ESTEE LAUDER COMPANIES INCEL
ESTEE LAUDER COMPANIES INC Debt Disclosure
DEBT
The Company’s current and long-term debt and available financing consist of the following:
Debt at June 30, | Available financing at June 30, 2025 | |||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | Committed | Uncommitted | ||||||||||||||||||||||
5.150% Senior Notes, due May 15, 2053 ("2053 Senior Notes") | $ | 591 | $ | 590 | $ | — | $ | — | ||||||||||||||||||
3.125% Senior Notes, due December 1, 2049 (“2049 Senior Notes”) | 637 | 637 | — | — | ||||||||||||||||||||||
4.150% Senior Notes, due March 15, 2047 (“2047 Senior Notes”) | 494 | 494 | — | — | ||||||||||||||||||||||
4.375% Senior Notes, due June 15, 2045 (“2045 Senior Notes”) | 454 | 454 | — | — | ||||||||||||||||||||||
3.700% Senior Notes, due August 15, 2042 (“2042 Senior Notes”) | 247 | 247 | — | — | ||||||||||||||||||||||
6.000% Senior Notes, due May 15, 2037 (“2037 Senior Notes”) | 296 | 296 | — | — | ||||||||||||||||||||||
5.000% Senior Notes, due February 14, 2034 ("2034 Senior Notes") | 644 | 644 | — | — | ||||||||||||||||||||||
5.75% Senior Notes, due October 15, 2033 (“October 2033 Senior Notes”) | 198 | 198 | — | — | ||||||||||||||||||||||
4.650% Senior Notes, due May 15, 2033 ("May 2033 Senior Notes") | 696 | 695 | — | — | ||||||||||||||||||||||
1.950% Senior Notes, due March 15, 2031 (“2031 Senior Notes”) | 563 | 551 | — | — | ||||||||||||||||||||||
2.600% Senior Notes, due April 15, 2030 ("2030 Senior Notes") | 625 | 595 | — | — | ||||||||||||||||||||||
2.375% Senior Notes, due December 1, 2029 (“2029 Senior Notes”) | 645 | 644 | — | — | ||||||||||||||||||||||
4.375% Senior Notes, due May 15, 2028 ("2028 Senior Notes") | 697 | 696 | — | — | ||||||||||||||||||||||
3.150% Senior Notes, due March 15, 2027 (“2027 Senior Notes”) | 499 | 499 | — | — | ||||||||||||||||||||||
2.000% Senior Notes, due December 1, 2024 (“2024 Senior Notes”) | — | 499 | — | — | ||||||||||||||||||||||
Commercial paper | — | — | — | 2,500 | ||||||||||||||||||||||
| Other long-term borrowings | 28 | 28 | — | — | ||||||||||||||||||||||
| Other current borrowings | 3 | 4 | — | 155 | ||||||||||||||||||||||
Revolving credit facilities | — | — | 3,500 | — | ||||||||||||||||||||||
| 7,317 | 7,771 | $ | 3,500 | $ | 2,655 | |||||||||||||||||||||
| Less current debt including current maturities | (3) | (504) | ||||||||||||||||||||||||
| $ | 7,314 | $ | 7,267 | |||||||||||||||||||||||
As of June 30, 2025, the Company’s long-term debt consisted of the following:
Notes(1) | Issue Date | Price | Yield | Principal | Unamortized Debt (Discount) Premium | Interest rate swap adjustments | Debt Issuance Costs | Semi-annual interest payments | ||||||||||||||||||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2053 Senior Notes | May 2023 | 99.455 | % | 5.186 | % | $ | 600 | $ | (3) | $ | — | $ | (6) | May 15/November 15 | ||||||||||||||||||||||||||||||||||||
| 2049 Senior Notes | November 2019 | 98.769 | 3.189 | 650 | (7) | — | (6) | June 1/December 1 | ||||||||||||||||||||||||||||||||||||||||||
2047 Senior Notes(2) | February 2017 | 99.739 | 4.165 | 500 | (1) | — | (5) | March 15/September 15 | ||||||||||||||||||||||||||||||||||||||||||
2045 Senior Notes(3) | June 2015 | 97.999 | 4.497 | 300 | (5) | — | (3) | June 15/December 15 | ||||||||||||||||||||||||||||||||||||||||||
2045 Senior Notes(3) | May 2016 | 110.847 | 3.753 | 150 | 13 | — | (1) | June 15/December 15 | ||||||||||||||||||||||||||||||||||||||||||
| 2042 Senior Notes | August 2012 | 99.567 | 3.724 | 250 | (1) | — | (2) | February 15/August 15 | ||||||||||||||||||||||||||||||||||||||||||
2037 Senior Notes(4) | May 2007 | 98.722 | 6.093 | 300 | (2) | — | (2) | May 15/November 15 | ||||||||||||||||||||||||||||||||||||||||||
2034 Senior Notes(5) | February 2024 | 99.689 | 5.040 | 650 | (2) | — | (4) | February 14/August 14 | ||||||||||||||||||||||||||||||||||||||||||
October 2033 Senior Notes(6) | September 2003 | 98.645 | 5.846 | 200 | (1) | — | (1) | April 15/October 15 | ||||||||||||||||||||||||||||||||||||||||||
May 2033 Senior Notes(7) | May 2023 | 99.897 | 4.663 | 700 | (1) | — | (3) | May 15/November 15 | ||||||||||||||||||||||||||||||||||||||||||
2031 Senior Notes(8),(9) | March 2021 | 99.340 | 2.023 | 600 | (3) | (32) | (2) | March 15/September 15 | ||||||||||||||||||||||||||||||||||||||||||
