UNITED STATES SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
Form 10-K |
[x] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
THE PROCTER & GAMBLE COMPANY |
One Procter & Gamble Plaza, Cincinnati, Ohio 45202 |
Telephone (513) 983-1100 |
IRS Employer Identification No. 31-0411980 |
State of Incorporation: Ohio |
Title of each class | Name of each exchange on which registered | |
Common Stock, without Par Value | New York Stock Exchange, NYSE Euronext-Paris |
Large accelerated filer | þ | Accelerated filer | ¨ | |||||
Non-accelerated filer | ¨ | (Do not check if smaller reporting company) | ||||||
Smaller reporting company | ¨ | |||||||
Emerging growth company | ¨ |
FORM 10-K TABLE OF CONTENTS | Page | |||
PART I | Item 1. | 1 | ||
Item 1A. | 2 | |||
Item 1B. | 6 | |||
Item 2. | 7 | |||
Item 3. | 7 | |||
Item 4. | 7 | |||
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PART II | Item 5. | 9 | ||
Item 6. | 11 | |||
Item 7. | 12 | |||
Item 7A. | 33 | |||
Item 8. | 34 | |||
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Item 9. | 66 | |||
Item 9A. | 66 | |||
Item 9B. | 66 | |||
PART III | Item 10. | 67 | ||
Item 11. | 67 | |||
Item 12. | 67 | |||
Item 13. | 68 | |||
Item 14. | 68 | |||
PART IV | Item 15. | 68 | ||
Item 16. | 70 | |||
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73 |
Total Number of Employees | |
2018 | 92,000 |
2017 | 95,000 |
2016 | 105,000 |
2015 | 110,000 |
2014 | 118,000 |
2013 | 121,000 |
2018 | 2017 | 2016 | |||
North America (1) | 44% | 45% | 44% | ||
Europe | 24% | 23% | 23% | ||
Asia Pacific | 9% | 9% | 9% | ||
Greater China | 9% | 8% | 8% | ||
Latin America | 7% | 8% | 8% | ||
IMEA (2) | 7% | 7% | 8% |
(1) | North America includes results for the United States, Canada and Puerto Rico only. |
(2) | IMEA includes India, Middle East and Africa. |
Net Sales (years ended June 30) | United States | International | |
2018 | $27.3 | $39.5 | |
2017 | $27.3 | $37.8 | |
2016 | $27.0 | $38.3 | |
Total Assets (years ended June 30) | |||
2018 | $63.4 | $54.9 | |
2017 | $59.8 | $60.6 | |
2016 | $64.4 | $62.7 |
• | ordering and managing materials from suppliers; |
• | converting materials to finished products; |
• | shipping products to customers; |
• | marketing and selling products to consumers; |
• | collecting, transferring, storing and/or processing customer, consumer, employee, vendor, investor, and other stakeholder information and personal data, including such data from citizens of the European Union who are covered by the General Data Protection Regulation (“GDPR”); |
• | summarizing and reporting results of operations, including financial reporting; |
• | managing our banking and other cash liquidity systems and platforms; |
• | hosting, processing and sharing, as appropriate, confidential and proprietary research, business plans and financial information; |
• | collaborating via an online and efficient means of global business communications; |
• | complying with regulatory, legal and tax requirements; |
• | providing data security; and |
• | handling other processes necessary to manage our business. |
Name | Position | Age | First Elected to Officer Position | |||
David S. Taylor | Chairman of the Board, President and Chief Executive Officer | 60 | 2013 | |||
Jon R. Moeller | Vice Chairman and Chief Financial Officer | 54 | 2009 | |||
Steven D. Bishop | Group President - Global Health Care | 54 | 2016 | |||
Mary Lynn Ferguson-McHugh | Group President - Global Family Care and P&G Ventures | 58 | 2016 | |||
Carolyn M. Tastad | Group President - North America Selling and Market Operations | 57 | 2014 | |||
Gary A. Coombe | President - Global Grooming | 54 | 2014 | |||
Kathleen B. Fish | Chief Research, Development and Innovation Officer | 61 | 2014 | |||
Fama Francisco | President - Global Baby Care and Baby and Feminine Care Sector | 50 | 2018 | |||
M. Tracey Grabowski | Chief Human Resources Officer | 50 | 2018 | |||
Shailesh Jejurikar | President - Global Fabric Care and Fabric & Home Care Sector | 51 | 2018 | |||
R. Alexandra Keith | President - Global Hair Care and Beauty Sector | 50 | 2017 | |||
Deborah P. Majoras | Chief Legal Officer and Secretary | 54 | 2010 | |||
Juan Fernando Posada | President - Latin America Selling and Market Operations | 56 | 2015 | |||
Matthew Price | President - Greater China Selling and Market Operations | 52 | 2015 | |||
Marc S. Pritchard | Chief Brand Officer | 58 | 2008 | |||
Loïc Tassel | President - Europe Selling and Market Operations | 51 | 2018 | |||
Jeffrey K. Schomburger | Global Sales Officer | 56 | 2015 | |||
Valarie L. Sheppard | Senior Vice President, Comptroller and Treasurer | 54 | 2005 | |||
Yannis Skoufalos | Global Product Supply Officer | 61 | 2011 | |||
Magesvaran Suranjan | President - Asia Pacific Selling and Market Operations and India, Middle East and Africa (IMEA) Selling and Market Operations | 48 | 2015 |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (3) | Approximate Dollar Value of Shares that May Yet Be Purchased Under Our Share Repurchase Program | ||||
4/1/2018 - 4/30/2018 | 6,119,071 | $76.82 | 6,119,071 | (3) | ||||
5/1/2018 - 5/31/2018 | 6,160,881 | 73.04 | 6,160,881 | (3) | ||||
6/1/2018 - 6/30/2018 | 5,914,776 | 76.08 | 5,914,776 | (3) | ||||
Total | 18,194,728 | $75.30 | 18,194,728 | (3) |
(1) | All transactions were made in the open market with large financial institutions. This table excludes shares withheld from employees to satisfy minimum tax withholding requirements on option exercises and other equity-based transactions. The Company administers cashless exercises through an independent third party and does not repurchase stock in connection with cashless exercises. |
(2) | Average price paid per share is calculated on a settlement basis and excludes commission. |
(3) | On April 19, 2018, the Company stated that in fiscal year 2018 the Company expected to reduce outstanding shares through direct share repurchases at a value of approximately $6 to $8 billion, notwithstanding any purchases under the Company's compensation and benefit plans. The share repurchases were authorized pursuant to a resolution issued by the Company's Board of Directors and were financed through a combination of operating cash flows and issuance of long-term and short-term debt. The total value of the shares purchased under the share repurchase plan was $7.0 billion. The share repurchase plan ended on June 30, 2018. |
(in dollars; split-adjusted) | 1958 | 1968 | 1978 | 1988 | 1998 | 2008 | 2018 | |||||||
Dividends per share | $ | 0.02 | $ | 0.04 | $ | 0.08 | $ | 0.17 | $ | 0.51 | $ | 1.45 | $ | 2.79 |
Quarter ended | 2017 - 2018 | 2016 - 2017 | |||||
September 30 | $ | 0.6896 | $ | 0.6695 | |||
December 31 | 0.6896 | 0.6695 | |||||
March 31 | 0.6896 | 0.6695 | |||||
June 30 | 0.7172 | 0.6896 |
Quarter ended | 2017 - 2018 | 2016 - 2017 | |||||||||||||
High | Low | High | Low | ||||||||||||
September 30 | $ | 94.67 | $ | 86.31 | $ | 90.22 | $ | 84.32 | |||||||
December 31 | 93.51 | 85.43 | 90.32 | 81.18 | |||||||||||
March 31 | 91.92 | 75.81 | 92.00 | 83.24 | |||||||||||
June 30 | 79.51 | 70.74 | 91.13 | 85.52 |
Cumulative Value of $100 Investment, through June 30 | ||||||||||||||||||
Company Name/Index | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||
P&G | $ | 100 | $ | 105 | $ | 108 | $ | 121 | $ | 128 | $ | 119 | ||||||
S&P 500 Index | 100 | 125 | 134 | 139 | 164 | 188 | ||||||||||||
S&P 500 Consumer Staples Index | 100 | 115 | 126 | 150 | 154 | 148 |
Amounts in millions, except per share amounts | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||
Net sales | $ | 66,832 | $ | 65,058 | $ | 65,299 | $ | 70,749 | $ | 74,401 | $ | 73,910 | |||||||||||
Gross profit | 32,564 | 32,523 | 32,390 | 33,693 | 35,371 | 35,858 | |||||||||||||||||
Operating income | 13,711 | 13,955 | 13,441 | 11,049 | 13,910 | 13,051 | |||||||||||||||||
Net earnings from continuing operations | 9,861 | 10,194 | 10,027 | 8,287 | 10,658 | 10,346 | |||||||||||||||||
Net earnings/(loss) from discontinued operations | — | 5,217 | 577 | (1,143 | ) | 1,127 | 1,056 | ||||||||||||||||
Net earnings attributable to Procter & Gamble | 9,750 | 15,326 | 10,508 | 7,036 | 11,643 | 11,312 | |||||||||||||||||
Net earnings margin from continuing operations | 14.8 | % | 15.7 | % | 15.4 | % | 11.7 | % | 14.3 | % | 14.0 | % | |||||||||||
Basic net earnings per common share: (1) | |||||||||||||||||||||||
Earnings from continuing operations | $ | 3.75 | $ | 3.79 | $ | 3.59 | $ | 2.92 | $ | 3.78 | $ | 3.65 | |||||||||||
Earnings/(loss) from discontinued operations | — | 2.01 | 0.21 | (0.42 | ) | 0.41 | 0.39 | ||||||||||||||||
Basic net earnings per common share | $ | 3.75 | $ | 5.80 | $ | 3.80 | $ | 2.50 | $ | 4.19 | $ | 4.04 | |||||||||||
Diluted net earnings per common share: (1) | |||||||||||||||||||||||
Earnings from continuing operations | $ | 3.67 | $ | 3.69 | $ | 3.49 | $ | 2.84 | $ | 3.63 | $ | 3.50 | |||||||||||
Earnings/(loss) from discontinued operations | — | 1.90 | 0.20 | (0.40 | ) | 0.38 | 0.36 | ||||||||||||||||
Diluted net earnings per common share | $ | 3.67 | $ | 5.59 | $ | 3.69 | $ | 2.44 | $ | 4.01 | $ | 3.86 | |||||||||||
Dividends per common share | $ | 2.79 | $ | 2.70 | $ | 2.66 | $ | 2.59 | $ | 2.45 | $ | 2.29 | |||||||||||
Research and development expense | $ | 1,908 | $ | 1,874 | $ | 1,879 | $ | 1,991 | $ | 1,910 | $ | 1,867 | |||||||||||
Advertising expense | 7,103 | 7,118 | 7,243 | 7,180 | 7,867 | 8,188 | |||||||||||||||||
Total assets | 118,310 | 120,406 | 127,136 | 129,495 | 144,266 | 139,263 | |||||||||||||||||
Capital expenditures | 3,717 | 3,384 | 3,314 | 3,736 | 3,848 | 4,008 | |||||||||||||||||
Long-term debt | 20,863 | 18,038 | 18,945 | 18,327 | 19,807 | 19,111 | |||||||||||||||||
Shareholders' equity | $ | 52,883 | $ | 55,778 | $ | 57,983 | $ | 63,050 | $ | 69,976 | $ | 68,709 |
(1) | Basic net earnings per common share and Diluted net earnings per common share are calculated based on Net earnings attributable to Procter & Gamble. |
• | Overview |
• | Summary of 2018 Results |
• | Economic Conditions and Uncertainties |
• | Results of Operations |
• | Segment Results |
• | Cash Flow, Financial Condition and Liquidity |
• | Significant Accounting Policies and Estimates |
• | Other Information |
Reportable Segments | % of Net Sales (1) | % of Net Earnings (1) | Product Categories (Sub-Categories) | Major Brands |
Beauty | 19% | 23% | Hair Care (Conditioner, Shampoo, Styling Aids, Treatments) | Head & Shoulders, Pantene, Rejoice |
Skin and Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care) | Olay, Old Spice, Safeguard, SK-II | |||
Grooming | 10% | 14% | Grooming (2) (Shave Care - Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, Other Shave Care; Appliances) | Braun, Fusion, Gillette, Mach3, Prestobarba, Venus |
Health Care | 12% | 13% | Oral Care (Toothbrushes, Toothpaste, Other Oral Care) | Crest, Oral-B |
Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Vitamins/Minerals/Supplements, Other Personal Health Care) | Metamucil, Prilosec, Vicks | |||
Fabric & Home Care | 32% | 27% | Fabric Care (Fabric Enhancers, Laundry Additives, Laundry Detergents) | Ariel, Downy, Gain, Tide |
Home Care (Air Care, Dish Care, P&G Professional, Surface Care) | Cascade, Dawn, Febreze, Mr. Clean, Swiffer | |||
Baby, Feminine & Family Care | 27% | 23% | Baby Care (Baby Wipes, Diapers and Pants) | Luvs, Pampers |
Feminine Care (Adult Incontinence, Feminine Care) | Always, Tampax | |||
Family Care (Paper Towels, Tissues, Toilet Paper) | Bounty, Charmin, Puffs |
(1) | Percent of Net sales and Net earnings from continuing operations for the year ended June 30, 2018 (excluding results held in Corporate). |
(2) | The Grooming product category is comprised of the Shave Care and Appliances GBUs. |
• | Organic sales growth above market growth rates in the categories and geographies in which we compete; |
• | Core EPS growth of mid-to-high single digits; and |
• | Adjusted free cash flow productivity of 90% or greater. |
Amounts in millions, except per share amounts | 2018 | Change vs. Prior Year | 2017 | Change vs. Prior Year | 2016 | ||||||||||||
Net sales | $ | 66,832 | 3 | % | $ | 65,058 | — | % | $ | 65,299 | |||||||
Operating income | 13,711 | (2 | )% | 13,955 | 4 | % | 13,441 | ||||||||||
Net earnings from continuing operations | 9,861 | (3 | )% | 10,194 | 2 | % | 10,027 | ||||||||||
Net earnings from discontinued operations | — | N/A | 5,217 | N/A | 577 | ||||||||||||
Net earnings attributable to Procter & Gamble | 9,750 | (36 | )% | 15,326 | 46 | % | 10,508 | ||||||||||
Diluted net earnings per common share | 3.67 | (34 | )% | 5.59 | 51 | % | 3.69 | ||||||||||
Diluted net earnings per share from continuing operations | 3.67 | (1 | )% | 3.69 | 6 | % | 3.49 | ||||||||||
Core earnings per share | 4.22 | 8 | % | 3.92 | 7 | % | 3.67 | ||||||||||
Cash flow from operating activities | 14,867 | 17 | % | 12,753 | (17 | )% | 15,435 |
• | Net sales increased 3% to $66.8 billion including a positive 2% impact from foreign exchange. |
◦ | Organic sales increased 1% on a 2% increase in organic volume. |
◦ | Unit volume increased 1%. Volume increased low single digits in Beauty, Health Care and Fabric & Home Care and was unchanged in Grooming. Volume decreased low single digits in Baby, Feminine & Family Care. Excluding the impact of minor brand divestitures, organic volume increased mid-single digits in Fabric & Home Care. |
• | Net earnings from continuing operations decreased $333 million or 3% in fiscal 2018, due primarily to the transitional impacts of the U.S. Tax Cuts and Jobs Act (U.S. Tax Act). Please refer to Note 5 to our Consolidated Financial Statements for further discussion on tax impacts. Operating income decreased 2% due to reduced margins, partially offset by net sales growth. This was largely offset by an increase in Other non-operating income/(expense), net, due to higher costs of early extinguishment of debt in the base period. Favorable foreign exchange impacts increased net earnings from continuing operations by approximately $125 million or 1%. |
• | Net earnings from discontinued operations were zero in fiscal 2018 compared to $5.2 billion in fiscal 2017 |
• | Net earnings attributable to Procter & Gamble were $9.8 billion, a decrease of $5.6 billion or 36% versus the prior year primarily due to the aforementioned reduction in net earnings from discontinued operations. |
• | Diluted net earnings per share decreased 34% to $3.67. |
◦ | Diluted net earnings per share from continuing operations decreased 1% to $3.67. |
◦ | Core EPS increased 8% to $4.22. |
• | Cash flow from operating activities was $14.9 billion. |
◦ | Adjusted free cash flow was $11.2 billion. |
◦ | Adjusted free cash flow productivity was 104%. |
Comparisons as a percentage of net sales; Years ended June 30 | 2018 | Basis Point Change | 2017 | Basis Point Change | 2016 | |||||||||
Gross margin | 48.7 | % | (130 | ) | 50.0 | % | 40 | 49.6 | % | |||||
Selling, general and administrative expense | 28.2 | % | (30 | ) | 28.5 | % | (50 | ) | 29.0 | % | ||||
Operating margin | 20.5 | % | (100 | ) | 21.5 | % | 90 | 20.6 | % | |||||
Earnings from continuing operations before income taxes | 19.9 | % | (50 | ) | 20.4 | % | (10 | ) | 20.5 | % | ||||
Net earnings from continuing operations | 14.8 | % | (90 | ) | 15.7 | % | 30 | 15.4 | % | |||||
Net earnings attributable to Procter & Gamble | 14.6 | % | (900 | ) | 23.6 | % | 750 | 16.1 | % |
• | a 90 basis-point negative impact due to higher commodity costs, |
• | a 50 basis-point decline due to reduced pricing, |
• | a 100 basis-point decline from unfavorable product mix (within segments due to the disproportionate growth of lower margin product forms, large sizes and club channels and between segments caused by the disproportionate volume growth in Fabric & Home Care, which has lower than company-average gross margins), |
• | a 30 basis-point negative impact from higher restructuring charges and |
• | a 30 basis-point negative impact from unfavorable foreign exchange. |
• | Marketing spending as a percentage of net sales decreased 30 basis points, primarily driven by reductions in agency compensation and production costs. |
• | Overhead costs as a percentage of net sales decreased 30 basis points, primarily driven by productivity savings and sales growth leverage, partially offset by higher restructuring costs versus the base year. |
• | Other operating expenses as a percentage of net sales increased 30 basis points primarily due to gains on the sale of real estate in the base year. |
• | a 230 basis-point positive impact from total manufacturing cost savings (210 basis points net of product and packaging reinvestments), |
• | a 20 basis-point benefit from lower restructuring charges and |
• | a 10 basis-point benefit from positive scale impacts due to higher volume. |
• | a 90 basis-point decrease from unfavorable product mix between segments (caused primarily by the lower relative proportion of sales in Grooming, which has higher than company-average gross margins) and within segments (due to disproportionate growth of lower margin products, forms and package sizes in certain businesses), |
• | a 40 basis-point negative impact from unfavorable foreign exchange and |
• | a combined 70 basis-point impact due to higher commodities and other costs. |
• | Marketing spending as a percentage of net sales increased 10 basis points due to an increase in marketing activities, partially offset by productivity savings. |
• | Overhead costs as a percentage of net sales increased 20 basis points, primarily driven by wage inflation and increased sales personnel in certain businesses, partially offset by 20 basis points of productivity savings. |
• | Other operating expenses as a percent of net sales declined 80 basis points. Lower foreign exchange transactional charges reduced SG&A as a percentage of net sales by |
• | Interest expense was $506 million in 2018, an increase of $41 million versus the prior year due to an increase in average long term debt balances and an increase in U.S. interest rates. |
• | Interest income was $247 million in 2018, an increase of $76 million versus the prior year primarily due to an increase in average balances of interest bearing cash and cash equivalents and investment securities balances and an increase in U.S. interest rates. |
• | Other non-operating income/(expense), which consists primarily of divestiture gains, investment income and other non-operating items was a net expense of $126 million in 2018, an improvement of $278 million versus |
• | Interest expense was $465 million in 2017, a decrease of $114 million versus the prior year due to a decrease in weighted average interest rates. |
• | Interest income was $171 million in 2017, comparable to 2016. |
• | Other non-operating income/(expense), which consists primarily of divestiture gains, investment income and other non-operating items, was a net expense of $404 million in 2017 versus a net income of $325 million in 2016, a $729 million year-over-year decrease. This change is due to a $543 million current-year charge related to early extinguishment of long-term debt and a reduction in gains on minor brand divestitures. In 2017, we had approximately $110 million in minor brand divestiture gains, including Hipoglos (a baby care brand sold primarily in Brazil) and other minor brands. The prior year divestiture activities included approximately $300 million in minor brand divestiture gains, including Escudo and certain hair care brands in Europe and IMEA. |
• | a 280 basis-point year over year reduction from the ongoing impacts of the U.S. Tax Act, as the impact of the lower blended U.S. federal rate on current year earnings versus prior year rate was partially offset by reduced foreign tax credits versus prior year due to the inability to fully credit foreign taxes under the U.S. Tax Act, |
• | a 170 basis-point reduction from favorable geographic mix of earnings, primarily due to a greater proportion of income in lower tax foreign jurisdictions, |
• | a 180 basis-point increase from reduced favorable discrete impacts related to uncertain income tax positions (which netted to approximately 25 basis points in the current year versus 205 basis points in the prior year), |
• | a 70 basis-point increase from reduced excess tax benefits from share-based compensation (60 basis points in the current year versus 130 basis points in the prior year) and |
• | a 40 basis-point unfavorable impact due to reduced benefits from the tax impacts of early extinguishment of long-term debt (10 basis-point benefit in current year versus 50 basis-point benefit in the prior year). |
• | a 130 basis-point impact from excess tax benefits associated with share-based payments due to the adoption of FASB Accounting Standards Update (ASU) 2016-09 Improvements to Employee Share-based Payment Accounting in 2017, |
• | a 150 basis-point benefit from discrete impacts related to uncertain income tax positions (which netted to approximately 205 basis points in the current year versus 55 basis points in the prior year), |
• | a 50 basis-point benefit from the tax impact of the early extinguishment of long-term debt and |
• | a 130 basis-point benefit from the prior year establishment of a valuation allowance on deferred tax assets related to net operating loss carryforwards. |
Net Sales Change Drivers 2018 vs. 2017 (1) | ||||||||||||||||||||
Volume with Acquisitions & Divestitures | Volume Excluding Acquisitions & Divestitures | Foreign Exchange | Price | Mix | Other (2) | Net Sales Growth | ||||||||||||||
Beauty | 2 | % | 2 | % | 2 | % | — | % | 5 | % | — | % | 9 | % | ||||||
Grooming | — | % | — | % | 3 | % | (3 | )% | (1 | )% | — | % | (1 | )% | ||||||
Health Care | 3 | % | 3 | % | 3 | % | (1 | )% | — | % | — | % | 5 | % | ||||||
Fabric & Home Care | 3 | % | 4 | % | 1 | % | (1 | )% | — | % | — | % | 3 | % | ||||||
Baby, Feminine & Family Care | (1 | )% | (1 | )% | 1 | % | (1 | )% | — | % | — | % | (1 | )% | ||||||
TOTAL COMPANY | 1 | % | 2 | % | 2 | % | (1 | )% | 1 | % | — | % | 3 | % |
Net Sales Change Drivers 2017 vs. 2016 (1) | ||||||||||||||||||||
Volume with Acquisitions & Divestitures | Volume Excluding Acquisitions & Divestitures | Foreign Exchange | Price | Mix | Other (2) | Net Sales Growth | ||||||||||||||
Beauty | (2 | )% | 1 | % | (2 | )% | 1 | % | 2 | % | 1 | % | — | % | ||||||
Grooming | 2 | % | 3 | % | (2 | )% | (1 | )% | (2 | )% | — | % | (3 | )% | ||||||
Health Care | 3 | % | 4 | % | (2 | )% | — | % | 1 | % | — | % | 2 | % | ||||||
Fabric & Home Care | 1 | % | 2 | % | (2 | )% | — | % | 1 | % | — | % | — | % | ||||||
Baby, Feminine & Family Care | 2 | % | 2 | % | (2 | )% | (1 | )% | — | % | — | % | (1 | )% | ||||||
TOTAL COMPANY | 1 | % | 2 | % | (2 | )% | — | % | — | % | 1 | % | — | % |
($ millions) | 2018 | Change vs. 2017 | 2017 | Change vs. 2016 | |||
Volume | N/A | 2% | N/A | (2)% | |||
Net sales | $12,406 | 9% | $11,429 | —% | |||
Net earnings | $2,320 | 21% | $1,914 | (3)% | |||
% of net sales | 18.7% | 200 bps | 16.7% | (50) bps |
• | Volume in Hair Care increased low single digits. Volume |
• | Volume in Skin and Personal Care increased low single digits. Developed market volume increased low single digits driven by product innovation. Volume increased mid-single digits in developing regions behind innovation and increased marketing. Global market share of the skin and personal care category was unchanged. |
• | Volume in Hair Care decreased low single digits due to minor brand divestitures. Organic volume increased low single digits. Developed regions decreased low single digits mainly due to competitive activity. Developing regions decreased low single digits due to minor brand divestitures. Organic volume increased low single digits in developing regions behind product innovation and market growth. Global market share of the hair care category decreased more than half a point. |
• | Volume in Skin and Personal Care was unchanged including the impact of minor brand divestitures. Organic volume increased low single digits. Developed market volume decreased low single digits following increased pricing and due to competitive activity. Volume increased low single digits in developing regions behind innovation and market growth. Global market share of the skin and personal care category decreased half a point. |
($ millions) | 2018 | Change vs. 2017 | 2017 | Change vs. 2016 | |||
Volume | N/A | —% | N/A | 2% | |||
Net sales | $6,551 | (1)% | $6,642 | (3)% | |||
Net earnings | $1,432 | (7)% | $1,537 | (1)% | |||
% of net sales | 21.9% | (120) bps | 23.1% | 40 bps |
• | Shave Care volume was unchanged. Volume was unchanged in developed regions as increased competitiveness of our products in the U.S. following price reductions was offset by competitive activity in other markets. Volume in developing regions was unchanged. Global market share of the shave care category decreased slightly. |
• | Appliances volume increased high single digits in developed and developing regions due to product innovation. Global market share of the appliances category increased more than half a point. |
• | Shave Care volume increased low single digits. Shave Care volume decreased low single digits in developed regions due to competitive activity and increased low single digits in developing regions behind product innovation. Global market share of the shave care category decreased half a point. |
• | Volume in Appliances increased double digits. Volume increased double digits in developed regions and increased low single digits in developing regions due to product innovation. Global market share of the appliances category increased nearly half a point. |
($ millions) | 2018 | Change vs. 2017 | 2017 | Change vs. 2016 | |||
Volume | N/A | 3% | N/A | 3% | |||
Net sales | $7,857 | 5% | $7,513 | 2% | |||
Net earnings | $1,283 | —% | $1,280 | 2% | |||
% of net sales | 16.3% | (70) bps | 17.0% | — bps |
• | Oral Care volume increased low single digits. Volume increased low single digits in developed regions driven by product innovation and marketing investments in the premium power brush segment. Volume increased low single digits in developing regions due to product innovation and reduced pricing in the form of increased promotional spending. Global market share of the oral care category decreased less than half a point. |
• | Volume in Personal Health Care increased mid-single digits. Volume increased low single digits in developed regions and increased high single digits in developing regions due to product innovation and increased consumption from a strong cough/cold season. Global market share of the personal health care category increased less than half a point. |
• | Oral Care volume increased mid-single digits. Volume increased low single digits in developed regions and increased mid-single digits in developing regions driven by market growth and product innovation. Global market share of the oral care category decreased slightly. |
• | Volume in Personal Health Care increased low single digits. Volume increased low single digits in both developed and developing regions behind a stronger cough/cold season relative to prior year, product innovation and expanded distribution. Global market share of the personal health care category was unchanged. |
($ millions) | 2018 | Change vs. 2017 | 2017 | Change vs. 2016 | |||
Volume | N/A | 3% | N/A | 1% | |||
Net sales | $21,441 | 3% | $20,717 | —% | |||
Net earnings | $2,708 | —% | $2,713 | (2)% | |||
% of net sales | 12.6% | (50) bps | 13.1% | (30) bps |
• | Fabric Care volume increased low single digits. Excluding the impact of minor brand divestitures, organic volume increased mid-single digits. Volume in developed regions increased mid-single digits, due to product innovation and behind lower pricing in the form of increased promotional spending. Volume in developing regions increased low single digits due to product innovation and category growth. Global market share of the Fabric Care category was unchanged. |
• | Home Care volume increased low single digits. Volume in developed regions increased low single digits driven by product innovation. Volume in developing regions increased mid-single digits driven by product innovation and category growth. Global market share of the Home Care category was unchanged. |
• | Fabric Care volume increased low single digits as a mid-single digit volume increase in developed regions, due primarily to product innovation, was partially offset by a low single-digit decrease in developing regions, driven by competitive activity and reduced distribution of less profitable brands. Global market share of the fabric care category was unchanged. |
• | Home Care volume increased low single digits driven by a low single-digit increase in both developed and developing regions due to market growth and product innovation. Global market share of the home care category was unchanged. |
($ millions) | 2018 | Change vs. 2017 | 2017 | Change vs. 2016 | |||
Volume | N/A | (1)% | N/A | 2% | |||
Net sales | $18,080 | (1)% | $18,252 | (1)% | |||
Net earnings | $2,251 | (10)% | $2,503 | (6)% | |||
% of net sales | 12.5% | (120) bps | 13.7% | (60) bps |
• | Baby Care volume decreased mid-single digits. Volume in developed regions decreased low single digits due to competitive activity and trade inventory reductions. Volume in developing regions decreased high single digits due to competitive activity, market contraction and a reduction in trade inventories. Global market share of the baby care category decreased more than a point. |
• | Feminine Care volume decreased low single digits. Excluding the impact of minor brand divestitures, organic volume increased low single digits. Organic volume in developed regions increased low single digits due to product innovation. Volume in developing regions increased low single digits due to product innovation. Global market share of the feminine care category was unchanged. |
• | Volume in Family Care, which is predominantly a North American business, increased mid-single digits driven by product innovation and distribution gains. In the U.S., all-outlet share of the family care category increased slightly. |
• | Volume in Baby Care was unchanged. Volume in developed regions decreased low single digits, primarily due to competitive activity, and volume in developing regions increased low single digits, due to market growth and product innovation. Global market share of the baby care category decreased more than half a point. |
• | Volume in Feminine Care increased low single digits. Volume in developed regions increased low single digits, driven by product innovation, and volume in developing regions decreased low single digits due to competitive activity and reduced exports to our Venezuelan subsidiaries. Global market share of the feminine care category was unchanged. |
• | Volume in Family Care, which is predominantly a North American business, increased mid-single digits driven by product innovation and increased merchandising. In the U.S., all-outlet share of the family care category increased less than a point. |
($ millions) | 2018 | Change vs. 2017 | 2017 | Change vs. 2016 | |||
Net sales | $497 | (2)% | $505 | 20% | |||
Net earnings/(loss) | $(133) | N/A | $247 | N/A |
• | an increase in income tax expense in 2018 caused by the aforementioned $602 million net charge for the transitional impacts of the U.S. Tax Act and |
• | an increase in after-tax restructuring charges of approximately $331 million. |
• | lower restructuring charges in 2017 compared to the prior year, |
• | a gain on the sale of real estate in the current fiscal year, |
• | lower foreign exchange transactional charges, |
• | a reduction in the proportion of corporate overhead spending not allocated to the segments, consisting in part of reduced stranded overheads following divestitures, and |
• | current year tax benefits resulting from the adoption of a new accounting standard on the tax impacts of share-based payments to employees (see Note 1 to the Consolidated Financial Statements). |
• | An increase in accounts receivable used $177 million of cash due to increased sales and the timing of the year-end (which fell on a weekend, resulting in fewer days collection). The number of days sales outstanding remained flat versus prior year. |
• | Higher inventory used $188 million of cash mainly due to inventory increases to support initiatives and business growth across all segments. Inventory days on hand decreased approximately 1 day primarily due to foreign exchange impacts. |
• | Accounts payable, accrued and other liabilities increased, generating $1.4 billion of cash. This was primarily driven by extended payment terms with our suppliers and an increase in fourth quarter marketing activity versus the prior year. These factors, along with offsetting impacts of foreign exchange, drove a 2 day increase in days payable outstanding. Although difficult to project due to market and other dynamics, we anticipate incremental cash flow benefits from the extended payment terms with suppliers could decline slightly over the next fiscal year. |
• | Other operating assets and liabilities generated $2.0 billion of cash, primarily driven by the long-term portion of the payable related to the U.S. Tax Act repatriation charge. |
• | An increase in accounts receivable used $322 million of cash due to higher relative sales late in the period as compared to the prior period, partially offset by collection of approximately $150 million of retained receivables from the Beauty Brands business. In addition, the number of days sales outstanding increased 1 day due in part to foreign exchange impacts. |
• | Lower inventory generated $71 million of cash mainly due to supply chain optimizations, partially offset by increases to support business growth and increased commodity costs. Inventory days on hand decreased approximately 1 day primarily due to supply chain optimizations. |
• | Accounts payable, accrued and other liabilities decreased, using $149 million in operating cash flow. This was caused by reduced accruals from lower fourth quarter marketing and overhead activities as compared to the base period, as well as the payment of approximately $595 million of accounts payable and accrued liabilities related to the divestiture of the Beauty Brands business, including liabilities retained by the Company pursuant to the terms of the agreement. These impacts were partially offset by approximately $700 million related to extended payment terms with our suppliers. These factors, along with the impact of foreign exchange, drove a 4 day increase in days payable outstanding. |
• | Other operating assets and liabilities used $43 million of cash. |
Amounts in millions | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | After 5 Years | ||||||||||||||
RECORDED LIABILITIES | |||||||||||||||||||
Total debt | $ | 31,217 | $ | 10,407 | $ | 4,630 | $ | 5,224 | $ | 10,956 | |||||||||
Capital leases | 107 | 22 | 35 | 23 | 27 | ||||||||||||||
U.S. Tax Act transitional charge (1) | 2,884 | 231 | 462 | 462 | 1,730 | ||||||||||||||
Uncertain tax positions (2) | — | — | — | — | — | ||||||||||||||
OTHER | |||||||||||||||||||
Interest payments relating to long-term debt | 4,944 | 574 | 1,033 | 811 | 2,526 | ||||||||||||||
Operating leases (3) | 1,338 | 275 | 442 | 325 | 296 | ||||||||||||||
Minimum pension funding (4) | 402 | 131 | 271 | — | — | ||||||||||||||
Purchase obligations (5) | 1,129 | 778 | 167 | 47 | 137 | ||||||||||||||
TOTAL CONTRACTUAL COMMITMENTS | $ | 42,021 | $ | 12,418 | $ | 7,039 | $ | 6,891 | $ | 15,673 |
(1) | Represents the U.S. federal tax liability associated with the repatriation provisions of the U.S. Tax Act. Does not include any provisions made for foreign withholding taxes on expected repatriations as the timing of those payments is uncertain. |
(2) | As of June 30, 2018, the Company's Consolidated Balance Sheet reflects a liability for uncertain tax positions of $584 million, including $114 million of interest and penalties. Due to the high degree of uncertainty regarding the timing of future cash outflows of liabilities for uncertain tax positions beyond one year, a reasonable estimate of the period of cash settlement beyond twelve months from the balance sheet date of June 30, 2018, cannot be made. |
(3) | Operating lease obligations are shown net of guaranteed sublease income. |
(4) | Represents future pension payments to comply with local funding requirements. These future pension payments assume the Company continues to meet its future statutory funding requirements. Considering the current economic environment in which the Company operates, the Company believes its cash flows are adequate to meet the future statutory funding requirements. The projected payments beyond fiscal year 2020 are not currently determinable. |
(5) | Primarily reflects future contractual payments under various take-or-pay arrangements entered into as part of the normal course of business. Commitments made under take-or-pay obligations represent minimum commitments under take-or-pay agreements with suppliers and are in line with expected usage. This includes service contracts for information technology, human resources management and facilities management activities that have been outsourced. Such amounts also include arrangements with suppliers that qualify as embedded operating leases. While the amounts listed represent contractual obligations, we do not believe it is likely that the full contractual amount would be paid if the underlying contracts were canceled prior to maturity. In such cases, we generally are able to negotiate new contracts or cancellation penalties, resulting in a reduced payment. The amounts do not include other contractual purchase obligations that are not take-or-pay arrangements. Such contractual purchase obligations are primarily purchase orders at fair value that are part of normal operations and are reflected in historical operating cash flow trends. We do not believe such purchase obligations will adversely affect our liquidity position. |
Approximate Percent Change in Estimated Fair Value | |||
+50 bps Discount Rate | -50 bps Residual Growth | ||
Shave Care goodwill reporting unit | (10)% | (7)% | |
Gillette indefinite-lived intangible asset | (10)% | (7)% |
Year ended June 30, 2018 | Net Sales Growth | Foreign Exchange Impact | Acquisition & Divestiture Impact/Other (1) | Organic Sales Growth | ||||
Beauty | 9 | % | (2 | )% | — | % | 7 | % |
Grooming | (1 | )% | (3 | )% | 1 | % | (3 | )% |
Health Care | 5 | % | (3 | )% | — | % | 2 | % |
Fabric & Home Care | 3 | % | (1 | )% | 1 | % | 3 | % |
Baby, Feminine & Family Care | (1 | )% | (1 | )% | — | % | (2 | )% |
TOTAL COMPANY | 3 | % | (2 | )% | — | % | 1 | % |
Year ended June 30, 2017 | Net Sales Growth | Foreign Exchange Impact | Acquisition & Divestiture Impact/Other (2) | Organic Sales Growth | ||||
Beauty | — | % | 2 | % | 1 | % | 3 | % |
Grooming | (3 | )% | 2 | % | 1 | % | — | % |
Health Care | 2 | % | 2 | % | 1 | % | 5 | % |
Fabric & Home Care | — | % | 2 | % | 1 | % | 3 | % |
Baby, Feminine & Family Care | (1 | )% | 2 | % | — | % | 1 | % |
TOTAL COMPANY | — | % | 2 | % | — | % | 2 | % |
(1) | Acquisition & Divestiture Impact/Other includes the volume and mix impact of acquisitions and divestitures, the impact of the India Goods and Services Tax implementation and rounding impacts necessary to reconcile net sales to organic sales. |
(2) | Acquisition & Divestiture Impact/Other includes the volume and mix impact of acquisitions and divestitures, the impact of the Venezuela deconsolidation and rounding impacts necessary to reconcile net sales to organic sales. |
Operating Cash Flow | Capital Spending | Divestiture impacts (1) | Adjusted Free Cash Flow | |||||||||
2018 | $ | 14,867 | $ | (3,717 | ) | $ | — | $ | 11,150 | |||
2017 | 12,753 | (3,384 | ) | 418 | 9,787 | |||||||
2016 | 15,435 | (3,314 | ) | — | 12,121 |
(1) | Divestiture impacts relate to tax payments for the Beauty Brands divestiture in fiscal 2017. |
Net Earnings | Adjustments to Net Earnings (1) | Net Earnings Excluding Adjustments | Adjusted Free Cash Flow | Adjusted Free Cash Flow Productivity | ||||||||||
2018 | $ | 9,861 | $ | 845 | $ | 10,706 | $ | 11,150 | 104 | % | ||||
2017 | 15,411 | (4,990 | ) | 10,421 | 9,787 | 94 | % | |||||||
2016 | 10,604 | (72 | ) | 10,532 | 12,121 | 115 | % |
(1) | Adjustments to Net Earnings relate to the transitional impact of the U.S. Tax Act in fiscal 2018, the losses on early debt extinguishment in fiscal 2018 and 2017, the gain on the sale of the Beauty Brands business in 2017, and the gain on the sale of the Batteries business and the Batteries impairment in fiscal 2016. |
• | Incremental Restructuring: The Company has had and continues to have an ongoing level of restructuring activities. Such activities have resulted in ongoing annual restructuring related charges of approximately $250 - $500 million before tax. In 2012, the Company began a $10 billion strategic productivity and cost savings initiative that includes incremental restructuring activities. In 2017, we communicated details of an additional multi-year productivity and cost savings plan. This results in incremental restructuring charges to accelerate productivity efforts and cost savings. The adjustment to Core earnings includes only the restructuring costs above what we believe are the normal recurring level of restructuring costs. |
• | Transitional Impacts of the U.S. Tax Act: As discussed in Note 5 to the Consolidated Financial Statements, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Act”) in December 2017. This resulted in a net charge of $602 million for the fiscal year 2018. The adjustment to core earnings only includes this transitional impact. It does not include the ongoing impacts of the lower U.S. statutory rate on current year earnings. |
• | Early debt extinguishment charges: In fiscal 2018 and 2017, the Company recorded after-tax charges of $243 million and $345 million, respectively, due to the early extinguishment of certain long-term debt. These charges represent the difference between the reacquisition price and the par value of the debt extinguished. |
• | Charges for certain European legal matters: Several countries in Europe issued separate complaints alleging that the Company, along with several other companies, engaged in violations of competition laws in prior periods. In 2016, the Company incurred after-tax charges of $11 million to adjust legal reserves related to these matters. |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||
Twelve Months Ended June 30, 2018 | |||||||||||||||||||||||
AS REPORTED (GAAP) | INCREMENTAL RESTRUCTURING | TRANSITIONAL IMPACTS OF THE U.S. TAX ACT | EARLY DEBT EXTINGUISHMENT | ROUNDING | NON-GAAP (CORE) | ||||||||||||||||||
COST OF PRODUCTS SOLD | $ | 34,268 | $ | (724 | ) | $ | — | $ | (1 | ) | $ | 33,543 | |||||||||||
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSE | 18,853 | (15 | ) | — | 1 | 18,839 | |||||||||||||||||
OPERATING INCOME | 13,711 | 739 | — | — | 14,450 | ||||||||||||||||||
INCOME TAX ON CONTINUING OPERATIONS | 3,465 | 129 | (602 | ) | 103 | — | 3,095 | ||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 9,750 | 610 | 602 | 243 | (1 | ) | 11,204 | ||||||||||||||||
