☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2016 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from________ to________ . |
DELAWARE | 13-1815595 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
300 Park Avenue, New York, New York | 10022 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ☒ | Accelerated filer ☐ |
Non-accelerated filer ☐ | Smaller reporting company ☐ |
Class | Shares Outstanding | Date | ||
Common stock, $1.00 par value | 888,842,604 | September 30, 2016 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | $ | 3,867 | $ | 3,999 | $ | 11,474 | $ | 12,135 | |||||||
Cost of sales | 1,543 | 1,652 | 4,598 | 5,029 | |||||||||||
Gross profit | 2,324 | 2,347 | 6,876 | 7,106 | |||||||||||
Selling, general and administrative expenses | 1,322 | 1,347 | 3,996 | 4,178 | |||||||||||
Other (income) expense, net | (69 | ) | (136 | ) | (2 | ) | — | ||||||||
Operating profit | 1,071 | 1,136 | 2,882 | 2,928 | |||||||||||
Interest (income) expense, net | 25 | 5 | 78 | 19 | |||||||||||
Income before income taxes | 1,046 | 1,131 | 2,804 | 2,909 | |||||||||||
Provision for income taxes | 300 | 361 | 846 | 940 | |||||||||||
Net income including noncontrolling interests | 746 | 770 | 1,958 | 1,969 | |||||||||||
Less: Net income attributable to noncontrolling interests | 44 | 44 | 123 | 127 | |||||||||||
Net income attributable to Colgate-Palmolive Company | $ | 702 | $ | 726 | $ | 1,835 | $ | 1,842 | |||||||
Earnings per common share, basic | $ | 0.79 | $ | 0.81 | $ | 2.05 | $ | 2.04 | |||||||
Earnings per common share, diluted | $ | 0.78 | $ | 0.80 | $ | 2.04 | $ | 2.02 | |||||||
Dividends declared per common share * | $ | 0.39 | $ | 0.38 | $ | 1.55 | $ | 1.50 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income including noncontrolling interests | $ | 746 | $ | 770 | $ | 1,958 | $ | 1,969 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Cumulative translation adjustments | — | (350 | ) | 83 | (635 | ) | |||||||||
Retirement plans and other retiree benefit adjustments | 16 | 25 | 39 | 52 | |||||||||||
Gains (losses) on available-for-sale securities | (1 | ) | — | (1 | ) | (8 | ) | ||||||||
Gains (losses) on cash flow hedges | 1 | 7 | (3 | ) | 4 | ||||||||||
Total Other comprehensive income (loss), net of tax | 16 | (318 | ) | 118 | (587 | ) | |||||||||
Total Comprehensive income including noncontrolling interests | 762 | 452 | 2,076 | 1,382 | |||||||||||
Less: Net income attributable to noncontrolling interests | 44 | 44 | 123 | 127 | |||||||||||
Less: Cumulative translation adjustments attributable to noncontrolling interests | 2 | (9 | ) | (3 | ) | (9 | ) | ||||||||
Total Comprehensive income attributable to noncontrolling interests | 46 | 35 | 120 | 118 | |||||||||||
Total Comprehensive income attributable to Colgate-Palmolive Company | $ | 716 | $ | 417 | $ | 1,956 | $ | 1,264 |
September 30, 2016 | December 31, 2015 | ||||||
Assets | (A) | ||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 1,298 | $ | 970 | |||
Receivables (net of allowances of $66 and $59, respectively) | 1,560 | 1,427 | |||||
Inventories | 1,193 | 1,180 | |||||
Other current assets | 713 | 807 | |||||
Total current assets | 4,764 | 4,384 | |||||
Property, plant and equipment: | |||||||
Cost | 8,309 | 8,059 | |||||
Less: Accumulated depreciation | (4,472 | ) | (4,263 | ) | |||
3,837 | 3,796 | ||||||
Goodwill | 2,181 | 2,103 | |||||
Other intangible assets, net | 1,346 | 1,346 | |||||
Deferred income taxes | 261 | 67 | |||||
Other assets | 234 | 239 | |||||
Total assets | $ | 12,623 | $ | 11,935 | |||
Liabilities and Shareholders’ Equity | |||||||
Current Liabilities | |||||||
Notes and loans payable | $ | 3 | $ | 4 | |||
Current portion of long-term debt | 904 | 298 | |||||
Accounts payable | 1,076 | 1,110 | |||||
Accrued income taxes | 350 | 277 | |||||
Other accruals | 2,322 | 1,845 | |||||
Total current liabilities | 4,655 | 3,534 | |||||
Long-term debt | 5,616 | 6,246 | |||||
Deferred income taxes | 270 | 233 | |||||
Other liabilities | 1,854 | 1,966 | |||||
Total liabilities | 12,395 | 11,979 | |||||
Shareholders’ Equity | |||||||
Common stock | 1,466 | 1,466 | |||||
Additional paid-in capital | 1,654 | 1,438 | |||||
Retained earnings | 19,310 | 18,861 | |||||
Accumulated other comprehensive income (loss) | (3,829 | ) | (3,950 | ) | |||
Unearned compensation | (3 | ) | (12 | ) | |||
Treasury stock, at cost | (18,731 | ) | (18,102 | ) | |||
Total Colgate-Palmolive Company shareholders’ equity | (133 | ) | (299 | ) | |||
Noncontrolling interests | 361 | 255 | |||||
Total equity | 228 | (44 | ) | ||||
Total liabilities and equity | $ | 12,623 | $ | 11,935 |
Nine Months Ended | |||||||
September 30, | |||||||
2016 | 2015 | ||||||
Operating Activities | |||||||
Net income including noncontrolling interests | $ | 1,958 | $ | 1,969 | |||
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations: | |||||||
Depreciation and amortization | 329 | 337 | |||||
Restructuring and termination benefits, net of cash | (1 | ) | 68 | ||||
Venezuela remeasurement charge | — | 34 | |||||
Stock-based compensation expense | 102 | 104 | |||||
Gain on sale of land in Mexico | (97 | ) | — | ||||
