The Estée Lauder Companies Inc. (EL) 10-Q 6 Feb 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2019	Jan. 30, 2020
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2019
Entity File Number	1-14064
Entity Registrant Name	ESTEE LAUDER COMPANIES INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-2408943
Entity Address, Address Line One	767 Fifth Avenue
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10153
City Area Code	212
Local Phone Number	572-4200
Title of 12(b) Security	Class A Common Stock, $.01 par value
Trading Symbol	EL
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001001250
Amendment Flag	false
Common Class A
Entity Common Stock, Shares Outstanding		222,319,332
Common Class B
Entity Common Stock, Shares Outstanding		137,220,914

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF EARNINGS
Net sales	$ 4,624	$ 4,005	$ 8,519	$ 7,529
Cost of sales	1,041	910	1,949	1,733
Gross profit	3,583	3,095	6,570	5,796
Operating expenses
Selling, general and administrative	2,538	2,257	4,723	4,265
Restructuring and other charges	7	29	30	70
Goodwill impairment	511	20	511	20
Impairment of other intangible assets	266	18	266	18
Total operating expenses	3,322	2,324	5,530	4,373
Operating income	261	771	1,040	1,423
Interest expense	38	35	70	69
Interest income and investment income, net	13	12	27	27
Other components of net periodic benefit cost	1		2
Other income	576		576
Earnings before income taxes	811	748	1,571	1,381
Provision for income taxes	250	171	412	302
Net earnings	561	577	1,159	1,079
Net earnings attributable to noncontrolling interests	(4)	(4)	(7)	(6)
Net earnings attributable to The Estee Lauder Companies Inc.	$ 557	$ 573	$ 1,152	$ 1,073
Net earnings attributable to The Estee Lauder Companies Inc. per common share
Basic (in dollars per share)	$ 1.55	$ 1.58	$ 3.19	$ 2.94
Diluted (in dollars per share)	$ 1.52	$ 1.55	$ 3.13	$ 2.88
Weighted-average common shares outstanding
Basic (in shares)	360.2	363.3	360.8	365.1
Diluted (in shares)	366.7	369.9	367.7	372.1

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net earnings	$ 561	$ 577	$ 1,159	$ 1,079
Other comprehensive income (loss):
Net unrealized investment gain		3		5
Net cash flow hedge gain (loss)	(22)	9	(24)	9
Amounts included in net periodic benefit cost	5	4	10	7
Translation adjustments	64	(38)	(6)	(15)
Benefit (provision) for deferred income taxes on components of other comprehensive income	10		13	(3)
Total other comprehensive income (loss)	57	(22)	(7)	3
Comprehensive income	618	555	1,152	1,082
Comprehensive income attributable to noncontrolling interests:
Net earnings	(4)	(4)	(7)	(6)
Translation adjustments	1	1	1	1
Total comprehensive income attributable to noncontrolling interests	(3)	(3)	(6)	(5)
Comprehensive income attributable to The Estee Lauder Companies Inc.	$ 615	$ 552	$ 1,146	$ 1,077

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Current assets
Cash and cash equivalents	$ 3,596	$ 2,987
Accounts receivable, net	2,225	1,831
Inventory and promotional merchandise	2,058	2,006
Prepaid expenses and other current assets	469	388
Total current assets	8,348	7,212
Property, plant and equipment, net	2,086	2,068
Other assets
Operating lease right-of-use assets	2,517
Goodwill	1,920	1,868
Other intangible assets, net	2,342	1,203
Other assets	724	805
Total other assets	7,503	3,876
Total assets	17,937	13,156
Current liabilities
Current debt	522	516
Accounts payable	1,137	1,490
Operating lease liabilities	369
Other accrued liabilities	2,925	2,599
Total current liabilities	4,953	4,605
Noncurrent liabilities
Long-term debt	4,662	2,896
Long-term operating lease liabilities	2,318
Other noncurrent liabilities	1,403	1,244
Total noncurrent liabilities	8,383	4,140
Contingencies
Equity
Common stock, $.01 par value; Class A shares authorized: 1,300,000,000 at December 31, 2019 and June 30, 2019; shares issued: 448,452,843 at December 31, 2019 and 443,685,124 at June 30, 2019; Class B shares authorized: 304,000,000 at December 31, 2019 and June 30, 2019; shares issued and outstanding: 137,220,914 at December 31, 2019 and 139,537,814 at June 30, 2019	6	6
Paid-in capital	4,615	4,403
Retained earnings	10,775	9,984
Accumulated other comprehensive loss	(569)	(563)
Stockholders' equity before treasury stock	14,827	13,830
Less: Treasury stock, at cost; 226,278,070 Class A shares at December 31, 2019 and 222,120,630 Class A shares at June 30, 2019	(10,253)	(9,444)
Total stockholders' equity - The Estee Lauder Companies Inc.	4,574	4,386
Noncontrolling interests	27	25
Total equity	4,601	4,411
Total liabilities and equity	$ 17,937	$ 13,156

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Jun. 30, 2019
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	448,452,843	443,685,124
Treasury stock, shares	226,278,070	222,120,630
Common Class B
Common stock, shares authorized	304,000,000	304,000,000
Common stock, shares issued	137,220,914	139,537,814
Common stock, shares outstanding	137,220,914	139,537,814

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net earnings	$ 1,159	$ 1,079
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization	287	269
Deferred income taxes	7	(46)
Non-cash stock-based compensation	139	131
Net loss on disposal of property, plant and equipment	5	5
Pension and post-retirement benefit expense	41	35
Pension and post-retirement benefit contributions	(33)	(12)
Goodwill and other intangible asset impairments	777	38
Changes in fair value of contingent consideration	(7)	(9)
Gain on previously held equity method investment	(553)
Other non-cash items	(10)	(13)
Changes in operating assets and liabilities:
Increase in accounts receivable, net	(347)	(343)
Decrease (increase) in inventory and promotional merchandise	31	(21)
Increase in other assets, net	(120)	(53)
Decrease in accounts payable	(375)	(174)
Increase in other accrued and noncurrent liabilities	252	387
Increase in operating lease assets and liabilities, net	2
Net cash flows provided by operating activities	1,255	1,273
Cash flows from investing activities
Capital expenditures	(291)	(292)
Payments for acquired businesses, net of cash acquired	(1,040)
Proceeds from the disposition of investments		271
Purchases of investments	(5)	(14)
Settlement of net investment hedges	(14)
Net cash flows used for investing activities	(1,350)	(35)
Cash flows from financing activities
Proceeds (repayments) of current debt, net	8	(169)
Proceeds from issuance of long-term debt, net	1,783
Debt issuance costs	(14)
Repayments and redemptions of long-term debt	(8)
Net proceeds from stock-based compensation transactions	71	59
Payments to acquire treasury stock	(813)	(1,126)
Payments of contingent consideration	(3)
Dividends paid to stockholders	(330)	(297)
Payments to noncontrolling interest holders for dividends	(7)	(3)
Net cash flows provided by (used for) financing activities	687	(1,536)
Effect of exchange rate changes on Cash and cash equivalents	17	(7)
Net increase (decrease) in Cash and cash equivalents	609	(305)
Cash and cash equivalents at beginning of period	2,987	2,181
Cash and cash equivalents at end of period	$ 3,596	$ 1,876

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ​ Basis of Presentation ​ The accompanying consolidated financial statements include the accounts of The Estée Lauder Companies Inc. and its subsidiaries (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated. ​ The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019. ​ 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. 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. Descriptions of the Company’s significant accounting policies are discussed in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019. Management evaluates the related estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates and assumptions resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. ​ Currency Translation and Transactions ​ All assets and liabilities of foreign subsidiaries and affiliates are translated at period-end rates of exchange, while revenue and expenses are translated at weighted-average rates of exchange for the period. Unrealized translation gains (losses), net of tax, reported as cumulative translation adjustments through other comprehensive income (loss) (“OCI”) attributable to The Estée Lauder Companies Inc. were ​ 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. Beginning in the first quarter of fiscal 2020, the Company entered into foreign currency forward contracts to hedge a portion of its net investment in certain foreign operations, which are designated as net investment hedges. See Note 7 - Derivative Financial Instruments . ​ The accompanying consolidated statements of earnings include net exchange gains (losses) on foreign currency transactions of $27 million and $(7) million during the three months ended December 31, 2019 and 2018, respectively, and $24 million and $(21) million during the six months ended December 31, 2019 and 2018, respectively. ​ Concentration of Credit Risk ​ The Company is a worldwide manufacturer, marketer and distributor of skin care, makeup, fragrance and hair care products. The Company’s sales subject to credit risk are made primarily to department stores, perfumeries, specialty multi-brand retailers and retailers in its travel retail business. The Company grants credit to qualified customers and does not believe it is exposed significantly to any undue concentration of credit risk. ​ Inventory and Promotional Merchandise ​ Inventory and promotional merchandise consists of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31 ​ June 30 ​ (In millions) 2019 2019 Raw materials $ 519 $ 541 ​ Work in process ​ 237 ​ 268 ​ Finished goods ​ 1,101 ​ 981 ​ Promotional merchandise ​ 201 ​ 216 ​ ​ $ 2,058 $ 2,006 ​ ​ Property, Plant and Equipment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31 ​ June 30 ​ (In millions) 2019 2019 Assets (Useful Life) ​ ​ ​ ​ ​ ​ ​ Land $ 29 $ 29 ​ Buildings and improvements (10 to 40 years) ​ 367 ​ 337 ​ Machinery and equipment (3 to 10 years) ​ 836 ​ 811 ​ Computer hardware and software (4 to 10 years) ​ 1,308 ​ 1,264 ​ Furniture and fixtures (5 to 10 years) ​ 117 ​ 116 ​ Leasehold improvements ​ 2,385 ​ 2,274 ​ ​ ​ 5,042 ​ 4,831 ​ Less accumulated depreciation and amortization ​ (2,956) ​ (2,763) ​ ​ $ 2,086 $ 2,068 ​ ​ The cost of assets related to projects in progress of $503 million and $474 million as of December 31, 2019 and June 30, 2019, respectively, is included in their respective asset categories above. Depreciation and amortization of property, plant and equipment was $127 million and $121 million during the three months ended December 31, 2019 and 2018, respectively, and $252 million and $237 million during the six months ended December 31, 2019 and 2018, respectively. Depreciation and amortization related to the Company’s manufacturing process is included in Cost of sales, and all other depreciation and amortization is included in Selling, general and administrative expenses in the accompanying consolidated statements of earnings. ​ Income Taxes ​ The effective rate for income taxes was 30.8% and 22.9% for the three months ended December 31, 2019 and 2018, respectively, and 26.2% and 21.9% for the six months ended December 31, 2019 and 2018, respectively. The increase in the effective tax rate in both periods was primarily attributable to the impact of nondeductible goodwill impairment charges associated with the Company's Too Faced, BECCA and Smashbox reporting units and to a higher effective tax rate on the Company's foreign operations. ​ As of December 31, 2019 and June 30, 2019, the gross amount of unrecognized tax benefits, exclusive of interest and penalties, totaled $67 million. The total amount of unrecognized tax benefits at December 31, 2019 that, if recognized, would affect the effective tax rate was $50 million. The total gross interest and penalties accrued related to unrecognized tax benefits during the three and six months ended December 31, 2019 in the accompanying consolidated statements of earnings was $1 million and $2 million, respectively. At December 31, 2019 and June 30, 2019, the total gross accrued interest and penalties in the accompanying consolidated balance sheets was $12 million. On the basis of the information available as of December 31, 2019, the Company does not expect significant changes to the total amount of unrecognized tax benefits within the next twelve months. ​ Other Accrued Liabilities ​ Other accrued liabilities consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31 ​ June 30 ​ (In millions) 2019 2019 Advertising, merchandising and sampling $ 416 $ 352 ​ Employee compensation ​ 437 ​ 574 ​ Deferred revenue ​ ​ 378 ​ ​ 314 ​ Payroll and other taxes ​ 325 ​ 221 ​ Accrued general and administrative expenses ​ ​ 256 ​ ​ 195 ​ Other ​ 1,113 ​ 943 ​ ​ $ 2,925 $ 2,599 ​ ​ Recently Adopted Accounting Standards ​ Leases (Accounting Standards Codification ("ASC") Topic 842 - Leases ("ASC 842")) In February 2016, the Financial Accounting Standards Board (“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 is based on the lease liability adjusted for certain costs such as initial direct costs, prepaid lease payments and lease incentives received. Lease expense is recognized similar to previous accounting guidance with operating leases resulting in a straight-line expense, and finance leases resulting in a front-loaded expense similar to the previous accounting for capital leases. ​ In July 2018, the FASB amended this guidance to clarify certain narrow aspects of the new lease accounting standard that may have been incorrectly or inconsistently applied, and did not add new guidance. Also, in July 2018, the FASB issued authoritative guidance that allows companies to elect to adopt the new standard using a modified retrospective transition approach with a cumulative-effect adjustment to retained earnings in the period of adoption. Companies that elect the new adoption method were not required to restate the prior comparative periods in the financial statements. ​ Effective for the Company – ​ Impact on consolidated financial statements - Note 4 - Leases . ​ Recently Issued Accounting Standards ​ Measurement of Credit Losses on Financial Instruments (ASC Topic 326 - Financial Instruments - Credit Losses) 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 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, and requires additional disclosures. In general, modified retrospective adoption will be required for all outstanding instruments that fall under this guidance. ​ In November 2019, the FASB issued authoritative guidance (Accounting Standards Update (“ASU”) 2019-11 - Codification Improvements to Topic 326, Financial Instruments – Credit Losses) that amends ASC Topic 326 to clarify, improve and amend certain aspects of this guidance, such as disclosures related to accrued interest receivables and the estimation of credit losses associated with financial assets secured by collateral. ​ Effective for the Company - ​ Impact on consolidated financial statements – ​ Goodwill and Other – Internal-Use Software (ASU 2018-15 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract) In August 2018, the FASB issued authoritative guidance that permits companies to capitalize the costs incurred for setting up business systems that operate on cloud technology. The new guidance aligns the requirement for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance does not affect the accounting for the service element of a hosting arrangement that is a service contract. Capitalized costs associated with a hosting arrangement that is a service contract must be amortized over the term of the hosting arrangement to the same line item in the income statement as the expense for fees for the hosting arrangement. ​ Effective for the Company – Fiscal 2021 first quarter, with early adoption permitted in any interim period. This guidance can be adopted either retrospectively, or prospectively to all implementation costs incurred after the date of adoption. ​ Impact on consolidated financial statements – The Company is currently evaluating the impact of applying this guidance to its business systems that operate on cloud technology. While the Company’s evaluation is ongoing, the adoption of this standard is not expected to have a material impact on its consolidated financial statements. ​ Income Taxes (ASU 2019-12 – Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes) In December 2019, the FASB issued authoritative guidance that simplifies the accounting for income taxes by removing certain exceptions and making simplifications in other areas. ​ Effective for the Company – Fiscal 2022 first quarter, with early adoption permitted in any interim period. If adopted early, the Company must adopt all the amendments in the same period. The amendments have differing adoption methods including retrospectively, prospectively and/or modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption, depending on the specific change. ​ Impact on consolidated financial ​ No other recently issued accounting pronouncements are expected to have a material impact on the Company’s consolidated financial statements.

