Estee Lauder 2010 Annual Report Download - page 133
Download and view the complete annual report
Please find page 133 of the 2010 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.-
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
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123 -
124 -
125 -
126 -
127 -
128 -
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136 -
137 -
138 -
139 -
140 -
141 -
142 -
143 -
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
 |
 |
132 THE EST{E LAUDER COMPANIES INC.
The fair values of the Company’s derivative financial instruments included in the consolidated balance sheets are presented
as follows:
Asset Derivatives Liability Derivatives
Balance Sheet Location Fair Value(1) Balance Sheet Location Fair Value(1)
June 30 June 30
2010 2009 2010 2009
(In millions)
Derivatives Designated as
Hedging Instruments
:
Prepaid expenses and
Foreign currency forward contracts
other current assets $17.1 $13.9
Other accrued liabilities
$10.5 $24.9
Interest rate swap contracts Other assets 38.7 24.5 Not applicable — —
Total Derivatives Designated as
Hedging Instruments 55.8 38.4 10.5 24.9
Derivatives Not Designated as
Hedging Instruments:
Prepaid expenses and
Foreign currency forward contracts other current assets 2.0 2.8 Other accrued liabilities 2.0 1.3
Total Derivatives $57.8 $41.2 $12.5 $26.2
2010
$17.1
38.7
55.8
2.0
$57.8
2010
$10.5
—
10.5
2.0
$12.5
(1) See Note 12 — Fair Value Measurements for further information about how the fair value of derivative assets and liabilities are determined.
The amounts of the gains and losses related to the Company’s derivative financial instruments designated as hedging
instruments are presented as follows:
Amount of Gain or (Loss) Location of Gain or (Loss) Amount of Gain or (Loss)
Recognized in OCI Reclassified from Reclassified from
on Derivatives Accumulated OCI into Accumulated OCI into
(Effective Portion) Earnings (Effective Portion) Earnings (Effective Portion)(1)
June 30 June 30
2010 2009 2010 2009
(In millions)
Derivatives in Cash Flow
Hedging Relationships:
Foreign currency forward contracts
$(0.2) $16.5 Cost of sales $ (8.5) $ 6.8
Selling, general and administrative
(11.8) 19.3
Total derivatives $(0.2) $16.5 $(20.3) $26.1
.
2010
$(0.2)
$(0.2)
2010
$ (8.5)
(11.8)
$(20.3)
(1) The amount of gain (loss) recognized in earnings related to the amount excluded from effectiveness testing was $(2.5) million and $1.4 million for the fiscal
years ended June 30, 2010 and 2009, respectively. There was no gain (loss) recognized in earnings related to the ineffective portion of the hedging
relationships for the fiscal years ended June 30, 2010 and 2009, respectively.
Location of Gain or (Loss) Amount of Gain or (Loss)
Recognized in Earnings on Derivatives Recognized in Earnings on Derivatives(1
)
June 30
2010 2009
(In millions)
Derivatives in Fair Value Hedging
Relationships:
Interest rate swap contracts Interest expense, net $14.2 $13.6
2010
$14.2
(1) Changes in the fair values of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt.