Estee Lauder 2008 Annual Report Download - page 57

The table below summarizes selected fi nancial information. For further information
,
refer to the audited consolidated
fi
nancial statements and the notes thereto beginning on page 76 of this report
.
YEAR ENDED OR AT
J
UNE
30
2
008
2007 2006
(a) 2
005
(b)
2
004
(
In millions, except per s
h
are
d
ata)
S
TATEMENT
O
F EARNIN
GS
DATA
:
Ne
t
sa
l
es
$7
,
910.
8
$7,037.5 $6,463.8 $6,280.0 $5,741.5
Gross
p
rofi t 5
,
914.
0
5,262.7 4,777.2 4,677.2 4,277.2
O
perating income 8
1
0.
7
749.9 619.6 726.8 648.9
Interest ex
p
ense, net
(
c
)
66
.
8
38.9 23.8 13.9 27.1
Earnings before income taxes, minorit
y
interest,
d
iscontinue
d
operations an
d
accounting c
h
ange 743.
9
711.0 595.8 712.9 621.8
Pr
o
vi
s
i
o
n f
o
r in
co
m
e
t
a
x
es
25
9
.
9
255.2 259.7 293.7 234.4
Minorit
y
interest, net of tax
(
10.2
)
(7.1) (11.6) (9.3) (8.9)
Net earnings
f
rom continuing operations 473.
8
448.7 324.5 409.9 378.5
Discontinued o
p
erations, net of tax
(d)
—
0.5 (80.3) (3.8) (36.4)
Net earnin
g
s 47
3
.
8
449.2 244.2 406.1 342.1
C
A
S
H FL
O
W DATA:
Net cash fl ows provided b
y
operating activities
$
690.
1
$ 661.6 $ 709.8 $ 478.1 $ 673.0
Net cash fl ows used for investin
g
activities
(
478.5
)
(373.8) (303.2) (237.0) (213.7)
Net cash
fl
ows used for
fi
nancing activities
(
78.1
)
(411.6) (594.6) (300.4) (216.0)
PER
S
HARE DATA:
Net earnin
g
s per common share from
c
ont
i
nu
i
ng operat
i
on
s
(
d
)
:
Bas
i
c
$
2.4
4
$ 2.20 $ 1.51 $ 1.82 $ 1.66
Dil
u
t
e
d
$
2.4
0
$ 2.16 $ 1.49 $ 1.80 $ 1.64
Net earnings per common s
h
are:
Bas
i
c
$
2.4
4
$ 2.20 $ 1.14 $ 1.80 $ 1.50
Dil
u
t
e
d
$
2.4
0
$ 2.16 $ 1.12 $ 1.78 $ 1.48
Weig
h
te
d
average common s
h
ares outstan
d
ing
(
e
)
:
Bas
i
c
1
93.
9
204.3 215.0 225.3 228.2
Dil
u
t
e
d1
9
7.
1
207.8 217.4 228.6 231.6
Cas
h
d
ivi
d
en
d
s
d
eclare
d
per common s
h
are
$
.5
5
$ .50 $ .40 $ .40 $ .30
BALAN
C
E
S
HEET DATA:
Workin
g
capital $1
,
088.
0
$ 738.7 $ 738.7 $ 804.9 $ 877.2
T
o
t
a
l
asse
t
s
5
,
011.
2
4,125.7 3,784.1 3,885.8 3,708.1
Total
d
e
b
t
(
c
)
1
,
1
96.
9
1,088.5 521.5 714.7 535.3
Stockholders’ equit
y
(
e
)
1
,
653.
2
1,199.0 1,622.3 1,692.8 1,733.5
(a) Fiscal 2006 results included $93.0 million, after-tax, or $.43 per diluted share in special char
g
es related to our cost savin
g
s initiative and tax-related matters. Included in
t
he char
g
es was an operatin
g
expense char
g
e of $92.1 million, equal to $.27 per diluted common share related to the cost savin
g
s initiative. The results also included a
s
pecial tax charge related to a settlement with the Internal Revenue Service regarding an examination of our consolidated Federal income tax returns for
fi
scal
y
ears 1998
t
hrough 2001, and represents the aggregate earnings impact of the settlement through
fi
scal 2006. The settlement resulted in an increase to our
fi
scal 2006 income tax
p
rovision and a corresponding decrease in fi scal 2006 net earnings of approximatel
y
$46 million, or approximatel
y
$.21 per diluted common share. During the fourth
q
uarter of fi scal 2006, we completed the repatriation of foreign earnings through intercompany dividends under the provisions of the American Jobs Creation Act of 2004
(the “AJCA”). In connection with the repatriation, we updated the computation o
f
the related aggregate tax impact, resulting in a
f
avorable adjustment o
f
approximately
$
11 million, or approximately $.05 per diluted common share, to our initial tax charge of $35 million recorded in fi scal 2005. The tax settlement, coupled with the AJCA
f
avorable tax adjustment, resulted in a net increase to our fi scal 2006 income tax provision and a corresponding decrease in fi scal 2006 net earnings of approximately $35
million, or approximately
$
.16 per
d
ilute
d
common s
h
are
.
(b) In the fourth quarter of fi scal 2005, we announced plans to repatriate approximately $690 million of foreign earnings in fi scal year 2006, which included $500 million
o
f extraordinary intercompany dividends under the provisions of the AJCA. This action resulted in an aggregate tax charge of approximately $35 million in our fi scal year
e
nded June 30, 2005, which included an incremental tax charge of approximately $28 million, equal to $.12 per diluted share
.
(c) In May 2007, we issued and sold $300.0 million o
f
5.55% Senior Notes due May 15, 2017 and $300.0 million o
f
6.00% Senior Notes, due May 15, 2037 in a public
o
ff
ering. We used the net proceeds o
f
this o
ff
ering to repay long-term commercial paper, which was used to
f
und our accelerated stock repurchase program, and to pay
transaction
f
ees and expenses related to this o
ff
erin
g
.
(d) In April 2006, we completed the sale o
f
certain assets and operations o
f
the reporting unit that marketed and sold Stila brand products. In Februar
y
2004, we sold the
assets and operations o
f
our
f
ormer reporting unit that sold
j
an
e
brand products. As a result, all consolidated statements of earnings information in the consolidated fi nancial
s
tatements and footnotes for all periods presented has been restated for comparative purposes to refl ect those reporting units as discontinued operations.
(e) During
fi
scal 2007, we repurchased 22,461,642 shares of our outstanding common stock, of which 15,960,842 shares were purchased for $750.0 million through an
a
ccelerated stock repurchase program with a fi nancial counterpart
y.
THE EST{E LAUDER COMPANIES INC. 55
SELECTED FINANCIAL DATA