Estee Lauder 2013 Annual Report Download - page 135

On August 14, 2013, a dividend was declared in the
amount of $.18 per share on our Class A and Class B
Common Stock. The dividend is payable in cash on Sep-
tember 16, 2013 to stockholders of record at the close of
business on August 30, 2013.
Pension and Post-retirement Plan Funding
Several factors influence the annual funding requirements
for our pension plans. For the U.S. Qualified Plan, our
funding policy consists of annual contributions at a rate
that provides for future plan benefits and maintains appro-
priate funded percentages. Such contribution is not less
than the minimum required by the Employee Retirement
Income Security Act of 1974, as amended, (“ERISA”) and
subsequent pension legislation, and is not more than the
maximum amount deductible for income tax purposes.
For each international plan, our funding policies are deter-
mined by local laws and regulations. In addition, amounts
necessary to fund future obligations under these plans
could vary depending on estimated assumptions as
detailed in • Management•s Discussion and Analysis of
Financial Condition and Results of Operations „ Critical
Accounting Policies and Estimates.Ž The effect of our pen-
sion plan funding on future operating results will depend
on economic conditions, employee demographics, mor-
tality rates, the number of participants electing to take
lump-sum distributions, investment performance and
funding decisions.
For the U.S. Qualified Plan, we maintain an investment
strategy of matching the duration of a substantial portion
of the plan assets with the duration of the underlying plan
liabilities. This strategy assisted in maintaining a funded
ratio of more than 100% as of June 30, 2013. For fiscal
2013 and 2012, we met or exceeded all minimum contri-
butions required by ERISA for the U.S. Qualified Plan. For
fiscal 2013, minimum contributions to the U.S. Qualified
Plan required by ERISA were satisfied by using a portion
of the credit balance. Credit balances occur when contri-
butions to the plan exceed the minimum required by
ERISA. In fiscal 2012, we made discretionary payments of
$75.6 million to the U.S. Qualified Plan and $9.4 million
to our U.S. post-retirement medical plan. As we continue
to monitor the performance of our plan assets, we may
decide to make discretionary cash contributions to the
U.S. Qualified Plan or our post-retirement plan in the
United States during fiscal 2014, but do not have plans to
do so at this time.
For fiscal 2013 and 2012, we made benefit payments
under our non-qualified domestic noncontributory
pension plan of $6.1 million and $6.6 million, respectively.
We expect to make benefit payments under this plan dur-
ing fiscal 2014 of approximately $12.1 million. For fiscal
2013 and 2012, we made cash contributions to our inter-
national defined benefit pension plans of $25.9 million
and $29.7 million, respectively. We expect to make
contributions under these plans during fiscal 2014 of
approximately $29.2 million.
Commitments and Contingencies
Certain of our business acquisition agreements include
“earn-out” provisions. These provisions generally require
that we pay to the seller or sellers of the business addi-
tional amounts based on the performance of the acquired
business. Since the size of each payment depends upon
performance of the acquired business, we do not expect
that such payments will have a material adverse impact on
our future results of operations or financial condition.
For additional contingencies refer to •Note 13 „
Commitments and ContingenciesŽ of Notes to Consoli-
dated Financial Statements.
THE EST{E LAUDER COMPANIES INC. 133
Dividends
We transitioned to a quarterly dividend payout schedule for our Class A and Class B Common Stock beginning in the
fiscal 2013 third quarter.
The following is a summary of cash dividends declared per share on our Class A and Class B Common Stock during the
year ended June 30, 2013:
Date Declared Record Date Payable Date Amount per Share
November 1, 2012 November 30, 2012 December 17, 2012 $.72
February 4, 2013 February 28, 2013 March 15, 2013 $.18
May 1, 2013 May 31, 2013 June 17, 2013 $.18