CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME See notes to consolidated financial statements. 57 THEEST{E LAUDER COMPANIES INC. YEAR ENDED JUNE 30 2003 2002 2001 (In millions) STOCKHOLDERS’EQUITY Common stock, beginning of year $ 2.4 $ 2.4 $ 2.4 Common stock, end of year 2.4 2.4 2.4 Paid-in capital, beginning of year 268.8 258.3 237.1 Stock compensation programs 24.9 10.5 21.2 Paid-in capital, end of year 293.7 268.8 258.3 Retained earnings, beginning of year 1,363.7 1,242.7 1,008.6 Preferred stock dividends (23.4) (23.4) (23.4) Common stock dividends (46.5) (47.5) (47.7) Net earnings for the year 319.8 191.9 305.2 Retained earnings, end of year 1,613.6 1,363.7 1,242.7 Accumulated other comprehensive loss, beginning of year (92.5) (120.5) (57.1) Other comprehensive income (loss) 39.4 28.0 (63.4) Accumulated other comprehensive loss, end of year (53.1) (92.5) (120.5) Treasury stock, beginning of year (80.5) (30.8) (30.7) Acquisition of treasury stock (352.5) (49.7) (0.1) Treasury stock, end of year (433.0) (80.5) (30.8) Total stockholders’ equity $1,423.6 $1,461.9 $1,352.1 COMPREHENSIVE INCOME Net earnings $ 319.8 $ 191.9 $ 305.2 Other comprehensive income (loss): Net unrealized investment gains (losses) 0.8 (3.0) (11.0) Net derivative instrument gains (losses) 7.6 (7.1) (2.0) Net minimum pension liability adjustments (20.3) (7.9) (12.4) Translation adjustments 51.3 46.0 (38.0) Other comprehensive income (loss) 39.4 28.0 (63.4) Total comprehensive income $ 359.2 $ 219.9 $ 241.8