Estée Lauder stated that the reorganization aligns with previously announced leadership changes and is intended to enhance accountability and streamline operations. The company has also updated its methodology for reporting certain global and regional activities. Key changes include excluding intercompany royalty impacts globally, allocating corporate expenses and manufacturing impacts to all regions rather than attributing them to specific locations, and reflecting management's view that these activities support the company globally. The company noted that the changes affect only the way results are reported by geographic region and do not impact previously reported consolidated results or operating segments. Estée Lauder will continue to develop strategy, assess performance, and allocate resources by product category. To provide consistency, Estée Lauder has recast its historical financial results to conform to the new regional structure.