The Este Lauder Companies Inc. (NYSEARCA:GAF) Files An 8-K Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities.

On May3, 2016, The Este Lauder Companies Inc. (the Company) filed
a Current Report on Form8-K (the May3, 2016 Form8-K) regarding a
multi-year initiative (Leading Beauty Forward). The Company
disclosed, at that time, that Leading Beauty Forward is expected
to include a number of initiatives, and that restructuring and
other charges to implement those initiatives through fiscal 2021
are expected to total between $600 million and $700 million
(before tax). At that time, the Company was unable to determine
the estimated amount or range of amounts to be incurred by major
cost type or the future cash expenditures to Leading Beauty
Forward. In the Companys Quarterly Report on Form10-Q filed on
February2, 2017 (the December31, 2016 Form10-Q), the Company
disclosed such details for specific initiatives approved
cumulatively through December31, 2016. The Company is filing this
Form8-K/A to provide details about specific initiatives approved
since then.

Between January1, 2017 and February16, 2017, the Company approved
certain initiatives under Leading Beauty Forward as follows:

Optimize Select Corporate Functions – The Company continued to
approve initiatives to realign and optimize its organization to
better leverage scale, improve productivity, reduce complexity
and achieve cost savings across various functions. These actions
will result in a net reduction of the workforce, which includes
position eliminations, the re-leveling of certain positions and
an investment in new capabilities. The Company also approved
consulting and other professional services related to the design
of the future structures, processes and technologies of certain
corporate functions and, to a lesser extent, costs for training
and recruitment related to the new capabilities.

Optimize Corporate and Region Market Support Structures – The
Company continued to approve initiatives to enhance its
go-to-market support structures and achieve synergies across
certain geographic regions, brands and channels. These
initiatives are primarily intended to shift certain areas of
focus from traditional to social and digital marketing strategies
to provide enhanced consumer experience, as well as to support
expanded omnichannel opportunities. These actions will result in
a net reduction of the workforce, which includes position
eliminations, the re-leveling of certain positions and an
investment in new capabilities. The Company also approved
consulting and other professional services related to the design
of the future structures, processes and technologies and, to a
lesser extent, other costs for recruitment and training related
to the new capabilities.

Optimize Supply Chain – The Company continued to approve certain
activities related to initiatives to redesign transportation
management activities and to enhance its quality assurance
organization. To enable the implementation of these initiatives,
other charges were approved for consulting fees and, to a lesser
extent, project management costs.

Once the relevant accounting criteria have been met, the Company
expects to record restructuring and other charges of
approximately $72 million (before tax) in connection with these
initiatives, which are expected to result in future cash
expenditures.

Of the $600 million to $700 million restructuring and other
charges expected to be incurred in connection with Leading Beauty
Forward, total cumulative charges approved by the Company through
February16, 2017 were:

About The Estée Lauder Companies Inc. (NYSEARCA:GAF)

SPDR S&P Emerging Middle East & Africa ETF (the Fund) seeks to replicate as closely as possible the total return performance of the S&P/Citigroup BMI Middle East & Africa Index (the Index). The Index is a market capitalization-weighted index that defines and measures the investable universe of publicly traded companies domiciled in emerging Middle Eastern and African markets. The Index is float adjusted, meaning that only those shares publicly available to investors are included in the Index calculation. The Fund uses a passive management strategy designed to track the price and yield performance of the Index. The Fund’s investment manager is SSgA Funds Management, Inc.

The Estée Lauder Companies Inc. (NYSEARCA:GAF) Recent Trading Information

The Estée Lauder Companies Inc. (NYSEARCA:GAF) closed its last trading session 00.00 at 59.89 with 0 shares trading hands.