Estée Lauder Companies Inc. has recently released its 10-K report for the fiscal year ended June 30, 2025. The company, founded in 1946 and headquartered in New York, is a global leader in the manufacturing, marketing, and selling of skin care, makeup, fragrance, and hair care products. Its extensive product portfolio includes offerings under well-known brands such as Estée Lauder, Clinique, Origins, M·A·C, and Bobbi Brown Cosmetics, among others.
In the 10-K report, the company's management provides a detailed discussion of the financial condition and results of operations for the fiscal year. This includes information on dividends, pension and post-retirement plan funding, commitments and contingencies, contractual obligations, derivative financial instruments and hedging activities, foreign exchange risk management, credit risk, and market risk. Notably, the company addresses its market risk exposure through a controlled program of market risk management, including the use of foreign currency forward contracts, cross-currency swap contracts, and interest rate derivatives to mitigate the effects of fluctuating foreign currency exchange rates and interest rate movements.
The report also delves into the company's critical accounting policies and estimates, particularly regarding the impairment assessment of goodwill and other indefinite-lived intangible assets, as well as income taxes. Estée Lauder Companies Inc. discusses its approach to testing goodwill for impairment, including the option of first performing a qualitative assessment to determine the need for a quantitative impairment test. Additionally, the report provides insights into the company's valuation methods and factors considered in the impairment testing process.
Furthermore, the 10-K report addresses the calculation and provision for income taxes in each tax jurisdiction in which the company operates. It highlights the significant judgment required in determining the annual tax expense and evaluating tax positions, as well as the recognition of deferred tax assets and liabilities for future tax consequences.
As a result of these announcements, the company's shares have moved -4.48% on the market, and are now trading at a price of $85.84. If you want to know more, read the company's complete 10-K report here.
