ESTEE LAUDER COMPANIES INC Leases Disclosure
June 30, | ||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
Total lease cost | ||||||||||||||||||||
Finance lease cost: | ||||||||||||||||||||
Amortization of right-of-use assets | $ | 9 | $ | 11 | $ | 11 | ||||||||||||||
Interest on lease liabilities | — | — | — | |||||||||||||||||
Operating lease cost | 496 | 458 | 444 | |||||||||||||||||
Short-term lease cost | 32 | 45 | 41 | |||||||||||||||||
Variable lease cost | 252 | 227 | 213 | |||||||||||||||||
Total | $ | 789 | $ | 741 | $ | 709 | ||||||||||||||
Other information | ||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
Financing cash flows from finance leases | $ | 5 | $ | 10 | $ | 15 | ||||||||||||||
Operating cash flows from operating leases | $ | 515 | $ | 489 | $ | 463 | ||||||||||||||
| Right-of-use assets obtained in exchange for new finance lease liabilities | $ | — | $ | 1 | $ | 34 | ||||||||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 537 | $ | 466 | $ | 273 | ||||||||||||||
Weighted-average remaining lease term – finance leases | 16 years | 16 years | 14 years | |||||||||||||||||
Weighted-average remaining lease term – operating leases | 8 years | 9 years | 9 years | |||||||||||||||||
Weighted-average discount rate – finance leases | 0.2 | % | 0.3 | % | 0.4 | % | ||||||||||||||
Weighted-average discount rate – operating leases | 2.8 | % | 2.8 | % | 2.5 | % | ||||||||||||||
| (In millions) | Operating Leases | Finance Leases | ||||||||||||
| Fiscal 2026 | $ | 461 | $ | 3 | ||||||||||
| Fiscal 2027 | 401 | 2 | ||||||||||||
| Fiscal 2028 | 307 | 2 | ||||||||||||
| Fiscal 2029 | 230 | 2 | ||||||||||||
| Fiscal 2030 | 184 | 2 | ||||||||||||
| Thereafter | 836 | 20 | ||||||||||||
| Total future minimum lease payments | 2,419 | 31 | ||||||||||||
| Less imputed interest | (269) | — | ||||||||||||
| Total | $ | 2,150 | $ | 31 | ||||||||||
June 30, | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| (In millions) | Operating Leases | Finance Leases | Operating Leases | Finance Leases | ||||||||||||||||||||||
Total current liabilities | $ | 406 | $ | 3 | $ | 354 | $ | 4 | ||||||||||||||||||
Total noncurrent liabilities | 1,744 | 28 | 1,701 | 28 | ||||||||||||||||||||||
Total | $ | 2,150 | $ | 31 | $ | 2,055 | $ | 32 | ||||||||||||||||||
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 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.