Estee Lauder 2004 Annual Report Download - page 39

THE EST{E LAUDER COMPANIES INC.
SELECTED FINANCIAL DATA
The table below summarizes selected financial information. For further information, refer to the audited consolidated
financial statements and the notes thereto beginning on page 56 of this report.
YEARENDEDORATJUNE30 2004 2003 2002 2001 2000
(In millions, except per share data)
STATEMENT OF EARNINGS DATA:
Net sales
(a)
$5,790.4 $5,096.0 $4,711.5 $4,667.7 $4,440.3
Gross profit
(a)
4,314.1 3,771.6 3,451.0 3,441.3 3,202.3
Operating income 644.0 503.7 342.1 495.6 515.8
Interest expense, net
(g)
27.1 8.1 9.8 12.3 17.1
Earnings before income taxes, minority interest,
discontinued operations and accounting change
(b)
616.9 495.6 332.3 483.3 498.7
Provision for income taxes 232.6 163.3 114.7 174.0 184.6
Minority interest, net of tax (8.9) (6.7) (4.7) (1.9) —
Discontinued operations, net of tax
(c)
(33.3) (5.8) (21.0) — —
Cumulative effect of a change in
accounting principle, net of tax —— — (2.2) —
Net earnings
(b)
342.1 319.8
(d)
191.9
(e)
305.2
(f)
314.1
Preferred stock dividends
(g)
—23.4 23.4 23.4 23.4
Net earnings attributable to common stock
(b)
342.1 296.4
(d)
168.5
(e)
281.8
(f)
290.7
CASH FLOW DATA:
Net cash flows provided by operating activities $ 669.8 $ 553.1 $ 519.3 $ 305.4 $ 442.5
Net cash flows used for investing activities (208.0) (192.5) (217.0) (206.3) (374.3)
Net cash flows used for financing activities (216.0) (555.0) (123.1) (63.5) (87.9)
PER SHARE DATA:
Net earnings per common share from
continuing operations
(b)(c)
:
Basic $ 1.65 $ 1.30
(d)
$ .80
(e)
$ 1.19
(f)
$ 1.22
Diluted $ 1.62 $ 1.29
(d)
$ .79
(e)
$ 1.17
(f)
$ 1.20
Net earnings per common share
(b)
:
Basic $ 1.50 $ 1.27
(d)
$ .71
(e)
$ 1.18
(f)
$ 1.22
Diluted $ 1.48 $ 1.26
(d)
$ .70
(e)
$ 1.16
(f)
$ 1.20
Weighted average common shares outstanding:
Basic 228.2 232.6 238.2 238.4 237.7
Diluted 231.6 234.7 241.1 242.2 242.5
Cash dividends declared per common share $.30 $ .20 $ .20 $ .20 $ .20
BALANCE SHEET DATA:
Working capital $ 877.2 $ 791.3 $ 968.0 $ 882.2 $ 716.7
Total assets 3,708.1 3,349.9 3,416.5 3,218.8 3,043.3
Total debt
(g)
535.3 291.4 410.5 416.7 425.4
Redeemable preferred stock
(g)
—360.0 360.0 360.0 360.0
Stockholders’ equity 1,733.5 1,423.6 1,461.9 1,352.1 1,160.3
(a) Effective January 1, 2002, we adopted Emerging Issues Task Force (“EITF”) Issue No. 01-9, “Accounting for Consideration Given by a Vendor to a Customer.” Upon adoption of this
Issue, we reclassified revenues generated from our purchase with purchase activities as sales and the costs of our purchase with purchase and gift with purchase activities as cost of sales,
which were previously reported net as operating expenses. Operating income has remained unchanged by this adoption. For purposes of comparability, these reclassifications have been
reflected retroactively for all periods presented.
(b) Pursuant to Statement of Financial Accounting Standards (“SFAS”) No. 142, “Goodwill and Other Intangible Assets,” financial results for periods subsequent to July 1, 2001 exclude
goodwill amortization. Goodwill amortization included in fiscal 2001 and 2000 was $20.9 million ($13.4 million after tax) and $17.6 million ($11.1 million after tax), respectively.
Excluding the effect of goodwill amortization in these same periods, diluted earnings per share would have been higher by $.06 and $.05, respectively.
(c) In December 2003, we committed to a plan to sell the assets and operations of our former reporting unit that sold jane brand products and we sold them in February 2004. As a result,
all consolidated statements of earnings information in the consolidated financial statements and footnotes for fiscal 2004, 2003 and 2002 has been restated for comparative purposes
to reflect that reporting unit as discontinued operations. Earnings data of the discontinued operation for fiscal 2001 and 2000 is not material to the consolidated results of operations
and has not been restated.
(d) Net earnings, net earnings attributable to common stock, net earnings per common share from continuing operations and net earnings per common share for the year ended
June 30, 2003 included a special charge related to the proposed settlement of a legal action of $13.5 million, after tax, or $.06 per diluted common share.
(e) Net earnings, net earnings attributable to common stock, net earnings per common share from continuing operations and net earnings per common share for the year ended
June 30, 2002 included a restructuring charge of $76.9 million (of which $0.5 million was included in discontinued operations), after tax, or $.32 per diluted common share, and a one-
time charge of $20.6 million, or $.08 per common share, attributable to the cumulative effect of adopting SFAS No. 142, “Goodwill and Other Intangible Assets,” which is attributable
to our former reporting unit that sold jane brand products and is included in discontinued operations.
(f) Net earnings, net earnings attributable to common stock, net earnings per common share from continuing operations and net earnings per common share for the year ended
June 30, 2001 included restructuring and other non-recurring charges of $40.3 million, after tax, or $.17 per diluted common share, and a one-time charge of $2.2 million, after tax, or
$.01 per diluted common share, attributable to the cumulative effect of adopting SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities.”
(g) During fiscal 2004, there was an increase of approximately $17.4 million in interest expense, net and a corresponding decrease in preferred stock dividends as a result of the
adoption of SFAS No. 150 (see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Recently Issued Accounting Standards”). Additionally, in
connection with this pronouncement, redeemable preferred stock has been reclassified as a component of total debt subsequent to June 30, 2003. The provisions of SFAS No. 150 did
not provide for retroactive restatement of historical financial data.
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