ESTEE LAUDER COMPANIES INC - Quarter Report: 2025 March (Form 10-Q)

) Equity

Common stock, $ par value; Class A shares authorized: at March 31, 2025 and June 30, 2024; shares issued: at March 31, 2025 and at June 30, 2024; Class B shares authorized: at March 31, 2025 and June 30, 2024; shares issued and outstanding: at March 31, 2025 and June 30, 2024

Paid-in capital Retained earnings Accumulated other comprehensive loss()()

Less: Treasury stock, at cost; Class A shares at March 31, 2025 and Class A shares at June 30, 2024

()()Total equity

Total liabilities and equity

$ $

See notes to consolidated financial statements.

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THE ESTÉE LAUDER COMPANIES INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Nine Months Ended March 31,
(In millions)	2025		2024

Cash flows from operating activities
Net earnings (loss)	$	()	$
Adjustments to reconcile net earnings (loss) to net cash flows from operating activities:
Depreciation and amortization
Deferred income taxes	()		()
Non-cash stock-based compensation
Net loss on disposal of property, plant and equipment
Non-cash restructuring and other charges
Pension and post-retirement benefit expense
Pension and post-retirement benefit contributions	()		()
Impairment of goodwill and other intangible assets
Other non-cash items
Changes in operating assets and liabilities:
Increase in accounts receivable, net	()		()
Decrease in inventory and promotional merchandise
Decrease (increase) in other assets, net	()
Decrease in accounts payable	()		()
Increase (decrease) in other accrued and noncurrent liabilities	()
Decrease in operating lease assets and liabilities, net	()		()
Net cash flows provided by operating activities

Cash flows from investing activities
Capital expenditures	()		()
Proceeds from sale of property, plant and equipment
Purchases of investments	()		()
Settlement of net investment hedges	()		()
Net cash flows used for investing activities	()		()

Cash flows from financing activities
Repayments of current debt, net			()
Proceeds from issuance of long-term debt, net
Debt issuance costs			()
Repayments of commercial paper (maturities after three months)			()
Repayments of long-term debt	()		()
Net proceeds from stock-based compensation transactions
Payments to acquire treasury stock	()		()
Settlement of cross-currency swaps
Dividends paid to stockholders	()		()
Payment for acquisition of noncontrolling interest	()
Net cash flows used for financing activities	()		()

Effect of exchange rate changes on Cash and cash equivalents	()		()
Net decrease in Cash and cash equivalents	()		()
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period	$		$

See notes to consolidated financial statements.

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 –

million and $() million, net of tax, during the three months ended March 31, 2025 and 2024, respectively, and $() million and $() million, net of tax, during the nine months ended March 31, 2025 and 2024, respectively. For the Company’s subsidiaries operating in highly inflationary economies, the U.S. dollar is the functional currency, and these subsidiaries are not material to the Company's consolidated financial statements or liquidity. Remeasurement adjustments in financial statements in a highly inflationary economy and other transactional gains and losses are reflected in earnings (loss).

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. The Company also uses cross-currency swap contracts to hedge the impact of foreign currency changes on certain intercompany foreign currency denominated debt. Additionally, the Company enters into foreign currency forward contracts and cross-currency swap contracts to hedge a portion of its net investment in certain foreign operations, which are designated as net investment hedges. See Note 4 – Derivative Financial Instruments for further discussion. The Company categorizes these instruments as entered into for purposes other than trading.

The accompanying consolidated statements of earnings (loss) include net exchange gains on foreign currency transactions of $ million and $ million during the three months ended March 31, 2025 and 2024, respectively, and $ million and $ million during the nine months ended March 31, 2025 and 2024, respectively.

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company’s largest customer for the three and nine months ended March 31, 2025 sells products primarily in China travel retail. This customer accounted for $ million, or %, and $ million, or %, of the Company's accounts receivable at March 31, 2025 and June 30, 2024, respectively.

Inventory and Promotional Merchandise

Work in process

Finished goods

Promotional merchandise

Total inventory and promotional merchandise

$ $

Buildings and improvements ( to years)

Machinery and equipment ( to years)

Computer hardware and software ( to years)

Furniture and fixtures ( to years)

Leasehold improvements

Construction in progress

Total property, plant and equipment, gross

Less accumulated depreciation and amortization

()()

Total property, plant and equipment, net

$ $

(1)Land improvements are depreciated over a year useful life.

Depreciation and amortization of property, plant and equipment was $ million and $ million during the three months ended March 31, 2025 and 2024, respectively, and $ million and $ million during the nine months ended March 31, 2025 and 2024, 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 (loss).

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

% % % %Basis-point change from the prior-year period ()

For the three months ended March 31, 2025, the increase in the effective tax rate was primarily attributable to a higher effective tax rate on the Company's foreign operations due to the Company's full year geographical mix of earnings in the current and prior-year periods, as well as an unfavorable impact associated with previously issued stock-based compensation.

For the nine months ended March 31, 2025, the decrease in the effective tax rate was primarily attributable to the impact of the discrete treatment of charges associated with restructuring and other activities, the impairment of goodwill and other intangible assets, the charge associated with the talcum litigation settlement agreements (See Note 8 - Commitments and Contingencies for further discussion) and an unfavorable impact associated with previously issued stock-based compensation.

On August 16, 2022, the U.S. federal government enacted the Inflation Reduction Act, including a tax provision implementing a 15% corporate alternative minimum tax based on global adjusted financial statement income. The corporate alternative minimum tax did not have an impact on the Company's consolidated financial statements for the three and nine months ended March 31, 2025 and 2024.