ACQUISITION OF BUSINESS

ACQUISITION OF BUSINESS	6 Months Ended
	Dec. 31, 2019
ACQUISITION OF BUSINESS
ACQUISITION OF BUSINESS	NOTE 2 –ACQUISITION OF BUSINESS ​ On December 18, 2019, the Company acquired the remaining 66.66% equity interest in Have&Be Co. Ltd. (“Have & Be”), the global skin care company behind Dr. Jart+ and men’s grooming brand Do The Right Thing, for $1,268 million in cash. This acquisition is expected to further strengthen the Company’s leadership position in skin care and expand its consumer reach in Asia/Pacific, North America, the United Kingdom and travel retail. We originally acquired a minority interest in Have & Be in December 2015, and that investment structure included a formula-based call option for the remaining equity interest. The original minority interest was accounted for as an equity method investment, which had a carrying value of $133 million at the acquisition date. The acquisition of the remaining equity interest in Have & Be was considered a step acquisition, whereby the Company remeasured the previously held equity method investment to its fair value of $682 million, resulting in the recognition of a gain of $549 million. The acquisition of the remaining equity interest also resulted in the recognition of a previously unrealized foreign currency gain of $4 million, which was reclassified from accumulated OCI. The total gain on the Company’s previously held equity method investment of $553 million is included in Other income in the accompanying consolidated statements of earnings for the three and six months ended December 31, 2019. The fair value of the previously held equity method investment was determined based upon a valuation of the acquired business, as of the date of acquisition, using an equal weighting of the income and market approaches, utilizing estimated cash flows and a terminal value, discounted at a rate of return that reflects the relative risk of the cash flows, as well as valuation multiples derived from comparable publicly traded companies. The accounting for the Have & Be business combination is provisional pending finalization of the Have & Be calendar 2019 audited financial statements, working capital adjustments, and allocation of the total consideration transferred. ​ The amount paid at closing was funded by cash on hand including the proceeds from the issuance of debt. In anticipation of the closing, the Company transferred cash to a foreign subsidiary for purposes of making the closing payment. As a result, the Company recognized a foreign currency gain of $23 million, which is also included in Other income in the accompanying consolidated statements of earnings for the three and six months ended December 31, 2019. ​ ​ The Company recorded a preliminary allocation of the total consideration transferred, which includes the cash paid at closing and the fair value of its previously held equity method investment, to the tangible and identifiable intangible assets acquired and liabilities assumed based on their fair value at the acquisition date. The excess of the total consideration transferred over the fair value of the net tangible and intangible assets acquired was recorded as goodwill. The preliminary allocation of the total consideration transferred has been recorded as follows: ​ ​ ​ ​ ​ (In millions, unaudited) ​ ​ Cash ​ $ 228 Accounts receivable ​ 48 Inventory ​ 83 Other current assets ​ 5 Property, plant and equipment ​ 3 Right-of-use assets ​ ​ 3 Intangible assets ​ 1,427 Goodwill ​ 556 Other long-term assets ​ ​ 3 Total assets acquired ​ 2,356 ​ ​ ​ ​ Accounts payable ​ 27 Other accrued liabilities ​ 22 Deferred income taxes ​ 352 Lease liability ​ ​ 1 Total liabilities assumed ​ 402 Total consideration transferred ​ $ 1,954 ​ The results of operations of Have & Be will be reported in future periods on a one-month lag to facilitate consolidated reporting. Accordingly, operating income for the three and six months ended December 31, 2019 does not include the results of operations of Have & Be since the date of acquisition, which were not material. Acquisition-related costs, which primarily include financial advisory, accounting and legal fees, in the amount of $6 million are included in Selling, general and administrative expenses in the accompanying consolidated statements of earnings for the three and six months ended December 31, 2019. Pro forma results of operations reflecting the acquisition of Have & Be are not 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	6 Months Ended
	Dec. 31, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 3 – GOODWILL AND OTHER INTANGIBLE ASSETS ​ As previously discussed in Note 2 – Acquisition of Business million. Goodwill associated with the acquisition is primarily attributable to the future revenue growth opportunities associated with additional share in the skin care category, as well as the value associated with assembled workforce. As such, the goodwill has been allocated to the Company’s skin care product category. The goodwill recorded in connection with this acquisition is not expected to be deductible for tax purposes. These amounts are provisional pending finalization of the Have & Be calendar 2019 audited financial statements, working capital adjustments, and allocation of the total consideration transferred. ​ During the six months ended December 31, 2019, the Company recognized $7 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 acquisition of Have & Be are classified as level 3 in the fair value hierarchy. The estimate of the fair values of the acquired amortizable intangible assets were determined using a multi-period excess earnings income approach by discounting the incremental after-tax cash flows over multiple periods. 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 the acquired intangible assets not subject to amortization were determined using an income approach, specifically 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. ​ The following table presents goodwill by product category and the related change in the carrying amount: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) Skin Care Makeup Fragrance Hair Care Total Balance as of June 30, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill $ 185 $ 1,199 $ 254 $ 390 $ 2,028 ​ Accumulated impairments ​ (36) ​ (68) ​ (22) ​ (34) ​ (160) ​ ​ ​ 149 ​ 1,131 ​ 232 ​ 356 ​ 1,868 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill acquired during the period ​ 556 ​ ​ 7 ​ ​ — ​ ​ — ​ ​ 563 ​ Impairment charges ​ ​ — ​ ​ (511) ​ ​ — ​ ​ — ​ ​ (511) ​ Translation adjustments, goodwill ​ ​ (1) ​ ​ — ​ ​ — ​ ​ — ​ ​ (1) ​ Translation adjustments, accumulated impairments ​ 1 ​ ​ — ​ ​ — ​ ​ — ​ ​ 1 ​ ​ ​ 556 ​ ​ (504) ​ ​ — ​ ​ — ​ ​ 52 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of December 31, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill ​ 740 ​ ​ 1,206 ​ ​ 254 ​ ​ 390 ​ ​ 2,590 ​ Accumulated impairments ​ (35) ​ ​ (579) ​ ​ (22) ​ ​ (34) ​ ​ (670) ​ ​ $ 705 $ 627 $ 232 $ 356 $ 1,920 ​ ​ Other intangible assets consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ June 30, 2019 ​ ​ ​ Gross ​ ​ ​ ​ Total Net ​ Gross ​ ​ ​ ​ Total Net ​ ​ ​ Carrying ​ Accumulated ​ Book ​ Carrying ​ Accumulated ​ Book ​ (In millions) Value Amortization Value Value Amortization Value Amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer lists and other $ 1,524 $ 389 $ 1,135 $ 684 $ 369 $ 315 ​ License agreements ​ 43 ​ 43 ​ — ​ 43 ​ 43 ​ — ​ ​ $ 1,567 $ 432 ​ 1,135 $ 727 $ 412 ​ 315 ​ Non-amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trademarks ​ ​ ​ ​ ​ ​ ​ 1,207 ​ ​ ​ ​ ​ ​ ​ 888 ​ Total intangible assets ​ ​ ​ ​ ​ ​ $ 2,342 ​ ​ ​ ​ ​ ​ $ 1,203 ​ ​ The aggregate amortization expense related to amortizable intangible assets was $11 million and $12 million for the three months ended December 31, 2019 and 2018, respectively, and was $22 million and $25 million for the six months ended December 31, 2019 and 2018, respectively. The estimated aggregate amortization expense for the remainder of fiscal 2020 and for each of the next four fiscal years is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal ​ (In millions) 2020 2021 2022 2023 2024 Estimated aggregate amortization expense $ 53 $ 104 $ 103 $ 103 $ 101 ​ ​ ​ Impairment Testing During the Six Months Ended December 31, 2019 ​ During December 2019, given the continuing declines in prestige makeup, generally in North America, and the ongoing competitive activity, the Company’s Too Faced, BECCA and Smashbox reporting units made revisions to their internal forecasts concurrent with the Company's brand strategy review process. The Company concluded that the changes in circumstances in these reporting units triggered the need for an interim impairment review of their respective trademarks and goodwill. These changes in circumstances were also an indicator that the carrying amounts of their respective long-lived assets, including customer lists, may not be recoverable. Accordingly, the Company performed interim impairment tests for the trademarks and recoverability tests for the long-lived assets as of December 31, 2019. The Company concluded that the carrying amounts of the long-lived assets were recoverable. The Company also concluded that the carrying values of the trademarks exceeded their estimated fair values, which were determined utilizing the relief-from-royalty method to determine discounted projected future cash flows, and recorded impairment charges. After adjusting the carrying value of the trademarks, the Company completed interim quantitative impairment tests for goodwill and recorded goodwill impairment charges for each of these reporting units. The fair value of each reporting unit was based upon an equal weighting of the income and market approaches, utilizing estimated cash flows and a terminal value, discounted at a rate of return that reflects the relative risk of the cash flows, as well as valuation multiples derived from comparable publicly traded companies that are applied to operating performance of the reporting unit. A summary of the impairment charges for the three and six months ended December 31, 2019 and the remaining trademark and goodwill carrying values as of December 31, 2019, for each reporting unit, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) ​ Impairment Charge Carrying Value Reporting Unit: Trademark Goodwill Trademark Goodwill Too Faced ​ $ 211 ​ $ 430 ​ $ 314 ​ $ 175 BECCA ​ 33 ​ 35 ​ 65 ​ 63 Smashbox ​ 22 ​ 46 ​ 33 ​ 26 Total ​ $ 266 ​ $ 511 ​ $ 412 ​ $ 264 ​ The impairment charges were reflected in the makeup product category and in The Americas region. ​ Impairment Testing During the Six Months Ended December 31, 2018 ​ During December 2018, the Company’s Smashbox reporting unit made revisions to its internal forecasts reflecting a slowdown of its makeup business driven by increased competitive activity and lower than expected growth in key retail channels for the brand. The Company concluded that these changes in circumstances in the Smashbox reporting unit triggered the need for an interim impairment review of its trademark and goodwill. Accordingly, the Company performed an interim impairment test as of December 31, 2018. The Company concluded that the carrying value of the Smashbox trademark exceeded its estimated fair value, which was determined utilizing a royalty rate to determine discounted projected future cash flows. As a result, the Company recognized an impairment charge of $18 million for the trademark. After adjusting the carrying value of the trademark, the Company completed an interim quantitative impairment test for goodwill and recorded a goodwill impairment charge related to the Smashbox reporting unit of $20 million. The Company compared the fair value of the Smashbox reporting unit with its carrying amount to calculate the impairment charge. The fair value of the reporting unit was based upon an equal weighting of the income and market approaches, utilizing estimated cash flows and a terminal value, discounted at a rate of return that reflects the relative risk of the cash flows, as well as valuation multiples derived from comparable publicly traded companies that are applied to operating performance of the reporting unit. These impairment charges were reflected in the makeup product category and in The Americas region.

LEASES

LEASES	6 Months Ended
	Dec. 31, 2019
LEASES
LEASES	NOTE 4 - LEASES ​ During the first quarter of fiscal 2020, the Company adopted ASC 842 using the modified retrospective transition approach permitted under the new standard for leases that existed at July 1, 2019 and, accordingly, the prior comparative periods were not restated. Under this method, the Company was required to assess the remaining future payments of existing leases as of July 1, 2019. Additionally, as of the date of adoption, the Company elected the package of practical expedients ​ The adoption of this standard impacted the Company's consolidated balance sheet due to the recognition of right-of-use ("ROU") assets and associated lease liabilities related to operating leases as compared to the previous accounting. The accounting for finance leases under ASC 842 is consistent with the prior accounting for capital leases. The impact of the adoption of this standard on the Company's consolidated statements of earnings and consolidated statement of cash flows was not material. ​ Per the guidance of ASC 842, a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset. The Company recognizes a lease liability and a related ROU asset at the commencement date for leases on its consolidated balance sheet, excluding short-term leases as noted below. The lease liability is equal to the present value of unpaid lease payments over the remaining lease term. The Company's lease term at the commencement date may reflect options to extend terminate ​ After the lease commencement date, the Company evaluates lease modifications, if any, that could result in a change in the accounting for leases. For a lease modification, an evaluation is performed to determine if it should be treated as either a separate lease or a change in the accounting of an existing lease. In addition, significant changes in events or circumstances within the Company's control are assessed to determine whether a change in the accounting for leases is required. ​ Certain of the Company's leases provide for variable lease payments for the right to use an underlying asset that vary due to changes in facts and circumstances occurring after the commencement date, other than the passage of time. Variable lease payments that are dependent on an index or rate (e.g., Consumer Price Index) are included in the initial measurement of the lease liability, the initial measurement of the ROU asset, and the lease classification test based on the index or rate as of the commencement date. Any changes from the commencement date estimation of the index- and rate-based variable payments are expensed as incurred in the period of the change. Variable lease payments that are not known at the commencement date and are determinable based on the performance or use of the underlying asset , are not included in the initial measurement of the lease liability or the ROU asset, but instead are expensed as incurred. The Company's variable lease payments primarily include rents based on a percentage of sales in excess of stipulated levels, common area maintenance based on the percentage of the total square footage leased by the Company, as well as costs relating to embedded leases, such as third-party manufacturing agreements. ​ Upon the adoption of ASC 842, the Company made the following accounting policy elections: ​ ● Certain of the Company’s contracts contain lease components as well as non-lease components, such as an agreement to purchase services. Unless an accounting policy is elected to the contrary, the contract consideration must be allocated to the separate lease and non-lease components in accordance with ASC 842. For purposes of allocating contract consideration, the Company elected not to separate the lease components from non-lease components for all asset classes. This was applied to all existing leases as of July 1, 2019 and will be applied to new leases on an ongoing basis. ● The Company elected not to apply the measurement and recognition requirements of ASC 842 to short-term leases (i.e. leases with a term of 12 months or less). Accordingly, short-term leases will not be recorded as ROU assets or lease liabilities on the Company’s consolidated balance sheets, and the related lease payments will be recognized in net earnings on a straight-line basis over the lease term. ● For certain leases relating to automobiles, information technology equipment and office equipment, the Company elected to apply the guidance of ASC 842 utilizing a portfolio approach. Under this approach, the Company combined and accounted for leases (as a portfolio) with similar characteristics (e.g., lease term, discount rates, etc.) as a single lease, provided its application is not materially different when compared to the application at the individual lease level. ​ ​ As a result of the adoption of ASC 842, the Company recorded a cumulative adjustment of $29 million, net of tax, as a reduction to its fiscal 2020 opening balance of retained earnings, primarily to reflect the fair value of operating lease ROU assets that were impaired at, or prior to, the adoption date. In addition, the Company recognized operating lease ROU assets and liabilities of $2,598 million and $2,764 million, respectively, as of July 1, 2019. Finance lease ROU assets and liabilities are not material. ​ The Company has operating and finance leases primarily for real estate properties, including corporate offices, facilities to support the Company's manufacturing, assembly, research and development and distribution operations and retail stores, as well as information technology equipment, automobiles and office equipment, with remaining terms of approximately 1 year to 51 years . Some of the Company's lease contracts include options to extend the leases for up to 30 years , while others include options to terminate the leases within 34 years . ​ A summary of total lease costs and other information for the periods relating to the Company's finance and operating leases is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Six Months Ended (In millions) ​ December 31, 2019 ​ December 31, 2019 Total lease cost ​ ​ ​ ​ Finance lease cost: ​ ​ ​ ​ ​ ​ ​ ​ Amortization of right-of-use assets ​ $ 3 ​ ​ $ 6 ​ Interest on lease liabilities ​ — ​ ​ — ​ Operating lease cost ​ 115 ​ ​ 233 ​ Short-term lease cost ​ 9 ​ ​ 15 ​ Variable lease cost ​ 49 ​ ​ 92 ​ Total ​ $ 176 ​ ​ $ 346 ​ Other information ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ ​ ​ ​ ​ $ 242 ​ Financing cash flows from finance leases ​ ​ ​ ​ ​ $ 8 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ ​ ​ ​ $ 110 ​ Weighted-average remaining lease term – finance leases ​ ​ ​ ​ 2 years Weighted-average remaining lease term – operating leases ​ ​ ​ ​ 11 years Weighted-average discount rate – finance leases ​ ​ ​ ​ 2.7 % Weighted-average discount rate – operating leases ​ ​ ​ ​ 2.5 % ​ The total future minimum lease payments, over the remaining lease term, relating to the Company’s operating and finance leases for the remainder of fiscal 2020 and for each of the next four fiscal years and thereafter is as follows: ​ ​ ​ ​ ​ ​ ​ ​ (In millions) Operating Leases Finance Leases Remainder of fiscal 2020 ​ $ 219 ​ $ 6 Fiscal 2021 ​ 393 ​ 7 Fiscal 2022 ​ 347 ​ 3 Fiscal 2023 ​ 310 ​ 1 Fiscal 2024 ​ 286 ​ — Thereafter ​ 1,559 ​ — Total future minimum lease payments ​ 3,114 ​ 17 Less imputed interest ​ (427) ​ — Total ​ $ 2,687 ​ $ 17 ​ ​ Operating lease and finance lease liabilities included in the consolidated balance sheet are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 (In millions) Operating Leases Finance Leases Total current liabilities ​ $ 369 ​ $ 10 Total noncurrent liabilities ​ 2,318 ​ 7 Total ​ $ 2,687 ​ $ 17 ​ The ROU assets and lease liabilities related to finance leases are included in Other assets and in Current debt and Long-term debt, respectively, in the accompanying consolidated balance sheet as of December 31, 2019. ​ The following table summarizes scheduled maturities of the Company’s contractual obligations relating to operating leases for which cash flows are fixed and determinable as of June 30, 2019: ​ ​ ​ ​ ​ (In millions) Payments Due in Fiscal Year (1) Fiscal 2020 ​ $ 421 Fiscal 2021 ​ 383 Fiscal 2022 ​ 348 Fiscal 2023 ​ 316 Fiscal 2024 ​ 289 Thereafter ​ 1,625 Total contractual obligations ​ $ 3,382 (1) 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. ​ As of December 31, 2019, the Company has additional operating lease obligations, relating primarily to facilities to support the Company’s manufacturing, research and development and distribution operations, as well as corporate offices, that have not yet commenced of $108 million. These leases will commence between fiscal 2020 and fiscal 2030 with lease terms of 1 year to 59 years .

CHARGES ASSOCIATED WITH RESTRUC

CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES	6 Months Ended
	Dec. 31, 2019
CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES
CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES	NOTE 5 – CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES ​ In May 2016, the Company announced a multi-year initiative (“Leading Beauty Forward” or “LBF”) 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. As of June 30, 2019, the Company concluded the approvals of all major initiatives under LBF 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 substantially complete those initiatives through fiscal 2021. The approved restructuring and other charges expected to be incurred were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Returns ​ ​ ​ ​ Operating Expenses ​ ​ ​ ​ ​ (included in ​ ​ ​ ​ Restructuring ​ Other ​ ​ ​ (In millions) Net Sales) Cost of Sales Charges Charges Total Total Charges Approved ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative through December 31, 2019 ​ $ 14 ​ $ 88 ​ $ 507 ​ $ 358 ​ $ 967 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee- ​ Asset- ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Related ​ Related ​ Contract ​ Other Exit ​ ​ ​ (In millions) Costs Costs Terminations Costs Total Restructuring Charges Approved ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative through December 31, 2019 ​ $ 461 ​ $ 7 ​ $ 25 ​ $ 14 ​ $ 507 ​ The Company records approved charges 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 ​ ​ ​ ​ ​ (included in ​ ​ ​ ​ Restructuring ​ Other ​ ​ ​ (In millions) Net Sales) Cost of Sales Charges Charges Total ​ Total Charges ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative through June 30, 2019 ​ $ 14 ​ $ 55 ​ $ 457 ​ $ 265 ​ $ 791 ​ Six months ended December 31, 2019 ​ ​ — ​ ​ 8 ​ ​ 1 ​ ​ 29 ​ ​ 38 ​ Cumulative through December 31, 2019 ​ $ 14 ​ $ 63 ​ $ 458 ​ $ 294 ​ $ 829 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee- ​ Asset- ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Related ​ Related ​ Contract ​ Other Exit ​ ​ ​ (In millions) Costs Costs Terminations Costs Total Restructuring Charges ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative through June 30, 2019 ​ $ 445 ​ $ 4 ​ $ 3 ​ $ 5 ​ $ 457 Six months ended December 31, 2019 ​ ​ — ​ ​ — ​ ​ — ​ ​ 1 ​ ​ 1 Cumulative through December 31, 2019 ​ $ 445 ​ $ 4 ​ $ 3 ​ $ 6 ​ $ 458 ​ Changes in accrued restructuring charges for the six months ended December 31, 2019 were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee- ​ Asset- ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Related ​ Related ​ Contract ​ Other Exit ​ ​ ​ ​ (In millions) Costs Costs Terminations Costs Total Balance at June 30, 2019 ​ $ 202 ​ $ — ​ $ — ​ $ 1 ​ $ 203 ​ Charges ​ ​ — ​ ​ — ​ ​ — ​ ​ 1 ​ ​ 1 ​ Cash payments ​ ​ (52) ​ ​ — ​ ​ — ​ ​ (2) ​ ​ (54) ​ Balance at December 31, 2019 ​ $ 150 ​ $ — ​ $ — ​ $ — ​ $ 150 ​ ​ Accrued restructuring charges at December 31, 2019 are expected to result in cash expenditures funded from cash provided by operations of approximately $63 million, $62 million, $20 million and $5 million for the remainder of fiscal 2020 and for fiscal 2021, 2022 and 2023, respectively. ​ Additional information about LBF is included in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019.

