Expected employer contributions for year ending June 30, 2023

[Table of Contents](#i2ba0bd92bcb14d27a1d59d9667569d45_7)THE ESTÉE LAUDER COMPANIES INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTSThe expected cash flows for the Company’s pension and post-retirement plans are as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Pension Plans |  | Other thanPension Plans |
| (In millions) |  | U.S. |  | International |  | Post-retirement |
| Expected employer contributions for year ending June 30, 2023 |  | $ | —  |  |  | $ | 26  |  |  | $ | —  |  |
| Expected benefit payments for year ending June 30, |  |  |  |  |  |  |
| 2023 |  | 69  |  |  | 35  |  |  | 10  |  |
| 2024 |  | 52  |  |  | 34  |  |  | 10  |  |
| 2025 |  | 53  |  |  | 34  |  |  | 11  |  |
| 2026 |  | 53  |  |  | 33  |  |  | 11  |  |
| 2027 |  | 54  |  |  | 32  |  |  | 12  |  |
| Years 2028 – 2032 |  | 302  |  |  | 159  |  |  | 67  |  |

  
Plan AssetsThe Company’s investment strategy for its pension and post-retirement plan assets is to maintain a diversified portfolio of asset classes with the primary goal of meeting long-term cash requirements as they become due. Assets are primarily invested in diversified funds that hold equity or debt securities to maintain the security of the funds while maximizing the returns within each plan’s investment policy. The investment policy for each plan specifies the type of investment vehicles appropriate for the plan, asset allocation guidelines, criteria for selection of investment managers and procedures to monitor overall investment performance, as well as investment manager performance.  
The Company’s target asset allocation at June 30, 2022 is as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Pension Plans |  | Other thanPension Plans |
|  |  | U.S. |  | International |  | Post-retirement |
| Equity |  | 42  | % |  | 14  | % |  | 42  | % |
| Debt securities |  | 50  | % |  | 60  | % |  | 50  | % |
| Other |  | 8  | % |  | 26  | % |  | 8  | % |
|  |  | 100  | % |  | 100  | % |  | 100  | % |

  
The following is a description of the valuation methodologies used for plan assets measured at fair value:Cash and Cash Equivalents – Cash and all highly-liquid securities with original maturities of three months or less are classified as cash and cash equivalents, primarily consisting of cash deposits in interest bearing accounts, time deposits and money market funds. These assets are classified within Level 1 of the valuation hierarchy.Short-term investment funds – The fair values are determined using the Net Asset Value (“NAV”) provided by the administrator of the fund when the Company has the ability to redeem the assets at the measurement date. These assets are classified within Level 2 of the valuation hierarchy. For some assets the Company is utilizing the NAV as a practical expedient and those investments are not included in the valuation hierarchy.Government and agency securities – The fair values are determined using third-party pricing services using market prices or prices derived from observable market inputs such as benchmark curves, broker/dealer quotes, and other industry and economic factors. These investments are classified within Level 2 of the valuation hierarchy.  
F-60