Gain on sale of South Pacific laundry detergent business | — | (187 | ) | ||||
Deferred income taxes | 50 | (42 | ) | ||||
Voluntary benefit plan contribution | (53 | ) | — | ||||
Cash effects of changes in: | |||||||
Receivables | (126 | ) | (172 | ) | |||
Inventories | 4 | 1 | |||||
Accounts payable and other accruals | 101 | (18 | ) | ||||
Other non-current assets and liabilities | 50 | 14 | |||||
Net cash provided by operations | 2,317 | 2,108 | |||||
Investing Activities | |||||||
Capital expenditures | (392 | ) | (459 | ) | |||
Purchases of marketable securities and investments | (271 | ) | (499 | ) | |||
Proceeds from sale of marketable securities and investments | 158 | 398 | |||||
Proceeds from the sale of land in Mexico | 60 | — | |||||
Proceeds from sale of South Pacific laundry detergent business | — | 221 | |||||
Payment for acquisitions, net of cash acquired | — | (13 | ) | ||||
Other | — | 8 | |||||
Net cash used in investing activities | (445 | ) | (344 | ) | |||
Financing Activities | |||||||
Principal payments on debt | (5,446 | ) | (6,691 | ) | |||
Proceeds from issuance of debt | 5,447 | 7,293 | |||||
Dividends paid | (1,053 | ) | (1,033 | ) | |||
Purchases of treasury shares | (913 | ) | (1,196 | ) | |||
Proceeds from exercise of stock options and excess tax benefits | 418 | 301 | |||||
Net cash used in financing activities | (1,547 | ) | (1,326 | ) | |||
Effect of exchange rate changes on Cash and cash equivalents | 3 | (82 | ) | ||||
Net increase in Cash and cash equivalents | 328 | 356 | |||||
Cash and cash equivalents at beginning of the period | 970 | 1,089 | |||||
Cash and cash equivalents at end of the period | $ | 1,298 | $ | 1,445 | |||
Supplemental Cash Flow Information | |||||||
Income taxes paid | $ | 696 | $ | 967 |
1. | Basis of Presentation |
2. | Use of Estimates |
3. | Recent Accounting Pronouncements |
4. | Acquisitions and Divestitures |
5. | Restructuring and Related Implementation Charges |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Cost of sales | $ | 11 | $ | 3 | $ | 31 | $ | 11 | |||||||
Selling, general and administrative expenses | 9 | 15 | 49 | 44 | |||||||||||
Other (income) expense, net | 22 | 28 | 76 | 143 | |||||||||||
Total 2012 Restructuring Program charges, pretax | $ | 42 | $ | 46 | $ | 156 | $ | 198 | |||||||
Total 2012 Restructuring Program charges, aftertax | $ | 32 | $ | 35 | $ | 114 | $ | 142 |
Three Months Ended | Nine Months Ended | Program-to-date | ||||||||||||
September 30, | September 30, | Accumulated Charges | ||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||
North America | 30 | % | 21 | % | 32 | % | 17 | % | 15 | % | ||||
Latin America | 3 | % | 7 | % | 5 | % | 3 | % | 4 | % | ||||
Europe (1) | 19 | % | 17 | % | 10 | % | 12 | % | 22 | % | ||||
Asia Pacific (1) | 4 | % | — | % | 6 | % | 4 | % | 3 | % | ||||
Africa/Eurasia | 12 | % | 5 | % | 14 | % | 4 | % | 6 | % | ||||
Hill’s Pet Nutrition | 5 | % | (3 | )% | 8 | % | 5 | % | 8 | % | ||||
Corporate | 27 | % | 53 | % | 25 | % | 55 | % | 42 | % |
Cumulative Charges | |||
as of September 30, 2016 | |||
Employee-Related Costs | $ | 452 | |
Incremental Depreciation | 77 | ||
Asset Impairments | 15 | ||
Other | 612 | ||
Total | $ | 1,156 |
Three Months Ended September 30, 2016 | ||||||||||||||||||||
Employee-Related Costs | Incremental Depreciation | Asset Impairments | Other | Total | ||||||||||||||||
Balance at June 30, 2016 | $ | 76 | $ | — | $ | — | $ | 141 | $ | 217 | ||||||||||
Charges | 14 | 3 | 5 | 20 | 42 | |||||||||||||||
Cash payments | (17 | ) | — | — | (35 | ) | (52 | ) | ||||||||||||
Charges against assets | (1 | ) | (3 | ) | (5 | ) | — | (9 | ) | |||||||||||
Foreign exchange | — | — | — | — | — | |||||||||||||||
Balance at September 30, 2016 | $ | 72 | $ | — | $ | — | $ | 126 | $ | 198 |
Nine Months Ended September 30, 2016 | ||||||||||||||||||||
Employee-Related Costs | Incremental Depreciation | Asset Impairments | Other | Total | ||||||||||||||||
Balance at December 31, 2015 | $ | 84 | $ | — | $ | — | $ | 131 | $ | 215 | ||||||||||
Charges | 48 | 6 | 8 | 94 | 156 | |||||||||||||||
Cash payments | (58 | ) | — | — | (99 | ) | (157 | ) | ||||||||||||
Charges against assets | (3 | ) | (6 | ) | (8 | ) | — | (17 | ) | |||||||||||
Foreign exchange | 1 | — | — | — | 1 | |||||||||||||||
Balance at September 30, 2016 | $ | 72 | $ | — | $ | — | $ | 126 | $ | 198 |
6. | Inventories |
September 30, 2016 | December 31, 2015 | ||||||
Raw materials and supplies | $ | 259 | $ | 261 | |||
Work-in-process | 44 | 45 | |||||
Finished goods | 890 | 874 | |||||
Total Inventories | $ | 1,193 | $ | 1,180 |
Colgate-Palmolive Company Shareholders’ Equity | Noncontrolling Interests | ||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Unearned Compensation | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||
Balance, December 31, 2015 | $ | 1,466 | $ | 1,438 | $ | (12 | ) | $ | (18,102 | ) | $ | 18,861 | $ | (3,950 | ) | $ | 255 | ||||||||||
Net income | 1,835 | 123 | |||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 121 | (3 | ) | ||||||||||||||||||||||||
Dividends | (1,386 | ) | (14 | ) | |||||||||||||||||||||||
Stock-based compensation expense | 102 | ||||||||||||||||||||||||||