On August 26, 2024, the U.S. Tax Court issued a decision in Varian Medical Systems, Inc. v. Commissioner. The decision related to the Tax Cuts and Jobs Act deduction for certain deemed foreign dividends otherwise subject to the Transition Tax on unrepatriated earnings of applicable foreign subsidiaries. Based on the Company's evaluation of the technical merits of this decision, the Company intends to timely file a protective refund claim with the U.S. Internal Revenue Service in fiscal 2025 claiming a Transition Tax payable reduction of approximately $ million. Although the Company has accrued the $ million estimated tax benefit in the provision for income taxes and reduced the Transition Tax payable in the fiscal 2025 first quarter by $ million, at this time the Company believes it is more-likely-than-not that the intended Transition Tax payable reduction claim will not be sustained. As such, in the fiscal 2025 first quarter the Company correspondingly increased the provision for income taxes for the estimated $ million tax benefit to establish an uncertain tax position reserve accrual for the estimated $ million Transition Tax at issue. As a result, there was no net impact from this development in the provision for income taxes and accompanying consolidated statement of earnings (loss) for the three and nine months ended March 31, 2025. In the accompanying consolidated balance sheet as of March 31, 2025, the $ million Transition Tax payable reduction and offsetting $ million uncertain tax position reserve accrual are included in Other noncurrent liabilities.

In December 2021, the Organization for Economic Cooperation and Development issued "Pillar Two" Global Anti-Base Erosion model rules for countries to enact into domestic law that would establish a 15% global minimum tax applied on a country-by-country basis for multinational companies. In certain countries that have enacted legislation incorporating the global minimum tax, it became effective for the Company at the beginning of fiscal 2025. The estimated tax impact of such legislation has been included in the provision for income taxes for the three and nine months ended March 31, 2025 and was not material. We are continuing to monitor and evaluate the potential impact of newly enacted legislation incorporating the global minimum tax in additional countries.

As of March 31, 2025 and June 30, 2024, the gross amount of unrecognized tax benefits, exclusive of interest and penalties, totaled $ million and $ million, respectively. The total amount of unrecognized tax benefits at March 31, 2025 that, if recognized, would affect the effective tax rate was $ million. The significant increase in the gross amount of unrecognized tax benefits as of March 31, 2025 as compared to June 30, 2024 was attributable to having established an uncertain tax position reserve accrual for the Transition Tax payable reduction position determined in the fiscal 2025 first quarter based on the August 26, 2024 U.S. Tax Court decision in Varian Medical Systems v. Commissioner, as discussed above. The total gross interest and penalties accrued related to unrecognized tax benefits during the three and nine months ended March 31, 2025 in the accompanying consolidated statements of earnings (loss) was $ million and $ million, respectively. The total gross accrued interest and penalties in the accompanying consolidated balance sheets at March 31, 2025 and June 30, 2024, was $ million and $ million, respectively. On the basis of the information available as of March 31, 2025, the Company does not expect significant changes to the total amount of unrecognized tax benefits within the next twelve months.

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At March 31, 2025 and June 30, 2024, total Other assets of $ million and $ million included $ million and $ million of deferred tax assets, respectively.

to days) or immediately upon a breach. The supplier invoices that have been confirmed as valid under the programs require payment in full within days of the invoice date.

Outstanding obligations confirmed as valid totaling $ million and $ million as of March 31, 2025 and June 30, 2024, respectively, are included in Accounts payable in the accompanying consolidated balance sheets.

Other Accrued Liabilities

$ Employee compensation Accrued sales incentives

Accrued restructuring

Deferred revenue Payroll and other non-income taxes Accrued income taxes Sales return accrual Other

Total other accrued liabilities

$ $

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 –

$ $ $ $

Accumulated impairments

()()() ()

Total goodwill

Impairment charges

() ()

Translation adjustments, goodwill

() ()

Translation adjustments, accumulated impairments

()() ()Balance as of March 31, 2025

Goodwill, gross carrying amount

Accumulated impairments

()()() ()

Total goodwill

$ $ $ $ $

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

$ $ $ $ $ $ $ $

(1)The date of the fair value measurement for the TOM FORD and Too Faced trademark intangible assets and Too Faced reporting unit was December 31, 2024.

(2)The carrying values of the trademark intangible assets, immediately subsequent to the impairment charges, are equal to their fair values.

The impairment charge related to the TOM FORD trademark intangible asset for the nine months ended March 31, 2025 of $ million was reflected in the fragrance, makeup and other product categories of $ million, $ million and $ million, respectively. The trademark and goodwill impairment charges related to Too Faced were reflected in the makeup product category.

NOTE 3 –

restructuring program. The restructuring program’s main focus included the reorganization and rightsizing of certain areas of the Company as well as simplification and acceleration of processes. The Company committed to this course of action on February 1, 2024.

In connection with the restructuring program, the Company estimated a net reduction in the range of approximately to positions globally, which was about -% of its positions including temporary and part-time employees as of June 30, 2023. This reduction took into account the elimination of some positions as well as retraining and redeployment of certain employees in select areas.

The Company planned to substantially complete specific initiatives under the restructuring program through fiscal 2026. The Company expected that the restructuring program would result in restructuring and other charges totaling between $ million and $ million, before taxes, consisting of employee-related costs, contract terminations, asset write-offs and other costs associated with implementing these initiatives.

After reviewing additional potential initiatives and the progress of previously approved initiatives, on February 3, 2025, the Company committed to the expansion of the PRGP, including an expansion of the restructuring program.

The expansion of the overall PRGP is focused on three key areas. First, the Company plans to adopt a more competitive approach to procurement, a key pillar of savings, by further consolidating spending and strategically re-evaluating key supplier relationships. Second, the Company plans to further improve efficiencies within its supply chain network through a zero-waste approach, aiming to improve demand forecasting and innovation planning to minimize excess inventory and product destruction. Third, the Company is outsourcing select services to proven global partners.

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

to positions globally, which is about -% of its positions including temporary and part-time employees as of June 30, 2023. This net reduction takes into account the elimination of positions after retraining and redeployment of certain employees in select areas.

The Company now expects that the Restructuring Program will result in restructuring and other charges totaling between $ million and $ million, before taxes, consisting of employee-related costs, contract terminations, asset write-offs and other costs associated with implementing these initiatives, which other than the non-cash charges, are expected to result in future cash expenditures funded from cash provided by operations.

