Estee Lauder 2013 Annual Report Download - page 174

shares. The Company’s equity compensation awards out-
standing at June 30, 2013 include stock options, perfor-
mance share units (“PSU”), restricted stock units (“RSU”),
performance share units based on total stockholder
return, market share units (“MSU”) and share units.
Total stock-based compensation expense is attributable
to the granting of, and the remaining requisite service
periods of stock options, PSUs, RSUs, PSUs based on total
stockholder return, MSUs and share units. Stock-based
compensation expense and related income tax benefits
are as follows:
YEAR ENDED JUNE 30 2013 2012 2011
(In millions)
Compensation expense $145.8 $124.7 $94.8
Income tax benefit 47.6 41.1 31.5
2
013
$
145.
8
47.
6
As of June 30, 2013, the total unrecognized compensa-
tion cost related to nonvested stock-based awards was
$104.5 million and the related weighted-average period
over which it is expected to be recognized is approxi-
mately 1.8 years.
172 THE EST{E LAUDER COMPANIES INC.
On August 14, 2013, a dividend was declared in the
amount of $.18 per share on the Company’s Class A and
Class B Common Stock. The dividend is payable in cash
on September 16, 2013 to stockholders of record at the
close of business on August 30, 2013.
NOTE 15—STOCK PROGRAMS
As of June 30, 2013, the Company has two active equity
compensation plans which include the Amended
and Restated Fiscal 2002 Share Incentive Plan (the
“Fiscal 2002 Plan”) and the Non-Employee Director Share
Incentive Plan (collectively, the “Plans”). These Plans
currently provide for the issuance of 66,206,200 shares of
Class A Common Stock, which consist of shares originally
provided for and shares transferred to the Fiscal 2002
Plan from other inactive plans and employment agree-
ments, to be granted in the form of stock-based awards to
key employees, consultants and non-employee directors
of the Company. As of June 30, 2013, approximately
18,335,900 shares of Class A Common Stock were
reserved and available to be granted pursuant to these
Plans. The Company may satisfy the obligation of its stock-
based compensation awards with either new or treasury
The following is a summary of cash dividends declared per share on the Company’s 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
Stock Options
A summary of the Company’s stock option programs as of June 30, 2013 and changes during the fiscal year then ended,
is presented below:
Aggregate Weighted-Average
Weighted-Average Intrinsic Value(1) Contractual Life
Shares Exercise Price Per Share (in millions) Remaining in Years
(Shares in thousands)
Outstanding at June 30, 2012 15,810.8 $28.86
Granted at fair value 3,242.1 59.75
Exercised (3,804.8) 23.95
Expired (20.2) 26.46
Forfeited (156.5) 43.15
Outstanding at June 30, 2013 15,071.4 36.60 $439.7 6.9
Vested and expected to vest at June 30, 2013 12,904.1 39.44 $339.7 6.1
Exercisable at June 30, 2013 8,209.5 26.08 $325.8 5.9
(1) The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option.