The Estée Lauder Companies Inc. (NYSE:EL) today reported financial results for its first quarter ended September 30, 2017. The Company achieved net sales of $3.27 billion, an increase of 14%, compared with $2.87 billion in the prior-year quarter. Incremental sales from the Company’s recent acquisitions of Too Faced and BECCA contributed approximately 4 percentage points of the reported sales growth. Net earnings rose 45% to $427 million, compared with $294 million last year. Diluted net earnings per common share increased 44% to $1.14, compared with $.79 reported in the prior year. The fiscal 2018 first quarter also includes the impact of the adoption of a new accounting pronouncement for share-based compensation, which added $.06 to diluted earnings per share. See note C on page 11.
Fabrizio Freda, President and Chief Executive Officer, said, “We delivered an outstanding financial performance in our fiscal 2018 first quarter, demonstrating the power of our diverse brand portfolio to leverage our multiple engines of growth. Building on the global momentum of the last fiscal year, we benefitted from a continued acceleration in China, Hong Kong, travel retail and global online, strength in several developed and emerging markets in Europe, and incremental sales from Too Faced and BECCA.
“Our online and travel retail channels and most luxury and mid-sized brands posted double-digit sales gains. In addition, we saw encouraging signs of improvement in some U.S. prestige department stores, and our targeted expansion into more specialty-multi doors to reach new consumers continued to help us gain share. Sales growth in the Estée Lauder brand continued to accelerate, generating double-digit gains in the quarter. Our earnings per share reflected the strong sales gains combined with our success in leveraging those sales through cost saving initiatives, efficiencies and continued financial discipline.
“For the full fiscal year, our forecast reflects strong programs supported by focused advertising and marketing spending and sustained investments to further build capabilities for the long term. With this strong start to fiscal 2018 and our confidence in the potential for our business, we are raising our full-year constant currency sales growth forecast to between 8% and 9% and increasing our constant currency earnings per share growth estimate, before restructuring charges, to 12% to 14%.”
Excluding the impact of foreign currency translation, adjusted net sales increased 13%. For the quarter, the positive impact of foreign currency translation on diluted net earnings per common share was $.02.
During the fiscal 2018 first quarter, the Company recorded restructuring and other charges of $38 million ($26 million after tax), equal to $.07 per diluted share, in connection with its previously announced Leading Beauty Forward initiative. During the fiscal 2017 first quarter, the Company recorded restructuring and other charges of $31 million ($20 million after tax), equal to $.05 per diluted share.
Additionally, in the fiscal 2018 and 2017 first quarter, the Company recorded adjustments to reflect changes in the fair value of its contingent consideration related to its fiscal 2015 and 2016 acquisitions. See tables below and on page 11.
Adjusting for the restructuring and other charges and changes in contingent consideration, diluted net earnings per common share for the three months ended September 30, 2017 was $1.21, and in constant currency rose 41%. Information about GAAP and non-GAAP financial measures, including reconciliation information, is included in this release.