Restructuring Program Component of the Profit Recovery and Growth Plan Approvals

$ $ $ $ Nine months ended March 31, 2025

Cumulative charges approved through March 31, 2025

April 1, 2025 - April 24, 2025

Cumulative charges approved through April 24, 2025

$ $ $ $ $

Included in the above table, cumulative restructuring charges for initiatives approved by the Company in connection with the Restructuring Program as of March 31, 2025 and through April 24, 2025 were:

(In millions)

Employee-
Related
Costs

Asset-
Related
Costs

Contract
Terminations

Other Exit
Costs

Total

Restructuring Charges Approved

Cumulative charges approved through June 30, 2024

Nine months ended March 31, 2025

Cumulative charges approved through March 31, 2025

April 1, 2025 - April 24, 2025

Cumulative charges approved through April 24, 2025

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

million (before tax) in connection with these initiatives, which other than the non-cash charges, are expected to result in future cash expenditures funded from cash provided by operations.

Restructuring Program Restructuring and Other Charges

The Company classifies restructuring charges as follows:

Employee-Related Costs – Employee-related costs are primarily comprised of severance and other post-employment benefit costs, calculated based on salary levels, prior service and other statutory minimum benefits, if applicable.

Asset-Related Costs – Asset-related costs primarily consist of asset write-offs or accelerated depreciation related to long-lived assets (including rights associated with commercial operating leases and operating lease right-of-use assets) that will be taken out of service prior to their existing useful life as a direct result of a restructuring initiative.

Contract Terminations – Costs related to contract terminations include continuing payments to a third party after the Company has ceased benefiting from the rights conveyed in the contract, or a payment made to terminate a contract prior to its expiration.

Other Exit Costs – Other exit costs related to restructuring activities generally include costs to relocate facilities or employees, recruiting to fill positions as a result of relocation of operations, and outplacement for separated employees.

The Company classifies other charges associated with restructuring activities as follows:

Sales Returns and Cost of Sales – Product returns (offset by the related cost of sales) and inventory write-offs or write-downs as a direct result of an approved restructuring initiative to exit certain businesses or locations will be recorded as a component of Net sales and/or Cost of sales when estimable and reasonably assured.

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

$ $ $ $ Six months ended December 31, 2024 Three months ended March 31, 2025 Cumulative charges through March 31, 2025$ $ $ $ $

(In millions)

Employee-
Related
Costs

Asset-
Related
Costs

Contract
Terminations

Other Exit
Costs

Total

Restructuring Charges

Cumulative charges through June 30, 2024

Six months ended December 31, 2024

Three months ended March 31, 2025

Cumulative charges through March 31, 2025

For the three and nine months ended March 31, 2024, charges recorded associated with restructuring and other activities for the Restructuring Program were $ million.

$ $ $ $ Charges Cash payments() ()()

Non-cash asset write-offs

() ()

Translation and other adjustments

() ()Balance at March 31, 2025$ $ $ $ $

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

million, $ million, $ million and $ million for the remainder of fiscal 2025 and for fiscal 2026, 2027 and 2028, respectively.

Charges associated with restructuring and other activities are not allocated to the Company's product categories or geographic regions because they are centrally directed and controlled, are not included in internal measures of product category or geographic region performance and result from activities that are deemed Company-wide initiatives to redesign, resize and reorganize select areas of the business.

Post-COVID Business Acceleration Program

The Company approved specific initiatives under the Post-COVID Business Acceleration Program (the “PCBA Program”) through fiscal 2022 and has substantially completed those initiatives. Additional information about the PCBA Program 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, 2024.

NOTE 4 –

million.

Fair Value Hedges

The Company enters into interest rate derivative contracts to manage the exposure to interest rate fluctuations on its funded indebtedness. At March 31, 2025, the Company has interest rate swap agreements, with notional amounts totaling $ million and $ million to effectively convert the fixed rate interest on its 2030 Senior Notes and 2031 Senior Notes, respectively, to variable interest rates based on the fallback Secured Overnight Financing Rate ("SOFR") 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.

The Company enters into cross-currency swap contracts to manage the exposure of foreign exchange rate fluctuations on its intercompany foreign currency denominated debt. At March 31, 2025, the Company has cross-currency swap contracts with notional amounts totaling $ million, to hedge the impact of foreign currency changes on certain intercompany foreign currency denominated debt. The cross-currency swap contracts are designated as fair value hedges of the related intercompany debt, and the gains and losses representing hedge components included in the assessment of effectiveness are presented in the same line item as the earnings effect of the hedged transaction in the consolidated statements of earnings (loss). Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis. The earnings recognition of excluded components is presented in the same line item as the earnings effect of the hedged transaction in the consolidated statements of earnings (loss). Any difference between the changes in the fair value of the excluded components and amounts recognized in earnings (loss) will be recognized in Accumulated Other Comprehensive Loss ("AOCI").

The estimated net gain on the Company’s derivative instruments designated as fair value hedges as of March 31, 2025 that is expected to be reclassified from AOCI into earnings (loss), net of tax, within the next twelve months is $ million. The accumulated net gain (loss) on derivative instruments designated as fair value hedges in AOCI was $ million and $() million as of March 31, 2025 and June 30, 2024, respectively.

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

million.

For foreign currency hedge contracts that are no longer deemed highly effective, hedge accounting is discontinued and gains and losses in AOCI are reclassified to Net 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 Net sales. As of March 31, 2025, the Company’s foreign currency cash flow hedges were highly effective.

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.

The estimated net gain on the Company’s derivative instruments designated as cash flow hedges as of March 31, 2025 that is expected to be reclassified from AOCI into earnings (loss), net of tax, within the next twelve months is $ million. The accumulated net gain on derivative instruments designated as cash flow hedges in AOCI was $ million and $ million as of March 31, 2025 and June 30, 2024, respectively.

Net Investment Hedges

The Company enters into foreign currency forward contracts and cross-currency swap contracts, designated as net investment hedges, to hedge a portion of its net investment in certain foreign operations. Forward points and cross-currency basis spreads, respectively, are excluded from the effectiveness assessment and are recognized under a systematic and rational method over the life of the hedging instrument in Selling, general and administrative expenses. 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 September 2025. Hedge effectiveness of the net investment hedge contracts is based on the spot method. At March 31, 2025, the Company had net investment hedges outstanding with a notional amount totaling $ 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 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 $ million at March 31, 2025. 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.

