SEGMENT DATA AND RELATED INFORMATION

6 Months Ended

Dec. 31, 2016

SEGMENT DATA AND RELATED INFORMATION

SEGMENT DATA AND RELATED INFORMATION

NOTE 15 — 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.  Returns and charges associated with restructuring and other activities are not allocated to product categories or geographic regions because they result from activities that are deemed a company-wide initiative to redesign, resize and reorganize select corporate functions and go-to-market structures, and to transform and modernize the Company’s global technology infrastructure.

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, 2016.  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 increase in total assets as a result of the acquisitions discussed in Note 3 - Acquisition of Businesses, which primarily impacted the Americas region, there has been no significant variance in the total or long-lived asset values associated with the Company’s segment data since June 30, 2016.

	Three Months Ended December 31						Six Months Ended December 31
(In millions)	2016			2015			2016			2015
PRODUCT CATEGORY DATA
Net Sales:
Skin Care	$	1,248		$	1,232		$	2,350		$	2,341
Makeup	1,306			1,251			2,472			2,413
Fragrance	497			470			939			883
Hair Care	137			149			273			283
Other	20			22			41			39
	3,208			3,124			6,075			5,959
Returns associated with restructuring and other activities	—			—			(2		)	—
Net Sales	$	3,208		$	3,124		$	6,073		$	5,959
Operating Income (Loss) before charges associated with restructuring and other activities:
Skin Care	$	351		$	309		$	563		$	499
Makeup	221			261			370			450
Fragrance	69			54			141			120
Hair Care	13			20			26			26
Other	4			5			7			7
	658			649			1,107			1,102
Reconciliation:
Charges associated with restructuring and other activities	(41		)	(19		)	(72		)	(19		)
Interest expense	(22		)	(17		)	(43		)	(34		)
Interest income and investment income, net	5			3			11			6
Earnings before income taxes	$	600		$	616		$	1,003		$	1,055
GEOGRAPHIC DATA
Net Sales:
The Americas	$	1,242		$	1,227		$	2,475		$	2,495
Europe, the Middle East & Africa	1,307			1,268			2,351			2,285
Asia/Pacific	659			629			1,249			1,179
	3,208			3,124			6,075			5,959
Returns associated with restructuring and other activities	—			—			(2		)	—
Net Sales	$	3,208		$	3,124		$	6,073		$	5,959
Operating Income (Loss):
The Americas	$	86		$	108		$	149		$	198
Europe, the Middle East & Africa	412			387			668			631
Asia/Pacific	160			154			290			273
	658			649			1,107			1,102
Charges associated with restructuring and other activities	(41		)	(19		)	(72		)	(19		)
Operating Income	$	617		$	630		$	1,035		$	1,083