Estee Lauder 2002 Annual Report Download - page 66

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NOTE 8 – DEBT
The Company’s short-term and long-term debt and available financing consist of the following:
Debt at June 30
Available financing at June 30
2002 2001 2002 2001 2002 2001
(In millions)
Commercial paper with an average interest rate
of 1.81% and 3.96%, respectively $130.0 $181.0 $— $— $620.0 $569.0
6% Senior Notes, due January 15, 2012,
with an effective yield of 6.062% 248.9 —————
Unsecured notes payable, due February 1, 2005,
with an effective interest rate of 5.13% —200.0 ————
2% Japan loan payable, due in installments
through April 2003 5.8 11.3 ————
1.45% Japan loan payable, due on March 28, 2006
25.0 24.2 ————
Other short-term borrowings 0.8 0.2 ——22.9 30.4
Revolving credit facility ——400.0 400.0 ——
Shelf registration for debt securities ————150.0 400.0
410.5 416.7 $400.0 $400.0 $792.9 $999.4
Less current maturities 6.6 5.8
$403.9 $410.9
UncommittedCommitted
THEEST{E LAUDER COMPANIES INC.
As of June 30, 2002 and 2001, the Company had current
net deferred tax assets of $112.4 million and $83.1 mil-
lion, respectively, which are included in prepaid expenses
and other current assets in the accompanying consoli-
dated balance sheets, and noncurrent net deferred tax
assets of $72.7 million and $70.1 million, respectively.
Federal income and foreign withholding taxes have not
been provided on $473.5 million, $476.4 million and
$442.2 million of undistributed earnings of international
subsidiaries at June 30, 2002, 2001 and 2000, respec-
tively. The Company intends to permanently reinvest
these earnings in its foreign operations, except where it is
able to repatriate these earnings to the United States with-
out any material incremental tax provision.
As of June 30, 2002 and 2001, certain international
subsidiaries had tax loss carryforwards for local tax pur-
poses of approximately $10.2 million and $21.4 million,
respectively. With the exception of $3.9 million of losses
with an indefinite carryforward period as of June 30,
2002, these losses expire at various dates through fiscal
2008. Deferred tax assets in the amount of $1.5 million
and $3.8 million as of June 30, 2002 and 2001, respec-
tively, have been recorded to reflect the tax benefits of
the losses not utilized to date. A full valuation allowance
has been provided since, in the opinion of management, it
is more likely than not that the deferred tax assets will not
be realized.
Earnings before income taxes and minority interest
include amounts contributed by the Company’s inter-
national operations of $283.4 million, $307.2 million
and $281.2 million for fiscal 2002, 2001 and 2000,
respectively.
NOTE 7 – OTHER ACCRUED LIABILITIES
Other accrued liabilities consist of the following:
JUNE 30 2002 2001
(In millions)
Advertising and promotional accruals $213.5 $157.0
Employee compensation 169.9 182.6
Restructuring 61.2 35.2
Other 182.0 157.3
$626.6 $532.1
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