Estee Lauder 2015 Annual Report Download - page 60

THE EST{E LAUDER COMPANIES INC. 57
SELECTED FINANCIAL DATA
The table below summarizes selected financial information. For further information, refer to the audited consolidated
financial statements and the notes thereto beginning on page 80 of this report.
YEAR ENDED OR AT JUNE 30 2015 2014(a) 2013(a) 2012(a) 2011(a)
(In millions, except per share data)
STATEMENT OF EARNINGS DATA:
Net sales(b) $10,780.4 $10,968.8 $10,181.7 $9,713.6 $8,810.0
Gross profit 8,679.8 8,810.6 8,155.8 7,717.8 6,873.1
Operating income(b) (c) 1,606.3 1,827.6 1,526.0 1,311.7 1,089.4
Interest expense 60.0 59.4 63.1 66.5 69.2
Interest and investment income, net 14.3 8.6 8.3 5.4 5.3
Interest expense on debt extinguishment(d) — — 19.1 — —
Other income(e) — — 23.1 10.5 —
Earnings before income taxes 1,560.6 1,776.8 1,475.2 1,261.1 1,025.5
Provision for income taxes 467.2 567.7 451.4 400.6 321.7
Net earnings 1,093.4 1,209.1 1,023.8 860.5 703.8
Net earnings attributable to noncontrolling interests (4.5) (5.0) (4.0) (3.6) (3.0)
Net earnings attributable to The Estée Lauder
Companies Inc. 1,088.9 1,204.1 1,019.8 856.9 700.8
CASH FLOW DATA:
Net cash flows provided by operating activities $ 1,943.3 $ 1,535.2 $ 1,226.3 $1,126.7 $1,027.0
Net cash flows used for investing activities (1,616.2) (511.6) (465.5) (428.3) (606.9)
Net cash flows used for financing activities (894.8) (856.9) (611.5) (585.1) (313.1)
PER SHARE DATA:
Net earnings attributable to The Estée Lauder
Companies Inc. per common share:
Basic $ 2.87 $ 3.12 $ 2.63 $ 2.20 $ 1.78
Diluted(a)–(d) $ 2.82 $ 3.06 $ 2.58 $ 2.16 $ 1.74
Weighted-average common shares outstanding:
Basic 379.3 386.2 387.6 388.7 394.0
Diluted 385.7 393.1 394.9 397.0 402.4
Cash dividends declared per common share $ .92 $ .78 $ 1.08 $ .525 $ .375
BALANCE SHEET DATA:
Working capital $ 2,332.9 $ 2,768.5 $ 2,362.6 $1,729.3 $1,743.2
Total assets 8,239.2 7,868.8 7,145.2 6,593.0 6,273.9
Total debt(d) (f) (g) 1,637.3 1,343.1 1,344.3 1,288.1 1,218.1
Stockholders’ equity—The Estée Lauder Companies Inc. 3,643.2 3,854.9 3,286.9 2,733.2 2,629.4
(a) Fiscal 2014 results included $(1.8) million, after tax, related to total adjustments associated with restructuring activities. Fiscal 2013 results included $11.7
million, after tax, or $.03 per diluted share related to total charges associated with restructuring activities. Fiscal 2012 results included $44.1 million, after
tax, or $.11 per diluted share related to total charges associated with restructuring activities. Fiscal 2011 results included $41.7 million, after tax, or $.10 per
diluted share related to total charges associated with restructuring activities.
(b) As a result of our July 2014 SMI rollout, approximately $178 million of accelerated orders were recorded as net sales and $127 million as operating
income in fiscal 2014 that would have occurred in the fiscal 2015 first quarter, equal to approximately $.21 per diluted common share.
(c) During the third quarter of fiscal 2015, we recorded a $5.3 million charge, on a before and after tax basis, related to the remeasurement of net monetary
assets in Venezuela, equal to $.01 per diluted common share. During the third quarter of fiscal 2014, we recorded a $38.3 million charge, on a before and
after tax basis, related to the remeasurement of net monetary assets in Venezuela, equal to $.10 per diluted common share.
(d) In September 2012, we redeemed the $230.1 million principal amount of our 7.75% Senior Notes due November 1, 2013 (“2013 Senior Notes”) at a
price of 108% of the principal amount. We recorded a pre-tax expense on the extinguishment of debt of $19.1 million ($12.2 million after tax, or $.03 per
diluted share) representing the call premium of $18.6 million and the pro-rata write-off of $0.5 million of issuance costs and debt discount.
(e) In December 2012, we amended the agreement related to the August 2007 sale of Rodan + Fields (a brand then owned by us) to receive a fixed amount
in lieu of future contingent consideration and other rights. As a result of the original and amended terms of the agreement, we recognized $23.1 million as
other income in our consolidated statement of earnings. In November 2011, we settled a commercial dispute with third parties that was outside our normal
operations. In connection therewith, we received a $10.5 million cash payment, which has been classified as other income in our consolidated statement
of earnings.
(f) In August 2012, we issued $250.0 million of 2.35% Senior Notes due August 15, 2022 and $250.0 million of 3.70% Senior Notes due August 15, 2042
in a public offering. We used the net proceeds of the offering to redeem the 2013 Senior Notes and for general corporate purposes.
(g) In June 2015, we issued $300.0 million of 4.375% Senior Notes due June 15, 2045 in a public offering. We are using the net proceeds of the offering
for general corporate purposes.