Proceeds from purchase price refund

[Table of Contents](#i2ba0bd92bcb14d27a1d59d9667569d45_7)  
THE ESTÉE LAUDER COMPANIES INC.CONSOLIDATED STATEMENTS OF CASH FLOWS

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  | Year Ended June 30 |
| (In millions) |  | 2022 |  | 2021 |  | 2020 |
|  |  |  |  |  |  |  |
| Cash flows from operating activities |  |   |  |   |  |   |
| Net earnings |  | $ | 2,408  |  |  | $ | 2,875  |  |  | $ | 696  |  |
| Adjustments to reconcile net earnings to net cash flows from operating activities: |  |  |  |  |  |  |
| Depreciation and amortization |  | 727  |  |  | 651  |  |  | 611  |  |
| Deferred income taxes |  | (149) |  |  | (230) |  |  | (143) |  |
| Non-cash stock-based compensation |  | 331  |  |  | 327  |  |  | 213  |  |
| Net loss on disposal of property, plant and equipment |  | 8  |  |  | 23  |  |  | 20  |  |
| Non-cash restructuring and other charges |  | 14  |  |  | 76  |  |  | 20  |  |
| Pension and post-retirement benefit expense |  | 78  |  |  | 95  |  |  | 82  |  |
| Pension and post-retirement benefit contributions |  | (56) |  |  | (59) |  |  | (73) |  |
| Goodwill, other intangible and long-lived asset impairments |  | 241  |  |  | 188  |  |  | 1,426  |  |
| Changes in fair value of contingent consideration |  | —  |  |  | (2) |  |  | (17) |  |
|  |  |  |  |  |  |  |
| Gain on previously held equity method investment |  | (1) |  |  | (847) |  |  | (534) |  |
| Other non-cash items |  | (7) |  |  | (20) |  |  | (10) |  |
| Changes in operating assets and liabilities: |  |  |  |  |  |  |
| Decrease (increase) in accounts receivable, net |  | (10) |  |  | (398) |  |  | 625  |  |
| Increase in inventory and promotional merchandise |  | (602) |  |  | (140) |  |  | (3) |  |
| Decrease (increase) in other assets, net |  | (101) |  |  | 13  |  |  | (212) |  |
| Increase (decrease) in accounts payable |  | 210  |  |  | 440  |  |  | (308) |  |
| Increase (decrease) in other accrued and noncurrent liabilities |  | 1  |  |  | 695  |  |  | (169) |  |
| Increase (decrease) in operating lease assets and liabilities, net |  | (52) |  |  | (56) |  |  | 56  |  |
| Net cash flows provided by operating activities |  | 3,040  |  |  | 3,631  |  |  | 2,280  |  |
| Cash flows from investing activities |  |  |  |  |  |  |
| Capital expenditures |  | (1,040) |  |  | (637) |  |  | (623) |  |
| Proceeds from purchase price refund |  | —  |  |  | 32  |  |  | —  |  |
| Payments for acquired businesses, net of cash acquired |  | (3) |  |  | (1,065) |  |  | (1,047) |  |
|  |  |  |  |  |  |  |
| Purchases of investments |  | (10) |  |  | (42) |  |  | (5) |  |
|  |  |  |  |  |  |  |
| Settlement of net investment hedges |  | 108  |  |  | (152) |  |  | (23) |  |
| Net cash flows used for investing activities |  | (945) |  |  | (1,864) |  |  | (1,698) |  |
| Cash flows from financing activities |  |  |  |  |  |  |
| Proceeds (repayments) of current debt, net |  | (4) |  |  | (744) |  |  | 755  |  |
| Proceeds from issuance of long-term debt, net |  | —  |  |  | 596  |  |  | 2,481  |  |
| Debt issuance costs |  | (1) |  |  | (4) |  |  | (18) |  |
| Repayments and redemptions of long-term debt |  | (18) |  |  | (459) |  |  | (513) |  |
| Net proceeds from stock-based compensation transactions |  | 151  |  |  | 215  |  |  | 180  |  |
| Payment for acquisition of noncontrolling interest |  | (15) |  |  | —  |  |  | —  |  |
| Payments to acquire treasury stock |  | (2,309) |  |  | (733) |  |  | (893) |  |
| Dividends paid to stockholders |  | (840) |  |  | (753) |  |  | (503) |  |
| Payments to noncontrolling interest holders for dividends |  | —  |  |  | (8) |  |  | (10) |  |
| Payments of contingent consideration |  | —  |  |  | (2) |  |  | (18) |  |
|  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |
| Net cash flows provided by (used for) financing activities |  | (3,036) |  |  | (1,892) |  |  | 1,461  |  |
|  |  |  |  |  |  |  |
| Effect of exchange rate changes on Cash and cash equivalents |  | (60) |  |  | 61  |  |  | (8) |  |
| Net increase (decrease) in Cash and cash equivalents |  | (1,001) |  |  | (64) |  |  | 2,035  |  |
| Cash and cash equivalents at beginning of year |  | 4,958  |  |  | 5,022  |  |  | 2,987  |  |
|  |  |  |  |  |  |  |
| Cash and cash equivalents at end of year |  | $ | 3,957  |  |  | $ | 4,958  |  |  | $ | 5,022  |  |

See notes to consolidated financial statements.F-10
