Exhibit 99.1
THE News
ESTEE Contact:
LAUDER Investor Relations:
COMPANIES INC. Dennis D'Andrea
(212) 572-4384
767 Fifth Avenue Media Relations:
New York, NY 10153 Sally Susman
(212) 572-4430
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE:
ESTEE LAUDER COMPANIES REPORTS 12% NET SALES INCREASE
IN SECOND QUARTER
DILUTED EPS FROM CONTINUING OPERATIONS INCREASES 42% TO $.99
RAISES FULL FISCAL YEAR EPS ESTIMATES
New York, NY, January 31, 2007 - The Estee Lauder Companies Inc. (NYSE: EL)
today reported $1.99 billion in net sales for its fiscal second quarter ended
December 31, 2006, a 12% increase over the $1.78 billion reported in the
prior-year quarter. Excluding the impact of foreign currency translation, net
sales rose 9%.
The Company reported net earnings from continuing operations for the quarter
ended December 31, 2006 of $208.5 million, compared with $150.4 million last
year. Diluted net earnings per common share from continuing operations for
the quarter rose 42% to $.99 compared with $.70 reported in the prior year.
Net earnings and diluted net earnings per share for the quarter including
discontinued operations each increased substantially compared with the prior-
year quarter.
William P. Lauder, President and Chief Executive Officer said, "Our strong
top line growth reflected gains in all major product categories within each
geographic region, as well as favorable foreign currency movement. At the
same time, the Company's cost savings initiatives and disciplined expense
control aided the bottom line. As a result, we generated a 260 basis point
increase in operating margin this quarter and better than expected earnings
per share growth.
"Our strong earnings and cash flow give us the opportunity to accelerate and
increase our investments in our business, enabling us to grow for the long
term. Taking a shorter term perspective, the solid first half and our
confidence in our business for the balance of the fiscal year permits us to
raise our full year earnings per share estimate to $2.10 to $2.20."
Page 1 of 9
Results by Product Category
- ---------------------------
Three Months Ended December 31
------------------------------
Percent
(Unaudited; Dollars in millions) Net Sales Percent Change Operating Income Change
- -------------------------------- --------------------- ------------------ -------------------- ---------
Reported Local Reported
2006 2005 Basis Currency 2006 2005 Basis
---- ---- ------- --------- ---- ---- -------
Skin Care........................... $ 701.1 $ 644.1 8.8% 5.6% $ 148.8 $ 133.3 11.6%
Makeup.............................. 716.8 642.3 11.6 9.0 128.6 92.5 39.0
Fragrance........................... 465.1 407.9 14.0 10.7 37.4 17.9 100.0+
Hair Care........................... 93.9 79.2 18.6 17.3 15.6 7.5 100.0+
Other............................... 14.2 10.4 36.5 34.6 2.0 1.1 81.8
--------- --------- --------- ---------
Subtotal......................... 1,991.1 1,783.9 11.6 8.7 332.4 252.3 31.7
Special charges related to cost
savings initiative............... - - - (1.6)
--------- --------- --------- ---------
Total............................ $ 1,991.1 $ 1,783.9 11.6% 8.7% $ 332.4 $ 250.7 32.6%
========= ========= ========= =========
The skin care, makeup and fragrance categories were adversely impacted
by fewer department store doors during the current-year quarter as compared
to the prior-year quarter resulting from the merger of Federated Department
Stores, Inc. (Federated) and The May Department Stores Company (May).
During the quarter, sales increased in all major product categories within each
of the Company's geographic regions.
Skin Care
- ---------
o Net sales of skin care products benefited from the recent launches of
Advanced Night Repair Concentrate Recovery Boosting Treatment by Estee Lauder,
and Repairwear Lift and All About Eyes Rich from Clinique. The continued
success of Resilience Lift Extreme Ultra Firming Cremes and Advanced Night
Repair Eye Recovery Complex by Estee Lauder also contributed to growth.
o Lower sales of some existing products, particularly in certain of the
Company's core brands, partially offset the increases.
o Operating income increased due to the higher sales, fueled by recent product
launches.
