Estee Lauder 2015 Annual Report Download - page 117

114 THE EST{E LAUDER COMPANIES INC.
NOTE 19 — STATEMENT OF CASH FLOWS
Supplemental cash flow information is as follows:
YEAR ENDED JUNE 30 2015 2014 2013
(In millions)
Cash:
Cash paid during the year for interest $ 65.5 $ 66.0 $ 85.4
Cash paid during the year for income taxes $417.4 $534.7 $500.2
Non-cash investing and financing activities:
Incremental tax benefit from the exercise of stock options $ (10.1) $ (8.1) $ (9.8)
Capital lease obligations incurred $ 8.7 $ 12.9 $ 5.0
Pending purchase price true-up payment $ 10.6 $— $—
Property, plant and equipment accrued but unpaid $ 28.6 $ 30.5 $ 28.3
Note receivable $— $ — $ (16.8)
NOTE 20 — SEGMENT DATA AND
RELATED INFORMATION
Reportable operating segments include components of
an enterprise about which separate financial information
is available that is evaluated regularly by the chief operat-
ing decision maker (the “Chief Executive”) in deciding
how to allocate resources and in assessing performance.
As a result of the similarities in the manufacturing, market-
ing and distribution processes for all of the Company’s
products, much of the information provided in the consol-
idated financial statements is similar to, or the same as,
that reviewed on a regular basis by the Chief Executive.
Although the Company operates in one business segment,
beauty products, management also evaluates performance
on a product category basis.
While the Company’s results of operations are also
reviewed on a consolidated basis, the Chief Executive
reviews data segmented on a basis that facilitates com-
parison to industry statistics. Accordingly, net sales, depre-
ciation and amortization, and operating income are
available with respect to the manufacture and distribution
of skin care, makeup, fragrance, hair care and other prod-
ucts. These product categories meet the definition of
operating segments and, accordingly, additional financial
data are provided below. The “other” segment includes
the sales and related results of ancillary products and
services that do not fit the definition of skin care, makeup,
fragrance and hair care.
Product category performance is measured based
upon net sales before returns associated with restructur-
ing activities, and earnings before income taxes, other
income, interest expense, interest income and investment
income, net, interest expense on debt extinguishment and
total charges associated with restructuring activities.
Returns and charges associated with restructuring activi-
ties are not allocated to the product categories because
they result from activities that are deemed a company-
wide program to redesign the Company’s organizational
structure. The accounting policies for the Company’s
reportable segments are the same as those described in
the summary of significant accounting policies, except
for depreciation and amortization charges, which are
allocated, primarily, based upon net sales. The assets and
liabilities of the Company are managed centrally and are
reported internally in the same manner as the consoli-
dated financial statements; thus, no additional information
is produced for the Chief Executive or included herein.