Shares issued for stock options | 119 | 227 | |||||||||||||||||||||||||
Shares issued for restricted stock units | (57 | ) | 57 | ||||||||||||||||||||||||
Treasury stock acquired | (913 | ) | |||||||||||||||||||||||||
Other | 52 | 9 | |||||||||||||||||||||||||
Balance, September 30, 2016 | $ | 1,466 | $ | 1,654 | $ | (3 | ) | $ | (18,731 | ) | $ | 19,310 | $ | (3,829 | ) | $ | 361 |
8. | Earnings Per Share |
Three Months Ended | |||||||||||||||||||||
September 30, 2016 | September 30, 2015 | ||||||||||||||||||||
Net income attributable to Colgate-Palmolive Company | Shares (millions) | Per Share | Net income attributable to Colgate-Palmolive Company | Shares (millions) | Per Share | ||||||||||||||||
Basic EPS | $ | 702 | 891.9 | $ | 0.79 | $ | 726 | 900.1 | $ | 0.81 | |||||||||||
Stock options and restricted stock units | 7.3 | 6.8 | |||||||||||||||||||
Diluted EPS | $ | 702 | 899.2 | $ | 0.78 | $ | 726 | 906.9 | $ | 0.80 |
Nine Months Ended | |||||||||||||||||||||
September 30, 2016 | September 30, 2015 | ||||||||||||||||||||
Net income attributable to Colgate-Palmolive Company | Shares (millions) | Per Share | Net income attributable to Colgate-Palmolive Company | Shares (millions) | Per Share | ||||||||||||||||
Basic EPS | $ | 1,835 | 893.2 | $ | 2.05 | $ | 1,842 | 904.1 | $ | 2.04 | |||||||||||
Stock options and restricted stock units | 7.0 | 7.7 | |||||||||||||||||||
Diluted EPS | $ | 1,835 | 900.2 | $ | 2.04 | $ | 1,842 | 911.8 | $ | 2.02 |
9. | Other Comprehensive Income (Loss) |
2016 | 2015 | |||||||||||||||
Pretax | Net of Tax | Pretax | Net of Tax | |||||||||||||
Cumulative translation adjustments | $ | (10 | ) | $ | (2 | ) | $ | (352 | ) | $ | (341 | ) | ||||
Retirement plans and other retiree benefits: | ||||||||||||||||
Net actuarial gain (loss) and prior service costs arising during the period | 9 | 7 | 14 | 9 | ||||||||||||
Amortization of net actuarial loss, transition and prior service costs (1) | 15 | 9 | 22 | 16 | ||||||||||||
Retirement plans and other retiree benefits adjustments | 24 | 16 | 36 | 25 | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Unrealized gains (losses) on available-for-sale securities | — | — | (7 | ) | (5 | ) | ||||||||||
Reclassification of (gains) losses into net earnings on available-for-sale securities | (1 | ) | (1 | ) | 7 | 5 | ||||||||||
Gains (losses) on available-for-sale securities | (1 | ) | (1 | ) | — | — | ||||||||||
Cash flow hedges: | ||||||||||||||||
Unrealized gains (losses) on cash flow hedges | 1 | — | 16 | 11 | ||||||||||||
Reclassification of (gains) losses into net earnings on cash flow hedges (2) | 1 | 1 | (5 | ) | (4 | ) | ||||||||||
Gains (losses) on cash flow hedges | 2 | 1 | 11 | 7 | ||||||||||||
Total Other comprehensive income (loss) | $ | 15 | $ | 14 | $ | (305 | ) | $ | (309 | ) |
2016 | 2015 | |||||||||||||||
Pretax | Net of Tax | Pretax | Net of Tax | |||||||||||||
Cumulative translation adjustments | $ | 76 | $ | 86 | $ | (628 | ) | $ | (626 | ) | ||||||
Retirement plans and other retiree benefits: | ||||||||||||||||
Net actuarial gain (loss) and prior service costs arising during the period | 9 | 7 | 13 | 8 | ||||||||||||
Amortization of net actuarial loss, transition and prior service costs (1) | 47 | 32 | 66 | 44 | ||||||||||||
Retirement plans and other retiree benefits adjustments | 56 | 39 | 79 | 52 | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Unrealized gains (losses) on available-for-sale securities | — | — | (27 | ) | (18 | ) | ||||||||||
Reclassification of (gains) losses into net earnings on available-for-sale securities | (1 | ) | (1 | ) | 14 | 10 | ||||||||||
Gains (losses) on available-for-sale securities | (1 | ) | (1 | ) | (13 | ) | (8 | ) | ||||||||
Cash flow hedges: | ||||||||||||||||
Unrealized gains (losses) on cash flow hedges | (6 | ) | (4 | ) | 17 | 12 | ||||||||||
Reclassification of (gains) losses into net earnings on cash flow hedges (2) | 1 | 1 | (12 | ) | (8 | ) | ||||||||||
Gains (losses) on cash flow hedges | (5 | ) | (3 | ) | 5 | 4 | ||||||||||
Total Other comprehensive income (loss) | $ | 126 | $ | 121 | $ | (557 | ) | $ | (578 | ) |
10. | Retirement Plans and Other Retiree Benefits |
Pension Benefits | Other Retiree Benefits | ||||||||||||||||||||||
United States | International | ||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | 4 | $ | 4 | $ | 4 | $ | 5 | |||||||||||
Interest cost | 27 | 25 | 7 | 6 | 10 | 11 | |||||||||||||||||
ESOP offset | — | — | — | — | — | — | |||||||||||||||||
Expected return on plan assets | (27 | ) | (29 | ) | (6 | ) | (6 | ) | — | (1 | ) | ||||||||||||
Amortization of transition and prior service costs (credits) | — | — | — | 1 | — | — | |||||||||||||||||
Amortization of actuarial loss (gain) | 10 | 12 | 2 | 3 | 3 | 6 | |||||||||||||||||
Net periodic benefit cost | $ | 10 | $ | 8 | $ | 7 | $ | 8 | $ | 17 | $ | 21 |
Pension Benefits | Other Retiree Benefits | ||||||||||||||||||||||
United States | International | ||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 12 | $ | 14 | $ | 10 | $ | 13 | |||||||||||
Interest cost | 80 | 75 | 19 | 21 | 32 | 34 | |||||||||||||||||
ESOP offset | — | — | — | — | (1 | ) | (1 | ) | |||||||||||||||
