Operating Activities Analysis Report by: Stephanie Jorge

Core Income

measure that excludes all nonrecurring and unusual items.

2016: $1,207.32 million

2015: $1,093.4 million (no restructuring adjustments)

2014: $1,207.22 million

Restructuring charges are due to LBF and GTI

Comprehensive Income

the final measure of income

2016: $957.3 million

2015: $810.1 million

2014: $1,267.0 million

Quality of Earnings

  • Sustainability of earnings

Operating vs. Non-Operating Sources of Income

Operating Income

  • operating sources

Decreased because:

Net sales in fiscal 2015 decreased from fiscal 2014, entirely driven by the negative impact of foreign currency translation of approximately $519 million.

Non-operating Sources

  • plant and equipment
  • goodwill and other intangible asset impairments
  • non-cash restructuring and other changes
  • interest income
  • loss of disposal

Permanent vs. Transitory Earnings

Permanent income (reoccurring income)

  • established cosmetic lines

Transitory earnings

  • earnings that occur once

Implications with projecting forecasts

  • customer's desires
  • technology


Created with images by NikolayFrolochkin - "dollar money currency" • Moto@Club4AG - "And I thought guys were bad with car parts and accessories... MAC as in not trucks but cosmetics. $120 of crayons, water colors, and pencils!!! Lol." • ookikioo - "Bobbi Brown Stonewashed Nudes Palette" • ookikioo - "Clinique"

Made with Adobe Slate

Make your words and images move.

Get Slate

Report Abuse

If you feel that this video content violates the Adobe Terms of Use, you may report this content by filling out this quick form.

To report a Copyright Violation, please follow Section 17 in the Terms of Use.