Reconciliation between GAAP and non-GAAP | Three Months Ended September 30, 2017 |
Three Months |
||||||||||||||||||||||||||
Net Sales Growth | Diluted EPS Growth |
Diluted Earnings Per Share |
||||||||||||||||||||||||||
(Unaudited) |
Reported Basis |
Constant Currency |
Reported Basis |
Constant Currency |
2017 | 2016 | ||||||||||||||||||||||
Results including restructuring and other |
14 | %(1) | 14 | % | 44 | %(1) | 43 | % | $1.14 | (1) | $.79 | (1) | ||||||||||||||||
Non-GAAP |
||||||||||||||||||||||||||||
Restructuring and other charges | .07 | .05 | ||||||||||||||||||||||||||
Contingent consideration | .00 | .01 | ||||||||||||||||||||||||||
Adjusted results | 14 | % | 13 | % | 42 | % | 41 | % | 1.21 | $.85 | ||||||||||||||||||
Impact of foreign currency on earnings
per share |
(.02 | ) | ||||||||||||||||||||||||||
Constant currency earnings per share | $1.19 | |||||||||||||||||||||||||||
_______________________________ |
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(1) Represents GAAP. |
Results by Product Category |
|||||||||||||||||||||||||||||||||||||
Three Months Ended September 30 | |||||||||||||||||||||||||||||||||||||
(Unaudited; Dollars in millions) | Net Sales | Percent Change |
Operating Income (Loss) |
Percent Change |
|||||||||||||||||||||||||||||||||
2017 | 2016 |
Reported Basis |
Constant Currency |
2017 | 2016 |
Reported Basis |
|||||||||||||||||||||||||||||||
Skin Care | $ | 1,275 | $ | 1,102 | 16 | % | 15 | % | $ | 326 | $ | 212 | 54 | % | |||||||||||||||||||||||
Makeup | 1,372 | 1,166 | 18 | 17 | 176 | 149 | 18 | ||||||||||||||||||||||||||||||
Fragrance | 476 | 442 | 8 | 7 | 87 | 72 | 21 | ||||||||||||||||||||||||||||||
Hair Care | 136 | 136 | 0 | 0 | 15 | 13 | 15 | ||||||||||||||||||||||||||||||
Other | 15 | 21 | (29 | ) | (29 | ) | 2 | 3 | (33 | ) | |||||||||||||||||||||||||||
Subtotal | 3,274 | 2,867 | 14 | 13 | 606 | 449 | 35 | ||||||||||||||||||||||||||||||
Returns and charges associated |
— | (2 | ) | (38 | ) | (31 | ) | ||||||||||||||||||||||||||||||
Total | $ | 3,274 | $ | 2,865 | 14 | % | 14 | % | $ | 568 | $ | 418 | 36 | % | |||||||||||||||||||||||
Net sales and operating income in most of the Company’s product categories were favorably impacted by a weaker U.S. dollar in relation to most currencies. Total operating income in constant currency, before charges, increased 33%.
Skin Care
Makeup
Fragrance
Hair Care
Results by Geographic Region |
|||||||||||||||||||||||||
Three Months Ended September 30 | |||||||||||||||||||||||||
(Unaudited; Dollars in millions) | Net Sales | Percent Change |
Operating Income (Loss) |
Percent Change |
|||||||||||||||||||||
2017 | 2016 |
Reported Basis |
Constant Currency |
2017 | 2016 |
Reported Basis |
|||||||||||||||||||
The Americas | $ | 1,329 | $ | 1,233 | 8 | % | 7 | % | $ | 100 | $ | 63 | 59 | % | |||||||||||
Europe, the Middle East & Africa. | 1,258 | 1,044 | 20 | 18 | 346 | 256 | 35 | ||||||||||||||||||
Asia/Pacific | 687 | 590 | 16 | 17 | 160 | 130 | 23 | ||||||||||||||||||
Subtotal | 3,274 | 2,867 | 14 | 13 | 606 | 449 | 35 | ||||||||||||||||||
Returns and charges associated |
— | (2 | ) | (38 | ) | (31 | ) | ||||||||||||||||||
Total | $ | 3,274 | $ | 2,865 | 14 | % | 14 | % | $ | 568 | $ | 418 | 36 | % | |||||||||||
Net sales and operating income in most of the Company’s geographic regions were favorably impacted by a weaker U.S. dollar in relation to most currencies.
The Americas
Europe, the Middle East & Africa
Asia/Pacific
Cash Flows from Operating Activities
Outlook for Fiscal 2018 Second Quarter and Full Year
Global prestige beauty remains vibrant and is estimated to grow approximately 4% to 5% during the year. The Company’s annual growth has consistently outpaced global prestige beauty and is expected to grow approximately four percentage points ahead of the industry for fiscal 2018. The Company expects sales growth to benefit from high-quality products, strong innovation, outreach to new target consumers and growth from recent acquisitions, while continuing to emphasize a digital-first marketing approach and a strong focus on fast-growing markets and channels as consumer preferences evolve.
