Estee Lauder 2004 Annual Report Download - page 77

Download and view the complete annual report

Please find page 77 of the 2004 Estee Lauder annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 86

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86

THE EST{E LAUDER COMPANIES INC.
The projected benefit obligation, accumulated benefit obligation, fair value of plan assets and the other comprehensive
loss due to change in minimum liability recognition for the Company’s pension plans at June 30 are as follows:
Pension Plans
2004 2003 2004 2003 2004 2003
(In millions)
Projected benefit obligation $307.1 $286.6 $67.3 $72.1 $207.4 $191.0
Accumulated benefit obligation 258.5 238.7 52.8 56.4 177.2 160.7
Fair value of plan assets 341.4 277.4 ——154.6 120.9
Other comprehensive loss due to change
in minimum liability recognition:
Increase (decrease) in additional
minimum liability $— $— $ (8.1) $ 9.1 $ (18.7) $ 21.7
(Increase) decrease in intangible asset ——0.1 (0.5) 0.1 0.5
Other comprehensive (income) loss ——(8.0) 8.6 (18.6) 22.2
International pension plans with accumulated benefit obligations in excess of the plans’ assets had aggregate projected
benefit obligations of $139.4 million and $137.8 million, aggregate accumulated benefit obligations of $120.3 million
and $119.1 million and aggregate fair value of plan assets of $85.0 million and $68.9 million at June 30, 2004 and
2003, respectively.
Other than
Pension Plans Pension Plans
(In millions)
Expected Cash Flows:
Expected employer contributions for year ending
June 30, 2005 $ 25.0 $18.0 N/A
Expected benefit payments for year ending June 30,
2005 36.3 6.5 $ 2.3
2006 25.4 7.4 2.4
2007 28.8 6.3 2.6
2008 25.3 9.1 2.8
2009 28.4 9.4 3.1
Years 2010 – 2014 184.7 54.7 21.1
Plan Assets:
Actual asset allocation
Equity 63% 61% N/A
Fixed income 32% 37% N/A
Other 5% 2% N/A
100% 100% N/A
Target asset allocation
Equity 62% 61% N/A
Fixed income 30% 37% N/A
Other 8% 2% N/A
100% 100% N/A
The target policy was set to maximize returns with consideration to the long-term nature of the obligations and main-
taining a lower level of overall volatility through the allocation to fixed income. During the year, the asset allocation is
reviewed for adherence to the target policy and is rebalanced periodically towards the target weights.
PostretirementInternationalU.S.
InternationalRestoration
Retirement
Growth Account
75