DEBT

DEBT	6 Months Ended
	Dec. 31, 2019
DEBT
DEBT	NOTE 6 – DEBT ​ In November 2019, the Company completed a public offering of $500 million aggregate principal amount of its 2.000% Senior Notes due December 1, 2024 (the “2024 Senior Notes”), $650 million aggregate principal amount of its 2.375% Senior Notes due December 1, 2029 (the “2029 Senior Notes”) and $650 million aggregate principal amount of its 3.125% Senior Notes due December 1, 2049 (the “2049 Senior Notes”). The Company used proceeds from this offering for general corporate purposes, including to fund the acquisition of Have & Be, and intends to use a portion of the proceeds to refinance its $500 million aggregate principal amount of 1.80% Senior Notes due February 7, 2020 when they become due. ​ These recently issued notes are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unamortized ​ Debt ​ Semi-annual ​ ​ ​ ​ ​ ​ ​ ​ Debt ​ Issuance ​ interest Notes Issue Date Price Yield Discount Costs payments ($ in millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 Senior Notes ​ November 2019 ​ 99.421 % 2.122 % $ 3 ​ $ 3 ​ June 1/December 1 2029 Senior Notes (1) November 2019 99.046 2.483 ​ 6 ​ 4 June 1/December 1 2049 Senior Notes November 2019 98.769 3.189 ​ 8 ​ 7 June 1/December 1 (1) In April and May 2019, in anticipation of the issuance of the 2029 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $500 million at a weighted-average all-in rate of 2.50%. The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a loss in OCI of $33 million that is being amortized to interest expense over the life of the 2029 Senior Notes. As a result of the treasury lock agreements, as well as the debt discount and debt issuance costs, the effective interest rate on the 2029 Senior Notes will be 3.15% over the life of the debt.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	6 Months Ended
	Dec. 31, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE 7 – 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. During the first quarter of fiscal 2020, the Company entered into foreign currency forward contracts to hedge a portion of its net investment in certain foreign operations, which are designated as net investment hedges. The Company entered into the net investment hedges to offset the risk of changes in the U.S. dollar value of the Company's investment in these foreign operations due to fluctuating foreign exchange rates. Time value is excluded from the effectiveness assessment and is recognized under a systematic and rational method over the life of the hedging instrument in Selling, general and administrative expenses. The net gain or loss on net investment hedges is recorded within translation adjustments, as a component of accumulated OCI (“AOCI”) on the Company’s consolidated balance sheets, until the sale or substantially complete liquidation of the underlying assets of the Company's investment. 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 are not 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, and how the hedging instruments’ effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively. This process includes linking all derivatives to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. At inception, the Company evaluates the effectiveness of hedge relationships quantitatively, and has elected to perform, after initial evaluation, qualitative effectiveness assessments of certain hedge relationships to support an ongoing expectation of high effectiveness, if effectiveness testing is required. If based on the qualitative assessment, it is determined that a derivative has ceased to be a highly effective hedge, the Company will perform a quantitative assessment to determine whether 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 as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset Derivatives ​ Liability Derivatives ​ ​ ​ ​ ​ Fair Value (1) ​ ​ ​ Fair Value (1) ​ ​ ​ Balance Sheet ​ December 31 ​ June 30 ​ Balance Sheet ​ December 31 ​ June 30 ​ (In millions) Location 2019 2019 Location 2019 2019 ​ Derivatives Designated as Hedging Instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency cash flow hedges ​ Prepaid expenses and other current assets $ 16 ​ $ 23 Other accrued liabilities $ 9 $ 4 ​ Net investment hedges ​ Prepaid expenses and other current assets ​ ​ — ​ ​ — ​ Other accrued liabilities ​ ​ 19 ​ ​ — ​ Interest rate-related derivatives ​ Prepaid expenses and other current assets ​ ​ 3 ​ ​ 3 ​ Other accrued liabilities ​ ​ 1 ​ ​ 26 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Derivatives Designated as Hedging Instruments ​ ​ ​ ​ 19 ​ ​ 26 ​ ​ ​ ​ 29 ​ ​ 30 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives Not Designated as Hedging Instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts Prepaid expenses and other current assets ​ 31 ​ 4 Other accrued liabilities ​ 3 ​ 2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Derivatives ​ ​ $ 50 ​ $ 30 ​ ​ $ 32 $ 32 ​ (1) See Note 8 – 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 that are included in the assessment of effectiveness are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) ​ ​ ​ Amount of Gain or (Loss) ​ ​ Recognized in OCI on ​ ​ ​ Reclassified from AOCI into ​ ​ Derivatives ​ Location of Gain or ​ Earnings (1) ​ ​ Three Months Ended ​ (Loss) Reclassified ​ Three Months Ended ​ ​ December 31 ​ from AOCI into ​ December 31 (In millions) 2019 2018 Earnings 2019 2018 Derivatives in Cash Flow Hedging Relationships: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts $ (21) $ 13 Net sales $ 6 $ 4 Interest rate-related derivatives ​ ​ 5 ​ ​ — ​ Interest expense ​ ​ — ​ ​ — ​ ​ ​ (16) ​ ​ 13 ​ Total derivatives ​ $ 6 ​ $ 4 Derivatives in Net Investment Hedging Relationships (2) : ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts (3) ​ ​ (37) ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ Total derivatives $ (53) $ 13 ​ ​ ​ ​ ​ ​ ​ (1) The amount reclassified into earnings as a result of the discontinuance of cash flow hedges because probable forecasted transactions will no longer occur by the end of the original time period was not material. (2) During the three months ended December 31, 2019, the gain recognized in earnings from net investment hedges related to the amount excluded from effectiveness testing was $13 million. (3) Included within translation adjustments as a component of AOCI on the Company’s consolidated balance sheets. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) ​ ​ ​ Amount of Gain or (Loss) ​ ​ Recognized in OCI on ​ ​ ​ Reclassified from AOCI into ​ ​ Derivatives ​ Location of Gain or ​ Earnings (1) ​ Six Months Ended ​ (Loss) Reclassified ​ Six Months Ended ​ December 31 ​ from AOCI into ​ December 31 (In millions) 2019 2018 Earnings 2019 2018 Derivatives in Cash Flow Hedging Relationships: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts ​ $ 4 ​ $ 16 ​ Net sales ​ $ 19 ​ $ 7 Interest rate-related derivatives ​ ​ (9) ​ ​ — ​ Interest expense ​ — ​ — ​ ​ ​ (5) ​ ​ 16 ​ Total derivatives ​ $ 19 ​ $ 7 Derivatives in Net Investment Hedging Relationships (2) : ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts (3) ​ (34) ​ — ​ ​ ​ ​ ​ ​ ​ ​ Total derivatives ​ $ (39) ​ $ 16 ​ ​ ​ ​ ​ ​ ​ ​ (1) The amount reclassified into earnings as a result of the discontinuance of cash flow hedges because probable forecasted transactions will no longer occur by the end of the original time period was not material. (2) During the six months ended December 31, 2019, the gain recognized in earnings from net investment hedges related to the amount excluded from effectiveness testing was $25 million. (3) Included within translation adjustments as a component of AOCI on the Company’s consolidated balance sheets. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) Recognized in Earnings on ​ ​ Derivatives (1) ​ ​ Location of Gain or (Loss) ​ Three Months Ended ​ Six Months Ended ​ ​ Recognized in Earnings on ​ December 31 ​ December 31 (In millions) ​ Derivatives ​ 2019 2018 2019 2018 Derivatives in Fair Value Hedging Relationships: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swap contracts Interest expense $ (1) $ 11 $ 1 $ 9 (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. ​ Additional information regarding the cumulative amount of fair value hedging gain (loss) recognized in earnings for items designated and qualifying as hedged items in fair value hedges is as follows: ​ ​ ​ ​ ​ ​ ​ ​ (In millions) ​ ​ ​ ​ ​ ​ ​ Cumulative Amount of Fair ​ ​ ​ ​ ​ Value Hedging Gain/(Loss) Line Item in the Consolidated Balance Sheets in ​ Carrying Amount of the ​ Included in the Carrying Amount Which the Hedged Item is Included ​ Hedged Liabilities ​ of the Hedged Liability ​ December 31, 2019 December 31, 2019 Current debt ​ $ 250 ​ $ — Long-term debt ​ ​ 701 ​ ​ 2 Total debt ​ $ 951 ​ $ 2 ​ Additional information regarding the effects of fair value and cash flow hedging relationships for derivatives designated and qualifying as hedging instruments is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31 ​ ​ 2019 2018 ​ ​ Interest ​ Interest (In millions) ​ Net Sales ​ expense ​ Net Sales ​ expense Total amounts of income and expense line items presented in the consolidated statements of earnings in which the effects of fair value and cash flow hedges are recorded ​ $ 4,624 ​ $ 38 ​ $ 4,005 ​ $ 35 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The effects of fair value and cash flow hedging relationships: ​ ​ ​ ​ Gain (loss) on fair value hedge relationships – interest rate contracts: ​ ​ ​ ​ Hedged item ​ Not applicable ​ (1) ​ Not applicable ​ 11 Derivatives designated as hedging instruments ​ Not applicable ​ 1 ​ Not applicable ​ (11) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (loss) on cash flow hedge relationships – foreign currency forward contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of gain reclassified from AOCI into earnings ​ ​ 6 ​ ​ Not applicable ​ ​ 4 ​ ​ Not applicable ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended December 31 ​ ​ 2019 ​ 2018 (In millions) Net Sales Interest expense Net Sales Interest expense Total amounts of income and expense line items presented in the consolidated statements of earnings in which the effects of fair value and cash flow hedges are recorded ​ $ 8,519 ​ $ 70 ​ $ 7,529 ​ $ 69 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The effects of fair value and cash flow hedging relationships: ​ ​ ​ ​ Gain (loss) on fair value hedge relationships – interest rate contracts: ​ ​ ​ ​ Hedged item ​ Not applicable ​ 1 ​ Not applicable ​ 9 Derivatives designated as hedging instruments ​ Not applicable ​ (1) ​ Not applicable ​ (9) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (loss) on cash flow hedge relationships – foreign currency forward contracts: ​ ​ ​ ​ Amount of gain reclassified from AOCI into earnings ​ 19 ​ Not applicable ​ 7 ​ Not applicable ​ The amounts of the gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments are presented as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) ​ ​ ​ ​ ​ Recognized in Earnings on ​ ​ ​ ​ ​ Derivatives ​ ​ ​ Location of Gain or (Loss) ​ Three Months Ended ​ Six Months Ended ​ ​ ​ Recognized in Earnings on ​ December 31 ​ December 31 ​ (In millions) Derivatives 2019 2018 2019 2018 ​ Derivatives Not Designated as Hedging Instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts Selling, general and administrative $ 30 $ (12) $ 3 $ 10 ​ ​ Cash Flow Hedges ​ The Company enters into foreign currency forward contracts, and may enter into foreign currency option contracts, to hedge anticipated transactions and 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 the cash flows that the Company receives from foreign subsidiaries. The foreign currency forward contracts entered into to hedge anticipated transactions have been designated as cash flow hedges and have varying maturities through the end of December 2021. Hedge effectiveness of the foreign currency forward contracts is based on the forward method, which includes time value in the effectiveness assessment. At December 31, 2019, the Company had outstanding foreign currency forward contracts with a notional amount totaling $5,087 million. ​ 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. ​ For hedge contracts that are no longer deemed highly effective, hedge accounting is discontinued, and gains and losses in AOCI are reclassified to sales 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 sales. As of December 31, 2019, the Company’s foreign currency cash flow hedges were highly effective. ​ ​ The estimated net gain on the Company’s derivative instruments designated as cash flow hedges as of December 31, 2019 that is expected to be reclassified from AOCI into earnings, net of tax, within the next twelve months is $6 million. The accumulated net gain on derivative instruments in AOCI was $5 million and $29 million as of December 31, 2019 and June 30, 2019, 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. ​ Net Investment Hedges ​ The Company enters into foreign currency forward contracts, designated as net investment hedges, to hedge a portion of its net investment in certain foreign operations. The net gain or loss on these contracts is recorded within translation adjustments, as a component of AOCI on the Company's consolidated balance sheets. The purpose of the hedging activities is to minimize the effect of foreign exchange rate movements on the Company's net investment in these foreign operations. The net investment hedge contracts have varying maturities through the end of January 2020. Hedge effectiveness of the net investment hedge contracts is based on the spot method. At December 31, 2019, the Company had net investment hedges outstanding with a notional amount totaling $1,738 million. ​ 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 $50 million at December 31, 2019. 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	6 Months Ended
	Dec. 31, 2019
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 8 – 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 December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) Level 1 Level 2 Level 3 Total ​ Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts $ — $ 47 $ — $ 47 ​ Interest rate-related derivatives ​ ​ — ​ ​ 3 ​ ​ — ​ ​ 3 ​ Total $ — $ 50 $ — $ 50 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts ​ $ — ​ $ 31 ​ $ — ​ $ 31 ​ Interest rate-related derivatives ​ ​ — ​ ​ 1 ​ ​ — ​ ​ 1 ​ Contingent consideration ​ ​ — ​ ​ — ​ ​ 29 ​ ​ 29 ​ Total $ — ​ $ 32 ​ $ 29 $ 61 ​ ​ 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, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) Level 1 Level 2 Level 3 Total ​ Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts $ — $ 27 $ — $ 27 ​ Interest rate-related derivatives ​ ​ — ​ ​ 3 ​ ​ — ​ ​ 3 ​ Total $ — $ 30 $ — $ 30 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts $ — $ 6 $ — $ 6 ​ Interest rate-related derivatives ​ ​ — ​ ​ 26 ​ ​ — ​ ​ 26 ​ Contingent consideration ​ ​ — ​ ​ — ​ ​ 36 ​ ​ 36 ​ Total ​ $ — ​ $ 32 ​ $ 36 ​ $ 68 ​ ​ The estimated fair values of the Company’s financial instruments are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31 ​ June 30 ​ ​ 2019 ​ 2019 ​ ​ Carrying ​ Fair ​ Carrying ​ Fair (In millions) Amount Value Amount Value Nonderivatives ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents $ 3,596 ​ $ 3,596 $ 2,987 $ 2,987 Current and long-term debt ​ 5,184 ​ ​ 5,696 ​ 3,412 ​ ​ 3,706 Additional purchase price payable ​ ​ — ​ ​ — ​ ​ 3 ​ ​ 3 Contingent consideration ​ ​ 29 ​ ​ 29 ​ ​ 36 ​ ​ 36 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts – asset (liability), net ​ 16 ​ ​ 16 ​ 21 ​ ​ 21 Interest rate-related derivatives – asset (liability), net ​ ​ 2 ​ ​ 2 ​ ​ (23) ​ ​ (23) ​ ​ The following table presents the Company’s impairment charges for the three and six months ended December 31, 2019 for certain of its nonfinancial assets measured at fair value on a nonrecurring basis, classified as Level 3, due to a change in circumstances that triggered an interim impairment test: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date of Fair Value ​ ​ (In millions) Impairment charges Measurement Fair Value (1) Goodwill ​ $ 511 ​ December 31, 2019 ​ $ 264 Other intangible assets, net (trademark) ​ 266 ​ December 31, 2019 ​ 412 Total ​ $ 777 ​ ​ ​ $ 676 (1) See Note 3 – Goodwill and Other Intangible Assets for discussion of the valuation techniques used to measure fair value, the description of the inputs and information used to develop those inputs. ​ The following table presents the Company’s impairment charges for the three and six months ended December 31, 2018 for certain of its nonfinancial assets measured at fair value on a nonrecurring basis, classified as Level 3, due to a change in circumstances that triggered an interim impairment test: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date of Fair Value ​ ​ (In millions) ​ Impairment charges ​ Measurement ​ Fair Value (1) Goodwill ​ $ 20 ​ December 31, 2018 ​ $ 120 Other intangible assets, net (trademark) ​ 18 ​ December 31, 2018 ​ 59 Total ​ $ 38 ​ ​ ​ $ 179 (1) See Note 3 – Goodwill and Other Intangible Assets for discussion of the valuation techniques used to measure fair value, the description of the inputs and information used to develop those inputs. ​ 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 – ​ Foreign currency forward contracts – ​ Interest rate contracts – The fair values of the Company’s interest rate 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 finance 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 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. At December 31, 2019, the fair values of the contingent consideration related to certain acquisition earn-outs were based on the Company’s estimate of the applicable financial targets as per the terms of the agreements. Significant changes in the projected future operating results would result in a significantly higher or lower fair value measurement. As these are unobservable inputs, 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 six months ended December 31, 2019 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, 2019 ​ $ 36 Changes in fair value ​ (7) Contingent consideration at December 31, 2019 ​ $ 29 ​

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Dec. 31, 2019
REVENUE RECOGNITION
REVENUE RECOGNITION	NOTE 9 – REVENUE RECOGNITION ​ The Company's revenue recognition accounting policies are described in the notes to consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2019. ​ Accounts Receivable Accounts receivable, net is stated net of the allowance for doubtful accounts and customer deductions totaling $35 million and $32 million as of December 31, 2019 and June 30, 2019, respectively. The allowance for doubtful accounts is based upon the evaluation of accounts receivable aging, specific exposures and historical trends. Payment terms are short-term in nature and are generally less than one year. ​ Deferred Revenue Significant changes in deferred revenue during the period are as follows: ​ ​ ​ ​ ​ (In millions) December 31, 2019 Balance at June 30, 2019 ​ $ 361 Revenue recognized that was included in the deferred revenue balance at the beginning of the period ​ (243) Revenue deferred during the period ​ 307 Balance at December 31, 2019 ​ $ 425 ​ Transaction Price Allocated to the Remaining Performance Obligations At December 31, 2019, the combined estimated revenue expected to be recognized in the next twelve months related to performance obligations for customer loyalty programs, gift with purchase promotions, purchase with purchase promotions and gift card liabilities that are unsatisfied (or partially unsatisfied) is $378 million.

PENSION AND POST-RETIREMENT BEN

PENSION AND POST-RETIREMENT BENEFIT PLANS	6 Months Ended
	Dec. 31, 2019
PENSION AND POST-RETIREMENT BENEFIT PLANS
PENSION AND POST-RETIREMENT BENEFIT PLANS	NOTE 10 – PENSION 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. The Company also maintains post-retirement benefit plans that provide certain medical and dental benefits to eligible employees. Descriptions of these plans are included in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019. ​ The components of net periodic benefit cost for the three months ended December 31, 2019 and 2018 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other than ​ ​ Pension Plans ​ Pension Plans ​ ​ U.S. ​ International ​ Post-retirement (In millions) 2019 2018 2019 2018 2019 2018 Service cost $ 10 $ 9 $ 9 $ 7 $ 1 $ — Interest cost ​ 9 ​ 9 ​ 2 ​ 3 ​ 1 ​ 2 Expected return on plan assets ​ (13) ​ (13) ​ (4) ​ (4) ​ — ​ — Amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial loss ​ 3 ​ 2 ​ 2 ​ 2 ​ — ​ — Net periodic benefit cost $ 9 $ 7 $ 9 $ 8 $ 2 $ 2 ​ The components of net periodic benefit cost for the six months ended December 31, 2019 and 2018 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other than ​ Pension Plans Pension Plans ​ U.S. International Post-retirement (In millions) 2019 2018 2019 2018 2019 2018 Service cost ​ $ 20 ​ $ 18 ​ $ 18 ​ $ 15 ​ $ 2 ​ $ 1 Interest cost ​ 17 ​ 18 ​ 5 ​ 6 ​ 3 ​ 4 Expected return on plan assets ​ (26) ​ (26) ​ (7) ​ (7) ​ (1) ​ (1) Amortization of: ​ ​ ​ ​ ​ ​ Actuarial loss ​ 7 ​ 5 ​ 3 ​ 2 ​ — ​ — Net periodic benefit cost ​ $ 18 ​ $ 15 ​ $ 19 ​ $ 16 ​ $ 4 ​ $ 4 ​ During the six months ended December 31, 2019, the Company made contributions to its U.S. qualified defined benefit pension plan and international pension plans totaling $20 million and $6 million, respectively. ​ The amounts recognized in the consolidated balance sheets related to the Company’s pension and post-retirement benefit plans consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31 ​ June 30 (In millions) 2019 2019 Other assets $ 123 $ 105 Other accrued liabilities ​ (27) ​ (27) Other noncurrent liabilities ​ (434) ​ (418) Funded status ​ (338) ​ (340) Accumulated other comprehensive loss ​ 325 ​ 334 Net amount recognized $ (13) $ (6) ​

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Dec. 31, 2019
CONTINGENCIES
CONTINGENCIES	NOTE 11 – CONTINGENCIES ​ 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 business, 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 such litigation and legal proceedings are not material to the Company’s consolidated financial statements. ​ Contingencies ​ During the fiscal 2018 third quarter, the Company learned that some of its testing related to certain product advertising claims did not meet the Company’s standards, necessitating further validation. This review is ongoing, resulting in modifications to certain advertising claims. This is not a product safety issue and does not relate to the quality of the ingredients or the manufacturing of the Company’s products. Based on the Company’s review to date, it does not believe that this matter will be material to the Company, and no accrual has been recorded.

STOCK PROGRAMS

STOCK PROGRAMS	6 Months Ended
	Dec. 31, 2019
STOCK PROGRAMS
STOCK PROGRAMS	NOTE 12 – STOCK PROGRAMS ​ Total net stock-based compensation expense is attributable to the granting of, and the remaining requisite service periods of stock options, restricted stock units (“RSUs”), performance share units (“PSUs”), long-term PSUs, and share units. Compensation expense attributable to net stock-based compensation is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ December 31 ​ December 31 (In millions) 2019 2018 2019 2018 Compensation expense $ 83 $ 73 $ 139 $ 131 Income tax benefit ​ $ 15 ​ $ 13 ​ $ 26 ​ $ 25 ​ Stock Options ​ During the six months ended December 31, 2019, the Company granted stock options in respect of approximately 1.3 million shares of Class A Common Stock with an exercise price per share of $199.24 and a weighted-average grant date fair value per share of $51.44. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model. The aggregate intrinsic value of stock options exercised during the six months ended December 31, 2019 was $144 million. ​ Restricted Stock Units ​ The Company granted RSUs in respect of approximately 0.8 million shares of Class A Common Stock during the six months ended December 31, 2019 with a weighted-average grant date fair value per share of $199.26 that, at the time of grant, were scheduled to vest as follows: 0.3 million in fiscal 2021, 0.3 million in fiscal 2022 and 0.2 million in fiscal 2023. Vesting of RSUs is generally subject to the continued employment or the retirement of the grantees. The RSUs are accompanied by dividend equivalent rights, payable upon settlement of the RSUs either in cash or shares (based on the terms of the particular award) and, as such, were valued at the closing market price of the Company’s Class A Common Stock on the date of grant. ​ Performance Share Units ​ During the six months ended December 31, 2019, the Company granted PSUs with a target payout of approximately 0.1 million shares of Class A Common Stock with a grant date fair value per share of $199.18 , 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, 2022, all subject to continued employment or the retirement of the grantees. For PSUs granted, no settlement will occur for results below the applicable minimum threshold. PSUs are accompanied by dividend equivalent rights that will be payable in cash upon settlement of the PSUs and, as such, were valued at the closing market value of the Company’s Class A Common Stock on the date of grant. ​ In September 2019, approximately 0.4 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 the issuance, in settlement of 0.3 million PSUs which vested as of June 30, 2019.