Makeup
- ------
o Makeup sales and operating income for the quarter increased, primarily
reflecting solid growth from the Company's makeup artist brands.
o The recent launches of Resilience Lift Extreme Ultra Firming Makeup SPF 15
and High Gloss Lip Gloss from Estee Lauder along with High Definition Lashes
from Clinique contributed solid incremental sales.
o Existing products such as Double Wear Foundation and Pure Color Eyeshadow by
Estee Lauder, as well as Perfectly Real Makeup from Clinique all had solid
quarter-over-quarter sales increases.
Page 2 of 9
Fragrance
- ---------
o Fragrance sales increased compared to the prior year reflecting strong growth
in Europe and the Americas and an easy comparison to the prior-year quarter
when the category decreased 11%.
o The recent launches of DKNY Red Delicious, DKNY Red Delicious Men, Pure
White Linen by Estee Lauder and Unforgivable by Sean John contributed
positively to the category's sales, as did Youth Dew Amber Nude from Tom
Ford for Estee Lauder.
o Lower sales from certain existing fragrances, such as True Star and True
Star Men from Tommy Hilfiger and Estee Lauder Beyond Paradise, partially
offset the positive results.
o While sales improved in the quarter, the fragrance category continues to be
challenging, particularly in the United States.
o Operating results in the fragrance product category increased, reflecting
the Company's effort to balance sales levels with profitability.
Hair Care
- ---------
o Sales of hair care products and services increased, primarily due to higher
sales at Aveda and Bumble and bumble.
o Higher sales at Bumble and bumble were primarily due to strong like-door
growth and new points of distribution.
o Aveda net sales growth was due to the recent shipments of Be Curly Shampoo
and Conditioner, the international launch of Damage Remedy hair care
products, and the recent acquisition of a distributor.
o Hair care operating profit rose as the increase in sales outpaced increased
spending in support of new distribution points and product launches.
Results by Geographic Region
- ----------------------------
Three Months Ended December 31
------------------------------
Percent
(Unaudited; Dollars in millions) Net Sales Percent Change Operating Income Change
- -------------------------------- --------------------- ------------------ --------------------- -------
Reported Local Reported
2006 2005 Basis Currency 2006 2005 Basis
---- ---- ------- --------- ---- ---- -------
The Americas........................ $ 944.0 $ 878.8 7.4% 7.2% $ 109.9 $ 79.6 38.1%
Europe, the Middle East & Africa.... 761.7 658.9 15.6 9.2 170.8 132.0 29.4
Asia/Pacific........................ 285.4 246.2 15.9 12.6 51.7 40.7 27.0
--------- --------- --------- --------
Subtotal......................... 1,991.1 1,783.9 11.6 8.7 332.4 252.3 31.7
Special charges related to cost
savings initiative............... - - - (1.6)
--------- --------- --------- --------
Total............................ $ 1,991.1 $ 1,783.9 11.6% 8.7% $ 332.4 $ 250.7 32.6%
========= ========= ========= ========
The Americas
- ------------
o Net sales for the quarter increased, led by growth in the Company's makeup
artist and hair care brands, as well as new products from Sean John. Strong
growth from the Company's internet distribution and solid overall gains in
Canada, Latin America and Mexico added to the increase.
o Sales in the region were tempered by decreases in core brands in the United
States, which continue to be challenged by competitive pressures and fewer
stores resulting from the
Page 3 of 9
consolidation of Federated and May. The Company also experienced weakness
in its business at those Federated doors affected by the national nameplate
change to Macy's in the United States.
o The Company's efforts to balance investment spending with sales levels
related to our core brands, as well as other planned cost containment
efforts, resulted in improved operating income in the Americas from the prior-
year quarter. Higher sales from the Company's hair care and internet
distribution businesses contributed to the improved results.
Europe, the Middle East & Africa
- --------------------------------
o In constant currency, net sales increased in most countries in the region.
Higher sales were led by the United Kingdom, the Company's travel retail
business and Russia.
o Operating profitability increased, primarily due to higher results in the
United Kingdom, the Company's travel retail and distributor businesses and
Russia, partially offset by lower results in the Benelux countries, France
and Italy.