Expected return on plan assets | (82 | ) | (87 | ) | (17 | ) | (20 | ) | — | (2 | ) | ||||||||||||
Amortization of transition and prior service costs (credits) | — | — | — | 2 | — | — | |||||||||||||||||
Amortization of actuarial loss (gain) | 30 | 36 | 6 | 8 | 11 | 20 | |||||||||||||||||
Net periodic benefit cost | $ | 29 | $ | 25 | $ | 20 | $ | 25 | $ | 52 | $ | 64 |
11. | Income Taxes |
12. | Contingencies |
▪ | In December 2014, the French competition law authority found that 13 consumer goods companies, including the Company’s French subsidiary, exchanged competitively sensitive information related to the French home care and personal care sectors, for which the Company’s French subsidiary was fined $57. In addition, as a result of the Company’s acquisition of the Sanex personal care business in 2011 from Unilever N.V. and Unilever PLC (together with Unilever N.V., “Unilever”) pursuant to a Business and Share Sale and Purchase Agreement (the “Sale and Purchase Agreement”), the French competition law authority found that the Company’s French subsidiary, along with Hillshire Brands Company (formerly Sara Lee Corporation (“Sara Lee”)), were jointly and severally liable for fines of $25 assessed against Sara Lee’s French subsidiary. The Company is entitled to indemnification for this fine from Unilever as provided in the Sale and Purchase Agreement. The Company is appealing both fines in the French courts. |
▪ | In July 2014, the Greek competition law authority issued a statement of objections alleging a restriction of parallel imports into Greece. The Company has responded to this statement of objections. |
▪ | In December 2009, the Swiss competition law authority imposed a fine of $6 on the Company’s GABA subsidiary for alleged violations of restrictions on parallel imports into Switzerland, which the Company appealed. In January 2014, this appeal was denied. The Company had appealed before the Swiss Supreme Court, but its appeal was denied in June 2016. |
▪ | In December 2010, the Italian competition law authority found that 16 consumer goods companies, including the Company’s Italian subsidiary, exchanged competitively sensitive information in the cosmetics sector, for which the Company’s Italian subsidiary was fined $3. The Company had appealed the fine in the Italian courts, but has decided not to further pursue its appeal. |
13. | Segment Information |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | |||||||||||||||
Oral, Personal and Home Care | |||||||||||||||
North America | $ | 800 | $ | 791 | $ | 2,393 | $ | 2,360 | |||||||
Latin America | 924 | 1,064 | 2,710 | 3,277 | |||||||||||
Europe | 609 | 617 | 1,803 | 1,829 | |||||||||||
Asia Pacific | 723 | 735 | 2,163 | 2,279 | |||||||||||
Africa/Eurasia | 250 | 246 | 720 | 754 | |||||||||||
Total Oral, Personal and Home Care | 3,306 | 3,453 | 9,789 | 10,499 | |||||||||||
Pet Nutrition | 561 | 546 | 1,685 | 1,636 | |||||||||||
Total Net sales | $ | 3,867 | $ | 3,999 | $ | 11,474 | $ | 12,135 | |||||||
Operating profit | |||||||||||||||
Oral, Personal and Home Care | |||||||||||||||
North America | $ | 273 | $ | 258 | $ | 762 | $ | 699 | |||||||
Latin America | 298 | 300 | 829 | 929 | |||||||||||
Europe | 158 | 172 | 437 | 466 | |||||||||||
Asia Pacific | 230 | 229 | 668 | 676 | |||||||||||
Africa/Eurasia | 50 | 44 | 138 | 128 | |||||||||||
Total Oral, Personal and Home Care | 1,009 | 1,003 | 2,834 | 2,898 | |||||||||||
Pet Nutrition | 162 | 157 | 479 | 450 | |||||||||||
Corporate | (100 | ) | (24 | ) | (431 | ) | (420 | ) | |||||||
Total Operating profit | $ | 1,071 | $ | 1,136 | $ | 2,882 | $ | 2,928 |
14. | Fair Value Measurements and Financial Instruments |
Assets | Liabilities | ||||||||||||||||||
Account | Fair Value | Account | Fair Value | ||||||||||||||||
Designated derivative instruments | 9/30/16 | 12/31/15 | 9/30/16 | 12/31/15 | |||||||||||||||
Interest rate swap contracts | Other current assets | $ | 2 | $ | — | Other accruals | $ | — | $ | — | |||||||||
Interest rate swap contracts | Other assets | 7 | 7 | Other liabilities | — | — | |||||||||||||
Foreign currency contracts | Other current assets | 92 | 131 | Other accruals | 24 | 5 | |||||||||||||
Foreign currency contracts | Other assets | — | — | Other liabilities | — | — | |||||||||||||
Commodity contracts | Other current assets | — | — | Other accruals | 1 | — | |||||||||||||
Total designated | $ | 101 | $ | 138 | $ | 25 | $ | 5 | |||||||||||
Derivatives not designated | |||||||||||||||||||
Foreign currency contracts | Other assets | $ | — | $ | 13 | Other liabilities | $ | — | $ | — | |||||||||
Total not designated | $ | — | $ | 13 | $ | — | $ | — | |||||||||||
Total derivative instruments | $ | 101 | $ | 151 | $ | 25 | $ | 5 | |||||||||||
Other financial instruments | |||||||||||||||||||
Marketable securities | Other current assets | $ | 188 | $ | 61 | ||||||||||||||
Total other financial instruments | $ | 188 | $ | 61 |
2016 | 2015 | ||||||||||||||||||||||
Foreign Currency Contracts | Interest Rate Swaps | Total | Foreign Currency Contracts | Interest Rate Swaps | Total | ||||||||||||||||||
Notional Value at September 30, | $ | 239 | $ | 1,250 | $ | 1,489 | $ | 899 | $ | 1,438 | $ | 2,337 | |||||||||||
