SEGMENT DATA AND RELATED INFORMATION

3 Months Ended

Dec. 31, 2015

SEGMENT DATA AND RELATED INFORMATION

SEGMENT DATA AND RELATED INFORMATION

NOTE 13 – 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 and earnings before income taxes, interest expense and interest income and investment income, net.  Charges associated with restructuring activities are not allocated to product categories because they resulted from activities that are part of a company-wide program to redesign the Company’s GTI.

The accounting policies for the Company’s reportable segments are substantially the same as those for the consolidated financial statements, as described in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015.  The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; thus, no additional information is produced for the Chief Executive or included herein.  There has been no significant variance in the total or long-lived asset values associated with the Company’s segment data since June 30, 2015.

		Three Months Ended December 31					Six Months Ended December 31
(In millions)		2015			2014		2015			2014
PRODUCT CATEGORY DATA
Net Sales:
Skin Care	$	1,232.2		$	1,274.4		$	2,341.0		$	2,365.8
Makeup	1,251.2			1,176.2			2,413.0			2,197.5
Fragrance	470.6			439.7			883.5			817.1
Hair Care	149.0			137.1			283.3			265.2
Other	21.8			17.1			38.7			29.9
Net Sales	$	3,124.8		$	3,044.5		$	5,959.5		$	5,675.5
Operating Income (Loss) before charges associated with restructuring activities:
Skin Care	$	309.2		$	317.1		$	498.9		$	493.5
Makeup	260.8			253.4			450.0			379.3
Fragrance	53.2			47.5			119.3			86.5
Hair Care	19.9			16.2			25.6			25.0
Other	4.8			(1.4		)	7.3			(3.5		)
	647.9			632.8			1,101.1			980.8
Reconciliation:
Charges associated with restructuring activities	(18.5		)	—			(18.5		)	—
Interest expense	(17.0		)	(15.0		)	(34.1		)	(29.8		)
Interest income and investment income, net	3.2			3.8			6.2			5.4
Earnings before income taxes	$	615.6		$	621.6		$	1,054.7		$	956.4
GEOGRAPHIC DATA
Net Sales:
The Americas	$	1,227.0		$	1,201.4		$	2,495.3		$	2,316.2
Europe, the Middle East & Africa	1,268.4			1,211.5			2,285.2			2,153.7
Asia/Pacific	629.4			631.6			1,179.0			1,205.6
Net Sales	$	3,124.8		$	3,044.5		$	5,959.5		$	5,675.5
Operating Income (Loss):
The Americas	$	107.8		$	120.8		$	198.4		$	178.2
Europe, the Middle East & Africa	386.5			355.2			630.2			525.1
Asia/Pacific	153.6			156.8			272.5			277.5
	647.9			632.8			1,101.1			980.8
Charges associated with restructuring activities	(18.5		)	—			(18.5		)	—
Operating Income	$	629.4		$	632.8		$	1,082.6		$	980.8