Asia/Pacific
- ------------
o Every country in the region reported local currency sales increases, with
strong double-digit growth in Singapore, China, Hong Kong, Australia and
Taiwan, and solid growth in each of the remaining countries.
o Operating profit in the region increased substantially, led by improved
results in Hong Kong, China, Australia and Taiwan.
Six-Month Results
- -----------------
For the six months ended December 31, 2006, the Company reported net sales
of $3.58 billion, a 9% increase from $3.28 billion in the comparable
prior-year period. Excluding the impact of foreign currency translation, net
sales rose 7%. The Company reported net earnings from continuing operations
of $266.5 million for the six months compared with $212.2 million in the same
period last year. Diluted net earnings per common share from continuing
operations for the six months ended December 31, 2006 increased 30% to $1.25,
compared with $.97 reported in the prior-year period.
Net earnings and diluted net earnings per share for the six months increased
90% and 97%, respectively, compared with the prior-year period. The
increases are due to a charge in the prior-year period associated with
the Company's Stila business, which was designated as discontinued operations
as of September 30, 2005.
Cash Flows
- ----------
o For the six months ended December 31, 2006, net cash flows provided by
operating activities from continuing operations were $312.7 million, compared
with $388.7 million in the prior-year period.
o The change primarily reflects increases in accounts receivable balances,
principally related to significant sales growth from the Company's
international operations, which generally carry longer payment terms, coupled
with the extension of credit to some international customers to strategically
expand the Company's business in certain markets. An improvement in net
earnings from continuing operations partially offset the decrease.
Page 4 of 9
o Operating cash flow was utilized primarily for the repurchase of shares of
the Company's Class A Common Stock, capital investments, dividends and the
purchase of the remaining interest in the Bumble and bumble companies.
Estimate of Fiscal 2007 Third Quarter and Full Year
- ---------------------------------------------------
Third Quarter
- -------------
o Net sales are expected to grow between 4% and 6% in constant currency, and
the foreign currency translation impact is expected to add approximately
1.5% to 2% on a reported basis.
o Diluted earnings per share from continuing operations are projected to be
approximately flat compared with the prior-year quarter.
Full Year
- ---------
o Net sales are expected to grow between 6% and 7% in constant currency.
o Foreign currency translation impact is expected to be approximately a 1.5%
benefit versus the prior-year period.
o Diluted earnings per share from continuing operations is now projected to be
between $2.10 and $2.20.
o On a product category basis, in constant currency, sales in hair care and
makeup are expected to be the leading sales growth categories, followed by
skin care and fragrance.
o Geographic region net sales growth in constant currency is expected to be led
by Asia/Pacific and Europe, the Middle East & Africa, followed by the
Americas.
o The Company continues to expect to deliver approximately $30 million in
incremental savings in the current fiscal year ending June 30, 2007, under
its cost savings initiative implemented in fiscal 2006.
Analyst and Investor Day
- ------------------------
The Company will host an analyst and investor day on Tuesday, March 6, 2007
in New York City to provide an update on the Company's strategic direction,
business prospects and financial outlook. The meeting will be webcast
and will be accessible through the investor section of the Company's website,
www.elcompanies.com.
Forward-Looking Statements
- --------------------------
The forward-looking statements in this press release, including those
containing words like "expect," "planned," "may," "could," "anticipate,"
"estimate," "projected," those in Mr. Lauder's remarks and those in the
"Estimate of Fiscal 2007 Third 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, some of which have greater resources
than the Company does;
(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 core brands, including gift with purchase, and in the Company's
fragrance business;
(3) consolidations, restructurings, bankruptcies and reorganizations in the
retail industry 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 and
ownership of competitors by the Company's customers that are retailers;
(4) destocking by retailers;
Page 5 of 9
(5) the success, or changes in timing or scope, of new product launches and
the success, or changes in the timing or scope, of advertising, sampling
and merchandising programs;
(6) shifts in the preferences of consumers as to where and how they shop for
the types of products and services the Company sells;
(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
interpretation and enforcement thereof) that affect, or will affect, the
Company's business, including those relating to its products, changes in
accounting standards, tax laws and regulations, 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 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 or suppliers, the Company's
operations, the cost and availability of capital which the Company may need
for new equipment, facilities or acquisitions, the cost and availability of
raw materials and the assumptions underlying the Company's critical
accounting estimates;
(11) shipment delays, 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;
(12) real estate rates and availability, which may affect the Company's ability
to increase 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, on a timely basis and within the Company's cost
estimates;
(15) the Company's ability to capitalize on opportunities for improved
efficiency, such as publicly-announced cost-savings initiatives and the
success of Stila under new ownership, and to integrate acquired businesses
and realize value therefrom;
(16) consequences attributable to the events that are currently taking place in
the Middle East, including terrorist attacks, retaliation and the threat of
further attacks or retaliation;
(17) the timing and impact of acquisitions and divestitures, which depend on
willing sellers and buyers, respectively; 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, 2006.