Core EPS | |||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE* | $ | 3.67 | $ | 0.23 | $ | 0.23 | $ | 0.09 | $ | — | $ | 4.22 |
CHANGE VERSUS YEAR AGO | ||||
CORE EPS | 8 | % |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||
Twelve Months Ended June 30, 2017 | |||||||||||||||||||||||
AS REPORTED (GAAP) | DISCONTINUED OPERATIONS | INCREMENTAL RESTRUCTURING | EARLY DEBT EXTINGUISHMENT | ROUNDING | NON-GAAP (CORE) | ||||||||||||||||||
COST OF PRODUCTS SOLD | $ | 32,535 | $ | — | $ | (498 | ) | $ | — | $ | — | $ | 32,037 | ||||||||||
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSE | 18,568 | — | 99 | — | — | 18,667 | |||||||||||||||||
OPERATING INCOME | 13,955 | — | 399 | — | — | 14,354 | |||||||||||||||||
INCOME TAX ON CONTINUING OPERATIONS | 3,063 | — | 120 | 198 | — | 3,381 | |||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 15,326 | (5,217 | ) | 279 | 345 | (1 | ) | 10,732 | |||||||||||||||
Core EPS | |||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE* | $ | 5.59 | $ | (1.90 | ) | $ | 0.10 | $ | 0.13 | $ | — | $ | 3.92 |
CHANGE VERSUS YEAR AGO | ||||
CORE EPS | 7 | % |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||
Twelve Months Ended June 30, 2016 | |||||||||||||||||||||||
AS REPORTED (GAAP) | DISCONTINUED OPERATIONS | INCREMENTAL RESTRUCTURING | CHARGES FOR EUROPEAN LEGAL MATTERS | ROUNDING | NON-GAAP (CORE) | ||||||||||||||||||
COST OF PRODUCTS SOLD | $ | 32,909 | $ | — | $ | (624 | ) | $ | — | $ | — | $ | 32,285 | ||||||||||
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSE | 18,949 | — | 31 | (13 | ) | — | 18,967 | ||||||||||||||||
OPERATING INCOME | 13,441 | — | 593 | 13 | — | 14,047 | |||||||||||||||||
INCOME TAX ON CONTINUING OPERATIONS | 3,342 | — | 94 | 2 | (1 | ) | 3,437 | ||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 10,508 | (577 | ) | 499 | 11 | — | 10,441 | ||||||||||||||||
Core EPS | |||||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE* | $ | 3.69 | $ | (0.20 | ) | $ | 0.18 | $ | — | $ | — | $ | 3.67 |
/s/ David S. Taylor |
David S. Taylor |
Chairman of the Board, President and Chief Executive Officer |
/s/ Jon R. Moeller |
Jon R. Moeller |
Vice Chairman and Chief Financial Officer |
August 7, 2018 |
/s/ Deloitte & Touche LLP |
Cincinnati, Ohio |
August 7, 2018 |
We have served as the Company’s auditor since 1890. |
/s/ Deloitte & Touche LLP |
Cincinnati, Ohio |
August 7, 2018 |
Amounts in millions except per share amounts; Years ended June 30 | 2018 | 2017 | 2016 | ||||||||
NET SALES | $ | $ | $ | ||||||||
Cost of products sold | |||||||||||
Selling, general and administrative expense | |||||||||||
OPERATING INCOME | |||||||||||
Interest expense | |||||||||||
Interest income | |||||||||||
Other non-operating income/(expense), net | ( | ) | ( | ) | |||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | |||||||||||
Income taxes on continuing operations | |||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | |||||||||||
NET EARNINGS FROM DISCONTINUED OPERATIONS | |||||||||||
NET EARNINGS | |||||||||||
Less: Net earnings attributable to noncontrolling interests | |||||||||||
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE | $ | $ | $ | ||||||||
BASIC NET EARNINGS PER COMMON SHARE: (1) | |||||||||||
Earnings from continuing operations | $ | $ | $ | ||||||||
Earnings from discontinued operations | |||||||||||
BASIC NET EARNINGS PER COMMON SHARE | $ | $ | $ | ||||||||
DILUTED NET EARNINGS PER COMMON SHARE: (1) | |||||||||||
Earnings from continuing operations | $ | $ | $ | ||||||||
Earnings from discontinued operations | |||||||||||
DILUTED NET EARNINGS PER COMMON SHARE | $ | $ | $ | ||||||||
DIVIDENDS PER COMMON SHARE | $ | $ | $ |
(1) |
Amounts in millions; Years ended June 30 | 2018 | 2017 | 2016 | ||||||||
NET EARNINGS | $ | $ | $ | ||||||||
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | |||||||||||
Financial statement foreign currency translation | ( | ) | ( | ) | |||||||
Unrealized gains/(losses) on hedges (net of $(279), $(186) and $5 tax, respectively) | ( | ) | ( | ) | |||||||
Unrealized gains/(losses) on investment securities (net of $0, $(6) and $7 tax, respectively) | ( | ) | ( | ) | |||||||
Unrealized gains/(losses) on defined benefit retirement plans (net of $68, $551 and $(621) tax, respectively) | ( | ) | |||||||||
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | ( | ) | ( | ) | |||||||
TOTAL COMPREHENSIVE INCOME | |||||||||||
Less: Total comprehensive income attributable to noncontrolling interests | |||||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE | $ | $ | $ |
Amounts in millions; As of June 30 | 2018 | 2017 | |||||
Assets | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | $ | |||||
Available-for-sale investment securities | |||||||
Accounts receivable | |||||||
INVENTORIES | |||||||
Materials and supplies | |||||||
Work in process | |||||||
Finished goods | |||||||
Total inventories | |||||||
Prepaid expenses and other current assets | |||||||
TOTAL CURRENT ASSETS | |||||||
PROPERTY, PLANT AND EQUIPMENT, NET | |||||||
GOODWILL | |||||||
TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET | |||||||
OTHER NONCURRENT ASSETS | |||||||
TOTAL ASSETS | $ | $ | |||||
Liabilities and Shareholders' Equity | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | $ | |||||
Accrued and other liabilities | |||||||
Debt due within one year | |||||||
TOTAL CURRENT LIABILITIES | |||||||
LONG-TERM DEBT | |||||||
DEFERRED INCOME TAXES | |||||||
OTHER NONCURRENT LIABILITIES | |||||||
TOTAL LIABILITIES | |||||||
SHAREHOLDERS' EQUITY | |||||||
Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) | |||||||
Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized) | |||||||
Common stock, stated value $1 per share (10,000 shares authorized; shares issued: 2018 - 4,009.2, 2017 - 4,009.2) | |||||||
Additional paid-in capital | |||||||
Reserve for ESOP debt retirement | ( | ) | ( | ) | |||
Accumulated other comprehensive income/(loss) | ( | ) | ( | ) | |||
Treasury stock, at cost (shares held: 2018 -1,511.2, 2017 - 1,455.9) | ( | ) | ( | ) | |||
Retained earnings | |||||||
Noncontrolling interest | |||||||
TOTAL SHAREHOLDERS' EQUITY | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | $ |
Dollars in millions; shares in thousands | Common Stock | Preferred Stock | Add-itional Paid-In Capital | Reserve for ESOP Debt Retirement | Accumu-lated Other Comp-rehensive Income/(Loss) | Treasury Stock | Retained Earnings | Non-controlling Interest | Total Share-holders' Equity | ||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||
BALANCE JUNE 30, 2015 | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | $ | $ | $ | |||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||
Other comprehensive loss | ( | ) | ( | ) | |||||||||||||||||||||||||
Dividends and dividend equivalents: | |||||||||||||||||||||||||||||
Common | ( | ) | ( | ) | |||||||||||||||||||||||||
Preferred, net of tax benefits | ( | ) | ( | ) | |||||||||||||||||||||||||
Treasury stock purchases (1) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Employee stock plans | ( | ) | |||||||||||||||||||||||||||
Preferred stock conversions | ( | ) | |||||||||||||||||||||||||||
ESOP debt impacts | |||||||||||||||||||||||||||||
Noncontrolling interest, net | ( | ) | ( | ) | |||||||||||||||||||||||||
BALANCE JUNE 30, 2016 | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | $ | $ | $ | |||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||
Other comprehensive loss | |||||||||||||||||||||||||||||
Dividends and dividend equivalents: | |||||||||||||||||||||||||||||
Common | ( | ) | ( | ) | |||||||||||||||||||||||||
Preferred, net of tax benefits | ( | ) | ( | ) | |||||||||||||||||||||||||
Treasury stock purchases (2) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Employee stock plans | ( | ) | |||||||||||||||||||||||||||
Preferred stock conversions | ( | ) | |||||||||||||||||||||||||||
ESOP debt impacts | |||||||||||||||||||||||||||||
Noncontrolling interest, net | ( | ) | ( | ) | |||||||||||||||||||||||||
BALANCE JUNE 30, 2017 | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | $ | $ | $ | |||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||
Other comprehensive loss | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Dividends and dividend equivalents: | |||||||||||||||||||||||||||||
Common | ( | ) | ( | ) | |||||||||||||||||||||||||
Preferred, net of tax benefits | ( | ) | ( | ) | |||||||||||||||||||||||||
Treasury stock purchases | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Employee stock plans | |||||||||||||||||||||||||||||
Preferred stock conversions | ( | ) | |||||||||||||||||||||||||||
ESOP debt impacts | |||||||||||||||||||||||||||||
Noncontrolling interest, net | ( | ) | ( | ) | |||||||||||||||||||||||||
BALANCE JUNE 30, 2018 | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | $ | $ | $ |
(1) |
(2) |
Amounts in millions; Years ended June 30 | 2018 | 2017 | 2016 | ||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | $ | $ | $ | ||||||||
OPERATING ACTIVITIES | |||||||||||
Net earnings | |||||||||||
Depreciation and amortization | |||||||||||
Loss on early extinguishment of debt | |||||||||||
Share-based compensation expense | |||||||||||
Deferred income taxes | ( | ) | ( | ) | ( | ) | |||||
Gain on sale of assets | ( | ) | ( | ) | ( | ) | |||||
Goodwill and intangible asset impairment charges | |||||||||||
Change in accounts receivable | ( | ) | ( | ) | |||||||
Change in inventories | ( | ) | |||||||||
Change in accounts payable, accrued and other liabilities | ( | ) | |||||||||
Change in other operating assets and liabilities | ( | ) | |||||||||
Other | |||||||||||
TOTAL OPERATING ACTIVITIES | |||||||||||
INVESTING ACTIVITIES | |||||||||||
Capital expenditures | ( | ) | ( | ) | ( | ) | |||||
Proceeds from asset sales | |||||||||||
Acquisitions, net of cash acquired | ( | ) | ( | ) | ( | ) | |||||
Purchases of short-term investments | ( | ) | ( | ) | ( | ) | |||||
Proceeds from sales and maturities of short-term investments | |||||||||||
Pre-divestiture addition of restricted cash related to the Beauty Brands divestiture | ( | ) | ( | ) | |||||||
Cash transferred at closing related to the Beauty Brands divestiture | ( | ) | |||||||||
Release of restricted cash upon closing of the Beauty Brands divestiture | |||||||||||
Cash transferred in Batteries divestiture | ( | ) | |||||||||
Change in other investments | ( | ) | |||||||||
TOTAL INVESTING ACTIVITIES | ( | ) | ( | ) | ( | ) | |||||
FINANCING ACTIVITIES | |||||||||||
Dividends to shareholders | ( | ) | ( | ) | ( | ) | |||||
Change in short-term debt | ( | ) | ( | ) | |||||||
Additions to long-term debt | |||||||||||
Reductions of long-term debt (1) | ( | ) | ( | ) | ( | ) | |||||
Treasury stock purchases | ( | ) | ( | ) | ( | ) | |||||
Treasury stock from cash infused in Batteries divestiture | ( | ) | |||||||||
Impact of stock options and other | |||||||||||
TOTAL FINANCING ACTIVITIES | ( | ) | ( | ) | ( | ) | |||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | ( | ) | ( | ) | |||||||
CHANGE IN CASH AND CASH EQUIVALENTS | ( | ) | ( | ) | |||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | $ | $ | ||||||||
SUPPLEMENTAL DISCLOSURE | |||||||||||
Cash payments for interest | $ | $ | $ | ||||||||
Cash payment for income taxes | |||||||||||
Divestiture of Batteries business in exchange for shares of P&G stock (2) | — | — | 4,213 | ||||||||
Divestiture of Beauty business in exchange for shares of P&G stock and assumption of debt | — | 11,360 | — | ||||||||
Assets acquired through non-cash capital leases are immaterial for all periods. |
(1) |
(2) | Includes $1,730 from cash infused into the Batteries business pursuant to the divestiture agreement (see Note 13). |
• | Beauty: Hair Care (Conditioner, Shampoo, Styling Aids, Treatments); Skin and Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care); |
• | Grooming: Shave Care (Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, Other Shave Care); Appliances |
• | Health Care: Oral Care (Toothbrushes, Toothpaste, Other Oral Care); Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Vitamins/Minerals/Supplements, Other Personal Health Care); |
• | Fabric & Home Care: Fabric Care (Fabric Enhancers, Laundry Additives, Laundry Detergents); Home Care (Air Care, Dish Care, P&G Professional, Surface Care ); and |
• | Baby, Feminine & Family Care: Baby Care (Baby Wipes, Diapers and Pants); Feminine Care (Adult Incontinence, Feminine Care); Family Care (Paper Towels, Tissues, Toilet Paper). |
% of Sales by Business Unit (1) | |||||
Years ended June 30 | 2018 | 2017 | 2016 | ||
Fabric Care | |||||
Baby Care | |||||
Hair Care | |||||
Home Care | |||||
Skin and Personal Care | |||||
Shave Care | |||||
Family Care | |||||
Oral Care | |||||
Feminine Care | |||||
All Other | |||||
TOTAL |
(1) |
Global Segment Results | Net Sales | Earnings/(Loss) from Continuing Operations Before Income Taxes | Net Earnings/(Loss) from Continuing Operations | Depreciation and Amortization | Total Assets | Capital Expenditures | |||||||||||||||||||
BEAUTY | 2018 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
2017 | |||||||||||||||||||||||||
2016 | |||||||||||||||||||||||||
GROOMING | 2018 | ||||||||||||||||||||||||
2017 | |||||||||||||||||||||||||
2016 | |||||||||||||||||||||||||
HEALTH CARE | 2018 | ||||||||||||||||||||||||
2017 | |||||||||||||||||||||||||
2016 | |||||||||||||||||||||||||
FABRIC & HOME CARE | 2018 | ||||||||||||||||||||||||
2017 | |||||||||||||||||||||||||
2016 | |||||||||||||||||||||||||
BABY, FEMININE & FAMILY CARE | 2018 | ||||||||||||||||||||||||
2017 | |||||||||||||||||||||||||
2016 | |||||||||||||||||||||||||
CORPORATE (1) | 2018 | ( | ) | ( | ) | ||||||||||||||||||||
2017 | ( | ) | |||||||||||||||||||||||
2016 | ( | ) | ( | ) | |||||||||||||||||||||
TOTAL COMPANY | 2018 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
2017 | |||||||||||||||||||||||||
2016 |
(1) |
As of June 30 | 2018 | 2017 | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||||
Buildings | $ | $ | |||||
Machinery and equipment | |||||||
Land | |||||||
Construction in progress | |||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT | |||||||
Accumulated depreciation | ( | ) | ( | ) | |||
PROPERTY, PLANT AND EQUIPMENT, NET | $ | $ |
As of June 30 | 2018 | 2017 | |||||
ACCRUED AND OTHER LIABILITIES - CURRENT | |||||||
Marketing and promotion | $ | $ | |||||
Compensation expenses | |||||||
Restructuring reserves | |||||||
Taxes payable | |||||||
Legal and environmental | |||||||
Other | |||||||
TOTAL | $ | $ | |||||
OTHER NONCURRENT LIABILITIES | |||||||
Pension benefits | $ | $ | |||||
Other postretirement benefits | |||||||
Uncertain tax positions | |||||||
U.S. Tax Act transitional tax payable | |||||||
Other | |||||||
TOTAL | $ | $ |
Amounts in millions | Separations | Asset-Related Costs | Other | Total | ||||||||
RESERVE JUNE 30, 2016 | $ | $ | $ | $ | ||||||||
Charges | ||||||||||||
Cash spent (1) | ( | ) | ( | ) | ( | ) | ||||||
Charges against assets | ( | ) | ( | ) | ||||||||
RESERVE JUNE 30, 2017 | ||||||||||||
Charges | ||||||||||||
Cash spent | ( | ) | ( | ) | ( | ) | ||||||
Charges against assets | ( | ) | ( | ) | ||||||||
RESERVE JUNE 30, 2018 | $ | $ | $ | $ |
(1) |
Years ended June 30 | 2018 | 2017 | 2016 | ||||||
Beauty | $ | $ | $ | ||||||
Grooming | |||||||||
Health Care | |||||||||
Fabric & Home Care | |||||||||
Baby, Feminine & Family Care | |||||||||
Corporate (1) | |||||||||
Total Company | $ | $ | $ |
(1) |
Beauty | Grooming | Health Care | Fabric & Home Care | Baby, Feminine & Family Care | Corporate | Total Company | |||||||||||||||
Balance at June 30, 2016 - Net (1) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||
Acquisitions and divestitures | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Translation and other | |||||||||||||||||||||
Balance at June 30, 2017 - Net (1) | |||||||||||||||||||||
Acquisitions and divestitures | |||||||||||||||||||||
Translation and other | |||||||||||||||||||||
Balance at June 30, 2018 - Net (1) | $ | $ | $ | $ | $ | $ | $ |
(1) |
2018 | 2017 | ||||||||||||
As of June 30 | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||
INTANGIBLE ASSETS WITH DETERMINABLE LIVES | |||||||||||||
Brands | $ | $ | ( | ) | $ | $ | ( | ) | |||||
Patents and technology | ( | ) | ( | ) | |||||||||
Customer relationships | ( | ) | ( | ) | |||||||||
Other | ( | ) | ( | ) | |||||||||
TOTAL | $ | $ | ( | ) | $ | $ | ( | ) | |||||
INTANGIBLE ASSETS WITH INDEFINITE LIVES | |||||||||||||
Brands | — | — | |||||||||||
TOTAL | $ | $ | ( | ) | $ | $ | ( | ) |
Years ended June 30 | 2018 | 2017 | 2016 | ||||||||
Intangible asset amortization | $ | $ | $ |
Years ending June 30 | 2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||
Estimated amortization expense | $ | $ | $ | $ | $ |
Years ended June 30 | 2018 | 2017 | 2016 | ||||||||
United States | $ | $ | $ | ||||||||
International | |||||||||||
TOTAL | $ | $ | $ |
Years ended June 30 | 2018 | 2017 | 2016 | ||||||||
CURRENT TAX EXPENSE | |||||||||||
U.S. federal | $ | $ | $ | ||||||||
International | |||||||||||
U.S. state and local | |||||||||||
DEFERRED TAX EXPENSE | |||||||||||
U.S. federal | ( | ) | |||||||||
International and other | ( | ) | |||||||||
( | ) | ( | ) | ||||||||
TOTAL TAX EXPENSE | $ | $ | $ |
Years ended June 30 | 2018 | 2017 | 2016 | |||||
U.S. federal statutory income tax rate | % | % | % | |||||
Country mix impacts of foreign operations | ( | )% | ( | )% | ( | )% | ||
Changes in uncertain tax positions | ( | )% | ( | )% | ( | )% | ||
Excess tax benefits from the exercise of stock options | ( | )% | ( | )% | % | |||
Net transitional impact of U.S. Tax Act | % | % | % | |||||
Other | ( | )% | ( | )% | ( | )% | ||
EFFECTIVE INCOME TAX RATE | % | % | % |
Years ended June 30 | 2018 | 2017 | 2016 | ||||||||
BEGINNING OF YEAR | $ | $ | $ | ||||||||
Increases in tax positions for prior years | |||||||||||
Decreases in tax positions for prior years | ( | ) | ( | ) | ( | ) | |||||
Increases in tax positions for current year | |||||||||||
Settlements with taxing authorities | ( | ) | ( | ) | ( | ) | |||||
Lapse in statute of limitations | ( | ) | ( | ) | ( | ) | |||||
Currency translation | ( | ) | ( | ) | ( | ) | |||||
END OF YEAR | $ | $ | $ |
As of June 30 | 2018 | 2017 | |||||
DEFERRED TAX ASSETS | |||||||
Pension and postretirement benefits | $ | $ | |||||
Loss and other carryforwards | |||||||
Stock-based compensation | |||||||
Fixed assets | |||||||
Accrued marketing and promotion | |||||||
Unrealized loss on financial and foreign exchange transactions | |||||||
Inventory | |||||||
Accrued interest and taxes | |||||||
Advance payments | |||||||
Other | |||||||
Valuation allowances | ( | ) | ( | ) | |||
TOTAL | $ | $ | |||||
DEFERRED TAX LIABILITIES | |||||||
Goodwill and intangible assets | $ | $ | |||||
Fixed assets | |||||||
Foreign withholding tax on earnings to be repatriated | |||||||
Unrealized gain on financial and foreign exchange transactions | |||||||
Other | |||||||
TOTAL | $ | $ |
Years ended June 30 | 2018 | 2017 | 2016 | ||||||||||||||||||||
CONSOLIDATED AMOUNTS | Total | Continuing Operations | Discontinued Operations | Total | Continuing Operations | Discontinued Operations | Total | ||||||||||||||||
Net earnings | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Less: Net earnings attributable to noncontrolling interests | |||||||||||||||||||||||
Net earnings attributable to P&G (Diluted) | |||||||||||||||||||||||
Preferred dividends, net of tax | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Net earnings attributable to P&G available to common shareholders (Basic) | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
SHARES IN MILLIONS | |||||||||||||||||||||||
Basic weighted average common shares outstanding | |||||||||||||||||||||||
Add: Effect of dilutive securities | |||||||||||||||||||||||
Conversion of preferred shares(1) | |||||||||||||||||||||||
Impact of stock options and other unvested equity awards (2) | |||||||||||||||||||||||
Diluted weighted average common shares outstanding | |||||||||||||||||||||||
NET EARNINGS PER SHARE (3) | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Diluted | $ | $ | $ | $ | $ | $ | $ |
(1) |
(2) |
(3) |
Years ended June 30 | 2018 | 2017 (1) | 2016 (1) | ||||||||
Stock options | $ | $ | $ | ||||||||
RSUs and PSUs | |||||||||||
Total stock-based expense | $ | $ | $ | ||||||||
Income tax benefit | $ | $ | $ |
(1) |
Years ended June 30 | 2018 | 2017 | 2016 | |||||||||||
Interest rate | - | % | - | % | - | % | ||||||||
Weighted average interest rate | % | % | % | |||||||||||
Dividend yield | % | % | % | |||||||||||
Expected volatility | % | % | % | |||||||||||
Expected life in years |
Options | Options (in thousands) | Weighted Average Exercise Price | Weighted Average Contract-ual Life in Years | Aggregate Intrinsic Value | |||||
Outstanding, beginning of year | $ | ||||||||
Granted | |||||||||
Exercised | ( | ) | |||||||
Canceled | ( | ) | |||||||
OUTSTANDING, END OF YEAR | $ | $ | |||||||
EXERCISABLE | $ | $ |
Years ended June 30 | 2018 | 2017 | 2016 | ||||||||
Weighted average grant-date fair value of options granted | $ | $ | $ | ||||||||
Intrinsic value of options exercised | |||||||||||
Grant-date fair value of options that vested | |||||||||||
Cash received from options exercised | |||||||||||
Actual tax benefit from options exercised |
RSUs | PSUs | ||||||||||
RSU and PSU awards | Units (in thousands) | Weighted Average Grant Date Fair Value | Units (in thousands) | Weighted Average Grant Date Fair Value | |||||||
Non-vested at July 1, 2017 | $ | $ | |||||||||
Granted | |||||||||||
Vested | ( | ) | ( | ) | |||||||
Forfeited | ( | ) | ( | ) | |||||||
Non-vested at June 30, 2018 | $ | $ |
Pension Benefits (1) | Other Retiree Benefits (2) | ||||||||||||||
Years ended June 30 | 2018 | 2017 | 2018 | 2017 | |||||||||||
CHANGE IN BENEFIT OBLIGATION | |||||||||||||||
Benefit obligation at beginning of year (3) | $ | $ | $ | $ | |||||||||||
Service cost | |||||||||||||||
Interest cost | |||||||||||||||
Participants' contributions | |||||||||||||||
Amendments | ( | ) | |||||||||||||
Net actuarial loss/(gain) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Acquisitions/(divestitures) (4) | ( | ) | ( | ) | |||||||||||
Curtailments | ( | ) | ( | ) | |||||||||||
Special termination benefits | |||||||||||||||
Currency translation and other | |||||||||||||||
Benefit payments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
BENEFIT OBLIGATION AT END OF YEAR (3) | $ | $ | $ | $ |
CHANGE IN PLAN ASSETS | |||||||||||||||
Fair value of plan assets at beginning of year | $ | $ | $ | $ | |||||||||||
Actual return on plan assets | ( | ) | |||||||||||||
Acquisitions/(divestitures) (4) | ( | ) | |||||||||||||
Employer contributions | |||||||||||||||
Participants' contributions | |||||||||||||||
Currency translation and other | ( | ) | ( | ) | ( | ) | |||||||||
ESOP debt impacts (5) | |||||||||||||||
Benefit payments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $ | $ | $ | $ | |||||||||||
FUNDED STATUS | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(1) |
(2) |
(3) |
(4) |
(5) |
Pension Benefits | Other Retiree Benefits | ||||||||||||||
As of June 30 | 2018 | 2017 | 2018 | 2017 | |||||||||||
CLASSIFICATION OF NET AMOUNT RECOGNIZED | |||||||||||||||
Noncurrent assets | $ | $ | $ | $ | |||||||||||
Current liabilities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Noncurrent liabilities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
NET AMOUNT RECOGNIZED | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | |||||||||||||||
Net actuarial loss | $ | $ | $ | $ | |||||||||||
Prior service cost/(credit) | ( | ) | ( | ) | |||||||||||
NET AMOUNTS RECOGNIZED IN AOCI | $ | $ | $ | $ |
Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | Projected Benefit Obligation Exceeds the Fair Value of Plan Assets | ||||||||||||||
As of June 30 | 2018 | 2017 | 2018 | 2017 | |||||||||||
Projected benefit obligation | $ | $ | $ | $ | |||||||||||
Accumulated benefit obligation | |||||||||||||||
Fair value of plan assets |
Pension Benefits | Other Retiree Benefits | |||||||||||||||||||||||
Years ended June 30 | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST | ||||||||||||||||||||||||
Service cost | $ | $ | (1) | $ | (1) | $ | $ | (1) | $ | (1) | ||||||||||||||
Interest cost | ||||||||||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
Amortization of net actuarial loss | ||||||||||||||||||||||||
Amortization of prior service cost/(credit) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Amortization of net actuarial loss/ prior service cost due to settlements and curtailments | (2) | (2) | ||||||||||||||||||||||
Special termination benefits | (2) | |||||||||||||||||||||||
GROSS BENEFIT COST/(CREDIT) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Dividends on ESOP preferred stock | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
NET PERIODIC BENEFIT COST/(CREDIT) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||||
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI | ||||||||||||||||||||||||
Net actuarial loss/(gain) - current year | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||||||||||
Prior service cost/(credit) - current year | ( | ) | ||||||||||||||||||||||
Amortization of net actuarial loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Amortization of prior service (cost)/credit | ( | ) | ( | ) | ||||||||||||||||||||
Amortization of net actuarial loss/prior service costs due to settlements and curtailments | ( | ) | ( | ) | ||||||||||||||||||||
Reduction in net actuarial losses resulting from curtailment | ( | ) | ( | ) | ||||||||||||||||||||
Currency translation and other | ( | ) | ||||||||||||||||||||||
TOTAL CHANGE IN AOCI | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) |
(1) |
(2) |
Pension Benefits | Other Retiree Benefits | ||||||
Net actuarial loss | $ | $ | |||||
Prior service cost/(credit) | ( | ) |
Pension Benefits | Other Retiree Benefits | ||||||||||
As of June 30 | 2018 | 2017 | 2018 | 2017 | |||||||
Discount rate | % | % | % | % | |||||||
Rate of compensation increase | % | % | N/A | N/A | |||||||
Health care cost trend rates assumed for next year | N/A | N/A | % | % | |||||||
Rate to which the health care cost trend rate is assumed to decline (ultimate trend rate) | N/A | N/A | % | % | |||||||
Year that the rate reaches the ultimate trend rate | N/A | N/A |
(1) |
Pension Benefits | Other Retiree Benefits | ||||||||||||||||
Years ended June 30 | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||
Discount rate | % | % | % | % | % | % | |||||||||||
Expected return on plan assets | % | % | % | % | % | % | |||||||||||
Rate of compensation increase | % | % | % | N/A | N/A | N/A |
(1) |
One-Percentage Point Increase | One-Percentage Point Decrease | ||||||
Effect on the total service and interest cost components | $ | $ | ( | ) | |||
Effect on the accumulated postretirement benefit obligation | ( | ) |
Target Asset Allocation | Actual Asset Allocation at June 30 | ||||||||||||||||
Pension Benefits | Other Retiree Benefits | Pension Benefits | Other Retiree Benefits | ||||||||||||||
Asset Category | 2018 | 2017 | 2018 | 2017 | |||||||||||||
Cash | % | % | % | % | % | % | |||||||||||
Debt securities | % | % | % | % | % | % | |||||||||||
Equity securities | % | % | % | % | % | % | |||||||||||
TOTAL | % | % | % | % | % | % |
Pension Benefits | Other Retiree Benefits | ||||||||||||||||||
As of June 30 | Fair Value Hierarchy Level | 2018 | 2017 | Fair Value Hierarchy Level | 2018 | 2017 | |||||||||||||
ASSETS AT FAIR VALUE | |||||||||||||||||||
Cash and cash equivalents | 1 | $ | $ | 1 | $ | $ | |||||||||||||
Company stock (1) | 2 | ||||||||||||||||||
Other (2) | 1, 2 & 3 | 1 | |||||||||||||||||
TOTAL ASSETS IN THE FAIR VALUE HEIRARCHY | |||||||||||||||||||
Investments valued at net asset value | |||||||||||||||||||
TOTAL ASSETS AT FAIR VALUE | $ | $ |
(1) |
(2) |
Years ending June 30 | Pension Benefits | Other Retiree Benefits | |||||
EXPECTED BENEFIT PAYMENTS | |||||||
2019 | $ | $ | |||||
2020 | |||||||
2021 | |||||||
2022 | |||||||
2023 | |||||||
2024 - 2028 |
Shares in thousands | 2018 | 2017 | 2016 | |||||
Allocated | ||||||||
Unallocated | ||||||||
TOTAL SERIES A | ||||||||
Allocated | ||||||||
Unallocated | ||||||||
TOTAL SERIES B |
• | Level 1: Quoted market prices in active markets for identical assets or liabilities. |
• | Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. |
• | Level 3: Unobservable inputs reflecting the reporting entity's own assumptions or external inputs from inactive markets. |
Fair Value Asset | |||||||
As of June 30 | 2018 | 2017 | |||||
Investments: | |||||||
U.S. government securities | $ | $ | |||||
Corporate bond securities | |||||||
Other investments | |||||||
TOTAL | $ | $ |
Notional Amount | Fair Value Asset | Fair Value (Liability) | |||||||||||||||||||||
As of June 30 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | |||||||||||||||||||||||
Interest rate contracts | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS | |||||||||||||||||||||||
Foreign currency interest rate contracts | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||
TOTAL DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||
TOTAL DERIVATIVES AT FAIR VALUE | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) |
Amount of Gain/(Loss) Recognized in AOCI on Derivatives | |||||||
As of June 30 | 2018 | 2017 | |||||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2) | |||||||
Foreign currency interest rate contracts | $ | ( | ) | $ | ( | ) | |
Amount of Gain/(Loss) Reclassified from AOCI into Earnings | |||||||
Years ended June 30 | 2018 | 2017 | |||||
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS | |||||||
Foreign currency contracts | $ | $ | |||||
Amount of Gain/(Loss) Recognized in Earnings | |||||||
Years ended June 30 | 2018 | 2017 | |||||
DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | |||||||
Interest rate contracts | $ | ( | ) | $ | ( | ) | |
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||
Foreign currency contracts | $ | ( | ) | $ |
(1) |
(2) |
As of June 30 | 2018 | 2017 | |||||
DEBT DUE WITHIN ONE YEAR | |||||||
Current portion of long-term debt | $ | $ | |||||
Commercial paper | |||||||
Loan due August 2018 | |||||||
Other | |||||||
TOTAL | $ | $ | |||||
Short-term weighted average interest rates (1) | % | % |
(1) |
As of June 30 | 2018 | 2017 | |||
LONG-TERM DEBT | |||||
1.60% USD note due November 2018 | |||||
1.75% USD note due October 2019 | |||||
1.90% USD note due November 2019 | |||||
0.28% JPY note due May 2020 | |||||
1.90% USD note due October 2020 | |||||
4.13% EUR note due December 2020 | |||||
9.36% ESOP debentures due 2018-2021 (1) | |||||
1.85% USD note due February 2021 | |||||
1.70% USD note due November 2021 | |||||
2.00% EUR note due November 2021 | |||||
2.30% USD note due February 2022 | |||||
2.15% USD note due August 2022 | |||||
2.00% EUR note due August 2022 | |||||
3.10% USD note due August 2023 | |||||
1.13% EUR note due November 2023 | |||||
0.50% EUR note due October 2024 | |||||
2.70% USD note due February 2026 | |||||
2.45% USD note due November 2026 | |||||
4.88% EUR note due May 2027 | |||||
2.85% USD note due August 2027 | |||||
1.25% EUR note due October 2029 | |||||
5.55% USD note due March 2037 | |||||
3.50% USD note due October 2047 | |||||
Capital lease obligations | |||||
All other long-term debt | |||||
Current portion of long-term debt | ( | ) | ( | ) | |
TOTAL | $ | $ | |||
Long-term weighted average interest rates (2) | % | % |
(1) |
(2) |
Years ending June 30 | 2019 | 2020 | 2021 | 2022 | 2023 |
Debt maturities | $ | $ | $ | $ | $ |
Changes in Accumulated Other Comprehensive Income/(Loss) by Component | |||||||||||||||||||
Hedges | Investment Securities | Pension and Other Retiree Benefits | Financial Statement Translation | Total AOCI | |||||||||||||||
BALANCE at JUNE 30, 2016 | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
OCI before reclassifications (1) | ( | ) | ( | ) | |||||||||||||||
Amounts reclassified from AOCI (2) | ( | ) | ( | ) | ( | ) | |||||||||||||
Net current period OCI | ( | ) | ( | ) | |||||||||||||||
BALANCE at JUNE 30, 2017 | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||
OCI before reclassifications (3) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Amounts reclassified from AOCI (4) | ( | ) | |||||||||||||||||
Net current period OCI | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Less: Other comprehensive income/(loss) attributable to non-controlling interests | ( | ) | ( | ) | |||||||||||||||
BALANCE at JUNE 30, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(1) |
(2) |
(3) |
(4) |
• | Hedges: see Note 9 for classification of gains and losses from hedges in the Consolidated Statements of Earnings. |
• | Investment securities: amounts reclassified from AOCI into Other non-operating income, net. |
• | Pension and other retiree benefits: amounts reclassified from AOCI into Cost of product sold, SG&A, and Net earnings from discontinued operations and included in the computation of net periodic pension cost (see Note 8 for additional details). |
• |
Years ending June 30 | 2019 | 2020 | 2021 | 2022 | 2023 | There-after | ||||||||||||
Purchase obligations | $ | $ | $ | $ | $ | $ |
Years ending June 30 | 2019 | 2020 | 2021 | 2022 | 2023 | There-after | ||||||||||||
Operating leases | $ | $ | $ | $ | $ | $ |
Years ended June 30 | 2017 | 2016 | |||||
Beauty Brands | $ | $ | |||||
Batteries | |||||||
Net earnings from discontinued operations | $ | $ |
Beauty Brands | |||||||
Years ended June 30 | 2017 | 2016 | |||||
Net sales | $ | $ | |||||
Cost of products sold | |||||||
Selling, general and administrative expense | |||||||
Intangible asset impairment charges | |||||||
Interest expense | |||||||
Interest income | |||||||
Other non-operating income/(expense), net | |||||||
Earnings/(loss) from discontinued operations before income taxes | $ | ( | ) | $ | |||
Income taxes on discontinued operations | |||||||
Gain on sale of business before income taxes | $ | $ | |||||
Income tax expense/(benefit) on sale of business | ( | ) | (1) | ||||
Net earnings from discontinued operations | $ | $ |
(1) |
Beauty Brands | |||||||
Years ended June 30 | 2017 | 2016 | |||||
NON-CASH OPERATING ITEMS | |||||||
Depreciation and amortization | $ | $ | |||||
Deferred income tax benefit | ( | ) | |||||
Gain on sale of businesses | |||||||
Goodwill and intangible asset impairment charges | |||||||
Net increase in accrued taxes | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Cash taxes paid | $ | $ | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | $ | $ |
Net Sales | Earnings Before Impairment Charges and Income Taxes | Impairment Charges | Income Tax (Expense)/ Benefit | Loss on Sale Before Income Taxes | Income Tax (Expense)/ Benefit on Sale | Net Earnings from Discontinued Operations | |||||||||||||||
Batteries | 2016 | ( | ) | ( | ) | ( | ) | (1) |
(1) |
Quarters Ended | Sep 30 | Dec 31 | Mar 31 | Jun 30 | Total Year | ||||||||||||||||
NET SALES | 2017-2018 | $ | $ | $ | $ | $ | |||||||||||||||
2016-2017 | |||||||||||||||||||||
OPERATING INCOME | 2017-2018 | ||||||||||||||||||||
2016-2017 | |||||||||||||||||||||
GROSS MARGIN | 2017-2018 | % | % | % | % | % | |||||||||||||||
2016-2017 | % | % | % | % | % | ||||||||||||||||
NET EARNINGS: | |||||||||||||||||||||
Net earnings from continuing operations | 2017-2018 | $ | $ | $ | $ | $ | |||||||||||||||
2016-2017 | |||||||||||||||||||||
Net earnings/(loss) from discontinued operations | 2017-2018 | ||||||||||||||||||||
2016-2017 | ( | ) | |||||||||||||||||||
Net earnings attributable to Procter & Gamble | 2017-2018 | ||||||||||||||||||||
2016-2017 | |||||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE: (1) | |||||||||||||||||||||
Earnings from continuing operations | 2017-2018 | $ | $ | $ | $ | $ | |||||||||||||||
2016-2017 | |||||||||||||||||||||
Earnings/(loss) from discontinued operations | 2017-2018 | ||||||||||||||||||||
2016-2017 | ( | ) | |||||||||||||||||||
Net earnings | 2017-2018 | ||||||||||||||||||||
2016-2017 |
(1) |
Plan Category | (a) Number of securities to be issued upon exercise of outstanding options, warrants and rights | (b) Weighted-average exercise price of outstanding options, warrants and rights | (c) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||
Equity compensation plans approved by security holders (1) | ||||||||
Options | 204,890,213 | $74.3190 | (2) | |||||
Restricted Stock Units (RSUs)/Performance Stock Units (PSUs) | 11,449,954 | N/A | (2) | |||||
Equity compensation plans not approved by security holders (3) | ||||||||
Options | 876,818 | 48.1700 | (3) | |||||
GRAND TOTAL | 217,216,985 | $74.2076 | (4) |
(1) | Includes The Procter & Gamble 1992 Plan; The Procter & Gamble 2001 Stock and Incentive Compensation Plan; The Procter & Gamble 2003 Non-Employee Directors' Stock Plan; The Procter & Gamble 2009 Stock and Incentive Compensation Plan; and The Procter & Gamble 2014 Stock and Incentive Compensation Plan. |
(2) | Of the plans listed in (1), only The Procter & Gamble 2014 Stock and Incentive Compensation Plan allow for future grants of securities. The maximum number of shares that may be granted under this plan is 185 million shares. Stock options and stock appreciation rights are counted on a one for one basis while full value awards (such as RSUs and PSUs) will be counted as 5 shares for each share awarded. Total shares available for future issuance under this plan is 65 million. |
(3) | Includes The Gillette Company 2004 Long-Term Incentive Plan. This plan does not allow for future grants of securities. |
(4) | Weighted average exercise price of outstanding options only. |
1. | Financial Statements: |
• | Management's Report on Internal Control over Financial Reporting |
• | Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting |
• | Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements |
• | Consolidated Statements of Earnings - for years ended June 30, 2018, 2017 and 2016 |
• | Consolidated Statements of Other Comprehensive Income - for years ended June 30, 2018, 2017 and 2016 |
• | Consolidated Balance Sheets - as of June 30, 2018 and 2017 |
• | Consolidated Statements of Shareholders' Equity - for years ended June 30, 2018, 2017 and 2016 |
• | Consolidated Statements of Cash Flows - for years ended June 30, 2018, 2017 and 2016 |
• | Notes to Consolidated Financial Statements |
2. | Financial Statement Schedules: |
Exhibit (3-1) - | Amended Articles of Incorporation (as amended by shareholders at the annual meeting on October 11, 2011 and consolidated by the Board of Directors on April 8, 2016) (Incorporated by reference to Exhibit (3-1) of the Company's Annual Report on Form 10-K for the year ended June 30, 2016). | ||
(3-2) - | Regulations (as approved by the Board of Directors on April 8, 2016, pursuant to authority granted by shareholders at the annual meeting on October 13, 2009) (Incorporated by reference to Exhibit (3-2) of the Company's Annual Report on Form 10-K for the year ended June 30, 2016). | ||
Exhibit (4-1) - | Indenture, dated as of September 3, 2009, between the Company and Deutsche Bank Trust Company Americas, as Trustee (Incorporated by reference to Exhibit (4-1) of the Company's Annual Report on Form 10-K for the year ended June 30, 2015). | ||
Exhibit (10-1) - | The Procter & Gamble 2001 Stock and Incentive Compensation Plan (as amended), which was originally adopted by shareholders at the annual meeting on October 9, 2001 +; and related correspondence and terms and conditions (Incorporated by reference to Exhibit (10-1) of the Company's Form 10-Q for the quarter ended December 31, 2013). * | ||
(10-2) - | The Procter & Gamble 1992 Stock Plan (as amended December 11, 2001), which was originally adopted by the shareholders at the annual meeting on October 12, 1992 +. * | ||
(10-3) - | The Procter & Gamble Executive Group Life Insurance Policy +. * | ||
(10-4) - | Summary of the Company’s Retirement Plan Restoration Program (Incorporated by reference to Exhibit (10-27) of the Company's Annual Report on Form 10-K for the year ended June 30, 2016); and related correspondence and terms and conditions (Incorporated by reference to Exhibit (10-8) of the Company's Form 10-Q for the quarter ended September 30, 2015). * | ||
(10-5) - | The Procter & Gamble 1993 Non-Employee Directors' Stock Plan (as amended September 10, 2002), which was originally adopted by the shareholders at the annual meeting on October 11, 1994 +. * | ||
(10-6) - | Summary of the Company’s Long-Term Incentive Program (Incorporated by reference to Exhibit (10-6) of the Company's Annual Report on Form 10-K for the year ended June 30, 2016); related correspondence and terms and conditions (Incorporated by reference to Exhibit (10-6) of the Company's Annual Report on Form 10-K for the year ended June 30, 2017). * | ||
(10-7) - | The Procter & Gamble Future Shares Plan (as adjusted for the stock split effective May 21, 2004), which was originally adopted by the Board of Directors on October 14, 1997 (Incorporated by reference to Exhibit (10-7) of the Company's Annual Report on Form 10-K for the year ended June 30, 2015). * | ||
(10-8) - | The Procter & Gamble 2003 Non-Employee Directors' Stock Plan (as amended), which was originally adopted by the shareholders at the annual meeting on October 14, 2003, and related correspondence and terms and conditions +. * | ||
(10-9) - | The Procter & Gamble Company Executive Deferred Compensation Plan (Incorporated by reference to Exhibit (10-4) of the Company's Form 10-Q for the quarter ended December 31, 2013). * | ||
(10-10) - | Summary of the Company's Short Term Achievement Reward Program +; related correspondence and terms and conditions (Incorporated by reference to Exhibit (10-2) of the Company's Form 10-Q for the quarter ended September 30, 2015). * | ||
(10-11) - | Company's Forms of Separation Agreement & Release (Incorporated by reference to Exhibit (10-1) of the Company's Form 10-Q for the quarter ended March 31, 2018); Company's Form of Separation Letter and Release (Incorporated by reference to Exhibit (10-2)) of the Company's Form 10-Q for the quarter ended March 31, 2018). * | ||
(10-12) - | Summary of personal benefits available to certain officers and non-employee directors (Incorporated by reference to Exhibit (10-1) of the Company's Form 10-Q for the quarter ended September 30, 2013). * | ||
(10-13) - | The Gillette Company 2004 Long-Term Incentive Plan (as amended on August 14, 2007) +. * | ||
(10-14) - | The Gillette Company Executive Life Insurance Program (Incorporated by reference to Exhibit (10-14) of the Company’s Annual Report on Form 10-K for the year ended June 30, 2017). * | ||
(10-15) - | The Gillette Company Personal Financial Planning Reimbursement Program (Incorporated by reference to Exhibit (10-15) of the Company’s Annual Report on Form 10-K for the year ended June 30, 2017). * | ||
(10-16) - | The Gillette Company Senior Executive Financial Planning Program (Incorporated by reference to Exhibit (10-16) of the Company’s Annual Report on Form 10-K for the year ended June 30, 2017). * | ||
(10-17) - | The Gillette Company Estate Preservation (Incorporated by reference to Exhibit (10-17) of the Company’s Annual Report on Form 10-K for the year ended June 30, 2017). * | ||