We are mindful of risks related to social and political issues, geopolitical tensions, terrorism, currency volatility and economic challenges affecting consumer spending in certain countries and traveling flows. The Company is also cautious of the decline in retail traffic, primarily related to some brick-and-mortar stores in the United States.
The first quarter benefit ($.06 per share) of a new accounting standard related to the excess tax benefits for share-based compensation is included in the Company’s full-year estimate. However, the Company is not forecasting the potential impact for the remainder of the year, as any additional impact could fluctuate depending on its stock price, the timing and level of employee stock option exercises and applicable tax rates.
Full Year Fiscal 2018
Second Quarter Fiscal 2018
|
||||||||||||||||||||
Reconciliation between GAAP and
non-GAAP |
Three Months Ending December 31, 2017 (F) | Three Months December 31 | ||||||||||||||||||
Net Sales Growth | Diluted EPS Growth | Diluted Earnings Per Share | ||||||||||||||||||
(Unaudited) |
Reported Basis |
Constant Currency |
Reported Basis |
Constant Currency |
2017 (F) | 2016 | ||||||||||||||
Forecast / actual results including |
13-15 | %(1) | 10-11 | % | 11-15 | %(1) | 5-9 | % | $1.28 - $1.32 | (1) | $1.15 | (1) | ||||||||
Non-GAAP |
||||||||||||||||||||
Restructuring and other charges | .09 -.10 | .07 | ||||||||||||||||||
Forecast / actual results excluding charges | 13-15 | % | 10-11 | % | 13-15 | % | 8-10 | % | 1.38 – 1.41 | $1.22 | ||||||||||
Impact of foreign currency on earnings |
(.07 | ) | ||||||||||||||||||
Forecasted constant currency earnings |
$1.31 - $1.34 | |||||||||||||||||||
|
||||||||||||||||||||
Reconciliation between GAAP and
non-GAAP |
Year Ending June 30, 2018 (F) | Twelve Months June 30 | ||||||||||||||||||
Net Sales Growth | Diluted EPS Growth | Diluted Earnings Per Share | ||||||||||||||||||
(Unaudited) |
Reported Basis |
Constant Currency |
Reported Basis |
Constant Currency |
2018 (F) | 2017 | ||||||||||||||
Forecast / actual results including |
10-11 | %(1) | 8-9 | % | 13-16 | %(1) | 8-11 | % | $3.77 - $3.88 | (1) | $3.35 | (1) | ||||||||
Non-GAAP |
||||||||||||||||||||
Restructuring and other charges | .24 -.27 | .38 | ||||||||||||||||||
Contingent consideration | (.12 | ) | ||||||||||||||||||
Intangible asset impairments | .06 | |||||||||||||||||||
China deferred tax asset valuation allowance |
(.20 | ) | ||||||||||||||||||
Forecast / actual results adjusted | 10-11 | % | 8-9 | % | 16-19 | % | 12-14 | % | 4.04 - 4.12 | $3.47 | ||||||||||
Impact of foreign currency on earnings per share |
(.16 | ) | ||||||||||||||||||
Forecasted constant currency earnings per share |
$3.88 - $3.96 | |||||||||||||||||||
_______________________________ |
||||||||||||||||||||
(1) Represents GAAP. (F) Represents forecast. |
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Conference Call
The Estée Lauder Companies will host a conference call at 9:30 a.m. (ET) today, November 1, 2017 to discuss its results. The dial-in number for the call is 888-294-4716 in the U.S. or 706-902-0101 internationally (conference ID number: 10665255). The call will also be webcast live at http://www.elcompanies.com/investors/events-and-presentations.
