2022 Q2 Form 10-K Financial Statement

#000100125022000122 Filed on August 24, 2022

View on sec.gov

Income Statement

Concept 2022 Q2 2022 2021 Q2
Revenue $3.561B $17.74B $3.936B
YoY Change -9.53% 9.39% 61.98%
Cost Of Revenue $1.031B $4.305B $986.0M
YoY Change 4.56% 12.28% 28.55%
Gross Profit $2.530B $13.43B $2.950B
YoY Change -14.24% 8.49% 77.39%
Gross Profit Margin 71.05% 75.73% 74.95%
Selling, General & Admin $2.334B $9.888B $2.610B
YoY Change -10.57% 5.52% 38.54%
% of Gross Profit 92.25% 73.62% 88.47%
Research & Development $307.0M
YoY Change 26.34%
% of Gross Profit 2.29%
Depreciation & Amortization $181.0M $727.0M $176.0M
YoY Change 2.84% 11.67% 7.32%
% of Gross Profit 7.15% 5.41% 5.97%
Operating Expenses $2.334B $10.26B $2.610B
YoY Change -10.57% 5.11% 38.54%
Operating Profit $196.0M $3.170B $340.0M
YoY Change -42.35% 21.08% -162.62%
Interest Expense -$31.00M $167.0M -$31.00M
YoY Change 0.0% -3.47% -49.18%
% of Operating Profit -15.82% 5.27% -9.12%
Other Income/Expense, Net $0.00 $2.000M $847.0M
YoY Change -100.0% -116.67% -84800.0%
Pretax Income $48.00M $3.036B $1.050B
YoY Change -95.43% -8.86% -273.55%
Income Tax -$2.000M $628.0M $35.00M
% Of Pretax Income -4.17% 20.69% 3.33%
Net Earnings $52.00M $2.408B $1.018B
YoY Change -94.89% -16.24% -320.35%
Net Earnings / Revenue 1.46% 13.58% 25.86%
Basic Earnings Per Share $6.64
Diluted Earnings Per Share $143.6K $6.55 $2.763M
COMMON SHARES
Basic Shares Outstanding 360.0M shares
Diluted Shares Outstanding 364.9M shares

Balance Sheet

Concept 2022 Q2 2022 2021 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.957B $3.957B $4.958B
YoY Change -20.19% -20.19% -1.27%
Cash & Equivalents $3.957B $3.957B $4.958B
Short-Term Investments
Other Short-Term Assets $792.0M $792.0M $603.0M
YoY Change 31.34% 31.34% -1.79%
Inventory $2.920B $2.920B $2.505B
Prepaid Expenses
Receivables $1.629B $1.629B $1.702B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $9.298B $9.298B $9.768B
YoY Change -4.81% -4.81% 9.85%
LONG-TERM ASSETS
Property, Plant & Equipment $2.650B $4.599B $2.280B
YoY Change 16.23% 2.89% 10.95%
Goodwill $2.521B $2.616B
YoY Change -3.63% 86.72%
Intangibles $3.428B $4.095B
YoY Change -16.29% 75.15%
Long-Term Investments
YoY Change
Other Assets $1.064B $1.064B $1.022B
YoY Change 4.11% 4.11% 25.71%
Total Long-Term Assets $11.61B $11.61B $12.20B
YoY Change -4.84% -4.84% 37.28%
TOTAL ASSETS
Total Short-Term Assets $9.298B $9.298B $9.768B
Total Long-Term Assets $11.61B $11.61B $12.20B
Total Assets $20.91B $20.91B $21.97B
YoY Change -4.83% -4.83% 23.56%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.822B $1.822B $1.692B
YoY Change 7.68% 7.68% 43.76%
Accrued Expenses $3.413B $3.413B $3.252B
YoY Change 4.95% 4.95% 27.13%
Deferred Revenue $312.0M $322.0M
YoY Change -3.11% 45.05%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $268.0M $268.0M $32.00M
YoY Change 737.5% 737.5% -97.38%
Total Short-Term Liabilities $5.815B $5.815B $5.298B
YoY Change 9.76% 9.76% 2.3%
LONG-TERM LIABILITIES
Long-Term Debt $5.144B $5.144B $5.537B
YoY Change -7.1% -7.1% 12.68%
Other Long-Term Liabilities $1.651B $3.519B $2.037B
YoY Change -18.95% -15.97% 40.68%
Total Long-Term Liabilities $8.663B $8.663B $9.725B
YoY Change -10.92% -10.92% 12.56%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.815B $5.815B $5.298B
Total Long-Term Liabilities $8.663B $8.663B $9.725B
Total Liabilities $14.48B $15.32B $15.02B
YoY Change -3.63% -3.73% 8.71%
SHAREHOLDERS EQUITY
Retained Earnings $13.91B $12.24B
YoY Change 13.62% 20.82%
Common Stock $5.802B $5.341B
YoY Change 8.63% 11.36%
Preferred Stock
YoY Change
Treasury Stock (at cost) $13.36B $11.06B
YoY Change 20.84% 7.05%
Treasury Stock Shares 236.4M shares 229.1M shares
Shareholders Equity $5.590B $5.590B $6.057B
YoY Change
Total Liabilities & Shareholders Equity $20.91B $20.91B $21.97B
YoY Change -4.83% -4.83% 23.56%

