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EQUITY
 6 Months Ended
Dec. 31, 2016
EQUITY  
EQUITY

 

NOTE 13 — 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, 2016

 

$
6

 

$
3,161

 

$
7,693

 

$
(545

)

$
(6,743

)

$
3,572

 

$
15

 

$
3,587

 

Net earnings

 

—

 

—

 
722

 

—

 

—

 
722

 
4

 
726

 

Common stock dividends

 

—

 
1

 
(237

)

—

 

—

 
(236

)
(5

)
(241

)

Other comprehensive income (loss)

 

—

 

—

 

—

 
(94

)

—

 
(94

)
1

 
(93

)

Acquisition of treasury stock

 

—

 

—

 

—

 

—

 
(307

)
(307

)

—

 
(307

)

Stock-based compensation

 

—

 
187

 

—

 

—

 
(51

)
136

 

—

 
136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2016

 

$
6

 

$
3,349

 

$
8,178

 

$
(639

)

$
(7,101

)

$
3,793

 

$
15

 

$
3,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2016:

 

Date Declared

 

Record Date

 

Payable Date

 

Amount per Share

 

August 18, 2016

 

August 31, 2016

 

September 15, 2016

 

$

.30

 

November 1, 2016

 

November 30, 2016

 

December 15, 2016

 

$

.34

 

 

On February 1, 2017, a dividend was declared in the amount of $.34 per share on the Company’s Class A and Class B Common Stock.  The dividend is payable in cash on March 15, 2017 to stockholders of record at the close of business on February 28, 2017.

 

Common Stock

 

During the six months ended December 31, 2016, the Company purchased approximately 4.1 million shares of its Class A Common Stock for $363 million.

 

During the six months ended December 31, 2016, approximately 0.6 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.

 

Accumulated Other Comprehensive Income (Loss)

 

The following table represents changes in AOCI, net of tax, by component for the six months ended December 31, 2016:

 

(In millions)

 

Net 
Unrealized 
Investment 
Gain (Loss)

 

Net 
Derivative 
Instrument 
Gain (Loss)

 

Amounts 
Included in 
Net Periodic 
Benefit Cost

 

Translation 
Adjustments

 

Total

 

Balance at June 30, 2016

 

$
7

 

$
32

 

$
(285

)

$
(299

)

$
(545

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OCI before reclassifications

 
(10

)
38

 
4

(1)
(120

)
(88

)

Amounts reclassified from AOCI

 
(1

)
(16

)
11

 

—

 
(6

)

 

 

 

 

 

 

 

 

 

 

 

 

Net current-period OCI

 
(11

)
22

 
15

 
(120

)
(94

)

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2016

 

$
(4

)

$
54

 

$
(270

)

$
(419

)

$
(639

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes foreign currency translation gains of $6 million.

 

The following table represents the effects of reclassification adjustments from AOCI into net earnings for the three and six months ended December 31, 2016 and 2015:

 

 

 

Amount Reclassified from AOCI

 

 

 

 

 

Three Months Ended 
December 31

 

Six Months Ended 
December 31

 

Affected Line Item in 
Consolidated 

 

(In millions)

 

2016

 

2015

 

2016

 

2015

 

Statement of Earnings

 

Gain (Loss) on Investments

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) on investments

 

$

—

 

$

—

 

$
1

 

$

—

 

Interest income and investment income, net

 

Benefit (provision) for deferred taxes

 

—

 

—

 

—

 

—

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

—

 

$

—

 

$
1

 

$

—

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (Loss) on Cash-Flow Hedges

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

$
4

 

$
4

 

$
6

 

$
7

 

Cost of sales

 

Foreign currency forward contracts

 
12

 
14

 
19

 
24

 

Selling, general and administrative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
16

 
18

 
25

 
31

 

Earnings before income taxes

 

Benefit (provision) for deferred taxes

 
(6

)
(6

)
(9

)
(11

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
10

 

$
12

 

$
16

 

$
20

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts Included in Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

Amortization of prior service cost

 

$
(1

)

$
(1

)

$
(2

)

$
(1

)

(1)

 

Amortization of actuarial loss

 
(7

)
(5

)
(14

)
(12

)

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(8

)
(6

)
(16

)
(13

)

Earnings before income taxes

 

Benefit (provision) for deferred taxes

 
3

 
1

 
5

 
4

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
(5

)

$
(5

)

$
(11

)

$
(9

)

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total reclassification adjustments, net

 

$
5

 

$
7

 

$
6

 

$
11

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

See Note 9 — Pension and Post-Retirement Benefit Plans for additional information.