Name: Estée Lauder Cos. Inc. (NYSE:EL) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Estée Lauder Cos. Inc., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Net earnings	1,010)	2,408)	2,875)	696)	1,794)	1,117)
Net unrealized investment gain (loss)	—)	—)	—)	—)	14)	(13)
Net cash flow hedge gain (loss)	(4)	70)	(16)	(7)	(18)	40)
Cross-currency swap contract loss	(20)	—)	—)	—)	—)	—)
Retirement plan and other retiree benefit adjustments	(62)	65)	65)	11)	(80)	73)
Translation adjustments	(100)	(456)	130)	(106)	(45)	(18)
Other comprehensive income (loss), net of tax	(186)	(321)	179)	(102)	(129)	82)
Comprehensive income	824)	2,087)	3,054)	594)	1,665)	1,199)
Comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interest	10)	11)	11)	(12)	(9)	(9)
Comprehensive income attributable to The Estée Lauder Companies Inc.	834)	2,098)	3,065)	582)	1,656)	1,190)

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

Financial performance over the six-year period from 2018 to 2023 is characterized by significant volatility in both net earnings and comprehensive income. A notable cycle of contraction and expansion is evident, with a sharp decline in 2020 followed by a peak in 2021 and a subsequent downward trend through 2023.

Net Earnings Trends: Net earnings exhibited substantial fluctuations, rising from 1,117 million USD in 2018 to a peak of 2,875 million USD in 2021. A significant contraction occurred in 2020, where earnings fell to 696 million USD. Following the 2021 peak, a steady decline is observed, with 2023 earnings falling to 1,010 million USD, effectively returning to 2018 levels.
Other Comprehensive Income (OCI) and Volatility: Other comprehensive income has been highly unstable, shifting between gains and losses. Translation adjustments served as the primary driver of this volatility, notably recording a significant loss of 456 million USD in 2022 and 100 million USD in 2023, contrasted by a gain of 130 million USD in 2021. These patterns suggest a high sensitivity to foreign currency exchange rate fluctuations.
Comprehensive Income Analysis: Total comprehensive income followed the general trajectory of net earnings but was modified by OCI components. The highest comprehensive income was recorded in 2021 at 3,054 million USD. However, by 2023, this figure decreased to 824 million USD, representing a substantial reduction from the 2021 high. The impact of noncontrolling interests remained minimal and relatively stable throughout the period, typically ranging between 9 million USD and 12 million USD.
Specific Adjustment Patterns: Cash flow hedge gains and losses remained relatively small compared to overall earnings, though a peak gain of 70 million USD was noted in 2022. Retirement plan adjustments showed inconsistency, moving from a gain of 65 million USD in 2022 to a loss of 62 million USD in 2023. Additionally, a cross-currency swap contract loss of 20 million USD first appeared in the 2023 reporting period.

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