(10-18) - | The Gillette Company Deferred Compensation Plan (Incorporated by reference to Exhibit (10-18) of the Company’s Annual Report on Form 10-K for the year ended June 30, 2017). * | ||
(10-19) - | Senior Executive Recoupment Policy +. * | ||
(10-20) - | The Gillette Company Deferred Compensation Plan (for salary deferrals prior to January 1, 2005) as amended through August 21, 2006 (Incorporated by reference to Exhibit (10-20) of the Company's Annual Report on Form 10-K for the year ended June 30, 2017). * | ||
(10-21) - | The Procter & Gamble 2009 Stock and Incentive Compensation Plan, which was originally adopted by shareholders at the annual meeting on October 13, 2009 (Incorporated by reference to Exhibit (10-21) of the Company's Annual Report on Form 10-K for the year ended June 30, 2017), and the Regulations of the Compensation and Leadership Development Committee for The Procter & Gamble 2009 Stock and Incentive Compensation Plan, The Procter & Gamble 2001 Stock and Incentive Compensation Plan, The Procter & Gamble 1992 Stock Plan, The Procter & Gamble 1992 Stock Plan (Belgium Version), The Gillette Company 2004 Long-Term Incentive Plan and the Gillette Company 1971 Stock Option Plan +. * | ||
(10-22) - | The Procter & Gamble 2009 Stock and Incentive Compensation Plan - Additional terms and conditions and related correspondence (Incorporated by reference to Exhibit (10-2) of the Company Form 10-Q for the quarter ended December 31, 2013). * | ||
(10-23) - | The Procter & Gamble Performance Stock Program Summary (Incorporated by reference to Exhibit (10-1) of the Company's Form 10-Q for the quarter ended September 30, 2017); related correspondence and terms and conditions (Incorporated by reference to Exhibit (10-2) of the Company's Form 10-Q for the quarter ended September 30, 2017). * | ||
(10-24) - | The Procter & Gamble 2013 Non-Employee Directors' Stock Plan (Incorporated by reference to Exhibit (10-3) of the Company's Form 10-Q for the quarter ended December 31, 2013). * | ||
(10-25) - | The Procter & Gamble 2014 Stock and Incentive Compensation Plan, which was originally adopted by shareholders at the annual meeting on October 14, 2014 (Incorporated by reference to Exhibit (10-25) of the Company's Annual Report on Form 10-K for the year ended June 30, 2016); and the Regulations of the Compensation and Leadership Development Committee for The Procter & Gamble 2014 Stock and Incentive Compensation Plan (Incorporated by reference to Exhibit (10-1) of the Company's Form 10-Q for the quarter ended December 31, 2017). * | ||
(10-26) - | The Procter & Gamble 2014 Stock and Incentive Compensation Plan - Additional terms and conditions (Incorporated by reference to Exhibit (10-26) of the Company's Annual Report on Form 10-K for the year ended June 30, 2017), and The Procter & Gamble 2014 Stock and Incentive Compensation Plan - Related correspondence (Incorporated by reference to Exhibit (10-1) of the Company's Form 10-Q for the quarter ended December 31, 2016). * | ||
Exhibit (12) - | Computation of Ratio of Earnings to Fixed Charges. + | ||
Exhibit (21) - | Subsidiaries of the Registrant. + | ||
Exhibit (23) - | Consent of Independent Registered Public Accounting Firm. + | ||
Exhibit (31) - | Rule 13a-14(a)/15d-14(a) Certifications. + | ||
Exhibit (32) - | Section 1350 Certifications. + | ||
Exhibit (99-1) - | Summary of Directors and Officers Insurance Program. + | ||
101.INS (1) | XBRL Instance Document | ||
101.SCH (1) | XBRL Taxonomy Extension Schema Document | ||
101.CAL (1) | XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.DEF (1) | XBRL Taxonomy Definition Linkbase Document | ||
101.LAB (1) | XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE (1) | XBRL Taxonomy Extension Presentation Linkbase Document | ||
(1 | ) | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability. | |
* | Compensatory plan or arrangement. | ||
+ | Filed herewith. |
THE PROCTER & GAMBLE COMPANY | ||
By | /s/ DAVID S. TAYLOR | |
(David S. Taylor) Chairman of the Board, President and Chief Executive Officer | ||
August 7, 2018 |
Signature | Title | Date | ||
/s/ DAVID S. TAYLOR (David S. Taylor) | Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer) | August 7, 2018 | ||
/s/ JON R. MOELLER (Jon R. Moeller) | Vice Chairman and Chief Financial Officer (Principal Financial Officer) | August 7, 2018 | ||
/s/ VALARIE L. SHEPPARD (Valarie L. Sheppard) | Senior Vice President, Comptroller & Treasurer (Principal Accounting Officer) | August 7, 2018 | ||
/s/ FRANCIS S. BLAKE (Francis S. Blake) | Director | August 7, 2018 | ||
/s/ ANGELA F. BRALY (Angela F. Braly) | Director | August 7, 2018 | ||
/s/ AMY L. CHANG (Amy L. Chang) | Director | August 7, 2018 | ||
/s/ KENNETH I. CHENAULT (Kenneth I. Chenault) | Director | August 7, 2018 | ||
/s/ SCOTT D. COOK (Scott D. Cook) | Director | August 7, 2018 | ||
/s/ JOSEPH JIMENEZ (Joseph Jimenez) | Director | August 7, 2018 | ||
/s/ TERRY J. LUNDGREN (Terry J. Lundgren) | Director | August 7, 2018 | ||
/s/ W. JAMES MCNERNEY, JR. (W. James McNerney, Jr.) | Director | August 7, 2018 | ||
/s/ NELSON PELTZ (Nelson Peltz) | Director | August 7, 2018 | ||
/s/ MARGARET C. WHITMAN (Margaret C. Whitman) | Director | August 7, 2018 | ||
/s/ PATRICIA A. WOERTZ (Patricia A. Woertz) | Director | August 7, 2018 | ||
/s/ ERNESTO ZEDILLO (Ernesto Zedillo) | Director | August 7, 2018 |
(10-18) - | |||
(10-19) - | |||
(10-20) - | |||
(10-21) - | |||
(10-22) - | |||
(10-23) - | |||
(10-24) - | |||
(10-25) - | |||
(10-26) - | |||
101.INS (1) | XBRL Instance Document | ||
101.SCH (1) | XBRL Taxonomy Extension Schema Document | ||
101.CAL (1) | XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.DEF (1) | XBRL Taxonomy Definition Linkbase Document | ||
101.LAB (1) | XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE (1) | XBRL Taxonomy Extension Presentation Linkbase Document | ||
(1 | ) | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability. | |
+ | Filed herewith. |
(1) | with respect to which the Participant's work has been directly concerned at any time during the two (2) years preceding termination of employment with the Company or one of its subsidiaries or |
(2) | with respect to which during that period of time the Participant, as a consequence of the Participant's job performance and duties, acquired knowledge of trade secrets or other confidential information of the Company or its subsidiaries. |
(a) | Any unexercisable portions thereof are then void, except in the case of: (1) death of the Participant; (2) Retirement or Special Separation that occurs more than six months from the date the options were granted; or (3) any option as to which the Committee has waived, at the time of grant, the provisions of this Article G, Paragraph 4(a). |
(b) | Any exercisable portions thereof are then void, except in the case of: (1) death of the Participant; (2) Retirement or Special Separation; or (3) any option as to which the Committee has waived, at the time of grant, the provisions of this Article G, Paragraph 4(b). |
(c) | In the case of a Special Separation which occurs prior to October 2, 2007, any stock option or stock appreciation right must be exercised within the time specified in the original grant or five (5) years from the date of Special Separation, whichever is shorter. For a Special Separation which occurs on or after October 2, 2007, any stock option or stock appreciation right must be exercised within the time specified in the original grant. |
(a) | An acquisition (other than directly from the Company) of any voting securities of the Company (the "Voting Securities") by any "Person" (as the term person is used for purposes of Section 13(d) or 14(d) of the Exchange Act), immediately after which such Person has "Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of the then outstanding shares or the combined voting power of the Company's then outstanding Voting Securities; provided, however, in determining whether a Change in Control has occurred pursuant to this Paragraph 4(a), shares or Voting Securities which are acquired in a "Non-Control Acquisition" (as hereinafter defined) shall not constitute an acquisition which would cause a Change in Control. A "Non-Control Acquisition" shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) the Company or (B) any corporation or other Person of which a majority of its voting power or its voting equity securities or equity interest is owned, directly or indirectly, by the Company (for purposes of this definition, a "Related Entity"), (ii) the Company or any Related Entity, or (iii) any Person in connection with a "Non-Control Transaction" (as hereinafter defined); |
(b) | The individuals who, as of July 10, 2001 are members of the Board (the "Incumbent Board"), cease for any reason to constitute at least half of the members of the Board; or, following a Merger (as hereinafter defined) which results in a Parent Corporation (as hereinafter defined), the board of directors of the ultimate Parent Corporation; provided, however, that if the election, or nomination for election by the Company's common stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of the Plan, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened "Election Contest" (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a "Proxy Contest") including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or |
(c) | The consummation of: |
(i) | A merger, consolidation or reorganization with or into the Company or in which securities of the Company are issued (a “Merger”), unless such Merger is a "Non-Control Transaction." A "Non-Control Transaction" shall mean a Merger where: |
(A) | the stockholders of the Company, immediately before such Merger own directly or indirectly immediately following such Merger at least fifty percent (50%) of the combined voting power of the outstanding voting securities of (x) the corporation resulting from such Merger (the "Surviving Corporation") if fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly by another Person (a "Parent Corporation"), or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; |
(B) | the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such Merger constitute at least half of the members of the board of directors of (x) the Surviving |
(C) | no Person other than (1) the Company, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to such Merger was maintained by the Company or any Related Entity, or (4) any Person who, immediately prior to such merger, consolidation or reorganization had Beneficial Ownership of twenty percent (20%) or more of the then outstanding Voting Securities or shares, has Beneficial Ownership of twenty percent (20%) or more of the combined voting power of the outstanding voting securities or common stock of (x) the Surviving Corporation if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; |
(ii) | A complete liquidation or dissolution of the Company; or |
(iii) | The sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Related Entity or under conditions that would constitute a Non-Control Transaction with the disposition of assets being regarded as a Merger for this purpose or the distribution to the Company's stockholders of the stock of a Related Entity or any other assets). |
(1) | with respect to which the recipient's work has been directly concerned at any time during the two (2) years preceding termination of employment with the Company or one of its subsidiaries or |
(2) | with respect to which during that period of time the recipient, as a consequence of the recipient's job performance and duties, acquired knowledge of trade secrets or other confidential information of the Company or its subsidiaries. |
(a) | An acquisition (other than directly from the Company) of any voting securities of the Company (the "Voting Securities") by any "Person" (as the term person is used for purposes of Section 13(d) or 14(d) of the Exchange Act), immediately after which such Person has "Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of the then outstanding Shares or the combined voting power of the Company's then outstanding Voting Securities; provided, however, in determining whether a Change in Control has occurred pursuant to this Section 4(a), Shares or Voting Securities which are acquired in a "Non-Control Acquisition" (as hereinafter defined) shall not constitute an acquisition which would cause a Change in Control. A "Non-Control Acquisition" shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) the Company or (B) any corporation or other Person of which a majority of its voting power or its voting equity securities or equity interest is owned, directly or indirectly, by the Company (for purposes of this definition, a "Related Entity"), (ii) the Company or any Related Entity, or (iii) any Person in connection with a "Non-Control Transaction" (as hereinafter defined); |
(b) | The individuals who, as of July 11, 2000 are members of the Board (the "Incumbent Board"), cease for any reason to constitute at least half of the members of the Board; or, following a Merger (as hereinafter defined) which results in a Parent Corporation (as hereinafter defined), the board of directors of the ultimate Parent Corporation; provided, however, that if the election, or nomination for election by the Company's common stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened "Election Contest" (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a "Proxy Contest") including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or |
(i) | A merger, consolidation or reorganization with or into the Company or in which securities of the Company are issued (a “Merger”), unless such Merger is a "Non-Control Transaction." A "Non-Control Transaction" shall mean a Merger where: |
(A) | the stockholders of the Company, immediately before such Merger own directly or indirectly immediately following such Merger at least fifty percent (50%) of the combined voting power of the outstanding voting securities of (x) the corporation resulting from such Merger (the "Surviving Corporation") if fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly by another Person (a "Parent Corporation"), or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; |
(B) | the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such Merger constitute at least half of the members of the board of directors of (x) the Surviving Corporation, if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; and |
(C) | no Person other than (1) the Company, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to such Merger was maintained by the Company or any Related Entity, or (4) any Person who, immediately prior to such merger, consolidation or reorganization had Beneficial Ownership of twenty percent (20%) or more of the then outstanding Voting Securities or Shares, has Beneficial Ownership of twenty percent (20%) or more of the combined voting power of the outstanding voting securities or common stock of (x) the Surviving Corporation if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; |
(ii) | A complete liquidation or dissolution of the Company; or |
(iii) | The sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Related Entity or under conditions that would constitute a Non-Control Transaction with the disposition of assets being regarded as a Merger for this purpose or the distribution to the Company's stockholders of the stock of a Related Entity or any other assets). |
First $50 million | 0.250 | % | |
Next $200 million | 0.150 | % | |
Next $250 million | 0.125 | % | |
Over $500 million | 0.100 | % |
First $250 million | 1.750 | % | |
Next $500 million | 0.150 | % | |
Next $250 million | 0.125 | % | |
Over $1000 million | 0.100 | % |
(1) | The Procter & Gamble Company | (2) | Metropolitan Life Insurance Co. | |
Global Pensions | Specialized Benefit Resources | |||
Two Procter & Gamble Plaza | 485B Route One South, Suite 420 | |||
Cincinnati, Ohio 45202-3315 | Iselin, New Jersey 08830 | |||
Attn: [name] | Attn:[name] |
THE PROCTER & GAMBLE COMPANY | METROPOLITAN LIFE INSURANCE COMPANY | |||
By: | /s/ C. S. Clark | By: | /s/ John J. Ryan | |
Group Manager Global Pensions | Vice President | |||
(Title) | (Title) | |||
C.S. Clark | John J. Ryan | |||
(Print or Type Name) | (Print of Type Name) | |||
Dec. 30, 1997 | Dec. 30, 1997 | |||
(Date) | (Date) |
• | not been absent from work due to illness or medical treatment for a period of more than 5 consecutive days in the last 3 months; and |
• | are actively at work, full time performing all duties of regular occupation, at customary place of employment. |
• | For Active Employees, by up to 25% per year (any unused portion will not be cumulative) to reflect compensation increases, promotional increases and corporate cost recovery amounts. |
• | For Retired Employees, by up to 25% per year (any unused portion will not be cumulative) to reflect corporate cost recovery amounts. |
• | For Active and Retired Employees whose compensation is not denominated in U.S. dollar, the Specified Face Amounts may be adjusted to reflect the foreign exchange rate of their home currency. |
/s/ Gwenn L. Carr | /s/ Robert Henrikson | ||
Vice-President and Secretary | President and Chief Executive Officer |
(a) | An acquisition (other than directly from the Company) of any voting securities of the Company (the "Voting Securities") by any "Person" (as the term person is used for purposes of Section 13(d) or 14(d) of the Exchange Act), immediately after which such Person has "Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of the then outstanding Shares or the combined voting power of the Company's then outstanding Voting Securities; provided, however, in determining whether a Change in Control has occurred pursuant to this Section 4(a), Shares or Voting Securities which are acquired in a "Non-Control Acquisition" (as hereinafter defined) shall not constitute an acquisition which would cause a Change in Control. A "Non-Control Acquisition" shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) the Company or (B) any corporation or other Person of which a majority of its voting power or its voting equity securities or equity interest is owned, directly or indirectly, by the Company (for purposes of this definition, a "Related Entity"), (ii) the Company or any Related Entity, or (iii) any Person in connection with a "Non-Control Transaction" (as hereinafter defined); |
(b) | The individuals who, as of July 11, 2000 are members of the Board (the "Incumbent Board"), cease for any reason to constitute at least half of the members of the Board; or, following a Merger (as hereinafter defined) which results in a Parent Corporation (as hereinafter defined), the board of directors of the ultimate Parent Corporation; provided, however, that if the election, or nomination for election by the Company's common stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened "Election Contest" (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a "Proxy Contest") including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or |
(c) | The consummation of: |
(i) | A merger, consolidation or reorganization with or into the Company or in which securities of the Company are issued (a “Merger”), unless such Merger is a "Non-Control Transaction." A "Non-Control Transaction" shall mean a Merger where: |
(A) | the stockholders of the Company, immediately before such Merger own directly or indirectly immediately following such Merger at least fifty percent (50%) of the combined voting power of the outstanding voting securities of (x) the corporation resulting from such Merger (the "Surviving Corporation") if fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly by another Person (a "Parent Corporation"), or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; |
(B) | the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such Merger constitute at least half of the members of the board of directors of (x) the Surviving Corporation, if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; and |
(C) | no Person other than (1) the Company, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to such Merger was maintained by the Company or any Related Entity, or (4) any Person who, immediately prior to such merger, consolidation or reorganization had Beneficial Ownership of twenty percent (20%) or more of the then outstanding Voting Securities or Shares, has Beneficial Ownership of twenty percent (20%) or more of the combined voting power of the outstanding voting securities or common stock of (x) the Surviving Corporation if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; |
(ii) | A complete liquidation or dissolution of the Company; or |
(iii) | The sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Related Entity or under conditions that would constitute a Non-Control Transaction with the disposition of assets being regarded as a Merger for this purpose or the distribution to the Company's stockholders of the stock of a Related Entity or any other assets). |
1. | The Plan shall be administered by the Compensation Committee of the Board of Directors of the Company (the "Board"), or such other committee as may be designated by the Board (the "Committee"). The Committee shall consist of not less than three (3) members of the Board who are “Non-Employee Directors” as defined in Rule 16b-3 under the Securities Exchange Act of 1934 (the “1934 Act”), as amended, or any successor rule or definition adopted by the Securities and Exchange Commission, or such other number of Non-Employee Directors required from time to time by such rule or any successor rule adopted by the Securities and Exchange Commission, to be appointed by the Board from time to time and to serve at the discretion of the Board. The Committee may establish such regulations, provisions, and procedures within the terms of the Plan as, in its opinion, may be advisable for the administration and operation of the Plan, and may designate the Secretary of the Company or other employees of the Company to assist the Committee in the administration and operation of the Plan and may grant authority to such persons to execute documents on behalf of the Committee. The Committee shall report to the Board on the administration of the Plan not less than once each year. |
2. | Subject to the express provisions of the Plan, the Committee shall have authority: (i) to allow Participants the right to elect to receive fees for services as a Director in either cash or an equivalent amount of whole shares of Common Stock or RSUs of the Company, or partly in cash and partly in whole shares of the Common Stock or RSUs of the Company, subject to such conditions or restrictions, if any, as the Committee may determine; (ii) to grant Participants Restricted Shares, subject to such conditions or restrictions, if any, as the Committee may determine; (iii) to grant RSUs, subject to such conditions or restrictions, if any, as the Committee may determine; (iv) to grant Participants Stock Options, subject to such conditions or restrictions, if any, as the Committee may determine; (v) to grant Participants SARs, subject to such conditions or restrictions, if any, as the Committee may determine; (vi) to make all other determinations it deems necessary or advisable for administering the Plan; and (vii) to provide for special terms for any RSUs, Restricted Shares, Stock Options, SARs or other awards granted to Participants who are foreign nationals or who reside outside of the United States of America in order to fairly accommodate for differences in local law, tax policy or custom and to approve such supplements to or amendments, restatements or alternative versions of the Plan as the Committee may consider necessary or appropriate for such purposes (without affecting the terms of the Plan for any purpose); and to make all other determinations it deems necessary or advisable for administering the Plan. |
1. | The maximum aggregate number of shares available for grant under the Plan shall be 1,000,000 shares. |
2. | In addition to the shares authorized for award by Paragraph 1 of this Article, the following shares may be awarded under the Plan: |
(a) | shares that were authorized to be awarded under The Procter & Gamble 1993 Non-Employee Directors' Stock Plan (the “1993 Plan”), but that were not awarded under the 1993 Plan; |
(b) | shares awarded under the Plan or the 1993 Plan that are subsequently forfeited in accordance with the Plan or the 1993 Plan, respectively; or shares tendered by or withheld from a Participant in payment of all or part of the exercise price of a stock option awarded under the Plan or the 1993 Plan. |
1. | The Committee may, from time to time, grant Participants one or more Stock Options to purchase shares of Common Stock, each having an exercise price equal to no less than the closing price for Common Stock on the New York Stock Exchange on the day of the grant. |
2. | The Committee may, from time to time, grant Participants one or more SARs each entitling the Participant to receive, upon exercise, a redemption differential for each such SAR which shall be the difference between the closing price for one share of Common Stock on the New York Stock Exchange on the date of exercise and the exercise price of the SAR then being exercised. The exercise price for each SAR granted under this Plan shall be the closing price for Common Stock on the New York Stock Exchange on the day of the grant. |
3. | Stock Options and SARs shall have a term of not less than ten (10) years from the date of grant, subject to earlier termination as provided herein, and shall be exercisable one hundred percent (100%) not less than one (1) year from the date of grant, except in the case of death of a Participant, in which case such Participant's Stock Options or SARs shall immediately vest and be exercisable in accordance with this Article F. |
4. | In the case of death of a Participant, the persons to whom the Stock Options or SARs have been transferred by will or the laws of descent and distribution shall have the privilege of exercising remaining Stock Options or SARs or parts thereof, whether or not exercisable on the date of death of such Participant, at any time prior to the expiration date of such Stock Options or SARs. |
5. | Stock Options are not transferable other than by will or by the laws of descent and distribution. For the purpose of exercising Stock Options or SARs after the death of the Participant, the duly appointed executors and administrators of the estate of the deceased Participant shall have the same rights with respect to the Stock Options and SARs as legatees or distributees would have after distribution to them from the Participant's estate, subject in all respects to Article J hereof. |
6. | If a Participant ceases to be a Director while holding unexercised Stock Options or SARs, such Stock Options or SARs are then void, except in the case of (i) death, in which case such Stock Options or SARS may be transferred in accordance with this Article F and Article J hereof, (ii) disability, (iii) retirement at the end of a term, (iv) retirement after attaining the age of sixty nine (69), (v) resignation from the Board following a Participant's retirement from a principal employer in good standing under the terms of that employer's retirement plan, or (vi) resignation from the Board for reasons of antitrust laws or the Company's conflict of interest, corporate governance or continued service policies. In cases covered by (ii), (iii), (iv), (v) and (vi) above, the Participant shall be immediately vested in his or her Stock Options or SARs subject to all other terms of such Stock Options or SARs. |
7. | Upon the exercise of a Stock Option, payment in full of the exercise price shall be made by the Participant. The exercise price may be paid for by the Participant either in cash, shares of Common Stock to be valued at their fair market value on the date of exercise, or a combination thereof. |
1. | The Committee may grant Common Stock, Restricted Shares, or RSUs to Participants under the Plan subject to such conditions or restrictions, if any, as the Committee may determine. |
2. | The shares granted under this Article H shall be valued at the closing price for Common Stock on the New York Stock Exchange on the day of the grant to a Participant. All shares granted shall be full shares, rounded up to the nearest whole share. |
1. | The Board may, at any time, repeal the Plan or may amend it except that no such amendment may amend this paragraph, increase the total aggregate number of shares subject to the Plan, alter the persons eligible to receive shares under the Plan. Participants and the Company shall be bound by any such amendments as of their effective dates, but if any outstanding grants are materially affected adversely, notice thereof shall be given to Participants holding such grants and such amendments shall not be applicable without such Participant's written consent. If the Plan is repealed in its entirety, all theretofore granted shares subject to conditions or restrictions granted pursuant to the Plan shall continue to be subject to such conditions or restrictions. Notwithstanding this or any other provision of this Plan, Stock Options and SARs may not be re-priced or re-valued except in accordance with Article G hereof. |
2. | Notwithstanding anything to the contrary in this Plan, Stock Options and SARs granted hereunder shall vest immediately, and any conditions or restrictions on Common Stock, Restricted Stock or RSUs shall lapse, upon a “Change in Control.” A “Change in Control” shall mean the occurrence of any of the following: |
(a) | An acquisition (other than directly from the Company) of any voting securities of the Company (the "Voting Securities") by any "Person" (as the term person is used for purposes of Section 13(d) or 14(d) of the 1934 Act), immediately after which such Person has "Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of twenty percent (20%) or more of the then outstanding shares or the combined voting power of the Company's then outstanding Voting Securities; provided, however, in determining whether a Change in Control has occurred pursuant to this Section 2(a), shares or Voting Securities which are acquired in a "Non-Control Acquisition" (as hereinafter defined) shall not constitute an acquisition which would cause a Change in Control. A "Non-Control Acquisition" shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) the Company or (B) any corporation or other Person of which a majority of its voting power or its voting equity securities or equity interest is owned, directly or indirectly, by the Company (for purposes of this definition, a "Related Entity"), (ii) the Company or any Related Entity, or (iii) any Person in connection with a "Non-Control Transaction" (as hereinafter defined); |
(b) | The individuals who, as of July 10, 2001 are members of the Board (the "Incumbent Board"), cease for any reason to constitute at least half of the members of the Board; or, following a Merger (as hereinafter defined) which results in a Parent Corporation (as hereinafter defined), the board of directors of the ultimate Parent Corporation; provided, however, that if the election, or nomination for election by the Company's common stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of the Plan, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened "Election Contest" (as described in Rule 14a-11 promulgated under the 1934 Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a "Proxy Contest") including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or |
(c) | The consummation of: |
(i) | A merger, consolidation or reorganization with or into the Company or in which securities of the Company are issued (a “Merger”), unless such Merger is a "Non-Control Transaction". A "Non-Control Transaction" shall mean a Merger where: |
(A) | the stockholders of the Company, immediately before such Merger own directly or indirectly immediately following such Merger at least fifty percent (50%) of the combined voting power of the outstanding voting securities of (x) the corporation |
(B) | the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such Merger constitute at least half of the members of the board of directors of (x) the Surviving Corporation, if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; and |
(C) | no Person other than (1) the Company, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to such Merger was maintained by the Company or any Related Entity, or (4) any Person who, immediately prior to such merger, consolidation or reorganization had Beneficial Ownership of twenty percent (20%) or more of the then outstanding Voting Securities or shares, has Beneficial Ownership of twenty percent (20%) or more of the combined voting power of the outstanding voting securities or common stock of (x) the Surviving Corporation if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; |
(ii) | A complete liquidation or dissolution of the Company; or |
(iii) | The sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Related Entity or under conditions that would constitute a Non-Control Transaction with the disposition of assets being regarded as a Merger for this purpose or the distribution to the Company's stockholders of the stock of a Related Entity or any other assets). |
• | The STAR Target for each participant is calculated as: |
• | The Business Unit Performance Factor is weighted at 70% and is based on the fiscal year success for the appropriate STAR business unit. The STAR business units are defined by the Chief Human Resources Officer and may consist of business categories, segments, geographies, functions, organizations or a combination of one or more of these items. The STAR business units will be defined within ninety (90) days of the beginning of the fiscal year, but may be adjusted as necessary to reflect business and/or organizational changes (e.g., reorganization, acquisition, merger, divestiture, etc.). The Business Unit Performance Factors can range from 0% to 200% with a target of 100%. In general, a committee consisting of at least two of the Chairman of the Board, Chief Executive Officer, Chief Financial Officer, Chief Human Resources Officer and/or the Chief Operating Officer (the “STAR Committee”), conducts a comprehensive retrospective assessment of the fiscal year performance of each STAR business unit against previously established goals for one or more of the following measures: Operating Total Shareholder Return, Key Competitor Comparison, After Tax Profit, Operating Cash Flow, Value Share, Volume, Net Outside Sales, Customer spending effectiveness, SRAP cost progress, Transportation and warehouse cost progress, Internal controls, Accounts receivable payscore (collection effectiveness), Organization Head Self-Assessment, and Cross Organization Assessment. The STAR Committee makes a recommendation of an appropriate Business Unit Performance Factor to the C&LD Committee. There may also be other factors significantly affecting STAR business unit results positively or negatively which can be considered by the STAR Committee when making its recommendation. No member of the STAR Committee makes any recommendation or determination as to their own STAR award. As a result, there are certain instances in which a Business Unit Performance Factor recommendation to the C&LD Committee must be made exclusively by the Chief Executive Officer. |
• | The Total Company Performance Factor is weighted at 30% and is based on the total Company’s success during the fiscal year and ranges from 0% to 200%, with a target of 100%. The same Total Company Performance Factor is applied to all STAR award calculations, regardless of STAR business unit. It is determined using a matrix which compares results against pre-established goals for fiscal year organic sales growth and core earnings per share (“EPS”) growth for the fiscal year. |
• | Retirement, Death or Special Separation with a Separation Package: If a participant worked at least 28 days (4 calendar weeks) during the fiscal year, the STAR award is pro-rated by dividing the number of calendar days the participant was an “active employee” during the fiscal year by 365. |
• | Voluntary Resignation or Termination for cause: Separating employees must have been active employees as of June 30 or the last business day in June (the close of the fiscal year for which the award is payable) to receive an award. |
• | Separation due to a Company authorized divestiture: In the case of divestitures the CHRO is authorized to determine the appropriate STAR payout based on Business Unit factors either at Target or at projected or actual business results. The CHRO is also authorized to pay awards for the current or following partial fiscal year at time of divestiture close for administrative convenience. |
(a) | waive the provisions of Section 12.1A(a) hereof; |
(b) | waive the provisions of Section 12.1A(b) hereof; |
(c) | waive the provisions of Section 12.1A(c) hereof; |
(d) | waive the provisions of Section 5.8(a), 5.8(b), and 5.8(c) hereof as well as Sections 6.7(a), 6.7(b), and 6.7(c) hereof; and |
(e) | impose conditions in lieu of those set forth in Articles 5, 6, 7, 8, and 9 for Options, SARs, Restricted Stock, RSUs, Performance Shares, or other Awards which do not increase or extend the rights of the Participant. |
(a) | Subject to adjustment as provided in Section 3.4 hereof, the maximum number of Shares available for issuance to Participants under the Plan (the “Share Authorization”) shall be: |
(i) | Nineteen million (19,000,000), plus |
(ii) | The sum of (1) the authorized Shares not issued or subject to outstanding awards under the Company's Prior Plan as of the Effective Date plus (2) any unissued Shares subject to outstanding awards as of the Effective Date under the Prior Plan that on or after the Effective Date cease for any reason to be subject to such awards (other than by reason of exercise or settlement of the awards to the extent they are exercised for or settled in vested and nonforfeitable Shares). |
(b) | Subject to the foregoing limit on the number of Shares that may be issued in the aggregate under the Plan, the maximum number of Shares that may be issued in the following categories shall be as follows: |
(i) | No more than thirty seven million (37,000,000) Shares may be issued pursuant to Awards in the form of ISOs; and |
(ii) | No more than thirty seven million (37,000,000) Shares may be issued pursuant to Awards in the form of NQSOs; and |
(iii) | No more than one million (1,000,000) Shares may be issued pursuant to Awards made to Nonemployee Directors. |
(a) | Shares related to Awards that terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, are settled in cash in lieu of Shares, or are exchanged with the Committee's permission, prior to the issuance of Shares, for Awards not involving Shares, are not issued Shares and, consistent with Section 3.1 above, shall be available for Awards granted under the Plan. If the Option Price of any Option granted under the Plan or the tax withholding requirements with respect to any Award granted under the Plan are satisfied by tendering Shares to the Company (by either actual delivery or by attestation), or if shares are tendered for any other purpose under any other form of Award, the number of Shares treated as issued under the Plan for purposes of Section 3.1 above shall be determined net of any Shares tendered to the Company. The Shares available for issuance under the Plan may be authorized and unissued Shares or treasury Shares, or shares acquired in the open market as the Committee determines. |
(b) | The Committee shall have the authority to grant Awards as an alternative to or as the form of payment for grants or rights earned or due under other compensation plans or arrangements of the Company. |
(a) | Options: The maximum aggregate number of Shares subject to Options granted in any one Plan Year to any one Participant shall be three million (3,000,000) plus the amount of the Participant's unused applicable Annual Award Limit as of the close of the previous Plan Year. |
(b) | SARs: The maximum number of Shares subject to Stock Appreciation Rights granted in any one Plan Year to any one Participant shall be three million (3,000,000) plus the amount of the Participant's unused applicable Annual Award Limit as of the close of the previous Plan Year. |
(c) | Restricted Stock or Restricted Stock Units: The maximum aggregate grant with respect to Awards of Restricted Stock or Restricted Stock Units granted in any one Plan Year to any one Participant shall be two million (2,000,000) plus the amount of the Participant's unused applicable Annual Award Limit as of the close of the previous Plan Year. |
(d) | Performance Shares: The maximum aggregate grant of Performance Shares in any one Plan Year to any one Participant shall be one and one-half million (1,500,000) Shares plus the amount of the Participant's unused applicable Annual Award Limit as of the close of the previous Plan Year. |
(e) | Cash-Based Awards: The maximum aggregate grant amount with respect to Cash-Based Awards granted in any one Plan Year to any one Participant may not exceed ten million dollars ($10,000,000) plus the amount of the Participant's unused applicable Annual Award Limit as of the close of the previous Plan Year. |
(f) | Other Stock-Based Awards: The maximum aggregate grant with respect to Other Stock-Based Awards granted in any one Plan Year to any one Participant shall be one and one-half million (1,500,000) Shares plus the amount of the Participant's unused applicable Annual Award Limit as of the close of the previous Plan Year. |
(g) | Awards to Nonemployee Directors: The maximum aggregate grant with respect to Awards made in any one Plan Year to any one Nonemployee Director shall be twenty thousand (20,000) Shares plus the amount of the Participant's unused applicable Annual Award Limit as of the close of the previous Plan Year. Notwithstanding any other provision to the contrary in this Plan, there shall be no Awards granted to any Nonemployee Director after May 2005, provided that the Merger closes according to the terms and conditions of the Merger Agreement. |
(a) | Any unexercisable portions thereof are then void, except in the case of: (1) death of the Participant; (2) Retirement or Special Separation that occurs more than six months from the date the Options were granted; or (3) any Option as to which the Committee has waived, at the time of grant, the provisions of this Section 5.8(a) hereof. |
(b) | Any exercisable portions thereof are then void, except in the case of: (1) death of the Participant which for Options granted prior to the Effective Time shall be exercised within the shorter of the term of the original grant or three years from the date of death, and for Options granted after the Effective Time shall be exercised within the term of the original grant; (2) Retirement or Special Separation; (3) a voluntary resignation that is not for Good Reason, but only with respect to Options granted prior to the Effective Time, which must be exercised (if at all) within 30 days after the date of termination of employment; or (4) any Option as to which the Committee has waived, at the time of grant, the provisions of this Section 5.8(b). |