Three months ended September 30, | |||||||||||||||||||||||
Gain (loss) on derivatives | 1 | (6 | ) | (5 | ) | (1 | ) | 7 | 6 | ||||||||||||||
Gain (loss) on hedged items | (1 | ) | 6 | 5 | 1 | (7 | ) | (6 | ) | ||||||||||||||
Nine months ended September 30, | |||||||||||||||||||||||
Gain (loss) on derivatives | (4 | ) | 3 | (1 | ) | (4 | ) | 9 | 5 | ||||||||||||||
Gain (loss) on hedged items | 4 | (3 | ) | 1 | 4 | (9 | ) | (5 | ) |
2016 | 2015 | ||||||||||||||||||||||
Foreign Currency Contracts | Commodity Contracts | Total | Foreign Currency Contracts | Commodity Contracts | Total | ||||||||||||||||||
Notional Value at September 30, | $ | 690 | $ | 8 | $ | 698 | $ | 735 | $ | 10 | $ | 745 | |||||||||||
Three months ended September 30, | |||||||||||||||||||||||
Gain (loss) recognized in OCI | 3 | (2 | ) | 1 | 17 | (1 | ) | 16 | |||||||||||||||
Gain (loss) reclassified into Cost of sales | (1 | ) | — | (1 | ) | 5 | — | 5 | |||||||||||||||
Nine months ended September 30, | |||||||||||||||||||||||
Gain (loss) recognized in OCI | (6 | ) | — | (6 | ) | 18 | (1 | ) | 17 | ||||||||||||||
Gain (loss) reclassified into Cost of sales | (1 | ) | — | (1 | ) | 13 | (1 | ) | 12 |
2016 | 2015 | ||||||||||||||||||||||
Foreign Currency Contracts | Foreign Currency Debt | Total | Foreign Currency Contracts | Foreign Currency Debt | Total | ||||||||||||||||||
Notional Value at September 30, | $ | 917 | $ | 1,190 | $ | 2,107 | $ | 729 | $ | 800 | $ | 1,529 | |||||||||||
Three months ended September 30, | |||||||||||||||||||||||
Gain (loss) on instruments | (4 | ) | (13 | ) | (17 | ) | 31 | (2 | ) | 29 | |||||||||||||
Gain (loss) on hedged items | 4 | 13 | 17 | (32 | ) | 2 | (30 | ) | |||||||||||||||
Nine months ended September 30, | |||||||||||||||||||||||
Gain (loss) on instruments | (20 | ) | (36 | ) | (56 | ) | 64 | 23 | 87 | ||||||||||||||
Gain (loss) on hedged items | 20 | 36 | 56 | (65 | ) | (23 | ) | (88 | ) |
2016 | 2015 | |||||||
Foreign Currency Contracts | Foreign Currency Contracts | |||||||
Notional Value at September 30, | $ | 6 | $ | 102 | ||||
Three months ended September 30, | ||||||||
Gain (loss) on instruments | — | 9 | ||||||
Gain (loss) on hedged items | — | (3 | ) | |||||
Nine months ended September 30, | ||||||||
Gain (loss) on instruments | 5 | 9 | ||||||
Gain (loss) on hedged items | (5 | ) | (2 | ) |
▪ | Expanding Commercial Hubs |
▪ | Extending Shared Business Services and Streamlining Global Functions |
▪ | Optimizing Global Supply Chain and Facilities |
Three Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Gross profit, GAAP | $ | 2,324 | $ | 2,347 | ||||
2012 Restructuring Program | 11 | 3 | ||||||
Gross profit, non-GAAP | $ | 2,335 | $ | 2,350 |
Three Months Ended September 30, | |||||||||
2016 | 2015 | Basis Point Change | |||||||
Gross profit margin, GAAP | 60.1 | % | 58.7 | % | 140 | ||||
2012 Restructuring Program | 0.3 | 0.1 | |||||||
Gross profit margin, non-GAAP | 60.4 | % | 58.8 | % | 160 |
Three Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Selling, general and administrative expenses, GAAP | $ | 1,322 | $ | 1,347 | ||||
2012 Restructuring Program | (9 | ) | (15 | ) | ||||
Selling, general and administrative expenses, non-GAAP | $ | 1,313 | $ | 1,332 |
Three Months Ended September 30, | ||||||||
2016 | 2015 | Basis Point Change | ||||||
Selling, general and administrative expenses as a percentage of Net sales, GAAP | 34.2 | % | 33.7 | % | 50 | |||
2012 Restructuring Program | (0.2 | ) | (0.4 | ) | ||||
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP | 34.0 | % | 33.3 | % | 70 |
Three Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Other (income) expense, net, GAAP | $ | (69 | ) | $ | (136 | ) | ||
2012 Restructuring Program | (22 | ) | (28 | ) | ||||
Gain on sale of land in Mexico | 97 | — | ||||||
Charge for a previously disclosed litigation matter | (6 | ) | — | |||||
Venezuela remeasurement charge | — | (18 | ) | |||||
Gain on sale of South Pacific laundry detergent business | — | 187 | ||||||
Other (income) expense, net, non-GAAP | $ | — | $ | 5 |
Three Months Ended September 30, | |||||||||||
2016 | 2015 | % Change | |||||||||
Operating profit, GAAP | $ | 1,071 | $ | 1,136 | (6 | )% | |||||
2012 Restructuring Program | 42 | 46 | |||||||||
Gain on sale of land in Mexico | (97 | ) | — | ||||||||
Charge for a previously disclosed litigation matter | 6 | — | |||||||||
Venezuela remeasurement charge | — | 18 | |||||||||
Gain on sale of South Pacific laundry detergent business | — | (187 | ) | ||||||||
Operating profit, non-GAAP | $ | 1,022 | $ | 1,013 | 1 | % |
Three Months Ended September 30, | |||||||||
2016 | 2015 | Basis Point Change | |||||||
Operating profit margin, GAAP | 27.7 | % | 28.4 | % | (70 | ) | |||
2012 Restructuring Program | 1.1 | 1.1 | |||||||
Gain on sale of land in Mexico | (2.5 | ) | — | ||||||
Charge for a previously disclosed litigation matter | 0.1 | — | |||||||
Venezuela remeasurement charge | — | 0.5 | |||||||
Gain on sale of South Pacific laundry detergent business | — | (4.7 | ) | ||||||
Operating profit margin, non-GAAP | 26.4 | % | 25.3 | % | 110 |
Three Months Ended September 30, 2016 | |||||||||||||||||||