NET EARNINGS ATTRIBUTABLE TO TH

NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE	6 Months Ended
	Dec. 31, 2019
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 13 – 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 numerator and denominator of the basic and diluted EPS computations is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ December 31 ​ December 31 (In millions, except per share data) 2019 2018 2019 2018 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings attributable to The Estée Lauder Companies Inc. $ 557 $ 573 $ 1,152 $ 1,073 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding – Basic ​ 360.2 ​ 363.3 ​ 360.8 ​ ​ 365.1 Effect of dilutive stock options ​ 4.7 ​ 4.6 ​ 4.8 ​ ​ 4.8 Effect of PSUs ​ ​ 0.3 ​ ​ 0.3 ​ ​ 0.2 ​ ​ 0.3 Effect of RSUs ​ 1.5 ​ 1.7 ​ 1.9 ​ ​ 1.9 Weighted-average common shares outstanding – Diluted ​ 366.7 ​ 369.9 ​ 367.7 ​ ​ 372.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings attributable to The Estée Lauder Companies Inc. per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic $ 1.55 $ 1.58 $ 3.19 $ 2.94 Diluted ​ $ 1.52 ​ $ 1.55 ​ $ 3.13 ​ $ 2.88 ​ As of December 31, 2019 and 2018, the number of shares of Class A Common Stock underlying options that were excluded in the computation of diluted EPS because their inclusion would be anti-dilutive was 1.3 million shares and 1.6 million shares, respectively. As of December 31, 2019 and 2018, 1.1 million shares of Class A Common Stock underlying PSUs have been excluded from the calculation of diluted EPS because the number of shares ultimately issued is contingent on the achievement of certain performance targets of the Company, as discussed in Note 12 – Stock Programs

EQUITY

EQUITY	6 Months Ended
	Dec. 31, 2019
EQUITY
EQUITY	NOTE 14 – EQUITY ​ Total Stockholders’ Equity – The Estée Lauder Companies Inc. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Six Months Ended ​ ​ December 31 December 31 (In millions) 2019 2018 2019 2018 Common stock, beginning of the period ​ $ 6 ​ $ 6 ​ $ 6 ​ $ 6 Stock-based compensation ​ — ​ — ​ — ​ — Common stock, end of the period ​ 6 ​ 6 ​ 6 ​ 6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Paid-in capital, beginning of the period ​ 4,514 ​ 4,065 ​ 4,403 ​ 3,972 Common stock dividends ​ 1 ​ — ​ 2 ​ — Stock-based compensation ​ 100 ​ 97 ​ 210 ​ 190 Paid-in capital, end of the period ​ 4,615 ​ 4,162 ​ 4,615 ​ 4,162 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retained earnings, beginning of the period ​ 10,393 ​ 9,170 ​ 9,984 ​ 9,040 Common stock dividends ​ (175) ​ (157) ​ (332) ​ (298) Net earnings attributable to The Estée Lauder Companies Inc. ​ 557 ​ 573 ​ 1,152 ​ 1,073 Cumulative effect of adoption of new accounting standards ​ — ​ — ​ (29) ​ (229) Retained earnings, end of the period ​ 10,775 ​ 9,586 ​ 10,775 ​ 9,586 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated other comprehensive loss, beginning of the period ​ (627) ​ (409) ​ (563) ​ (434) Other comprehensive income (loss) ​ 58 ​ (21) ​ (6) ​ 4 Accumulated other comprehensive loss, end of the period ​ (569) ​ (430) ​ (569) ​ (430) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Treasury stock, beginning of the period ​ (9,756) ​ (8,426) ​ (9,444) ​ (7,896) Acquisition of treasury stock ​ (426) ​ (531) ​ (703) ​ (1,033) Stock-based compensation ​ (71) ​ (61) ​ (106) ​ (89) Treasury stock, end of the period ​ (10,253) ​ (9,018) ​ (10,253) ​ (9,018) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders’ equity – The Estée Lauder Companies Inc. ​ 4,574 ​ 4,306 ​ 4,574 ​ 4,306 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Noncontrolling interests, beginning of the period ​ 28 ​ 24 ​ 25 ​ 22 Net earnings attributable to noncontrolling interests ​ 4 ​ 4 ​ 7 ​ 6 Distribution to noncontrolling interest holders ​ (4) ​ — ​ (4) ​ — Other comprehensive income ​ (1) ​ (1) ​ (1) ​ (1) Noncontrolling interests, end of the period ​ 27 ​ 27 ​ 27 ​ 27 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ​ $ 4,601 ​ $ 4,333 ​ $ 4,601 ​ $ 4,333 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash dividends declared per common share ​ $ .48 ​ $ .43 ​ $ .91 ​ $ .81 ​ The following is a summary of quarterly cash dividends declared per share on the Company’s Class A and Class B Common Stock during the six months ended December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date Declared Record Date Payable Date Amount per Share ​ August 16, 2019 August 30, 2019 September 16, 2019 $ .43 ​ October 30, 2019 ​ November 29, 2019 ​ December 16, 2019 ​ $ .48 ​ ​ On February 5, 2020, a dividend was declared in the amount of $.48 per share on the Company’s Class A and Class B Common Stock. The dividend is payable in cash on March 16, 2020 to stockholders of record at the close of business on February 28, 2020. ​ Common Stock ​ During the six months ended December 31, 2019, the Company purchased approximately 4.3 million shares of its Class A Common Stock for $813 million. ​ During the six months ended December 31, 2019, approximately 2.3 million shares of the Company’s Class B Common Stock were converted into the same amount of shares of the Company’s Class A Common Stock. ​ Accumulated Other Comprehensive Income (Loss) ​ The following table represents changes in AOCI, net of tax, by component for the six months ended December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Cash ​ Included in Net ​ ​ ​ ​ ​ ​ ​ ​ ​ Flow Hedge ​ Periodic Benefit ​ Translation ​ ​ ​ ​ (In millions) Gain (Loss) Cost Adjustments Total ​ Balance at June 30, 2019 $ 21 $ (253) ​ $ (331) $ (563) ​ OCI before reclassifications ​ (4) ​ (1) (1) 3 (2) (2) ​ Amounts reclassified to Net earnings ​ ​ (14) ​ ​ 8 ​ ​ 2 ​ ​ (4) ​ Net current-period OCI ​ (18) ​ 7 ​ 5 ​ (6) ​ Balance at December 31, 2019 $ 3 $ (246) ​ $ (326) $ (569) ​ (1) Consists of foreign currency translation losses. (2) See Note 7 - Derivative Financial Instruments for gains (losses) relating to net investment hedges. ​ The following table represents the effects of reclassification adjustments from AOCI into net earnings for the three and six months ended December 31, 2019 and 2018: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount Reclassified from AOCI ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ Affected Line Item in ​ ​ December 31 ​ December 31 ​ Consolidated (In millions) 2019 2018 2019 2018 Statements of Earnings Gain (Loss) on Cash Flow Hedges ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts $ 6 $ 4 ​ $ 19 $ 7 ​ Net sales Benefit (provision) for deferred taxes ​ (2) ​ (1) ​ (5) ​ (2) ​ Provision for income taxes ​ $ 4 $ 3 ​ $ 14 $ 5 ​ Net earnings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts Included in Net Periodic Benefit Cost ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization of actuarial loss ​ $ (5) ​ $ (4) ​ $ (10) ​ $ (7) ​ Earnings before income taxes (1) Benefit for deferred taxes ​ 1 ​ 1 ​ 2 ​ 2 ​ Provision for income taxes ​ $ (4) ​ $ (3) ​ $ (8) ​ $ (5) ​ Net earnings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative Translation Adjustments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain on previously held equity method investment ​ $ 4 ​ $ — ​ $ 4 ​ $ — ​ Other income Loss on liquidation of an investment in a foreign subsidiary ​ ​ — ​ ​ — ​ ​ (6) ​ ​ — ​ Restructuring and other charges ​ ​ $ 4 ​ $ — ​ $ (2) ​ $ — ​ Net earnings Total reclassification adjustments, net $ 4 $ — ​ $ 4 $ — ​ Net earnings (1) See Note 10 – Pension and Post-Retirement Benefit Plans for additional information.

STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS	6 Months Ended
	Dec. 31, 2019
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS	NOTE 15 – STATEMENT OF CASH FLOWS ​ Supplemental cash flow information for the six months ended December 31, 2019 and 2018 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) 2019 2018 ​ Cash: ​ ​ ​ ​ ​ ​ ​ Cash paid during the period for interest $ 63 $ 66 ​ Cash paid during the period for income taxes $ 314 $ 217 ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-cash investing and financing activities: ​ ​ ​ ​ ​ ​ ​ Capital lease, capitalized interest and asset retirement obligations incurred $ — $ 8 ​ Property, plant and equipment accrued but unpaid $ 53 $ 35 ​ ​

SEGMENT DATA AND RELATED INFORM

SEGMENT DATA AND RELATED INFORMATION	6 Months Ended
	Dec. 31, 2019
SEGMENT DATA AND RELATED INFORMATION
SEGMENT DATA AND RELATED INFORMATION	NOTE 16 – 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. Although the Company operates in one business segment, beauty products, management also evaluates performance on a product category basis. Product category performance is measured based upon net sales before returns associated with restructuring and other activities, and earnings before income taxes, other components of net periodic benefit cost, interest expense, interest income and investment income, net, other income, 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. ​ During the fiscal 2020 first quarter, changes were made to reflect certain Leading Beauty Forward enhancements made to the capabilities and cost structure of the Company’s travel retail business, which are primarily centralized in The Americas region, and resulted in a change to the royalty structure of the travel retail business to reflect the value created in The Americas region. Accordingly, the fiscal 2019 operating income of The Americas was increased, with a corresponding decrease in Europe, the Middle East & Africa, by $210 million and $411 million for the three and six months ended December 31, 2018, respectively, to conform with the current year methodology and presentation. ​ The accounting policies for the Company’s reportable segments are substantially the same as those for the consolidated financial statements, as described in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019. 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. Other than the changes in total assets as a result of the acquisition discussed in Note 2 - Acquisition of Business Note 3 – Goodwill and Other Intangible Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ December 31 ​ December 31 (In millions) 2019 2018 2019 2018 PRODUCT CATEGORY DATA ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Skin Care $ 2,205 $ 1,732 $ 4,047 $ 3,218 Makeup ​ 1,660 ​ 1,560 ​ 3,103 ​ 2,966 Fragrance ​ 581 ​ 537 ​ 1,043 ​ 1,009 Hair Care ​ 162 ​ 154 ​ 298 ​ 297 Other ​ ​ 16 ​ ​ 22 ​ ​ 28 ​ ​ 39 Net sales $ 4,624 $ 4,005 $ 8,519 $ 7,529 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) before charges associated with restructuring and other activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Skin Care $ 772 $ 565 $ 1,404 $ 1,031 Makeup ​ (611) ​ 138 ​ (507) ​ 299 Fragrance ​ 97 ​ 84 ​ 163 ​ 139 Hair Care ​ 12 ​ 15 ​ 12 ​ 29 Other ​ 4 ​ 4 ​ 6 ​ 7 ​ ​ 274 ​ 806 ​ 1,078 ​ 1,505 Reconciliation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Charges associated with restructuring and other activities ​ ​ (13) ​ ​ (35) ​ ​ (38) ​ ​ (82) Interest expense ​ (38) ​ (35) ​ (70) ​ (69) Interest income and investment income, net ​ ​ 13 ​ ​ 12 ​ ​ 27 ​ ​ 27 Other components of net periodic benefit cost ​ ​ (1) ​ ​ — ​ ​ (2) ​ ​ — Other income ​ ​ 576 ​ ​ — ​ ​ 576 ​ ​ — Earnings before income taxes $ 811 $ 748 $ 1,571 $ 1,381 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ GEOGRAPHIC DATA (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Americas $ 1,226 $ 1,218 $ 2,386 $ 2,454 Europe, the Middle East & Africa ​ 2,079 ​ 1,767 ​ 3,756 ​ 3,200 Asia/Pacific ​ ​ 1,319 ​ ​ 1,020 ​ ​ 2,377 ​ ​ 1,875 Net sales $ 4,624 $ 4,005 $ 8,519 $ 7,529 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Americas $ (529) $ 149 $ (354) $ 383 Europe, the Middle East & Africa ​ 505 ​ 418 ​ 882 ​ 675 Asia/Pacific ​ 298 ​ 239 ​ 550 ​ 447 ​ ​ ​ 274 ​ ​ 806 ​ ​ 1,078 ​ ​ 1,505 Charges associated with restructuring and other activities ​ ​ (13) ​ ​ (35) ​ ​ (38) ​ ​ (82) Operating income ​ $ 261 ​ $ 771 ​ $ 1,040 ​ $ 1,423 (1) The net sales and operating income from the Company’s travel retail business are included in the Europe, the Middle East & Africa region.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation ​ The accompanying consolidated financial statements include the accounts of The Estée Lauder Companies Inc. and its subsidiaries (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated. ​ The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019. ​ 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. 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. Descriptions of the Company’s significant accounting policies are discussed in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019. Management evaluates the related estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates and assumptions resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods.
Currency Translation and Transactions	Currency Translation and Transactions ​ All assets and liabilities of foreign subsidiaries and affiliates are translated at period-end rates of exchange, while revenue and expenses are translated at weighted-average rates of exchange for the period. Unrealized translation gains (losses), net of tax, reported as cumulative translation adjustments through other comprehensive income (loss) (“OCI”) attributable to The Estée Lauder Companies Inc. were ​ 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. Beginning in the first quarter of fiscal 2020, the Company entered into foreign currency forward contracts to hedge a portion of its net investment in certain foreign operations, which are designated as net investment hedges. See Note 7 - Derivative Financial Instruments . ​ The accompanying consolidated statements of earnings include net exchange gains (losses) on foreign currency transactions of $27 million and $(7) million during the three months ended December 31, 2019 and 2018, respectively, and $24 million and $(21) million during the six months ended December 31, 2019 and 2018, respectively. ​
Concentration of Credit Risk	Concentration of Credit Risk ​ The Company is a worldwide manufacturer, marketer and distributor of skin care, makeup, fragrance and hair care products. The Company’s sales subject to credit risk are made primarily to department stores, perfumeries, specialty multi-brand retailers and retailers in its travel retail business. The Company grants credit to qualified customers and does not believe it is exposed significantly to any undue concentration of credit risk. ​
Inventory and Promotional Merchandise	Inventory and Promotional Merchandise ​ Inventory and promotional merchandise consists of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31 ​ June 30 ​ (In millions) 2019 2019 Raw materials $ 519 $ 541 ​ Work in process ​ 237 ​ 268 ​ Finished goods ​ 1,101 ​ 981 ​ Promotional merchandise ​ 201 ​ 216 ​ ​ $ 2,058 $ 2,006 ​ ​
Property, Plant and Equipment	Property, Plant and Equipment ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31 ​ June 30 ​ (In millions) 2019 2019 Assets (Useful Life) ​ ​ ​ ​ ​ ​ ​ Land $ 29 $ 29 ​ Buildings and improvements (10 to 40 years) ​ 367 ​ 337 ​ Machinery and equipment (3 to 10 years) ​ 836 ​ 811 ​ Computer hardware and software (4 to 10 years) ​ 1,308 ​ 1,264 ​ Furniture and fixtures (5 to 10 years) ​ 117 ​ 116 ​ Leasehold improvements ​ 2,385 ​ 2,274 ​ ​ ​ 5,042 ​ 4,831 ​ Less accumulated depreciation and amortization ​ (2,956) ​ (2,763) ​ ​ $ 2,086 $ 2,068 ​ ​ The cost of assets related to projects in progress of $503 million and $474 million as of December 31, 2019 and June 30, 2019, respectively, is included in their respective asset categories above. Depreciation and amortization of property, plant and equipment was $127 million and $121 million during the three months ended December 31, 2019 and 2018, respectively, and $252 million and $237 million during the six months ended December 31, 2019 and 2018, respectively. Depreciation and amortization related to the Company’s manufacturing process is included in Cost of sales, and all other depreciation and amortization is included in Selling, general and administrative expenses in the accompanying consolidated statements of earnings.
Income Taxes	Income Taxes ​ The effective rate for income taxes was 30.8% and 22.9% for the three months ended December 31, 2019 and 2018, respectively, and 26.2% and 21.9% for the six months ended December 31, 2019 and 2018, respectively. The increase in the effective tax rate in both periods was primarily attributable to the impact of nondeductible goodwill impairment charges associated with the Company's Too Faced, BECCA and Smashbox reporting units and to a higher effective tax rate on the Company's foreign operations. ​ As of December 31, 2019 and June 30, 2019, the gross amount of unrecognized tax benefits, exclusive of interest and penalties, totaled $67 million. The total amount of unrecognized tax benefits at December 31, 2019 that, if recognized, would affect the effective tax rate was $50 million. The total gross interest and penalties accrued related to unrecognized tax benefits during the three and six months ended December 31, 2019 in the accompanying consolidated statements of earnings was $1 million and $2 million, respectively. At December 31, 2019 and June 30, 2019, the total gross accrued interest and penalties in the accompanying consolidated balance sheets was $12 million. On the basis of the information available as of December 31, 2019, the Company does not expect significant changes to the total amount of unrecognized tax benefits within the next twelve months.
Other Accrued Liabilities	Other Accrued Liabilities ​ Other accrued liabilities consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31 ​ June 30 ​ (In millions) 2019 2019 Advertising, merchandising and sampling $ 416 $ 352 ​ Employee compensation ​ 437 ​ 574 ​ Deferred revenue ​ ​ 378 ​ ​ 314 ​ Payroll and other taxes ​ 325 ​ 221 ​ Accrued general and administrative expenses ​ ​ 256 ​ ​ 195 ​ Other ​ 1,113 ​ 943 ​ ​ $ 2,925 $ 2,599 ​ ​
Recently Adopted and Issued Accounting Standards	Recently Adopted Accounting Standards ​ Leases (Accounting Standards Codification ("ASC") Topic 842 - Leases ("ASC 842")) In February 2016, the Financial Accounting Standards Board (“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 is based on the lease liability adjusted for certain costs such as initial direct costs, prepaid lease payments and lease incentives received. Lease expense is recognized similar to previous accounting guidance with operating leases resulting in a straight-line expense, and finance leases resulting in a front-loaded expense similar to the previous accounting for capital leases. ​ In July 2018, the FASB amended this guidance to clarify certain narrow aspects of the new lease accounting standard that may have been incorrectly or inconsistently applied, and did not add new guidance. Also, in July 2018, the FASB issued authoritative guidance that allows companies to elect to adopt the new standard using a modified retrospective transition approach with a cumulative-effect adjustment to retained earnings in the period of adoption. Companies that elect the new adoption method were not required to restate the prior comparative periods in the financial statements. ​ Effective for the Company – ​ Impact on consolidated financial statements - Note 4 - Leases . ​ Recently Issued Accounting Standards ​ Measurement of Credit Losses on Financial Instruments (ASC Topic 326 - Financial Instruments - Credit Losses) 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 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, and requires additional disclosures. In general, modified retrospective adoption will be required for all outstanding instruments that fall under this guidance. ​ In November 2019, the FASB issued authoritative guidance (Accounting Standards Update (“ASU”) 2019-11 - Codification Improvements to Topic 326, Financial Instruments – Credit Losses) that amends ASC Topic 326 to clarify, improve and amend certain aspects of this guidance, such as disclosures related to accrued interest receivables and the estimation of credit losses associated with financial assets secured by collateral. ​ Effective for the Company - ​ Impact on consolidated financial statements – ​ Goodwill and Other – Internal-Use Software (ASU 2018-15 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract) In August 2018, the FASB issued authoritative guidance that permits companies to capitalize the costs incurred for setting up business systems that operate on cloud technology. The new guidance aligns the requirement for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance does not affect the accounting for the service element of a hosting arrangement that is a service contract. Capitalized costs associated with a hosting arrangement that is a service contract must be amortized over the term of the hosting arrangement to the same line item in the income statement as the expense for fees for the hosting arrangement. ​ Effective for the Company – Fiscal 2021 first quarter, with early adoption permitted in any interim period. This guidance can be adopted either retrospectively, or prospectively to all implementation costs incurred after the date of adoption. ​ Impact on consolidated financial statements – The Company is currently evaluating the impact of applying this guidance to its business systems that operate on cloud technology. While the Company’s evaluation is ongoing, the adoption of this standard is not expected to have a material impact on its consolidated financial statements. ​ Income Taxes (ASU 2019-12 – Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes) In December 2019, the FASB issued authoritative guidance that simplifies the accounting for income taxes by removing certain exceptions and making simplifications in other areas. ​ Effective for the Company – Fiscal 2022 first quarter, with early adoption permitted in any interim period. If adopted early, the Company must adopt all the amendments in the same period. The amendments have differing adoption methods including retrospectively, prospectively and/or modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption, depending on the specific change. ​ Impact on consolidated financial ​ No other recently issued accounting pronouncements are expected to have a material impact on the Company’s consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of inventory and promotional merchandise	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31 ​ June 30 ​ (In millions) 2019 2019 Raw materials $ 519 $ 541 ​ Work in process ​ 237 ​ 268 ​ Finished goods ​ 1,101 ​ 981 ​ Promotional merchandise ​ 201 ​ 216 ​ ​ $ 2,058 $ 2,006 ​
Schedule of property, plant and equipment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31 ​ June 30 ​ (In millions) 2019 2019 Assets (Useful Life) ​ ​ ​ ​ ​ ​ ​ Land $ 29 $ 29 ​ Buildings and improvements (10 to 40 years) ​ 367 ​ 337 ​ Machinery and equipment (3 to 10 years) ​ 836 ​ 811 ​ Computer hardware and software (4 to 10 years) ​ 1,308 ​ 1,264 ​ Furniture and fixtures (5 to 10 years) ​ 117 ​ 116 ​ Leasehold improvements ​ 2,385 ​ 2,274 ​ ​ ​ 5,042 ​ 4,831 ​ Less accumulated depreciation and amortization ​ (2,956) ​ (2,763) ​ ​ $ 2,086 $ 2,068 ​ ​
Schedule of other accrued liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31 ​ June 30 ​ (In millions) 2019 2019 Advertising, merchandising and sampling $ 416 $ 352 ​ Employee compensation ​ 437 ​ 574 ​ Deferred revenue ​ ​ 378 ​ ​ 314 ​ Payroll and other taxes ​ 325 ​ 221 ​ Accrued general and administrative expenses ​ ​ 256 ​ ​ 195 ​ Other ​ 1,113 ​ 943 ​ ​ $ 2,925 $ 2,599 ​ ​