(c) | In the case of a Special Separation which occurs prior to October 2, 2007, any Option must be exercised within the time specified in the original grant or five (5) years from the date of Special Separation, whichever is shorter. For a Special Separation which occurs on or after October 2, 2007, any Option must be exercised within the time specified in the original grant. |
(d) | In the case of the death of a Participant, the persons to whom the Options granted following the Effective Time have been transferred by will or the laws of descent and distribution shall have the privilege of exercising remaining Options or parts thereof, whether or not exercisable on the date of death of such Participant, at any time prior to the expiration date of the Options. Options granted before the Effective Time may be exercised during a period ending on the earlier of the term of the original grant or three years from the date of death. |
(a) | Incentive Stock Options. No ISO granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. Further, all ISOs granted to a Participant under this Article 5 shall be exercisable during his or her lifetime only by such Participant, or, in the event of the legal incompetence of the Participant, by the Participant's duly appointed legal guardian. |
(b) | Nonqualified Stock Options. Except as otherwise provided in a Participant's Award Agreement or otherwise at any time by the Committee, no NQSO granted under this Article 5 may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution; provided that the Board or Committee may permit further transferability, on a general or a specific basis, and may impose conditions and limitations on any permitted transferability. Further, except as otherwise provided in a Participant's Award Agreement or otherwise at any time by the Committee, or unless the Board or Committee decides to permit further transferability, all NQSOs granted to a Participant under this Article 5 shall be exercisable during his or her lifetime only by such Participant or, in the event of the legal incompetence of the Participant, by the Participant's duly appointed legal guardian. With respect to those NQSOs, if any, that are permitted to be transferred to another person, relevant references in the Plan to the Participant, as determined by the Committee, shall be deemed to include the Participant's permitted transferee. |
(a) | Unless otherwise authorized by the shareholders of the Company, neither the Board nor the Committee shall authorize the amendment of any Option to reduce the Option Price. This Paragraph shall not be construed to prohibit the adjustments permitted under Section 3.4 the Plan. |
(b) | No Option shall be cancelled and replaced with awards having a lower Option Price without the prior approval of the shareholders of the Company. This Paragraph is intended to prohibit the repricing of “underwater” Options and shall not be construed to prohibit the adjustments permitted under Section 3.4 the Plan. |
(c) | The Committee may require any Participant to accept any Option by means of electronic signature. |
(d) | No Options granted after the Effective Time shall be exercisable within one (1) year from their date of grant, except in the case of the death of the Participant. |
(a) | The difference between the Fair Market Value of a Share on the date of exercise over the Grant Price; by |
(b) | The number of Shares with respect to which the SAR is exercised. |
(a) | Any unexercisable portions thereof are then void, except in the case of: (1) death of the Participant; (2) Retirement or Special Separation that occurs more than six months from the date the SARs were granted; or (3) any SAR as to which the Committee has waived, at the time of grant, the provisions of this Section 6.7(a). |
(b) | Any exercisable portions thereof are then void, except in the case of: (1) death of the Participant; (2) Retirement or Special Separation; or (3) any SAR as to which the Committee has waived, at the time of grant, the provisions of this Section 6.7(b). |
(c) | In the case of a Special Separation which occurs prior to October 2, 2007, any SAR must be exercised within the time specified in the original grant or five (5) years from the date of Special Separation, whichever is shorter. For a Special Separation which occurs on or after October 2, 2007, any SAR must be exercised within the time specified in the original grant. |
(d) | In the case of the death of a Participant, the persons to whom SARs have been transferred by will or the laws of descent and distribution shall have the privilege of exercising remaining stock appreciation rights or parts thereof, whether or not exercisable on the date of death of such Participant, at any time prior to the expiration date of the SARs. |
(a) | Unless otherwise authorized by the shareholders of the Company, neither the Board nor the Committee shall authorize the amendment of any outstanding SAR to reduce the Grant Price. This Paragraph shall not be construed to prohibit the adjustments permitted under Section 3.4 the Plan. |
(b) | No SAR shall be cancelled and replaced with awards having a lower Grant Price without the prior approval of the shareholders of the Company. This Paragraph is intended to prohibit the repricing of “underwater” SARs and shall not be construed to prohibit the adjustments permitted under Section 3.4 of the Plan. |
(c) | The Committee may require any Participant to accept any SAR by means of electronic signature. |
(d) | No SARs granted after the Effective Time shall be exercisable within one (1) year from their date of grant, except in the case of the death of the Participant. |
(a) | Net earnings or net income (before or after taxes); |
(b) | Net income per share; |
(c) | Net sales growth; |
(d) | Net operating profit; |
(e) | Return measures (including, but not limited to, return on invested capital, assets, equity, or net sales); |
(f) | Cash flow (including, but not limited to, operating cash flow, free cash flow, and cash flow return on capital); |
(g) | Income before or after taxes, interest, depreciation, and/or amortization; |
(h) | Gross or operating margins; |
(i) | Productivity ratios; |
(j) | Share price (including, but not limited to, growth measures and total stockholder return); |
(k) | Expense targets; |
(l) | Margins; |
(m) | Operating efficiency; |
(n) | Working capital targets; and |
(o) | Economic Value Added or EVA®(net operating profit after taxes minus the sum of capital multiplied by the cost of capital). |
(a) | The right to exercise any Award shall be conditional upon certification by the Participant at time of exercise that the Participant intends to remain in the employ of the Company or one of its subsidiaries for at least one (1) year following the date of the exercise of the Award (provided that termination of employment due to Retirement or Special Separation shall not constitute a breach of such certification). |
(b) | In order to better protect the goodwill of the Company and its subsidiaries and to prevent the disclosure of the Company's or its subsidiaries' trade secrets and confidential information and thereby help insure the long-term success of the business, the Participant, without prior written consent of the Company, will not engage in any activity or provide any services, whether as a director, manager, supervisor, employee, adviser, consultant or otherwise, for a period of three (3) years following the date of the Participant's termination of employment with the Company for any reason, in connection with the manufacture, development, advertising, promotion, or sale of any product which is the same as or similar to or competitive with: |
(i) | any business of The Gillette Company or its subsidiaries immediately prior to the Effective Time (including as relates to both existing products as well as products known to the Participant, as a consequence of the Participant's employment with The Gillette Company or its subsidiaries, to be in development); or |
(ii) | any business of The Procter & Gamble Company or its subsidiaries in which the Participant was employed following the Effective Time (including as relates to both existing products as well as products known to the Participant, as a consequence of the Participant's employment with The Procter & Gamble Company or one of its subsidiaries, to be in development), |
(c) | Following the Effective Time, unless otherwise provided pursuant to a termination settlement agreement with the Company or any of its subsidiaries, while the Participant is employed by the Company and for a period of eighteen (18) months after the termination or cessation of such employment for any reason , the Participant shall not directly or indirectly, either alone or in association with others: (i) solicit or encourage any employee or independent contractor of the Company to terminate his or her relationship with the Company; or (ii) recruit, hire or solicit for employment or for engagement as an independent contractor, any person who is or was employed by the Company at any time during the Participant's employment with the Company; provided, that this Paragraph (c) shall not apply to such person whose employment with the Company has been terminated for a period of six months or longer. |
(d) | The Participant agrees not to use or disclose the Company's or its subsidiaries' trade secrets and confidential information known to the Participant until any particular trade secret or confidential information become generally known (through no fault of the Participant), whereupon the restriction on use and disclosure shall cease as to that item. Information regarding products in development, in test marketing or being marketed or promoted in a discrete geographic region, which information the Company or one of its subsidiaries is considering for broader use, shall not be deemed generally known until such broader use is actually commercially implemented. As used in this Section, “generally known” means known throughout the domestic U. S. industry or, in the case of Participants who have job responsibilities outside of the United States, the appropriate foreign country or countries' industry. Without limiting the generality of the foregoing, Participant shall not: |
(i) | Disclose or use at any time any secret or confidential information or knowledge obtained or acquired by the Participant during, after, or by reason of, employment with The Gillette Company or any of its subsidiaries, as provided under applicable law and any and all agreements between the Participant and The Gillette Company or any of its subsidiaries regarding Participant's employment with The Gillette Company or the subsidiary; and |
(ii) | Disclose or use at any time any secret or confidential information or knowledge obtained or acquired by the Participant during, after, or by reason of, employment with The Procter & Gamble Company or any of its subsidiaries, as provided under applicable law and any and all agreements between the Participant and The Procter & Gamble Company or any of its subsidiaries regarding Participant's employment with The Procter & Gamble Company or the subsidiary. |
(e) | Following the Effective Time, to the extent permitted by law, the Participant shall not make, publish or state, or cause to be made, published or stated, any defamatory or disparaging statement, writing or communication pertaining to the character, reputation, business practices, competence or conduct of the Company, its subsidiaries, stockholders, directors, officers, employees, agents, representatives or successors. |
(f) | In accordance with any and all agreements between the Participant and the Company or any of its subsidiaries regarding the Participant's employment, the Participant shall disclose promptly and transfer and assign to the |
(g) | By acceptance of any offered Option, SAR, RSU, grant of Shares, or any other Award granted under the terms of the Plan, the Participant acknowledges that if the Participant were, without authority, to use, disclose, or threaten the use or disclosure of the trade secrets or confidential information of The Gillette Company or its subsidiaries or, following the Effective Time, of The Procter & Gamble Company or its subsidiaries, the Company or one of its subsidiaries would be entitled to injunctive and other appropriate relief to prevent the Participant from doing so. The Participant acknowledges that the harm caused to the Company by the breach or anticipated breach of this Article is by its nature irreparable because, among other things, it is not readily susceptible of proof as to the monetary harm that would ensue. The Participant consents that any interim or final equitable relief entered by a court of competent jurisdiction shall, at the request of the Company or one of its subsidiaries, be entered on consent and enforced by any court having jurisdiction over the Participant, without prejudice to any rights either party may have to appeal from the proceedings which resulted in any grant of such relief. |
(a) | Unless otherwise provided pursuant to a termination settlement agreement with the Company or any of its subsidiaries, while the Participant is employed by the Company and for a period of eighteen (18) months after the termination or cessation of such employment for any reason, the Participant shall not directly or indirectly: |
(i) | As an employee, consultant, independent contractor, officer, director, individual proprietor, investor, partner, stockholder, agent, principal, joint venturer, or in any other capacity whatsoever (other than as the holder of not more than one percent of the combined voting power of the outstanding stock of a publicly held corporation or company), be employed, work, consult, advise, assist, or engage in any activity regarding any business, product, service or other matter which: (A) is substantially similar to or competes with any business, product, service or other matter regarding which the Participant worked for the Company, or any of its subsidiaries, during the three (3) years prior to Participant's termination of employment; or (B) concerns subject matters about which Participant gained proprietary information of the Company, or any of its subsidiaries, during the three (3) year period prior to the Participant's termination of employment; |
(ii) | Either alone or in association with others, solicit, divert or take away, or attempt to divert or to take away, the business or patronage of any of the clients, customers or accounts, or prospective clients, customers or accounts, of the Company which were contacted, solicited or served, directly or indirectly, by Participant while employed by the Company; or |
(iii) | Either alone or in association with others: (A) solicit or encourage any employee or independent contractor of the Company to terminate his or her relationship with the Company; or (B) recruit, hire or solicit for employment or for engagement as an independent contractor, any person who is or was employed by the Company at any time during the Participant's employment with the Company; provided, that this Paragraph (iii) shall not apply to such person whose employment with the Company has been terminated for a period of six months or longer. |
(b) | The Participant shall not disclose or use at any time any secret or confidential information or knowledge obtained or acquired by the Participant during, after, or by reason of, employment with the Company or any of its subsidiaries, as provided under applicable law and any and all agreements between the Participant and the Company or any of its subsidiaries regarding Participant's employment with the Company or the subsidiary. |
(c) | In accordance with any and all agreements between the Participant and the Company or any of its subsidiaries regarding the Participant's employment, the Participant shall disclose promptly and transfer and assign to the Company all improvements and inventions in certain fields made or conceived by the Participant during employment with the Company or the subsidiary and within the prescribed periods thereafter. |
(d) | To the extent permitted by law, the Participant shall not make, publish or state, or cause to be made, published or stated, any defamatory or disparaging statement, writing or communication pertaining to the character, reputation, business practices, competence or conduct of the Company, its subsidiaries, stockholders, directors, officers, employees, agents, representatives or successors. |
(a) | All outstanding Options and SARs held by Participants which are not yet exercisable on the date such Change of Control first occurs shall become immediately exercisable and all the rights and benefits relating to such Options and SARs including, but not limited to, periods during which such Options and SARs may be exercised shall become fixed and not subject to change or revocation by the Company except as otherwise provided under Article 16; |
(b) | In the event that, within two (2) years of a Change of Control, the employment of an employee Participant is terminated by the Company for any reason other than for Cause, or the employee Participant terminates employment for Good Reason, or the service as a Nonemployee Director is terminated, the applicable exercise period for all Options and SARs (including substituted or assumed Awards, if any, in the case of a Change of Control that is also subject to Section 15.1) held by him or her at termination of employment shall be the greater of (i) a period of two (2) years from the date of termination, and (ii) the post-termination exercise period otherwise applicable to the employee Participant pursuant to Section 5.8 or 6.7, as applicable, as prescribed by the Committee or set forth in the employee Participant's Award Agreement; provided, however, that in no event shall any Option or SAR be exercisable beyond ten (10) years from its date of grant; |
(c) | Any Period of Restriction and restrictions imposed on Restricted Stock or Restricted Stock Units shall lapse, and, any Shares subject to Restricted Stock Unit Awards shall be delivered on a basis that gives the holder of the Award a reasonable opportunity, as determined by the Committee, to participate as a stockholder in the Change of Control transaction; |
(d) | The target payout opportunities attainable under all outstanding Awards subject to performance conditions shall be deemed to have been fully earned on the same basis as if targeted performance had been attained for the Performance Period; |
(i) | The vesting of all Awards denominated in Shares shall be accelerated as of the effective date of the Change of Control, and shall be paid out to Participants prior to the effective date of the Change of Control. The Committee has the authority to pay all or any portion of the value of the Shares in cash; and |
(ii) | Awards denominated in cash shall be paid to Participants in cash prior to the effective date of the Change of Control; and |
(e) | Upon a Change of Control, unless otherwise specifically provided in a written agreement entered into between the Participant and the Company, all conditions for payment to which outstanding Cash-Based Awards and Other Stock-Based Awards may be subject will be deemed satisfied, and the Committee shall pay out all such Awards. |
(a) | Determine which Subsidiaries shall be covered by the Plan;\ |
(b) | Determine which Employees and/or Nonemployee Directors outside the United States are eligible to participate in the Plan; |
(c) | Modify the terms and conditions of any Award granted to Employees and/or Nonemployee Directors, outside the United States to comply with applicable foreign laws; |
(d) | Establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable. Any subplans and modifications to Plan terms and procedures established under this Section 19.7 by the Committee shall be attached to this Plan document as appendices; and |
(e) | Take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals. |
(a) | Prior to Effective Time: Except as to matters concerning the issuance of Shares or other matters of corporate governance, which shall be construed under the General Corporation Law of the State of Delaware, the Plan and each Award outstanding under it shall be governed by the laws of the Commonwealth of Massachusetts, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction. Recipients of an Award under the Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Massachusetts, to resolve any and all issues that may arise out of or relate to the Plan or any Award. |
(b) | Upon and following Effective Time: The Plan and each Award outstanding under it shall be governed by and construed in accordance with the laws of the State of Ohio, United States of America, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction. Recipients of an Award under the Plan are deemed to submit to the non-exclusive jurisdiction and venue of the federal or state courts of Ohio, and any other appropriate jurisdiction and venue, to resolve any and all issues that may arise out of or relate to the Plan or any Award. |
(a) | Subject to the terms of the Merger Agreement, on the Effective Time The Procter & Gamble Company shall assume the Plan (as revised herein) and each Gillette Stock Option. To the extent permitted by law but not in derogation of the provisions of this Article 19A, The Procter & Gamble Company shall take such reasonable steps as may be necessary to cause the Gillette Stock Options which qualified under Section 422 of Code as incentive stock options prior to the Effective Time to continue to qualify as incentive stock options of The Procter & Gamble Company after the Effective Time. |
(b) | Not later than five (5) business days after the Effective Time, The Procter & Gamble Company shall file a registration statement on Form S-3 or Form S-8, as the case may be (or any successor or other appropriate forms), with respect to the shares of Parent Common Stock subject to such Gillette Stock Options and shall use commercially reasonable efforts to maintain the effectiveness of such registration statement or registration statements (and maintain the current status of the prospectus or prospectuses contained therein) for so long as such Options remain outstanding or for so long as such registration statement is required with respect to the Plan. The Procter & Gamble Company shall administer the Plan in a manner consistent with the exemptions provided by Rule 16b-3 promulgated under the Exchange Act. |
(a) | The Participant's continued failure to perform substantially his or her duties with the Company or any of its Subsidiaries (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for performance is delivered to Participant by an officer or a senior manager of the Company or the Subsidiary which identifies the manner in which the Board or the elected officer or manager believes that Participant has not performed his or her duties; |
(b) | The Participant's engaging in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company or the subsidiary; or |
(c) | The Participant's conviction of a felony or a plea of nolo contendere by Participant with respect to a felony. |
(a) | The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (A) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this Paragraph (a), the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its subsidiaries or (iv) any acquisition by any corporation pursuant to a transaction that complies with clauses (A), (B) and (C) of Paragraph (c) below; |
(b) | Individuals who, as of December 16, 1999, constitute the Board of Directors (the “Board”) of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date thereof whose election, or nomination for election by the Company's stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; |
(c) | Consummation of a reorganization, merger, consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities that were the beneficial owners of the |
(d) | Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. |
(a) | If describing rights, obligations, conditions, and/or circumstances prior to the Effective Time, the Compensation and Human Resources Committee of the Board of The Gillette Company. |
(b) | If describing rights, obligations, conditions, and/or circumstances at or following the Effective Time, the Compensation & Leadership Development Committee (or its functional successor by another name) of The Procter & Gamble Company. |
(a) | If describing rights, obligations, conditions, and/or circumstances prior to the Effective Time, The Gillette Company, a Delaware corporation; |
(b) | If describing rights, obligations, conditions, and/or circumstances at or following the Effective Time, The Procter & Gamble Company, an Ohio corporation. |
(a) | The assignment to the Participant of any duties materially inconsistent in any respect with the Participant's position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as in effect immediately prior to the Change of Control, or any other action by the Company or its Subsidiaries that results in a diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and that is promptly remedied by the Company and/or the Subsidiary; |
(b) | A decrease in the Participant's compensation, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and that is promptly remedied by the Company and/or the Subsidiary; or |
(c) | The Company's or the Subsidiary's requiring the Participant to be based at any office or location other than (A) the office or where the Participant was based and performed services immediately prior to the Change of Control or (B) any other location less than 35 miles from such office, or the Company's or the Subsidiary's requiring the Participant to travel on business to a substantially greater extent than required immediately prior to the Change of Control. |
• | Intent to Remain with Company for 1 Year (Article F, Paragraph 1(a)) |
• | Non-Compete (Article F, Paragraph 1(b)) |
• | 6 Month Rule ((Article G, Paragraph 9(a)(2) of the 2009 Plan) and (Article G, Paragraph 4(a)(2) of the 2001 Plan), beginning with the word “that” and ending with the word “granted”) |
• | 5 Year Term for Special Separation (Article G Paragraph 4(c) of the 2001 Plan) |
Acquiring Company | a company which obtains Control of the Company in the circumstances referred to in rule 25; |
Approval Date | the date on which the Sub-Plan is approved by the Inland Revenue under Schedule 9 to ICTA 1988; |
Associated Company | the meaning given to that expression by section 187(2) of ICTA 1988; |
Close Company | the meaning given to that expression by section 414 of, and paragraph 8 of Schedule 9 to, ICTA 1988; |
Committee | the compensation committee of the Board of Directors of the Company or such other committee as may be designated by the Board of Directors of the Company to administer the Plan; |
Consortium | the meaning given to that word by section 187(7) of ICTA 1988; |
Control | the meaning given to that word by section 840 of ICTA 1988 and “Controlled” shall be construed accordingly; |
Date of Grant | the date on which an Option is granted to an Eligible Employee in accordance with the Articles of the Plan; |
Eligible Employee | an individual who falls within Article C of the Plan and who is: an employee (other than a director) of the Company or a company participating in the Sub-Plan; or a director of the Company or a company participating in the Sub-Plan who is contracted to work at least 25 hours per week for the Company and its subsidiaries or any of them (exclusive of meal breaks) and who, in either case, is not a non-executive director of a company participating in the Sub-Plan and does not have at the Date of Grant of an Option, and has not had during the preceding twelve months, a Material Interest in a Close Company which is the Company or a company which has Control of the Company or a member of a Consortium which owns the Company; |
ICTA 1988 | the Income and Corporation Taxes Act 1988; |
Inland Revenue | the UK Board of Inland Revenue; |
Market Value | notwithstanding Article F, Paragraph 7 of the Plan, (a) in the case of an Option granted under the Sub Plan: (i)if at the relevant time the Shares are listed on the New York Stock Exchange the closing price of a Share on the Date of Grant (as quoted in the Wall Street Journal) or, if there were no trades on that day, on the dealing day immediately preceding the Date of Grant; (ii) if paragraph (i) above does not apply, the market value of a Share as determined in accordance with Part VIII of the Taxation of Chargeable Gains Act 1992 and agreed in advance with Inland Revenue Shares Valuation on the Date of Grant or such earlier date or dates (not being more than thirty days before the Date of Grant) as may be agreed with the Board of Inland Revenue; (b) in the case of an option granted under any other share option scheme, the market value of a Share determined under the rules of such scheme for the purpose of the grant of the option; |
Material Interest | the meaning given to that expression by section 187(3) of ICTA 1988; |
New Option | an option granted by way of exchange under rule 25.1; |
New Shares | the shares subject to a New Option referred to in rule 25.1; |
Option | a right to acquire Shares granted under the Sub-Plan; |
Option Holder | an individual who holds an Option or, where the context permits, his legal personal representatives; |
Ordinary Share Capital | the meaning given to that expression by section 832(1) of ICTA 1988; and |
Shares | common stock of the Company as defined in Article A of the Plan. |
• | words and expressions not defined above have the same meanings as are given to them in the Plan; |
• | a reference to a rule is a reference to a rule in this schedule; |
• | the singular includes the plural and vice-versa and the masculine includes the feminine; and |
• | a reference to a statutory provision is a reference to a United Kingdom statutory provision and includes any statutory modification, amendment or re-enactment thereof. |
• | that it is issued in respect of an Option; |
• | the date of grant of the Option; |
• | the number of Shares subject to the Option; |
• | the exercise price under the Option; |
• | any performance target or other condition imposed on the exercise of the Option; |
• | the date(s) on which the Option will ordinarily become exercisable; |
• | whether the Committee has waived any, and if so which, of the provisions of Article G, Paragraph 4(a), 4(b) and 4(c) of the Plan in relation to the Option; and |
• | any conditions imposed by the Committee in lieu of those set out in Article G, Paragraphs 4, 5 and 6 of the Plan in relation to the Option. Any such conditions will not take effect in relation to the Option until they have been approved by the Inland Revenue. |
• | incentive stock options qualifying under section 422 of the US Internal Revenue Code of 1986, as amended; |
• | stock appreciation rights; |
• | unrestricted or restricted stock awards; and |
• | performance awards which are not stock options shall not form part of, and no such rights may be granted under, the Sub-Plan. |
Acquiring Company | a company which obtains Control of the Company in the circumstances referred to in rule 28; |
Approval Date | the date on which the Sub-Plan is approved by HM Revenue & Customs under Schedule 4; |
Associated Company | the meaning given to that expression by paragraph 35(1) of Schedule 4; |
Close Company | the meaning given to that expression by section 989 of ITA 2007, and paragraph 9(4) of Schedule 4; |
Committee | the Compensation & Leadership Development Committee of the Board or such other committee as may be designated by the Board to administer the Plan; |
Consortium | the meaning given to that word by paragraph 36(2) of Schedule 4; |
Constituent Company | means the Company or a company which is: a Subsidiary or a Jointly Owned Company where neither it nor any company Controlled by it is a constituent company under the provisions of paragraph 34(4) in any other CSOP scheme as that term is defined in paragraph 2 of Schedule 4; |
Control | the meaning given to that word by section 719 of ITEPA 2003 and “Controlled” shall be construed accordingly; |
Date of Grant | the date on which an Option is granted to an Eligible Employee in accordance with the Articles of the Plan; |
Eligible Employee | an individual who falls within the provisions of Article C of the Plan and who is: an employee (other than a director) of a Constituent Company; or a director of a Constituent Company who is contracted to work at least 25 hours per week for the Company and its subsidiaries or any of them (exclusive of meal breaks) and who, in either case,: is not eligible solely by reason that he is a non-executive director of a Constituent Company; has earnings in respect of his office or employment which are (or would be if there were any) general earnings to which section 15, 22 or 26 of ITEPA 2003 applies; and does not have at the Date of Grant of an Option, and has not had during the preceding twelve months, a Material Interest in a Close Company which is the Company or a company which has Control of the Company or a member of a Consortium which owns the Company; |
ITA 2007 | means the Income Tax Act 2007; |
ITEPA 2003 | means the Income Tax (Earnings and Pensions) Act 2003; |
Key Feature | means a provision of the Plan or Sub-Plan which is necessary in order to meet the requirements of Schedule 4; |
Market Value | notwithstanding Article G, Paragraph 3 of the Plan, (a) in the case of an Option granted under the Sub Plan: (i) if at the relevant time the Shares are listed on the New York Stock Exchange the average of the highest and lowest sale prices of a Share on the Date of Grant (as quoted in the Wall Street Journal) or, if there were no trades on that day, on the dealing day immediately preceding the Date of Grant; (ii) if paragraph (i) above does not apply, the market value of a Share as determined in accordance with Part VIII of the Taxation of Chargeable Gains Act 1992 and agreed in advance with HM Revenue & Customs Shares Valuation on the Date of Grant or such earlier date or dates (not being more than thirty days before the Date of Grant) as may be agreed with HM Revenue & Customs; (b) in the case of an option granted under any other share option scheme, the market value of a Share shall be determined under the rules of such scheme for the purpose of the grant of the option; |
Material Interest | the meaning given to that expression by paragraphs 9 to 14 of Schedule 4; |
New Option | an option granted by way of exchange under rule 28.1; |
New Shares | the shares subject to a New Option as set out in rule 28; |
Option | a right to acquire Shares granted under the Sub-Plan; |
Option Holder | an individual who holds an Option or, where the context permits, his legal personal representatives; |
Schedule 4 | means Schedule 4 to ITEPA 2003; |
Shares | common stock of the Company as defined in Article A of the Plan; and |
Subsidiary | means a company which is a subsidiary of the Company within the meaning of section 1159 of the Companies Act 2006 over which the Company has Control. |
• | words and expressions not defined above have the same meanings as are given to them in the Plan; |
• | the contents and rule headings are inserted for ease of reference only and do not affect their interpretation; |
• | a reference to a rule is a reference to a rule in this Sub-Plan; |
• | the singular includes the plural and vice-versa and the masculine includes the feminine; and |
• | a reference to a statutory provision is a reference to a United Kingdom statutory provision and includes any statutory modification, amendment or re-enactment thereof. |
• | that it is issued in respect of an Option; |
• | the date of grant of the Option; |
• | the number of Shares subject to the Option [or how that number may be calculated]; |
• | the exercise price under the Option [or the method by which the exercise price will be determined]; |
• | any performance target or other condition imposed on the exercise of the Option; |
• | the date(s) on which the Option will ordinarily become exercisable; |
• | whether the Committee has waived any, and if so which, of the provisions of Article G, Paragraph 9a) and 9(b) of the Plan in relation to the Option; and |
• | any conditions imposed by the Committee under Article B in lieu of those set out in Article G, Paragraphs 7, 8, 9 and 11 of the Plan in relation to the Option. Any such conditions will not take effect in relation to the Option until they have been approved by HM Revenue & Customs. |
• | incentive stock options qualifying under section 422 of the US Internal Revenue Code of 1986, as amended; |
• | stock appreciation rights; |
• | unrestricted or restricted stock awards; |
• | performance awards which are not stock options; |
• | the cash cancellation of share options including those contained with Article L paragraph 4(b)(ii); and |
• | the granting of share options in tandem with stock appreciation rights and the subsequent cancellation of share options |
Years ended June 30 | |||||||||||||||||||
Amounts in millions | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||
EARNINGS, AS DEFINED | |||||||||||||||||||
Earnings from operations before income taxes after eliminating undistributed earnings of equity method investees | $ | 13,285 | $ | 13,233 | $ | 13,356 | $ | 11,009 | $ | 13,492 | |||||||||
Fixed charges (excluding capitalized interest) | 676 | 640 | 778 | 842 | 928 | ||||||||||||||
TOTAL EARNINGS, AS DEFINED | $ | 13,961 | $ | 13,873 | $ | 14,134 | $ | 11,851 | $ | 14,420 | |||||||||
FIXED CHARGES, AS DEFINED | |||||||||||||||||||
Interest expense (including capitalized interest) | $ | 560 | $ | 521 | $ | 634 | $ | 693 | $ | 789 | |||||||||
1/3 of rental expense | 111 | 118 | 144 | 166 | 174 | ||||||||||||||
TOTAL FIXED CHARGES, AS DEFINED | $ | 671 | $ | 639 | $ | 778 | $ | 859 | $ | 963 | |||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 20.8x | 21.7x | 18.2x | 13.8x | 15.0x |
Agile Pursuits Franchising, Inc. | Ohio |
Agile Pursuits, Inc. | Ohio |
Arbora & Ausonia, S.L.U. | Spain |
Arbora, S.A. | Spain |
Arborinvest, S.A.U. | Spain |
Braun (Shanghai) Co., Ltd. | China |
Braun GmbH | Germany |
Celtic Insurance Company, Inc. | Vermont |
Compania Procter & Gamble Mexico, S. de R.L. de C.V. | Mexico |
Corporativo Procter & Gamble, S. de R.L. de C.V. | Mexico |
Cosmetic Products Pty. Ltd. | Australia |
Detergent Products B.V. | Netherlands |
Detergent Products SARL | Switzerland |
Detergenti S.A. | Romania |
Eurocos Cosmetic GmbH | Germany |
Fameccanica Data S.p.A. | Italy |
Fameccanica Indùstria e Comèrcio Do Brasil LTDA. | Brazil |
Fameccanica Machinery (Shanghai) Co., Ltd. | China |
Fameccanica North America, Inc. | Delaware |
Fater Central Europe SRL | Romania |
Fater Morocco SARLAU | Morocco |
Fater Portugal Unipessoal Lda | Portugal |
Fater S.p.A. | Italy |
Fater Temizlik Urunleri Ltd STI | Turkey |
Fountain Square Music Publishing Co., Inc. | Ohio |
FPG Oleochemicals Sdn. Bhd. | Malaysia |
Gillette (China) Ltd. | China |
Gillette (Shanghai) Ltd. | China |
Gillette Aesop Ltd. | U.K. |
Gillette Australia Pty. Ltd. | Australia |
Gillette Commercial Operations North America | Massachusetts |
Gillette del Uruguay, S.A. | Uruguay |
Gillette Diversified Operations Pvt. Ltd. | India |
Gillette Egypt S.A.E. | Egypt |
Gillette Group UK Ltd | U.K. |
Gillette Gruppe Deutschland GmbH & Co. oHG | Germany |
Gillette Holding Company LLC | Delaware |
Gillette Holding GmbH | Germany |
Gillette India Limited | India |
Gillette Industries Ltd. | U.K. |
Gillette International B.V. | Netherlands |
Gillette Latin America Holding B.V. | Netherlands |
Gillette Management LLC | Delaware |
Gillette Pakistan Limited | Pakistan |
Gillette Poland International Sp. z.o.o. | Poland |
Gillette Poland S.A. | Poland |
Gillette U.K. Limited | U.K. |
Giorgio Beverly Hills, Inc. | Delaware |
Hyginett KFT | Hungary |
iMFLUX Inc. | Delaware |
Industries Marocaines Modernes SA | Morocco |
Laboratorios Vicks, S.L.U. | Spain |
Liberty Street Music Publishing Company, Inc. | Ohio |
Limited Liability Company 'Procter & Gamble Trading Ukraine' | Ukraine |
LLC "Procter & Gamble Novomoskovsk" | Russia |
LLC "Procter & Gamble Distributorskaya Compania" | Russia |
LLC “Procter & Gamble Ukraine” | Ukraine |
Modern Industries Company - Dammam | Saudi Arabia |
Modern Products Company – Jeddah | Saudi Arabia |
New Chapter Canada Inc. | Canada |
New Chapter, Inc. | Delaware |
Olay LLC | Puerto Rico |
Oral-B Laboratories | Delaware |
P&G Distribution East Africa Limited | Kenya |
P&G Distribution Morocco SAS | Morocco |
P&G Hair Care Holding, Inc. | Delaware |
P&G Industrial Peru S.R.L. | Peru |
P&G Innovation Godo Kaisha | Japan |
P&G Israel M.D.O. Ltd. | Israel |
P&G K.K. | Japan |
P&G Northeast Asia Pte. Ltd. | Singapore |
P&G Prestige Godo Kaisha | Japan |
P&G South African Trading (Pty.) Ltd. | South Africa |
PGT Health Care (Zhejiang) Limited | China |
PGT Healthcare LLP | Delaware |
Phase II Holdings Corporation | Philippines |
Principle Forsaking AB | Sweden |
PPI ZAO | Russia |
Procter & Gamble (Chengdu) Ltd. | China |
Procter & Gamble (China) Ltd. | China |
Procter & Gamble (China) Sales Co., Ltd. | China |
Procter & Gamble (Egypt) Manufacturing Company | Egypt |
Procter & Gamble (Enterprise Fund) Limited | U.K. |
Procter & Gamble (Guangzhou) Consumer Products Co., Ltd. | China |
Procter & Gamble (Guangzhou) Enterprise Management Service Company Limited | China |
Procter & Gamble (Guangzhou) Ltd. | China |
Procter & Gamble (Guangzhou) Technology Innovation Co., LTD. | China |
Procter & Gamble (Health & Beauty Care) Limited | U.K. |
Procter & Gamble (Jiangsu) Ltd. | China |
Procter & Gamble (L&CP) Limited | U.K. |
Procter & Gamble (Malaysia) Sdn Bhd | Malaysia |
Procter & Gamble (Manufacturing) Ireland Limited | Ireland |
Procter & Gamble (Shanghai) International Trade Company Ltd. | China |
Procter & Gamble (Singapore) Pte. Ltd. | Singapore |
Procter & Gamble Administration GmbH | Germany |
Procter & Gamble Algeria EURL | Algeria |
Procter & Gamble Amazon Holding B.V. | Netherlands |
Procter & Gamble Amiens S.A.S. | France |
Procter & Gamble Argentina SRL | Argentina |
Procter & Gamble Australia Proprietary Limited | Australia |
Procter & Gamble Azerbaijan Services LLC | Azerbaijan |
Procter & Gamble Bangladesh Private Ltd. | Bangladesh |
Procter & Gamble Blois S.A.S. | France |
Procter & Gamble Brazil Holdings B.V. | Netherlands |
Procter & Gamble Bulgaria EOOD | Bulgaria |
Procter & Gamble Business Services Canada Company | Canada |
Procter & Gamble Canada Holding B.V. | Netherlands |
Procter & Gamble Chile Limitada | Chile |
Procter & Gamble Chile, Inc. | Ohio |
Procter & Gamble Colombia Ltda. | Colombia |
Procter & Gamble Commercial de Cuba, S.A. | Cuba |
Procter & Gamble Commercial LLC | Puerto Rico |
Procter & Gamble Czech Republic s.r.o. | Czech Republic |
Procter & Gamble d.o.o. za trgovinu | Croatia |
Procter & Gamble Danmark ApS | Denmark |
Procter & Gamble de Venezuela, S.C.A. | Venezuela |
Procter & Gamble de Venezuela, S.R.L. | Venezuela |
Procter & Gamble Detergent (Beijing) Ltd. | China |
Procter & Gamble Deuttschland GmbH | Germany |