Cautionary Note Regarding Forward-Looking Statements
The forward-looking statements in this press release, including those containing words like “expect,” “plans,” “may,” “could,” “anticipate,” “estimate,” “projected,” “forecasted,” those in Mr. Freda’s remarks and those in the “Outlook for Fiscal 2018 Second Quarter and Full Year” section involve risks and uncertainties. Factors that could cause actual results to differ materially from those forward-looking statements include the following:
(1) | increased competitive activity from companies in the skin care, makeup, fragrance and hair care businesses; | ||||
(2) | the Company’s ability to develop, produce and market new products on which future operating results may depend and to successfully address challenges in the Company’s business; | ||||
(3) | consolidations, restructurings, bankruptcies and reorganizations in the retail industry, and other factors causing a decrease in the number of stores that sell the Company’s products, an increase in the ownership concentration within the retail industry, ownership of retailers by the Company’s competitors or ownership of competitors by the Company’s customers that are retailers and our inability to collect receivables; | ||||
(4) | destocking and tighter working capital management by retailers; | ||||
(5) | the success, or changes in timing or scope, of new product launches and the success, or changes in the timing or the scope, of advertising, sampling and merchandising programs; | ||||
(6) | shifts in the preferences of consumers as to where and how they shop; | ||||
(7) | social, political and economic risks to the Company’s foreign or domestic manufacturing, distribution and retail operations, including changes in foreign investment and trade policies and regulations of the host countries and of the United States; | ||||
(8) | changes in the laws, regulations and policies (including the interpretations and enforcement thereof) that affect, or will affect, the Company’s business, including those relating to its products or distribution networks, changes in accounting standards, tax laws and regulations, environmental or climate change laws, regulations or accords, trade rules and customs regulations, and the outcome and expense of legal or regulatory proceedings, and any action the Company may take as a result; | ||||
(9) | foreign currency fluctuations affecting the Company’s results of operations and the value of its foreign assets, the relative prices at which the Company and its foreign competitors sell products in the same markets and the Company’s operating and manufacturing costs outside of the United States; | ||||
(10) | changes in global or local conditions, including those due to the volatility in the global credit and equity markets, natural or man-made disasters, real or perceived epidemics, or energy costs, that could affect consumer purchasing, the willingness or ability of consumers to travel and/or purchase the Company’s products while traveling, the financial strength of the Company’s customers, suppliers or other contract counterparties, the Company’s operations, the cost and availability of capital which the Company may need for new equipment, facilities or acquisitions, the returns that the Company is able to generate on its pension assets and the resulting impact on its funding obligations, the cost and availability of raw materials and the assumptions underlying the Company’s critical accounting estimates; | ||||
(11) | shipment delays, commodity pricing, depletion of inventory and increased production costs resulting from disruptions of operations at any of the facilities that manufacture nearly all of the Company’s supply of a particular type of product (i.e. focus factories) or at the Company’s distribution or inventory centers, including disruptions that may be caused by the implementation of information technology initiatives or by restructurings; | ||||
(12) | real estate rates and availability, which may affect the Company’s ability to increase or maintain the number of retail locations at which the Company sells its products and the costs associated with the Company’s other facilities; | ||||
(13) | changes in product mix to products which are less profitable; | ||||
(14) | the Company’s ability to acquire, develop or implement new information and distribution technologies and initiatives on a timely basis and within the Company’s cost estimates and the Company’s ability to maintain continuous operations of such systems and the security of data and other information that may be stored in such systems or other systems or media; | ||||
(15) | the Company’s ability to capitalize on opportunities for improved efficiency, such as publicly-announced strategies and restructuring and cost-savings initiatives, and to integrate acquired businesses and realize value therefrom; | ||||
(16) | consequences attributable to local or international conflicts around the world, as well as from any terrorist attack, retaliation or similar threats; | ||||
(17) | the timing and impact of acquisitions, investments and divestitures; and | ||||
(18) | additional factors as described in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2017. | ||||
The Company assumes no responsibility to update forward-looking statements made herein or otherwise. |
|||||
The Estée Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The Company’s products are sold in over 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, M•A•C, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, AERIN, Tory Burch, RODIN olio lusso, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, By Kilian, BECCA and Too Faced.
