Estee Lauder Companies (EL)

Research and Development

We believe that we are an industry leader in the development of new products.  Marketing, product development and packaging groups work with our research and development group to identify shifts in consumer preferences, develop new products and improve, redesign or reformulate existing products.  In addition, research and development personnel work closely with quality assurance and manufacturing personnel on a worldwide basis to provide ongoing technical assistance and know-how, to ensure consistent global standards for our products and to deliver products with attributes that fulfill consumer expectations.  The research and development group has long-standing working relationships with several U.S. and international medical and educational facilities, which supplement internal capabilities.  Members of the group are also responsible for regulatory compliance matters.

We do not conduct animal testing on our products or ingredients, nor ask others to test on our behalf, except when required by law.  We evaluate our finished products in clinical tests on volunteer panels.

We maintain ongoing research and development programs at our facilities in Melville, New York; Oevel, Belgium; Petersfield, United Kingdom; Tokyo, Japan; Markham, Ontario; Blaine, Minnesota; Shanghai, China; and Colombes, France.  As of June 30, 2009, we had approximately 435 employees engaged in research and development.  Research and development expenditures totaled $81.6 million, $80.9 million and $74.4 million in fiscal 2009, 2008 and 2007, respectively.

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Research and Development

Research and development costs amounted to $81.6 million, $80.9 million and $74.4 million in fiscal 2009, 2008 and 2007, respectively.  Research and development costs are expensed as incurred.

Research and Development

Research and development costs amounted to $80.9 million, $74.4 million and $72.0 million in fiscal 2008, 2007 and 2006, respectively.  Research and development costs are expensed as incurred.

Research and Development

Research and development costs amounted to $80.9 million, $74.4 million
and $72.0 million in fiscal 2008, 2007 and 2006, respectively.  Research and development costs are expensed
as incurred.

Research and Development

Research and development costs are included in advertising, merchandising and sampling and amounted to $74.4 million, $72.0 million and $72.3 million in fiscal 2007, 2006 and 2005, respectively.  Research and development costs are expensed as incurred.

Research and Development

Research and development costs are included in advertising, merchandising and sampling and amounted to $72.0 million, $72.3 million and $67.2 million in fiscal 2006, 2005 and 2004, respectively.  Research and development costs are expensed as incurred.

Research and Development

Research and development costs, which amounted to $72.3 million, $67.2 million and $60.8 million in fiscal 2005, 2004 and 2003, respectively, are expensed as incurred.

Research and Development

Research and development costs, which amounted to $72.3 million, $67.2 million and $60.8 million in fiscal 2005, 2004 and 2003, respectively, are expensed as incurred.