Procter & Gamble Distributing (Philippines) Inc. | Philippines |
Procter & Gamble Distributing New Zealand Limited | New Zealand |
Procter & Gamble Distribution Company (Europe) BVBA | Belgium |
Procter & Gamble Distribution S.R.L. | Romania |
Procter & Gamble do Brasil S/A | Brazil |
Procter & Gamble do Brazil, LLC | Delaware |
Procter & Gamble do Nordeste S/A | Brazil |
Procter & Gamble DS Polska Sp. z o.o. | Poland |
Procter & Gamble Eastern Europe, LLC | Ohio |
Procter & Gamble Ecuador Cia. Ltda. | Ecuador |
Procter & Gamble Egypt | Egypt |
Procter & Gamble Egypt Distribution | Egypt |
Procter & Gamble Egypt Holding | Egypt |
Procter & Gamble Egypt Supplies | Egypt |
Procter & Gamble Energy Company LLC | Ohio |
Procter & Gamble España, S.A. | Spain |
Procter & Gamble Europe SA | Switzerland |
Procter & Gamble Exportadora e Importadora Ltda. | Brazil |
Procter & Gamble Fabricação e Comercio Ltda. | Brazil |
Procter & Gamble Far East, Inc. | Ohio |
Procter & Gamble Finance (U.K.) Ltd. | U.K. |
Procter & Gamble Finance Holding Ltd. | U.K. |
Procter & Gamble Finance Management S.a.r.l. | Luxembourg |
Procter & Gamble Financial Investments LLP | U.K. |
Procter & Gamble Financial Services Ltd. | U.K. |
Procter & Gamble Financial Services S.a.r.l. | Luxembourg |
Procter & Gamble Finland OY | Finland |
Procter & Gamble France S.A.S. | France |
Procter & Gamble Germany GmbH | Germany |
Procter & Gamble Germany GmbH & Co. Operations oHG | Germany |
Procter & Gamble Ghana Trading Limited | Ghana |
Procter & Gamble GmbH | Germany |
Procter & Gamble Grundstucks-und Vermogensverwaltungs GmbH & Co. KG | Germany |
Procter & Gamble Gulf FZE | United Arab Emirates |
Procter & Gamble Hair Care, LLC | Delaware |
Procter & Gamble Hellas Ltd. | Greece |
Procter & Gamble Holding (Thailand) Limited | Thailand |
Procter & Gamble Holding France S.A.S. | France |
Procter & Gamble Holding GmbH | Germany |
Procter & Gamble Holding S.r.l. | Italy |
Procter & Gamble Holdings (UK) Ltd. | U.K. |
Procter & Gamble Home Products Private Limited | India |
Procter & Gamble Hong Kong Limited | Hong Kong |
Procter & Gamble Hungary Wholesale Trading Partnership (KKT) | Hungary |
Procter & Gamble Hygiene & Health Care Limited | India |
Procter & Gamble Inc. | Canada |
Procter & Gamble India Holdings, Inc. | Ohio |
Procter & Gamble Indochina Limited Company | Vietnam |
Procter & Gamble Industrial - 2012 C.A. | Venezuela |
Procter & Gamble Industrial Colombia Ltda. | Colombia |
Procter & Gamble Industrial e Comercial Ltda. | Brazil |
Procter & Gamble Industrial S.C.A. | Venezuela |
Procter & Gamble Interamericas de Costa Rica, Limitada | Costa Rica |
Procter & Gamble Interamericas de Guatemala, Limitada | Guatemala |
Procter & Gamble Interamericas de Panama, S. de R.L. | Panama |
Procter & Gamble International Operations Pte. Ltd. | Singapore |
Procter & Gamble International Operations SA | Switzerland |
Procter & Gamble International S.a.r.l. | Luxembourg |
Procter & Gamble Investment Company (UK) Ltd. | U.K. |
Procter & Gamble Investment Holding B.V. | Netherlands |
Procter & Gamble Italia, S.p.A. | Italy |
Procter & Gamble Japan K.K. | Japan |
Procter & Gamble Kazakhstan Distribution LLP | Kazakhstan |
Procter & Gamble Kazakhstan LLP | Kazakhstan |
Procter & Gamble Korea S&D Co. | Korea |
Procter & Gamble Korea, Inc. | Korea |
Procter & Gamble Lanka Private Ltd. | Sri Lanka |
Procter & Gamble Leasing LLC | Ohio |
Procter & Gamble Levant S.A.L. | Lebanon |
Procter & Gamble Limited | U.K. |
"Procter & Gamble" LLC | Russia |
"Procter & Gamble Services" LLC | Russia |
Procter & Gamble Manufacturing (Thailand) Limited | Thailand |
Procter & Gamble Manufacturing (Tianjin) Co. Ltd. | China |
Procter & Gamble Manufacturing Belgium N.V. | Belgium |
Procter & Gamble Manufacturing Berlin GmbH | Germany |
Procter & Gamble Manufacturing GmbH | Germany |
Procter & Gamble Manufacturing Mexico S. de R.L. de C.V. | Mexico |
Procter & Gamble Manufacturing SA (Pty) Ltd | South Africa |
Procter & Gamble Marketing and Services doo | Serbia and Montenegro |
Procter & Gamble Marketing Romania SRL | Romania |
Procter & Gamble Maroc SA | Morocco |
Procter & Gamble Mataro, S.L.U. | Spain |
Procter & Gamble Mexico Holding B.V. | Netherlands |
Procter & Gamble Mexico Inc. | Delaware |
Procter & Gamble Middle East FZE | United Arab Emirates |
Procter & Gamble Nederland B.V. | Netherlands |
Procter & Gamble Netherlands Investments B.V. | Netherlands |
Procter & Gamble Netherlands Services B.V. | Netherlands |
Procter & Gamble Nigeria Limited | Nigeria |
Procter & Gamble Nordic, LLC | Ohio |
Procter & Gamble Norge AS | Norway |
Procter & Gamble Operations Polska Sp. z o.o. | Poland |
Procter & Gamble Overseas India B.V. | Netherlands |
Procter & Gamble Overseas Ltd. | U.K. |
Procter & Gamble Pakistan (Private) Limited | Pakistan |
Procter & Gamble Partnership LLP | U.K. |
Procter & Gamble Peru S.R.L. | Peru |
Procter & Gamble Pharmaceuticals France SAS | France |
Procter & Gamble Philippines, Inc. | Philippines |
Procter & Gamble Polska Sp. z o.o | Poland |
Procter & Gamble Portugal - Produtos De Consumo, Higiene e Saúde S.A. | Portugal |
Procter & Gamble Product Supply (U.K.) Limited | U.K. |
Procter & Gamble Production GmbH | Germany |
Procter & Gamble Productions, Inc. | Ohio |
Procter & Gamble Productos de Consumo, S.L.U. | Spain |
Procter & Gamble Retail Services BVBA | Belguim |
Procter & Gamble Retail Services SARL | Switzerland |
Procter & Gamble RHD, Inc. | Ohio |
Procter & Gamble RSC Regional Service Company Ltd. | Hungary |
Procter & Gamble S.r.l. | Italy |
Procter & Gamble SA (Pty) Ltd | South Africa |
Procter & Gamble Satis ve Dagitim Ltd. Sti. | Turkey |
Procter & Gamble Service GmbH | Germany |
Procter & Gamble Services (Switzerland) SA | Switzerland |
Procter & Gamble Services Company N.V. | Belgium |
Procter & Gamble South America Holding B.V. | Netherlands |
Procter & Gamble Sverige AB | Sweden |
Procter & Gamble Switzerland SARL | Switzerland |
Procter & Gamble Taiwan Limited | Taiwan |
Procter & Gamble Taiwan Sales Company Limited | Taiwan |
Procter & Gamble Technical Centres Limited | U.K. |
Procter & Gamble Technology (Beijing) Co., Ltd. | China |
Procter & Gamble Trading (Thailand) Limited | Thailand |
Procter & Gamble Tuketim Mallari Sanayii A.S. | Turkey |
Procter & Gamble UK | U.K. |
Procter & Gamble UK Group Holdings Ltd | U.K. |
Procter & Gamble UK Parent Company Ltd. | U.K. |
Procter & Gamble Universal Holding B.V. | Netherlands |
Procter & Gamble Verwaltungs GmbH | Germany |
Procter & Gamble Vietnam, Ltd. | Vietnam |
Procter & Gamble, Spol. s.r.o. (Ltd.) | Slovak Republic |
Procter & Gamble-Rakona s.r.o. | Czech Republic |
Progam Realty & Development Corporation | Philippines |
PT Procter & Gamble Home Products Indonesia | Indonesia |
PT Procter & Gamble Operations Indonesia | Indonesia |
Redmond Products, Inc. | Minnesota |
Richardson-Vicks Real Estate Inc. | Ohio |
Riverfront Music Publishing Co., Inc. | Ohio |
Rosemount LLC | Delaware |
Series Acquisition B.V. | Netherlands |
Shulton, Inc. | New Jersey |
Snowberry IP Limited | New Zealand |
Snowberry New Zealand Limited | New Zealand |
SPD Development Company Limited | U.K. |
SPD Swiss Precision Diagnostics GmbH | Switzerland |
Sunflower Distributing LLC | Delaware |
Surfac S.R.L. | Peru |
Sycamore Productions, Inc. | Ohio |
Tambrands Inc. | Delaware |
TAOS - FL, LLC | Florida |
TAOS Retail, LLC | Delaware |
Temple Trees Impex & Investment Private Limited | India |
The Art of Shaving - FL, LLC | Florida |
The Dover Wipes Company | Ohio |
The Gillette Company LLC | Delaware |
The Procter & Gamble Distributing LLC | Delaware |
The Procter & Gamble GBS Company | Ohio |
The Procter & Gamble Global Finance Company, LLC | Ohio |
The Procter & Gamble Manufacturing Company | Ohio |
The Procter & Gamble Paper Products Company | Ohio |
The Procter & Gamble U.S. Business Services Company | Ohio |
US CD LLC | Delaware |
Vidal Sassoon (Shanghai) Academy | China |
Vidal Sassoon Co. | Ohio |
WEBA Betriebsrenten-Verwaltungsgesellschaft mbH | Germany |
Zenlen, Inc. | Delaware |
1. | Post-Effective Amendment No. 1 to Registration Statement No. 33-49289 on Form S-8 for The Procter & Gamble 1992 Stock Plan; |
2. | Registration Statement No. 33-47656 on Form S-8 for The Procter & Gamble International Stock Ownership Plan; |
3. | Registration Statement No. 33-50273 on Form S-8 for The Procter & Gamble Commercial Company Employees’ Savings Plan; |
4. | Registration Statement No. 33-51469 on Form S-8 for The Procter & Gamble 1993 Non-Employee Directors’ Stock Plan; |
5. | Registration Statement No. 333-14381 on Form S-8 for Profit Sharing Retirement Plan of The Procter & Gamble Commercial Company; |
6. | Registration Statement No. 333-21783 on Form S-8 for The Procter & Gamble 1992 Stock Plan (Belgian Version); |
7. | Registration Statement No. 333-37905 on Form S-8 for The Procter & Gamble Future Shares Plan; |
8. | Registration Statement No. 333-51213 on Form S-8 for Group Profit Sharing, Incentive and Employer Contribution Plan (France); |
9. | Registration Statement No. 333-51219 on Form S-8 for Procter & Gamble Ireland Employees Share Ownership Plan; |
10. | Registration Statement No. 333-51221 on Form S-8 for Employee Stock Purchase Plan (Japan); |
11. | Registration Statement No. 333-34606 on Form S-8 for The Procter & Gamble Future Shares Plan; |
12. | Registration Statement No. 333-44034 on Form S-8 for Procter & Gamble International Stock Ownership Plan; |
13. | Registration Statement No. 333-47132 on Form S-8 for Employee Stock Purchase Plan (Japan); |
14. | Registration Statement No. 333-75030 on Form S-8 for The Procter & Gamble 2001 Stock and Incentive Compensation Plan; |
15. | Registration Statement No. 333-100561 on Form S-8 for The Procter & Gamble (U.K.) 1-4-1 Plan; |
16. | Registration Statement No. 333-108991 on Form S-8 for The Procter & Gamble 1992 Stock Plan (Belgian Version); |
17. | Registration Statement No. 333-108993 on Form S-8 for Employee Stock Purchase Plan (Japan); |
18. | Registration Statement No. 333-108994 on Form S-8 for Procter & Gamble Ireland Employees Share Plan; |
19. | Registration Statement No. 333-108995 on Form S-8 for Group Profit Sharing, Incentive and Employer Contribution Plan (France); |
20. | Registration Statement No. 333-108997 on Form S-8 for Procter & Gamble International Stock Ownership Plan; |
21. | Registration Statement No. 333-108998 on Form S-8 for The Procter & Gamble 1993 Non-Employee Directors’ Stock Plan; |
22. | Registration Statement No. 333-108999 on Form S-8 for The Procter & Gamble 1992 Stock Plan; |
23. | Registration Statement No. 333-111304 on Form S-8 for The Procter & Gamble 2003 Non-Employee Directors’ Stock Plan; |
24. | Amendment No. 1 to Registration Statement No. 333-113515 on Form S-3 for The Procter & Gamble Company Debt Securities and Warrants; |
25. | Amendment No. 3 to Registration Statement No. 333-123309 on Form S-4 for The Procter & Gamble Company; |
26. | Registration Statement No. 333-128859 on Form S-8 for certain employee benefit plans of The Gillette Company (2004 Long-Term Incentive Plan of The Gillette Company; 1971 Stock Option Plan of The Gillette Company; James M. Kilts Non-Statutory Stock Option Plan; The Gillette Company |
27. | Registration Statement No. 333-143801 on Form S-8 for The Procter & Gamble Savings Plan; |
28. | Registration Statement No. 333-155046 on Form S-8 for Employee Stock Purchase Plan (Japan); |
29. | Registration Statement No. 333-161725 on Form S-8 for The Procter & Gamble Savings Plan; |
30. | Registration Statement No. 333-164612 on Form S-8 for The Procter & Gamble 2009 Stock and Incentive Compensation Plan; |
31. | Registration Statement No. 333-192841 on Form S-8 for The Procter & Gamble 1992 Stock Plan (Belgian Version); |
32. | Registration Statement No. 333-199592 on Form S-8 for The Procter & Gamble 2014 Stock and Incentive Compensation Plan; |
33. | Registration Statement No. 333-208407 on Form S-8 for The Profit Sharing Retirement Plan of The Procter & Gamble Commercial Company; |
34. | Registration Statement No. 333-208408 on Form S-8 for Procter & Gamble Ireland Employees Share Plan; |
35. | Registration Statement No. 333-208409 on Form S-8 for Procter & Gamble International Stock Ownership Plan; |
36. | Registration Statement No. 333-208410 on Form S-8 for The Procter & Gamble (U.K.) 1-4-1 Plan; |
37. | Registration Statement No. 333-208411 on Form S-8 for The Procter & Gamble Commercial Company Employees' Savings Plan; |
38. | Registration Statement No. 333-208412 on Form S-8 for Group Profit Sharing, Incentive and Employer Contribution Plan (France); |
39. | Registration Statement No. 333-221035 on Form S-3 for Debt Securities 2017 Registration; |
40. | Registration Statement No. 333-221037 on Form S-3 for The Procter & Gamble Company Direct Stock Purchase Plan 2017; and |
41. | Registration Statement No. 333-221038 on Form S-3 for The Procter & Gamble U.K. Share Investment Scheme. |
(1) | I have reviewed this Form 10-K of The Procter & Gamble Company; |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
(5) | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
(1) | I have reviewed this Form 10-K of The Procter & Gamble Company; |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
(5) | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
(1) | Form 10-K of the Company for the year ended June 30, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in that Form 10-K fairly presents, in all material respects, the financial conditions and results of operations of the Company. |
(1) | Form 10-K of the Company for the year ended June 30, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in that Form 10-K fairly presents, in all material respects, the financial conditions and results of operations of the Company. |
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DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jul. 31, 2018 |
Dec. 31, 2017 |
|
Document Information [Line Items] | |||
Entity Registrant Name | PROCTER & GAMBLE CO | ||
Entity Central Index Key | 0000080424 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | PG | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Files | No | ||
Entity Common Stock, Shares Outstanding | 2,488,011,390 | ||
Entity Public Float | $ 231 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Net Earnings | $ 9,861 | $ 15,411 | $ 10,604 |
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (6) | 239 | (1,679) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (299) | (306) | 1 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (148) | (59) | 28 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (334) | (1,401) | 1,477 |
Other Comprehensive Income (Loss), Net of Tax | (119) | 1,275 | (3,127) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 9,742 | 16,686 | 7,477 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 109 | 85 | 96 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 9,633 | $ 16,601 | $ 7,381 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ (279) | $ (186) | $ 5 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 0 | (6) | 7 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 68 | $ 551 | $ (621) |
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
CURRENT ASSETS | ||
Cash and Cash Equivalents, at Carrying Value | $ 2,569 | $ 5,569 |
Available-for-sale Securities | 9,281 | 9,568 |
Accounts Receivable, Net, Current | 4,686 | 4,594 |
INVENTORIES | ||
Inventory, Raw Materials and Supplies, Gross | 1,335 | 1,308 |
Inventory, Work in Process, Gross | 588 | 529 |
Inventory, Finished Goods, Gross | 2,815 | 2,787 |
Inventory, Net | 4,738 | 4,624 |
Prepaid Expense and Other Assets, Current | 2,046 | 2,139 |
Assets, Current | 23,320 | 26,494 |
Property, Plant and Equipment, Net | 20,600 | 19,893 |
Goodwill | 45,175 | 44,699 |
Intangible Assets, Net (Excluding Goodwill) | 23,902 | 24,187 |
Other Assets, Noncurrent | 5,313 | 5,133 |
Assets | 118,310 | 120,406 |
CURRENT LIABILITIES | ||
Accounts Payable, Current | 10,344 | 9,632 |
Accrued Liabilities, Current | 7,470 | 7,024 |
Debt, Current | 10,423 | 13,554 |
Liabilities, Current | 28,237 | 30,210 |
Long-term Debt, Excluding Current Maturities | 20,863 | 18,038 |
Deferred Tax Liabilities, Net, Noncurrent | 6,163 | 8,126 |
Other Liabilities, Noncurrent | 10,164 | 8,254 |
Liabilities | 65,427 | 64,628 |
SHAREHOLDERS' EQUITY | ||
Common Stock, Value, Issued | 4,009 | 4,009 |
Additional Paid in Capital | 63,846 | 63,641 |
Reserve for ESOP Debt Retirement | (1,204) | (1,249) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (14,749) | (14,632) |
Treasury Stock, Value | (99,217) | (93,715) |
Retained Earnings (Accumulated Deficit) | 98,641 | 96,124 |
Stockholders' Equity Attributable to Noncontrolling Interest | 590 | 594 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 52,883 | 55,778 |
Liabilities and Equity | 118,310 | 120,406 |
Preferred Class A | ||
SHAREHOLDERS' EQUITY | ||
Preferred Stock, Stated Value, Issued | 967 | 1,006 |
Preferred Class B | ||
SHAREHOLDERS' EQUITY | ||
Preferred Stock, Stated Value, Issued | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 10,000.0 | 10,000.0 |
Common Stock, Shares, Issued | 4,009.2 | 4,009.2 |
Treasury Stock, Shares | 1,511.2 | 1,455.9 |
Preferred Class A | ||
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 600.0 | 600.0 |
Preferred Class B | ||
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 200.0 | 200.0 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions |
Total |
Common Stock |
Preferred Stock |
Additional Paid-in Capital |
Reserve for ESOP Debt Retirement |
AOCI Attributable to Parent |
Treasury Stock |
Retained Earnings |
Noncontrolling Interest |
|||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
BEGINNING BALANCE (in shares) at Jun. 30, 2015 | 2,714,571 | |||||||||||||
BEGINNING BALANCE at Jun. 30, 2015 | $ 63,050 | $ 4,009 | $ 1,077 | $ 63,852 | $ (1,320) | $ (12,780) | $ (77,226) | $ 84,807 | $ 631 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net Earnings | 10,604 | 10,508 | 96 | |||||||||||
Other Comprehensive Income (Loss), Net of Tax | (3,127) | (3,127) | ||||||||||||
Dividends to shareholders: | ||||||||||||||
Dividends, Common Stock | (7,181) | (7,181) | ||||||||||||
Dividends, Preferred Stock | (255) | (255) | ||||||||||||
Treasury Stock, Shares, Acquired | (103,449) | |||||||||||||
Payments for Repurchase of Common Stock and Stock Receipts | [1] | (8,217) | (8,217) | |||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 52,089 | |||||||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 3,090 | (144) | 3,234 | |||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 4,863 | |||||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (39) | (6) | (33) | ||||||||||
ESOP Debt Impacts | (104) | (30) | (74) | |||||||||||
Noncontrolling Interest, Period Increase (Decrease) | (85) | (85) | ||||||||||||
ENDING BALANCE (in shares) at Jun. 30, 2016 | 2,668,074 | |||||||||||||
ENDING BALANCE at Jun. 30, 2016 | 57,983 | $ 4,009 | 1,038 | 63,714 | (1,290) | (15,907) | (82,176) | 87,953 | 642 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net Earnings | 15,411 | 15,326 | 85 | |||||||||||
Other Comprehensive Income (Loss), Net of Tax | 1,275 | 1,275 | ||||||||||||
Dividends to shareholders: | ||||||||||||||
Dividends, Common Stock | (6,989) | (6,989) | ||||||||||||
Dividends, Preferred Stock | (247) | (247) | ||||||||||||
Treasury Stock, Shares, Acquired | (164,866) | |||||||||||||
Payments for Repurchase of Common Stock and Stock Receipts | [2] | (14,625) | (14,625) | |||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 45,848 | |||||||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 2,981 | (77) | 3,058 | |||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 4,241 | |||||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (32) | (4) | (28) | ||||||||||
ESOP Debt Impacts | (122) | (41) | (81) | |||||||||||
Noncontrolling Interest, Period Increase (Decrease) | (133) | (133) | ||||||||||||
ENDING BALANCE (in shares) at Jun. 30, 2017 | 2,553,297 | |||||||||||||
ENDING BALANCE at Jun. 30, 2017 | 55,778 | $ 4,009 | 1,006 | 63,641 | (1,249) | (14,632) | (93,715) | 96,124 | 594 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net Earnings | 9,861 | 9,750 | 111 | |||||||||||
Other Comprehensive Income (Loss), Net of Tax | (119) | (117) | (2) | |||||||||||
Dividends to shareholders: | ||||||||||||||
Dividends, Common Stock | (7,057) | (7,057) | ||||||||||||
Dividends, Preferred Stock | (265) | (265) | ||||||||||||
Treasury Stock, Shares, Acquired | (81,439) | |||||||||||||
Payments for Repurchase of Common Stock and Stock Receipts | (7,004) | (7,004) | ||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 21,655 | |||||||||||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 1,668 | 199 | 1,469 | |||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 4,580 | |||||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | (39) | (6) | (33) | ||||||||||
ESOP Debt Impacts | (134) | (45) | (89) | |||||||||||
Noncontrolling Interest, Period Increase (Decrease) | (113) | (113) | ||||||||||||
ENDING BALANCE (in shares) at Jun. 30, 2018 | 2,498,093 | |||||||||||||
ENDING BALANCE at Jun. 30, 2018 | $ 52,883 | $ 4,009 | $ 967 | $ 63,846 | $ (1,204) | $ (14,749) | $ (99,217) | $ 98,641 | $ 590 | |||||
|
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2016 |
Oct. 01, 2016 |
Feb. 29, 2016 |
---|---|---|---|
Batteries | Berkshire Hathaway | |||
Disposal Group, Including Discontinued Operation, Consideration | $ 4,213 | ||
Beauty Brands | |||
Disposal Group, Including Discontinued Operation, Consideration | $ 11,360 | ||
Disposal Groups - Equity of New Company | $ 9,421 | $ 9,400 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | $ 5,569 | $ 7,102 | $ 6,836 | ||||
OPERATING ACTIVITIES | |||||||
Net Earnings | 9,861 | 15,411 | 10,604 | ||||
Depreciation, Depletion and Amortization | 2,834 | 2,820 | 3,078 | ||||
Gain (Loss) on Extinguishment of Debt | 346 | 543 | 0 | ||||
Share-based Compensation | 395 | 351 | 335 | ||||
Deferred Income Tax Expense (Benefit) | (1,844) | (601) | (815) | ||||
Gain (Loss) on Disposition of Business | (176) | (5,490) | (41) | ||||
Goodwill and Indefinite-lived Intangibles Impairment Charges Including Disc Ops | 0 | 0 | 450 | ||||
Increase (Decrease) in Accounts Receivable | (177) | (322) | 35 | ||||
Increase (Decrease) in Inventories | (188) | 71 | 116 | ||||
Increase (Decrease) in Accounts Payable and Accrued Liabilities | 1,385 | (149) | 1,285 | ||||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 2,000 | (43) | 204 | ||||
Other Noncash Expense | 431 | 162 | 184 | ||||
Net Cash Provided by (Used in) Operating Activities | 14,867 | 12,753 | 15,435 | ||||
INVESTING ACTIVITIES | |||||||
Payments to Acquire Property, Plant, and Equipment | (3,717) | (3,384) | (3,314) | ||||
Proceeds from Sale of Productive Assets | 269 | 571 | 432 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | (109) | (16) | (186) | ||||
Payments to Acquire Short-term Investments | (3,909) | (4,843) | (2,815) | ||||
Proceeds from Sale of Short-term Investments | 3,928 | 1,488 | 1,354 | ||||
Increase (Decrease) in Restricted Cash | 0 | (874) | (996) | ||||
Cash Provided by (Used in) Investing Activities, Discontinued Operations | 0 | (475) | 0 | ||||
Decrease in Restricted Cash | 0 | 1,870 | 0 | ||||
Cash Divested from Divested Businesses, Investing Activities | 0 | 0 | (143) | ||||
Payments for (Proceeds from) Investments | 27 | (26) | 93 | ||||
Net Cash Provided by (Used in) Investing Activities | (3,511) | (5,689) | (5,575) | ||||
FINANCING ACTIVITIES | |||||||
Payments of Dividends | (7,310) | (7,236) | (7,436) | ||||
Proceeds from (Repayments of) Short-term Debt | (3,437) | 2,727 | (418) | ||||
Proceeds from Issuance of Long-term Debt | 5,072 | 3,603 | 3,916 | ||||
Repayments of Long-term Debt | (2,873) | [1] | (4,931) | [1] | (2,213) | ||
Payments for Repurchase of Common Stock | (7,004) | (5,204) | (4,004) | ||||
Cash Divested from Divested Businesses, Financing Activities | 0 | 0 | (1,730) | ||||
Proceeds From Stock Options Exercised And Other Financing Activities | 1,177 | 2,473 | 2,672 | ||||
Net Cash Provided by (Used in) Financing Activities | (14,375) | (8,568) | (9,213) | ||||
Effect of Exchange Rate on Cash and Cash Equivalents | 19 | (29) | (381) | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | (3,000) | (1,533) | 266 | ||||
CASH AND CASH EQUIVALENTS, END OF YEAR | 2,569 | 5,569 | 7,102 | ||||
SUPPLEMENTAL DISCLOSURE | |||||||
Interest Paid | 529 | 518 | 569 | ||||
Income Taxes Paid | $ 2,830 | $ 3,714 | $ 3,730 | ||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS - ADDITIONAL INFORMATION - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Gain (Loss) on Extinguishment of Debt | $ (346) | $ (543) | $ 0 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Oct. 01, 2016 |
Feb. 29, 2016 |
|||
Cash Divested from Divested Businesses, Financing Activities | $ 0 | $ 0 | $ 1,730 | ||||
Beauty Brands | |||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 11,360 | ||||||
Berkshire Hathaway | Batteries | |||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 4,213 | ||||||
Cash Divested from Divested Businesses, Financing Activities | [1] | $ 1,730 | |||||
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended |
---|---|
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations The Procter & Gamble Company's (the "Company," "Procter & Gamble," "we" or "us") business is focused on providing branded consumer packaged goods of superior quality and value. Our products are sold in more than 180 countries and territories primarily through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores and pharmacies. We have on-the-ground operations in approximately 70 countries. Basis of Presentation The Consolidated Financial Statements include the Company and its controlled subsidiaries. Intercompany transactions are eliminated. Because of a lack of control over Venezuela subsidiaries caused by a number of currency and other operating controls and restrictions, our Venezuelan subsidiaries are not consolidated for any year presented. We account for those subsidiaries using the cost method of accounting. Use of Estimates Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying disclosures. These estimates are based on management's best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, consumer and trade promotion accruals, restructuring reserves, pensions, post-employment benefits, stock options, valuation of acquired intangible assets, useful lives for depreciation and amortization of long-lived assets, future cash flows associated with impairment testing for goodwill, indefinite-lived intangible assets and other long-lived assets, deferred tax assets and liabilities, uncertain income tax positions and contingencies. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the financial statements in any individual year. However, in regard to ongoing impairment testing of goodwill and indefinite-lived intangible assets, significant deterioration in future cash flow projections or other assumptions used in estimating fair values versus those anticipated at the time of the initial valuations, could result in impairment charges that materially affect the financial statements in a given year. Revenue Recognition Sales are recognized when revenue is realized or realizable and has been earned. Revenue transactions represent sales of inventory. The revenue recorded is presented net of sales and other taxes we collect on behalf of governmental authorities. The revenue includes shipping and handling costs, which generally are included in the list price to the customer. Our policy is to recognize revenue when title to the product, ownership and risk of loss transfer to the customer, which can be on the date of shipment or the date of receipt by the customer. A provision for payment discounts and product return allowances is recorded as a reduction of sales in the same period the revenue is recognized. Trade promotions, consisting primarily of customer pricing allowances, merchandising funds and consumer coupons, are offered through various programs to customers and consumers. Sales are recorded net of trade promotion spending, which is recognized as incurred, generally at the time of the sale. Most of these arrangements have terms of approximately one year. Accruals for expected payouts under these programs are included as accrued marketing and promotion in the Accrued and other liabilities line item in the Consolidated Balance Sheets. Cost of Products Sold Cost of products sold is primarily comprised of direct materials and supplies consumed in the manufacturing of product, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. Cost of products sold also includes the cost to distribute products to customers, inbound freight costs, internal transfer costs, warehousing costs and other shipping and handling activity. Selling, General and Administrative Expense Selling, general and administrative expense (SG&A) is primarily comprised of marketing expenses, selling expenses, research and development costs, administrative and other indirect overhead costs, depreciation and amortization expense on non-manufacturing assets and other miscellaneous operating items. Research and development costs are charged to expense as incurred and were $1.9 billion in 2018, $1.9 billion in 2017 and $1.9 billion in 2016 (reported in Net earnings from continuing operations). Advertising costs, charged to expense as incurred, include worldwide television, print, radio, internet and in-store advertising expenses and were $7.1 billion in 2018, $7.1 billion in 2017 and $7.2 billion in 2016 (reported in Net earnings from continuing operations). Non-advertising related components of the Company's total marketing spending reported in SG&A include costs associated with consumer promotions, product sampling and sales aids. Other Non-Operating Income/(Expense), Net Other non-operating income/(expense), net primarily includes net acquisition and divestiture gains, investment income and other non-operating items. Currency Translation Financial statements of operating subsidiaries outside the U.S. generally are measured using the local currency as the functional currency. Adjustments to translate those statements into U.S. dollars are recorded in Other comprehensive income (OCI). For subsidiaries operating in highly inflationary economies, the U.S. dollar is the functional currency. Re- measurement adjustments for financial statements in highly inflationary economies and other transactional exchange gains and losses are reflected in earnings. Cash Flow Presentation The Consolidated Statements of Cash Flows are prepared using the indirect method, which reconciles net earnings to cash flow from operating activities. Cash flows from foreign currency transactions and operations are translated at an average exchange rate for the period. Cash flows from hedging activities are included in the same category as the items being hedged. Cash flows from derivative instruments designated as net investment hedges are classified as financing activities. Realized gains and losses from non-qualifying derivative instruments used to hedge currency exposures resulting from intercompany financing transactions are also classified as financing activities. Cash flows from other derivative instruments used to manage interest, commodity or other currency exposures are classified as operating activities. Cash payments related to income taxes are classified as operating activities. Cash flows from the Company's discontinued operations are included in the Consolidated Statements of Cash Flows. See Note 13 for significant cash flow items related to discontinued operations. Investments Investment securities consist of readily marketable debt and equity securities. Unrealized gains or losses from investments classified as trading, if any, are charged to earnings. Unrealized gains or losses on securities classified as available-for-sale are generally recorded in OCI. If an available-for-sale security is other than temporarily impaired, the loss is charged to either earnings or OCI depending on our intent and ability to retain the security until we recover the full cost basis and the extent of the loss attributable to the creditworthiness of the issuer. Investment securities are included as Available-for-sale investment securities and Other noncurrent assets in the Consolidated Balance Sheets. Investments in certain companies over which we exert significant influence, but do not control the financial and operating decisions, are accounted for as equity method investments. Other investments that are not controlled, and over which we do not have the ability to exercise significant influence, are accounted for under the cost method. Both equity and cost method investments are included as Other noncurrent assets in the Consolidated Balance Sheets. Inventory Valuation Inventories are valued at the lower of cost or market value. Product-related inventories are maintained on the first-in, first-out method. The cost of spare part inventories is maintained using the average-cost method. Property, Plant and Equipment Property, plant and equipment is recorded at cost reduced by accumulated depreciation. Depreciation expense is recognized over the assets' estimated useful lives using the straight-line method. Machinery and equipment includes office furniture and fixtures (15-year life), computer equipment and capitalized software (3- to 5-year lives) and manufacturing equipment (3- to 20-year lives). Buildings are depreciated over an estimated useful life of 40 years. Estimated useful lives are periodically reviewed and, when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. Goodwill and Other Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized, but are evaluated for impairment annually or more often if indicators of a potential impairment are present. Our annual impairment testing of goodwill is performed separately from our impairment testing of indefinite-lived intangible assets. We have acquired brands that have been determined to have indefinite lives. Those assets are evaluated annually for impairment. We evaluate a number of factors to determine whether an indefinite life is appropriate, including the competitive environment, market share, brand history, underlying product life cycles, operating plans and the macroeconomic environment of the countries in which the brands are sold. In addition, when certain events or changes in operating conditions occur, an additional impairment assessment is performed and indefinite-lived assets may be adjusted to a determinable life. The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, either on a straight-line or accelerated basis over the estimated periods benefited. Patents, technology and other intangible assets with contractual terms are generally amortized over their respective legal or contractual lives. Customer relationships, brands and other non-contractual intangible assets with determinable lives are amortized over periods generally ranging from 5 to 30 years. When certain events or changes in operating conditions occur, an impairment assessment is performed and remaining lives of intangible assets with determinable lives may be adjusted. For additional details on goodwill and intangible assets see Note 4. Fair Values of Financial Instruments Certain financial instruments are required to be recorded at fair value. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. Other financial instruments, including cash equivalents, certain investments and short-term debt, are recorded at cost, which approximates fair value. The fair values of long-term debt and financial instruments are disclosed in Note 9. New Accounting Pronouncements and Policies In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)." This guidance outlines a single, comprehensive model of accounting for revenue from contracts with customers. We will adopt the standard on July 1, 2018, using the modified retrospective transition method. Our revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer. Accordingly, the timing of revenue recognition is not materially impacted by the new standard. The adoption of the new standard will impact the accrual timing for certain portions of our customer and consumer promotional spending, which will result in a cumulative adjustment to retained earnings of up to $350, net of tax, on the date of adoption. The provisions of the new standard will also impact the classification of certain payments to customers, moving an immaterial amount of such payments (approximately $300) from expense to a deduction from net sales. This new guidance will not have any other material impacts on our Consolidated Financial Statements, including financial disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. We plan to adopt the standard on July 1, 2019. We are currently assessing the impact that the new standard will have on our Consolidated Financial Statements, which will consist primarily of a balance sheet gross up of our operating leases to show equal and offsetting lease assets and lease liabilities. For additional details on operating leases, see Note 12. In January 2017, the FASB issued ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The standard simplifies the accounting for goodwill impairment by requiring a goodwill impairment to be measured using a single step impairment model, whereby the impairment equals the difference between the carrying amount and the fair value of the specified reporting units in their entirety. This eliminates the second step of the current impairment model that requires companies to first estimate the fair value of all assets in a reporting unit, and then measure impairments based on those fair values and a residual measurement approach. It also specifies that any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We will adopt the standard no later than July 1, 2020. The impact of the new standard will be dependent on the specific facts and circumstances of future individual impairments, if any. In March 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Topic 715).” This guidance requires an entity to disaggregate the current service cost component from the other components of net benefit costs in the face of the income statement. It requires the service cost component to be presented with other current compensation costs for the related employees in the operating section of the income statement. Other components of net benefit cost are required to be presented outside of income from operations. We will adopt the standard retrospectively on July 1, 2018. The adoption of ASU 2017-07 is not expected to have a material impact on our Consolidated Financial Statements. We currently classify all net periodic pension costs within operating costs (as part of Cost of products sold and Selling, general and administrative expense). Had this standard been effective and adopted during fiscal 2018, Cost of products sold and Selling, general and administrative costs would have increased approximately $164 and $184, respectively, for the year ended June 30, 2018 with an offsetting change in Other non-operating income/(expense), net. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." This standard enables entities to better portray the economics of their risk management activities in the financial statements and enhances the transparency and understandability of hedge results through improved disclosures. The new standard is effective for us beginning July 1, 2019, with early adoption permitted. We elected to early adopt the new guidance in the first quarter of fiscal year 2018. The amended presentation and disclosure guidance was applied on a prospective basis. The primary impact of adoption is the required disclosure changes. The adoption of the new standard did not have a material impact on our Consolidated Financial Statements, including the cumulative-effect adjustment required upon adoption. No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our Consolidated Financial Statements.
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SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | SEGMENT INFORMATION During fiscal 2017, the Company completed the divestiture of four product categories, comprised of 43 of its beauty brands. The transactions included the global salon professional hair care and color, retail hair color, cosmetics and the fragrance businesses, along with select hair styling brands. In fiscal 2016, the Company completed the divestiture of its Batteries business to Berkshire Hathaway. Each of these businesses are reported as discontinued operations for all periods presented (see Note 13). Under U.S. GAAP, our Global Business Units (GBUs) are aggregated into five reportable segments: 1) Beauty, 2) Grooming, 3) Health Care, 4) Fabric & Home Care and 5) Baby, Feminine & Family Care. Our five reportable segments are comprised of:
The accounting policies of the segments are generally the same as those described in Note 1. Differences between these policies and U.S. GAAP primarily reflect income taxes, which are reflected in the segments using applicable blended statutory rates. Adjustments to arrive at our effective tax rate are included in Corporate, including the impacts from the U.S. Tax Act in fiscal 2018 (see Note 5). Corporate includes certain operating and non-operating activities that are not reflected in the operating results used internally to measure and evaluate the businesses, as well as items to adjust management reporting principles to U.S. GAAP. Operating activities in Corporate include the results of incidental businesses managed at the corporate level. Operating elements also include certain employee benefit costs, the costs of certain restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization, certain significant asset impairment charges and other general Corporate items. The non-operating elements in Corporate primarily include interest expense, certain acquisition and divestiture gains, interest and investing income and other financing costs. Total assets for the reportable segments include those assets managed by the reportable segment, primarily inventory, fixed assets and intangible assets. Other assets, primarily cash, accounts receivable, investment securities and goodwill, are included in Corporate. Our business units are comprised of similar product categories. Nine business units individually accounted for 5% or more of consolidated net sales as follows:
The Company had net sales in the U.S. of $27.3 billion, $27.3 billion and $27.0 billion for the years ended June 30, 2018, 2017 and 2016, respectively. Long-lived assets in the U.S. totaled $9.7 billion and $8.8 billion as of June 30, 2018 and 2017, respectively. Long-lived assets consists of property, plant and equipment. No other country's net sales or long-lived assets exceed 10% of the Company totals. Our largest customer, Walmart Inc. and its affiliates, accounted for consolidated net sales of approximately 15%, 16% and 15% in 2018, 2017 and 2016, respectively. No other customer represents more than 10% of our consolidated net sales.
