Estee Lauder 2013 Annual Report Download - page 159

THE EST{E LAUDER COMPANIES INC. 157
Major Jurisdiction Open Fiscal Years
Belgium 2009–2013
Canada 2006–2013
China 2009–2013
France 2006–2013
Germany 2004–2013
Hong Kong 2007–2013
Japan 2012–2013
Korea 2009–2013
Russia 2013
Spain 1999–2002, 2008–2013
Switzerland 2011–2013
United Kingdom 2012–2013
United States 2013
State of California 2007–2013
State of New York 2010–2013
The Company is also subject to income tax examinations
in numerous other state, local and foreign jurisdictions.
The Company believes that its tax reserves are adequate
for all years subject to examination.
NOTE 8 — OTHER ACCRUED LIABILITIES
Other accrued liabilities consist of the following:
JUNE 30 2013 2012
(In millions)
Advertising, merchandising
and sampling $ 338.4 $ 318.6
Employee compensation 433.3 431.4
Payroll and other taxes 135.7 133.0
Restructuring 23.2 34.8
Other 422.7 398.0
$1,353.3 $1,315.8
2013
$
338.
4
4
33
.
3
135
.
7
23
.
2
4
22.7
$
1
,
353.3
Court. While no assurance can be given as to the out-
come in respect of this assessment and pending appeal in
the Spanish courts, based on the decision of the National
Appellate Court, management believes it is not more-
likely-than-not that the subsidiary will be successful in its
appeal to the Spain Supreme Court. Accordingly, the
Company established a reserve during fiscal 2012 which
resulted in an increase to the provision for income taxes
equal to the $3.7 million exposure, net of tax. Separately,
during fiscal 2012, the Company’s subsidiary in Spain
made cash payments totaling $4.0 million, at current
exchange rates, to the Spain tax authority as an advance
deposit to limit the additional interest that would be due
to the Spain tax authority should it receive an unfavorable
decision from the Spain Supreme Court.
During fiscal 2013, the Company concluded various
state, local and foreign income tax audits and examina-
tions while several other matters, including those noted
above, were initiated or remained pending. On the basis
of the information available in this regard as of June 30,
2013, it is reasonably possible that the total amount of
unrecognized tax benefits could decrease in a range of
$10 million to $15 million within 12 months as a result of
projected resolutions of global tax examinations and con-
troversies and a potential lapse of the applicable statutes
of limitations.
The tax years subject to examination vary depending
on the tax jurisdiction. As of June 30, 2013, the following
tax years remain subject to examination by the major tax
jurisdictions indicated:
NOTE 9 — DEBT
The Company’s current and long-term debt and available financing consist of the following:
Available financing
Debt at June 30 at June 30, 2013
2013 2012 Committed Uncommitted
(In millions)
3.70% Senior Notes, due August 15, 2042 (“2042 Senior Notes”) $ 248.9 $ — $ — $ —
6.00% Senior Notes, due May 15, 2037 (“2037 Senior Notes”) 296.5 296.4 — —
5.75% Senior Notes, due October 15, 2033 (“2033 Senior Notes”) 197.8 197.7 — —
2.35% Senior Notes, due August 15, 2022 (“2022 Senior Notes”) 249.8 — — —
5.55% Senior Notes, due May 15, 2017 (“2017 Senior Notes”) 328.0 334.9 — —
7.75% Senior Notes, due November 1, 2013 (“2013 Senior Notes”) — 230.1 — —
Commercial paper — 200.0 — 1,000.0
Loan participation notes — — — 150.0
Other long-term borrowings 5.0 10.0 — —
Other current borrowings 18.3 19.0 — 203.8
Revolving credit facility — — 1,000.0 —
1,344.3 1,288.1 $1,000.0 $1,353.8
Less current debt including current maturities (18.3) (219.0)
$1,326.0 $1,069.1
20
13
$
248.
9
2
9
6.
5
19
7.
8
24
9
.
8
328.
0
—
—
—
5.
0
1
8.
3
—
1
,344.
3
(
18.3
)
$
1
,
326.
0