Estee Lauder 2013 Annual Report Download - page 178

176 THE EST{E LAUDER COMPANIES INC.
NOTE 17— ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The components of Accumulated OCI (“AOCI”) included in the accompanying consolidated balance sheets consist of
the following:
YEAR ENDED JUNE 30 2013 2012 2011
(In millions)
Net unrealized investment gains (losses), beginning of year $ 0.5 $ 0.5 $ 0.2
Unrealized investment gains (losses) 0.4 0.1 0.4
Benefit (provision) for deferred income taxes (0.1) (0.1) (0.1)
Net unrealized investment gains, end of year 0.8 0.5 0.5
Net derivative instruments, beginning of year 17.4 (0.7) 14.3
Gain (loss) on derivative instruments 10.3 40.2 (38.0)
Benefit (provision) for deferred income taxes on derivative instruments (3.6) (14.3) 13.4
Reclassification to earnings during the year:
Foreign currency forward contracts (8.8) (11.7) 15.1
Settled interest rate-related derivatives (0.3) (0.3) (0.3)
Benefit (provision) for deferred income taxes on reclassification 3.3 4.2 (5.2)
Net derivative instruments, end of year 18.3 17.4 (0.7)
Net pension and post-retirement adjustments, beginning of year (293.5) (199.0) (217.6)
Changes in plan assets and benefit obligations:
Net actuarial gains (losses) recognized 92.8 (176.9) 30.7
Net prior service credit (cost) recognized — 2.0 (10.6)
Translation adjustments 3.5 7.6 (16.4)
Benefit (provision) for deferred income taxes (36.8) 60.4 (5.9)
Amortization of amounts included in net periodic benefit cost:
Net actuarial (gains) losses 28.9 14.7 26.3
Net prior service cost (credit) 4.3 4.3 3.1
Net transition asset (obligation) (0.1) — —
Benefit (provision) for deferred income taxes on reclassification (12.8) (6.6) (8.6)
Net pension and post-retirement adjustments, end of year (213.7) (293.5) (199.0)
Cumulative translation adjustments, beginning of year 62.7 216.9 6.4
Translation adjustments (24.5) (156.6) 213.2
Benefit (provision) for deferred income taxes (1.1) 2.4 (2.7)
Cumulative translation adjustments, end of year 37.1 62.7 216.9
Accumulated other comprehensive income (loss) $(157.5) $(212.9) $ 17.7
2
013
$
0
.
5
0
.
4
(0.1
)
0
.
8
1
7
.4
10
.
3
(
3.6
)
(8.8
)
(
0.3
)
3
.
3
1
8.
3
(
293.5
)
9
2.
8
—
3
.
5
(
36.8
)
28.
9
4.
3
(
0.1
)
(
12.8
)
(
213.7
)
6
2.
7
(24.5
)
(
1.1
)
3
7.
1
$
(157.5
)
Of the $18.3 million, net of tax, derivative instrument gain
recorded in AOCI at June 30, 2013, $10.9 million in gains,
net of tax, related to foreign currency forward contracts,
which the Company will reclassify to earnings through
March 2015. Also included in the net derivative instru-
ment gain recorded in AOCI was $7.9 million, net of tax,
related to the October 2003 gain from the settlement of
the treasury lock agreements upon the issuance of the
Company’s 2033 Senior Notes, which is being reclassified
to earnings as an offset to interest expense over the life of
the debt. These gains were partially offset by $0.5 million,
net of tax, related to a loss from the settlement of a series
of forward-starting interest rate swap agreements upon
the issuance of the Company’s 2037 Senior Notes, which
is being reclassified to earnings as an addition to interest
expense over the life of the debt.
Refer to Note 12 — Pension, Deferred Compensation and
Post-retirement Benefit Plans for the discussion regarding
the net pension and post-retirement adjustments.