EQUITY

6 Months Ended

Dec. 31, 2020

Total Stockholders’ Equity – The Estée Lauder Companies Inc.


	Three Months Ended December 31				Six Months Ended December 31
(In millions)	2020		2019		2020		2019
Common stock, beginning of the period	$	6	$	6	$	6	$	6
Stock-based compensation	—		—		—		—
Common stock, end of the period	6		6		6		6

Paid-in capital, beginning of the period	4,913		4,514		4,790		4,403
Common stock dividends	—		1		1		2
Stock-based compensation	155		100		277		210
Paid-in capital, end of the period	5,068		4,615		5,068		4,615

Retained earnings, beginning of the period	10,480		10,393		10,134		9,984
Common stock dividends	(194)		(175)		(368)		(332)
Net earnings attributable to The Estée Lauder Companies Inc.	873		557		1,396		1,152
Cumulative effect of adoption of new accounting standards	—		—		(3)		(29)
Retained earnings, end of the period	11,159		10,775		11,159		10,775

Accumulated other comprehensive loss, beginning of the period	(594)		(627)		(665)		(563)
Other comprehensive income (loss)	211		58		282		(6)
Accumulated other comprehensive loss, end of the period	(383)		(569)		(383)		(569)

Treasury stock, beginning of the period	(10,353)		(9,756)		(10,330)		(9,444)
Acquisition of treasury stock	—		(426)		—		(703)
Stock-based compensation	(76)		(71)		(99)		(106)
Treasury stock, end of the period	(10,429)		(10,253)		(10,429)		(10,253)

Total stockholders’ equity – The Estée Lauder Companies Inc.	5,421		4,574		5,421		4,574

Noncontrolling interests, beginning of the period	29		28		27		25
Net earnings attributable to noncontrolling interests	4		4		6		7
Distribution to noncontrolling interest holders	—		(4)		—		(4)
Other comprehensive (income) loss	2		(1)		2		(1)
Noncontrolling interests, end of the period	35		27		35		27

Total equity	$	5,456	$	4,601	$	5,456	$	4,601

Cash dividends declared per common share	$	.53	$	.48	$	1.01	$	.91

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, 2020:

Date Declared

Record Date

Payable Date

Amount per Share

August 19, 2020

August 31, 2020

September 15, 2020

.48

October 30, 2020

November 30, 2020

December 15, 2020

.53

On February 4, 2021, a dividend was declared in the amount of $.53 per share on the Company’s Class A and Class B Common Stock. The dividend is payable in cash on March 15, 2021 to stockholders of record at the close of business on February 26, 2021.

Common Stock

Beginning in early February 2020, the Company temporarily suspended its repurchase of shares of the Company's Class A Common Stock. The Company may resume repurchases in the future.

During the six months ended December 31, 2020, approximately 2.2 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

The following table represents changes in AOCI, net of tax, by component for the six months ended December 31, 2020:


(In millions)	Net Cash Flow Hedge Gain (Loss)		Retirement Plan and Other Retiree Benefit Adjustments			Translation Adjustments			Total
Balance at June 30, 2020	$	14	$	(244)		$	(435)		$	(665)
OCI before reclassifications	(48)		(2)		(1)	318		(2)	268
Amounts reclassified to Net earnings	4		10			—			14
Net current-period OCI	(44)		8			318			282
Balance at December 31, 2020	$	(30)	$	(236)		$	(117)		$	(383)

(1)Consists of foreign currency translation losses.

(2)See Note 5 – Derivative Financial Instruments for gains (losses) relating to net investment hedges.

The following table represents the effects of reclassification adjustments from AOCI into net earnings for the three and six months ended December 31, 2020 and 2019:


	Amount Reclassified from AOCI								Affected Line Item in Consolidated Statements of Earnings
	Three Months Ended December 31				Six Months Ended December 31
(In millions)	2020		2019		2020		2019





Gain (Loss) on Cash Flow Hedges
Foreign currency forward contracts	$	(5)	$	6	$	(4)	$	19	Net sales
Interest rate-related derivatives	—		—		(1)		—		Interest expense
	(5)		6		(5)		19
Benefit (provision) for deferred taxes	1		(2)		1		(5)		Provision for income taxes
	$	(4)	$	4	(4)		$	14	Net earnings

Retirement Plan and Other Retiree Benefit Adjustments
Amortization of actuarial loss	$	(6)	$	(5)	$	(12)	$	(10)	Earnings before income taxes (1)
Benefit for deferred taxes	1		1		2		2		Provision for income taxes
	$	(5)	$	(4)	$	(10)	$	(8)	Net earnings

Cumulative Translation Adjustments
Gain on previously held equity method investment	$	—	$	4	$	—	$	4	Other income
Loss on liquidation of an investment in a foreign subsidiary	—		—		—		(6)		Restructuring and other charges

	$	—	$	4	—		$	(2)	Net earnings
Total reclassification adjustments, net	$	(9)	$	4	$	(14)	$	4	Net earnings

(1)See Note 8 – Pension and Post-Retirement Benefit Plans for additional information.