The Company assumes no responsibility to update forward-looking statements
made herein or otherwise.
The Estee 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 130 countries and
territories under well-recognized brand names, including Estee Lauder, Aramis,
Clinique, Prescriptives, Lab Series, Origins, M.A.C, Bobbi Brown, Tommy
Hilfiger, La Mer, Donna Karan, Aveda, Jo Malone, Bumble and bumble, Darphin,
Michael Kors, Rodan + Fields, American Beauty, Flirt!, Good Skin(TM), Donald
Trump The Fragrance, Grassroots, Sean John, Missoni, Daisy Fuentes and Tom
Ford Beauty.
An electronic version of this release can be found at the Company's website,
www.elcompanies.com.
- --------------------
- Tables Follow -
Page 6 of 9
THE ESTEE LAUDER COMPANIES INC.
SUMMARY OF CONSOLIDATED RESULTS
(Unaudited; In millions, except per share data and percentages)
Three Months Ended Six Months Ended
December 31 December 31
-------------------- Percent -------------------- Percent
2006 2005 Change 2006 2005 Change
---- ---- ------ ---- ---- ------
Net Sales................................................. $ 1,991.1 $ 1,783.9 11.6% $ 3,584.6 $ 3,281.0 9.3%
Cost of sales............................................. 499.0 458.5 927.1 878.0
--------- --------- --------- ---------
Gross Profit.............................................. 1,492.1 1,325.4 12.6% 2,657.5 2,403.0 10.6%
--------- --------- --------- ---------
Gross Margin....................................... 74.9% 74.3% 74.1% 73.2%
Operating expenses:
Selling, general and administrative.................... 1,159.7 1,073.1 2,224.7 2,045.6
Special charges related to cost savings initiative .... - 1.6 0.5 1.6
--------- --------- --------- ---------
1,159.7 1,074.7 7.9% 2,225.2 2,047.2 8.7%
--------- --------- --------- ---------
Operating Expense Margin........................... 58.2% 60.2% 62.0% 62.4%
Operating Income ......................................... 332.4 250.7 32.6% 432.3 355.8 21.5%
Operating Income Margin............................ 16.7% 14.1% 12.1% 10.8%
Interest expense, net..................................... 7.7 6.9 14.4 12.5
--------- --------- --------- ---------
Earnings before Income Taxes, Minority Interest
and Discontinued Operations............................ 324.7 243.8 33.2% 417.9 343.3 21.7%
Provision for income taxes................................ 113.3 90.2 146.7 126.0
Minority interest, net of tax............................. (2.9) (3.2) (4.7) (5.1)
--------- --------- --------- ---------
Net Earnings from Continuing Operations................... 208.5 150.4 38.6% 266.5 212.2 25.6%
Discontinued operations, net of tax (A)................... (0.1) (68.7) 0.2 (72.0)
--------- --------- --------- ---------
Net Earnings.............................................. $ 208.4 $ 81.7 100.0+% $ 266.7 $ 140.2 90.2%
========= ========= ========= =========
Basic net earnings per common share:
Net earnings from continuing operations................ $ 1.00 $ .70 42.9% $ 1.27 $ .97 30.4%
Discontinued operations, net of tax.................... (.00) (.32) (.00) (.33)
--------- --------- --------- ---------
Net earnings .......................................... $ 1.00 $ .38 100.0+% $ 1.27 $ .64 97.5%
========= ========= ========= =========
Diluted net earnings per common share:
Net earnings from continuing operations................ $ .99 $ .70 42.1% $ 1.25 $ .97 30.1%
Discontinued operations, net of tax.................... (.00) (.32) (.00) (.33)
--------- --------- --------- ---------
Net earnings .......................................... $ .99 $ .38 100.0+% $ 1.25 $ .64 97.0%
========= ========= ========= =========
Weighted average common shares outstanding:
Basic.................................................. 208.3 214.7 209.7 217.7
Diluted................................................ 211.4 216.6 212.5 220.1
(A) On September 30, 2005, the Company committed to a plan to sell and on
April 10, 2006, completed the sale of certain assets and operations of the
