	83
Hair Care
Net Sales:
Net Sales before returns associated with restructuring activities									539	554	531
Depreciation and Amortization:
Depreciation and amortization									23	24	26
Operating Income (Loss) before charges associated with restructuring and other activities:
Operating Income (Loss) before charges associated with restructuring and other activities									51	52	38
Other
Net Sales:
Net Sales before returns associated with restructuring activities									69	74	50
Depreciation and Amortization:
Depreciation and amortization									3	4	3
Operating Income (Loss) before charges associated with restructuring and other activities:
Operating Income (Loss) before charges associated with restructuring and other activities									11	5	(6)
Sales Returns (included in Net Sales)
Reconciliation:
Returns/Charges associated with restructuring and other activities									(2)	(1)
The Americas
Net Sales:
Net Sales before returns associated with restructuring activities									4,819	4,710	4,514
Operating Income (Loss) before charges associated with restructuring and other activities:
Operating Income (Loss) before charges associated with restructuring and other activities									284	346	302
Total Assets:
Assets	7,061				5,423				7,061	5,423	4,898
Long-Lived Assets (property, plant and equipment, net):
Long-Lived Assets	1,071				978				1,071	978	957
Europe, the Middle East and Africa
Net Sales:
Net Sales before returns associated with restructuring activities									4,650	4,381	4,086
Operating Income (Loss) before charges associated with restructuring and other activities:
Operating Income (Loss) before charges associated with restructuring and other activities									1,203	1,027	943
Total Assets:
Assets	3,367				3,016				3,367	3,016	2,614
Long-Lived Assets (property, plant and equipment, net):
Long-Lived Assets	456				464				456	464	400
Asia/Pacific
Net Sales:
Net Sales before returns associated with restructuring activities									2,357	2,172	2,180
Operating Income (Loss) before charges associated with restructuring and other activities:
Operating Income (Loss) before charges associated with restructuring and other activities									417	371	361
Total Assets:
Assets	1,140				784				1,140	784	715
Long-Lived Assets (property, plant and equipment, net):
Long-Lived Assets	144				141				144	141	133
United States
Net Sales:
Net Sales									4,238	4,151	3,972
Long-Lived Assets (property, plant and equipment, net):
Long-Lived Assets	$ 869				$ 862				$ 869	$ 862	$ 856

UNAUDITED QUARTERLY FINANCIA111

UNAUDITED QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
UNAUDITED QUARTERLY FINANCIAL DATA
Net Sales	$ 2,894	$ 2,857	$ 3,208	$ 2,865	$ 2,646	$ 2,657	$ 3,124	$ 2,835	$ 11,824	$ 11,262	$ 10,780
Gross Profit	2,281	2,266	2,571	2,269	2,135	2,153	2,535	2,258	9,387	9,081	8,680
Operating Income	230	427	617	418	143	384	630	453	1,692	1,610	$ 1,606
Net Earnings Attributable to The Estee Lauder Companies Inc.	$ 229	$ 298	$ 428	$ 294	$ 94	$ 265	$ 447	$ 309	$ 1,249	$ 1,115
Net earnings attributable to The Estee Lauder Companies Inc. per common share:
Basic (in dollars per share)	$ 0.62	$ 0.81	$ 1.17	$ 0.80	$ 0.25	$ 0.72	$ 1.21	$ 0.83	$ 3.40	$ 3.01	$ 2.87
Diluted (in dollars per share)	$ 0.61	$ 0.80	$ 1.15	$ 0.79	$ 0.25	$ 0.71	$ 1.19	$ 0.82	$ 3.35	$ 2.96	$ 2.82
Charges associated with restructuring activities, asset impairment
Charges associated with restructuring and other activities	$ (78)	$ (62)	$ (41)	$ (31)	$ (100)	$ (15)	$ (19)		$ (195)	$ (133)
Charges associated with restructuring and other activities, net of tax	$ (55)	$ (42)	$ (26)	$ (20)	$ (68)	$ (10)	$ (12)
Charges associated with restructuring and other activities net of tax, per diluted common share (in dollars per share)	$ (0.15)	$ (0.11)	$ (0.07)	$ (0.05)	$ (0.18)	$ (0.02)	$ (0.03)
Changes in fair value of contingent consideration	$ 58								57	$ (8)	$ (7)
Change in fair value of contingent consideration net of tax	$ 42
Change in fair value of contingent consideration net of tax per diluted common share (in dollars per share)	$ 0.11
Goodwill and other intangible asset impairments	$ (31)								$ (31)
Goodwill and other intangible asset impairments net of tax	$ (23)
Goodwill and other intangible asset impairments net of tax per diluted common share (in dollars per share)	$ (0.06)
China deferred tax asset valuation allowance reversal	$ 75
China deferred tax asset valuation allowance reversal per share diluted (in dollars per share)	$ 0.20

SCHEDULE II - VALUATION AND 112

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions		12 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Allowance for doubtful accounts and customer deductions:
Reserves deducted in the balance sheet from the assets to which they apply:
Balance at Beginning of Period		$ 24	$ 21	$ 24
Charged to Costs and Expenses		18	13	8
Deductions	[1]	12	10	11
Balance at End of Period		30	24	21
Sales return accrual:
Reserves deducted in the balance sheet from the assets to which they apply:
Balance at Beginning of Period		96	97	94
Charged to Costs and Expenses		463	373	400
Deductions	[2]	450	374	397
Balance at End of Period		109	96	97
Deferred tax valuation allowance:
Reserves deducted in the balance sheet from the assets to which they apply:
Balance at Beginning of Period		118	121	115
Charged to Costs and Expenses		3	6	10
Deductions		79	9	4
Balance at End of Period		42	118	$ 121
Accrued restructuring:
Reserves deducted in the balance sheet from the assets to which they apply:
Balance at Beginning of Period		77
Charged to Costs and Expenses		122	122
Deductions		48	45
Balance at End of Period		$ 151	$ 77
[1]	Includes amounts written-off, net of recoveries.
[2]	Represents actual returns