ACQUISITION OF BUSINESS (Tables

ACQUISITION OF BUSINESS (Tables)	6 Months Ended
	Dec. 31, 2019
ACQUISITION OF BUSINESS
Preliminary allocation of total consideration transferred	​ ​ ​ ​ ​ (In millions, unaudited) ​ ​ Cash ​ $ 228 Accounts receivable ​ 48 Inventory ​ 83 Other current assets ​ 5 Property, plant and equipment ​ 3 Right-of-use assets ​ ​ 3 Intangible assets ​ 1,427 Goodwill ​ 556 Other long-term assets ​ ​ 3 Total assets acquired ​ 2,356 ​ ​ ​ ​ Accounts payable ​ 27 Other accrued liabilities ​ 22 Deferred income taxes ​ 352 Lease liability ​ ​ 1 Total liabilities assumed ​ 402 Total consideration transferred ​ $ 1,954

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Dec. 31, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of goodwill by product category and related change in the carrying amount	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) Skin Care Makeup Fragrance Hair Care Total Balance as of June 30, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill $ 185 $ 1,199 $ 254 $ 390 $ 2,028 ​ Accumulated impairments ​ (36) ​ (68) ​ (22) ​ (34) ​ (160) ​ ​ ​ 149 ​ 1,131 ​ 232 ​ 356 ​ 1,868 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill acquired during the period ​ 556 ​ ​ 7 ​ ​ — ​ ​ — ​ ​ 563 ​ Impairment charges ​ ​ — ​ ​ (511) ​ ​ — ​ ​ — ​ ​ (511) ​ Translation adjustments, goodwill ​ ​ (1) ​ ​ — ​ ​ — ​ ​ — ​ ​ (1) ​ Translation adjustments, accumulated impairments ​ 1 ​ ​ — ​ ​ — ​ ​ — ​ ​ 1 ​ ​ ​ 556 ​ ​ (504) ​ ​ — ​ ​ — ​ ​ 52 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of December 31, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill ​ 740 ​ ​ 1,206 ​ ​ 254 ​ ​ 390 ​ ​ 2,590 ​ Accumulated impairments ​ (35) ​ ​ (579) ​ ​ (22) ​ ​ (34) ​ ​ (670) ​ ​ $ 705 $ 627 $ 232 $ 356 $ 1,920 ​
Schedule of other intangible assets, by type	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ June 30, 2019 ​ ​ ​ Gross ​ ​ ​ ​ Total Net ​ Gross ​ ​ ​ ​ Total Net ​ ​ ​ Carrying ​ Accumulated ​ Book ​ Carrying ​ Accumulated ​ Book ​ (In millions) Value Amortization Value Value Amortization Value Amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer lists and other $ 1,524 $ 389 $ 1,135 $ 684 $ 369 $ 315 ​ License agreements ​ 43 ​ 43 ​ — ​ 43 ​ 43 ​ — ​ ​ $ 1,567 $ 432 ​ 1,135 $ 727 $ 412 ​ 315 ​ Non-amortizable intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trademarks ​ ​ ​ ​ ​ ​ ​ 1,207 ​ ​ ​ ​ ​ ​ ​ 888 ​ Total intangible assets ​ ​ ​ ​ ​ ​ $ 2,342 ​ ​ ​ ​ ​ ​ $ 1,203 ​
Estimated aggregate amortization expense for the remainder of the current fiscal year and the next four years	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal ​ (In millions) 2020 2021 2022 2023 2024 Estimated aggregate amortization expense $ 53 $ 104 $ 103 $ 103 $ 101 ​
Summary of impairment charges and remaining trademark and goodwill carrying values	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) ​ Impairment Charge Carrying Value Reporting Unit: Trademark Goodwill Trademark Goodwill Too Faced ​ $ 211 ​ $ 430 ​ $ 314 ​ $ 175 BECCA ​ 33 ​ 35 ​ 65 ​ 63 Smashbox ​ 22 ​ 46 ​ 33 ​ 26 Total ​ $ 266 ​ $ 511 ​ $ 412 ​ $ 264

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Dec. 31, 2019
LEASES
Summary of total lease costs and other information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Six Months Ended (In millions) ​ December 31, 2019 ​ December 31, 2019 Total lease cost ​ ​ ​ ​ Finance lease cost: ​ ​ ​ ​ ​ ​ ​ ​ Amortization of right-of-use assets ​ $ 3 ​ ​ $ 6 ​ Interest on lease liabilities ​ — ​ ​ — ​ Operating lease cost ​ 115 ​ ​ 233 ​ Short-term lease cost ​ 9 ​ ​ 15 ​ Variable lease cost ​ 49 ​ ​ 92 ​ Total ​ $ 176 ​ ​ $ 346 ​ Other information ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ ​ ​ ​ ​ $ 242 ​ Financing cash flows from finance leases ​ ​ ​ ​ ​ $ 8 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ ​ ​ ​ $ 110 ​ Weighted-average remaining lease term – finance leases ​ ​ ​ ​ 2 years Weighted-average remaining lease term – operating leases ​ ​ ​ ​ 11 years Weighted-average discount rate – finance leases ​ ​ ​ ​ 2.7 % Weighted-average discount rate – operating leases ​ ​ ​ ​ 2.5 %
Schedule of total future minimum lease payments, over the remaining lease term, relating to operating leases	​ ​ ​ ​ ​ ​ ​ ​ (In millions) Operating Leases Finance Leases Remainder of fiscal 2020 ​ $ 219 ​ $ 6 Fiscal 2021 ​ 393 ​ 7 Fiscal 2022 ​ 347 ​ 3 Fiscal 2023 ​ 310 ​ 1 Fiscal 2024 ​ 286 ​ — Thereafter ​ 1,559 ​ — Total future minimum lease payments ​ 3,114 ​ 17 Less imputed interest ​ (427) ​ — Total ​ $ 2,687 ​ $ 17
Schedule of total future minimum lease payments, over the remaining lease term, relating to finance leases	​ ​ ​ ​ ​ ​ ​ ​ (In millions) Operating Leases Finance Leases Remainder of fiscal 2020 ​ $ 219 ​ $ 6 Fiscal 2021 ​ 393 ​ 7 Fiscal 2022 ​ 347 ​ 3 Fiscal 2023 ​ 310 ​ 1 Fiscal 2024 ​ 286 ​ — Thereafter ​ 1,559 ​ — Total future minimum lease payments ​ 3,114 ​ 17 Less imputed interest ​ (427) ​ — Total ​ $ 2,687 ​ $ 17
Schedule of operating lease and finance lease liabilities included in the consolidated balance sheet	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 (In millions) Operating Leases Finance Leases Total current liabilities ​ $ 369 ​ $ 10 Total noncurrent liabilities ​ 2,318 ​ 7 Total ​ $ 2,687 ​ $ 17
Scheduled maturities of the Company's contractual obligations relating to operating leases for which cash flows are fixed and determinable	​ ​ ​ ​ ​ (In millions) Payments Due in Fiscal Year (1) Fiscal 2020 ​ $ 421 Fiscal 2021 ​ 383 Fiscal 2022 ​ 348 Fiscal 2023 ​ 316 Fiscal 2024 ​ 289 Thereafter ​ 1,625 Total contractual obligations ​ $ 3,382 (1) 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.

CHARGES ASSOCIATED WITH RESTR_2

CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES (Tables)	6 Months Ended
	Dec. 31, 2019
CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES
Schedule of total cumulative charges by type recorded associated with restructuring and other activities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee- ​ Asset- ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Related ​ Related ​ Contract ​ Other Exit ​ ​ ​ (In millions) Costs Costs Terminations Costs Total Restructuring Charges ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative through June 30, 2019 ​ $ 445 ​ $ 4 ​ $ 3 ​ $ 5 ​ $ 457 Six months ended December 31, 2019 ​ ​ — ​ ​ — ​ ​ — ​ ​ 1 ​ ​ 1 Cumulative through December 31, 2019 ​ $ 445 ​ $ 4 ​ $ 3 ​ $ 6 ​ $ 458
Leading Beauty Forward
CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES
Schedule of total cumulative charges expected to be incurred associated with restructuring and other activities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Returns ​ ​ ​ ​ Operating Expenses ​ ​ ​ ​ ​ (included in ​ ​ ​ ​ Restructuring ​ Other ​ ​ ​ (In millions) Net Sales) Cost of Sales Charges Charges Total Total Charges Approved ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative through December 31, 2019 ​ $ 14 ​ $ 88 ​ $ 507 ​ $ 358 ​ $ 967
Schedule of total cumulative charges by type approved associated with restructuring initiatives	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee- ​ Asset- ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Related ​ Related ​ Contract ​ Other Exit ​ ​ ​ (In millions) Costs Costs Terminations Costs Total Restructuring Charges Approved ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative through December 31, 2019 ​ $ 461 ​ $ 7 ​ $ 25 ​ $ 14 ​ $ 507
Schedule of total cumulative charges recorded associated with restructuring and other activities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Returns ​ ​ ​ ​ Operating Expenses ​ ​ ​ ​ ​ (included in ​ ​ ​ ​ Restructuring ​ Other ​ ​ ​ (In millions) Net Sales) Cost of Sales Charges Charges Total ​ Total Charges ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative through June 30, 2019 ​ $ 14 ​ $ 55 ​ $ 457 ​ $ 265 ​ $ 791 ​ Six months ended December 31, 2019 ​ ​ — ​ ​ 8 ​ ​ 1 ​ ​ 29 ​ ​ 38 ​ Cumulative through December 31, 2019 ​ $ 14 ​ $ 63 ​ $ 458 ​ $ 294 ​ $ 829 ​
Schedule of changes in accrued restructuring charges	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee- ​ Asset- ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Related ​ Related ​ Contract ​ Other Exit ​ ​ ​ ​ (In millions) Costs Costs Terminations Costs Total Balance at June 30, 2019 ​ $ 202 ​ $ — ​ $ — ​ $ 1 ​ $ 203 ​ Charges ​ ​ — ​ ​ — ​ ​ — ​ ​ 1 ​ ​ 1 ​ Cash payments ​ ​ (52) ​ ​ — ​ ​ — ​ ​ (2) ​ ​ (54) ​ Balance at December 31, 2019 ​ $ 150 ​ $ — ​ $ — ​ $ — ​ $ 150 ​

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Dec. 31, 2019
DEBT
Schedule of long-term debt	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unamortized ​ Debt ​ Semi-annual ​ ​ ​ ​ ​ ​ ​ ​ Debt ​ Issuance ​ interest Notes Issue Date Price Yield Discount Costs payments ($ in millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 Senior Notes ​ November 2019 ​ 99.421 % 2.122 % $ 3 ​ $ 3 ​ June 1/December 1 2029 Senior Notes (1) November 2019 99.046 2.483 ​ 6 ​ 4 June 1/December 1 2049 Senior Notes November 2019 98.769 3.189 ​ 8 ​ 7 June 1/December 1 (1) In April and May 2019, in anticipation of the issuance of the 2029 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $500 million at a weighted-average all-in rate of 2.50%. The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a loss in OCI of $33 million that is being amortized to interest expense over the life of the 2029 Senior Notes. As a result of the treasury lock agreements, as well as the debt discount and debt issuance costs, the effective interest rate on the 2029 Senior Notes will be 3.15% over the life of the debt.

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Dec. 31, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Schedule of fair values of the derivative financial instruments included in the consolidated balance sheets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset Derivatives ​ Liability Derivatives ​ ​ ​ ​ ​ Fair Value (1) ​ ​ ​ Fair Value (1) ​ ​ ​ Balance Sheet ​ December 31 ​ June 30 ​ Balance Sheet ​ December 31 ​ June 30 ​ (In millions) Location 2019 2019 Location 2019 2019 ​ Derivatives Designated as Hedging Instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency cash flow hedges ​ Prepaid expenses and other current assets $ 16 ​ $ 23 Other accrued liabilities $ 9 $ 4 ​ Net investment hedges ​ Prepaid expenses and other current assets ​ ​ — ​ ​ — ​ Other accrued liabilities ​ ​ 19 ​ ​ — ​ Interest rate-related derivatives ​ Prepaid expenses and other current assets ​ ​ 3 ​ ​ 3 ​ Other accrued liabilities ​ ​ 1 ​ ​ 26 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Derivatives Designated as Hedging Instruments ​ ​ ​ ​ 19 ​ ​ 26 ​ ​ ​ ​ 29 ​ ​ 30 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives Not Designated as Hedging Instruments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts Prepaid expenses and other current assets ​ 31 ​ 4 Other accrued liabilities ​ 3 ​ 2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Derivatives ​ ​ $ 50 ​ $ 30 ​ ​ $ 32 $ 32 ​ (1) See Note 8 – 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 that are included in the assessment of effectiveness	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) ​ ​ ​ Amount of Gain or (Loss) ​ ​ Recognized in OCI on ​ ​ ​ Reclassified from AOCI into ​ ​ Derivatives ​ Location of Gain or ​ Earnings (1) ​ ​ Three Months Ended ​ (Loss) Reclassified ​ Three Months Ended ​ ​ December 31 ​ from AOCI into ​ December 31 (In millions) 2019 2018 Earnings 2019 2018 Derivatives in Cash Flow Hedging Relationships: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts $ (21) $ 13 Net sales $ 6 $ 4 Interest rate-related derivatives ​ ​ 5 ​ ​ — ​ Interest expense ​ ​ — ​ ​ — ​ ​ ​ (16) ​ ​ 13 ​ Total derivatives ​ $ 6 ​ $ 4 Derivatives in Net Investment Hedging Relationships (2) : ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts (3) ​ ​ (37) ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ Total derivatives $ (53) $ 13 ​ ​ ​ ​ ​ ​ ​ (1) The amount reclassified into earnings as a result of the discontinuance of cash flow hedges because probable forecasted transactions will no longer occur by the end of the original time period was not material. (2) During the three months ended December 31, 2019, the gain recognized in earnings from net investment hedges related to the amount excluded from effectiveness testing was $13 million. (3) Included within translation adjustments as a component of AOCI on the Company’s consolidated balance sheets. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) ​ ​ ​ Amount of Gain or (Loss) ​ ​ Recognized in OCI on ​ ​ ​ Reclassified from AOCI into ​ ​ Derivatives ​ Location of Gain or ​ Earnings (1) ​ Six Months Ended ​ (Loss) Reclassified ​ Six Months Ended ​ December 31 ​ from AOCI into ​ December 31 (In millions) 2019 2018 Earnings 2019 2018 Derivatives in Cash Flow Hedging Relationships: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts ​ $ 4 ​ $ 16 ​ Net sales ​ $ 19 ​ $ 7 Interest rate-related derivatives ​ ​ (9) ​ ​ — ​ Interest expense ​ — ​ — ​ ​ ​ (5) ​ ​ 16 ​ Total derivatives ​ $ 19 ​ $ 7 Derivatives in Net Investment Hedging Relationships (2) : ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts (3) ​ (34) ​ — ​ ​ ​ ​ ​ ​ ​ ​ Total derivatives ​ $ (39) ​ $ 16 ​ ​ ​ ​ ​ ​ ​ ​ (1) The amount reclassified into earnings as a result of the discontinuance of cash flow hedges because probable forecasted transactions will no longer occur by the end of the original time period was not material. (2) During the six months ended December 31, 2019, the gain recognized in earnings from net investment hedges related to the amount excluded from effectiveness testing was $25 million. (3) Included within translation adjustments as a component of AOCI on the Company’s consolidated balance sheets. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) Recognized in Earnings on ​ ​ Derivatives (1) ​ ​ Location of Gain or (Loss) ​ Three Months Ended ​ Six Months Ended ​ ​ Recognized in Earnings on ​ December 31 ​ December 31 (In millions) ​ Derivatives ​ 2019 2018 2019 2018 Derivatives in Fair Value Hedging Relationships: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swap contracts Interest expense $ (1) $ 11 $ 1 $ 9 (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 cumulative amount of fair value hedging adjustments for designated and qualifying hedged items	​ ​ ​ ​ ​ ​ ​ ​ (In millions) ​ ​ ​ ​ ​ ​ ​ Cumulative Amount of Fair ​ ​ ​ ​ ​ Value Hedging Gain/(Loss) Line Item in the Consolidated Balance Sheets in ​ Carrying Amount of the ​ Included in the Carrying Amount Which the Hedged Item is Included ​ Hedged Liabilities ​ of the Hedged Liability ​ December 31, 2019 December 31, 2019 Current debt ​ $ 250 ​ $ — Long-term debt ​ ​ 701 ​ ​ 2 Total debt ​ $ 951 ​ $ 2
Schedule of effects of fair value and cash flow hedging relationships for designated and qualified hedging instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended December 31 ​ ​ 2019 2018 ​ ​ Interest ​ Interest (In millions) ​ Net Sales ​ expense ​ Net Sales ​ expense Total amounts of income and expense line items presented in the consolidated statements of earnings in which the effects of fair value and cash flow hedges are recorded ​ $ 4,624 ​ $ 38 ​ $ 4,005 ​ $ 35 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The effects of fair value and cash flow hedging relationships: ​ ​ ​ ​ Gain (loss) on fair value hedge relationships – interest rate contracts: ​ ​ ​ ​ Hedged item ​ Not applicable ​ (1) ​ Not applicable ​ 11 Derivatives designated as hedging instruments ​ Not applicable ​ 1 ​ Not applicable ​ (11) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (loss) on cash flow hedge relationships – foreign currency forward contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of gain reclassified from AOCI into earnings ​ ​ 6 ​ ​ Not applicable ​ ​ 4 ​ ​ Not applicable ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended December 31 ​ ​ 2019 ​ 2018 (In millions) Net Sales Interest expense Net Sales Interest expense Total amounts of income and expense line items presented in the consolidated statements of earnings in which the effects of fair value and cash flow hedges are recorded ​ $ 8,519 ​ $ 70 ​ $ 7,529 ​ $ 69 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The effects of fair value and cash flow hedging relationships: ​ ​ ​ ​ Gain (loss) on fair value hedge relationships – interest rate contracts: ​ ​ ​ ​ Hedged item ​ Not applicable ​ 1 ​ Not applicable ​ 9 Derivatives designated as hedging instruments ​ Not applicable ​ (1) ​ Not applicable ​ (9) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (loss) on cash flow hedge relationships – foreign currency forward contracts: ​ ​ ​ ​ Amount of gain reclassified from AOCI into earnings ​ 19 ​ Not applicable ​ 7 ​ Not applicable
Schedule of gains and losses related to derivative financial instruments not designated as hedging instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) ​ ​ ​ ​ ​ Recognized in Earnings on ​ ​ ​ ​ ​ Derivatives ​ ​ ​ Location of Gain or (Loss) ​ Three Months Ended ​ Six Months Ended ​ ​ ​ Recognized in Earnings on ​ December 31 ​ December 31 ​ (In millions) Derivatives 2019 2018 2019 2018 ​ Derivatives Not Designated as Hedging Instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts Selling, general and administrative $ 30 $ (12) $ 3 $ 10 ​