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

$ Other accrued liabilities$ $

Cross-currency swap contracts(3)

Prepaid expenses and other current assets; Other assets Other accrued liabilities

Interest rate contracts

Prepaid expenses and other current assets Other accrued liabilities (In millions)2025

(1)Changes in the fair value representing hedge components included in the assessment of effectiveness of the cross-currency swap contracts are exactly offset by the change in the fair value of the underlying intercompany foreign currency denominated debt. The gain recognized in earnings (loss) from cross-currency swap contracts related to the amount excluded from effectiveness testing during each of the three months ended March 31, 2025 and 2024 was $ million, and during each of the nine months ended March 31, 2025 and 2024 was $ million.

(2)Changes in the fair value of the interest rate contracts are exactly offset by the change in the fair value of the underlying long-term debt.

$()Intercompany debt$ $

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

$ $ $ $ $ The effects of fair value and cash flow hedging relationships:Gain (loss) on fair value hedge relationships – interest rate contracts:Hedged itemN/AN/A()N/AN/A Derivatives designated as hedging instrumentsN/AN/A N/AN/A()Gain (loss) on fair value hedge relationships – cross-currency swap contracts:Hedged itemN/A N/AN/A()N/ADerivatives designated as hedging instrumentsN/A()N/AN/A N/AGain (loss) on cash flow hedge relationships – interest rate contracts:

Amount of gain (loss) reclassified from AOCI into earnings (loss)

N/AN/A N/AN/A Gain on cash flow hedge relationships – foreign currency forward contracts:

Amount of gain reclassified from AOCI into earnings (loss)

N/AN/A N/AN/AN/A (Not applicable)

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

$ $ $ $ $ The effects of fair value and cash flow hedging relationships:Gain (loss) on fair value hedge relationships – interest rate contracts:Hedged itemN/AN/A()N/AN/A()Derivatives designated as hedging instrumentsN/AN/A N/AN/A Gain (loss) on fair value hedge relationships – cross-currency swap contracts:Hedged itemN/A N/AN/A()N/ADerivatives designated as hedging instrumentsN/A()N/AN/A N/AGain (loss) on cash flow hedge relationships – interest rate contracts:

Amount of gain (loss) reclassified from AOCI into earnings (loss)

N/AN/A N/AN/A()Gain on cash flow hedge relationships – foreign currency forward contracts:

Amount of gain reclassified from AOCI into earnings (loss)

N/AN/A N/AN/A

(In millions)2025

NOTE 5 –

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

$ $ $

Foreign currency forward contracts

Cross-currency swap contracts

Total

$ $ $ $

Liabilities:

Foreign currency forward contracts

$ $ $ $

Interest rate contracts

Cross-currency swap contracts

Total

$ $ $ $

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, 2024:

(In millions)

Level 1

Level 2

Level 3

Total

Assets:

Money market funds

Foreign currency forward contracts

Cross-currency swap contracts

Total

Liabilities:

Foreign currency forward contracts

Interest rate contracts

Total

$ $ $

Current and long-term debt

Provision for expected credit losses Write-offs, net & other()Balance at March 31, 2025$

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

million as of March 31, 2025 and June 30, 2024 relates to non-credit losses, which are primarily due to customer deductions.

Deferred Revenue

$ $ $ Revenue recognized that was included in the deferred revenue balance at the beginning of the period()()()()Revenue deferred (released) during the period()() Other () ()Deferred revenue, end of period$ $ $ $

Transaction Price Allocated to the Remaining Performance Obligations

At March 31, 2025, the combined estimated revenue expected to be recognized in the next related to performance obligations for customer loyalty programs, gift with purchase promotions, purchase with purchase promotions, gift card liabilities and the Marcolin license arrangement related to TOM FORD that are unsatisfied (or partially unsatisfied) is $ million. The remaining balance of deferred revenue at March 31, 2025 will be recognized beyond the next twelve months, of which $ million relates to the non-refundable upfront payment received as part of the Marcolin licensing arrangement that is being recognized on a straight-line basis over the estimated economic life of the license, which is years.

Royalty Revenue – License Arrangements

The Company’s contractually guaranteed minimum royalty amounts due during future periods under its existing license arrangements is disclosed in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

NOTE 7 –

$ $ $ $ $ Interest cost Expected return on plan assets()()()() Amortization of:

Actuarial loss (gain)

()() Prior service cost ()()()Special termination benefits Net periodic benefit cost$ $ $ $ $ $

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

$ $ $ $ $ Interest cost Expected return on plan assets()()()() Amortization of:

Actuarial loss (gain)

()() Prior service cost ()()() $ $()$

RSUs and PSUs

)) ))))())) $ ()

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THE ESTÉE LAUDER COMPANIES INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12 –

$ Cash paid during the period for income taxes$ $ Non-cash investing and financing activities:Property, plant and equipment accrued but unpaid$ $ ))))))) ) ))Three Months Ended
March 31,

The unfavorable change in operating expense margin for the three and nine months ended March 31, 2025 reflects the impact of the decrease in net sales. Also contributing to the unfavorable change in operating expense margin for the three months ended March 31, 2025 was higher advertising, merchandising, sampling and product development expenses, reflecting investments to support sales, including through key shopping moments, campaigns and launches, and higher store operating costs, to support targeted expanded consumer reach. General and administrative expenses increased for the three and nine months ended March 31, 2025, reflecting the year-over-year unfavorable impact of a change in policy related to local government subsidies in China. Also contributing to the unfavorable change in operating expense margin for the nine-month period was higher selling expenses, reflecting higher staffing costs to support sales, targeted expanded consumer reach and key campaigns. As a result of our net sales performance, we were disciplined in our overall expense strategy across the business to manage profitability, which partially offset the unfavorable change in operating expense margin for the three and nine months ended March 31, 2025.

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THE ESTÉE LAUDER COMPANIES INC.

