Estee Lauder 2009 Annual Report Download - page 92

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 117 of this report.
YEAR ENDED OR AT JUNE 30 2009(a) 2008 2007 2006(b) 2005(c)
(In millions, except per share data)
STATEMENT OF EARNINGS DATA:
Net sales $7,323.8 $7,910.8 $7,037.5 $6,463.8 $6,280.0
Gross profi t 5,442.2 5,914.0 5,262.7 4,777.2 4,677.2
Operating income 418.4 810.7 749.9 619.6 726.8
Interest expense, net(d) 75.7 66.8 38.9 23.8 13.9
Earnings before income taxes, minority interest,
discontinued operations and accounting change 342.7 743.9 711.0 595.8 712.9
Provision for income taxes 115.9 259.9 255.2 259.7 293.7
Minority interest, net of tax (8.4) (10.2) (7.1) (11.6) (9.3)
Net earnings from continuing operations 218.4 473.8 448.7 324.5 409.9
Discontinued operations, net of tax(e) — — 0.5 (80.3) (3.8)
Net earnings 218.4 473.8 449.2 244.2 406.1
CASH FLOW DATA:
Net cash fl ows provided by operating activities $ 696.0 $ 690.1 $ 661.6 $ 709.8 $ 478.1
Net cash fl ows used for investing activities (339.5) (478.5) (373.8) (303.2) (237.0)
Net cash fl ows provided by (used for) fi nancing activities 125.8 (78.1) (411.6) (594.6) (300.4)
PER SHARE DATA:
Net earnings per common share from
continuing operations(e):
Basic $ 1.11 $ 2.44 $ 2.20 $ 1.51 $ 1.82
Diluted $ 1.10 $ 2.40 $ 2.16 $ 1.49 $ 1.80
Net earnings per common share:
Basic $ 1.11 $ 2.44 $ 2.20 $ 1.14 $ 1.80
Diluted $ 1.10 $ 2.40 $ 2.16 $ 1.12 $ 1.78
Weighted average common shares outstanding(f):
Basic 196.3 193.9 204.3 215.0 225.3
Diluted 197.7 197.1 207.8 217.4 228.6
Cash dividends declared per common share $ .55 $ .55 $ .50 $ .40 $ .40
BALANCE SHEET DATA:
Working capital $1,453.3 $1,088.0 $ 738.7 $ 738.7 $ 804.9
Total assets 5,176.6 5,011.2 4,125.7 3,784.1 3,885.8
Total debt(d) 1,421.4 1,196.9 1,088.5 521.5 714.7
Stockholders’ equity(f) 1,640.0 1,653.2 1,199.0 1,622.3 1,692.8
(a) Fiscal 2009 results included $61.7 million, after tax, or $.31 per diluted share related to total charges associated with restructuring activities.
(b) Fiscal 2006 results included $93.0 million, after tax, or $.43 per diluted share in special charges related to our cost savings initiative and tax-related matters. Included in
the charges was an operating expense charge of $92.1 million, equal to $.27 per diluted common share related to the cost savings initiative. The results also included a
special tax charge related to a settlement with the Internal Revenue Service regarding an examination of our consolidated Federal income tax returns for fi scal years 1998
through 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
provision and a corresponding decrease in fi scal 2006 net earnings of approximately $46 million, or approximately $.21 per diluted common share. During the fourth
quarter 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 of the related aggregate tax impact, resulting in a favorable adjustment of 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
favorable 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 diluted common share.
(c) 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 of
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 ended
June 30, 2005, which included an incremental tax charge of approximately $28 million, equal to $.12 per diluted common share.
(d) In November 2008, we issued and sold $300.0 million of 7.75% Senior Notes due November 1, 2013 in a public offering. We used the net proceeds of this offering to
repay then-outstanding commercial paper balances upon their maturity. In May 2007, we issued and sold $300.0 million of 5.55% Senior Notes due May 15, 2017 and
$300.0 million of 6.00% Senior Notes, due May 15, 2037 in a public offering. We used the net proceeds of this offering to repay long-term commercial paper, which was
used to fund our accelerated stock repurchase program, and to pay transaction fees and expenses related to this offering.
(e) In April 2006, we completed the sale of certain assets and operations of the reporting unit that marketed and sold Stila brand products. As a result, all consolidated
statements of earnings information in the consolidated fi nancial statements and footnotes for all periods presented have been restated for comparative purposes to refl ect
those reporting units as discontinued operations.
(f) 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
accelerated stock repurchase program with a fi nancial counterparty.
THE EST{E LAUDER COMPANIES INC. 91
SELECTED FINANCIAL DATA