ELC-F
ELC-E
THE ESTÉE LAUDER COMPANIES INC. CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited; In millions, except per share data and percentages) |
||||||||||||
Three Months Ended September 30 |
Percent Change |
|||||||||||
2017 |
2016 |
|||||||||||
Net Sales (A) | $ | 3,274 | $ | 2,865 | 14 | % | ||||||
Cost of sales (A) | 711 | 596 | ||||||||||
Gross Profit | 2,563 | 2,269 | 13 | % | ||||||||
Gross Margin | 78.3 | % | 79.2 | % | ||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative (B) | 1,961 | 1,825 | ||||||||||
Restructuring and other charges (A) | 34 | 26 | ||||||||||
1,995 | 1,851 | 8 | % | |||||||||
Operating Expense Margin | 60.9 | % | 64.6 | % | ||||||||
Operating Income | 568 | 418 | 36 | % | ||||||||
Operating Income Margin | 17.3 | % | 14.6 | % | ||||||||
Interest expense | 31 | 21 | ||||||||||
Interest income and investment income, net | 12 | 6 | ||||||||||
Earnings before Income Taxes | 549 | 403 | 36 | % | ||||||||
Provision for income taxes (C) | 119 | 107 | ||||||||||
Net Earnings | 430 | 296 | 45 | % | ||||||||
Net earnings attributable to noncontrolling interests | (3 | ) | (2 | ) | ||||||||
Net Earnings Attributable to The Estée Lauder |
$ | 427 | $ | 294 | 45 | % | ||||||
Net earnings attributable to The Estée Lauder Companies |
||||||||||||
Basic | $ | 1.16 | $ | .80 | 45 | % | ||||||
Diluted | 1.14 | .79 | 44 | % | ||||||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 368.4 | 366.4 | ||||||||||
Diluted | 375.4 | 373.3 |
(A) In May 2016, the Company announced a multi-year initiative (Leading Beauty Forward) to build on its strengths and better leverage its cost structure to free resources for investment to continue its growth momentum. Leading Beauty Forward is designed to enhance the Company’s go-to-market capabilities, reinforce its leadership in global prestige beauty and continue creating sustainable value. During the fiscal 2018 first quarter, the Company continued to approve specific initiatives under Leading Beauty Forward. The Company plans to approve additional initiatives through fiscal 2019 and expects to complete those initiatives through fiscal 2021. The Company expects Leading Beauty Forward will result in related restructuring and other charges totaling between $600 million and $700 million, before taxes. Once fully implemented, Leading Beauty Forward is expected to yield annual net benefits of between $200 million and $300 million, before taxes, of which a portion is expected to be reinvested in future growth initiatives. |
THE ESTÉE LAUDER COMPANIES INC. |
(B) The Company recorded $1 million and $4 million of expense within selling, general and administrative expenses for the three months ended September 30, 2017 and 2016, respectively, to reflect changes in the fair value of its contingent consideration related to its fiscal 2015 and 2016 acquisitions. |
(C) During the first quarter of fiscal 2018, the Company adopted a new accounting standard for share-based compensation that requires excess tax benefits and tax deficiencies related to stock-based compensation awards be recorded as income tax benefit or expense in the income statement. As a result of the adoption of this new standard, the Company recognized $23 million of excess tax benefits as a reduction to the provision for income taxes, which reduced the effective rate for income taxes by 420 basis points and added approximately $.06 to diluted net earnings per share for the three months ended September 30, 2017. |
_______________________________ |
Total returns and charges associated with restructuring and other activities and changes in the fair value of contingent consideration included in net earnings for the three months ended September 30, 2017 and 2016 were: |