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Dec. 31, 2019
FAIR VALUE MEASUREMENTS
Schedule of financial assets and liabilities measured at fair value on a recurring basis	​ ​ The following table presents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) Level 1 Level 2 Level 3 Total ​ Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts $ — $ 47 $ — $ 47 ​ Interest rate-related derivatives ​ ​ — ​ ​ 3 ​ ​ — ​ ​ 3 ​ Total $ — $ 50 $ — $ 50 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts ​ $ — ​ $ 31 ​ $ — ​ $ 31 ​ Interest rate-related derivatives ​ ​ — ​ ​ 1 ​ ​ — ​ ​ 1 ​ Contingent consideration ​ ​ — ​ ​ — ​ ​ 29 ​ ​ 29 ​ Total $ — ​ $ 32 ​ $ 29 $ 61 ​ ​ 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, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) Level 1 Level 2 Level 3 Total ​ Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts $ — $ 27 $ — $ 27 ​ Interest rate-related derivatives ​ ​ — ​ ​ 3 ​ ​ — ​ ​ 3 ​ Total $ — $ 30 $ — $ 30 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts $ — $ 6 $ — $ 6 ​ Interest rate-related derivatives ​ ​ — ​ ​ 26 ​ ​ — ​ ​ 26 ​ Contingent consideration ​ ​ — ​ ​ — ​ ​ 36 ​ ​ 36 ​ Total ​ $ — ​ $ 32 ​ $ 36 ​ $ 68 ​
Schedule of estimated fair values of financial instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31 ​ June 30 ​ ​ 2019 ​ 2019 ​ ​ Carrying ​ Fair ​ Carrying ​ Fair (In millions) Amount Value Amount Value Nonderivatives ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents $ 3,596 ​ $ 3,596 $ 2,987 $ 2,987 Current and long-term debt ​ 5,184 ​ ​ 5,696 ​ 3,412 ​ ​ 3,706 Additional purchase price payable ​ ​ — ​ ​ — ​ ​ 3 ​ ​ 3 Contingent consideration ​ ​ 29 ​ ​ 29 ​ ​ 36 ​ ​ 36 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts – asset (liability), net ​ 16 ​ ​ 16 ​ 21 ​ ​ 21 Interest rate-related derivatives – asset (liability), net ​ ​ 2 ​ ​ 2 ​ ​ (23) ​ ​ (23)
Impairment charges measured at fair value on a nonrecurring basis, classified as Level 3	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date of Fair Value ​ ​ (In millions) Impairment charges Measurement Fair Value (1) Goodwill ​ $ 511 ​ December 31, 2019 ​ $ 264 Other intangible assets, net (trademark) ​ 266 ​ December 31, 2019 ​ 412 Total ​ $ 777 ​ ​ ​ $ 676 (1) See Note 3 – Goodwill and Other Intangible Assets for discussion of the valuation techniques used to measure fair value, the description of the inputs and information used to develop those inputs. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date of Fair Value ​ ​ (In millions) ​ Impairment charges ​ Measurement ​ Fair Value (1) Goodwill ​ $ 20 ​ December 31, 2018 ​ $ 120 Other intangible assets, net (trademark) ​ 18 ​ December 31, 2018 ​ 59 Total ​ $ 38 ​ ​ ​ $ 179 (1) See Note 3 – Goodwill and Other Intangible Assets for discussion of the valuation techniques used to measure fair value, the description of the inputs and information used to develop those inputs.
Changes in the fair value of the contingent consideration obligations	​ ​ ​ ​ ​ (In millions) Fair Value Contingent consideration at June 30, 2019 ​ $ 36 Changes in fair value ​ (7) Contingent consideration at December 31, 2019 ​ $ 29

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Dec. 31, 2019
REVENUE RECOGNITION
Schedule of significant changes in deferred revenue	​ ​ ​ ​ ​ (In millions) December 31, 2019 Balance at June 30, 2019 ​ $ 361 Revenue recognized that was included in the deferred revenue balance at the beginning of the period ​ (243) Revenue deferred during the period ​ 307 Balance at December 31, 2019 ​ $ 425

PENSION AND POST-RETIREMENT B_2

PENSION AND POST-RETIREMENT BENEFIT PLANS (Tables)	6 Months Ended
	Dec. 31, 2019
PENSION AND POST-RETIREMENT BENEFIT PLANS
Schedule of components of net periodic benefit cost for pension and other post-retirement benefit plans	​ The components of net periodic benefit cost for the three months ended December 31, 2019 and 2018 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other than ​ ​ Pension Plans ​ Pension Plans ​ ​ U.S. ​ International ​ Post-retirement (In millions) 2019 2018 2019 2018 2019 2018 Service cost $ 10 $ 9 $ 9 $ 7 $ 1 $ — Interest cost ​ 9 ​ 9 ​ 2 ​ 3 ​ 1 ​ 2 Expected return on plan assets ​ (13) ​ (13) ​ (4) ​ (4) ​ — ​ — Amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial loss ​ 3 ​ 2 ​ 2 ​ 2 ​ — ​ — Net periodic benefit cost $ 9 $ 7 $ 9 $ 8 $ 2 $ 2 ​ The components of net periodic benefit cost for the six months ended December 31, 2019 and 2018 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other than ​ Pension Plans Pension Plans ​ U.S. International Post-retirement (In millions) 2019 2018 2019 2018 2019 2018 Service cost ​ $ 20 ​ $ 18 ​ $ 18 ​ $ 15 ​ $ 2 ​ $ 1 Interest cost ​ 17 ​ 18 ​ 5 ​ 6 ​ 3 ​ 4 Expected return on plan assets ​ (26) ​ (26) ​ (7) ​ (7) ​ (1) ​ (1) Amortization of: ​ ​ ​ ​ ​ ​ Actuarial loss ​ 7 ​ 5 ​ 3 ​ 2 ​ — ​ — Net periodic benefit cost ​ $ 18 ​ $ 15 ​ $ 19 ​ $ 16 ​ $ 4 ​ $ 4 ​
Schedule of amounts recognized in the consolidated balance sheets related to the Company's pension and post-retirement benefit plans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31 ​ June 30 (In millions) 2019 2019 Other assets $ 123 $ 105 Other accrued liabilities ​ (27) ​ (27) Other noncurrent liabilities ​ (434) ​ (418) Funded status ​ (338) ​ (340) Accumulated other comprehensive loss ​ 325 ​ 334 Net amount recognized $ (13) $ (6)

STOCK PROGRAMS (Tables)

STOCK PROGRAMS (Tables)	6 Months Ended
	Dec. 31, 2019
STOCK PROGRAMS
Schedule of stock-based compensation expense and related income tax benefits	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ December 31 ​ December 31 (In millions) 2019 2018 2019 2018 Compensation expense $ 83 $ 73 $ 139 $ 131 Income tax benefit ​ $ 15 ​ $ 13 ​ $ 26 ​ $ 25 ​

NET EARNINGS ATTRIBUTABLE TO _2

NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE (Tables)	6 Months Ended
	Dec. 31, 2019
NET EARNINGS ATTRIBUTABLE TO THE ESTEE LAUDER COMPANIES INC. PER COMMON SHARE
Schedule of reconciliation between the numerator and denominator of the basic and diluted EPS computations	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ December 31 ​ December 31 (In millions, except per share data) 2019 2018 2019 2018 Numerator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings attributable to The Estée Lauder Companies Inc. $ 557 $ 573 $ 1,152 $ 1,073 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding – Basic ​ 360.2 ​ 363.3 ​ 360.8 ​ ​ 365.1 Effect of dilutive stock options ​ 4.7 ​ 4.6 ​ 4.8 ​ ​ 4.8 Effect of PSUs ​ ​ 0.3 ​ ​ 0.3 ​ ​ 0.2 ​ ​ 0.3 Effect of RSUs ​ 1.5 ​ 1.7 ​ 1.9 ​ ​ 1.9 Weighted-average common shares outstanding – Diluted ​ 366.7 ​ 369.9 ​ 367.7 ​ ​ 372.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings attributable to The Estée Lauder Companies Inc. per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic $ 1.55 $ 1.58 $ 3.19 $ 2.94 Diluted ​ $ 1.52 ​ $ 1.55 ​ $ 3.13 ​ $ 2.88 ​

EQUITY (Tables)

EQUITY (Tables)	6 Months Ended
	Dec. 31, 2019
EQUITY
Schedule of equity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Six Months Ended ​ ​ December 31 December 31 (In millions) 2019 2018 2019 2018 Common stock, beginning of the period ​ $ 6 ​ $ 6 ​ $ 6 ​ $ 6 Stock-based compensation ​ — ​ — ​ — ​ — Common stock, end of the period ​ 6 ​ 6 ​ 6 ​ 6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Paid-in capital, beginning of the period ​ 4,514 ​ 4,065 ​ 4,403 ​ 3,972 Common stock dividends ​ 1 ​ — ​ 2 ​ — Stock-based compensation ​ 100 ​ 97 ​ 210 ​ 190 Paid-in capital, end of the period ​ 4,615 ​ 4,162 ​ 4,615 ​ 4,162 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retained earnings, beginning of the period ​ 10,393 ​ 9,170 ​ 9,984 ​ 9,040 Common stock dividends ​ (175) ​ (157) ​ (332) ​ (298) Net earnings attributable to The Estée Lauder Companies Inc. ​ 557 ​ 573 ​ 1,152 ​ 1,073 Cumulative effect of adoption of new accounting standards ​ — ​ — ​ (29) ​ (229) Retained earnings, end of the period ​ 10,775 ​ 9,586 ​ 10,775 ​ 9,586 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated other comprehensive loss, beginning of the period ​ (627) ​ (409) ​ (563) ​ (434) Other comprehensive income (loss) ​ 58 ​ (21) ​ (6) ​ 4 Accumulated other comprehensive loss, end of the period ​ (569) ​ (430) ​ (569) ​ (430) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Treasury stock, beginning of the period ​ (9,756) ​ (8,426) ​ (9,444) ​ (7,896) Acquisition of treasury stock ​ (426) ​ (531) ​ (703) ​ (1,033) Stock-based compensation ​ (71) ​ (61) ​ (106) ​ (89) Treasury stock, end of the period ​ (10,253) ​ (9,018) ​ (10,253) ​ (9,018) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders’ equity – The Estée Lauder Companies Inc. ​ 4,574 ​ 4,306 ​ 4,574 ​ 4,306 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Noncontrolling interests, beginning of the period ​ 28 ​ 24 ​ 25 ​ 22 Net earnings attributable to noncontrolling interests ​ 4 ​ 4 ​ 7 ​ 6 Distribution to noncontrolling interest holders ​ (4) ​ — ​ (4) ​ — Other comprehensive income ​ (1) ​ (1) ​ (1) ​ (1) Noncontrolling interests, end of the period ​ 27 ​ 27 ​ 27 ​ 27 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ​ $ 4,601 ​ $ 4,333 ​ $ 4,601 ​ $ 4,333 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash dividends declared per common share ​ $ .48 ​ $ .43 ​ $ .91 ​ $ .81 ​
Summary of cash dividends declared per share on the Company's Class A and Class B Common Stock	The following is a summary of quarterly cash dividends declared per share on the Company’s Class A and Class B Common Stock during the six months ended December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date Declared Record Date Payable Date Amount per Share ​ August 16, 2019 August 30, 2019 September 16, 2019 $ .43 ​ October 30, 2019 ​ November 29, 2019 ​ December 16, 2019 ​ $ .48 ​ ​
Schedule of components of AOCI, net of tax	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Cash ​ Included in Net ​ ​ ​ ​ ​ ​ ​ ​ ​ Flow Hedge ​ Periodic Benefit ​ Translation ​ ​ ​ ​ (In millions) Gain (Loss) Cost Adjustments Total ​ Balance at June 30, 2019 $ 21 $ (253) ​ $ (331) $ (563) ​ OCI before reclassifications ​ (4) ​ (1) (1) 3 (2) (2) ​ Amounts reclassified to Net earnings ​ ​ (14) ​ ​ 8 ​ ​ 2 ​ ​ (4) ​ Net current-period OCI ​ (18) ​ 7 ​ 5 ​ (6) ​ Balance at December 31, 2019 $ 3 $ (246) ​ $ (326) $ (569) ​ (1) Consists of foreign currency translation losses. (2) See Note 7 - Derivative Financial Instruments for gains (losses) relating to net investment hedges. ​
Schedule of effects of reclassification adjustments from AOCI into net earnings	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount Reclassified from AOCI ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ Affected Line Item in ​ ​ December 31 ​ December 31 ​ Consolidated (In millions) 2019 2018 2019 2018 Statements of Earnings Gain (Loss) on Cash Flow Hedges ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency forward contracts $ 6 $ 4 ​ $ 19 $ 7 ​ Net sales Benefit (provision) for deferred taxes ​ (2) ​ (1) ​ (5) ​ (2) ​ Provision for income taxes ​ $ 4 $ 3 ​ $ 14 $ 5 ​ Net earnings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts Included in Net Periodic Benefit Cost ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization of actuarial loss ​ $ (5) ​ $ (4) ​ $ (10) ​ $ (7) ​ Earnings before income taxes (1) Benefit for deferred taxes ​ 1 ​ 1 ​ 2 ​ 2 ​ Provision for income taxes ​ $ (4) ​ $ (3) ​ $ (8) ​ $ (5) ​ Net earnings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative Translation Adjustments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain on previously held equity method investment ​ $ 4 ​ $ — ​ $ 4 ​ $ — ​ Other income Loss on liquidation of an investment in a foreign subsidiary ​ ​ — ​ ​ — ​ ​ (6) ​ ​ — ​ Restructuring and other charges ​ ​ $ 4 ​ $ — ​ $ (2) ​ $ — ​ Net earnings Total reclassification adjustments, net $ 4 $ — ​ $ 4 $ — ​ Net earnings (1) See Note 10 – Pension and Post-Retirement Benefit Plans for additional information.

STATEMENT OF CASH FLOWS (Tables

STATEMENT OF CASH FLOWS (Tables)	6 Months Ended
	Dec. 31, 2019
STATEMENT OF CASH FLOWS
Supplemental cash flow information	Supplemental cash flow information for the six months ended December 31, 2019 and 2018 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) 2019 2018 ​ Cash: ​ ​ ​ ​ ​ ​ ​ Cash paid during the period for interest $ 63 $ 66 ​ Cash paid during the period for income taxes $ 314 $ 217 ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-cash investing and financing activities: ​ ​ ​ ​ ​ ​ ​ Capital lease, capitalized interest and asset retirement obligations incurred $ — $ 8 ​ Property, plant and equipment accrued but unpaid $ 53 $ 35 ​

SEGMENT DATA AND RELATED INFO_2

SEGMENT DATA AND RELATED INFORMATION (Tables)	6 Months Ended
	Dec. 31, 2019
SEGMENT DATA AND RELATED INFORMATION
Schedule of segment data and related information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ December 31 ​ December 31 (In millions) 2019 2018 2019 2018 PRODUCT CATEGORY DATA ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Skin Care $ 2,205 $ 1,732 $ 4,047 $ 3,218 Makeup ​ 1,660 ​ 1,560 ​ 3,103 ​ 2,966 Fragrance ​ 581 ​ 537 ​ 1,043 ​ 1,009 Hair Care ​ 162 ​ 154 ​ 298 ​ 297 Other ​ ​ 16 ​ ​ 22 ​ ​ 28 ​ ​ 39 Net sales $ 4,624 $ 4,005 $ 8,519 $ 7,529 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) before charges associated with restructuring and other activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Skin Care $ 772 $ 565 $ 1,404 $ 1,031 Makeup ​ (611) ​ 138 ​ (507) ​ 299 Fragrance ​ 97 ​ 84 ​ 163 ​ 139 Hair Care ​ 12 ​ 15 ​ 12 ​ 29 Other ​ 4 ​ 4 ​ 6 ​ 7 ​ ​ 274 ​ 806 ​ 1,078 ​ 1,505 Reconciliation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Charges associated with restructuring and other activities ​ ​ (13) ​ ​ (35) ​ ​ (38) ​ ​ (82) Interest expense ​ (38) ​ (35) ​ (70) ​ (69) Interest income and investment income, net ​ ​ 13 ​ ​ 12 ​ ​ 27 ​ ​ 27 Other components of net periodic benefit cost ​ ​ (1) ​ ​ — ​ ​ (2) ​ ​ — Other income ​ ​ 576 ​ ​ — ​ ​ 576 ​ ​ — Earnings before income taxes $ 811 $ 748 $ 1,571 $ 1,381 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ GEOGRAPHIC DATA (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Americas $ 1,226 $ 1,218 $ 2,386 $ 2,454 Europe, the Middle East & Africa ​ 2,079 ​ 1,767 ​ 3,756 ​ 3,200 Asia/Pacific ​ ​ 1,319 ​ ​ 1,020 ​ ​ 2,377 ​ ​ 1,875 Net sales $ 4,624 $ 4,005 $ 8,519 $ 7,529 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Americas $ (529) $ 149 $ (354) $ 383 Europe, the Middle East & Africa ​ 505 ​ 418 ​ 882 ​ 675 Asia/Pacific ​ 298 ​ 239 ​ 550 ​ 447 ​ ​ ​ 274 ​ ​ 806 ​ ​ 1,078 ​ ​ 1,505 Charges associated with restructuring and other activities ​ ​ (13) ​ ​ (35) ​ ​ (38) ​ ​ (82) Operating income ​ $ 261 ​ $ 771 ​ $ 1,040 ​ $ 1,423 (1) The net sales and operating income from the Company’s travel retail business are included in the Europe, the Middle East & Africa region.

