SEGMENT DATA AND RELATED INFORMATION

12 Months Ended

Jun. 30, 2015

SEGMENT DATA AND RELATED INFORMATION

SEGMENT DATA AND RELATED INFORMATION

NOTE 20 — SEGMENT DATA AND RELATED INFORMATION

Reportable operating segments include components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the “Chief Executive”) in deciding how to allocate resources and in assessing performance.  As a result of the similarities in the manufacturing, marketing and distribution processes for all of the Company’s products, much of the information provided in the consolidated financial statements is similar to, or the same as, that reviewed on a regular basis by the Chief Executive.  Although the Company operates in one business segment, beauty products, management also evaluates performance on a product category basis.

While the Company’s results of operations are also reviewed on a consolidated basis, the Chief Executive reviews data segmented on a basis that facilitates comparison to industry statistics.  Accordingly, net sales, depreciation and amortization, and operating income are available with respect to the manufacture and distribution of skin care, makeup, fragrance, hair care and other products.  These product categories meet the definition of operating segments and, accordingly, additional financial data are provided below.  The “other” segment includes the sales and related results of ancillary products and services that do not fit the definition of skin care, makeup, fragrance and hair care.

Product category performance is measured based upon net sales before returns associated with restructuring activities, and earnings before income taxes, other income, interest expense, interest income and investment income, net, interest expense on debt extinguishment and total charges associated with restructuring activities.  Returns and charges associated with restructuring activities are not allocated to the product categories because they result from activities that are deemed a company-wide program to redesign the Company’s organizational structure.  The accounting policies for the Company’s reportable segments are the same as those described in the summary of significant accounting policies, except for depreciation and amortization charges, which are allocated, primarily, based upon net sales.  The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; thus, no additional information is produced for the Chief Executive or included herein.

	Year Ended June 30
(In millions)	2015			2014			2013
PRODUCT CATEGORY DATA
Net Sales:
Skin Care	$	4,478.7		$	4,769.8		$	4,465.3
Makeup	4,304.6			4,210.2			3,876.9
Fragrance	1,416.4			1,425.0			1,310.8
Hair Care	530.6			515.6			488.9
Other	50.1			48.1			41.3
	10,780.4			10,968.7			10,183.2
(Returns) adjustments associated with restructuring activities	—			0.1			(1.5		)
	$	10,780.4		$	10,968.8		$	10,181.7
Depreciation and Amortization:
Skin Care	$	158.1		$	157.1		$	139.6
Makeup	168.4			166.1			144.6
Fragrance	54.3			49.4			42.5
Hair Care	25.9			11.1			9.5
Other	2.6			0.9			0.7
	$	409.3		$	384.6		$	336.9
Goodwill and Other Intangible Asset Impairments:
Skin Care	$	—		$	—		$	17.7
Makeup	—			—			—
Fragrance	—			—			—
Hair Care	—			—			—
Other	—			—			—
	$	—		$	—		$	17.7
Operating Income (Loss) before total (charges) adjustments associated with restructuring activities:
Skin Care	$	832.2		$	975.8		$	830.1
Makeup	659.3			715.9			580.4
Fragrance	82.8			104.1			120.3
Hair Care	37.9			33.7			26.7
Other	(5.9		)	(4.8		)	(13.7		)
	1,606.3			1,824.7			1,543.8
Reconciliation:
Total (charges) adjustments associated with restructuring activities	—			2.9			(17.8		)
Interest expense	(60.0		)	(59.4		)	(63.1		)
Interest income and investment income, net	14.3			8.6			8.3
Other income	—			—			23.1
Interest expense on debt extinguishment	—			—			(19.1		)
Earnings before income taxes	$	1,560.6		$	1,776.8		$	1,475.2

	Year Ended or at June 30
(In millions)	2015		2014		2013
GEOGRAPHIC DATA
Net Sales:
The Americas	$	4,513.8	$	4,572.3	$	4,302.9
Europe, the Middle East & Africa	4,086.4		4,163.7		3,758.7
Asia/Pacific	2,180.2		2,232.7		2,121.6
	10,780.4		10,968.7		10,183.2
(Returns) adjustments associated with restructuring activities	—		0.1		(1.5		)
	$	10,780.4	$	10,968.8	$	10,181.7
Operating Income (Loss):
The Americas	$	302.3	$	537.3	$	423.2
Europe, the Middle East & Africa	943.3		938.3		813.4
Asia/Pacific	360.7		349.1		307.2
	1,606.3		1,824.7		1,543.8
Total (charges) adjustments associated with restructuring activities	—		2.9		(17.8		)
	$	1,606.3	$	1,827.6	$	1,526.0
Total Assets:
The Americas	$	4,909.9	$	4,346.2	$	3,838.0
Europe, the Middle East & Africa	2,614.2		2,657.0		2,610.8
Asia/Pacific	715.1		865.6		696.4
	$	8,239.2	$	7,868.8	$	7,145.2
Long-Lived Assets (property, plant and equipment, net):
The Americas	$	956.8	$	954.4	$	887.7
Europe, the Middle East & Africa	399.9		410.2		349.7
Asia/Pacific	133.5		138.0		113.3
	$	1,490.2	$	1,502.6	$	1,350.7

Net sales are predominantly attributed to a country within a geographic segment based on the location of the customer.  The net sales from the Company’s travel retail business are included in the Europe, the Middle East & Africa region.  The Company is domiciled in the United States.  Net sales in the United States in fiscal 2015, 2014 and 2013 were $3,972.1 million, $3,999.5 million and $3,756.1 million, respectively.  The Company’s long-lived assets in the United States at June 30, 2015, 2014 and 2013 were $855.9 million, $849.9 million and $805.6 million, respectively.