Estee Lauder 2012 Annual Report Download - page 162

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160 THE EST{E LAUDER COMPANIES INC.
NOTE 19
—
STATEMENT OF CASH FLOWS
Supplemental cash flow information is as follows:
YEAR ENDED JUNE 30 2012 2011 2010
(In millions)
Cash:
Cash paid during the year for interest $ 75.0 $ 72.6 $106.0
Cash paid during the year for income taxes $326.4 $241.7 $265.2
Non-cash investing and financing activities:
Incremental tax benefit from the exercise of stock options $ (10.0) $ (20.0) $ (21.3)
Change in liability associated with acquisition of business $— $— $ 7.0
Capital lease obligations incurred $ 8.6 $ 1.0 $ 22.5
Interest rate swap derivative mark to market $— $ 8.7 $ 14.2
NOTE 20
—
SEGMENT DATA AND
RELATED INFORMATION
Reportable operating segments include components of
an enterprise about which separate financial information
is available that is evaluated regularly by the chief operat-
ing decision maker (the “Chief Executive”) in deciding
how to allocate resources and in assessing performance.
As a result of the similarities in the manufacturing, market-
ing and distribution processes for all of the Company’s
products, much of the information provided in the con-
solidated financial statements is similar to, or the same as,
that reviewed on a regular basis by the Chief Executive.
Although the Company operates in one business
segment, beauty products, management also evaluates
performance on a product category basis.
While the Company’s results of operations are also
reviewed on a consolidated basis, the Chief Executive
reviews data segmented on a basis that facilitates com-
parison to industry statistics. Accordingly, net sales, depre-
ciation and amortization, and operating income are
available with respect to the manufacture and distribution
of skin care, makeup, fragrance, hair care and other prod-
ucts. These product categories meet the definition of
operating segments and, accordingly, additional financial
data are provided below. The “other” segment includes
the sales and related results of ancillary products and ser-
vices that do not fit the definition of skin care, makeup,
fragrance and hair care.
Product category performance is measured based
upon net sales before returns associated with restructur-
ing activities, and earnings before income taxes, other
income, net interest expense, interest expense on debt
extinguishment and total charges associated with restruc-
turing activities. Returns and charges associated with
restructuring activities are not allocated to the product
categories because they result from activities that are
deemed a company-wide program to redesign the
Company’s organizational structure. The accounting poli-
cies for the Company’s reportable segments are the same
as those described in the summary of significant account-
ing policies, except for depreciation and amortization
charges, which are allocated, primarily, based upon net
sales. The assets and liabilities of the Company are man-
aged centrally and are reported internally in the same
manner as the consolidated financial statements; thus, no
additional information is produced for the Chief Executive
or included herein.