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Currency Translation and Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Currency Translation and Transactions
Unrealized translation gains (losses), net of tax	$ 75	$ (34)	$ 3	$ (13)
Net exchange gains (losses) on foreign currency transactions	$ 27	$ (7)	$ 24	$ (21)

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventory and Promotional Merchandise (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Raw materials	$ 519	$ 541
Work in process	237	268
Finished goods	1,101	981
Promotional merchandise	201	216
Inventory and promotional merchandise	$ 2,058	$ 2,006

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019
Property, Plant and Equipment
Property, plant and equipment, Gross	$ 5,042		$ 5,042		$ 4,831
Less accumulated depreciation and amortization	(2,956)		(2,956)		(2,763)
Property, plant and equipment, net	2,086		2,086		2,068
Cost of assets related to projects in progress	503		503		474
Depreciation and amortization of property, plant and equipment	127	$ 121	252	$ 237
Land
Property, Plant and Equipment
Property, plant and equipment, Gross	29		29		29
Buildings and improvements
Property, Plant and Equipment
Property, plant and equipment, Gross	367		$ 367		337
Buildings and improvements | Minimum
Property, Plant and Equipment
Property, plant and equipment, Useful life (in years)			10 years
Buildings and improvements | Maximum
Property, Plant and Equipment
Property, plant and equipment, Useful life (in years)			40 years
Machinery and equipment
Property, Plant and Equipment
Property, plant and equipment, Gross	836		$ 836		811
Machinery and equipment | Minimum
Property, Plant and Equipment
Property, plant and equipment, Useful life (in years)			3 years
Machinery and equipment | Maximum
Property, Plant and Equipment
Property, plant and equipment, Useful life (in years)			10 years
Computer hardware and software
Property, Plant and Equipment
Property, plant and equipment, Gross	1,308		$ 1,308		1,264
Computer hardware and software | Minimum
Property, Plant and Equipment
Property, plant and equipment, Useful life (in years)			4 years
Computer hardware and software | Maximum
Property, Plant and Equipment
Property, plant and equipment, Useful life (in years)			10 years
Furniture and fixtures
Property, Plant and Equipment
Property, plant and equipment, Gross	117		$ 117		116
Furniture and fixtures | Minimum
Property, Plant and Equipment
Property, plant and equipment, Useful life (in years)			5 years
Furniture and fixtures | Maximum
Property, Plant and Equipment
Property, plant and equipment, Useful life (in years)			10 years
Leasehold improvements
Property, Plant and Equipment
Property, plant and equipment, Gross	$ 2,385		$ 2,385		$ 2,274

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019
Income Taxes
Effective tax rate (as a percent)	30.80%	22.90%	26.20%	21.90%
Gross unrecognized tax benefits	$ 67		$ 67		$ 67
Total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate	50		50
Gross interest and penalty accrued	1		2
Total gross accrued interest and penalties related to unrecognized tax benefits	$ 12		$ 12		$ 12

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Accrued Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Advertising, merchandising and sampling	$ 416	$ 352
Employee compensation	437	574
Deferred revenue	378	314
Payroll and other taxes	325	221
Accrued general and administrative expenses	256	195
Other	1,113	943
Total Other Accrued Liabilities	$ 2,925	$ 2,599

ACQUISITION OF BUSINESS (Detail

ACQUISITION OF BUSINESS (Details) - USD ($) $ in Millions	Dec. 18, 2019	Dec. 31, 2019	Dec. 31, 2019	Jun. 30, 2019
Acquisition of Business
Gain on settlement of equity method investment, net			$ 553
Assets acquired and liabilities assumed at the acquisition date
Goodwill		$ 1,920	1,920	$ 1,868
Have & Be
Acquisition of Business
Interest acquired (as a percent)	66.66%
Cash consideration	$ 1,268
Carrying value	133
Fair value	682
Gain on remeasurement of equity method investment	549
Unrealized foreign currency gain	4
Assets acquired and liabilities assumed at the acquisition date
Cash	228
Accounts receivable	48
Inventory	83
Other current assets	5
Property, plant and equipment	3
Right-of-use assets	3
Intangible assets	1,427
Goodwill	556
Other long-term assets	3
Total assets acquired	2,356
Accounts payable	27
Other accrued liabilities	22
Deferred income taxes	352
Lease liability	1
Total liabilities assumed	402
Total consideration transferred	$ 1,954
Have & Be | Other income
Acquisition of Business
Gain on settlement of equity method investment, net		553	553
Foreign currency gain recognized on cash transferred to foreign subsidiary		23	23
Have & Be | Selling, general and administrative expenses
Assets acquired and liabilities assumed at the acquisition date
Acquisition-related costs		$ 6	$ 6

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 18, 2019	Jun. 30, 2019
Goodwill and Other Intangible Assets
Goodwill	$ 1,920		$ 1,868		$ 1,920		$ 1,868
Goodwill					2,590		2,028
Accumulated impairments					(670)		(160)
Changes in goodwill
Goodwill, Beginning Balance			1,868
Goodwill acquired during the period			563
Impairment charges	(511)	$ (20)	(511)	$ (20)
Translation adjustments, goodwill			(1)
Translation adjustments, accumulated impairments			1
Goodwill, period increase (decrease)			52
Goodwill, Ending Balance	1,920		1,920
Trademarks
Goodwill and Other Intangible Assets
Impairment Charge, Trademark	266		266
Skin Care
Goodwill and Other Intangible Assets
Goodwill	705		705		705		149
Goodwill					740		185
Accumulated impairments					(35)		(36)
Changes in goodwill
Goodwill, Beginning Balance			149
Goodwill acquired during the period			556
Translation adjustments, goodwill			(1)
Translation adjustments, accumulated impairments			1
Goodwill, period increase (decrease)			556
Goodwill, Ending Balance	705		705
Makeup
Goodwill and Other Intangible Assets
Goodwill	627		627		627		1,131
Goodwill					1,206		1,199
Accumulated impairments					(579)		(68)
Changes in goodwill
Goodwill, Beginning Balance			1,131
Goodwill acquired during the period			7
Impairment charges			(511)
Goodwill, period increase (decrease)			(504)
Goodwill, Ending Balance	627		627
Fragrance
Goodwill and Other Intangible Assets
Goodwill	232		232		232		232
Goodwill					254		254
Accumulated impairments					(22)		(22)
Changes in goodwill
Goodwill, Beginning Balance			232
Goodwill, Ending Balance	232		232
Hair Care
Goodwill and Other Intangible Assets
Goodwill	356		356		356		356
Goodwill					390		390
Accumulated impairments					(34)		$ (34)
Changes in goodwill
Goodwill, Beginning Balance			356
Goodwill, Ending Balance	$ 356		356
Smashbox
Changes in goodwill
Impairment charges		$ (20)		$ (20)
Bobbi Brown brand
Changes in goodwill
Goodwill, period increase (decrease)			7
Have & Be
Goodwill and Other Intangible Assets
Goodwill						$ 556
Changes in goodwill
Goodwill acquired during the period			$ 556
Have & Be | Trademarks
Goodwill and Other Intangible Assets
Non-amortizable intangible assets					585
Have & Be | Customer lists
Goodwill and Other Intangible Assets
Amortizable intangible assets					$ 842
Have & Be | Customer lists | Minimum
Goodwill and Other Intangible Assets
Amortization period			7 years 6 months
Have & Be | Customer lists | Maximum
Goodwill and Other Intangible Assets
Amortization period			17 years 6 months

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019
Amortizable intangible assets:
Gross Carrying Value	$ 1,567		$ 1,567		$ 727
Accumulated Amortization	432		432		412
Total Net Book Value	1,135		1,135		315
Non-amortizable intangible assets:
Total intangible assets	2,342		2,342		1,203
Aggregate amortization expense for amortizable intangible assets	11	$ 12	22	$ 25
Estimated aggregate amortization expense
Estimated aggregate amortization expense for remainder of fiscal year 2020	53		53
Estimated aggregate amortization expense for fiscal year 2021	104		104
Estimated aggregate amortization expense for fiscal year 2022	103		103
Estimated aggregate amortization expense for fiscal year 2023	103		103
Estimated aggregate amortization expense for fiscal year 2024	101		101
Trademark and goodwill carrying values
Impairment Charge, Goodwill	511	20	511	20
Carrying Value, Goodwill	264		264
Too Faced
Trademark and goodwill carrying values
Impairment Charge, Goodwill	430		430
Carrying Value, Goodwill	175		175
BECCA
Trademark and goodwill carrying values
Impairment Charge, Goodwill	35		35
Carrying Value, Goodwill	63		63
Smashbox
Trademark and goodwill carrying values
Impairment Charge, Goodwill	46		46
Carrying Value, Goodwill	26		26
Trademarks
Non-amortizable intangible assets:
Trademarks	1,207		1,207		888
Trademark and goodwill carrying values
Impairment Charge, Trademark	266		266
Carrying Value, Trademarks	412		412
Trademarks | Too Faced
Trademark and goodwill carrying values
Impairment Charge, Trademark	211		211
Carrying Value, Trademarks	314		314
Trademarks | BECCA
Trademark and goodwill carrying values
Impairment Charge, Trademark	33		33
Carrying Value, Trademarks	65		65
Trademarks | Smashbox
Trademark and goodwill carrying values
Impairment Charge, Trademark	22	$ 18	22	$ 18
Carrying Value, Trademarks	33		33
Customer lists and other
Amortizable intangible assets:
Gross Carrying Value	1,524		1,524		684
Accumulated Amortization	389		389		369
Total Net Book Value	1,135		1,135		315
License agreements
Amortizable intangible assets:
Gross Carrying Value	43		43		43
Accumulated Amortization	$ 43		$ 43		$ 43

LEASES - General (Details)

LEASES - General (Details) - USD ($) $ in Millions	Jul. 01, 2019	Dec. 31, 2019
LEASES
Lease, Practical Expedients, Package [true false]	true
Lessee, Operating Lease, Existence of Option to Extend [true false]		true
Lessee, Operating Lease, Existence of Option to Terminate [true false]		true
Lessee, Finance Lease, Existence of Option to Extend [true false]		true
Lessee, Finance Lease, Existence of Option to Terminate [true false]		true
Operating lease ROU assets		$ 2,517
Operating lease liabilities		$ 2,687
Extend term for operating lease (in years)		30 years
Terminate term for operating lease (in years)		34 years
Extend term for finance lease (in years)		30 years
Terminate term for finance lease (in years)		34 years
Minimum
LEASES
Remaining term for operating lease (in years)		1 year
Remaining term for finance lease (in years)		1 year
Maximum
LEASES
Remaining term for operating lease (in years)		51 years
Remaining term for finance lease (in years)		51 years
Accounting Standards Update 2016-02 | Restatement Adjustment
LEASES
Adjustment to retained earnings	$ 29
Operating lease ROU assets	2,598
Operating lease liabilities	$ 2,764

LEASES - Total Lease Costs and

LEASES - Total Lease Costs and Other Information (Details) $ in Millions	3 Months Ended	6 Months Ended
	Dec. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Total lease cost
Finance lease cost - amortization of right-of-use assets	$ 3	$ 6
Operating lease cost	115	233
Short-term lease cost	9	15
Variable lease cost	49	92
Total	$ 176	346
Other information
Operating cash flows from operating leases		242
Financing cash flows from finance leases		8
Right-of-use assets obtained in exchange for new operating lease liabilities		$ 110
Weighted-average remaining lease term - finance leases	2 years	2 years
Weighted-average remaining lease term - operating leases	11 years	11 years
Weighted-average discount rate - finance leases	2.70%	2.70%
Weighted-average discount rate - operating leases	2.50%	2.50%

LEASES - Future Minimum Lease P

LEASES - Future Minimum Lease Payments (Details) $ in Millions	Dec. 31, 2019USD ($)
Operating Leases
Remainder of fiscal 2020	$ 219
Fiscal 2021	393
Fiscal 2022	347
Fiscal 2023	310
Fiscal 2024	286
Thereafter	1,559
Total future minimum lease payments	3,114
Less imputed interest	(427)
Total	2,687
Finance Leases
Remainder of fiscal 2020	6
Fiscal 2021	7
Fiscal 2022	3
Fiscal 2023	1
Total future minimum lease payments	17
Total	$ 17

LEASES - Operating Lease and Fi

LEASES - Operating Lease and Finance Lease Liabilities included in the Consolidated Balance Sheet (Details) $ in Millions	Dec. 31, 2019USD ($)
Operating Leases
Total current liabilities	$ 369
Total noncurrent liabilities	2,318
Total	2,687
Finance Leases
Total current liabilities	10
Total noncurrent liabilities	7
Total	$ 17

LEASES - Maturities of Contract

LEASES - Maturities of Contractual Obligations (Details) $ in Millions	Jun. 30, 2019USD ($)
Operating Leases
Fiscal 2020	$ 421
Fiscal 2021	383
Fiscal 2022	348
Fiscal 2023	316
Fiscal 2024	289
Thereafter	1,625
Total contractual obligations	$ 3,382

LEASES - Not Yet Commenced (Det

LEASES - Not Yet Commenced (Details) $ in Millions	Dec. 31, 2019USD ($)
LEASES
Operating lease obligation not yet commenced	$ 108
Minimum
LEASES
Operating lease term not yet commenced	1 year
Maximum
LEASES
Operating lease term not yet commenced	59 years

CHARGES ASSOCIATED WITH RESTR_3

CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES - Approved Restructuring Activities by Major Cost Type (Details) - Leading Beauty Forward $ in Millions	Dec. 31, 2019USD ($)
Restructuring and related costs
Restructuring and related costs, expected costs	$ 967
Sales Returns (included in Net Sales)
Restructuring and related costs
Restructuring and related costs, expected costs	14
Cost of Sales
Restructuring and related costs
Restructuring and related costs, expected costs	88
Restructuring Charges
Restructuring and related costs
Restructuring and related costs, expected costs	507
Restructuring Charges | Employee-Related Costs
Restructuring and related costs
Restructuring and related costs, expected costs	461
Restructuring Charges | Asset-Related Costs
Restructuring and related costs
Restructuring and related costs, expected costs	7
Restructuring Charges | Contract Terminations
Restructuring and related costs
Restructuring and related costs, expected costs	25
Restructuring Charges | Other Exit Costs
Restructuring and related costs
Restructuring and related costs, expected costs	14
Other Charges
Restructuring and related costs
Restructuring and related costs, expected costs	$ 358

CHARGES ASSOCIATED WITH RESTR_4

CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES - Cumulative Restructuring Charges by Major Cost Type (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Restructuring and related costs
Six months ended December 31, 2019	$ 7	$ 29	$ 30	$ 70
Leading Beauty Forward
Restructuring and related costs
Cumulative through June 30, 2019			791
Six months ended December 31, 2019			38
Cumulative through December 31, 2019	829		829
Leading Beauty Forward | Sales Returns (included in Net Sales)
Restructuring and related costs
Cumulative through June 30, 2019			14
Cumulative through December 31, 2019	14		14
Leading Beauty Forward | Cost of Sales
Restructuring and related costs
Cumulative through June 30, 2019			55
Six months ended December 31, 2019			8
Cumulative through December 31, 2019	63		63
Leading Beauty Forward | Restructuring Charges
Restructuring and related costs
Cumulative through June 30, 2019			457
Six months ended December 31, 2019			1
Cumulative through December 31, 2019	458		458
Leading Beauty Forward | Restructuring Charges | Employee-Related Costs
Restructuring and related costs
Cumulative through June 30, 2019			445
Cumulative through December 31, 2019	445		445
Leading Beauty Forward | Restructuring Charges | Asset-Related Costs
Restructuring and related costs
Cumulative through June 30, 2019			4
Cumulative through December 31, 2019	4		4
Leading Beauty Forward | Restructuring Charges | Contract Terminations
Restructuring and related costs
Cumulative through June 30, 2019			3
Cumulative through December 31, 2019	3		3
Leading Beauty Forward | Restructuring Charges | Other Exit Costs
Restructuring and related costs
Cumulative through June 30, 2019			5
Six months ended December 31, 2019			1
Cumulative through December 31, 2019	6		6
Leading Beauty Forward | Other Charges
Restructuring and related costs
Cumulative through June 30, 2019			265
Six months ended December 31, 2019			29
Cumulative through December 31, 2019	$ 294		$ 294

CHARGES ASSOCIATED WITH RESTR_5

CHARGES ASSOCIATED WITH RESTRUCTURING AND OTHER ACTIVITIES - Accrued Restructuring Charges (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Restructuring and Other Costs
Charges	$ 13	$ 35	$ 38	$ 82
Leading Beauty Forward
Restructuring and Other Costs
Beginning balance			203					$ 203
Charges			1
Cash payments			(54)
Ending balance	150		150
Employee-Related Costs | Leading Beauty Forward
Restructuring and Other Costs
Beginning balance			202					202
Cash payments			(52)
Ending balance	$ 150		150
Other Exit Costs | Leading Beauty Forward
Restructuring and Other Costs
Beginning balance			1					1
Charges			1
Cash payments			$ (2)
Forecast | Leading Beauty Forward
Restructuring and Other Costs
Accrued restructuring charges expected to result in cash expenditures funded from cash provided by operations					$ 5	$ 20	$ 62	$ 63

DEBT (Details)

DEBT (Details) - USD ($) $ in Millions	2 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Nov. 30, 2019
Debt
Net cash flow hedge gain (loss)		$ (22)	$ 9	$ (24)	$ 9
2020 Senior Notes
Debt
Aggregate principal amount						$ 500
Interest rate, stated percentage						1.80%
2.000% Senior Notes due December 1, 2024 (the "2024 Senior Notes")
Debt
Aggregate principal amount						$ 500
Interest rate, stated percentage						2.00%
Price (as a percent)		99.421%		99.421%
Yield (as a percent)		2.122%		2.122%
Unamortized Debt Discount		$ 3		$ 3
Debt Issuance Costs		$ 3
2.375% Senior Notes due December 1, 2029 (the "2029 Senior Notes")
Debt
Aggregate principal amount						$ 650
Interest rate, stated percentage						2.375%
Price (as a percent)		99.046%		99.046%
Yield (as a percent)		2.483%		2.483%
Unamortized Debt Discount		$ 6		$ 6
Debt Issuance Costs		$ 4
2.375% Senior Notes due December 1, 2029 (the "2029 Senior Notes") | Treasury lock agreements
Debt
Yield (as a percent)	3.15%
Notional amount	$ 500
Weighted-average all-in rate	2.50%
Net cash flow hedge gain (loss)	$ (33)
3.125% Senior Notes due December 1, 2049 (the "2049 Senior Notes")
Debt
Aggregate principal amount						$ 650
Interest rate, stated percentage						3.125%
Price (as a percent)		98.769%		98.769%
Yield (as a percent)		3.189%		3.189%
Unamortized Debt Discount		$ 8		$ 8
Debt Issuance Costs		$ 7

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS - Derivative Instruments Included in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Derivatives, Fair Value
Derivative Asset, Total	$ 50	$ 30
Derivative Liability, Total	32	32
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value
Derivative Asset, Total	19	26
Derivative Liability, Total	29	30
Derivatives Designated as Hedging Instruments | Foreign currency cash flow hedges | Prepaid expenses and other current assets
Derivatives, Fair Value
Derivative asset, fair value	16	23
Derivatives Designated as Hedging Instruments | Foreign currency cash flow hedges | Other accrued liabilities
Derivatives, Fair Value
Derivative liability, fair value	9	4
Derivatives Designated as Hedging Instruments | Net investment hedges | Other accrued liabilities
Derivatives, Fair Value
Derivative liability, fair value	19
Derivatives Designated as Hedging Instruments | Interest rate-related derivatives | Prepaid expenses and other current assets
Derivatives, Fair Value
Derivative asset, fair value	3	3
Derivatives Designated as Hedging Instruments | Interest rate-related derivatives | Other accrued liabilities
Derivatives, Fair Value
Derivative liability, fair value	1	26
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Prepaid expenses and other current assets
Derivatives, Fair Value
Derivative asset, fair value	31	4
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Other accrued liabilities
Derivatives, Fair Value
Derivative liability, fair value	$ 3	$ 2

DERIVATIVE FINANCIAL INSTRUME_4

DERIVATIVE FINANCIAL INSTRUMENTS - Gain (Loss) on Derivative Financial Instruments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in OCI on Derivatives	$ (53)	$ 13	$ (39)	$ 16
Derivatives in Cash Flow Hedging Relationships
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in OCI on Derivatives	(16)	13	(5)	16
Amount of Gain or (Loss) Reclassified from AOCI into Earnings	6	4	19	7
Current debt | Derivatives in Fair Value Hedging Relationships
Gain (loss) on derivative financial instruments
Carrying Amount of the Hedged Liabilities	250		250
Long-term debt
Gain (loss) on derivative financial instruments
Cumulative Amount of Fair Value Hedging Gain/(Loss) Included in the Carrying Amount of the Hedged Liability			2
Long-term debt | Derivatives in Fair Value Hedging Relationships
Gain (loss) on derivative financial instruments
Carrying Amount of the Hedged Liabilities	701		701
Total debt
Gain (loss) on derivative financial instruments
Cumulative Amount of Fair Value Hedging Gain/(Loss) Included in the Carrying Amount of the Hedged Liability			2
Total debt | Derivatives in Fair Value Hedging Relationships
Gain (loss) on derivative financial instruments
Carrying Amount of the Hedged Liabilities	951		951
Net Sales
Gain (loss) on derivative financial instruments
Total amounts of income and expense line items presented in the consolidated statements of earnings in which the effects of fair value and cash flow hedges are recorded	4,624	4,005	8,519	7,529
Interest expense
Gain (loss) on derivative financial instruments
Total amounts of income and expense line items presented in the consolidated statements of earnings in which the effects of fair value and cash flow hedges are recorded	38	35	70	69
Foreign currency forward contracts | Derivatives in Cash Flow Hedging Relationships
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in OCI on Derivatives	(21)	13	4	16
Foreign currency forward contracts | Net investment hedges
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in OCI on Derivatives			(34)
Amount of Gain or (Loss) Recognized in OCI on Derivatives	(37)
Foreign currency forward contracts | Net Sales | Derivatives in Cash Flow Hedging Relationships
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Reclassified from AOCI into Earnings	6	4	19	7
Interest rate-related derivatives | Derivatives in Cash Flow Hedging Relationships
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in OCI on Derivatives	5		(9)
Interest rate-related derivatives | Interest expense | Derivatives in Fair Value Hedging Relationships
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in Earnings on Derivatives	(1)	11	1	9
Interest rate swap contracts | Interest expense | Derivatives in Fair Value Hedging Relationships
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in Earnings on Derivatives	(1)	11	1	9
Net investment hedges
Gain (loss) on derivative financial instruments
Gain recognized in earnings related to the amount excluded from effectiveness testing	13		25
Derivatives Designated as Hedging Instruments | Interest rate-related derivatives | Interest expense | Derivatives in Fair Value Hedging Relationships
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in Earnings on Derivatives	1	(11)	(1)	(9)
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Selling, general and administrative
Gain (loss) on derivative financial instruments
Amount of Gain or (Loss) Recognized in Earnings on Derivatives	$ 30	$ (12)	$ 3	$ 10

