FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

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 March 31, 2024:

(In millions)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	1,855	$	—	$	—	$	1,855
Foreign currency forward contracts	—		50		—		50
Cross-currency swap contracts	—		52		—		52
Total	$	1,855	$	102	$	—	$	1,957
Liabilities:
Foreign currency forward contracts	$	—	$	15	$	—	$	15
Interest rate-related derivatives	—		148		—		148
DECIEM stock options	—		—		106		106
Total	$	—	$	163	$	106	$	269

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, 2023:

(In millions)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	3,241	$	—	$	—	$	3,241
Foreign currency forward contracts	—		76		—		76
Cross-currency swap contracts	—		22		—		22
Total	$	3,241	$	98	$	—	$	3,339
Liabilities:
Foreign currency forward contracts	$	—	$	49	$	—	$	49
Interest rate-related derivatives	—		150		—		150
DECIEM stock options	—		—		99		99
Total	$	—	$	199	$	99	$	298

Schedule of estimated fair values of financial instruments

The estimated fair values of the Company’s financial instruments are as follows:

	March 31, 2024				June 30, 2023
(In millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Nonderivatives
Cash and cash equivalents	$	3,701	$	3,701	$	4,029	$	4,029
Current and long-term debt	7,770		7,276		8,114		7,665
DECIEM stock options	106		106		99		99
Deferred consideration payable	341		340		341		338
Derivatives
Cross-currency swap contracts - asset, net	52		52		22		22
Foreign currency forward contracts – asset, net	35		35		27		27
Interest rate-related derivatives – liability, net	(148)		(148)		(150)		(150)

Impairment charges measured at fair value on a nonrecurring basis, classified as Level 3

The following table presents the Company’s impairment charges for the nine months ended March 31, 2023 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 during the three months ended December 31, 2022:

(In millions)	Impairment charges		Date of Fair Value Measurement	Fair Value(1)
Other intangible assets, net (trademarks)
Dr.Jart+	$	100	November 30, 2022	$	330
Too Faced	86		November 30, 2022	186
Smashbox	21		December 31, 2022	—
Total	$	207		$	516

(1)See Note 2 - 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 DECEIM stock option liability

Changes in the DECIEM stock option liability for the nine months ended March 31, 2024 are included in Selling, general and administrative expenses in the accompanying consolidated statements of earnings and were as follows:

(In millions)	Fair Value
DECIEM stock option liability as of June 30, 2023	$	99
Changes in fair value, net of foreign currency remeasurements	8
Translation adjustments and other, net	(1)
DECIEM stock option liability as of March 31, 2024	$	106