reporting unit that marketed and sold Stila brand products. As such, $0.1
million of loss and $0.2 million of income, both net of tax, for the three and
six months ended December 31, 2006, are reflected as discontinued operations
in the consolidated statements of earnings. The current year operating results
included income from providing certain transitional distribution and online
services as well as the manufacture and sale to the purchaser of a limited
range of products. Also included were charges for transitional services related
to certain information systems, accounting and other back office services
provided to the purchaser in exchange for monthly service fees designed to
recover the estimated costs of providing these transition services.
Transitional services are expected to conclude in fiscal 2007. During the prior
year, the Company recorded a charge of $68.7 million (net of $14.2 million tax
benefit) and $72.0 million (net of $16.2 million tax benefit) as discontinued
operations for the three and six months ended December 31, 2005, respectively.
The charge reflected the anticipated loss on the sale of the business of $65.5
million, net of tax, and the operating loss of $3.2 million, net of tax, and
$6.5 million, net of tax, for the three and six months ended December 31, 2005,
respectively. Net sales associated with the discontinued operations were $12.1
million and $25.7 million for the three and six months ended December 31, 2005,
respectively.
Page 7 of 9
THE ESTEE LAUDER COMPANIES INC.
SUMMARY OF CONSOLIDATED RESULTS
(Unaudited; Dollars in millions)
Three Months Ended Six Months Ended
December 31 Percent Change December 31 Percent Change
--------------------- ------------------ --------------------- -------------------
Reported Local Reported Local
2006 2005 Basis Currency 2006 2005 Basis Currency
---- ---- ----- -------- ---- ---- ----- --------
NET SALES
By Region:
The Americas..................... $ 944.0 $ 878.8 7.4% 7.2% $ 1,844.5 $ 1,759.8 4.8% 4.6%
Europe, the Middle East & Africa. 761.7 658.9 15.6 9.2 1,233.6 1,076.4 14.6 9.5
Asia/Pacific..................... 285.4 246.2 15.9 12.6 506.5 444.8 13.9 11.7
--------- --------- --------- ---------
Total.......................... $ 1,991.1 $ 1,783.9 11.6% 8.7% $ 3,584.6 $ 3,281.0 9.3% 7.2%
========= ========= ========= =========
By Product Category:
Skin Care........................ $ 701.1 $ 644.1 8.8% 5.6% $ 1,268.1 $ 1,167.5 8.6% 6.3%
Makeup........................... 716.8 642.3 11.6 9.0 1,363.6 1,247.2 9.3 7.6
Fragrance........................ 465.1 407.9 14.0 10.7 754.4 701.1 7.6 5.1
Hair Care........................ 93.9 79.2 18.6 17.3 176.3 149.6 17.8 16.8
Other............................ 14.2 10.4 36.5 34.6 22.2 15.6 42.3 40.4
--------- --------- --------- ---------
Total.......................... $ 1,991.1 $ 1,783.9 11.6% 8.7% $ 3,584.6 $ 3,281.0 9.3% 7.2%
========= ========= ========= =========
OPERATING INCOME
By Region:
The Americas..................... $ 109.9 $ 79.6 38.1% $ 183.0 $ 160.0 14.4%
Europe, the Middle East & Africa. 170.8 132.0 29.4 189.1 154.4 22.5
Asia/Pacific..................... 51.7 40.7 27.0 60.7 43.0 41.2
--------- --------- --------- ---------
Subtotal....................... 332.4 252.3 31.7 432.8 357.4 21.1
Special charges related to cost
savings initiative............. - (1.6) (0.5) (1.6)
--------- --------- --------- ---------
Total.......................... $ 332.4 $ 250.7 32.6% $ 432.3 $ 355.8 21.5%
========= ========= ========= =========
By Product Category:
Skin Care........................ $ 148.8 $ 133.3 11.6% $ 191.7 $ 172.1 11.4%
Makeup........................... 128.6 92.5 39.0 178.5 153.0 16.7
Fragrance........................ 37.4 17.9 100.0+ 42.5 16.9 100.0+
Hair Care........................ 15.6 7.5 100.0+ 19.5 12.8 52.3
Other............................ 2.0 1.1 81.8 0.6 2.6 (76.9)
--------- --------- --------- ---------
