Estee Lauder 2015 Annual Report Download - page 116

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THE EST{E LAUDER COMPANIES INC. 113
As of June 30, 2015, there were no anti-dilutive stock options to be excluded from the computation of diluted EPS. As of
June 30, 2014 and 2013, 0.1 million outstanding stock options were excluded from the computation of diluted EPS
because their inclusion would be anti-dilutive. As of June 30, 2015, 2014 and 2013, 0.6 million, 0.5 million and 0.5 million,
respectively, of PSUs have been excluded from the calculation of diluted EPS because the number of shares ultimately
issued is contingent on the achievement of certain performance targets of the Company, as discussed in Note 16 —
Stock Programs.
NOTE 18
—
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The components of AOCI included in the accompanying consolidated balance sheets consist of the following:
YEAR ENDED JUNE 30 2015 2014 2013
(In millions)
Net unrealized investment gains (losses), beginning of year $ 1.4 $ 0.8 $ 0.5
Unrealized investment gains (losses) 0.5 0.9 0.4
Benefit (provision) for deferred income taxes (0.2) (0.3) (0.1)
Reclassification to earnings during the year(1) (2.4) — —
Benefit (provision) for deferred income taxes on reclassification(2) 0.8 — —
Translation adjustments (0.2) — —
Net unrealized investment gains (losses), end of year (0.1) 1.4 0.8
Net derivative instruments, beginning of year (0.9) 18.3 17.4
Gain (loss) on derivative instruments 107.8 (22.2) 10.3
Benefit (provision) for deferred income taxes (38.3) 7.9 (3.6)
Reclassification to earnings during the year:
Foreign currency forward contracts(3) (37.8) (7.2) (8.8)
Settled interest rate-related derivatives(4) (0.4) (0.3) (0.3)
Benefit (provision) for deferred income taxes on reclassification(2) 13.5 2.6 3.3
Net derivative instruments, end of year 43.9 (0.9) 18.3
Net pension and post-retirement adjustments, beginning of year (233.0) (213.7) (293.5)
Changes in plan assets and benefit obligations:
Net actuarial gains (losses) recognized (48.3) (42.1) 92.8
Net prior service credit (cost) recognized — 6.7 —
Translation adjustments 15.8 (10.2) 3.5
Benefit (provision) for deferred income taxes
13.2 10.4 (36.8)
Amortization, settlements and curtailments included in net periodic benefit cost
(5)
:
Net actuarial (gains) losses
21.2 18.0 28.9
Net prior service cost (credit) 3.3 4.4 4.3
Net transition asset (obligation) — — (0.1)
Benefit (provision) for deferred income taxes on reclassification (7.2) (6.5) (12.8)
Net pension and post-retirement adjustments, end of year (235.0) (233.0) (213.7)
Cumulative translation adjustments, beginning of year 132.2 37.1 62.7
Translation adjustments (319.5) 96.7 (24.5)
Benefit (provision) for deferred income taxes (3.0) (1.6) (1.1)
Cumulative translation adjustments, end of year (190.3) 132.2 37.1
Accumulated other comprehensive income (loss) $(381.5) $(100.3) $(157.5)
(1) Amounts recorded in Interest income and investment income, net in the accompanying consolidated statements of earnings.
(2) Amounts recorded in Provision for income taxes in the accompanying consolidated statements of earnings.
(3) For the year ended June 30, 2015, $9.1 million and $28.7 million were recorded in Cost of Sales and Selling, general and administrative expenses,
respectively, in the accompanying consolidated statements of earnings. For the year ended June 30, 2014, $4.5 million and $2.7 million were
recorded in Cost of Sales and Selling, general and administrative expenses, respectively, in the accompanying consolidated statements of earnings.
(4) Amounts recorded in Interest expense in the accompanying consolidated statements of earnings.
(5) See Note 13 — Pension, Deferred Compensation and Post-Retirement Benefit Plans for additional information.