Income Before Income Taxes | Provision For Income Taxes(1) | Net Income Including Noncontrolling Interests | Net Income Attributable To Colgate-Palmolive Company | Diluted Earnings Per Share(2) | |||||||||||||||
As Reported GAAP | $ | 1,046 | $ | 300 | $ | 746 | $ | 702 | $ | 0.78 | |||||||||
2012 Restructuring Program | 42 | 10 | 32 | 32 | 0.04 | ||||||||||||||
Gain on sale of land in Mexico | (97 | ) | (34 | ) | (63 | ) | (63 | ) | (0.07 | ) | |||||||||
Benefits from previously disclosed tax matters | — | 22 | (22 | ) | (22 | ) | (0.02 | ) | |||||||||||
Charge for a previously disclosed litigation matter | 6 | 2 | 4 | 4 | — | ||||||||||||||
Non-GAAP | $ | 997 | $ | 300 | $ | 697 | $ | 653 | $ | 0.73 |
Three Months Ended September 30, 2015 | |||||||||||||||||||
Income Before Income Taxes | Provision For Income Taxes(1) | Net Income Including Noncontrolling Interests | Net Income Attributable To Colgate-Palmolive Company | Diluted Earnings Per Share(2) | |||||||||||||||
As Reported GAAP | $ | 1,131 | $ | 361 | $ | 770 | $ | 726 | $ | 0.80 | |||||||||
2012 Restructuring Program | 46 | 11 | 35 | 35 | 0.04 | ||||||||||||||
Venezuela remeasurement charge | 18 | 6 | 12 | 12 | 0.01 | ||||||||||||||
Gain on sale of South Pacific laundry detergent business | (187 | ) | (67 | ) | (120 | ) | (120 | ) | (0.13 | ) | |||||||||
Non-GAAP | $ | 1,008 | $ | 311 | $ | 697 | $ | 653 | $ | 0.72 |
Three Months Ended September 30, | |||||||||||
2016 | 2015 | Change | |||||||||
Net sales | $ | 800 | $ | 791 | 1.0 | % | |||||
Operating profit | $ | 273 | $ | 258 | 6 | % | |||||
% of Net sales | 34.1 | % | 32.6 | % | 150 | bps |
Three Months Ended September 30, | |||||||||||
2016 | 2015 | Change | |||||||||
Net sales | $ | 924 | $ | 1,064 | (13.0 | ) | % | ||||
Operating profit | $ | 298 | $ | 300 | (1 | ) | % | ||||
% of Net sales | 32.3 | % | 28.2 | % | 410 | bps |
Three Months Ended September 30, | |||||||||||
2016 | 2015 | Change | |||||||||
Net sales | $ | 609 | $ | 617 | (1.5 | ) | % | ||||
Operating profit | $ | 158 | $ | 172 | (8 | ) | % | ||||
% of Net sales | 25.9 | % | 27.9 | % | (200 | ) | bps |
Three Months Ended September 30, | |||||||||||
2016 | 2015 | Change | |||||||||
Net sales | $ | 723 | $ | 735 | (1.5 | ) | % | ||||
Operating profit | $ | 230 | $ | 229 | — | % | |||||
% of Net sales | 31.8 | % | 31.2 | % | 60 | bps |
Three Months Ended September 30, | |||||||||||
2016 | 2015 | Change | |||||||||
Net sales | $ | 250 | $ | 246 | 1.5 | % | |||||
Operating profit | $ | 50 | $ | 44 | 14 | % | |||||
% of Net sales | 20.0 | % | 17.9 | % | 210 | bps |
Three Months Ended September 30, | |||||||||||
2016 | 2015 | Change | |||||||||
Net sales | $ | 561 | $ | 546 | 2.5 | % | |||||
Operating profit | $ | 162 | $ | 157 | 3 | % | |||||
% of Net sales | 28.9 | % | 28.8 | % | 10 | bps |
Three Months Ended September 30, | ||||||||||
2016 | 2015 | Change | ||||||||
Operating profit (loss) | $ | (100 | ) | $ | (24 | ) | 317 | % |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Net sales | |||||||
Oral, Personal and Home Care | |||||||
North America | $ | 2,393 | $ | 2,360 | |||
Latin America | 2,710 | 3,277 | |||||
Europe | 1,803 | 1,829 | |||||
Asia Pacific | 2,163 | 2,279 | |||||
Africa/Eurasia | 720 | 754 | |||||
Total Oral, Personal and Home Care | 9,789 | 10,499 | |||||
Pet Nutrition | 1,685 | 1,636 | |||||
Total Net sales | $ | 11,474 | $ | 12,135 | |||
Operating profit | |||||||
Oral, Personal and Home Care | |||||||
North America | $ | 762 | $ | 699 | |||
Latin America | 829 | 929 | |||||
Europe | 437 | 466 | |||||
Asia Pacific | 668 | 676 | |||||
Africa/Eurasia | 138 | 128 | |||||
Total Oral, Personal and Home Care | 2,834 | 2,898 | |||||
Pet Nutrition | 479 | 450 | |||||
Corporate | (431 | ) | (420 | ) | |||
Total Operating profit | $ | 2,882 | $ | 2,928 |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Gross profit, GAAP | $ | 6,876 | $ | 7,106 | ||||
2012 Restructuring Program | 31 | 11 | ||||||
Gross profit, non-GAAP | $ | 6,907 | $ | 7,117 |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | Basis Point Change | ||||||
Gross profit margin, GAAP | 59.9 | % | 58.6 | % | 130 | |||
2012 Restructuring Program | 0.3 | — | ||||||
Gross profit margin, non-GAAP | 60.2 | % | 58.6 | % | 160 |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Selling, general and administrative expenses, GAAP | $ | 3,996 | $ | 4,178 | ||||
2012 Restructuring Program | (49 | ) | (44 | ) | ||||
Selling, general and administrative expenses, non-GAAP | $ | 3,947 | $ | 4,134 |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | Basis Point Change | ||||||
Selling, general and administrative expenses as a percentage of Net sales, GAAP | 34.8 | % | 34.4 | % | 40 | |||
2012 Restructuring Program | (0.4 | ) | (0.3 | ) | ||||
Selling, general and administrative expenses as a percentage of Net sales, non- GAAP | 34.4 | % | 34.1 | % | 30 |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Other (income) expense, net, GAAP | $ | (2 | ) | $ | — | |||
2012 Restructuring Program | (76 | ) | (143 | ) | ||||
Gain on sale of land in Mexico | 97 | — | ||||||
Charge for a previously disclosed litigation matter | (6 | ) | — | |||||
