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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
July 13, 2006
The Estee Lauder Companies Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-14064 11-2408943
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
767 Fifth Avenue, New York, New York 10153
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
212-572-4200
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
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ITEM 8.01 Other Events.
On July 13, 2006, The Estee Lauder Companies Inc. (the "Company") announced
that it has reached a settlement with the Internal Revenue Service regarding its
examination of the Company's consolidated Federal income tax returns for the
fiscal years ended June 30, 1998 through June 30, 2001. A copy of the press
release, which includes descriptions of (a) the settlement, (b) an adjustment to
the charge taken in fiscal 2005 relating to the repatriation of foreign earnings
through intercompany dividends under the provisions of the American Jobs
Creation Act of 2004 and (c) the financial statement impacts of the settlement
and the adjustment, is filed with this Form 8-K as Exhibit 99.1 and is
incorporated herein by reference.
ITEM 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
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99.1 Press release dated July 13, 2006 of The Estee
Lauder Companies Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
THE ESTEE LAUDER COMPANIES INC.
Date: July 13, 2006 By: /s/Richard W. Kunes
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Richard W. Kunes
Executive Vice President
and Chief Financial Officer
(Principal Financial and
Accounting Officer)
THE ESTEE LAUDER COMPANIES INC.
EXHIBIT INDEX
Exhibit No. Description
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99.1 Press release dated July 13, 2006 of The Estee Lauder
Companies Inc.
Exhibit 99.1
THE ESTEE LAUDER News
COMPANIES INC. Contact:
Investor Relations:
Dennis D'Andrea
(212) 572-4384
767 Fifth Avenue
New York, NY 10153
Media Relations:
Sally Susman
(212) 572-4430
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FOR IMMEDIATE RELEASE:
ESTEE LAUDER COMPANIES ANNOUNCES SETTLEMENT WITH IRS
New York - July 13, 2006 - The Estee Lauder Companies Inc. (NYSE: EL) today
announced that it has reached a settlement with the Internal Revenue Service
(IRS) regarding its examination of the Company's consolidated Federal income tax
returns for the fiscal years ended June 30, 1998 through June 30, 2001.
The settlement resolves previously disclosed issues raised during the IRS's
examination, including transfer pricing and foreign tax credit computations.
While the settlement concludes the audit for fiscal years 1998 through 2001, the
statement of earnings impact related to these issues also has been computed for
all subsequent periods and the aggregate impact is recorded in the fiscal year
ended June 30, 2006. The settlement resulted in an increase to the Company's
fiscal 2006 income tax provision and a corresponding decrease in fiscal 2006 net
earnings of approximately $46 million, or approximately $.21 per diluted common
share.
In anticipation of the settlement, the Company made a cash payment to the U.S.
Treasury of approximately $70 million on June 30, 2006. The payment, which
reflected additional taxes and interest, represented the Company's liability for
all issues under the examination period, as well as for settlement of the
transfer pricing issue for the fiscal years ended June 30, 2002 through June 30,
2004.
In addition, during the fourth quarter of fiscal 2006, the Company completed the
repatriation of foreign earnings through intercompany dividends as required
under the provisions of the American Jobs Creation Act of 2004 (AJCA). In
connection with the repatriation, the Company finalized computations of the
related aggregate tax impact, resulting in a favorable adjustment of
approximately $11 million, or approximately $.05 per diluted common share, to
the Company's initial tax charge of $35 million recorded in fiscal 2005.
The tax settlement, coupled with the AJCA favorable tax adjustment, resulted in
a net increase to the Company's fiscal 2006 income tax provision and a
corresponding decrease in fiscal 2006 net earnings of approximately $35 million,
or approximately $.16 per diluted common share.
The Company expects to announce its results for the quarter and fiscal year
ended June 30, 2006 on August 16, 2006.
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, 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(TM), Sean John, Missoni and Daisy Fuentes.
An electronic version of this release can be found at the Company's website,
www.elcompanies.com.
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