Estee Lauder 2015 Annual Report Download - page 99

96 THE EST{E LAUDER COMPANIES INC.
NOTE 9 — OTHER ACCRUED LIABILITIES
Other accrued liabilities consist of the following:
JUNE 30 2015 2014
(In millions)
Advertising, merchandising and sampling $ 293.8 $ 301.7
Employee compensation 463.3 468.2
Payroll and other taxes 142.0 161.2
Accrued income taxes 96.9 113.6
Other 474.4 469.1
$1,470.4 $1,513.8
NOTE 10—DEBT
The Company’s current and long-term debt and available fi nancing consist of the following:
Available fi nancing
Debt at June 30 at June 30, 2015
2015 2014 Committed Uncommitted
(In millions)
4.375% Senior Notes, due June 15, 2045 (“2045 Senior Notes”) $ 294.0 $— $— $—
3.70% Senior Notes, due August 15, 2042 (“2042 Senior Notes”) 249.0 249.0 — —
6.00% Senior Notes, due May 15, 2037 (“2037 Senior Notes”) 296.6 296.6 — —
5.75% Senior Notes, due October 15, 2033 (“2033 Senior Notes”) 197.9 197.8 — —
2.35% Senior Notes, due August 15, 2022 (“2022 Senior Notes”) 249.6 249.8 — —
5.55% Senior Notes, due May 15, 2017 (“2017 Senior Notes”) 313.9 321.1 — —
Commercial paper — — — 1,000.0
Loan participation notes — — — 150.0
Other long-term borrowings 6.5 10.4 — —
Other current borrowings 29.8 18.4 — 163.0
Revolving credit facility — — 1,000.0 —
1,637.3 1,343.1 $1,000.0 $1,313.0
Less current debt including current maturities (29.8) (18.4)
$1,607.5 $1,324.7
As of June 30, 2015, the Company’s long-term debt consisted of the following:
Unamortized Interest rate
Debt swap Semi-annual
Notes Issue Date Price Yield Principal Discount adjustments interest payments
($ in millions)
2045 Senior Notes
(1)
June 2015 97.999% 4.497% $300.0 $(6.0) $ — June 15/ December 15
2042 Senior Notes
(2)
August 2012 99.567 3.724 250.0 (1.0) — February 15/August 15
2037 Senior Notes
(3)
May 2007 98.722 6.093 300.0 (3.4) — May 15/November 15
2033 Senior Notes
(4)
September 2003 98.645 5.846 200.0 (2.1) — April 15/October 15
2022 Senior Notes
(2)
August 2012 99.911 2.360 250.0 (0.2) (0.2) February 15/August 15
2017 Senior Notes May 2007 99.845 5.570 300.0 (0.1) 14.0 May 15/November 15
(1) In April and May 2015, in anticipation of the issuance of the 2045 Senior Notes, the Company entered into a series of forward-starting interest rate
swap agreements on a notional amount totaling $300.0 million at a weighted-average all-in rate of 2.38%. The forward-starting interest rate swap
agreements were settled upon the issuance of the new debt and the Company recognized a gain in OCI of $17.5 million that will be amortized
against interest expense over the life of the 2045 Senior Notes. As a result of the forward-starting interest rate swap agreements, the debt discount
and debt issuance costs, the effective interest rate on the 2045 Senior Notes will be 4.216% over the life of the debt.
(2) In September 2012, the Company used the net proceeds of the 2022 Senior Notes and 2042 Senior Notes to redeem the $230.1 million principal
amount of its 7.75% Senior Notes due November 1, 2013 at a price of 108% of the principal amount and recorded a pre-tax expense on the
extinguishment of debt of $19.1 million representing the call premium of $18.6 million and the pro-rata write-off of $0.5 million of issuance costs
and debt discount. In June 2015, the Company entered into interest rate swap agreements with a notional amount totaling $250.0 million to
effectively convert the fi xed rate interest on its outstanding 2022 Senior Notes to variable interest rates based on three-month LIBOR plus a margin.