OPERATING RESULTS


	Three Months Ended March 31,						Nine Months Ended March 31,
($ in millions)	2025			2024			2025			2024
As Reported:
Operating income (loss)	$	306		$	531		$	(395)		$	1,203
$ Change from prior-year period	(225)						(1,598)
% Change from prior-year period	(42)		%				(100+)%

Operating margin	8.6		%	13.5		%	(3.6)		%	10.2		%

Non-GAAP Financial Measure(1):
% Change in operating income (loss) from the prior-year period adjusting for the impact of charges associated with restructuring and other activities, the impact of goodwill and other intangible asset impairments, talcum litigation settlement agreements and the change in fair value of DECIEM acquisition-related stock options	(27)		%				(19)		%

(1)See “Reconciliations of Non-GAAP Financial Measures” beginning on page 59 for reconciliations between non-GAAP financial measures and the most directly comparable U.S. GAAP measures.

The decrease in reported operating margin for the three and nine months ended March 31, 2025 primarily reflects a decrease in net sales and an increase in operating expense margin, which for the nine months ended March 31, 2025 was driven by goodwill and other intangible asset impairments relating to TOM FORD and Too Faced, combined, of $861 million, included in the makeup, fragrance and other product categories, partially offset by an increase in gross margin, as discussed above.

Charges associated with restructuring and other activities are not allocated to our product categories or geographic regions because they are centrally directed and controlled, are not included in internal measures of product category or geographic region performance and result from activities that are deemed Company-wide initiatives to redesign, resize and reorganize select areas of the business. Accordingly, the following discussions of Operating income (loss) by Product Categories and Geographic Regions exclude the impact of charges associated with restructuring and other activities for the three months ended March 31, 2025 and 2024 of $97 million and $18 million, respectively, and for the nine months ended March 31, 2025 and 2024 of $384 million and $28 million, respectively.

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THE ESTÉE LAUDER COMPANIES INC.

Product Categories

Skin Care


	Three Months Ended March 31,					Nine Months Ended March 31,
($ in millions)	2025			2024		2025			2024
As Reported:
Operating income	$	361		$	468	$	784		$	920
$ Change from prior-year period	(107)					(136)
% Change from prior-year period	(23)		%			(15)		%

Non-GAAP Financial Measure(1):
% Change in operating income from the prior-year period adjusting for the change in fair value of DECIEM acquisition-related stock options	(24)		%			(16)		%

(1)See “Reconciliations of Non-GAAP Financial Measures” beginning on page 59 for reconciliations between non-GAAP financial measures and the most directly comparable U.S. GAAP measures.

Reported skin care operating income decreased for the three and nine months ended March 31, 2025, primarily driven by lower operating income from Estée Lauder and La Mer, combined, of approximately $210 million and $368 million, respectively. Operating income from Estée Lauder decreased in both periods, primarily driven by a decrease in net sales, partially offset by lower cost of sales. Also partially offsetting the lower operating income from Estée Lauder for the nine months ended March 31, 2025 was disciplined advertising and promotional expense management. Operating income from La Mer decreased in both periods, primarily driven by decreases in net sales and increases in advertising and promotional activities to support key shopping moments and new product launches, partially offset by lower cost of sales. Partially offsetting the decline in skin care operating income for the product category overall in both periods was lower cost of sales.

Makeup


	Three Months Ended March 31,					Nine Months Ended March 31,
($ in millions)	2025			2024		2025			2024
As Reported:
Operating income (loss)	$	14		$	66	$	(382)		$	56
$ Change from prior-year period	(52)					(438)
% Change from prior-year period	(79)		%			(100+)%





Non-GAAP Financial Measure(1):
% Change in operating income (loss) from the prior-year period adjusting for the impact of goodwill and other intangible asset impairments and talcum litigation settlement agreements	(79)		%			(38)		%

(1)See “Reconciliations of Non-GAAP Financial Measures” beginning on page 59 for reconciliations between non-GAAP financial measures and the most directly comparable U.S. GAAP measures.

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THE ESTÉE LAUDER COMPANIES INC.

Reported makeup operating income decreased for the three months ended March 31, 2025, primarily driven by lower operating income from Estée Lauder and M·A·C, and to a lesser extent, an increase in operating loss from Bobbi Brown, combined, of approximately $81 million. The decrease in operating income from Estée Lauder was primarily driven by a decrease in net sales and higher advertising and promotional activities to support key campaigns and key shopping moments, partially offset by lower cost of sales. Operating income from M·A·C decreased, primarily driven by a decrease in net sales, partially offset by lower cost of sales and lower advertising and promotional activities due to disciplined advertising and promotional expense management and a favorable year-over-year impact of increased advertising and promotional activities in the prior-year period to support new product launches. The increase in operating loss from Bobbi Brown was primarily driven by a decrease in net sales, partially offset by disciplined advertising and promotional expense management. Partially offsetting the decline in makeup operating income for the product category overall was lower cost of sales.

Reported makeup operating results decreased for the nine months ended March 31, 2025, primarily driven by the unfavorable year-over-year impacts of other intangible asset impairment charges relating to TOM FORD and Too Faced, combined, of $245 million and a goodwill impairment charge relating to Too Faced of $13 million, as well as the charge in the fiscal 2025 first quarter associated with the talcum litigation settlement agreements of $159 million. Also contributing to the reported makeup operating results decrease for the nine months ended March 31, 2025 was a decrease in operating income from M·A·C, primarily driven by a decrease in net sales, partially offset by lower cost of sales. Partially offsetting the decline in makeup operating results for the product category overall was lower cost of sales.

Fragrance


	Three Months Ended March 31,					Nine Months Ended March 31,
($ in millions)	2025			2024		2025			2024
As Reported:
Operating income (loss)	$	32		$	29	$	(354)		$	267
$ Change from prior-year period	3					(621)
% Change from prior-year period	10		%			(100+)%

Non-GAAP Financial Measure(1):
% Change in operating income (loss) from the prior-year period adjusting for the impact of other intangible asset impairments	10		%			(27)		%

(1)See “Reconciliations of Non-GAAP Financial Measures” beginning on page 59 for reconciliations between non-GAAP financial measures and the most directly comparable U.S. GAAP measures.

Reported fragrance operating income increased slightly for the three months ended March 31, 2025, reflecting favorability in cost of sales for the category overall, as well as higher operating income from Le Labo. The increase in operating income from Le Labo was driven by an increase in net sales, partially offset by an increase in selling costs and store operating costs to support targeted expanded consumer reach, as well as an increase in cost of sales.