(1) The Corporate reportable segment includes depreciation and amortization, total assets and capital expenditures of the Beauty Brands and Batteries businesses prior to their divestiture.
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SUPPLEMENTAL FINANCIAL INFORMATION |
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Disclosure Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Disclosures [Text Block] | SUPPLEMENTAL FINANCIAL INFORMATION The components of property, plant and equipment were as follows:
Selected components of current and noncurrent liabilities were as follows:
RESTRUCTURING PROGRAM The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before-tax costs incurred under the ongoing program have generally ranged from $250 to $500 annually. In fiscal 2012, the Company initiated an incremental restructuring program (covering fiscal 2012 through 2017) as part of a productivity and cost savings plan to reduce costs in the areas of supply chain, research and development, marketing activities and overhead expenses. The productivity and cost savings plan was designed to accelerate cost reductions by streamlining management decision making, manufacturing and other work processes in order to help fund the Company's growth strategy. Total restructuring costs incurred under the plan through fiscal 2017 was $5.6 billion, before tax. In fiscal 2017 the Company announced specific elements of another incremental multi-year productivity and cost savings plan to further reduce costs in the areas of supply chain, certain marketing activities and overhead expenses. This program is expected to result in incremental enrollment reductions, along with further optimization of the supply chain and other manufacturing processes. Restructuring costs incurred consist primarily of costs to separate employees, asset-related costs to exit facilities and other costs. The Company incurred total restructuring charges of $1,070 and $754 for the years ended June 30, 2018 and 2017, respectively. An additional amount of approximately $800 is expected to be incurred in fiscal 2019. Of the charges incurred, $251 and $137 were recorded in SG&A for the years ended June 30, 2018 and 2017, respectively and $819 and $593 were recorded in Cost of products sold for the years ended June 30, 2018 and 2017, respectively. The remainder of the charges for fiscal 2017 were included in Net earnings from discontinued operations. The following table presents restructuring activity for the years ended June 30, 2018 and 2017:
Separation Costs Employee separation charges for the years ended June 30, 2018 and 2017 relate to severance packages for approximately 2,720 and 2,120 employees, respectively. The packages were primarily voluntary and the amounts were calculated based on salary levels and past service periods. Severance costs related to voluntary separations are generally charged to earnings when the employee accepts the offer. Asset-Related Costs Asset-related costs consist of both asset write-downs and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or disposal. These assets were written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period. These assets relate primarily to manufacturing consolidations and technology standardizations. The asset-related charges will not have a significant impact on future depreciation charges. Other Costs Other restructuring-type charges are incurred as a direct result of the restructuring program. Such charges primarily include asset removal and termination of contracts related to supply chain optimization. Consistent with our historical policies for ongoing restructuring-type activities, the restructuring program charges are funded by and included within Corporate for both management and segment reporting. Accordingly, all of the charges under the program are included within the Corporate reportable segment. However, for informative purposes, the following table summarizes the total restructuring costs related to our reportable segments:
(1) Corporate includes costs related to allocated overheads, including charges related to our Sales and Market Operations, Global Business Services and Corporate Functions activities, along with costs related to discontinued operations from our Batteries and Beauty Brands businesses.
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND INTANGIBLE ASSETS The change in the net carrying amount of goodwill by reportable segment was as follows:
(1) Grooming goodwill balance is net of $1.2 billion accumulated impairment losses.During fiscal 2017, the Company completed the divestiture of four product categories, comprised of 43 of its beauty brands ("Beauty Brands"). The transactions included the global salon professional hair care and color, retail hair color and cosmetics businesses and the fine fragrances business, along with select hair styling brands (see Note 13). The Beauty Brands had historically been part of the Company's Beauty reportable segment. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Beauty Brands are presented as discontinued operations. As a result, the goodwill attributable to the Beauty Brands as of June 30, 2016 is excluded from the preceding table.The change in goodwill during fiscal 2018 was primarily due to acquisitions of two brands within the Beauty reportable segment and currency translation across all reportable segments. The change in goodwill during fiscal 2017 was primarily due to minor brand divestitures and currency translation across all reportable segments. The goodwill and intangible asset valuations that are utilized to test these assets for impairment are dependent on a number of significant estimates and assumptions, including macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, Company business plans and the discount rate applied to cash flows. We believe these estimates and assumptions are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those used in our valuations. To the extent such factors result in a failure to achieve the level of projected cash flows initially used to estimate fair value for purposes of establishing the carrying amount of goodwill and related intangible assets, we may need to record non-cash impairment charges in the future. Identifiable intangible assets were comprised of:
Amortization expense of intangible assets was as follows:
Estimated amortization expense over the next five fiscal years is as follows:
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Text Block] | INCOME TAXES Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "U.S. Tax Act"). The U.S. Tax Act significantly revises the future ongoing U.S. corporate income tax by, among other things, lowering the U.S. corporate income tax rates and implementing a hybrid territorial tax system. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ended June 30, 2018, and 21% for subsequent fiscal years. However, the U.S. Tax Act eliminates the domestic manufacturing deduction and moves to a hybrid territorial system, which also largely eliminates the ability to credit certain foreign taxes that existed prior to enactment of the U.S. Tax Act. There are also certain transitional impacts of the U.S. Tax Act. As part of the transition to the new hybrid territorial tax system, the U.S. Tax Act imposed a one-time repatriation tax on deemed repatriation of historical earnings of foreign subsidiaries. In addition, the reduction of the U.S. corporate tax rate caused us to adjust our U.S. deferred tax assets and liabilities to the lower federal base rate of 21%. These transitional impacts resulted in a provisional net charge of $602 for the fiscal year ended June 30, 2018, comprised of an estimated repatriation tax charge of $3.8 billion (comprised of U.S. repatriation taxes and foreign withholding taxes) and an estimated net deferred tax benefit of $3.2 billion. The changes included in the U.S. Tax Act are broad and complex. The final transitional impacts of the U.S. Tax Act may differ from the above estimate, possibly materially, due to, among other things, changes in interpretations of the U.S. Tax Act, any legislative action to address questions that arise because of the U.S. Tax Act, or any updates or changes to estimates the Company has utilized to calculate the transitional impacts, which we expect to finalize when we complete our tax return for fiscal 2018. The SEC has issued rules that would allow for a measurement period of up to one year after the enactment date of the U.S. Tax Act to finalize the recording of the related tax impacts. We currently anticipate finalizing and recording any resulting adjustments within the one-year time period provided by the SEC. Earnings from continuing operations before income taxes consisted of the following:
Income taxes on continuing operations consisted of the following:
A reconciliation of the U.S. federal statutory income tax rate to our actual income tax rate on continuing operations is provided below:
Country mix impacts of foreign operations includes the effects of foreign subsidiaries' earnings taxed at rates other than the U.S. statutory rate, the U.S. tax impacts of non-U.S. earnings repatriation and any net impacts of intercompany transactions. Changes in uncertain tax positions represent changes in our net liability related to prior year tax positions. Excess tax benefits from the exercise of stock options reflect the impact of adopting ASU 2016-09, "Stock Compensation (Topic 718): Improvements to Employee-Share-Based Payment Accounting)." Tax benefits charged to shareholders' equity totaled $342 for the year ended June 30, 2018. This primarily relates to the tax effects of Net Investment hedges, partially offset by the impact of certain adjustments to pension obligations recorded in stockholders' equity. Tax costs credited to shareholders' equity totaled $333 for the year ended June 30, 2017. This primarily relates to the impact of certain adjustments to pension obligations recorded in stockholders' equity, partially offset by the tax effects of Net Investment hedges. Prior to the passage of the U.S. Tax Act, the Company asserted that substantially all of the undistributed earnings of its foreign subsidiaries were considered indefinitely invested and accordingly, no deferred taxes were provided. Pursuant to the provisions of the U.S. Tax Act, these earnings were subjected to a one-time transition tax, for which a provisional charge has been recorded. This charge included provisional taxes for all U.S. income taxes and for the related foreign withholding taxes for the portion of those earnings which are no longer considered indefinitely invested. We have not provided deferred foreign withholding taxes on approximately $33 billion of earnings that are considered permanently reinvested. A reconciliation of the beginning and ending liability for uncertain tax positions is as follows:
Included in the total liability for uncertain tax positions at June 30, 2018, is $251 that, depending on the ultimate resolution, could impact the effective tax rate in future periods. The Company is present in approximately 70 countries and over 150 taxable jurisdictions and, at any point in time, has 40-50 jurisdictional audits underway at various stages of completion. We evaluate our tax positions and establish liabilities for uncertain tax positions that may be challenged by local authorities and may not be fully sustained, despite our belief that the underlying tax positions are fully supportable. Uncertain tax positions are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, developments in case law and the closing of statutes of limitation. Such adjustments are reflected in the tax provision as appropriate. We have tax years open ranging from 2008 and forward. We are generally not able to reliably estimate the ultimate settlement amounts until the close of the audit. While we do not expect material changes, it is possible that the amount of unrecognized benefit with respect to our uncertain tax positions could increase or decrease within the next 12 months. At this time, we are not able to make a reasonable estimate of the range of impact on the balance of uncertain tax positions or the impact on the effective tax rate related to any such changes. We recognize the additional accrual of any possible related interest and penalties relating to the underlying uncertain tax position in income tax expense. As of June 30, 2018, 2017 and 2016, we had accrued interest of $99, $100 and $323 and accrued penalties of $15, $20 and $20, respectively, which are not included in the above table. During the fiscal years ended June 30, 2018, 2017 and 2016, we recognized $(22), $62 and $2 in interest benefit/(expense) and $(5), $0 and $(2) in penalties benefit/(expense), respectively. The net benefits recognized resulted primarily from the favorable resolution of tax positions for prior years. Deferred income tax assets and liabilities were comprised of the following:
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | EARNINGS PER SHARE Basic net earnings per common share are calculated by dividing Net earnings attributable to Procter & Gamble less preferred dividends (net of related tax benefits) by the weighted average number of common shares outstanding during the year. Diluted net earnings per common share are calculated using the treasury stock method on the basis of the weighted average number of common shares outstanding plus the dilutive effect of stock options and other stock-based awards (see Note 7) and the assumed conversion of preferred stock (see Note 8). Net earnings per share were as follows:
(3) Net earnings per share are calculated on Net earnings attributable to Procter & Gamble.
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STOCK-BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | STOCK-BASED COMPENSATION We have two primary stock-based compensation programs under which we annually grant stock option, restricted stock unit (RSU) and performance stock unit (PSU) awards to key managers and directors. In our main long-term incentive program, key managers can elect to receive options or RSUs. All options vest after three years and have a 10-year life. Exercise prices on options are set equal to the market price of the underlying shares on the date of the grant. Effective in fiscal year 2017, RSUs vest and settle in shares of common stock three years from the grant date. RSUs granted prior to fiscal years 2017 vest and settle in shares of common stock five years from the grant date. Senior-level executives participate in an additional long-term incentive program that awards PSUs, which are paid in shares after the end of a three-year performance period. Under this program, the number of PSUs that will vest is based on the Company's performance relative to pre-established performance goals during that three year period. In addition to these long-term incentive programs, we award RSUs to the Company's non-employee directors and make other minor stock option and RSU grants to employees for which the terms are not substantially different from our long-term incentive awards. A total of 185 million shares of common stock were authorized for issuance under the stock-based compensation plan approved by shareholders in 2014, of which 65 million shares remain available for grant. The Company recognizes stock-based compensation expense based on the fair value of the awards at the date of grant. The fair value is amortized on a straight-line basis over the requisite service period. Awards to employees eligible for retirement prior to the award becoming fully vested are recognized as compensation expense from the grant date through the date the employee first becomes eligible to retire and is no longer required to provide services to earn the award. Stock-based compensation expense is included as part of Cost of products sold and SG&A in the Consolidated Statement of Earnings and includes an estimate of forfeitures, which is based on historical data. Total expense and related tax benefit were as follows:
We utilize an industry standard lattice-based valuation model to calculate the fair value for stock options granted. Assumptions utilized in the model, which are evaluated and revised to reflect market conditions and experience, were as follows:
Lattice-based option valuation models incorporate ranges of assumptions for inputs and those ranges are disclosed in the preceding table. Expected volatilities are based on a combination of historical volatility of our stock and implied volatilities of call options on our stock. We use historical data to estimate option exercise and employee termination patterns within the valuation model. The expected life of options granted is derived from the output of the option valuation model and represents the average period of time that options granted are expected to be outstanding. The interest rate for periods within the contractual life of the options is based on the U.S. Treasury yield curve in effect at the time of grant. A summary of options outstanding under the plans as of June 30, 2018 and activity during the year then ended is presented below:
The following table provides additional information on stock options:
At June 30, 2018, there was $203 of compensation cost that has not yet been recognized related to stock option grants. That cost is expected to be recognized over a remaining weighted average period of 2.0 years. A summary of non-vested RSUs and PSUs outstanding under the plans as of June 30, 2018 and activity during the year then ended is presented below:
At June 30, 2018, there was $255 of compensation cost that has not yet been recognized related to RSUs and PSUs. That cost is expected to be recognized over a remaining weighted average period of 2.1 years. The total grant date fair value of shares vested was $175, $163 and $97 in 2018, 2017 and 2016, respectively. The Company settles equity issuances with treasury shares. We have no specific policy to repurchase common shares to mitigate the dilutive impact of options, RSUs and PSUs. However, we have historically made adequate discretionary purchases, based on cash availability, market trends and other factors, to offset the impacts of such activity.
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POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN We offer various postretirement benefits to our employees. Defined Contribution Retirement Plans We have defined contribution plans, which cover the majority of our U.S. employees, as well as employees in certain other countries. These plans are fully funded. We generally make contributions to participants' accounts based on individual base salaries and years of service. Total global defined contribution expense was $292, $270 and $292 in 2018, 2017 and 2016, respectively. The primary U.S. defined contribution plan (the U.S. DC plan) comprises the majority of the expense for the Company's defined contribution plans. For the U.S. DC plan, the contribution rate is set annually. Total contributions for this plan approximated 14% of total participants' annual wages and salaries in 2018, 2017 and 2016. We maintain The Procter & Gamble Profit Sharing Trust (Trust) and Employee Stock Ownership Plan (ESOP) to provide a portion of the funding for the U.S. DC plan and other retiree benefits (described below). Operating details of the ESOP are provided at the end of this Note. The fair value of the ESOP Series A shares allocated to participants reduces our cash contribution required to fund the U.S. DC plan. Defined Benefit Retirement Plans and Other Retiree Benefits We offer defined benefit retirement pension plans to certain employees. These benefits relate primarily to local plans outside the U.S. and, to a lesser extent, plans assumed in previous acquisitions covering U.S. employees. We also provide certain other retiree benefits, primarily health care and life insurance, for the majority of our U.S. employees who become eligible for these benefits when they meet minimum age and service requirements. Generally, the health care plans require cost sharing with retirees and pay a stated percentage of expenses, reduced by deductibles and other coverages. These benefits are primarily funded by ESOP Series B shares and certain other assets contributed by the Company.Obligation and Funded Status. The following provides a reconciliation of benefit obligations, plan assets and funded status of these defined benefit plans:
The underfunding of pension benefits is primarily a function of the different funding incentives that exist outside of the U.S. In certain countries, there are no legal requirements or financial incentives provided to companies to pre-fund pension obligations prior to their due date. In these instances, benefit payments are typically paid directly from the Company's cash as they become due.
The accumulated benefit obligation for all defined benefit pension plans was $14,370 and $14,512 as of June 30, 2018 and 2017, respectively. Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consisted of the following:
Net Periodic Benefit Cost. Components of the net periodic benefit cost were as follows:
Amounts expected to be amortized from AOCI into net periodic benefit cost during the year ending June 30, 2019, are as follows:
Assumptions. We determine our actuarial assumptions on an annual basis. These assumptions are weighted to reflect each country that may have an impact on the cost of providing retirement benefits. The weighted average assumptions used to determine benefit obligations recorded on the Consolidated Balance Sheets as of June 30, were as follows: (1)
The weighted average assumptions used to determine net benefit cost recorded on the Consolidated Statement of Earnings for the years ended June 30, were as follows: (1)
For plans that make up the majority of our obligation, the Company calculates the benefit obligation and the related impacts on service and interest costs using specific spot rates along the corporate bond yield curve. For the remaining plans, the Company determines these amounts utilizing a single weighted-average discount rate derived from the corporate bond yield curve used to measure the plan obligations. Several factors are considered in developing the estimate for the long-term expected rate of return on plan assets. For the defined benefit retirement plans, these factors include historical rates of return of broad equity and bond indices and projected long-term rates of return obtained from pension investment consultants. The expected long-term rates of return for plan assets are 8 - 9% for equities and 5 - 6% for bonds. For other retiree benefit plans, the expected long-term rate of return reflects that the assets are comprised primarily of Company stock. The expected rate of return on Company stock is based on the long-term projected return of 8.5% and reflects the historical pattern of returns. Assumed health care cost trend rates could have a significant effect on the amounts reported for the other retiree benefit plans. A one percentage point change in assumed health care cost trend rates would have the following effects:
Our target asset allocation for the year ended June 30, 2018, and actual asset allocation by asset category as of June 30, 2018 and 2017, were as follows:
The following tables set forth the fair value of the Company's plan assets as of June 30, 2018 and 2017 segregated by level within the fair value hierarchy (refer to Note 9 for further discussion on the fair value hierarchy and fair value principles). Company stock listed as Level 2 in the hierarchy represents preferred shares which are valued based on the value of Company common stock. The majority of our Level 3 pension assets are insurance contracts. Their fair values are based on their cash equivalent or models that project future cash flows and discount the future amounts to a present value using market-based observable inputs, including credit risk and interest rate curves. There was no significant activity within the Level 3 pension and other retiree benefits plan assets during the years presented. Investments valued using net asset value as a practical expedient are primarily equity and fixed income collective funds. These assets are not valued using the fair value hierarchy, but rather valued using the net asset value reported by the managers of the funds and as supported by the unit prices of actual purchase and sale transactions.
(2) The Company's other pension plan assets measured at fair value are generally classified as Level 3 within the fair value hierarchy. There are no material other pension plan asset balances classified as Level 1 or Level 2 within the fair value hierarchy.Cash Flows. Management's best estimate of cash requirements and discretionary contributions for the defined benefit retirement plans and other retiree benefit plans for the year ending June 30, 2019, is $134 and $39, respectively. For the defined benefit retirement plans, this is comprised of $82 in expected benefit payments from the Company directly to participants of unfunded plans and $52 of expected contributions to funded plans. For other retiree benefit plans, this is comprised of $24 in expected benefit payments from the Company directly to participants of unfunded plans and $15 of expected contributions to funded plans. Expected contributions are dependent on many variables, including the variability of the market value of the plan assets as compared to the benefit obligation and other market or regulatory conditions. In addition, we take into consideration our business investment opportunities and resulting cash requirements. Accordingly, actual funding may differ significantly from current estimates. Total benefit payments expected to be paid to participants, which include payments funded from the Company's assets and payments from the plans are as follows:
Employee Stock Ownership Plan We maintain the ESOP to provide funding for certain employee benefits discussed in the preceding paragraphs. The ESOP borrowed $1.0 billion in 1989 and the proceeds were used to purchase Series A ESOP Convertible Class A Preferred Stock to fund a portion of the U.S. DC plan. Principal and interest requirements of the borrowing were paid by the Trust from dividends on the preferred shares and from advances provided by the Company. The original borrowing of $1.0 billion has been repaid in full, and advances from the Company of $52 remain outstanding at June 30, 2018. Each share is convertible at the option of the holder into one share of the Company's common stock. The dividend for the current year was equal to the common stock dividend of $2.79 per share. The liquidation value is $6.82 per share. In 1991, the ESOP borrowed an additional $1.0 billion. The proceeds were used to purchase Series B ESOP Convertible Class A Preferred Stock to fund a portion of retiree health care benefits. These shares, net of the ESOP's debt, are considered plan assets of the other retiree benefits plan discussed above. Debt service requirements are funded by preferred stock dividends, cash contributions and advances provided by the Company, of which $825 are outstanding at June 30, 2018. Each share is convertible at the option of the holder into one share of the Company's common stock. The dividend for the current year was equal to the common stock dividend of $2.79 per share. The liquidation value is $12.96 per share. Our ESOP accounting practices are consistent with current ESOP accounting guidance, including the permissible continuation of certain provisions from prior accounting guidance. ESOP debt, which is guaranteed by the Company, is recorded as debt (see Note 10) with an offset to the Reserve for ESOP debt retirement, which is presented within Shareholders' equity. Advances to the ESOP by the Company are recorded as an increase in the Reserve for ESOP debt retirement. Interest incurred on the ESOP debt is recorded as Interest expense. Dividends on all preferred shares, net of related tax benefits, are charged to Retained earnings. The series A and B preferred shares of the ESOP are allocated to employees based on debt service requirements. The number of preferred shares outstanding at June 30 was as follows:
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RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS |
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Disclosure Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Management & Fair Value Measurement [Text Block] | RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS As a multinational company with diverse product offerings, we are exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. We evaluate exposures on a centralized basis to take advantage of natural exposure correlation and netting. To the extent we choose to manage volatility associated with the net exposures, we enter into various financial transactions that we account for using the applicable accounting guidance for derivative instruments and hedging activities. These financial transactions are governed by our policies covering acceptable counterparty exposure, instrument types and other hedging practices. If the Company elects to do so and if the instrument meets certain specified accounting criteria, management designates derivative instruments as cash flow hedges, fair value hedges or net investment hedges. We record derivative instruments at fair value and the accounting for changes in the fair value depends on the intended use of the derivative, the resulting designation and the effectiveness of the instrument in offsetting the risk exposure it is designed to hedge. We generally have a high degree of effectiveness between the exposure being hedged and the hedging instrument. Credit Risk Management We have counterparty credit guidelines and normally enter into transactions with investment grade financial institutions, to the extent commercially viable. Counterparty exposures are monitored daily and downgrades in counterparty credit ratings are reviewed on a timely basis. We have not incurred, and do not expect to incur, material credit losses on our risk management or other financial instruments. Substantially all of the Company's financial instruments used in hedging transactions are governed by industry standard netting and collateral agreements with counterparties. If the Company's credit rating were to fall below the levels stipulated in the agreements, the counterparties could demand either collateralization or termination of the arrangements. The aggregate fair value of the instruments covered by these contractual features that are in a net liability position as of June 30, 2018, was not material. The Company has not been required to post collateral as a result of these contractual features. Interest Rate Risk Management Our policy is to manage interest cost using a mixture of fixed-rate and variable-rate debt. To manage this risk in a cost-efficient manner, we enter into interest rate swaps whereby we agree to exchange with the counterparty, at specified intervals, the difference between fixed and variable interest amounts calculated by reference to a notional amount. We designate certain interest rate swaps that meet specific accounting criteria as fair value hedges. For fair value hedges, the changes in the fair value of both the hedging instruments and the underlying debt obligations are immediately recognized in earnings. Historically, we had interest rate swaps designated as cash flow hedges. For the years ended June 30, 2018 and 2017, we did not have any contracts outstanding. Foreign Currency Risk Management We manufacture and sell our products and finance our operations in a number of countries throughout the world. As a result, we are exposed to movements in foreign currency exchange rates. We leverage the Company’s diversified portfolio of exposures as a natural hedge. In certain cases, we enter into non-qualifying foreign currency contracts to hedge certain balance sheet items subject to revaluation. The change in fair value of these instruments and the underlying exposure are both immediately recognized in earnings. To manage exchange rate risk related to our intercompany financing, we primarily use forward contracts and currency swaps. The change in fair value of these non-qualifying instruments is immediately recognized in earnings, substantially offsetting the foreign currency mark-to-market impact of the related exposure. Historically, we had certain foreign currency swaps with original maturities up to five years, which were intended to offset the effect of exchange rate fluctuations on intercompany loans denominated in foreign currencies; these swaps were accounted for as cash flow hedges. Those swaps were terminated during the year ended June 30, 2017 and as a result, there was an immaterial gain reclassified from AOCI into earnings for the year ended June 30, 2017 in the following tables but there were no outstanding contracts as of June 30, 2018 and 2017. Net Investment Hedging We hedge certain net investment positions in foreign subsidiaries. To accomplish this, we either borrow directly in foreign currencies and designate all or a portion of the foreign currency debt as a hedge of the applicable net investment position or we enter into foreign currency swaps that are designated as hedges of net investments. Changes in the fair value of these instruments are recognized in OCI and offset the change in the value of the net investment being hedged. Upon adoption of ASU 2017-12, the time value component of the net investment hedge currency swaps is excluded from the assessment of hedge effectiveness and reported in income on a systematic basis. Changes in the fair value of the swap, including changes in the fair value of the excluded time value component, are recognized in OCI and offset the value of the underlying net assets. Commodity Risk Management Certain raw materials used in our products or production processes are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors. To manage the volatility related to anticipated purchases of certain of these materials, we have historically, on a limited basis, used futures and options with maturities generally less than one year and swap contracts with maturities up to five years. As of and during the years ended June 30, 2018 and 2017, we did not have any commodity hedging activity. Insurance We self-insure for most insurable risks. However, we purchase insurance for Directors and Officers Liability and certain other coverage where it is required by law or by contract. Fair Value Hierarchy Accounting guidance on fair value measurements for certain financial assets and liabilities requires that financial assets and liabilities carried at fair value be classified and disclosed in one of the following categories:
When applying fair value principles in the valuation of assets and liabilities, we are required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company has not changed its valuation techniques used in measuring the fair value of any financial assets or liabilities during the year. Our fair value estimates take into consideration the credit risk of both the Company and our counterparties. When active market quotes are not available for financial assets and liabilities, we use industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including credit risk, interest rate curves, foreign currency rates and forward and spot prices for currencies. In circumstances where market-based observable inputs are not available, management judgment is used to develop assumptions to estimate fair value. Generally, the fair value of our Level 3 instruments is estimated as the net present value of expected future cash flows based on external inputs.he following table sets forth the Company's financial assets as of June 30, 2018 and 2017 that were measured at fair value on a recurring basis during the period:
Investment securities are presented in Available-for-sale investment securities and Other noncurrent assets. The amortized cost of the U.S. government securities with maturities less than one year was $2,003 and $2,494 as of June 30, 2018 and 2017, respectively. The amortized cost of the U.S. government securities with maturities between one and five years was $3,659 and $3,824 as of June 30, 2018 and 2017, respectively. The amortized cost of corporate bond securities with maturities of less than a year was $1,291 and $730 as of June 30, 2018 and 2017, respectively. The amortized cost of corporate bond securities with maturities between one and five years was $2,503 and $2,547 as of June 30, 2018 and 2017, respectively. The Company's investments measured at fair value are generally classified as Level 2 within the fair value hierarchy. There are no material investment balances classified as Level 1 or Level 3 within the fair value hierarchy, or using net asset value as a practical expedient. Fair values are generally estimated based upon quoted market prices for similar instruments. The fair value of long-term debt was $23,402 and $21,396 as of June 30, 2018 and 2017, respectively. This includes the current portion of debt instruments ($1,769 and $1,694 as of June 30, 2018 and 2017, respectively). Certain long-term debt (debt designated as a fair value hedge) is recorded at fair value. All other long-term debt is recorded at amortized cost, but is measured at fair value for disclosure purposes. We consider our debt to be Level 2 in the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments.Disclosures about Financial InstrumentsThe notional amounts and fair values of financial instruments used in hedging transactions as of June 30, 2018 and 2017 are as follows:
All derivative assets are presented in Prepaid expenses and other current assets or Other noncurrent assets. All derivative liabilities are presented in Accrued and other liabilities or Other noncurrent liabilities. The fair value of the interest rate derivative asset/liability directly offsets the cumulative amount of the fair value hedging adjustment included in the carrying amount of the underlying debt obligation. The carrying amount of the underlying debt obligation, which includes the unamortized discount or premium and the fair value adjustment, was $4,639 and $4,705 as of June 30, 2018 and 2017, respectively. In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $15,012 and $19,030 as of June 30, 2018 and 2017, respectively. The decrease in the notional balance of the net investment hedges, including the debt instruments designated as net investment hedges, is primarily driven by the reduction in net foreign currency hedgeable assets as a result of US tax reform. The increase in the notional balance of foreign currency contracts not designated as hedging instruments reflects changes in the level of intercompany financing activity during the period. All of the Company's derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. There were no transfers between levels during the periods presented. In addition, there was no significant activity within the Level 3 assets and liabilities during the periods presented. There were no significant assets or liabilities that were re-measured at fair value on a non-recurring basis during the years ended June 30, 2018 and 2017. Before tax gains/(losses) on our financial instruments in hedging relationships are categorized as follows:
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SHORT-TERM AND LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Text Block] | SHORT-TERM AND LONG-TERM DEBT
Long-term debt maturities during the next five fiscal years are as follows:
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ACCUMULATED OTHER COMPREHENSIVE INCOME |
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Accumulated Other Comprehensive Income/(Loss) [Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The table below presents the changes in Accumulated other comprehensive income/(loss) (AOCI), including the reclassifications out of Accumulated other comprehensive income/(loss) by component:
The below provides additional details on amounts reclassified from AOCI into the Consolidated Statement of Earnings:
• Financial statement translation: amounts reclassified from AOCI into Net earnings from discontinued operations. These amounts relate to accumulated translation associated with foreign entities sold as part of the sale of the Beauty Brands business.
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES Guarantees In conjunction with certain transactions, primarily divestitures, we may provide routine indemnifications (e.g., indemnification for representations and warranties and retention of previously existing environmental, tax and employee liabilities) for which terms range in duration and, in some circumstances, are not explicitly defined. The maximum obligation under some indemnifications is also not explicitly stated and, as a result, the overall amount of these obligations cannot be reasonably estimated. Other than obligations recorded as liabilities at the time of divestiture, we have not made significant payments for these indemnifications. We believe that if we were to incur a loss on any of these matters, the loss would not have a material effect on our financial position, results of operations or cash flows. In certain situations, we guarantee loans for suppliers and customers. The total amount of guarantees issued under such arrangements is not material. Off-Balance Sheet Arrangements We do not have off-balance sheet financing arrangements, including variable interest entities, that have a material impact on our financial statements. Purchase Commitments and Operating Leases We have purchase commitments for materials, supplies, services and property, plant and equipment as part of the normal course of business. Commitments made under take-or-pay obligations are as follows:
Such amounts represent minimum commitments under take-or-pay agreements with suppliers and are in line with expected usage. These amounts include purchase commitments related to service contracts for information technology, human resources management and facilities management activities that have been outsourced to third-party suppliers. Such amounts also include arrangements with suppliers that qualify as embedded operating leases. Due to the proprietary nature of many of our materials and processes, certain supply contracts contain penalty provisions for early termination. We do not expect to incur penalty payments under these provisions that would materially affect our financial position, results of operations or cash flows. We also lease certain property and equipment for varying periods. Future minimum rental commitments under non-cancelable operating leases, net of guaranteed sublease income, are as follows:
Litigation We are subject, from time to time, to certain legal proceedings and claims arising out of our business, which cover a wide range of matters, including antitrust and trade regulation, product liability, advertising, contracts, environmental, patent and trademark matters, labor and employment matters and tax. While considerable uncertainty exists, in the opinion of management and our counsel, the ultimate resolution of the various lawsuits and claims will not materially affect our financial position, results of operations or cash flows. We are also subject to contingencies pursuant to environmental laws and regulations that in the future may require us to take action to correct the effects on the environment of prior manufacturing and waste disposal practices. Based on currently available information, we do not believe the ultimate resolution of environmental remediation will materially affect our financial position, results of operations or cash flows.
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DISCONTINUED OPERATIONS |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | DISCONTINUED OPERATIONS On October 1, 2016, the Company completed the divestiture of four product categories to Coty, Inc. (“Coty”). The divestiture included 41 of the Company's beauty brands (“Beauty Brands”), including the global salon professional hair care and color, retail hair color, cosmetics and a majority of the fine fragrance businesses, along with select hair styling brands. The form of the divestiture transaction was a Reverse Morris Trust split-off, in which P&G shareholders were given the election to exchange their P&G shares for shares of a new corporation that held the Beauty Brands (Galleria Co.), and then immediately exchange those shares for Coty shares. The value P&G received in the transaction was $11.4 billion. The value was comprised of 105 million shares of common stock of the Company, which were tendered by shareholders of the Company and exchanged for the Galleria Co. shares, valued at approximately $9.4 billion, and the assumption of $1.9 billion of debt by Galleria Co. The shares tendered in the transaction were reflected as an addition to treasury stock and the cash received related to the debt assumed by Coty was reflected as an investing activity in the Consolidated Statement of Cash Flows. The Company recorded an after-tax gain on the final transaction of $5.3 billion, net of transaction and related costs. Two of the fine fragrance brands, Dolce & Gabbana and Christina Aguilera, were excluded from the divestiture. These brands were subsequently divested at amounts that approximated their adjusted carrying values. In February 2016, the Company completed the divestiture of its Batteries business to Berkshire Hathaway (BH) via a split transaction, in which the Company exchanged the Duracell Company, which the Company had infused with additional cash, to repurchase all 52.5 million shares of P&G stock owned by BH. During the fiscal year ended June 30, 2016, the Company recorded non-cash, before-tax goodwill and indefinite-lived asset impairment charges of $402 ($350 after tax), to reduce the Batteries carrying value to the total estimated proceeds based on the value of BH’s shares in P&G stock at the time of the impairment charges (see Note 4). The Company recorded an after-tax gain on the final transaction of $422 to reflect a subsequent increase in the final value of the BH’s shares in P&G stock. The total value of the transaction was $4.2 billion representing the value of the Duracell business and the cash infusion. The cash infusion of $1.7 billion was reflected as a purchase of treasury stock. In accordance with applicable accounting guidance for the disposal of long-lived assets, the results of the Beauty Brands and Batteries businesses are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. The Beauty Brands were historically part of the Company's Beauty reportable segment. The Batteries business was historically part of the Company's Fabric & Home Care reportable segment.On July 1, 2015, the Company adopted ASU 2014-08, which included new reporting and disclosure requirements for discontinued operations. The new requirements are effective for discontinued operations occurring on or after the adoption date, which includes the Beauty Brands divestiture. Discontinued operations prior to July 1, 2015, which included the Batteries divestiture, are reported based on the previous disclosure requirements for discontinued operations.The following table summarizes Net earnings from discontinued operations and reconciles to the Consolidated Statements of Earnings:
The following is selected financial information included in Net earnings from discontinued operations for the Beauty Brands:
The following is selected financial information included in cash flows from discontinued operations for the Beauty Brands:
Following is selected financial information included in Net earnings from discontinued operations for the Batteries business:
(1) The income tax benefit of the Batteries divestiture primarily represents the reversal of underlying deferred tax balances.
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QUARTERLY RESULTS (UNAUDITED) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information [Text Block] | QUARTERLY RESULTS (UNAUDITED)
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |
Nature of Operations | Nature of OperationsThe Procter & Gamble Company's (the "Company," "Procter & Gamble," "we" or "us") business is focused on providing branded consumer packaged goods of superior quality and value. Our products are sold in more than 180 countries and territories primarily through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores and pharmacies. We have on-the-ground operations in approximately 70 countries. |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the Company and its controlled subsidiaries. Intercompany transactions are eliminated. Because of a lack of control over Venezuela subsidiaries caused by a number of currency and other operating controls and restrictions, our Venezuelan subsidiaries are not consolidated for any year presented. We account for those subsidiaries using the cost method of accounting.
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Use of Estimates | Use of EstimatesPreparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying disclosures. These estimates are based on management's best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, consumer and trade promotion accruals, restructuring reserves, pensions, post-employment benefits, stock options, valuation of acquired intangible assets, useful lives for depreciation and amortization of long-lived assets, future cash flows associated with impairment testing for goodwill, indefinite-lived intangible assets and other long-lived assets, deferred tax assets and liabilities, uncertain income tax positions and contingencies. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the financial statements in any individual year. However, in regard to ongoing impairment testing of goodwill and indefinite-lived intangible assets, significant deterioration in future cash flow projections or other assumptions used in estimating fair values versus those anticipated at the time of the initial valuations, could result in impairment charges that materially affect the financial statements in a given year. |
Revenue Recognition | Revenue Recognition Sales are recognized when revenue is realized or realizable and has been earned. Revenue transactions represent sales of inventory. The revenue recorded is presented net of sales and other taxes we collect on behalf of governmental authorities. The revenue includes shipping and handling costs, which generally are included in the list price to the customer. Our policy is to recognize revenue when title to the product, ownership and risk of loss transfer to the customer, which can be on the date of shipment or the date of receipt by the customer. A provision for payment discounts and product return allowances is recorded as a reduction of sales in the same period the revenue is recognized. Trade promotions, consisting primarily of customer pricing allowances, merchandising funds and consumer coupons, are offered through various programs to customers and consumers. Sales are recorded net of trade promotion spending, which is recognized as incurred, generally at the time of the sale. Most of these arrangements have terms of approximately one year. Accruals for expected payouts under these programs are included as accrued marketing and promotion in the Accrued and other liabilities line item in the Consolidated Balance Sheets.
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Cost of Products Sold | Cost of Products SoldCost of products sold is primarily comprised of direct materials and supplies consumed in the manufacturing of product, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. Cost of products sold also includes the cost to distribute products to customers, inbound freight costs, internal transfer costs, warehousing costs and other shipping and handling activity. |
Selling, General and Administrative Expense | Selling, General and Administrative ExpenseSelling, general and administrative expense (SG&A) is primarily comprised of marketing expenses, selling expenses, research and development costs, administrative and other indirect overhead costs, depreciation and amortization expense on non-manufacturing assets and other miscellaneous operating items. Research and development costs are charged to expense as incurred and were $1.9 billion in 2018, $1.9 billion in 2017 and $1.9 billion in 2016 (reported in Net earnings from continuing operations). Advertising costs, charged to expense as incurred, include worldwide television, print, radio, internet and in-store advertising expenses and were $7.1 billion in 2018, $7.1 billion in 2017 and $7.2 billion in 2016 (reported in Net earnings from continuing operations). Non-advertising related components of the Company's total marketing spending reported in SG&A include costs associated with consumer promotions, product sampling and sales aids. |
Other Non-Operating Income/(Expense), Net | Other Non-Operating Income/(Expense), NetOther non-operating income/(expense), net primarily includes net acquisition and divestiture gains, investment income and other non-operating items. |
Currency Translation | Currency Translation Financial statements of operating subsidiaries outside the U.S. generally are measured using the local currency as the functional currency. Adjustments to translate those statements into U.S. dollars are recorded in Other comprehensive income (OCI). For subsidiaries operating in highly inflationary economies, the U.S. dollar is the functional currency. Re- measurement adjustments for financial statements in highly inflationary economies and other transactional exchange gains and losses are reflected in earnings.
