Estee Lauder 2004 Annual Report Download - page 45

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THE EST{E LAUDER COMPANIES INC.
YEAR ENDED JUNE 30, 2003 Results as Reported Reconciling Items Non-GAAP Results
(In millions, except per share data)
Net sales $5,096.0 $ — $5,096.0
Cost of sales 1,324.4 — 1,324.4
Gross profit 3,771.6 — 3,771.6
Gross margin 74.0% 74.0%
Operating expenses 3,267.9 22.0 3,245.9
Operating expense margin 64.1% 63.7%
Operating income 503.7 22.0 525.7
Operating income margin 9.9% 10.3%
Provision (benefit) for income taxes 163.3 (8.5) 171.8
Net earnings from continuing operations 325.6 13.5 339.1
Discontinued operations, net of tax (5.8) — (5.8)
Net earnings $ 319.8 $13.5 $ 333.3
Net earnings attributable to common stock $ 296.4 $13.5 $ 309.9
Diluted net earnings per common share:
Net earnings attributable to common stock
from continuing operations $ 1.29 $ .06 $ 1.35
Net earnings attributable to common stock $ 1.26 $ .06 $ 1.32
FISCAL 2002
The table below reconciles the fiscal 2002 results as reported and results prior to adjustment for pre-tax restructuring
charges of $117.4 million (of which $0.8 million was included in discontinued operations), or $76.9 million after tax
(of which $0.5 million was included in discontinued operations), equal to $.32 per diluted common share. The restruc-
turing charges were related to repositioning certain businesses as part of a globalization and reorganization initiative
and are described in greater detail in Note 5 to Notes to Consolidated Financial Statements. The restructuring was not
considered part of our core continuing business in fiscal 2002. Management also excludes the related charge in evaluating
its performance when comparing fiscal 2002 to future periods.
YEAR ENDED JUNE 30, 2002 Results as Reported Reconciling Items Non-GAAP Results
(In millions, except per share data)
Net sales $4,711.5 $ 6.2 $4,717.7
Cost of sales 1,260.5 0.8 1,259.7
Gross profit 3,451.0 7.0 3,458.0
Gross margin 73.2% 73.3%
Operating expenses 3,108.9 109.6 2,999.3
Operating expense margin 66.0% 63.6%
Operating income 342.1 116.6 458.7
Operating income margin 7.2% 9.7%
Provision (benefit) for income taxes 114.7 (40.2) 154.9
Net earnings from continuing operations 212.9 76.4 289.3
Discontinued operations, net of tax (21.0) 0.5 (20.5)
Net earnings $ 191.9 $ 76.9 $ 268.8
Net earnings attributable to common stock $ 168.5 $ 76.9 $ 245.4
Diluted net earnings per common share:
Net earnings attributable to common stock
from continuing operations $ .79 $ .31 $ 1.10
Net earnings attributable to common stock $ .70 $ .32 $ 1.02
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