Partially offsetting the increase in reported fragrance operating income for the three months ended March 31, 2025 was lower operating income from Jo Malone London, lower operating income from TOM FORD and lower operating results from Clinique, combined, of approximately $42 million. Operating income from Jo Malone London decreased, primarily driven by a decrease in net sales and higher selling expenses, including higher staffing costs to support targeted expanded consumer reach. The decrease in operating income from TOM FORD was primarily driven by an increase in advertising and promotional activities to support new product launches, a decrease in net sales, and higher selling expenses which included increased demonstration costs, partially offset by lower cost of sales. Operating results from Clinique decreased, primarily driven by a decrease in net sales, partially offset by lower cost of sales.

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THE ESTÉE LAUDER COMPANIES INC.

Reported fragrance operating results decreased for the nine months ended March 31, 2025, primarily driven by lower operating results from TOM FORD, and to a lesser extent, lower operating income from Jo Malone London, combined, of approximately $637 million. The decrease in operating results from TOM FORD was primarily driven by an unfavorable year-over-year impact of the other intangible asset impairment charge of $549 million, as well as a decline in net sales, an increase in advertising and promotional activities to support key campaigns and an increase in selling expenses including to support targeted expanded consumer reach, partially offset by lower cost of sales. The decrease in operating income from Jo Malone London was due to higher selling expenses, including higher staffing costs to support key campaigns and targeted expanded consumer reach, a decrease in net sales, higher advertising and promotional activities to support key campaigns and higher store operating costs to support targeted expanded consumer reach, partially offset by lower cost of sales. Partially offsetting the decline in fragrance operating results for the product category overall for the nine months ended March 31, 2025 was lower cost of sales.

Hair Care


	Three Months Ended March 31,					Nine Months Ended March 31,
($ in millions)	2025			2024		2025			2024
As Reported:
Operating loss	$	(13)		$	(25)	$	(34)		$	(50)
$ Change from prior-year period	12					16
% Change from prior-year period	48		%			32		%

Reported hair care operating loss decreased for the three and nine months ended March 31, 2025, primarily reflecting a decrease in operating expenses and lower cost of sales, partially offset by a decrease in net sales.

Geographic Regions

The Americas


	Three Months Ended March 31,				Nine Months Ended March 31,
($ in millions)	2025		2024		2025		2024
As Reported:
Operating income (loss)	$	8	$	(6)	$	(983)	$	(243)
$ Change from prior-year period	14				(740)
% Change from prior-year period	100+%				(100+)%

Non-GAAP Financial Measure(1):




% Change in operating income (loss) from the prior-year period adjusting for the impact of goodwill and other intangible asset impairments, talcum litigation settlement agreements and change in fair value of DECIEM acquisition-related stock options	100+%				100+%

(1)See “Reconciliations of Non-GAAP Financial Measures” beginning on page 59 for reconciliations between non-GAAP financial measures and the most directly comparable U.S. GAAP measures.

Reported operating results increased in The Americas for the three months ended March 31, 2025, primarily driven by higher operating results in North America of approximately $18 million. The higher operating results were primarily driven by lower cost of sales and lower general and administrative expenses, partially offset by the unfavorable year-over-year impact relating to net intercompany activity and a decrease in net sales.

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THE ESTÉE LAUDER COMPANIES INC.

Reported operating loss increased for the nine months ended March 31, 2025, primarily reflecting an increase in operating loss in North America of approximately $726 million. The increase in operating loss was primarily driven by the unfavorable year-over-year impacts of other intangible asset impairment charges relating to TOM FORD and Too Faced of $848 million and a goodwill impairment charge relating to Too Faced of $13 million, the charge in the fiscal 2025 first quarter associated with the talcum litigation settlement agreements of $159 million and the unfavorable year-over-year impact relating to net intercompany activity, partially offset by lower cost of sales.

Europe, the Middle East & Africa


	Three Months Ended March 31,					Nine Months Ended March 31,
($ in millions)	2025			2024		2025			2024
As Reported:
Operating income	$	239		$	302	$	645		$	825
$ Change from prior-year period	(63)					(180)
% Change from prior-year period	(21)		%			(22)		%

Reported operating income decreased in Europe, the Middle East & Africa for the three months ended March 31, 2025, primarily driven by lower operating income in the United Kingdom, in our travel retail business, and in Russia, as well as lower operating results in Italy, combined, of approximately $47 million. The decrease in operating income in the United Kingdom was primarily driven by a decrease in net sales and higher advertising and promotional activities to support sales, partially offset by lower cost of sales. Operating income decreased in our travel retail business, reflecting a decrease in net sales, partially offset by a favorable year-over-year impact of net intercompany activity, lower cost of sales and lower shipping costs reflecting the decrease in net sales. Operating income decreased in Russia and Italy, primarily driven by decreases in net sales.

Reported operating income decreased in Europe, the Middle East & Africa for the nine months ended March 31, 2025, primarily driven by lower operating income in our travel retail business and in the United Kingdom, combined, of approximately $144 million. Operating income decreased in our travel retail business, reflecting a decrease in net sales, partially offset by a decrease in cost of sales, a favorable year-over-year impact of net intercompany activity, disciplined advertising and promotional expense management and lower shipping costs reflecting the decrease in net sales. Operating income in the United Kingdom decreased, primarily driven by an unfavorable year-over-year impact of net intercompany activity, a decrease in net sales and an increase in advertising and promotional activities to support sales, partially offset by lower cost of sales.

Asia/Pacific


	Three Months Ended March 31,					Nine Months Ended March 31,
($ in millions)	2025			2024		2025			2024
As Reported:
Operating income	$	156		$	253	$	327		$	649
$ Change from prior-year period	(97)					(322)
% Change from prior-year period	(38)		%			(50)		%

Reported operating income decreased in Asia/Pacific for the three months ended March 31, 2025, primarily driven by lower operating income from mainland China, reflecting the year-over-year unfavorable impact of a change in policy related to local government subsidies in China, an increase in advertising and promotional activities to support new product launches and key shopping moments and higher cost of sales, partially offset by an increase in net sales.

