Estee Lauder 2015 Annual Report Download - page 112

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THE EST{E LAUDER COMPANIES INC. 109
Other Income
During the fiscal 2013 second quarter, the Company
amended the agreement related to the August 2007 sale
of Rodan + Fields (a brand then owned by the Company)
to receive a fixed amount in lieu of future contingent con-
sideration and other rights. As a result of the original and
amended terms of this agreement, the Company recog-
nized $23.1 million as other income in the consolidated
statement of earnings during fiscal 2013.
NOTE 15
—
COMMON STOCK
As of June 30, 2015, the Company’s authorized common
stock consists of 1,300 million shares of Class A Common
Stock, par value $.01 per share, and 304 million shares of
Class B Common Stock, par value $.01 per share. Class B
Common Stock is convertible into Class A Common
Stock, in whole or in part, at any time and from time to
time at the option of the holder, on the basis of one share
of Class A Common Stock for each share of Class B
Common Stock converted. Holders of the Company’s
Class A Common Stock are entitled to one vote per share
and holders of the Company’s Class B Common Stock are
entitled to ten votes per share.
Information about the Company’s common stock out-
standing is as follows:
Class A Class B
(Shares in thousands)
Balance at June 30, 2012 237,119.5 151,778.1
Acquisition of treasury stock (6,718.8) —
Conversion of Class B to Class A 2,800.0 (2,800.0)
Stock-based compensation 5,815.5 —
Balance at June 30, 2013 239,016.2 148,978.1
Acquisition of treasury stock (9,602.2) —
Conversion of Class B to Class A 250.0 (250.0)
Stock-based compensation 4,492.4 —
Balance at June 30, 2014 234,156.4 148,728.1
Acquisition of treasury stock (12,397.1) —
Conversion of Class B to Class A 1,682.0 (1,682.0)
Stock-based compensation 4,394.9 —
Balance at June 30, 2015 227,836.2 147,046.1
The Company is authorized by the Board of Directors to
repurchase up to 216.0 million shares of Class A Common
Stock in the open market or in privately negotiated
transactions, depending on market conditions and other
factors.
As of June 30, 2015, the cumulative total of
acquired
shares pursuant to the authorization was 187.6
million, reducing the remaining authorized share repur-
chase balance to 28.4 million. Subsequent to June 30,
2015 and as of August 14, 2015, the Company purchased
approximately 2.0 million additional shares of Class A
Common Stock for $175.0 million pursuant to its share
repurchase program.
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, 2015:
Date Declared Record Date Payable Date Amount per Share
August 14, 2014 August 29, 2014 September 15, 2014 $.20
November 3, 2014 November 28, 2014 December 15, 2014 $.24
February 4, 2015 February 27, 2015 March 16, 2015 $.24
May 4, 2015 May 29, 2015 June 15, 2015 $.24
On August 14, 2015, a dividend was declared in the amount of $.24 per share on the Company’s Class A and Class B
Common Stock. The dividend is payable in cash on September 15, 2015 to stockholders of record at the close of business
on August 31, 2015.
NOTE 16
—
STOCK PROGRAMS
As of June 30, 2015, 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 Incen-
tive 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 pro-
vided for and shares transferred to the Fiscal 2002 Plan
from other inactive plans and employment agreements, 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, 2015, approximately
11,124,800 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
shares. The Company’s equity compensation awards
include stock options, performance share units (“PSU”),
restricted stock units (“RSU”), performance share units
based on total stockholder return, market share units
(“MSU”) and share units.