Sales Returns |
Cost of Sales |
Operating Expenses | Total |
After Tax |
Diluted Earnings Per Share |
|||||||||||||||||||
Restructuring Charges |
Other Charges/ Adjust- ments |
|||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||
Three Months Ended September 30, 2017 |
||||||||||||||||||||||||
Leading Beauty Forward |
$ | — | $ | 4 | $ | 14 | $ | 20 | $ | 38 | $ | 26 | $ | .07 | ||||||||||
Contingent consideration |
— |
— | — | 1 | 1 | 1 | — | |||||||||||||||||
Total | $ | — | $ | 4 | $ | 14 | $ | 21 | $ | 39 | $ | 27 | $ | .07 | ||||||||||
Three Months Ended September 30, 2016 |
||||||||||||||||||||||||
Leading Beauty Forward |
$ |
2 |
$ |
3 |
$ |
8 |
$ |
18 |
$ |
31 |
$ |
20 |
$ |
.05 |
||||||||||
Contingent consideration |
— |
— |
— |
4 |
4 |
3 |
.01 |
|||||||||||||||||
Total |
$ |
2 |
$ |
3 |
$ |
8 |
$ |
22 |
$ |
35 |
$ |
23 |
$ |
.06 |
THE ESTÉE LAUDER COMPANIES INC. |
This earnings release includes some non-GAAP financial measures relating to charges associated with restructuring and other activities and the changes in the fair value of contingent consideration. The following is a reconciliation between the non-GAAP financial measures and the most directly comparable GAAP measures for certain consolidated statements of earnings accounts before and after these items. The Company uses certain non-GAAP financial measures, among other financial measures, to evaluate its operating performance, which represent the manner in which the Company conducts and views its business. Management believes that excluding certain items that are not comparable from period to period, or do not reflect the Company’s underlying ongoing business, provides transparency for such items and helps investors and others compare and analyze operating performance from period to period. In the future, the Company expects to incur charges or adjustments similar in nature to those presented below; however, the impact to the Company’s results in a given period may be highly variable and difficult to predict. Our non-GAAP financial measures may not be comparable to similarly titled measures used by, or determined in a manner consistent with, other companies. While the Company considers the non-GAAP measures useful in analyzing its results, they are not intended to replace, or act as a substitute for, any presentation included in the consolidated financial statements prepared in conformity with GAAP. |
The Company operates on a global basis, with the majority of its net sales generated outside the United States. Accordingly, fluctuations in foreign currency exchange rates can affect the Company’s results of operations. Therefore, the Company presents certain net sales, operating results and diluted earnings per share information excluding the effect of foreign currency rate fluctuations to provide a framework for assessing the performance of its underlying business outside the United States. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. The Company calculates constant currency information by translating current-period results using prior-year period weighted average foreign currency exchange rates. |
Reconciliation of Certain Consolidated Statements of Earnings Accounts Before and After Returns, Charges and Other Adjustments (Unaudited; In millions, except per share data and percentages) |
|||||||||||||||||||||||||||||
Three Months Ended
September 30, 2017 |
Three Months Ended
September 30, 2016 |
||||||||||||||||||||||||||||
As Reported |
Returns/ Charges/ Adjust- ments |
Adjusted |
Impact of foreign currency translation |
Constant Currency |
As Reported |
Returns/ |
Adjusted |
% Change versus Prior Year Before Charges |
% Change Constant Currency |
||||||||||||||||||||