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THE ESTÉE LAUDER COMPANIES INC.

Reported operating income decreased in Asia/Pacific for the nine months ended March 31, 2025, primarily driven by lower operating income in mainland China, and to a lesser extent Hong Kong SAR and Korea, combined, of approximately $276 million. The decrease in operating income from mainland China was primarily driven by a decrease in net sales and the year-over-year unfavorable impact of a change in policy related to local government subsidies in China, partially offset by a year-over-year favorable impact of net intercompany activity, disciplined advertising and promotional expense management and lower cost of sales. Operating income in Hong Kong SAR decreased, primarily driven by a decrease in net sales, partially offset by lower cost of sales and a year-over-year favorable impact of net intercompany activity. The decrease in operating income in Korea was primarily driven by a decrease in net sales, partially offset by lower cost of sales and lower store operating costs relating to the exit of Dr.Jart+ from the travel retail channel during the fiscal 2025 second quarter.

INTEREST AND INVESTMENT INCOME


	Three Months Ended March 31,				Nine Months Ended March 31,
(In millions)	2025		2024		2025		2024
Interest expense	$	87	$	94	$	269	$	287
Interest income and investment income, net	$	27	$	45	$	85	$	126

Interest expense decreased for the three and nine months ended March 31, 2025, primarily reflecting a lower average debt balance compared to the prior-year periods. Interest income and investment income, net decreased for the three and nine months ended March 31, 2025, primarily reflecting a lower average cash balance and lower interest rates compared to the prior-year periods.

PROVISION FOR INCOME TAXES

The provision or benefit for income taxes represents U.S. federal, foreign, state and local income taxes. The effective rate differs from the federal statutory rate primarily due to the effect of state and local income taxes, the tax impact of stock-based compensation, the taxation of foreign income and income tax reserve adjustments, which represent changes in our net liability for unrecognized tax benefits including tax settlements and lapses of the applicable statutes of limitations. Our effective tax rate will change from quarter-to-quarter based on recurring and non-recurring factors including the geographical mix of earnings, enacted tax legislation, state and local income taxes, tax reserve adjustments, the tax impact of stock-based compensation, the interaction of various global tax strategies and the impact from certain acquisitions. In addition, changes in judgment from the evaluation of new information resulting in the recognition, derecognition or remeasurement of a tax position taken in a prior annual period are recognized separately in the quarter of change.


	Three Months Ended March 31,				Nine Months Ended March 31,
	2025		2024		2025		2024
Effective rate for income taxes	34.0	%	31.1	%	0.3	%	33.9	%
Basis-point change from the prior-year period	290				(3,360)

For the three months ended March 31, 2025, the increase in the effective tax rate was primarily attributable to a higher effective tax rate on our foreign operations due to our full year geographical mix of earnings in the current and prior-year periods, as well as an unfavorable impact associated with previously issued stock-based compensation.

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THE ESTÉE LAUDER COMPANIES INC.

NET EARNINGS (LOSS) ATTRIBUTABLE TO THE ESTÉE LAUDER COMPANIES INC.


	Three Months Ended March 31,					Nine Months Ended March 31,
($ in millions, except per share data)	2025			2024		2025			2024
As Reported:
Net earnings (loss) attributable to The Estée Lauder Companies Inc.	$	159		$	330	$	(587)		$	674
$ Change from prior-year period	(171)					(1,261)
% Change from prior-year period	(52)		%			(100+)%
Diluted net earnings (loss) per common share	$	.44		$	.91	$	(1.63)		$	1.87
% Change from prior-year period	(52)		%			(100+)%

Non-GAAP Financial Measure(1):
% Change in diluted net earnings per common share from the prior-year period adjusting for the impact of charges associated with restructuring and other activities, goodwill and other intangible asset impairments, talcum litigation settlement agreements and the change in fair value of DECIEM acquisition-related stock options	(33)		%			(27)		%

(1)See “Reconciliations of Non-GAAP Financial Measures” below for reconciliations between non-GAAP financial measures and the most directly comparable U.S. GAAP measures.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

We use certain non-GAAP financial measures, among other financial measures, to evaluate our operating performance, which represent the manner in which we conduct and view our business. Management believes that excluding certain items that are not comparable from period-to-period, or do not reflect the Company’s underlying ongoing business, provides transparency for such items and helps investors and others compare and analyze our operating performance from period-to-period. In the future, we expect to incur charges or adjustments similar in nature to those presented below; however, the impact to the Company’s results in a given period may be highly variable and difficult to predict. Our non-GAAP financial measures may not be comparable to similarly titled measures used by, or determined in a manner consistent with, other companies. While we consider the non-GAAP measures useful in analyzing our results, they are not intended to replace, or act as a substitute for, any presentation included in the consolidated financial statements prepared in conformity with U.S. GAAP. The following tables present Net sales, Operating income and Diluted net earnings per common share adjusted to exclude the impact of charges associated with restructuring and other activities; goodwill and other intangible asset impairments; talcum litigation settlement agreements; the change in fair value of DECIEM acquisition-related stock options; and the effects of foreign currency translation.

The following tables provide reconciliations between these non-GAAP financial measures and the most directly comparable U.S. GAAP measures.

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THE ESTÉE LAUDER COMPANIES INC.


($ in millions, except per share data)	Three Months Ended March 31,				Variance		% Change		% Change in constant currency
	2025		2024
Net sales, as reported	$	3,550	$	3,940	$	(390)	(10)	%	(8)	%
Returns associated with restructuring and other activities	—		—		—
Net sales, as adjusted	$	3,550	$	3,940	$	(390)	(10)	%	(9)	%

Operating income, as reported	$	306	$	531	$	(225)	(42)	%	(40)	%
Charges associated with restructuring and other activities	97		18		79



Change in fair value of DECIEM acquisition-related stock options	—		5		(5)
Operating income, as adjusted	$	403	$	554	$	(151)	(27)	%	(24)	%

Diluted net earnings per common share, as reported	$	.44	$	.91	$	(.47)	(52)	%	(49)	%
Charges associated with restructuring and other activities	.21		.04		.17





Change in fair value of DECIEM acquisition-related stock options (less portion attributable to redeemable noncontrolling interest)	—		.02		(.02)
Diluted net earnings per common share, as adjusted	$	.65	$	.97	$	(.32)	(33)	%	(30)	%

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THE ESTÉE LAUDER COMPANIES INC.


