Additionally, comparisons between the current and prior year third quarters were affected by the acceleration of $94 million in sales shifted into the Company’s fiscal 2013 second quarter in advance of the January 2013 implementation of SAP as part of its Strategic Modernization Initiative (SMI). This amounted to approximately $78 million in operating income, equal to approximately $.13 per diluted common share.Excluding the impact of the shift, the Venezuela remeasurement charge and restructuring activities, net sales in local currency and operating income for the three months ended March 31, 2014 would have increased 8% and 18%, respectively. A reconciliation between GAAP and non-GAAP financial measures is included in this release.
|Results by Product Category|
|Three Months Ended March 31|
|(Unaudited; Dollars in millions)||Net Sales||Percent Change||Operating Income (Loss)||Percent Change|
|2014||2013||Reported Basis||Local Currency||2014||2013||Reported Basis|
|Returns and charges associated|
|with restructuring activities||—||—||(0.2||)||1.7|
- Net sales: Skin care, approximately $48 million; makeup, approximately $32 million; fragrance, approximately $10 million; and hair care, approximately $4 million.
- Operating income: Skin care, approximately $40 million; makeup, approximately $26 million; fragrance, approximately $9 million; and hair care, approximately $3 million.
- Reported net sales in skin care, makeup, fragrance and hair care would have increased 7%, 7%, 11% and 1%, respectively.
- Operating results in skin care, makeup, fragrance and hair care would have increased/(decreased) 3%, 12%, (100)+% and 63%, respectively.