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Cash Flow Presentation | Cash Flow PresentationThe Consolidated Statements of Cash Flows are prepared using the indirect method, which reconciles net earnings to cash flow from operating activities. Cash flows from foreign currency transactions and operations are translated at an average exchange rate for the period. Cash flows from hedging activities are included in the same category as the items being hedged. Cash flows from derivative instruments designated as net investment hedges are classified as financing activities. Realized gains and losses from non-qualifying derivative instruments used to hedge currency exposures resulting from intercompany financing transactions are also classified as financing activities. Cash flows from other derivative instruments used to manage interest, commodity or other currency exposures are classified as operating activities. Cash payments related to income taxes are classified as operating activities. Cash flows from the Company's discontinued operations are included in the Consolidated Statements of Cash Flows. See Note 13 for significant cash flow items related to discontinued operations. |
Investments | Investments Investment securities consist of readily marketable debt and equity securities. Unrealized gains or losses from investments classified as trading, if any, are charged to earnings. Unrealized gains or losses on securities classified as available-for-sale are generally recorded in OCI. If an available-for-sale security is other than temporarily impaired, the loss is charged to either earnings or OCI depending on our intent and ability to retain the security until we recover the full cost basis and the extent of the loss attributable to the creditworthiness of the issuer. Investment securities are included as Available-for-sale investment securities and Other noncurrent assets in the Consolidated Balance Sheets. Investments in certain companies over which we exert significant influence, but do not control the financial and operating decisions, are accounted for as equity method investments. Other investments that are not controlled, and over which we do not have the ability to exercise significant influence, are accounted for under the cost method. Both equity and cost method investments are included as Other noncurrent assets in the Consolidated Balance Sheets.
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Inventory Valuation | Inventory ValuationInventories are valued at the lower of cost or market value. Product-related inventories are maintained on the first-in, first-out method. The cost of spare part inventories is maintained using the average-cost method. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost reduced by accumulated depreciation. Depreciation expense is recognized over the assets' estimated useful lives using the straight-line method. Machinery and equipment includes office furniture and fixtures (15-year life), computer equipment and capitalized software (3- to 5-year lives) and manufacturing equipment (3- to 20-year lives). Buildings are depreciated over an estimated useful life of 40 years. Estimated useful lives are periodically reviewed and, when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts.
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Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized, but are evaluated for impairment annually or more often if indicators of a potential impairment are present. Our annual impairment testing of goodwill is performed separately from our impairment testing of indefinite-lived intangible assets. We have acquired brands that have been determined to have indefinite lives. Those assets are evaluated annually for impairment. We evaluate a number of factors to determine whether an indefinite life is appropriate, including the competitive environment, market share, brand history, underlying product life cycles, operating plans and the macroeconomic environment of the countries in which the brands are sold. In addition, when certain events or changes in operating conditions occur, an additional impairment assessment is performed and indefinite-lived assets may be adjusted to a determinable life. The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, either on a straight-line or accelerated basis over the estimated periods benefited. Patents, technology and other intangible assets with contractual terms are generally amortized over their respective legal or contractual lives. Customer relationships, brands and other non-contractual intangible assets with determinable lives are amortized over periods generally ranging from 5 to 30 years. When certain events or changes in operating conditions occur, an impairment assessment is performed and remaining lives of intangible assets with determinable lives may be adjusted. For additional details on goodwill and intangible assets see Note 4.
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Fair Values of Financial Instruments | Fair Values of Financial InstrumentsCertain financial instruments are required to be recorded at fair value. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. Other financial instruments, including cash equivalents, certain investments and short-term debt, are recorded at cost, which approximates fair value. The fair values of long-term debt and financial instruments are disclosed in Note 9. |
New Accounting Pronouncements and Policies | New Accounting Pronouncements and Policies In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)." This guidance outlines a single, comprehensive model of accounting for revenue from contracts with customers. We will adopt the standard on July 1, 2018, using the modified retrospective transition method. Our revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer. Accordingly, the timing of revenue recognition is not materially impacted by the new standard. The adoption of the new standard will impact the accrual timing for certain portions of our customer and consumer promotional spending, which will result in a cumulative adjustment to retained earnings of up to $350, net of tax, on the date of adoption. The provisions of the new standard will also impact the classification of certain payments to customers, moving an immaterial amount of such payments (approximately $300) from expense to a deduction from net sales. This new guidance will not have any other material impacts on our Consolidated Financial Statements, including financial disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. We plan to adopt the standard on July 1, 2019. We are currently assessing the impact that the new standard will have on our Consolidated Financial Statements, which will consist primarily of a balance sheet gross up of our operating leases to show equal and offsetting lease assets and lease liabilities. For additional details on operating leases, see Note 12. In January 2017, the FASB issued ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The standard simplifies the accounting for goodwill impairment by requiring a goodwill impairment to be measured using a single step impairment model, whereby the impairment equals the difference between the carrying amount and the fair value of the specified reporting units in their entirety. This eliminates the second step of the current impairment model that requires companies to first estimate the fair value of all assets in a reporting unit, and then measure impairments based on those fair values and a residual measurement approach. It also specifies that any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We will adopt the standard no later than July 1, 2020. The impact of the new standard will be dependent on the specific facts and circumstances of future individual impairments, if any. In March 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Topic 715).” This guidance requires an entity to disaggregate the current service cost component from the other components of net benefit costs in the face of the income statement. It requires the service cost component to be presented with other current compensation costs for the related employees in the operating section of the income statement. Other components of net benefit cost are required to be presented outside of income from operations. We will adopt the standard retrospectively on July 1, 2018. The adoption of ASU 2017-07 is not expected to have a material impact on our Consolidated Financial Statements. We currently classify all net periodic pension costs within operating costs (as part of Cost of products sold and Selling, general and administrative expense). Had this standard been effective and adopted during fiscal 2018, Cost of products sold and Selling, general and administrative costs would have increased approximately $164 and $184, respectively, for the year ended June 30, 2018 with an offsetting change in Other non-operating income/(expense), net. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." This standard enables entities to better portray the economics of their risk management activities in the financial statements and enhances the transparency and understandability of hedge results through improved disclosures. The new standard is effective for us beginning July 1, 2019, with early adoption permitted. We elected to early adopt the new guidance in the first quarter of fiscal year 2018. The amended presentation and disclosure guidance was applied on a prospective basis. The primary impact of adoption is the required disclosure changes. The adoption of the new standard did not have a material impact on our Consolidated Financial Statements, including the cumulative-effect adjustment required upon adoption. No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our Consolidated Financial Statements.
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SEGMENT INFORMATION (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Nine business units individually accounted for 5% or more of consolidated net sales as follows:
(1) % of sales by business unit excludes sales held in Corporate.
(1) The Corporate reportable segment includes depreciation and amortization, total assets and capital expenditures of the Beauty Brands and Batteries businesses prior to their divestiture.
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SUPPLEMENTAL FINANCIAL INFORMATION (Tables) |
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Disclosure Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] | The components of property, plant and equipment were as follows:
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Other Liabilities [Table Text Block] | Selected components of current and noncurrent liabilities were as follows:
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Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table presents restructuring activity for the years ended June 30, 2018 and 2017:
(1) Includes liabilities transferred to Coty related to our Beauty Brands divestiture.
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Restructuring and Related Costs [Table Text Block] | However, for informative purposes, the following table summarizes the total restructuring costs related to our reportable segments:
(1) Corporate includes costs related to allocated overheads, including charges related to our Sales and Market Operations, Global Business Services and Corporate Functions activities, along with costs related to discontinued operations from our Batteries and Beauty Brands businesses.
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | The change in the net carrying amount of goodwill by reportable segment was as follows:
(1) Grooming goodwill balance is net of $1.2 billion accumulated impairment losses.
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Intangible Assets Disclosure [Text Block] | Identifiable intangible assets were comprised of:
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Schedule of Amortization Expense [Table Text Block] | Amortization expense of intangible assets was as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated amortization expense over the next five fiscal years is as follows:
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INCOME TAXES (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Earnings from continuing operations before income taxes consisted of the following:
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Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income taxes on continuing operations consisted of the following:
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Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the U.S. federal statutory income tax rate to our actual income tax rate on continuing operations is provided below:
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Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending liability for uncertain tax positions is as follows:
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Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income tax assets and liabilities were comprised of the following:
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EARNINGS PER SHARE (Tables) |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Net earnings per share were as follows:
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STOCK-BASED COMPENSATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation, Activity [Table Text Block] | Total expense and related tax benefit were as follows:
(1) Includes amounts related to discontinued operations, which are not material in any period presented.
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Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | The following table provides additional information on stock options:
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Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of options outstanding under the plans as of June 30, 2018 and activity during the year then ended is presented below:
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Schedule of Nonvested Share Activity [Table Text Block] | A summary of non-vested RSUs and PSUs outstanding under the plans as of June 30, 2018 and activity during the year then ended is presented below:
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POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | The following provides a reconciliation of benefit obligations, plan assets and funded status of these defined benefit plans:
(5) Represents the net impact of ESOP debt service requirements, which is netted against plan assets for other retiree benefits.
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Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | The underfunding of pension benefits is primarily a function of the different funding incentives that exist outside of the U.S. In certain countries, there are no legal requirements or financial incentives provided to companies to pre-fund pension obligations prior to their due date. In these instances, benefit payments are typically paid directly from the Company's cash as they become due.
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Schedule of Accumulated and Projected Benefit Obligations [Table Text Block] | Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets consisted of the following:
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Schedule of Net Benefit Costs [Table Text Block] | Components of the net periodic benefit cost were as follows:
(2) For fiscal year ended June 30, 2017, amortization of net actuarial loss / prior service cost due to settlement and curtailments and $18 of the special termination benefits are included in Net earnings from discontinued operations.
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Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] | Amounts expected to be amortized from AOCI into net periodic benefit cost during the year ending June 30, 2019, are as follows:
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Schedule of Assumptions Used [Table Text Block] | The weighted average assumptions used to determine benefit obligations recorded on the Consolidated Balance Sheets as of June 30, were as follows: (1)
The weighted average assumptions used to determine net benefit cost recorded on the Consolidated Statement of Earnings for the years ended June 30, were as follows: (1)
(1) Determined as of beginning of fiscal year.
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Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | A one percentage point change in assumed health care cost trend rates would have the following effects:
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Schedule of Allocation of Plan Assets [Table Text Block] | Our target asset allocation for the year ended June 30, 2018, and actual asset allocation by asset category as of June 30, 2018 and 2017, were as follows:
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Pension and Postretirement Plan Assets By Fair Value Hierarchy [Table Text Block] | These assets are not valued using the fair value hierarchy, but rather valued using the net asset value reported by the managers of the funds and as supported by the unit prices of actual purchase and sale transactions.
(2) The Company's other pension plan assets measured at fair value are generally classified as Level 3 within the fair value hierarchy. There are no material other pension plan asset balances classified as Level 1 or Level 2 within the fair value hierarchy.
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Schedule of Expected Benefit Payments [Table Text Block] | Total benefit payments expected to be paid to participants, which include payments funded from the Company's assets and payments from the plans are as follows:
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Employee Stock Ownership Plan (ESOP) Disclosures [Table Text Block] | The number of preferred shares outstanding at June 30 was as follows:
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RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS (Tables) |
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Disclosure Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | he following table sets forth the Company's financial assets as of June 30, 2018 and 2017 that were measured at fair value on a recurring basis during the period:
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Before tax gains/(losses) on our financial instruments in hedging relationships are categorized as follows:
(2) In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in AOCI for such instruments was $367 and $161, as of June 30, 2018 and 2017, respectively.
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Schedule of Derivative Instruments [Table Text Block] | The notional amounts and fair values of financial instruments used in hedging transactions as of June 30, 2018 and 2017 are as follows:
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SHORT-TERM AND LONG-TERM DEBT (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Text Block] |
(1) Short-term weighted average interest rates include the effects of interest rate swaps discussed in Note 9.
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Long-term Debt [Text Block] |
(2) Long-term weighted average interest rates include the effects of interest rate swaps discussed in Note 9.
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Maturities of Long-term Debt [Table Text Block] | Long-term debt maturities during the next five fiscal years are as follows:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The table below presents the changes in Accumulated other comprehensive income/(loss) (AOCI), including the reclassifications out of Accumulated other comprehensive income/(loss) by component:
(4) Net of tax (benefit) / expense of $0, $0 and $91 for gains/losses on hedges, investment securities and pension and other retiree benefit items, respectively, for the period ended June 30, 2018.
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COMMITMENTS AND CONTINGENCIES (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecorded Unconditional Purchase Obligations Disclosure [Table Text Block] | Commitments made under take-or-pay obligations are as follows:
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Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum rental commitments under non-cancelable operating leases, net of guaranteed sublease income, are as follows:
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DISCONTINUED OPERATIONS (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table summarizes Net earnings from discontinued operations and reconciles to the Consolidated Statements of Earnings:
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Discontinued Operations and Disposal Groups - Beauty Brands [Table Text Block] | The following is selected financial information included in Net earnings from discontinued operations for the Beauty Brands:
(1) The income tax benefit of the Beauty Brands divestiture represents the reversal of underlying deferred tax balances partially offset by current tax expense related to the transaction.The following is selected financial information included in cash flows from discontinued operations for the Beauty Brands:
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Disposal Groups, Including Discontinued Operations - Batteries [Table Text Block] | Following is selected financial information included in Net earnings from discontinued operations for the Batteries business:
(1) The income tax benefit of the Batteries divestiture primarily represents the reversal of underlying deferred tax balances.
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QUARTERLY RESULTS (UNAUDITED) (Tables) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] |
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) $ in Millions |
12 Months Ended | ||
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Jun. 30, 2018
USD ($)
countries
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Jun. 30, 2017
USD ($)
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Jun. 30, 2016
USD ($)
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Number of Countries in which Entity Operates | countries | 180 | ||
Number of Countries With On The Ground Operations | countries | 70 | ||
Research and Development Expense | $ 1,900 | $ 1,900 | $ 1,900 |
Advertising Expense | 7,100 | $ 7,100 | $ 7,200 |
Customer and Consumer Promotional Spending | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 350 | ||
Payments to Customers | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 300 | ||
Cost of Goods Sold | Pension Plan | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 164 | ||
Selling, General and Administrative Expenses | Pension Plan | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 184 | ||
Customer Relationships, Brands, and Other Non-Contractual Intangible Assets [Member] | Minimum | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Customer Relationships, Brands, and Other Non-Contractual Intangible Assets [Member] | Maximum | |||
Finite-Lived Intangible Asset, Useful Life | 30 years | ||
Furniture and Fixtures | |||
Property, Plant and Equipment, Useful Life | 15 years | ||
Computer Equipment | Minimum | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Computer Equipment | Maximum | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Buildings | |||
Property, Plant and Equipment, Useful Life | 40 years |
SEGMENT INFORMATION - ADDITIONAL INFORMATION (Details) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||
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Jun. 30, 2018
USD ($)
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Mar. 31, 2018
USD ($)
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Dec. 31, 2017
USD ($)
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Sep. 30, 2017
USD ($)
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Jun. 30, 2017
USD ($)
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Mar. 31, 2017
USD ($)
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Dec. 31, 2016
USD ($)
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Sep. 30, 2016
USD ($)
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Jun. 30, 2018
USD ($)
segment
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Jun. 30, 2017
USD ($)
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Jun. 30, 2016
USD ($)
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Oct. 01, 2016 |
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Number of Reportable Segments | segment | 5 | |||||||||||
Number of Reporting Units Accounting for 5% or More of Consolidated Net Sales | 9 | |||||||||||
Net Sales | $ 16,503 | $ 16,281 | $ 17,395 | $ 16,653 | $ 16,079 | $ 15,605 | $ 16,856 | $ 16,518 | $ 66,832 | $ 65,058 | $ 65,299 | |
Property, Plant and Equipment, Net | 20,600 | 19,893 | $ 20,600 | $ 19,893 | ||||||||
Wal-Mart Stores Inc and Affiliates | ||||||||||||
Percentage Of Total Revenues By Customer | 15.00% | 16.00% | 15.00% | |||||||||
UNITED STATES | ||||||||||||
Net Sales | $ 27,300 | $ 27,300 | $ 27,000 | |||||||||
Property, Plant and Equipment, Net | $ 9,700 | $ 8,800 | $ 9,700 | $ 8,800 | ||||||||
Beauty Brands | ||||||||||||
Disposal Groups - Number of Product Categories | 4 | |||||||||||
Disposal Groups - Number of Brands | 43 |
SEGMENT INFORMATION - PERCENT OF SALES BY BUSINESS UNIT (Details) |
12 Months Ended | |||||
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Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
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Segment Reporting Information [Line Items] | ||||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 100.00% | 100.00% | 100.00% | ||
Fabric Care | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 22.00% | 22.00% | 22.00% | ||
Baby Care | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 13.00% | 14.00% | 14.00% | ||
Hair Care | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 10.00% | 10.00% | 10.00% | ||
Home Care | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 10.00% | 10.00% | 10.00% | ||
Skin and Personal Care | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 9.00% | 8.00% | 8.00% | ||
Shave Care | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 8.00% | 9.00% | 9.00% | ||
Family Care | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 8.00% | 8.00% | 8.00% | ||
Oral Care | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 8.00% | 8.00% | 8.00% | ||
Feminine Care | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 6.00% | 6.00% | 6.00% | ||
All Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Reporting, Additional Information about Entity's Reportable Segments - Percent of Sales by Business Unit | [1] | 6.00% | 5.00% | 5.00% | ||
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SEGMENT INFORMATION - GLOBAL SEGMENT RESULTS (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||
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Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
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Net Sales | $ 16,503 | $ 16,281 | $ 17,395 | $ 16,653 | $ 16,079 | $ 15,605 | $ 16,856 | $ 16,518 | $ 66,832 | $ 65,058 | $ 65,299 | |||
Earnings/(Loss) from Continuing Operations Before Income Taxes | 13,326 | 13,257 | 13,369 | |||||||||||
Net Earnings from Continuing Operations | 1,890 | $ 2,540 | $ 2,561 | $ 2,870 | 2,202 | $ 2,556 | $ 2,561 | $ 2,875 | 9,861 | 10,194 | 10,027 | |||
Depreciation, Depletion and Amortization | 2,834 | 2,820 | 3,078 | |||||||||||
Assets | 118,310 | 120,406 | 118,310 | 120,406 | 127,136 | |||||||||
Payments to Acquire Property, Plant, and Equipment | 3,717 | 3,384 | 3,314 | |||||||||||
Beauty | ||||||||||||||
Net Sales | 12,406 | 11,429 | 11,477 | |||||||||||
Earnings/(Loss) from Continuing Operations Before Income Taxes | 3,042 | 2,546 | 2,636 | |||||||||||
Net Earnings from Continuing Operations | 2,320 | 1,914 | 1,975 | |||||||||||
Depreciation, Depletion and Amortization | 236 | 220 | 218 | |||||||||||
Assets | 4,709 | 4,184 | 4,709 | 4,184 | 3,888 | |||||||||
Payments to Acquire Property, Plant, and Equipment | 766 | 599 | 435 | |||||||||||
Grooming | ||||||||||||||
Net Sales | 6,551 | 6,642 | 6,815 | |||||||||||
Earnings/(Loss) from Continuing Operations Before Income Taxes | 1,801 | 1,985 | 2,009 | |||||||||||
Net Earnings from Continuing Operations | 1,432 | 1,537 | 1,548 | |||||||||||
Depreciation, Depletion and Amortization | 447 | 433 | 451 | |||||||||||
Assets | 22,609 | 22,759 | 22,609 | 22,759 | 22,819 | |||||||||
Payments to Acquire Property, Plant, and Equipment | 364 | 341 | 383 | |||||||||||
Health Care | ||||||||||||||
Net Sales | 7,857 | 7,513 | 7,350 | |||||||||||
Earnings/(Loss) from Continuing Operations Before Income Taxes | 1,922 | 1,898 | 1,812 | |||||||||||
Net Earnings from Continuing Operations | 1,283 | 1,280 | 1,250 | |||||||||||
Depreciation, Depletion and Amortization | 230 | 209 | 204 | |||||||||||
Assets | 5,254 | 5,194 | 5,254 | 5,194 | 5,139 | |||||||||
Payments to Acquire Property, Plant, and Equipment | 330 | 283 | 240 | |||||||||||
Fabric & Home Care | ||||||||||||||
Net Sales | 21,441 | 20,717 | 20,730 | |||||||||||
Earnings/(Loss) from Continuing Operations Before Income Taxes | 4,191 | 4,249 | 4,249 | |||||||||||
Net Earnings from Continuing Operations | 2,708 | 2,713 | 2,778 | |||||||||||
Depreciation, Depletion and Amortization | 534 | 513 | 531 | |||||||||||
Assets | 7,295 | 6,886 | 7,295 | 6,886 | 6,919 | |||||||||
Payments to Acquire Property, Plant, and Equipment | 1,020 | 797 | 672 | |||||||||||
Baby, Feminine & Family Care | ||||||||||||||
Net Sales | 18,080 | 18,252 | 18,505 | |||||||||||
Earnings/(Loss) from Continuing Operations Before Income Taxes | 3,527 | 3,868 | 4,042 | |||||||||||
Net Earnings from Continuing Operations | 2,251 | 2,503 | 2,650 | |||||||||||
Depreciation, Depletion and Amortization | 899 | 874 | 886 | |||||||||||
Assets | 9,682 | 9,920 | 9,682 | 9,920 | 9,863 | |||||||||
Payments to Acquire Property, Plant, and Equipment | 1,016 | 1,197 | 1,261 | |||||||||||
Corporate | ||||||||||||||
Net Sales | [1] | 497 | 505 | 422 | ||||||||||
Earnings/(Loss) from Continuing Operations Before Income Taxes | [1] | (1,157) | (1,289) | (1,379) | ||||||||||
Net Earnings from Continuing Operations | [1] | (133) | 247 | (174) | ||||||||||
Depreciation, Depletion and Amortization | [1] | 488 | 571 | 788 | ||||||||||
Assets | [1] | $ 68,761 | $ 71,463 | 68,761 | 71,463 | 78,508 | ||||||||
Payments to Acquire Property, Plant, and Equipment | [1] | $ 221 | $ 167 | $ 323 | ||||||||||
|
SUPPLEMENTAL FINANCIAL INFORMATION - PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
PROPERTY, PLANT AND EQUIPMENT | ||
Total Property, Plant and Equipment | $ 41,847 | $ 40,148 |
Accumulated Depreciation | 21,247 | 20,255 |
Property, Plant and Equipment, Net | 20,600 | 19,893 |
Buildings | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Total Property, Plant and Equipment | 7,188 | 6,943 |
Machinery and Equipment | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Total Property, Plant and Equipment | 30,595 | 29,505 |
Land | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Total Property, Plant and Equipment | 841 | 765 |
Construction in Progress | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Total Property, Plant and Equipment | $ 3,223 | $ 2,935 |
SUPPLEMENTAL FINANCIAL INFORMATION - ACCRUED AND OTHER LIABILITIES (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
ACCRUED AND OTHER LIABILITIES - CURRENT | ||
Marketing and Promotion | $ 3,208 | $ 2,792 |
Compensation Expenses | 1,298 | 1,344 |
Restructuring Reserves | 513 | 277 |
Taxes Payable | 268 | 449 |
Legal and Environmental | 156 | 168 |
Other Liabilities | 2,027 | 1,994 |
Accrued Liabilities, Current | 7,470 | 7,024 |
OTHER NONCURRENT LIABILITIES | ||
Pension Benefits | 4,768 | 5,487 |
Other Postretirement Benefits | 1,495 | 1,333 |
Uncertain Tax Positions | 581 | 564 |
U.S. Tax Act Transitional Tax Payable | 2,654 | 0 |
Liabilities, Noncurrent | 666 | 870 |
Other Liabilities, Noncurrent | $ 10,164 | $ 8,254 |
SUPPLEMENTAL FINANCIAL INFORMATION - ADDITIONAL INFORMATION (Details) $ in Millions |
12 Months Ended | 72 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
employees
|
Jun. 30, 2017
USD ($)
employees
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2017
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | $ 5,600 | ||||
Restructuring Charges | $ 1,070 | $ 754 | $ 977 | ||
Severance Packages | employees | 2,720 | 2,120 | |||
Selling, General and Administrative Expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 251 | $ 137 | |||
Cost of Goods Sold | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 819 | $ 593 | |||
Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Historical Restructuring Costs Before Tax | 250 | ||||
Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Historical Restructuring Costs Before Tax | $ 500 | ||||
Subsequent Event | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 800 |
SUPPLEMENTAL FINANCIAL INFORMATION - RESTRUCTURING ACTIVITY (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve Beginning Balance | $ 277 | $ 315 | ||||
Restructuring Charges | 1,070 | 754 | $ 977 | |||
Payments for Restructuring | (468) | (395) | [1] | |||
Charges Against Assets | (366) | (397) | ||||
Restructuring Reserve Ending Balance | 513 | 277 | 315 | |||
Separations | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve Beginning Balance | 228 | 243 | ||||
Restructuring Charges | 310 | 206 | ||||
Payments for Restructuring | (279) | (221) | [1] | |||
Charges Against Assets | 0 | 0 | ||||
Restructuring Reserve Ending Balance | 259 | 228 | 243 | |||
Asset-Related Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve Beginning Balance | 0 | 0 | ||||
Restructuring Charges | 366 | 397 | ||||
Payments for Restructuring | 0 | 0 | [1] | |||
Charges Against Assets | (366) | (397) | ||||
Restructuring Reserve Ending Balance | 0 | 0 | 0 | |||
Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve Beginning Balance | 49 | 72 | ||||
Restructuring Charges | 394 | 151 | ||||
Payments for Restructuring | (189) | (174) | [1] | |||
Charges Against Assets | 0 | 0 | ||||
Restructuring Reserve Ending Balance | $ 254 | $ 49 | $ 72 | |||
|
SUPPLEMENTAL FINANCIAL INFORMATION - OTHER COSTS (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 1,070 | $ 754 | $ 977 | ||
Beauty | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 60 | 90 | 72 | ||
Grooming | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 38 | 45 | 42 | ||
Health Care | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 21 | 15 | 26 | ||
Fabric & Home Care | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 115 | 144 | 250 | ||
Baby, Feminine & Family Care | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 547 | 231 | 225 | ||
Corporate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | [1] | $ 289 | $ 229 | $ 362 | |
|
GOODWILL AND INTANGIBLE ASSETS - GOODWILL BY GLOBAL BUSINESS UNIT (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||
Goodwill [Line Items] | |||||
Goodwill Acquisitions and Divestitures | $ 82 | $ (37) | |||
Goodwill, Translation and Purchase Accounting Adjustments | 394 | 386 | |||
Goodwill | 45,175 | 44,699 | $ 44,350 | ||
Beauty | |||||
Goodwill [Line Items] | |||||
Goodwill Acquisitions and Divestitures | 82 | 0 | |||
Goodwill, Translation and Purchase Accounting Adjustments | 119 | 146 | |||
Goodwill | 12,992 | 12,791 | 12,645 | ||
Grooming | |||||
Goodwill [Line Items] | |||||
Goodwill Acquisitions and Divestitures | 0 | 0 | |||
Goodwill, Translation and Purchase Accounting Adjustments | 193 | 150 | |||
Goodwill | [1] | 19,820 | 19,627 | 19,477 | |
Health Care | |||||
Goodwill [Line Items] | |||||
Goodwill Acquisitions and Divestitures | 0 | (10) | |||
Goodwill, Translation and Purchase Accounting Adjustments | 51 | 48 | |||
Goodwill | 5,929 | 5,878 | 5,840 | ||
Fabric & Home Care | |||||
Goodwill [Line Items] | |||||
Goodwill Acquisitions and Divestitures | 0 | (3) | |||
Goodwill, Translation and Purchase Accounting Adjustments | 8 | 4 | |||
Goodwill | 1,865 | 1,857 | 1,856 | ||
Baby, Feminine & Family Care | |||||
Goodwill [Line Items] | |||||
Goodwill Acquisitions and Divestitures | 0 | (24) | |||
Goodwill, Translation and Purchase Accounting Adjustments | 23 | 38 | |||
Goodwill | 4,569 | 4,546 | 4,532 | ||
Corporate | |||||
Goodwill [Line Items] | |||||
Goodwill Acquisitions and Divestitures | 0 | 0 | |||
Goodwill, Translation and Purchase Accounting Adjustments | 0 | 0 | |||
Goodwill | $ 0 | $ 0 | $ 0 | ||
|
GOODWILL AND INTANGIBLE ASSETS - GOODWILL BY GLOBAL BUSINESS UNIT - ADDITIONAL INFORMATION (Details) - USD ($) $ in Billions |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
---|---|---|---|
Grooming | |||
Goodwill [Line Items] | |||
Goodwill, Impaired, Accumulated Impairment Loss | $ 1.2 | $ 1.2 | $ 1.2 |
GOODWILL AND INTANGIBLE ASSETS - ADDITIONAL INFORMATION (Details) - Beauty Brands |
Dec. 31, 2016 |
Oct. 01, 2016 |
---|---|---|
Goodwill [Line Items] | ||
Disposal Groups - Number of Product Categories | 4 | |
Disposal Groups - Number of Brands | 43 |
GOODWILL AND INTANGIBLE ASSETS - INTANGIBLE ASSETS (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Goodwill [Line Items] | ||
Gross Carrying Amount | $ 7,376 | $ 7,327 |
Accumulated Amortization | (5,156) | (4,855) |
Intangible Assets with Indefinite Lives, Gross | 29,058 | 29,042 |
Brands | ||
Goodwill [Line Items] | ||
Intangible Assets with Indefinite Lives | 21,682 | 21,715 |
Brands | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 3,146 | 3,094 |
Accumulated Amortization | (2,046) | (1,898) |
Patents and technology | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 2,617 | 2,617 |
Accumulated Amortization | (2,350) | (2,261) |
Customer relationships | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 1,372 | 1,377 |
Accumulated Amortization | (616) | (564) |
Other | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 241 | 239 |
Accumulated Amortization | $ (144) | $ (132) |
GOODWILL AND INTANGIBLE ASSETS - AMORTIZATION OF INTANGIBLE ASSETS (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible Asset Amortization | $ 302 | $ 325 | $ 388 |
GOODWILL AND INTANGIBLE ASSETS - ESTIMATED AMORTIZATION EXPENSE (Details) $ in Millions |
Jun. 30, 2018
USD ($)
|
---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 280 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 254 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 205 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 188 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 177 |
INCOME TAXES - EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 9,277 | $ 9,031 | $ 8,788 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 4,049 | 4,226 | 4,581 |
Income Loss From Continuing Operations Before Income Taxes Adjusted for Net Earnings Attributable to Noncontrolling Interests | $ 13,326 | $ 13,257 | $ 13,369 |
INCOME TAXES - PROVISION FOR INCOME TAXES ON CONTINUING OPERATIONS (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
CURRENT TAX EXPENSE | |||
Current Federal Tax Expense (Benefit) | $ 3,965 | $ 1,531 | $ 1,673 |
Current Foreign Tax Expense (Benefit) | 1,131 | 1,243 | 1,483 |
Current State and Local Tax Expense (Benefit) | 213 | 241 | 224 |
Current Income Tax Expense (Benefit) | 5,309 | 3,015 | 3,380 |
DEFERRED TAX EXPENSE | |||
Deferred Federal Income Tax Expense (Benefit) | (1,989) | 28 | 33 |
Deferred Foreign Income Tax Expense (Benefit) | 145 | 20 | (71) |
Deferred Income Tax Expense (Benefit) Continuing Operations | (1,844) | 48 | (38) |
Income Tax Expense | $ 3,465 | $ 3,063 | $ 3,342 |
INCOME TAXES - INCOME TAX RATE RECONCILIATION (Details) |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 28.10% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | (4.70%) | (6.80%) | (9.10%) |
Effective Income Tax Rate Reconciliation, Tax Contingency, Other, Percent | (0.30%) | (2.00%) | (0.50%) |
Tax Rate Reconciliation, Excess (Deficient) Tax Benefit from Share-Based Compensation | (0.40%) | (1.30%) | 0.00% |
Effective Income Tax Rate Reconciliation, US Tax Reform Transition Impact, Percent | 4.50% | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (1.20%) | (1.80%) | (0.40%) |
Effective Income Tax Rate Reconciliation, Percent | 26.00% | 23.10% | 25.00% |
INCOME TAXES - ADDITIONAL INFORMATION (Details) $ in Millions |
12 Months Ended | 132 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018
USD ($)
countries
audit
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2018
USD ($)
countries
|
Jun. 30, 2037
USD ($)
|
Jan. 01, 2018 |
|
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 28.10% | 35.00% | 35.00% | ||||
Income Tax Expense (Benefit) | $ 3,465 | $ 3,063 | $ 3,342 | ||||
Deferred Federal Income Tax Expense (Benefit) | (1,989) | 28 | 33 | ||||
Income Tax Effects Allocated Directly to Equity | 342 | 333 | |||||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 33,000 | $ 33,000 | |||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 251 | $ 251 | |||||
Number of Countries With On The Ground Operations | countries | 70 | 70 | |||||
Number of Income Tax Jurisdiction | countries | 150 | 150 | |||||
Open Tax Year | 2008 | ||||||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 99 | 100 | 323 | $ 99 | |||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 15 | 20 | 20 | 15 | |||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | (22) | 62 | 2 | ||||
Unrecognized Tax Benefits, Income Tax Penalties Expense | (5) | 0 | $ (2) | ||||
Operating Loss Carryforwards | $ 3,500 | $ 3,300 | 3,500 | ||||
Minimum | |||||||
Number of Jurisdictional Audits | audit | 40 | ||||||
Maximum | |||||||
Number of Jurisdictional Audits | audit | 50 | ||||||
U.S. Tax Cuts and Jobs Act, Effective 2018 | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 28.00% | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Base Rate, Percent | 21.00% | ||||||
Income Tax Expense (Benefit) | $ 602 | ||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 3,800 | ||||||
Deferred Federal Income Tax Expense (Benefit) | 3,200 | ||||||
Net Operating Loss, Expiring Within 20 Years | Minimum | |||||||
Operating Loss Carryforwards | 1,200 | 1,200 | |||||
Net Operating Loss, Indefinite Life | |||||||
Operating Loss Carryforwards | $ 2,300 | $ 2,300 | |||||
Subsequent Event | U.S. Tax Cuts and Jobs Act, Effective 2018 | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||||||
Subsequent Event | Net Operating Loss, Expiring Within 20 Years | Maximum | |||||||
Operating Loss Carryforwards | $ 1,200 |
INCOME TAXES - ADDITIONAL INFORMATION OTHER (Details) - USD ($) $ in Billions |
Jun. 30, 2037 |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|---|
Operating Loss Carryforwards | $ 3.5 | $ 3.3 | |
Subsequent Event | Net Operating Loss, Expiring Within 20 Years | Maximum | |||
Operating Loss Carryforwards | $ 1.2 |
INCOME TAXES - UNRECOGNIZED TAX BENEFITS RECONCILIATION (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
BEGINNING OF YEAR | $ 465 | $ 857 | $ 1,096 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 26 | 87 | 124 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (38) | (147) | (97) |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 87 | 75 | 97 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (45) | (381) | (301) |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (20) | (22) | (39) |
Unrecognized Tax Benefits, Increases (Decreases) Resulting From Currency Translation | (5) | (4) | (23) |
END OF YEAR | $ 470 | $ 465 | $ 857 |
INCOME TAXES - DEFERRED INCOME TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
DEFERRED TAX ASSETS | ||
Deferred Tax Assets Pension And Postretirement Benefits | $ 1,478 | $ 1,775 |
Deferred Tax Assets, Other Tax Carryforwards | 1,067 | 1,516 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 476 | 732 |
Deferred Tax Assets, Property, Plant and Equipment | 223 | 212 |
Deferred Tax Assets Accrued Marketing And Promotion Expense | 223 | 210 |
Deferred Tax Assets, Unrealized Losses on Trading Securities | 61 | 259 |
Deferred Tax Assets, Inventory | 35 | 75 |
Deferred Tax Assets Accrued Interest And Taxes | 17 | 30 |
Deferred Tax Assets, Advance Payment | 4 | 121 |
Deferred Tax Assets, Other | 699 | 709 |
Deferred Tax Assets, Valuation Allowance | (457) | (505) |
Deferred Tax Assets, Net of Valuation Allowance | 3,826 | 5,134 |
DEFERRED TAX LIABILITIES | ||
Deferred Tax Liabilities, Goodwill and Intangible Assets | 6,168 | 9,403 |
Deferred Tax Liabilities, Property, Plant and Equipment | 1,276 | 1,495 |
Deferred Tax Liabilities, Foreign Withholding Tax on Earnings to be Repatriated | 244 | 0 |
Deferred Tax Liabilities, Unrealized Gains on Trading Securities | 169 | 314 |
Deferred Tax Liabilities, Other | 161 | 26 |
Deferred Tax Liabilities, Net | $ 8,018 | $ 11,238 |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
[5] | Mar. 31, 2018 |
[5] | Dec. 31, 2017 |
[5] | Sep. 30, 2017 |
[5] | Jun. 30, 2017 |
[5] | Mar. 31, 2017 |
[5] | Dec. 31, 2016 |
[5] | Sep. 30, 2016 |
[5] | Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||||||||||||
Net Earnings | $ 9,861 | $ 15,411 | $ 10,604 | ||||||||||||||||||||||||||||||
Net Earnings Attributable to Noncontrolling Interest | 111 | 85 | 96 | ||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Parent, Diluted | 9,750 | 15,326 | 10,508 | ||||||||||||||||||||||||||||||
Dividends, Preferred Stock | 265 | 247 | 255 | ||||||||||||||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 9,485 | $ 15,079 | $ 10,253 | ||||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding, Basic | 2,529.3 | 2,598.1 | 2,698.9 | ||||||||||||||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | [1] | 94.9 | 99.3 | 103.9 | |||||||||||||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | [2] | 32.5 | 43.0 | 41.6 | |||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 2,656.7 | 2,740.4 | 2,844.4 | ||||||||||||||||||||||||||||||
Earnings Per Share, Basic | [3],[4] | $ 3.75 | $ 5.80 | $ 3.80 | |||||||||||||||||||||||||||||
Earnings Per Share, Diluted | $ 0.72 | $ 0.95 | $ 0.93 | $ 1.06 | $ 0.82 | $ 0.93 | $ 2.88 | $ 0.96 | $ 3.67 | [3],[4],[5] | $ 5.59 | [3],[4],[5] | $ 3.69 | [3],[4] | |||||||||||||||||||
Continuing Operations | |||||||||||||||||||||||||||||||||
Net Earnings | $ 10,194 | $ 10,027 | |||||||||||||||||||||||||||||||
Net Earnings Attributable to Noncontrolling Interest | 85 | 96 | |||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Parent, Diluted | 10,109 | 9,931 | |||||||||||||||||||||||||||||||
Dividends, Preferred Stock | 247 | 255 | |||||||||||||||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 9,862 | $ 9,676 | |||||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding, Basic | 2,598.1 | 2,698.9 | |||||||||||||||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | [1] | 99.3 | 103.9 | ||||||||||||||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | [2] | 43.0 | 41.6 | ||||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 2,740.4 | 2,844.4 | |||||||||||||||||||||||||||||||
Earnings Per Share, Basic | [4] | $ 3.79 | $ 3.59 | ||||||||||||||||||||||||||||||
Earnings Per Share, Diluted | [4] | $ 3.69 | $ 3.49 | ||||||||||||||||||||||||||||||
