Estee Lauder 2014 Annual Report Download - page 89

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THE EST{E LAUDER COMPANIES INC. 87
In response, the Company filed an appeal with the Spain
Supreme Court. Based on the decision of the National
Appellate Court, the Company established a reserve
during fiscal 2012 which resulted in an increase to the
provision for income taxes equal to the $3.8 million
exposure, net of tax. Separately, during fiscal 2012, the
Company’s subsidiary in Spain made cash payments total-
ing $4.1 million, at current exchange rates, to the Spain
tax authority as an advance deposit to limit the additional
interest that would be due to the Spain tax authority
should it receive an unfavorable decision from the Spain
Supreme Court. During the second quarter of fiscal 2014,
the Spain Supreme Court notified the Company that its
appeal was denied. Since this represents the final out-
come of the matter, the Company applied the advance
deposit to settle the assessment and previously estab-
lished reserve.
During fiscal 2014, the Company concluded various
state, local and foreign income tax audits and examina-
tions while several other matters, including those noted
above, were initiated or remained pending. On the basis
of the information available in this regard as of June 30,
2014, the Company does not expect any significant
changes to the total amount of unrecognized tax benefits
within the next 12 months.
The tax years subject to examination vary depending
on the tax jurisdiction. As of June 30, 2014, the following
tax years remain subject to examination by the major tax
jurisdictions indicated:
Major Jurisdiction Open Fiscal Years
Belgium 2010–2014
Canada 2007–2014
China 2010–2014
France 2012–2014
Germany 2004–2014
Hong Kong 2008–2014
Japan 2012–2014
Korea 2014
Russia 2013–2014
Spain 2012–2014
Switzerland 2011–2014
United Kingdom 2013–2014
United States 2013–2014
State of California 2009–2014
State of New York 2013–2014
The Company is also subject to income tax examinations
in numerous other state, local and foreign jurisdictions.
The Company believes that its tax reserves are adequate
for all years subject to examination.
NOTE 8
—
OTHER ACCRUED LIABILITIES
Other accrued liabilities consist of the following:
JUNE 30 2014 2013
(In millions)
Advertising, merchandising
and sampling $ 301.7 $ 318.6
Employee compensation 468.2 433.3
Payroll and other taxes 161.2 135.7
Accrued income taxes 113.6 81.3
Other 469.1 465.7
$1,513.8 $1,434.6
20142014
$ 301.7$ 301.7
468.2468.2
161.2161.2
113.6113.6
469.1469.1
$1,513.8$1,513.8
NOTE 9
—
DEBT
The Company’s current and long-term debt and available financing consist of the following:
Available financing
Debt at June 30 at June 30, 2014
2014 2013 Committed Uncommitted
(In millions)
3.70% Senior Notes, due August 15, 2042 (“2042 Senior Notes”)
$ 249.0 $ 248.9 $ — $ —
6.00% Senior Notes, due May 15, 2037 (“2037 Senior Notes”)
296.6 296.5 — —
5.75% Senior Notes, due October 15, 2033 (“2033 Senior Notes”)
197.8 197.8 — —
2.35% Senior Notes, due August 15, 2022 (“2022 Senior Notes”)
249.8 249.8 — —
5.55% Senior Notes, due May 15, 2017 (“2017 Senior Notes”)
321.1 328.0 — —
Commercial paper — — — 1,000.0
Loan participation notes — — — 150.0
Other long-term borrowings 10.4 5.0 — —
Other current borrowings 18.4 18.3 — 199.8
Revolving credit facility — — 1,000.0 —
1,343.1 1,344.3 $1,000.0 $1,349.8
Less current debt including current maturities (18.4) (18.3)
$1,324.7 $1,326.0
20142014
$ 249.0$ 249.0
296.6296.6
197.8197.8
249.8249.8
321.1321.1
——
——
10.410.4
18.418.4
——
1,343.11,343.1
(18.4)(18.4)
$1,324.7$1,324.7