($ in millions, except per share data)	Nine Months Ended March 31,				Variance		% Change		% Change in constant currency
	2025		2024
Net sales, as reported	$	10,915	$	11,737	$	(822)	(7)	%	(7)	%
Returns associated with restructuring and other activities	—		1		(1)
Net sales, as adjusted	$	10,915	$	11,738	$	(823)	(7)	%	(7)	%

Operating income (loss), as reported	$	(395)	$	1,203	$	(1,598)	(100+)%		(100+)%
Charges associated with restructuring and other activities	384		28		356
Goodwill and other intangible asset impairments	861		—		861

Talcum litigation settlement agreements	159		—		159
Change in fair value of DECIEM acquisition-related stock options	—		8		(8)
Operating income, as adjusted	$	1,009	$	1,239	$	(230)	(19)	%	(18)	%

Diluted net earnings (loss) per common share, as reported	$	(1.63)	$	1.87	$	(3.50)	(100+)%		(100+)%
Charges associated with restructuring and other activities	.83		.06		.77
Goodwill and other intangible asset impairments	1.88		—		1.88
Talcum litigation settlement agreements	.34		—		.34

FINANCIAL CONDITION

LIQUIDITY AND CAPITAL RESOURCES

Overview

Our principal sources of funds historically have been cash flows from operations, borrowings pursuant to our commercial paper program, borrowings from the issuance of long-term debt and committed and uncommitted credit lines provided by banks and other lenders in the United States and abroad. At March 31, 2025, we had cash and cash equivalents of $2,631 million compared with $3,395 million at June 30, 2024. Our cash and cash equivalents are maintained at a number of financial institutions. To mitigate the risk of uninsured balances, we select financial institutions based on their credit ratings and financial strength, and we perform ongoing evaluations of these institutions to limit our concentration risk exposure.

Based on past performance and current expectations, we believe that cash on hand, cash generated from operations, available credit lines and access to credit markets will be adequate to support seasonal working capital needs, currently planned business operations, information technology enhancements, capital expenditures, acquisitions, dividends, stock repurchases, restructuring initiatives, commitments and other contractual obligations on both a near-term and long-term basis.

The Tax Cuts and Jobs Act resulted in the Transition Tax on unrepatriated earnings of our foreign subsidiaries and changed the tax law in ways that present opportunities to repatriate cash without additional U.S. federal income tax. We continue to analyze the indefinite reinvestment assertion on our applicable foreign earnings. We do not believe continuing to reinvest these applicable foreign earnings impairs our ability to meet our domestic debt or working capital obligations. If these reinvested earnings were repatriated into the United States as dividends, we would be subject to state income taxes and applicable foreign taxes in certain jurisdictions.

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THE ESTÉE LAUDER COMPANIES INC.

Inflation impacted our overall operating results in the fiscal 2025 third quarter and we expect it to continue. Generally, we have plans to introduce new products at higher prices, increase prices and implement other operating efficiencies which we expect to offset some of these cost increases.

Credit Ratings

Changes in our credit ratings will likely result in changes in our borrowing costs. Our credit ratings also impact the cost of our revolving credit facility. Downgrades in our credit ratings may reduce our ability to issue commercial paper and/or long-term debt and would likely increase the relative costs of borrowing. A credit rating is not a recommendation to buy, sell, or hold securities, is subject to revision or withdrawal at any time by the assigning rating organization, and should be evaluated independently of any other rating. As of April 24, 2025, our long-term debt is rated A- with a negative outlook by Standard & Poor’s and A2 with a negative outlook by Moody’s.

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THE ESTÉE LAUDER COMPANIES INC.

Debt

At March 31, 2025, our outstanding borrowings were as follows:


($ in millions)	Long-term Debt		Current Debt		Total Debt
5.150% Senior Notes, due May 15, 2053 ("2053 Senior Notes") (1), (15)	$	591	$	—	$	591
3.125% Senior Notes, due December 1, 2049 (“2049 Senior Notes”) (2), (15)	637		—		637
4.150% Senior Notes, due March 15, 2047 (“2047 Senior Notes”) (3), (15)	494		—		494
4.375% Senior Notes, due June 15, 2045 (“2045 Senior Notes”) (4), (15)	454		—		454
3.700% Senior Notes, due August 15, 2042 (“2042 Senior Notes”) (5), (15)	247		—		247
6.000% Senior Notes, due May 15, 2037 (“2037 Senior Notes”) (6), (15)	295		—		295
5.000% Senior Notes, due February 14, 2034 ("2034 Senior Notes) (7), (15)	644		—		644
5.75% Senior Notes, due October 15, 2033 (“October 2033 Senior Notes”) (8), (15)	198		—		198
4.650% Senior Notes, due May 15, 2033 ("May 2033 Senior Notes") (9), (15)	696		—		696
1.950% Senior Notes, due March 15, 2031 ("2031 Senior Notes") (10), (15)	559		—		559
2.600% Senior Notes, due April 15, 2030 ("2030 Senior Notes") (11), (15)	615		—		615
2.375% Senior Notes, due December 1, 2029 (“2029 Senior Notes”) (12), (15)	645		—		645
4.375% Senior Notes, due May 15, 2028 ("2028 Senior Notes") (13), (15)	697		—		697
3.150% Senior Notes, due March 15, 2027 (“2027 Senior Notes”) (14), (15)	499		—		499


Other long-term borrowings	27		—		27
Other current borrowings	—		3		3

† Exhibit is a management contract or compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	THE ESTÉE LAUDER COMPANIES INC.

	By:	/s/ AKHIL SHRIVASTAVA
Date: May 1, 2025		Akhil Shrivastava
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

ESTEE LAUDER COMPANIES INC - Quarter Report: 2025 March (Form 10-Q)

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