The Estee Lauder Companies Inc Case Study

The Estee Lauder Companies Inc.

Condensed Consolidated Statements of Earnings

Year Ended June 30

(In millions)

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

Net Sales $8,810.0 $7,795.8 $7,323.8 $7,910.8 $7,037.5 $6,463.8 $6,280.0 $5,741.5 $5,049.8 $4,671.7

% Increase as reported 13.0% 6.4% -7.4% 12.4% 8.9% 2.9% 9.4% 13.7% 8.1% 1.5%

% Increase excluding currency * 11.7% 4.7% -2.5% 8.2% 6.7% 4.0% 6.8% 9.4% 4.4% 2.4%

Operating Income $1,089.4 $789.9 $418.4 $810.7 $749.9 $619.6 $726.8 $648.9 $508.8 $345.2

% Increase as reported 37.9% 88.8% -48.4% 8.1% 21.0% -14.7% 12.0% 27.5% 47.4% -34.0%

% of sales 12.4% 10.1% 5.7% 10.3% 10.7% 9.6% 11.6% 11.3% 10.1% 7.4%

Net Earnings from continuing operations $703.8 $482.4 $226.8 $484.0 $455.8 $336.1 $419.2 $387.4 $335.8 $219.8

% Increase as reported 45.9% 112.7% -53.1% 6.2% 35.6% -19.8% 8.2% 15.4% 52.8% -32.9%

% of sales 8.0% 6.2% 3.1% 6.1% 6.5% 5.2% 6.7% 6.7% 6.6% 4.7%

Fiscal 2011 includes returns and charges associated with restructuring activities of $59.4 million ($41.7 million after tax) related to the Company's long-term, multi-faceted cost savings program, equal to $.21 per diluted common share.

Fiscal 2010 includes returns and charges associated with restructuring activities of $84.7 million ($55.9 million after tax) related to the Company's long-term, multi-faceted cost savings program and a pretax charge of $27.3 million ($17.5 million after tax) related to the early extinguishment of debt, equal to $.37 per diluted share in aggregate.

Fiscal 2009 includes returns and charges associated with restructuring activities