Venezuela remeasurement charges | — | (34 | ) | |||||
Gain on sale of South Pacific laundry detergent business | — | 187 | ||||||
Other (income) expense, net, non-GAAP | $ | 13 | $ | 10 |
Nine Months Ended September 30, | |||||||||||
2016 | 2015 | % Change | |||||||||
Operating profit, GAAP | $ | 2,882 | $ | 2,928 | (2 | )% | |||||
2012 Restructuring Program | 156 | 198 | |||||||||
Gain on sale of land in Mexico | (97 | ) | — | ||||||||
Charge for a previously disclosed litigation matter | 6 | — | |||||||||
Venezuela remeasurement charges | — | 34 | |||||||||
Gain on sale of South Pacific laundry detergent business | — | (187 | ) | ||||||||
Operating profit, non-GAAP | $ | 2,947 | $ | 2,973 | (1 | )% |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | Basis Point Change | ||||||
Operating profit margin, GAAP | 25.1 | % | 24.1 | % | 100 | |||
2012 Restructuring Program | 1.4 | 1.6 | ||||||
Gain on sale of land in Mexico | (0.8 | ) | — | |||||
Charge for a previously disclosed litigation matter | — | — | ||||||
Venezuela remeasurement charges | — | 0.3 | ||||||
Gain on sale of South Pacific laundry detergent business | — | (1.5 | ) | |||||
Operating profit margin, non-GAAP | 25.7 | % | 24.5 | % | 120 |
Three Months Ended September 30, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
Income Before Income Taxes | Provision For Income Taxes(1) | Effective Income Tax Rate (2) | Income Before Income Taxes | Provision For Income Taxes(1) | Effective Income Tax Rate (2) | |||||||||||||||||
As Reported GAAP | $ | 1,046 | $ | 300 | 28.7 | % | $ | 1,131 | $ | 361 | 31.9 | % | ||||||||||
2012 Restructuring Program | 42 | 10 | (0.2 | )% | 46 | 11 | (0.3 | )% | ||||||||||||||
Gain on sale of land in Mexico | (97 | ) | (34 | ) | (0.6 | )% | — | — | — | % | ||||||||||||
Benefits from previously disclosed tax matters | — | 22 | 2.2 | % | — | — | — | % | ||||||||||||||
Charge for a previously disclosed litigation matter | 6 | 2 | — | % | — | — | — | % | ||||||||||||||
Venezuela remeasurement charge | — | — | — | % | 18 | 6 | 0.1 | % | ||||||||||||||
Gain on sale of South Pacific laundry detergent business | — | — | — | % | (187 | ) | (67 | ) | (0.8 | )% | ||||||||||||
Non-GAAP | $ | 997 | $ | 300 | 30.1 | % | $ | 1,008 | $ | 311 | 30.9 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
Income Before Income Taxes | Provision For Income Taxes(1) | Effective Income Tax Rate (2) | Income Before Income Taxes | Provision For Income Taxes(1) | Effective Income Tax Rate (2) | |||||||||||||||||
As Reported GAAP | $ | 2,804 | $ | 846 | 30.2 | % | $ | 2,909 | $ | 940 | 32.3 | % | ||||||||||
2012 Restructuring Program | 156 | 41 | (0.2 | )% | 198 | 54 | (0.3 | )% | ||||||||||||||
Gain on sale of land in Mexico | (97 | ) | (34 | ) | (0.2 | )% | — | — | — | % | ||||||||||||
Benefits (charge) from previously disclosed tax matters | — | 35 | 1.2 | % | — | (15 | ) | (0.5 | )% | |||||||||||||
Charge for a previously disclosed litigation matter | 6 | 2 | — | % | — | — | — | % | ||||||||||||||
Venezuela remeasurement charges | — | — | — | % | 34 | 12 | — | % | ||||||||||||||
Gain on sale of South Pacific laundry detergent business | — | — | — | % | (187 | ) | (67 | ) | (0.2 | )% | ||||||||||||
Non-GAAP | $ | 2,869 | $ | 890 | 31.0 | % | $ | 2,954 | $ | 924 | 31.3 | % |
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||
Income Before Income Taxes | Provision For Income Taxes(1) | Net Income Including Noncontrolling Interests | Less: Income Attributable To Noncontrolling Interests | Net Income Attributable To Colgate-Palmolive Company | Diluted Earnings Per Share(2) | ||||||||||||||||||
As Reported GAAP | $ | 2,804 | $ | 846 | $ | 1,958 | $ | 123 | $ | 1,835 | $ | 2.04 | |||||||||||
2012 Restructuring Program | 156 | 41 | 115 | 1 | 114 | 0.13 | |||||||||||||||||
Gain on sale of land in Mexico | (97 | ) | (34 | ) | (63 | ) | — | (63 | ) | (0.07 | ) | ||||||||||||
Benefits from previously disclosed tax matters | — | 35 | (35 | ) | — | (35 | ) | (0.04 | ) | ||||||||||||||
Charge for a previously disclosed litigation matter | 6 | 2 | 4 | — | 4 | — | |||||||||||||||||
Non-GAAP | $ | 2,869 | $ | 890 | $ | 1,979 | $ | 124 | $ | 1,855 | $ | 2.06 |
Nine Months Ended September 30, 2015 | |||||||||||||||||||||||
Income Before Income Taxes | Provision For Income Taxes(1) | Net Income Including Noncontrolling Interests | Less: Income Attributable To Noncontrolling Interests | Net Income Attributable To Colgate-Palmolive Company | Diluted Earnings Per Share(2) | ||||||||||||||||||
As Reported GAAP | $ | 2,909 | $ | 940 | $ | 1,969 | $ | 127 | $ | 1,842 | $ | 2.02 | |||||||||||
2012 Restructuring Program | 198 | 54 | 144 | 2 | 142 | 0.15 | |||||||||||||||||
Venezuela remeasurement charges | 34 | 12 | 22 | — | 22 | 0.02 | |||||||||||||||||
Charge for a foreign tax matter | — | (15 | ) | 15 | — | 15 | 0.02 | ||||||||||||||||
Gain on sale of South Pacific laundry detergent business | (187 | ) | (67 | ) | (120 | ) | — | (120 | ) | (0.13 | ) | ||||||||||||
Non-GAAP | $ | 2,954 | $ | 924 | $ | 2,030 | $ | 129 | $ | 1,901 | $ | 2.08 |
