Estee Lauder 2008 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2008 Estee Lauder annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

YEAR ENDED JUNE 30 2008 2007 2006
(In millions)
Cash Flows from Operating Activities
Net earnings $ 473.8 $ 449.2 $ 244.2
Adjustments to reconcile net earnings to net cash fl ows from operating activities:
Depreciation and amortization 250.7 207.2 198.4
Deferred income taxes (115.6) 9.9 (74.3)
Minority interest, net of tax 10.2 7.1 11.6
Non-cash stock-based compensation 47.2 43.3 35.9
Excess tax benefi ts from stock-based compensation arrangements (1.1) (9.4) (6.7)
Loss on disposal of fi xed assets 12.5 13.4 13.2
Discontinued operations, net of tax — (0.5) 80.3
Other non-cash items 15.7 11.8 0.8
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable, net (86.5) (68.0) 14.6
Decrease (increase) in inventory and promotional merchandise, net (70.7) (70.8) 1.9
Decrease (increase) in other assets (5.7) (26.3) 7.0
Increase in accounts payable 17.1 46.4 9.1
Increase in accrued income taxes 122.6 44.9 63.5
Increase in other accrued liabilities 32.5 13.1 66.2
Increase (decrease) in other noncurrent liabilities (12.6) (4.0) 61.6
Net cash fl ows provided by operating activities of continuing operations 690.1 667.3 727.3
Net cash fl ows used for operating activities of discontinued operations — (5.7) (17.5)
Net cash fl ows provided by operating activities 690.1 661.6 709.8
Cash Flows from Investing Activities
Capital expenditures (357.8) (312.1) (260.6)
Capital expenditures of discontinued operations — — (0.6)
Acquisition of businesses, net of cash acquired (116.0) (61.2) (51.7)
Proceeds from divestitures — — 9.3
Proceeds from disposition of long-term investments — — 0.5
Purchases of long-term investments (4.7) (0.5) (0.1)
Net cash fl ows used for investing activities (478.5) (373.8) (303.2)
Cash Flows from Financing Activities
Increase (decrease) in short-term debt, net 54.8 (31.6) (82.0)
Proceeds from issuance of long-term debt, net — 590.6 —
Net settlement of interest rate derivatives — (11.1) —
Repayments and redemptions of long-term debt (5.9) (5.6) (97.8)
Net proceeds from employee stock transactions 117.3 154.1 67.3
Excess tax benefi ts from stock-based compensation arrangements 1.1 9.4 6.7
Payments to acquire treasury stock (129.6) (1,004.3) (400.5)
Dividends paid to stockholders (106.6) (103.6) (85.4)
Distributions made to minority holders of consolidated subsidiaries (9.2) (9.5) (2.9)
Net cash fl ows used for fi nancing activities (78.1) (411.6) (594.6)
Effect of Exchange Rate Changes on Cash and Cash Equivalents 14.5 8.9 3.3
Net Increase (Decrease) in Cash and Cash Equivalents 148.0 (114.9) (184.7)
Cash and Cash Equivalents at Beginning of Year 253.7 368.6 553.3
Cash and Cash Equivalents at End of Year $ 401.7 $ 253.7 $ 368.6
Supplemental disclosures of cash fl ow information (Note 20)
Cash paid during the year for:
Interest $ 74.1 $ 44.6 $ 33.8
Income Taxes $ 249.9 $ 199.6 $ 256.9
690.1
—
See notes to consolidated fi nancial statements.
THE EST{E LAUDER COMPANIES INC. 79
CONSOLIDATED STATEMENTS OF CASH FLOWS