Subtotal....................... 332.4 252.3 31.7 432.8 357.4 21.1
Special charges related to cost
savings initiative............. - (1.6) (0.5) (1.6)
--------- --------- --------- ---------
Total.......................... $ 332.4 $ 250.7 32.6% $ 432.3 $ 355.8 21.5%
========= ========= ========= =========
Page 8 of 9
THE ESTEE LAUDER COMPANIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; In millions)
December 31 June 30 December 31
2006 2006 2005
---- ---- ----
ASSETS
Current Assets
Cash and cash equivalents.............................................. $ 251.8 $ 368.6 $ 370.3
Accounts receivable, net............................................... 1,005.1 771.2 832.3
Inventory and promotional merchandise, net............................. 783.0 766.3 726.6
Prepaid expenses and other current assets.............................. 287.1 270.8 227.6
Assets related to discontinued operations.............................. - - 44.8
--------- --------- ---------
Total Current Assets.............................................. 2,327.0 2,176.9 2,201.6
--------- --------- ---------
Property, Plant and Equipment, net..................................... 807.5 758.0 693.2
Other Assets ......................................................... 907.4 849.2 806.2
--------- --------- ---------
Total Assets...................................................... $ 4,041.9 $ 3,784.1 $ 3,701.0
========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-term debt........................................................ $ 189.9 $ 89.7 $ 209.6
Accounts payable....................................................... 287.4 264.5 244.6
Other current liabilities.............................................. 1,240.2 1,084.0 1,071.7
Liabilities related to discontinued operations......................... - - 4.8
--------- --------- ---------
Total Current Liabilities......................................... 1,717.5 1,438.2 1,530.7
--------- --------- ---------
Noncurrent Liabilities
Long-term debt......................................................... 439.3 431.8 441.6
Other noncurrent liabilities and minority interest..................... 269.6 291.8 241.1
Total Stockholders' Equity............................................. 1,615.5 1,622.3 1,487.6
--------- --------- ---------
Total Liabilities and Stockholders' Equity........................ $ 4,041.9 $ 3,784.1 $ 3,701.0
========= ========= =========
SELECTED CASH FLOW DATA
(Unaudited; In millions)
Six Months Ended
December 31
---------------------
2006 2005
---- ----
Cash Flows from Operating Activities
Net earnings......................................................................... $ 266.7 $ 140.2
Depreciation and amortization........................................................ 103.8 97.1
Deferred income taxes................................................................ (12.4) (18.6)
Discontinued operations.............................................................. (0.2) 72.0
Other items.......................................................................... 32.7 27.0
Changes in operating assets and liabilities:
Increase in accounts receivable, net............................................. (212.5) (76.0)
Decrease (increase) in inventory and promotional merchandise, net................ (6.5) 23.8
Increase in accounts payable and other accrued liabilities....................... 171.6 132.3
Other operating assets and liabilities, net...................................... (30.5) (9.1)
-------- --------
Net cash flows provided by operating activities of continuing operations....... $ 312.7 $ 388.7
======== ========
Capital expenditures................................................................. $ 140.5 $ 104.0
Payments to acquire treasury stock................................................... 254.3 305.8
Dividends paid....................................................................... 103.6 85.4
###
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