2030 Senior Notes(9) | April 2020 | 99.816 | 2.621 | 700 | (1) | (72) | (2) | April 15/October 15 | ||||||||||||||||||||||||||||||||||||||||||
2029 Senior Notes(10) | November 2019 | 99.046 | 2.483 | 650 | (3) | — | (2) | June 1/December 1 | ||||||||||||||||||||||||||||||||||||||||||
| 2028 Senior Notes | May 2023 | 99.897 | 4.398 | 700 | — | — | (3) | May 15/November 15 | ||||||||||||||||||||||||||||||||||||||||||
2027 Senior Notes(11) | February 2017 | 99.963 | 3.154 | 500 | — | — | (1) | March 15/September 15 | ||||||||||||||||||||||||||||||||||||||||||
(1)The Senior Notes contain certain customary covenants, including limitations on indebtedness secured by liens.
(2)In November 2016, in anticipation of the issuance of the 2047 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $350 million at a weighted-average all-in rate of 3.01%. The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a gain in OCI of $3 million that is being amortized against interest expense over the life of the 2047 Senior Notes. As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2047 Senior Notes will be 4.17% over the life of the debt.
(3)In April and May 2015, in anticipation of the issuance of the 2045 Senior Notes in June 2015, the Company entered into a series of forward-starting interest rate swap agreements on a notional amount totaling $300 million at a weighted-average all-in rate of 2.38%. The forward-starting interest rate swap agreements were settled upon the issuance of the new debt and the Company recognized a gain in OCI of $18 million that will be amortized against interest expense over the life of the 2045 Senior Notes. As a result of the forward-starting interest rate swap agreements, the debt discount and debt issuance costs, the effective interest rate on the 2045 Senior Notes will be 4.216% over the life of the debt. In May 2016, the Company reopened this offering with the same terms and issued an additional $150 million for an aggregate amount outstanding of $450 million of 2045 Senior Notes.
(4)In April 2007, in anticipation of the issuance of the 2037 Senior Notes, the Company entered into a series of forward-starting interest rate swap agreements on a notional amount totaling $210 million at a weighted-average all-in rate of 5.45%. The forward-starting interest rate swap agreements were settled upon the issuance of the new debt and the Company recognized a loss in OCI of $1 million that is being amortized to interest expense over the life of the 2037 Senior Notes. As a result of the forward-starting interest rate swap agreements, the debt discount and debt issuance costs, the effective interest rate on the 2037 Senior Notes will be 6.181% over the life of the debt.
(5)In March 2022, in anticipation of the issuance of the 2034 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $300 million at a weighted average all-in rate of 2.02%. The treasury lock agreements were terminated in September 2022, and the Company recognized a gain in OCI of $31 million that is being amortized to interest expense over the life of the 2034 Senior Notes. As a result of the treasury lock agreements, as well as the debt discount and debt issuance costs, the effective interest rate on the 2034 Senior Notes will be 4.53% over the life of the debt.
(6)In May 2003, in anticipation of the issuance of the October 2033 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $195 million at a weighted-average all-in rate of 4.53%. The treasury lock agreements were settled upon the issuance of the new debt and the Company received a payment of $15 million that is being amortized against interest expense over the life of the October 2033 Senior Notes. As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the October 2033 Senior Notes will be 5.395% over the life of the debt.
(7)In December 2022 and March 2023, in anticipation of the issuance of the May 2033 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $575 million at a weighted-average all-in rate of 3.57%. The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a loss in OCI of $5 million that is being amortized to interest expense over the life of the May 2033 Senior Notes. As a result of the treasury lock agreements, as well as the debt discount and debt issuance costs, the effective interest rate on the May 2033 Senior Notes will be 4.83% over the life of the debt.
