Estee Lauder 2014 Annual Report Download - page 103

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THE EST{E LAUDER COMPANIES INC. 101
The following is a summary of cash dividends declared per share on the Company’s Class A and Class B Common Stock
during the year ended June 30, 2014:
Date Declared Record Date Payable Date Amount per Share
August 14, 2013 August 30, 2013 September 16, 2013 $.18
October 30, 2013 November 29, 2013 December 16, 2013 $.20
February 4, 2014 February 28, 2014 March 17, 2014 $.20
May 1, 2014 May 30, 2014 June 16, 2014 $.20
On August 14, 2014, a dividend was declared in the
amount of $.20 per share on the Company’s Class A and
Class B Common Stock. The dividend is payable in cash
on September 15, 2014 to stockholders of record at the
close of business on August 29, 2014.
NOTE 15—STOCK PROGRAMS
As of June 30, 2014, the Company has two active equity
compensation plans which include the Amended and
Restated Fiscal 2002 Share Incentive Plan (the “Fiscal
2002 Plan”) and the Non-Employee Director Share Incen-
tive Plan (collectively, the “Plans”). These Plans currently
provide for the issuance of 66,206,200 shares of Class A
Common Stock, which consist of shares originally pro-
vided for and shares transferred to the Fiscal 2002 Plan
from other inactive plans and employment agreements, to
be granted in the form of stock-based awards to key
employees, consultants and non-employee directors of
the Company. As of June 30, 2014, approximately
14,893,900 shares of Class A Common Stock were
reserved and available to be granted pursuant to these
Plans. The Company may satisfy the obligation of its
stock-based compensation awards with either new or
treasury shares. The Company’s equity compensation
awards include stock options, performance share units
(“PSU”), restricted stock units (“RSU”), performance
share units based on total stockholder return, market
share units (“MSU”) and share units.
Total stock-based compensation expense is attributable
to the granting of, and the remaining requisite service
periods of stock options, PSUs, RSUs, PSUs based on total
stockholder return, MSUs and share units. Stock-based
compensation expense and related income tax benefits
are as follows:
YEAR ENDED JUNE 30 2014 2013 2012
(In millions)
Compensation expense $152.6 $145.8 $124.7
Income tax benefit 50.2 47.6 41.1
20142014
$152.6$152.6
50.250.2
As of June 30, 2014, the total unrecognized compensa-
tion cost related to nonvested stock-based awards was
$101.8 million and the related weighted-average period
over which it is expected to be recognized is approxi-
mately 2 years.
Stock Options
A summary of the Company’s stock option programs as of June 30, 2014 and changes during the fiscal year then ended,
is presented below:
Aggregate Weighted-Average
Weighted-Average Intrinsic Value(1) Contractual Life
Shares Exercise Price Per Share (in millions) Remaining in Years
(Shares in thousands)
Outstanding at June 30, 2013 15,071.4 $36.60
Granted at fair value 1,864.9 67.42
Exercised (2,695.4) 31.49
Expired (16.7) 42.73
Forfeited (96.4) 54.80
Outstanding at June 30, 2014 14,127.8 41.51 $462.7 6.5
Vested and expected to vest at June 30, 2014
14,000.7 41.32 $461.2 6.5
Exercisable at June 30, 2014 9,248.2 31.77 $393.0 5.6
(1) The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option.