Cashflow Statement

Concept 2022 Q2 2022 2021 Q2
OPERATING ACTIVITIES
Net Income $52.00M $2.408B $1.018B
YoY Change -94.89% -16.24% -320.35%
Depreciation, Depletion And Amortization $181.0M $727.0M $176.0M
YoY Change 2.84% 11.67% 7.32%
Cash From Operating Activities $1.071B $3.040B $854.0M
YoY Change 25.41% -16.28% 154.93%
INVESTING ACTIVITIES
Capital Expenditures -$382.0M $1.040B -$251.0M
YoY Change 52.19% 63.27% 61.94%
Acquisitions $3.000M
YoY Change -99.72%
Other Investing Activities $0.00 $95.00M -$1.036B
YoY Change -100.0% -107.74% -7500.0%
Cash From Investing Activities -$382.0M -$945.0M -$1.287B
YoY Change -70.32% -49.3% 812.77%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $2.309B
YoY Change 215.01%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -520.0M -$3.036B -1.030B
YoY Change -49.51% 60.47% 1509.38%
NET CHANGE
Cash From Operating Activities 1.071B $3.040B 854.0M
Cash From Investing Activities -382.0M -$945.0M -1.287B
Cash From Financing Activities -520.0M -$3.036B -1.030B
Net Change In Cash 169.0M -$1.001B -1.463B
YoY Change -111.55% 1464.06% -1225.38%
FREE CASH FLOW
Cash From Operating Activities $1.071B $3.040B $854.0M
Capital Expenditures -$382.0M $1.040B -$251.0M
Free Cash Flow $1.453B $2.000B $1.105B
YoY Change 31.49% -33.2% 125.51%

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DESCRIPTION OF BUSINESS<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Estée Lauder Companies Inc. manufactures, markets and sells skin care, makeup, fragrance and hair care products around the world. Products are marketed under owned brand names, including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, M·A·C, Bobbi Brown</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">,</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> La Mer</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">,</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> Aveda, Jo Malone London, Bumble and bumble, Darphin, Smashbox, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, Kilian Paris, Too Faced, Dr.Jart+, DECIEM and The Ordinary. Certain subsidiaries of The Estée Lauder Companies Inc. are also the global licensee of brand names for fragrances and/or cosmetics, including Tom Ford and AERIN.</span>
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<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Management Estimates</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses reported in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, pension and other post-retirement benefit costs, business combinations, goodwill, other intangible assets and long-lived assets, income taxes, redeemable noncontrolling interest and Deciem Beauty Group Inc. (“DECIEM”) stock options. Management evaluates the related estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates and assumptions resulting from continuing changes in the economic environment, including those related to the impacts of the COVID-19 pandemic, will be reflected in the consolidated financial statements in future periods.</span></div>
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<div style="margin-bottom:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentration of Credit Risk</span></div><div style="margin-bottom:12pt;margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company is a worldwide manufacturer, marketer and seller of skin care, makeup, fragrance and hair care products. The Company’s sales subject to credit risk are made primarily to retailers in its travel retail business, department stores, specialty multi-brand retailers and perfumeries. The Company grants credit to qualified customers. As a result of the COVID-19 pandemic, the Company has enhanced its assessment of its customers' abilities to pay with a greater focus on factors affecting their liquidity and less on historical payment performance. While the Company does not believe it is exposed significantly to any undue concentration of credit risk at this time, it continues to monitor the extent of the impact of the COVID-19 pandemic on its customers' abilities, individually and collectively, to make timely payments.</span></div>
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