Discontinued Operations | |||||||||||||||||||||||||||||||||
Net Earnings | $ 5,217 | $ 577 | |||||||||||||||||||||||||||||||
Net Earnings Attributable to Noncontrolling Interest | 0 | 0 | |||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Parent, Diluted | 5,217 | 577 | |||||||||||||||||||||||||||||||
Dividends, Preferred Stock | 0 | 0 | |||||||||||||||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 5,217 | $ 577 | |||||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding, Basic | 2,598.1 | 2,698.9 | |||||||||||||||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | [1] | 99.3 | 103.9 | ||||||||||||||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | [2] | 43.0 | 41.6 | ||||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 2,740.4 | 2,844.4 | |||||||||||||||||||||||||||||||
Earnings Per Share, Basic | [4] | $ 2.01 | $ 0.21 | ||||||||||||||||||||||||||||||
Earnings Per Share, Diluted | [4] | $ 1.90 | $ 0.20 | ||||||||||||||||||||||||||||||
|
EARNINGS PER SHARE - ANTIDILUTIVE SECURITIES (Details) - shares shares in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 48 | 20 | 55 |
STOCK-BASED COMPENSATION - ADDITIONAL INFORMATION (Details) - USD ($) shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Key Manager, Long-term Incentive, Stock Options Vest After Three Years, Life | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 185 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 65 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 175 | $ 163 | $ 97 |
Employee Stock Option | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 203 | ||
Employee Service Share Based Compensation Unrecognized Compensation Costs Nonvested Awards Weighted Average Period Of Recognition | 2 years | ||
Restricted Stock, RSUs and PSUs | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 255 | ||
Employee Service Share Based Compensation Unrecognized Compensation Costs Nonvested Awards Weighted Average Period Of Recognition | 2 years 1 month 6 days |
STOCK-BASED COMPENSATION - SHARE-BASED COMPENSATION ACTIVITY (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||
Share-based Compensation | $ 395 | $ 351 | $ 335 | ||||
Continuing and Discontinued Operations | |||||||
Stock or Unit Option Plan Expense | 220 | 216 | [1] | 199 | [1] | ||
Other Stock-Based Compensation Expense | 175 | 150 | [1] | 143 | [1] | ||
Share-based Compensation | 395 | 366 | [1] | 342 | [1] | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 87 | $ 111 | [1] | $ 85 | [1] | ||
|
STOCK-BASED COMPENSATION - ASSUMPTIONS UTIILIZED IN THE BINOMIAL LATTICE-BASED VALUATION MODEL (Details) |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 1.90% | 0.80% | 0.70% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 2.90% | 2.60% | 1.90% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.80% | 2.60% | 1.80% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 3.10% | 3.20% | 3.20% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 18.00% | 15.00% | 16.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 9 years 2 months 12 days | 9 years 7 months 6 days | 8 years 3 months 18 days |
STOCK-BASED COMPENSATION - OPTIONS OUTSTANDING (Details) $ / shares in Units, shares in Thousands, $ in Millions |
12 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
$ / shares
shares
| |
Options | |
Outstanding, Beginning of Year | shares | 206,485 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | shares | 20,292 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares | (19,622) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | shares | (1,501) |
Outstanding, End of Year | shares | 205,654 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 143,169 |
Weighted Average Exercise Price | |
Outstanding, Beginning of Year | $ / shares | $ 72.46 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | 82.19 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares | (63.44) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ / shares | (82.92) |
Outstanding, End of Year | $ / shares | 74.21 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 69.96 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 3 months 18 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 9 months 18 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | $ 1,349 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 1,326 |
STOCK BASED COMPENSATION - STOCK OPTIONS (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 11.89 | $ 10.45 | $ 8.48 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 500 | $ 1,334 | $ 1,388 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 209 | 246 | 200 |
Proceeds from Stock Options Exercised | 1,245 | 2,630 | 2,332 |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ 127 | $ 421 | $ 433 |
STOCK-BASED COMPENSATION - SCHEDULE OF NON-VESTED RSUs AND PSUs (Details) |
12 Months Ended |
---|---|
Jun. 30, 2018
$ / shares
shares
| |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 5,359 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 1,978 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | (1,777) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | shares | (184) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 5,376 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 74.98 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 79.73 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | (72.27) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | (74.79) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 77.17 |
Performance Stock Units (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 1,194 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 784 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | (550) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | shares | (43) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 1,385 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 82.40 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 78.59 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | (73.38) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | (81.56) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 84.08 |
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - DEFINED CONTRIBUTION RETIREMENT PLANS (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost | $ 292 | $ 270 | $ 292 |
UNITED STATES | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan Contribution Rate | 14.00% | 14.00% | 14.00% |
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - DEFINED CONTRIBUTION RETIREMENT PLANS - ADDITIONAL INFORMATION (Details) |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
UNITED STATES | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan Contribution Rate | 14.00% | 14.00% | 14.00% |
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - ADDITIONAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2019 |
Jun. 30, 1991 |
Jun. 30, 1989 |
||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 14,370 | $ 14,512 | |||||||
Equity Securities | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets Range Minimum | 8.00% | ||||||||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets Range Maximum | 9.00% | ||||||||
Pension Plan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | [1] | 6.80% | 6.90% | 7.20% | |||||
Pension Plan | Series A Preferred Stock | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Employee Stock Ownership Plan (ESOP), Debt Structure, Direct Loan, Amount | $ 1,000 | ||||||||
Employee Stock Ownership Plan (ESOP), Debt Structure, Employer Loan Guarantee | $ 52 | ||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 2.79 | ||||||||
Preferred Stock, Liquidation Preference Per Share | $ 6.82 | ||||||||
Other Retiree Benefits | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | [1] | 8.30% | 8.30% | 8.30% | |||||
Other Retiree Benefits | Series B Preferred Stock | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Employee Stock Ownership Plan (ESOP), Debt Structure, Direct Loan, Amount | $ 1,000 | ||||||||
Employee Stock Ownership Plan (ESOP), Debt Structure, Employer Loan Guarantee | $ 825 | ||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 2.79 | ||||||||
Preferred Stock, Liquidation Preference Per Share | $ 12.96 | ||||||||
Treasury Stock | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 8.50% | ||||||||
Bonds | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets Range Minimum | 5.00% | ||||||||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets Range Maximum | 6.00% | ||||||||
Subsequent Event | Pension Plan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 134 | ||||||||
Subsequent Event | Other Retiree Benefits | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 39 | ||||||||
Subsequent Event | Pension Plan - Contribution to Funded Plans | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 82 | ||||||||
Subsequent Event | Pension Plan - Contribution to Funded Plans | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 52 | ||||||||
Subsequent Event | Other Postretirement Benefits Plan - Contribution to Unfunded Plans | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 24 | ||||||||
Subsequent Event | Other Postretirement Benefits Plan - Contribution to Funded Plans | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 15 | ||||||||
|
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - RECONCILIATION OF BENEFIT OBLIGATIONS AND PLAN ASSETS (Details) - USD ($) $ in Millions |
12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
||||||||||||||||
Pension Plan | ||||||||||||||||||
CHANGE IN BENEFIT OBLIGATION | ||||||||||||||||||
Defined Benefit Plan, Benefit Obligation, Beginning of Year | [1],[2] | $ 16,160 | $ 17,285 | |||||||||||||||
Defined Benefit Plan, Service Cost | [3] | 280 | [2] | 310 | [2] | $ 314 | ||||||||||||
Defined Benefit Plan, Interest Cost | 348 | [2] | 300 | [2] | 466 | |||||||||||||
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | [2] | 13 | 14 | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | [2] | 12 | 2 | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | [2] | (722) | (643) | |||||||||||||||
Defined Benefit Plan, Acquisitions (Divestitures), Benefit Obligation | [2],[4] | 0 | (413) | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | [2] | 0 | (132) | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | [2] | 8 | 4 | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | [2] | 148 | 35 | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | [2] | (589) | (602) | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, End of Year | [1],[2] | 15,658 | 16,160 | 17,285 | ||||||||||||||
CHANGE IN PLAN ASSETS | ||||||||||||||||||
Defined Benefit Plan, Fair Value of Plan Assets, Beginning of Year | [2] | 10,829 | 10,269 | |||||||||||||||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | [2] | 553 | 884 | |||||||||||||||
Defined Benefit Plan Acquisitions Divestitures Plan Assets | [2],[4] | 0 | (34) | |||||||||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | [2] | 406 | 316 | |||||||||||||||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | [2] | 13 | 14 | |||||||||||||||
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | [2] | 55 | (18) | |||||||||||||||
Defined Benefit Plan, ESOP Debt Servicing | [2],[5] | 0 | 0 | |||||||||||||||
Defined Benefit Plan, Plan Assets, Benefits Paid | [2] | (589) | (602) | |||||||||||||||
Defined Benefit Plan, Fair Value of Plan Assets, End of Year | [2] | 11,267 | 10,829 | 10,269 | ||||||||||||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | [2] | (4,391) | (5,331) | |||||||||||||||
Other Retiree Benefits | ||||||||||||||||||
CHANGE IN BENEFIT OBLIGATION | ||||||||||||||||||
Defined Benefit Plan, Benefit Obligation, Beginning of Year | [1],[6] | 5,187 | 5,632 | |||||||||||||||
Defined Benefit Plan, Service Cost | [3] | 112 | [6] | 133 | [6] | 124 | ||||||||||||
Defined Benefit Plan, Interest Cost | 177 | [6] | 175 | [6] | 219 | |||||||||||||
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | [6] | 73 | 74 | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | [6] | (231) | 0 | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | [6] | (308) | (554) | |||||||||||||||
Defined Benefit Plan, Acquisitions (Divestitures), Benefit Obligation | [4],[6] | 0 | (31) | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | [6] | 0 | (37) | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | [6] | 7 | 21 | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | [6] | 5 | 16 | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | [6] | (244) | (242) | |||||||||||||||
Defined Benefit Plan, Benefit Obligation, End of Year | [1],[6] | 4,778 | 5,187 | 5,632 | ||||||||||||||
CHANGE IN PLAN ASSETS | ||||||||||||||||||
Defined Benefit Plan, Fair Value of Plan Assets, Beginning of Year | [6] | 3,831 | 3,787 | |||||||||||||||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | [6] | (481) | 136 | |||||||||||||||
Defined Benefit Plan Acquisitions Divestitures Plan Assets | [4],[6] | 0 | 0 | |||||||||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | [6] | 33 | 36 | |||||||||||||||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | [6] | 73 | 74 | |||||||||||||||
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | [6] | (3) | (4) | |||||||||||||||
Defined Benefit Plan, ESOP Debt Servicing | [5],[6] | 50 | 44 | |||||||||||||||
Defined Benefit Plan, Plan Assets, Benefits Paid | [6] | (244) | (242) | |||||||||||||||
Defined Benefit Plan, Fair Value of Plan Assets, End of Year | [6] | 3,259 | 3,831 | $ 3,787 | ||||||||||||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | [6] | $ (1,519) | $ (1,356) | |||||||||||||||
|
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - RECONCILIATION OF BENEFIT PLANS RECOGNIZED IN THE BALANCE SHEET (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Pension Plan | ||
CLASSIFICATION OF NET AMOUNT RECOGNIZED | ||
Assets for Plan Benefits, Defined Benefit Plan | $ 420 | $ 196 |
Liability, Defined Benefit Plan, Current | (43) | (40) |
Liability, Defined Benefit Plan, Noncurrent | (4,768) | (5,487) |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (4,391) | (5,331) |
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 3,787 | 4,548 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | 244 | 245 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 4,031 | 4,793 |
Other Retiree Benefits | ||
CLASSIFICATION OF NET AMOUNT RECOGNIZED | ||
Assets for Plan Benefits, Defined Benefit Plan | 0 | 0 |
Liability, Defined Benefit Plan, Current | (24) | (23) |
Liability, Defined Benefit Plan, Noncurrent | (1,495) | (1,333) |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (1,519) | (1,356) |
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 2,366 | 1,819 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | (478) | (293) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | $ 1,888 | $ 1,526 |
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - PENSION PLANS WITH ACCUMULATED AND PROJECTED BENEFIT OBLIGATIONS IN EXCESS OF PLAN ASSETS (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | ||
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | $ 8,467 | $ 13,699 |
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | 7,573 | 12,276 |
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Fair Value of Plan Assets | 3,740 | 8,279 |
Projected Benefit Obligation Exceeds the Fair Value of Plan Assets | ||
Defined Benefit Plan, Pension Plans With Projected Benefit Obligations In Excess Of Plan Assets, Aggregate Projected Benefit Obligation | 8,962 | 14,181 |
Defined Benefit Plan, Pension Plans With Projected Benefit Obligations In Excess Of Plan Assets, Aggregate Accumulated Benefit Obligation | 7,974 | 12,630 |
Defined Benefit Plan, Pension Plans With Projected Benefit Obligations In Excess Of Plan Assets, Aggregate Fair Value Of Plan Assets | $ 4,150 | $ 8,654 |
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions |
12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
||||||||||||
Pension Plan | ||||||||||||||
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST | ||||||||||||||
Defined Benefit Plan, Service Cost | [2] | $ 280 | [1] | $ 310 | [1] | $ 314 | ||||||||
Defined Benefit Plan, Interest Cost | 348 | [1] | 300 | [1] | 466 | |||||||||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (751) | (675) | (731) | |||||||||||
Defined Benefit Plan, Amortization of Gain (Loss) | 295 | 375 | 265 | |||||||||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 28 | 28 | 29 | |||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 0 | 186 | [3] | 0 | ||||||||||
Defined Benefit Plan, Other Cost (Credit) | 8 | 4 | 6 | |||||||||||
Defined Benefit Plan Gross Periodic Benefit Cost | 208 | 528 | 349 | |||||||||||
Employee Stock Ownership Plan (ESOP), Dividends on ESOP Preferred Stock | 0 | 0 | 0 | |||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 208 | 528 | 349 | |||||||||||
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI | ||||||||||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | (524) | (852) | ||||||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | 12 | 2 | ||||||||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (295) | (375) | ||||||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | (28) | (28) | ||||||||||||
Other Comprehensive Income Defined Benefit Plan Settlement And Curtailment Cost Before Tax | 0 | (186) | ||||||||||||
Other Comprehensive Income, Defined Benefit Plan, Actuarial Gain/(Loss) from Curtailment, Before Tax | 0 | (132) | ||||||||||||
Other Comprehensive Income, Defined Benefit Plan, Currency Translation and Other, Before Tax | 73 | 6 | ||||||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | (762) | (1,565) | ||||||||||||
Defined Benefit Plans, Amount Recognized In Periodic Benefit Cost And Accumulated Other Comprehensive Income | (554) | (1,037) | ||||||||||||
Other Retiree Benefits | ||||||||||||||
AMOUNTS RECOGNIZED IN NET PERIODIC BENEFIT COST | ||||||||||||||
Defined Benefit Plan, Service Cost | [2] | 112 | [4] | 133 | [4] | 124 | ||||||||
Defined Benefit Plan, Interest Cost | 177 | [4] | 175 | [4] | 219 | |||||||||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (451) | (431) | (416) | |||||||||||
Defined Benefit Plan, Amortization of Gain (Loss) | 69 | 122 | 78 | |||||||||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (41) | (45) | (52) | |||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 0 | 16 | [3] | 0 | ||||||||||
Defined Benefit Plan, Other Cost (Credit) | 7 | 21 | [3] | 12 | ||||||||||
Defined Benefit Plan Gross Periodic Benefit Cost | (127) | (9) | (35) | |||||||||||
Employee Stock Ownership Plan (ESOP), Dividends on ESOP Preferred Stock | (37) | (45) | (52) | |||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (164) | (54) | $ (87) | |||||||||||
CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN AOCI | ||||||||||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 624 | (259) | ||||||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | (231) | 0 | ||||||||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (69) | (122) | ||||||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 41 | 45 | ||||||||||||
Other Comprehensive Income Defined Benefit Plan Settlement And Curtailment Cost Before Tax | 0 | (16) | ||||||||||||
Other Comprehensive Income, Defined Benefit Plan, Actuarial Gain/(Loss) from Curtailment, Before Tax | 0 | (37) | ||||||||||||
Other Comprehensive Income, Defined Benefit Plan, Currency Translation and Other, Before Tax | (3) | 2 | ||||||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | 362 | (387) | ||||||||||||
Defined Benefit Plans, Amount Recognized In Periodic Benefit Cost And Accumulated Other Comprehensive Income | $ 198 | $ (441) | ||||||||||||
|
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - COMPONENTS OF NET PERIODIC BENEFIT COST - ADDITIONAL INFORMATION (Details) - Other Postretirement Benefit Plan - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Other Cost (Credit) | $ 7 | $ 21 | [1] | $ 12 | ||
Discontinued Operations | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined Benefit Plan, Other Cost (Credit) | $ 18 | |||||
|
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - AMOUNTS EXPECTED TO BE AMORTIZED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET PERIODIC BENEFIT COST (Details) - Subsequent Event $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | $ 224 |
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | 26 |
Other Retiree Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | 71 |
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | $ (49) |
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - WEIGHTED AVERAGE ASSUMPTIONS FOR THE BENEFIT CALCULATIONS AS WELL AS ASSUMED HEALTH CARE TREND RATES (Details) |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
||||||
Pension Plan | ||||||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | [1] | 2.50% | 2.40% | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | [1] | 2.60% | 3.00% | |||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | [2] | 2.40% | 2.10% | 3.10% | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | [2] | 6.80% | 6.90% | 7.20% | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | [2] | 3.00% | 2.90% | 3.10% | ||||
Other Retiree Benefits | ||||||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | [1] | 4.20% | 3.90% | |||||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | ||||||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | [1] | 6.60% | 6.40% | |||||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | [1] | 4.90% | 4.90% | |||||
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | [1] | 2025 | 2022 | |||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | [2] | 3.90% | 3.60% | 4.50% | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | [2] | 8.30% | 8.30% | 8.30% | ||||
|
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - ONE-PERCENTAGE POINT CHANGE IN ASSUMED HEALTH CARE COST TREND RATES (Details) $ in Millions |
12 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 62 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | (47) |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 737 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ (585) |
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - TARGET AND ACTUAL ASSET ALLOCATION (Details) |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Pension Plan | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Other Retiree Benefits | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Cash and Cash Equivalents | Pension Plan | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 2.00% | 2.00% |
Cash and Cash Equivalents | Other Retiree Benefits | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 2.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 1.00% | 1.00% |
Debt Securities | Pension Plan | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 65.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 59.00% | 53.00% |
Debt Securities | Other Retiree Benefits | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 3.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 4.00% | 4.00% |
Equity Securities | Pension Plan | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 39.00% | 45.00% |
Equity Securities | Other Retiree Benefits | ||
Target Asset Allocation | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 95.00% | |
Actual Asset Allocation | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 95.00% | 95.00% |
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - FAIR VALUE OF PLAN ASSETS (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Pension Plan | ||||||||||||
ASSETS AT FAIR VALUE | ||||||||||||
Defined Benefit Plan, Fair Value of Plan Assets | [1] | $ 11,267 | $ 10,829 | $ 10,269 | ||||||||
Defined Benefit Plan, Total Assets in the Fair Value Hierarchy | 536 | 299 | ||||||||||
Alternative Investment, Fair Value Disclosure | 10,731 | 10,530 | ||||||||||
Pension Plan | Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | ||||||||||||
ASSETS AT FAIR VALUE | ||||||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 136 | 134 | ||||||||||
Pension Plan | Company Stock | ||||||||||||
ASSETS AT FAIR VALUE | ||||||||||||
Defined Benefit Plan, Fair Value of Plan Assets | [2] | 0 | 0 | |||||||||
Pension Plan | Other Assets | Fair Value, Inputs, Level 1 | ||||||||||||
ASSETS AT FAIR VALUE | ||||||||||||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 400 | 165 | |||||||||
Pension Plan | Other Assets | Fair Value, Inputs, Level 2 | ||||||||||||
ASSETS AT FAIR VALUE | ||||||||||||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 0 | 165 | |||||||||
Other Retiree Benefits | ||||||||||||
ASSETS AT FAIR VALUE | ||||||||||||
Defined Benefit Plan, Fair Value of Plan Assets | [4] | 3,259 | 3,831 | $ 3,787 | ||||||||
Defined Benefit Plan, Total Assets in the Fair Value Hierarchy | 3,101 | 3,656 | ||||||||||
Alternative Investment, Fair Value Disclosure | 158 | 175 | ||||||||||
Other Retiree Benefits | Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | ||||||||||||
ASSETS AT FAIR VALUE | ||||||||||||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 6 | ||||||||||
Other Retiree Benefits | Company Stock | Fair Value, Inputs, Level 2 | ||||||||||||
ASSETS AT FAIR VALUE | ||||||||||||
Defined Benefit Plan, Fair Value of Plan Assets | [2] | 3,092 | 3,643 | |||||||||
Other Retiree Benefits | Other Assets | Fair Value, Inputs, Level 1 | ||||||||||||
ASSETS AT FAIR VALUE | ||||||||||||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | $ 4 | $ 7 | |||||||||
|
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - FAIR VALUE OF PLAN ASSETS - ADDITIONAL INFORMATION (Details) - Pension Plan - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||
---|---|---|---|---|---|---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined Benefit Plan, Fair Value of Plan Assets | [1] | $ 11,267 | $ 10,829 | $ 10,269 | ||||
Other Assets | Fair Value, Inputs, Level 2 | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined Benefit Plan, Fair Value of Plan Assets | [2] | 0 | 165 | |||||
Other Assets | Fair Value, Inputs, Level 3 | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined Benefit Plan, Fair Value of Plan Assets | [2] | $ 0 | $ 165 | |||||
|
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - TOTAL BENEFIT PAYMENTS EXPECTED TO BE PAID (Details) $ in Millions |
Jun. 30, 2018
USD ($)
|
---|---|
Pension Plan | |
EXPECTED BENEFIT PAYMENTS | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 517 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 508 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 545 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 557 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 577 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 3,280 |
Other Retiree Benefits | |
EXPECTED BENEFIT PAYMENTS | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 194 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 207 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 219 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 231 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 241 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 1,339 |
POSTRETIREMENT BENEFITS AND EMPLOYEE STOCK OWNERSHIP PLAN - ESOP SHARES OUTSTANDING (Details) - shares shares in Thousands |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
---|---|---|---|
Series A Preferred Stock | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 34,233 | 36,488 | 39,241 |
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares | 4,117 | 5,060 | 6,095 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 38,350 | 41,548 | 45,336 |
Series B Preferred Stock | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 25,895 | 25,378 | 23,925 |
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares | 28,512 | 30,412 | 32,319 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 54,407 | 55,790 | 56,244 |
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - ADDITIONAL INFORMATION (Details) |
12 Months Ended |
---|---|
Jun. 30, 2018 | |
Currency Swap | |
Derivative [Line Items] | |
Derivative, Term of Contract | 5 years |
Commodity Option | |
Derivative [Line Items] | |
Derivative, Term of Contract | 1 year |
Swap | |
Derivative [Line Items] | |
Derivative, Term of Contract | 5 years |
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 9,422 | $ 9,700 |
US Government Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 5,544 | 6,297 |
Corporate Bond Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 3,737 | 3,271 |
Other Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | $ 141 | $ 132 |
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - ASSETS - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
US Government Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $ 2,003 | $ 2,494 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 3,659 | 3,824 |
Corporate Bond Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | 1,291 | 730 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | $ 2,503 | $ 2,547 |
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - LIABILITIES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Long-term Debt, Fair Value | $ 23,402 | $ 21,396 |
Long Term Debt, Current Maturities measured at Fair Value | $ 1,769 | $ 1,694 |
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - NOTIONAL AMOUNTS AND FAIR VALUES OF QUALIFYING AND NON-QUALIFYING FINANCIAL INSTRUMENTS USED IN HEDGING TRANSACTIONS (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Derivative, Notional Amount | $ 13,793 | $ 15,623 |
Derivative Asset | 196 | 219 |
Derivative Liability | (184) | (186) |
Net Investment Hedging | ||
Derivative, Notional Amount | 1,848 | 6,102 |
Derivative Asset | 41 | 14 |
Derivative Liability | (75) | (177) |
Designated as Hedging Instrument | ||
Derivative, Notional Amount | 6,435 | 10,654 |
Derivative Asset | 166 | 194 |
Derivative Liability | (128) | (179) |
Interest Rate Contract | Fair Value Hedging | ||
Derivative, Notional Amount | 4,587 | 4,552 |
Derivative Asset | 125 | 180 |
Derivative Liability | (53) | (2) |
Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Derivative, Notional Amount | 7,358 | 4,969 |
Derivative Asset | 30 | 25 |
Derivative Liability | $ (56) | $ (7) |
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - NOTIONAL AMOUNTS AND FAIR VALUES OF QUALIFYING AND NON-QUALIFYING FINANCIAL INSTRUMENTS USED IN HEDGING TRANSACTIONS - ADDITIONAL INFORMATION (Details) - Underlying, Other - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Fair Value Hedging | ||
Derivative [Line Items] | ||
Underlying Debt Obligation, Carrying Amount | $ 4,639 | $ 4,705 |
Net Investment Hedging | ||
Derivative [Line Items] | ||
Underlying Debt Obligation, Carrying Amount | $ 15,012 | $ 19,030 |
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - AMOUNT OF GAINS AND LOSSES ON OUTSTANDING DERIVATIVES (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||
Foreign Exchange Contract | Not Designated as Hedging Instrument | ||||||
Derivative, Gain (Loss) on Derivative, Net | $ (1) | $ 59 | ||||
Net Investment Hedging | Foreign Exchange Contract | ||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | [1],[2] | (34) | (163) | |||
Cash Flow Hedging | Foreign Exchange Contract | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 69 | ||||
Fair Value Hedging | Interest Rate Contract | ||||||
Derivative, Gain (Loss) on Derivative, Net | $ (106) | $ (193) | ||||
|
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - AMOUNT OF GAINS AND LOSSES ON OUTSTANDING DERIVATIVES - ADDITIONAL INFORMATION (Details) - Net Investment Hedging - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 138 | $ 48 |
Accumulated Other Comprehensive Income, Gain (Loss) | $ 367 | $ 161 |
SHORT-TERM AND LONG-TERM DEBT - SHORT-TERM DEBT (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
||
---|---|---|---|---|
Debt, Current [Abstract] | ||||
Long-term Debt, Current Maturities | $ 1,772 | $ 1,676 | ||
Commercial Paper | 7,761 | 11,705 | ||
Short-term Bank Loans and Notes Payable | 800 | 0 | ||
Other Short-term Borrowings | 90 | 173 | ||
Debt, Current | $ 10,423 | $ 13,554 | ||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | [1] | 0.70% | 0.50% | |
|
SHORT-TERM AND LONG-TERM DEBT - LONG-TERM DEBT (Details) - USD ($) $ in Millions |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||
---|---|---|---|---|---|---|---|
LONG-TERM DEBT | |||||||
Other Long-term Debt | $ 3,717 | $ 5,460 | |||||
Long-term Debt, Current Maturities | (1,772) | (1,676) | |||||
Long-term Debt, Excluding Current Maturities | $ 20,863 | $ 18,038 | |||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | [1] | 2.50% | 2.60% | ||||
1.60% USD note due November 2018 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | $ 1,000 | $ 1,000 | |||||
1.75% USD note due October 2019 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 600 | 0 | |||||
1.90% USD note due November 2019 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 550 | 550 | |||||
0.28% JPY note due May 2020 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 903 | 894 | |||||
1.90% USD note due October 2020 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 600 | 0 | |||||
4.13% EUR note due December 2020 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 698 | 686 | |||||
9.36% ESOP debentures due 2018-2021 (1) | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | [2] | 327 | 417 | ||||
1.85% USD note due February 2021 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 600 | 600 | |||||
1.70% USD note due November 2021 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 875 | 875 | |||||
2.00% EUR note due November 2021 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 873 | 858 | |||||
2.30% USD note due February 2022 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 1,000 | 1,000 | |||||
2.15% USD note due August 2022 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 1,250 | 0 | |||||
2.00% EUR note due August 2022 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 1,164 | 1,144 | |||||
3.10% USD note due August 2023 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 1,000 | 1,000 | |||||
1.13% EUR note due November 2023 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 1,455 | 1,430 | |||||
0.50% EUR note due October 2024 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 582 | 0 | |||||
2.70% USD note due February 2026 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 600 | 600 | |||||
2.45% USD note due November 2026 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 875 | 875 | |||||
4.88% EUR note due May 2027 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 1,164 | 1,144 | |||||
2.85% USD note due August 2027 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 750 | 0 | |||||
1.25% EUR note due October 2029 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 582 | 0 | |||||
5.55% USD note due March 2037 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 763 | 1,130 | |||||
3.50% USD note due October 2047 | |||||||
LONG-TERM DEBT | |||||||
Notes Payable, Noncurrent | 600 | 0 | |||||
Capital Lease Obligations | |||||||
LONG-TERM DEBT | |||||||
Other Long-term Debt | $ 107 | $ 51 | |||||
|
SHORT-TERM AND LONG-TERM DEBT - LONG-TERM DEBT MATURITIES (Details) $ in Millions |
Jun. 30, 2018
USD ($)
|
---|---|
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 1,772 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 2,621 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 2,034 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 2,839 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 2,498 |
ACCUMULATED OTHER COMPREHENSIVE INCOME - STATEMENT OF AOCI (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (14,632) | $ (15,907) | |||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (372) | [1] | 980 | [2] | |||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 253 | [3] | 295 | [4] | |||||||||
Other Comprehensive Income (Loss), Net of Tax | (119) | 1,275 | $ (3,127) | ||||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (2) | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (14,749) | (14,632) | (15,907) | ||||||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2,947) | (2,641) | |||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (299) | [1] | (237) | [2] | |||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | [3] | (69) | [4] | |||||||||
Other Comprehensive Income (Loss), Net of Tax | (299) | (306) | |||||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (3,246) | (2,947) | (2,641) | ||||||||||
Accumulated Net Investment Gain (Loss) Attributable to Parent | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (25) | 34 | |||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (141) | [1] | (49) | [2] | |||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (7) | [3] | (10) | [4] | |||||||||
Other Comprehensive Income (Loss), Net of Tax | (148) | (59) | |||||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (173) | (25) | 34 | ||||||||||
Pension Plan | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (4,397) | (5,798) | |||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 74 | [1] | 910 | [2] | |||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 260 | [3] | 491 | [4] | |||||||||
Other Comprehensive Income (Loss), Net of Tax | 334 | 1,401 | |||||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (5) | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (4,058) | (4,397) | (5,798) | ||||||||||
Foreign Currency Gain (Loss) | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (7,263) | (7,502) | |||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (6) | [1] | 356 | [2] | |||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | [3] | (117) | [4] | |||||||||
Other Comprehensive Income (Loss), Net of Tax | (6) | 239 | |||||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 3 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (7,272) | $ (7,263) | $ (7,502) | ||||||||||
|
ACCUMULATED OTHER COMPREHENSIVE INCOME - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ (279) | $ (186) | $ 5 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 0 | (6) | 7 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | (68) | (551) | $ 621 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 0 | 0 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 91 | 191 | |
Other Comprehensive Income (Loss) | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (279) | (186) | |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 0 | (6) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ (23) | $ 360 |
COMMITMENTS AND CONTINGENCIES - PURCHASE OBLIGATIONS (Details) $ in Millions |
Jun. 30, 2018
USD ($)
|
---|---|
Unrecorded Unconditional Purchase Obligation, Rolling Maturity [Abstract] | |
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | $ 778 |
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 111 |
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 56 |
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 34 |
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 13 |
Unrecorded Unconditional Purchase Obligation, Due after Five Years | $ 137 |
COMMITMENTS AND CONTINGENCIES - OPERATING LEASE PAYMENTS (Details) $ in Millions |
Jun. 30, 2018
USD ($)
|
---|---|
Operating Leases, Future Minimum Payments Due, Rolling Maturity [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 275 |
Operating Leases, Future Minimum Payments, Due in Two Years | 240 |
Operating Leases, Future Minimum Payments, Due in Three Years | 202 |
Operating Leases, Future Minimum Payments, Due in Four Years | 172 |
Operating Leases, Future Minimum Payments, Due in Five Years | 153 |
Operating Leases, Future Minimum Payments, Due Thereafter | $ 296 |
DISCONTINUED OPERATIONS - ADDITIONAL INFORMATION (Details) shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
Oct. 01, 2016
USD ($)
shares
|
Feb. 29, 2016
USD ($)
shares
|
|||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Net Earnings/(Loss) from Discontinued Operations | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 5,335 | $ (118) | $ 0 | $ 5,217 | $ 577 | ||||
Cash Divested from Divested Businesses, Financing Activities | $ 0 | 0 | 1,730 | ||||||||||||
Beauty Brands | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Disposal Groups - Number of Product Categories | 4 | ||||||||||||||
Disposal Groups - Number of Brands | 43 | ||||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 11,360 | ||||||||||||||
Disposal Groups - Consideration Received (Shares) | shares | 105.0 | ||||||||||||||
Disposal Groups - Equity of New Company | $ 9,421 | $ 9,400 | |||||||||||||
Disposal Groups - Expected Consideration Received (Shares) | $ 1,900 | ||||||||||||||
Net Earnings/(Loss) from Discontinued Operations | $ 5,300 | 5,217 | 336 | ||||||||||||
Goodwill and Intangible Asset Impairment | 0 | 48 | |||||||||||||
Beauty Brands, Fine Fragrances | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Disposal Groups - Number of Brands | 2 | ||||||||||||||
Beauty Brands Divested to Coty | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Disposal Groups - Number of Brands | 41 | ||||||||||||||
Batteries | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Disposal Groups - Consideration Received (Shares) | shares | 52.5 | ||||||||||||||
Net Earnings/(Loss) from Discontinued Operations | $ 0 | 241 | |||||||||||||
Berkshire Hathaway | Batteries | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 4,213 | ||||||||||||||
Goodwill and Intangible Asset Impairment | 402 | ||||||||||||||
Intangible Asset Impairment Charges After Tax | 350 | ||||||||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 422 | ||||||||||||||
Cash Divested from Divested Businesses, Financing Activities | [1] | $ 1,730 | |||||||||||||
|
DISCONTINUED OPERATIONS - NET EARNINGS FROM DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net Earnings/(Loss) from Discontinued Operations | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 5,335 | $ (118) | $ 0 | $ 5,217 | $ 577 |
Beauty Brands | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net Earnings/(Loss) from Discontinued Operations | $ 5,300 | 5,217 | 336 | ||||||||
Batteries | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net Earnings/(Loss) from Discontinued Operations | 0 | 241 | |||||||||
Discontinued Operations | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net Earnings/(Loss) from Discontinued Operations | $ 5,217 | $ 577 |
DISCONTINUED OPERATIONS - NET EARNINGS FROM DISCONTINUED OPERATIONS FOR BEAUTY BRANDS (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Net Earnings/(Loss) from Discontinued Operations | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 5,335 | $ (118) | $ 0 | $ 5,217 | $ 577 | |||
Beauty Brands | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Net Sales, Discontinued Operations | 1,159 | 4,910 | ||||||||||||
Cost of Products Sold, Discontinued Operations | 450 | 1,621 | ||||||||||||
Selling, General and Administrative Expense, Discontinued Operations | 783 | 2,763 | ||||||||||||
Goodwill and Intangible Asset Impairment | 0 | 48 | ||||||||||||
Interest Expense, Discontinued Operations | 14 | 32 | ||||||||||||
Interest Income, Discontinued Operations | 0 | 2 | ||||||||||||
Disposal Group, Including Discontinued Operation, Other Income | 16 | 9 | ||||||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, before Income Tax | (72) | 457 | ||||||||||||
Discontinued Operation, Tax Effect of Income (Loss) from Discontinued Operation During Phase-out Period | (46) | (121) | ||||||||||||
Gain on Disposition of Business, Before Income Taxes | 5,197 | 0 | ||||||||||||
Discontinued Operation, Tax (Expense) Benefit from Provision for (Gain) Loss on Disposal | (138) | [1] | 0 | |||||||||||
Net Earnings/(Loss) from Discontinued Operations | $ 5,300 | $ 5,217 | $ 336 | |||||||||||
|
DISCONTINUED OPERATIONS - CASH FLOWS FOR BEAUTY BRANDS (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Deferred Income Tax Expense (Benefit) | $ (1,844) | $ (601) | $ (815) |
Gain (Loss) on Disposition of Business | 176 | 5,490 | 41 |
Income Taxes Paid | $ 2,830 | 3,714 | 3,730 |
Beauty Brands | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Depreciation and Amortization, Discontinued Operations | 24 | 106 | |
Deferred Income Tax Expense (Benefit) | (649) | 0 | |
Gain (Loss) on Disposition of Business | 5,210 | 8 | |
Goodwill and Intangible Asset Impairment | 0 | 48 | |
Increase (Decrease) in Accrued Taxes Payable | 93 | 0 | |
Income Taxes Paid | 418 | 0 | |
Capital Expenditure, Discontinued Operations | $ 38 | $ 114 |
DISCONTINUED OPERATIONS - NET EARNINGS FROM DISCONTINUED OPERATIONS FOR BATTERIES (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Net Earnings/(Loss) from Discontinued Operations | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 5,335 | $ (118) | $ 0 | $ 5,217 | $ 577 | ||
Batteries | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Net Sales, Discontinued Operations | 1,517 | ||||||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, before Income Tax | 266 | ||||||||||||
Disposal Group, Including Discontinued Operation, Other Expense | (402) | ||||||||||||
Discontinued Operation, Tax Effect of Income (Loss) from Discontinued Operation During Phase-out Period | (45) | ||||||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | (288) | ||||||||||||
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | [1] | 710 | |||||||||||
Net Earnings/(Loss) from Discontinued Operations | $ 0 | $ 241 | |||||||||||
|
QUARTERLY RESULTS (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
||||||||||||||||||
Net Sales | $ 16,503 | $ 16,281 | $ 17,395 | $ 16,653 | $ 16,079 | $ 15,605 | $ 16,856 | $ 16,518 | $ 66,832 | $ 65,058 | $ 65,299 | |||||||||||||||||
Operating Income | $ 2,677 | $ 3,296 | $ 4,003 | $ 3,735 | $ 2,949 | $ 3,360 | $ 3,875 | $ 3,771 | $ 13,711 | $ 13,955 | 13,441 | |||||||||||||||||
Gross Margin Percent of Net Sales | 45.30% | 48.80% | 50.20% | 50.60% | 48.40% | 49.80% | 50.80% | 51.00% | 48.70% | 50.00% | ||||||||||||||||||
NET EARNINGS: | ||||||||||||||||||||||||||||
Net Earnings from Continuing Operations | $ 1,890 | $ 2,540 | $ 2,561 | $ 2,870 | $ 2,202 | $ 2,556 | $ 2,561 | $ 2,875 | $ 9,861 | $ 10,194 | 10,027 | |||||||||||||||||
Net Earnings/(Loss) from Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 5,335 | (118) | 0 | 5,217 | 577 | |||||||||||||||||
Net Earnings Attributable to Procter & Gamble | $ 1,891 | $ 2,511 | $ 2,495 | $ 2,853 | $ 2,215 | $ 2,522 | $ 7,875 | $ 2,714 | $ 9,750 | $ 15,326 | $ 10,508 | |||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE | ||||||||||||||||||||||||||||
Earnings from Continuing Operations, Per Diluted Share | $ 0.72 | [1] | $ 0.95 | [1] | $ 0.93 | [1] | $ 1.06 | [1] | $ 0.82 | [1] | $ 0.93 | [1] | $ 0.93 | [1] | $ 1.00 | [1] | $ 3.67 | [1],[2] | $ 3.69 | [1],[2] | $ 3.49 | [2] | ||||||
Earnings/(Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 1.95 | [1] | (0.04) | [1] | 0 | [1],[2] | 1.90 | [1],[2] | 0.20 | [2] | ||||||
Earnings Per Share, Diluted | $ 0.72 | [1] | $ 0.95 | [1] | $ 0.93 | [1] | $ 1.06 | [1] | $ 0.82 | [1] | $ 0.93 | [1] | $ 2.88 | [1] | $ 0.96 | [1] | $ 3.67 | [1],[2],[3] | $ 5.59 | [1],[2],[3] | $ 3.69 | [2],[3] | ||||||
|
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