(8)In March 2020, in anticipation of the issuance of the 2031 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $200 million at a weighted-average all-in rate of 0.84%. The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a gain in OCI of $11 million that is being amortized to interest expense over the life of the 2031 Senior Notes. As a result of the treasury lock agreements, as well as the debt discount and debt issuance costs, the effective interest rate on the 2031 Senior Notes will be 1.89% over the life of the debt.
(9)The Company entered into interest rate swap agreements with a notional amount totaling $700 million and $300 million to effectively convert the fixed rate interest on its outstanding 2030 Senior Notes and 2031 Senior Notes to variable interest rates based on three month fallback Secured Overnight Financing Rate ("SOFR") plus a margin.
(10)In April and May 2019, in anticipation of the issuance of the 2029 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $500 million at a weighted-average all-in rate of 2.50%. The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a loss in OCI of $33 million that is being amortized to interest expense over the life of the 2029 Senior Notes. As a result of the treasury lock agreements, as well as the debt discount and debt issuance costs, the effective interest rate on the 2029 Senior Notes will be 3.15% over the life of the debt.
(11)In November 2016, in anticipation of the issuance of the 2027 Senior Notes, the Company entered into a series of treasury lock agreements on a notional amount totaling $450 million at a weighted-average all-in rate of 2.37%. The treasury lock agreements were settled upon the issuance of the new debt, and the Company recognized a gain in OCI of $2 million that is being amortized against interest expense over the life of the 2027 Senior Notes. As a result of the treasury lock agreements, the debt discount and debt issuance costs, the effective interest rate on the 2027 Senior Notes will be 3.18% over the life of the debt.
In May 2025, the Company entered into a $1,000 million senior unsecured revolving credit facility (the "364-Day Facility"). The 364-Day Facility expires on May 22, 2026. Up to the equivalent of $1,000 million of the 364-Day Facility is available for multi-currency loans. Interest rates on borrowings under the 364-Day Facility will be based on prevailing market interest rates in accordance with the agreement. The costs incurred to establish the 364-Day Facility were not material. The 364-Day Facility has an annual fee of $0.7 million, payable quarterly, which can fluctuate based on the Company’s current credit ratings each period. The 364-Day Facility contains a cross-default provision whereby a failure to pay other material financial obligations in excess of $175 million (after grace periods and absent a waiver from the lenders) would result in an event of default and the acceleration of the maturity of any outstanding debt under this facility. At June 30, 2025, no borrowings were outstanding under the 364-Day Facility.
In December 2024, the Company repaid the outstanding principal balance of its $500 million, 2024 Senior Notes at maturity with cash from operations.
In June 2024, the Company replaced its $2,500 million senior unsecured revolving credit facility that was set to expire in October 2026 with a new $2,500 million senior unsecured revolving credit facility (the “2024 Facility”). The 2024 Facility expires on June 7, 2029 unless extended for up to additional years in accordance with the terms set forth in the agreement. Up to the equivalent of $750 million of the 2024 Facility is available for multi-currency loans. Interest rates on borrowings under the 2024 Facility will be based on prevailing market interest rates in accordance with the agreement. The costs incurred to establish the 2024 Facility were not material. In fiscal 2025, the 2024 Facility's annual fee was $1.8 million, payable quarterly, which can fluctuate based on the Company’s credit ratings each period. The 2024 Facility contains a cross-default provision whereby a failure to pay other material financial obligations in excess of $175 million (after grace periods and absent a waiver from the lenders) would result in an event of default and the acceleration of the maturity of any outstanding debt under this facility. The 2024 Facility may be increased, at the election of the Company, by up to $500 million in accordance with the terms set forth in the agreement. At June 30, 2025, no borrowings were outstanding under the 2024 Facility.
In February 2024, the Company completed a public offering of $650 million aggregate principal amount of its 2034 Senior Notes. The Company used the proceeds from this offering for general corporate purposes, including funding a portion of the price to purchase the remaining interest in DECIEM, operating expenses, working capital, capital expenditures and redemptions and repayment of short-term or long-term borrowings, including outstanding commercial paper as it matured.
The Company maintains uncommitted credit facilities in various regions throughout the world. Interest rate terms for these facilities vary by region and reflect prevailing market rates for companies with strong credit ratings. During fiscal 2025 and fiscal 2024, there were no amounts outstanding.
Refer to Note 17 – Commitments and Contingencies for the Company’s projected debt service payments as of June 30, 2025 and over the next five fiscal years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 20, 2025 | Showing above |
| 2024 | Aug 19, 2024 | |
| 2023 | Aug 18, 2023 | |
| 2022 | Aug 24, 2022 | |
| 2021 | Aug 27, 2021 | |
| 2020 | Aug 28, 2020 | |
| 2019 | Aug 23, 2019 | |
| 2018 | Aug 24, 2018 | |
| 2017 | Aug 25, 2017 | |
| 2016 | Aug 24, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.