Net Sales | $3,274 | $— | $3,274 | $(22 | ) | $3,252 | $2,865 | $2 | $2,867 | 14% | 13% | ||||||||||||||||||
Cost of sales | 711 | (4 | ) | 707 | 596 | (3 | ) | 593 | |||||||||||||||||||||
Gross Profit | 2,563 | 4 | 2,567 | 2,269 | 5 | 2,274 | 13% | ||||||||||||||||||||||
Gross Margin | 78.3 | % | 78.4 | % | 79.2 | % | 79.3 | % | |||||||||||||||||||||
Operating expenses | 1,995 | (35 | ) | 1,960 | 1,851 | (30 | ) | 1,821 | 8% | ||||||||||||||||||||
Operating Expense Margin | 60.9 | % | 59.9 | % | 64.6 | % | 63.5 | % | |||||||||||||||||||||
Operating Income | 568 | 39 | 607 | 418 | 35 | 453 | 34% | ||||||||||||||||||||||
Operating Income Margin | 17.3 | % | 18.5 | % | 14.6 | % | 15.8 | % | |||||||||||||||||||||
Provision for income taxes | 119 | 12 | 131 | 107 | 12 | 119 | |||||||||||||||||||||||
Net Earnings Attributable to The |
427 | 27 | 454 | 294 | 23 | 317 | 43% | ||||||||||||||||||||||
Diluted net earnings attributable
to The Estée Lauder Companies |
1.14 | .07 | 1.21 | (.02 | ) | 1.19 | .79 | .06 | .85 | 42% | 41% | ||||||||||||||||||
Amounts may not sum due to rounding. |
THE ESTÉE LAUDER COMPANIES INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited; In millions) |
|||||||||||
September 30 2017 |
June 30 2017 |
September 30 2016 |
|||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 1,444 | $ | 1,136 | $ | 664 | |||||
Short-term investments |
381 | 605 | 525 | ||||||||
Accounts receivable, net | 1,799 | 1,395 | 1,624 | ||||||||
Inventory and promotional merchandise, net | 1,518 | 1,479 | 1,296 | ||||||||
Prepaid expenses and other current assets | 365 | 349 | 292 | ||||||||
Total Current Assets | 5,507 | 4,964 | 4,401 | ||||||||
Property, Plant and Equipment, net | 1,695 | 1,671 | 1,569 | ||||||||
Other Assets | 5,000 | 4,933 | 3,378 | ||||||||
Total Assets | $ | 12,202 | $ | 11,568 | $ | 9,348 | |||||
LIABILITIES AND EQUITY | |||||||||||
Current Liabilities | |||||||||||
Current debt | $ | 552 | $ | 189 | $ | 592 | |||||
Accounts payable | 679 | 835 | 546 | ||||||||
Other accrued liabilities | 1,911 | 1,799 | 1,574 | ||||||||
Total Current Liabilities | 3,142 | 2,823 | 2,712 | ||||||||
Noncurrent Liabilities | |||||||||||
Long-term debt | 3,383 | 3,383 | 1,908 | ||||||||
Other noncurrent liabilities | 924 | 960 | 1,053 | ||||||||
Total Noncurrent Liabilities | 4,307 | 4,343 | 2,961 | ||||||||
Total Equity | 4,753 | 4,402 | 3,675 | ||||||||
Total Liabilities and Equity | $ | 12,202 | $ | 11,568 | $ | 9,348 |
SELECT CASH FLOW DATA (Unaudited; In millions) |
|||||||||||
Three Months Ended September 30 |
|||||||||||
2017 | 2016 | ||||||||||
Cash Flows from Operating Activities | |||||||||||
Net earnings | $ | 430 | $ | 296 | |||||||
Depreciation and amortization | 127 | 106 | |||||||||
Deferred income taxes |
(3 | ) | (32 | ) | |||||||
Other items | 68 | 88 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Increase in accounts receivable, net | (390 | ) | (365 | ) | |||||||
Increase in inventory and promotional merchandise, net | (16 | ) | (31 | ) | |||||||
Decrease in other assets, net | 13 | 4 | |||||||||
Decrease in accounts payable and other liabilities | (136 | ) | (216 | ) | |||||||
Net cash flows provided by (used for) operating activities | $ | 93 | $ | (150 | ) | ||||||
Capital expenditures | $ | 116 | $ | 85 | |||||||
Acquisition of businesses | 11 | 10 | |||||||||
Proceeds of investments, net | 163 | 17 | |||||||||
Payments to acquire treasury stock | 111 | 222 | |||||||||
Dividends paid | 126 | 111 | |||||||||
Increase in short-term debt, net |
362 | 263 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20171101005540/en/
The Estée Lauder Companies
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or
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