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EQUITY
 3 Months Ended
Dec. 31, 2015
EQUITY  
EQUITY

 

NOTE 11 – EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Stockholders’ Equity – The Estée Lauder Companies Inc.

 

 

 

 

 

(In millions)

 

Common
Stock

 

Paid-in
Capital

 

Retained
Earnings

 

AOCI

 

Treasury
Stock

 

Total

 

Non-
controlling
Interests

 

Total
Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2015

 

$
5.7

 

$
2,871.6

 

$
7,004.1

 

$
(381.5

)

$
(5,856.7

)

$
3,643.2

 

$
11.1

 

$
3,654.3

 

Net earnings

 

—

 

—

 
755.5

 

—

 

—

 
755.5

 
3.7

 
759.2

 

Common stock dividends

 

—

 

—

 
(201.7

)

—

 

—

 
(201.7

)
(2.2

)
(203.9

)

Other comprehensive loss

 

—

 

—

 

—

 
(115.7

)

—

 
(115.7

)
(0.9

)
(116.6

)

Acquisition of treasury stock

 

—

 

—

 

—

 

—

 
(575.0

)
(575.0

)

—

 
(575.0

)

Stock-based compensation

 

—

 
147.8

 

—

 

—

 
(50.3

)
97.5

 

—

 
97.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2015

 

$
5.7

 

$
3,019.4

 

$
7,557.9

 

$
(497.2

)

$
(6,482.0

)

$
3,603.8

 

$
11.7

 

$
3,615.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following is a summary of quarterly cash dividends declared per share on the Company’s Class A and Class B Common Stock during the six months ended December 31, 2015:

 

 

 

 

 

 

 

 

Date Declared

 

Record Date

 

Payable Date

 

Amount per Share

 

 

 

 

 

 

 

August 14, 2015

 

August 31, 2015

 

September 15, 2015

 

$.24

October 30, 2015

 

November 30, 2015

 

December 15, 2015

 

$.30

 

On February 4, 2016, a dividend was declared in the amount of $.30 per share on the Company’s Class A and Class B Common Stock.  The dividend is payable in cash on March 15, 2016 to stockholders of record at the close of business on February 29, 2016.

 

Common Stock

 

During the six months ended December 31, 2015, the Company purchased 7.6 million shares of its Class A Common Stock for $627.8 million.

 

During the six months ended December 31, 2015, approximately 0.4 million shares of the Company’s Class B Common Stock were converted into the same amount of shares of the Company’s Class A Common Stock.

 

Subsequent to December 31, 2015 and through January 29, 2016, the Company repurchased approximately 0.9 million additional shares of its Class A Common Stock for $75.0 million pursuant to its share repurchase program.

 

Accumulated Other Comprehensive Income (Loss)

 

The following table represents changes in AOCI, net of tax, by component for the six months ended December 31, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net

 

Net

 

Amounts

 

 

 

 

 

 

 

 

 

 

Unrealized

 

Derivative

 

Included in

 

 

 

 

 

 

 

 

 

 

Investment

 

Instrument

 

Net Periodic

 

 

Translation

 

 

 

 

(In millions)

 

Gain (Loss)

 

Gain (Loss)

 

Benefit Cost

 

 

Adjustments

 

Total

 

Balance at June 30, 2015

 

$
(0.1)

 

$
43.9

 

$
(235.0)

 

 

$
(190.3)

 

$
(381.5)

 

OCI before reclassifications

 

 
(3.4)

 

 
23.3

 

 
4.1
(1)

 

 
(128.3)

 

 
(104.3)

 

Amounts reclassified from AOCI

 

 

 —

 

 
(20.5)

 

 
9.1

 

 

 

 —

 

 
(11.4)

 

Net current-period OCI

 

 
(3.4)

 

 
2.8

 

 
13.2

 

 

 
(128.3)

 

 
(115.7)

 

Balance at December 31, 2015

 

$
(3.5)

 

$
46.7

 

$
(221.8)

 

 

$
(318.6)

 

$
(497.2)

 

 

 

(1)

Includes foreign currency translation gains of $6.5 million.

 

The following table represents the effects of reclassification adjustments from AOCI into net earnings for the three and six months ended December 31, 2015 and 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount Reclassified from AOCI

 

 

 

 

 

Three Months Ended
December 31

 

Six Months Ended
December 31

 

Affected Line Item in
Consolidated

 

(In millions)

 

2015

 

2014

 

2015

 

2014

 

Statement of Earnings

 

Gain (Loss) on Investments

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) on investments

 

$
(0.1

)

$
1.5

 

$

—

 

$
1.5

 

Interest income and investment income, net

 

Benefit (provision) for deferred taxes

 

—

 
(0.4

)

—

 
(0.4

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
(0.1

)

$
1.1

 

$

—

 

$
1.1

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (Loss) on Cash-Flow Hedges

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

$
3.7

 

$
2.2

 

$
7.4

 

$
1.8

 

Cost of sales

 

Foreign currency forward contracts

 
13.9

 
6.6

 
24.0

 
6.8

 

Selling, general and administrative

 

Settled interest rate-related derivatives

 
0.1

 
0.1

 
0.3

 
0.2

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
17.7

 
8.9

 
31.7

 
8.8

 

Earnings before income taxes

 

Benefit (provision) for deferred taxes

 
(6.2

)
(3.2

)
(11.2

)
(3.2

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
11.5

 

$
5.7

 

$
20.5

 

$
5.6

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts Included in Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service cost

 

$
(0.9

)

$
(0.9

)

$
(1.7

)

$
(1.8

)

(1)

 

Amortization of actuarial loss

 
(5.4

)
(5.4

)
(11.0

)
(11.1

)

(1)

 

Settlement

 
(0.1

)

—

 
(0.1

)

—

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(6.4

)
(6.3

)
(12.8

)
(12.9

)

Earnings before income taxes

 

Benefit (provision) for deferred taxes

 
1.8

 
1.9

 
3.7

 
3.8

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
(4.6

)

$
(4.4

)

$
(9.1

)

$
(9.1

)

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total reclassification adjustments, net

 

$
6.8

 

$
2.4

 

$
11.4

 

$
(2.4

)

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

See Note 7 – Pension and Post-Retirement Benefit Plans for additional information.