SELECTED FINANCIAL DATA The table below summarizes selected financial information. For further information, refer to the audited consolidated financial statements and the notes thereto beginning on page 56 of this report. THEEST{E LAUDER COMPANIES INC. 37 (a)Effective January 1, 2002, we adopted Emerging Issues Task Force (“EITF”) Issue No. 01-9, “Accounting for Consideration Given by a Vendor to a Customer.” Upon adoption of this Issue, we reclassified revenues generated from our purchase with purchase activities as sales and the costs of our purchase with purchase and gift with purchase activities as cost of sales, which were previously reported net as operating expenses. Operating income has remained unchanged by this adoption. For purposes of comparability, these reclassifications have been reflected retroactively for all periods presented. (b)Net earnings, net earnings attributable to common stock and net earnings per common share for the year ended June 30, 2003 included a special charge related to the proposed settlement of a legal action of $13.5 million, after-tax, or $.06 per diluted common share. (c)Net earnings, net earnings attributable to common stock and net earnings per common share for the year ended June 30, 2002 included a restructuring charge of $76.9 million, after-tax, or $.32 per diluted common share, and a one-time charge of $20.6 million, or $.08 per diluted common share,attributable to the cumulative effect of adopting Statement of Financial Accounting Standards (“SFAS”) No. 142, “Goodwill and Other  Intangible Assets.” (d)Net earnings, net earnings attributable to common stock and net earnings per common share for the year ended June 30, 2001 included restructuring and other non-recurring charges of $40.3 million, after-tax, or $.17 per diluted common share, and a one-time charge of $2.2 million, after-tax, or $.01 per diluted common share, attributable to the cumulative effect of adopting SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities.” YEAR ENDED ORATJUNE30 2003 2002 2001 2000 1999 (In millions, except per share data) STATEMENT OF EARNINGS DATA: Net sales (a) $5,117.6 $4,743.7 $4,667.7 $4,440.3 $4,040.3 Gross profit (a) 3,781.9 3,470.3 3,441.3 3,202.3 2,877.5 Operating income 495.1 341.4 495.6 515.8 456.9 Earnings before income taxes, minority interest and  accounting change 487.0 331.6 483.3 498.7 440.2 Net earnings 319.8 (b) 191.9 (c) 305.2 (d) 314.1 272.9 Preferred stock dividends 23.4 23.4 23.4 23.4 23.4 Net earnings attributable to common stock 296.4 (b) 168.5 (c) 281.8 (d) 290.7 249.5 CASH FLOW DATA: Net cash flows provided by operating activities $ 548.5 $ 518.0 $ 305.4 $ 442.5 $ 352.3 Net cash flows used for investing activities (192.5) (217.0) (206.3) (374.3) (200.3) Net cash flows used for financing activities (550.4) (121.8) (63.5) (87.9) (73.2) PER SHARE DATA: Net earnings per common share: Basic $ 1.27 (b) $ .71 (c) $ 1.18 (d) $ 1.22 $ 1.05 Diluted $ 1.26 (b) $ .70 (c) $ 1.16 (d) $ 1.20 $ 1.03 Weighted average common shares outstanding: Basic 232.6 238.2 238.4 237.7 237.0 Diluted 234.7 241.1 242.2 242.5 241.2 Cash dividends declared per common share $ .20 $ .20 $ .20 $ .20 $ .1775 BALANCE SHEET DATA: Working capital $ 791.3 $ 968.0 $ 882.2 $ 716.7 $ 708.0 Total assets 3,349.9 3,416.5 3,218.8 3,043.3 2,746.7 Total debt 291.4 410.5 416.7 425.4 429.1 Redeemable preferred stock 360.0 360.0 360.0 360.0 360.0 Stockholders’ equity 1,423.6 1,461.9 1,352.1 1,160.3 924.5