Item 2. Properties
Item 2. Properties .
The following table sets forth our principal owned and leased manufacturing, assembly, research and development (“R&D”) and distribution facilities, some of which include contiguous office space, as well as our principal executive offices, as of August 11, 2023. The leases expire at various times through 2079 subject to certain renewal options.
The Americas Europe, the Middle
East & Africa Asia/Pacific
Owned Leased Owned Leased Owned Leased
Manufacturing 2 2 2 — — —
R&D 1 2 — — — 1
Distribution — 6 1 7 — 3
Manufacturing and R&D 1 1 1 — — —
Manufacturing and Assembly — 3 — — — —
Distribution and Manufacturing — — 1 — — —
Principal Executive Offices — 1 — — — —
Total 4 15 5 7 — 4
Certain of our manufacturing facilities are utilized primarily for the production of products relating to particular product categories: three for makeup; two for skin care; two for skin care and fragrance; and one for skin care and hair care. As demand changes, certain of our manufacturing facilities can produce products from categories other than their primary category. In fiscal 2023, four of our primarily makeup facilities also produced a significant volume of skin care products. In fiscal 2023, we began limited production in our new owned manufacturing facility near Tokyo as we continued construction. We expect the remainder of the site to be completed and operational in early fiscal 2024, with production levels scaling over the next few years.
In fiscal 2023, we completed construction of a newly leased site for our new Research and Development facility in China.
We consider our properties to be generally in good condition and believe that our facilities are adequate for our operations and provide sufficient capacity to meet anticipated requirements.
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Item 3. Legal Proceedings.
For a discussion of legal proceedings, see Item 8. Financial Statements and Supplementary Data – Note 16 – Commitments and Contingencies.
Item 4. Mine Safety Disclosures.
Not applicable.
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PART II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.