DERIVATIVE FINANCIAL INSTRUME_5

DERIVATIVE FINANCIAL INSTRUMENTS - Cash Flow Hedges, Fair Value Hedges, Credit Risk (Details) $ in Millions	6 Months Ended
	Dec. 31, 2019USD ($)item	Nov. 30, 2019	Jun. 30, 2019USD ($)
2020 Senior Notes
Fair Value Hedges
Debt Instrument, Interest Rate, Stated Percentage		1.80%
Derivative
Credit Risk
Minimum number of nationally recognized rating agencies | item	2
Maximum exposure to credit risk in the event of non performance by counterparties, gross fair value of contracts in asset positions	$ 50
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	6
Accumulated net gain on derivative instruments in AOCI, before tax	5		$ 29
Derivatives in Cash Flow Hedging Relationships | Foreign currency forward contracts
Foreign Currency Cash-Flow Hedges
Notional amount	$ 5,087
Derivatives in Fair Value Hedging Relationships | Interest rate swap contracts | LIBOR
Fair Value Hedges
Number of months for LIBOR calculation	3 months
Derivatives in Fair Value Hedging Relationships | Interest rate swap contracts | 2020 Senior Notes
Fair Value Hedges
Notional amount	$ 250
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
Net investment hedges | Foreign currency forward contracts
Fair Value Hedges
Notional amount	$ 1,738

FAIR VALUE MEASUREMENTS - Hiera

FAIR VALUE MEASUREMENTS - Hierarchy For Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring basis - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Assets:
Foreign currency forward contracts	$ 47	$ 27
Interest rate-related derivatives	3	3
Total	50	30
Liabilities:
Foreign currency forward contracts	31	6
Interest rate-related derivatives	1	26
Contingent consideration	29	36
Total	61	68
Level 2
Assets:
Foreign currency forward contracts	47	27
Interest rate-related derivatives	3	3
Total	50	30
Liabilities:
Foreign currency forward contracts	31	6
Interest rate-related derivatives	1	26
Total	32	32
Level 3
Liabilities:
Contingent consideration	29	36
Total	$ 29	$ 36

FAIR VALUE MEASUREMENTS - Estim

FAIR VALUE MEASUREMENTS - Estimated Fair Values of Financial Instruments (Details) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Jun. 30, 2019USD ($)
Derivatives
Derivative Asset	$ 50		$ 50		$ 30
Derivative liability	(32)		(32)		(32)
Impairment charges of certain non financial assets measured at fair value on a nonrecurring basis
Goodwill impairment	511	$ 20	511	$ 20
Goodwill	264		264
Fair value inputs
Changes in fair value of contingent consideration			(7)	$ (9)
Trademarks
Impairment charges of certain non financial assets measured at fair value on a nonrecurring basis
Other intangible assets, net	266		266
Other intangible assets, net	412		412
Level 2 | Additional Purchase Price Payable | Incremental borrowing rate
Fair value inputs
Additional purchase price payable measurement input		0.01		0.01
Level 3 | Non recurring basis
Impairment charges of certain non financial assets measured at fair value on a nonrecurring basis
Goodwill impairment			511	$ 20
Total			777	38
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			266	18
Carrying Amount
Non derivatives
Cash and cash equivalents	3,596		3,596		2,987
Current and long-term debt	5,184		5,184		3,412
Additional purchase price payable					3
Contingent consideration	29		29		36
Carrying Amount | Foreign currency forward contracts
Derivatives
Derivative Asset	16		16		21
Carrying Amount | Interest rate-related derivatives
Derivatives
Derivative Asset	2		2
Derivative liability					(23)
Fair Value
Non derivatives
Cash and cash equivalents	3,596		3,596		2,987
Current and long-term debt	5,696		5,696		3,706
Additional purchase price payable					3
Contingent consideration	29		29		36
Fair Value | Level 3 | Non recurring basis
Impairment charges of certain non financial assets measured at fair value on a nonrecurring basis
Goodwill	264	$ 120	264	120
Total	676	179	676	179
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	412	$ 59	412	$ 59
Fair Value | Foreign currency forward contracts
Derivatives
Derivative Asset	16		16		21
Fair Value | Interest rate-related derivatives
Derivatives
Derivative Asset	$ 2		$ 2
Derivative liability					$ (23)

FAIR VALUE MEASUREMENTS - Forei

FAIR VALUE MEASUREMENTS - Foreign Currency Forward Contracts Maturity (Details) - Foreign currency forward contracts	6 Months Ended
	Dec. 31, 2019
Maximum | LIBOR
Foreign currency forward contracts
Contract maturities	12 months
Minimum | Swap yield curve
Foreign currency forward contracts
Contract maturities	12 months

FAIR VALUE MEASUREMENTS - Chang

FAIR VALUE MEASUREMENTS - Changes in the Fair Value of the Contingent Consideration Obligations (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Changes in the fair value of the contingent consideration obligations
Changes in fair value	$ (7)	$ (9)
Selling, general and administrative expenses
Changes in the fair value of the contingent consideration obligations
Contingent consideration at the beginning of the period	36
Changes in fair value	(7)
Contingent consideration at the end of the period	$ 29

REVENUE RECOGNITION - Additiona

REVENUE RECOGNITION - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2019	Jun. 30, 2019
Significant changes in deferred revenue
Balance at the beginning of the period	$ 361
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(243)
Revenue deferred during the period	307
Balance at the end of the period	425
ASU 2014-09
REVENUE RECOGNITION
Allowance for doubtful accounts and customer deductions	$ 35	$ 32

REVENUE RECOGNITION - Transacti

REVENUE RECOGNITION - Transaction price allocated to the remaining performance obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-31 $ in Millions	Dec. 31, 2019USD ($)
REVENUE RECOGNITION
Expected timing of revenue recognition	12 months
Estimated recognition of deferred revenue	$ 378

PENSION AND POST-RETIREMENT B_3

PENSION AND POST-RETIREMENT BENEFIT PLANS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Pension Plans | U.S.
Components of net periodic benefit cost:
Service cost	$ 10	$ 9	$ 20	$ 18
Interest cost	9	9	17	18
Expected return on plan assets	(13)	(13)	(26)	(26)
Amortization of:
Actuarial loss	3	2	7	5
Net periodic benefit cost	9	7	18	15
Employer contributions			20
Pension Plans | International
Components of net periodic benefit cost:
Service cost	9	7	18	15
Interest cost	2	3	5	6
Expected return on plan assets	(4)	(4)	(7)	(7)
Amortization of:
Actuarial loss	2	2	3	2
Net periodic benefit cost	9	8	19	16
Employer contributions			6
Other than Pension Plans Post-retirement
Components of net periodic benefit cost:
Service cost	1		2	1
Interest cost	1	2	3	4
Expected return on plan assets			(1)	(1)
Amortization of:
Net periodic benefit cost	$ 2	$ 2	$ 4	$ 4

PENSION AND POST-RETIREMENT B_4

PENSION AND POST-RETIREMENT BENEFIT PLANS - Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Amounts recognized in the consolidated balance sheets consist of:
Other assets	$ 123	$ 105
Other accrued liabilities	(27)	(27)
Other noncurrent liabilities	(434)	(418)
Funded status	(338)	(340)
Accumulated other comprehensive loss	325	334
Net amount recognized	$ (13)	$ (6)

CONTINGENCIES (Details)

CONTINGENCIES (Details) $ in Millions	Dec. 31, 2019USD ($)
CONTINGENCIES
Loss contingency accrual related to product advertising claims	$ 0

STOCK PROGRAMS - Compensation E

STOCK PROGRAMS - Compensation Expense and Stock Options (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award
Compensation expense	$ 83	$ 73	$ 139	$ 131
Income tax benefit	$ 15	$ 13	$ 26	$ 25
Stock Options | Common Class A
Share-based Compensation Arrangement by Share-based Payment Award
Grant at fair value (in shares)			1.3
Exercise price (in dollars per share)			$ 199.24
Weighted-average grant date fair value (in dollars per share)			$ 51.44
Additional General Disclosures
Intrinsic value of stock options exercised (in dollars)			$ 144

STOCK PROGRAMS - Restricted Sto

STOCK PROGRAMS - Restricted Stock Units (Details) - Restricted Stock Units - Employee - Common Class A shares in Millions	6 Months Ended
	Dec. 31, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award
Granted (in shares)	0.8
Weighted-average grant date fair value (in dollars per share) | $ / shares	$ 199.26
RSU grants scheduled to vest in fiscal 2021
Share-based Compensation Arrangement by Share-based Payment Award
RSU grants scheduled to vest (in shares)	0.3
RSU grants scheduled to vest in fiscal 2022
Share-based Compensation Arrangement by Share-based Payment Award
RSU grants scheduled to vest (in shares)	0.3
RSU grants scheduled to vest in fiscal 2023
Share-based Compensation Arrangement by Share-based Payment Award
RSU grants scheduled to vest (in shares)	0.2

STOCK PROGRAMS - Performance Sh

STOCK PROGRAMS - Performance Share Units (Details) - Performance Share Units - Employee - $ / shares shares in Millions	1 Months Ended	6 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2019	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award
Vested (in shares)			0.3
Common Class A
Share-based Compensation Arrangement by Share-based Payment Award
Common Stock issued (in shares)	0.4
Granted (in shares)		0.1
Weighted-average grant date fair value (in dollars per share)		$ 199.18

NET EARNINGS ATTRIBUTABLE TO _3

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		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Numerator:
Net earnings attributable to The Estee Lauder Companies Inc.	$ 557	$ 573	$ 1,152	$ 1,073
Denominator:
Weighted-average common shares outstanding - Basic	360.2	363.3	360.8	365.1
Weighted-average common shares outstanding - Diluted	366.7	369.9	367.7	372.1
Net earnings attributable to The Estee Lauder Companies Inc. per common share:
Basic (in dollars per share)	$ 1.55	$ 1.58	$ 3.19	$ 2.94
Diluted (in dollars per share)	$ 1.52	$ 1.55	$ 3.13	$ 2.88
Stock Options
Denominator:
Incremental common shares attributable to share-based payment arrangements	4.7	4.6	4.8	4.8
Performance Share Units
Denominator:
Incremental common shares attributable to share-based payment arrangements	0.3	0.3	0.2	0.3
Restricted Stock Units
Denominator:
Incremental common shares attributable to share-based payment arrangements	1.5	1.7	1.9	1.9

NET EARNINGS ATTRIBUTABLE TO _4

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	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Stock Options
Antidilutive Securities Excluded from Computation of Earnings, Per Share
Antidilutive shares excluded from the calculation of diluted earnings per share	1.3	1.6
Contingently Issuable Shares
Antidilutive Securities Excluded from Computation of Earnings, Per Share
Antidilutive shares excluded from the calculation of diluted earnings per share	1.1	1.1

EQUITY - Equity Roll forward (D

EQUITY - Equity Roll forward (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Increase (Decrease) in Stockholders' Equity
Beginning of the period			$ 4,411
Net earnings attributable to The Estee Lauder Companies Inc.	$ 557	$ 573	1,152	$ 1,073
Net earnings attributable to noncontrolling interests	(4)	(4)	(7)	(6)
Other comprehensive income (loss)	57	(22)	(7)	3
End of the period	$ 4,601	$ 4,333	$ 4,601	$ 4,333
Cash dividends declared per common share	$ 0.48	$ 0.43	$ 0.91	$ 0.81
Total Stockholders' equity - The Estee Lauder Companies Inc.
Increase (Decrease) in Stockholders' Equity
End of the period	$ 4,574	$ 4,306	$ 4,574	$ 4,306
Common Stock
Increase (Decrease) in Stockholders' Equity
Beginning of the period	6	6	6	6
End of the period	6	6	6	6
Paid-in Capital
Increase (Decrease) in Stockholders' Equity
Beginning of the period	4,514	4,065	4,403	3,972
Common stock dividends	1		2
Stock-based compensation	100	97	210	190
End of the period	4,615	4,162	4,615	4,162
Retained Earnings
Increase (Decrease) in Stockholders' Equity
Beginning of the period	10,393	9,170	9,984	9,040
Common stock dividends	(175)	(157)	(332)	(298)
Net earnings attributable to The Estee Lauder Companies Inc.	557	573	1,152	1,073
Cumulative effect of adoption of new accounting standards			(29)	(229)
End of the period	10,775	9,586	10,775	9,586
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Beginning of the period	(627)	(409)	(563)	(434)
Other comprehensive income (loss)	58	(21)	(6)	4
End of the period	(569)	(430)	(569)	(430)
Treasury Stock
Increase (Decrease) in Stockholders' Equity
Beginning of the period	(9,756)	(8,426)	(9,444)	(7,896)
Acquisition of treasury stock	(426)	(531)	(703)	(1,033)
Stock-based compensation	(71)	(61)	(106)	(89)
End of the period	(10,253)	(9,018)	(10,253)	(9,018)
Non-controlling Interests
Increase (Decrease) in Stockholders' Equity
Beginning of the period	28	24	25	22
Net earnings attributable to noncontrolling interests	4	4	7	6
Distribution to noncontrolling interest holders	(4)		(4)
Other comprehensive income (loss)	(1)	(1)	(1)	(1)
End of the period	$ 27	$ 27	$ 27	$ 27

EQUITY - Class of Stock and Div

EQUITY - Class of Stock and Dividend Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Feb. 05, 2020	Oct. 30, 2019	Aug. 16, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Class of Stock
Cash dividends declared per common share (in dollars per share)				$ 0.48	$ 0.43	$ 0.91	$ 0.81
Conversion of Class B to Class A (in shares)						2.3
Common Class A and Common Class B
Class of Stock
Cash dividends declared per common share (in dollars per share)		$ 0.48	$ 0.43
Common Class A and Common Class B | Forecast
Class of Stock
Cash dividends declared per common share (in dollars per share)	$ 0.48
Common Class A
Class of Stock
Purchase of Class A Common Stock (in shares)						4.3
Purchase of Class A Common Stock (in dollars)						$ 813

EQUITY - Changes in Accumulated

EQUITY - Changes in Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions	6 Months Ended
	Dec. 31, 2019USD ($)
Changes in AOCI, net of tax, by component
Balance, beginning of the period	$ 4,386
Balance, end of the period	4,574
Accumulated Other Comprehensive Loss
Changes in AOCI, net of tax, by component
Balance, beginning of the period	(563)
OCI before reclassifications	(2)
Amounts reclassified to Net earnings	(4)
Net current-period OCI	(6)
Balance, end of the period	(569)
Gain (Loss) on Cash Flow Hedges
Changes in AOCI, net of tax, by component
Balance, beginning of the period	21
OCI before reclassifications	(4)
Amounts reclassified to Net earnings	(14)
Net current-period OCI	(18)
Balance, end of the period	3
Amounts Included in Net Periodic Benefit Cost
Changes in AOCI, net of tax, by component
Balance, beginning of the period	(253)
OCI before reclassifications	(1)
Amounts reclassified to Net earnings	8
Net current-period OCI	7
Balance, end of the period	(246)
Translation adjustments
Changes in AOCI, net of tax, by component
Balance, beginning of the period	(331)
OCI before reclassifications	3
Amounts reclassified to Net earnings	2
Net current-period OCI	5
Balance, end of the period	$ (326)

EQUITY - Reclassification Adjus

EQUITY - Reclassification Adjustments From Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Reclassification adjustments from accumulated other comprehensive income (loss)
Net sales	$ 4,624	$ 4,005	$ 8,519	$ 7,529
Benefit (provision) for deferred taxes	(250)	(171)	(412)	(302)
Earnings before income taxes	811	748	1,571	1,381
Net earnings	561	577	1,159	1,079
Amount Reclassified from AOCI
Reclassification adjustments from accumulated other comprehensive income (loss)
Net earnings	4		4
Gain (Loss) on Cash Flow Hedges | Amount Reclassified from AOCI
Reclassification adjustments from accumulated other comprehensive income (loss)
Benefit (provision) for deferred taxes	(2)	(1)	(5)	(2)
Net earnings	4	3	14	5
Gain (Loss) on Cash Flow Hedges | Foreign currency forward contracts | Amount Reclassified from AOCI
Reclassification adjustments from accumulated other comprehensive income (loss)
Net sales	6	4	19	7
Amounts Included in Net Periodic Benefit Cost | Amount Reclassified from AOCI
Reclassification adjustments from accumulated other comprehensive income (loss)
Amortization of actuarial loss	(5)	(4)	(10)	(7)
Benefit (provision) for deferred taxes	1	1	2	2
Net earnings	(4)	$ (3)	(8)	$ (5)
Cumulative Translation Adjustments | Amount Reclassified from AOCI
Reclassification adjustments from accumulated other comprehensive income (loss)
Gain on previously held equity method investment	4		4
Loss on liquidation of an investment in a foreign subsidiary			(6)
Net earnings	$ 4		$ (2)

STATEMENT OF CASH FLOWS (Detail

STATEMENT OF CASH FLOWS (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash:
Cash paid during the period for interest	$ 63	$ 66
Cash paid during the period for income taxes	314	217
Non-cash investing and financing activities:
Capital lease, capitalized interest and asset retirement obligations incurred		8
Property, plant and equipment accrued but unpaid	$ 53	$ 35

SEGMENT DATA AND RELATED INFO_3

SEGMENT DATA AND RELATED INFORMATION (Details) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2019USD ($)segment	Dec. 31, 2018USD ($)
SEGMENT DATA AND RELATED INFORMATION
Number of operating segments | segment			1
Net sales:
Net sales	$ 4,624	$ 4,005	$ 8,519	$ 7,529
Operating income (loss) before charges associated with restructuring and other activities:
Operating income (loss) before charges associated with restructuring activities	274	806	1,078	1,505
Operating income	261	771	1,040	1,423
Reconciliation:
Charges associated with restructuring and other activities	(13)	(35)	(38)	(82)
Interest expense	(38)	(35)	(70)	(69)
Interest income and investment income, net	13	12	27	27
Other components of net periodic benefit cost	(1)		(2)
Other income	576		576
Earnings before income taxes	811	748	1,571	1,381
The Americas
SEGMENT DATA AND RELATED INFORMATION
Increase (decrease) in operating income		210		411
Net sales:
Net sales	1,226	1,218	2,386	2,454
Operating income (loss) before charges associated with restructuring and other activities:
Operating income (loss) before charges associated with restructuring activities	(529)	149	(354)	383
Europe, the Middle East & Africa
SEGMENT DATA AND RELATED INFORMATION
Increase (decrease) in operating income		(210)		(411)
Net sales:
Net sales	2,079	1,767	3,756	3,200
Operating income (loss) before charges associated with restructuring and other activities:
Operating income (loss) before charges associated with restructuring activities	505	418	882	675
Asia/Pacific
Net sales:
Net sales	1,319	1,020	2,377	1,875
Operating income (loss) before charges associated with restructuring and other activities:
Operating income (loss) before charges associated with restructuring activities	298	239	550	447
Skin Care
Net sales:
Net sales	2,205	1,732	4,047	3,218
Operating income (loss) before charges associated with restructuring and other activities:
Operating income (loss) before charges associated with restructuring activities	772	565	1,404	1,031
Makeup
Net sales:
Net sales	1,660	1,560	3,103	2,966
Operating income (loss) before charges associated with restructuring and other activities:
Operating income (loss) before charges associated with restructuring activities	(611)	138	(507)	299
Fragrance
Net sales:
Net sales	581	537	1,043	1,009
Operating income (loss) before charges associated with restructuring and other activities:
Operating income (loss) before charges associated with restructuring activities	97	84	163	139
Hair Care
Net sales:
Net sales	162	154	298	297
Operating income (loss) before charges associated with restructuring and other activities:
Operating income (loss) before charges associated with restructuring activities	12	15	12	29
Other
Net sales:
Net sales	16	22	28	39
Operating income (loss) before charges associated with restructuring and other activities:
Operating income (loss) before charges associated with restructuring activities	$ 4	$ 4	$ 6	$ 7