2023 Q2 Form 10-K Financial Statement

#000100125023000112 Filed on August 18, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023
Revenue $3.609B $15.91B
YoY Change 1.35% -10.3%
Cost Of Revenue $1.163B $4.564B
YoY Change 12.8% 6.02%
Gross Profit $2.446B $11.35B
YoY Change -3.32% -15.53%
Gross Profit Margin 67.78% 71.31%
Selling, General & Admin $2.420B $9.575B
YoY Change 3.68% -3.17%
% of Gross Profit 98.94% 84.39%
Research & Development $344.0M
YoY Change 12.05%
% of Gross Profit 3.03%
Depreciation & Amortization $196.0M $744.0M
YoY Change 8.29% 2.34%
% of Gross Profit 8.01% 6.56%
Operating Expenses $2.420B $9.837B
YoY Change 3.68% -4.14%
Operating Profit $26.00M $1.509B
YoY Change -86.73% -52.4%
Interest Expense -$46.00M $255.0M
YoY Change 48.39% 52.69%
% of Operating Profit -176.92% 16.9%
Other Income/Expense, Net $3.000M $12.00M
YoY Change 500.0%
Pretax Income -$48.00M $1.397B
YoY Change -200.0% -53.99%
Income Tax -$16.00M $387.0M
% Of Pretax Income 27.7%
Net Earnings -$33.00M $1.010B
YoY Change -163.46% -58.06%
Net Earnings / Revenue -0.91% 6.35%
Basic Earnings Per Share $2.81
Diluted Earnings Per Share -$0.09 $2.79
COMMON SHARES
Basic Shares Outstanding 357.9M shares
Diluted Shares Outstanding 360.9M shares

Balance Sheet

Concept 2023 Q2 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.029B $4.029B
YoY Change 1.82% 1.82%
Cash & Equivalents $4.029B $4.029B
Short-Term Investments
Other Short-Term Assets $679.0M $679.0M
YoY Change -14.27% -14.27%
Inventory $2.979B $2.979B
Prepaid Expenses
Receivables $1.452B $1.452B
Other Receivables $0.00 $0.00
Total Short-Term Assets $9.139B $9.139B
YoY Change -1.71% -1.71%
LONG-TERM ASSETS
Property, Plant & Equipment $3.179B $4.976B
YoY Change 19.96% 8.2%
Goodwill $2.486B
YoY Change -1.39%
Intangibles $5.602B
YoY Change 63.42%
Long-Term Investments
YoY Change
Other Assets $1.212B $9.300B
YoY Change 13.91% 774.06%
Total Long-Term Assets $14.28B $14.28B
YoY Change 22.94% 22.94%
TOTAL ASSETS
Total Short-Term Assets $9.139B $9.139B
Total Long-Term Assets $14.28B $14.28B
Total Assets $23.42B $23.42B
YoY Change 11.98% 11.98%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.670B $1.670B
YoY Change -8.34% -8.34%
Accrued Expenses $3.573B $3.573B
YoY Change 4.69% 4.69%
Deferred Revenue $323.0M
YoY Change 3.53%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $997.0M $997.0M
YoY Change 272.01% 272.01%
Total Short-Term Liabilities $6.240B $6.240B
YoY Change 7.31% 7.31%
LONG-TERM LIABILITIES
Long-Term Debt $7.117B $7.117B
YoY Change 38.36% 38.36%
Other Long-Term Liabilities $1.943B $3.641B
YoY Change 17.69% 3.47%
Total Long-Term Liabilities $10.76B $10.76B
YoY Change 24.18% 24.18%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.240B $6.240B
Total Long-Term Liabilities $10.76B $10.76B
Total Liabilities $17.00B $17.83B
YoY Change 17.41% 16.38%
SHAREHOLDERS EQUITY
Retained Earnings $13.99B
YoY Change 0.57%
Common Stock $6.159B
YoY Change 6.15%
Preferred Stock
YoY Change
Treasury Stock (at cost) $13.63B
YoY Change 2.01%
Treasury Stock Shares
Shareholders Equity $5.585B $5.585B
YoY Change
Total Liabilities & Shareholders Equity $23.42B $23.42B
YoY Change 11.98% 11.98%

Cashflow Statement

Concept 2023 Q2 2023
OPERATING ACTIVITIES
Net Income -$33.00M $1.010B
YoY Change -163.46% -58.06%
Depreciation, Depletion And Amortization $196.0M $744.0M
YoY Change 8.29% 2.34%
Cash From Operating Activities $714.0M $1.731B
YoY Change -33.33% -43.06%
INVESTING ACTIVITIES
Capital Expenditures $2.629B $1.003B
YoY Change -788.22% -3.56%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities -$61.00M $72.00M
YoY Change -24.21%
Cash From Investing Activities -$2.690B -$3.217B
YoY Change 604.19% 240.42%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $271.0M
YoY Change -88.26%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 500.0M $1.590B
YoY Change -196.15% -152.37%
NET CHANGE
Cash From Operating Activities 714.0M $1.731B
Cash From Investing Activities -2.690B -$3.217B
Cash From Financing Activities 500.0M $1.590B
Net Change In Cash -1.476B $72.00M
YoY Change -973.37% -107.19%
FREE CASH FLOW
Cash From Operating Activities $714.0M $1.731B
Capital Expenditures $2.629B $1.003B
Free Cash Flow -$1.915B $728.0M
YoY Change -231.8% -63.6%

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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, La Mer, Bobbi Brown Cosmetics</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 Paris, TOM FORD, Smashbox, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, Kilian Paris, Too Faced, Dr.Jart+, and The Ordinary. The Estée Lauder Companies Inc. is also the global licensee of the AERIN and BALMAIN brand names for fragrances and cosmetics.</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 and asset acquisitions, 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 will be reflected in the consolidated financial statements in future periods.</span></div>
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