Estee Lauder 2008 Annual Report Download - page 108

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106 THE EST{E LAUDER COMPANIES INC.
As of June 30, 2008, 2007 and 2006, outstanding options to purchase 7.1 million, 6.0 million and 13.6 million shares,
respectively, of Class A Common Stock were not included in the computation of diluted EPS because their inclusion
would be anti-dilutive. As of June 30, 2008, 2007 and 2006, 0.2 million, 0.2 million and 0.1 million, respectively, of perfor-
mance share units 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 17.
NOTE 19
—
ACCUMULATED OTHER COMPREHENSIVE INCOME
The components of Accumulated other comprehensive income (“OCI”) included in the accompanying consolidated bal-
ance sheets consist of the following:
YEAR ENDED JUNE 30 2008 2007 2006
(In millions)
Net unrealized investment gains, beginning of year $ 0.8 $ 0.5 $ 0.4
Unrealized investment gains (losses) (0.9) 0.5 0.1
Benefi t (provision) for deferred income taxes 0.4 (0.2) —
Net unrealized investment gains, end of year 0.3 0.8 0.5
Net derivative instruments, beginning of year 8.2 10.3 12.0
Gain (loss) on derivative instruments (4.7) (7.4) 5.2
Benefi t (provision) for deferred income taxes on derivative instruments 1.6 2.5 (1.7)
Reclassifi cation to earnings during the year 4.2 4.2 (8.3)
Benefi t (provision) for deferred income taxes on reclassifi cation (1.4) (1.4) 3.1
Net derivative instruments, end of year 7.9 8.2 10.3
Net minimum pension liability adjustments, beginning of year — (6.1) (36.0)
Minimum pension liability adjustments — (6.7) 41.4
Benefi t (provision) for deferred income taxes — 2.7 (11.5)
Adjustment to initially apply SFAS No. 158, net of tax — 10.1 —
Net minimum pension liability adjustments, end of year — — (6.1)
Net pension and post-retirement adjustments, beginning of year (67.4) — —
Adjustment to initially apply SFAS No. 158 — (98.7) —
Changes in plan assets and benefi t obligations:
Net actuarial gains (losses) recognized (38.2) — —
Net prior service credit (cost) recognized (34.0) — —
Translation adjustments (0.3) — —
Amortization of amounts included in net periodic benefi t cost:
Net actuarial (gains) losses 8.4 — —
Net prior service cost (credit) 1.0 — —
Net transition asset (obligation) 0.1 — —
Benefi t (provision) for deferred income taxes 21.6 31.3 —
Net pension and post-retirement adjustments, end of year (108.8) (67.4) —
Cumulative translation adjustments, beginning of year 113.1 60.0 33.0
Translation adjustments 103.7 53.1 27.0
Benefi t (provision) for deferred income taxes (5.4) — —
Cumulative translation adjustments, end of year 211.4 113.1 60.0
Accumulated other comprehensive income $ 110.8 $ 54.7 $ 64.7