▪ | Becoming even stronger on the ground through the continued evolution and expansion of proven global and regional commercial capabilities, which have already been successfully implemented in a number of the Company’s operations around the world. |
▪ | Simplifying and standardizing how work gets done by increasing technology-enabled collaboration and taking advantage of global data and analytic capabilities, leading to smarter and faster decisions. |
▪ | Reducing structural costs to continue to increase the Company’s gross and operating profit. |
▪ | Building on Colgate’s current position of strength to enhance its leading market share positions worldwide and ensure sustained sales and earnings growth. |
▪ | Expanding Commercial Hubs – Building on the success of this structure already implemented in several divisions, continuing to cluster single-country subsidiaries into more efficient regional hubs, in order to drive smarter and faster decision making, strengthen capabilities available on the ground and improve cost structure. |
▪ | Extending Shared Business Services and Streamlining Global Functions – Implementing the Company’s shared service organizational model in all regions of the world. While initially focused on finance and accounting, these shared services are now being expanded to additional functional areas to streamline global functions. |
▪ | Optimizing Global Supply Chain and Facilities – Continuing to optimize manufacturing efficiencies, global warehouse networks and office locations for greater efficiency, lower cost and speed to bring innovation to market. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Cost of sales | $ | 11 | $ | 3 | $ | 31 | $ | 11 | |||||||
Selling, general and administrative expenses | 9 | 15 | 49 | 44 | |||||||||||
Other (income) expense, net | 22 | 28 | 76 | 143 | |||||||||||
Total 2012 Restructuring Program charges, pretax | $ | 42 | $ | 46 | $ | 156 | $ | 198 | |||||||
Total 2012 Restructuring Program charges, aftertax | $ | 32 | $ | 35 | $ | 114 | $ | 142 |
Three Months Ended | Nine Months Ended | Program-to-date | ||||||||||||
September 30, | September 30, | Accumulated Charges | ||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||
North America | 30 | % | 21 | % | 32 | % | 17 | % | 15 | % | ||||
Latin America | 3 | % | 7 | % | 5 | % | 3 | % | 4 | % | ||||
Europe (1) | 19 | % | 17 | % | 10 | % | 12 | % | 22 | % | ||||
Asia Pacific (1) | 4 | % | — | % | 6 | % | 4 | % | 3 | % | ||||
Africa/Eurasia | 12 | % | 5 | % | 14 | % | 4 | % | 6 | % | ||||
Hill’s Pet Nutrition | 5 | % | (3 | )% | 8 | % | 5 | % | 8 | % | ||||
Corporate | 27 | % | 53 | % | 25 | % | 55 | % | 42 | % |
Cumulative Charges | |||
as of September 30, 2016 | |||
Employee-Related Costs | $ | 452 | |
Incremental Depreciation | 77 | ||
Asset Impairments | 15 | ||
Other | 612 | ||
Total | $ | 1,156 |
Three Months Ended September 30, 2016 | ||||||||||||||||||||
Employee-Related Costs | Incremental Depreciation | Asset Impairments | Other | Total | ||||||||||||||||
Balance at June 30, 2016 | $ | 76 | $ | — | $ | — | $ | 141 | $ | 217 | ||||||||||
Charges | 14 | 3 | 5 | 20 | 42 | |||||||||||||||
Cash payments | (17 | ) | — | — | (35 | ) | (52 | ) | ||||||||||||
Charges against assets | (1 | ) | (3 | ) | (5 | ) | — | (9 | ) | |||||||||||
Foreign exchange | — | — | — | — | — | |||||||||||||||
Balance at September 30, 2016 | $ | 72 | $ | — | $ | — | $ | 126 | $ | 198 |
Nine Months Ended September 30, 2016 | ||||||||||||||||||||
Employee-Related Costs | Incremental Depreciation | Asset Impairments | Other | Total | ||||||||||||||||
Balance at December 31, 2015 | $ | 84 | $ | — | $ | — | $ | 131 | $ | 215 | ||||||||||
Charges | 48 | 6 | 8 | 94 | 156 | |||||||||||||||
Cash payments | (58 | ) | — | — | (99 | ) | (157 | ) | ||||||||||||
Charges against assets | (3 | ) | (6 | ) | (8 | ) | — | (17 | ) | |||||||||||
Foreign exchange | 1 | — | — | — | 1 | |||||||||||||||
Balance at September 30, 2016 | $ | 72 | $ | — | $ | — | $ | 126 | $ | 198 |
Three Months Ended September 30, 2016 | Net Sales Growth (GAAP) | Foreign Exchange Impact | Acquisitions and Divestments Impact (1) | Organic Sales Growth (Non-GAAP) |
Oral, Personal and Home Care | ||||
North America | 1.0% | —% | —% | 1.0% |
Latin America | (13.0)% | (6.0)% | (17.5)% | 10.5% |
Europe | (1.5)% | (3.0)% | —% | 1.5% |
Asia Pacific | (1.5)% | (2.0)% | (2.5)% | 3.0% |
Africa/Eurasia | 1.5% | (7.0)% | —% | 8.5% |
Total Oral, Personal and Home Care | (4.5)% | (3.0)% | (6.0)% | 4.5% |
Pet Nutrition | 2.5% | 1.0% | —% | 1.5% |
Total Company | (3.5)% | (2.5)% | (5.5)% | 4.5% |
Nine Months Ended September 30, 2016 | Net Sales Growth (GAAP) | Foreign Exchange Impact | Acquisitions and Divestments Impact (1) | Organic Sales Growth (Non-GAAP) |
Oral, Personal and Home Care | ||||
North America | 1.5% | (0.5)% | —% | 2.0% |
Latin America | (17.5)% | (12.5)% | (15.0)% | 10.0% |
Europe | (1.5)% | (2.5)% | —% | 1.0% |
Asia Pacific | (5.0)% | (4.5)% | (3.5)% | 3.0% |
Africa/Eurasia | (4.5)% | (12.5)% | —% | 8.0% |
Total Oral, Personal and Home Care | (7.0)% | (6.0)% | (5.5)% | 4.5% |
Pet Nutrition | 3.0% | (0.5)% | —% | 3.5% |
Total Company | (5.5)% | (5.0)% | (5.0)% | 4.5% |
Month | Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs(3) (in millions) | ||||||||||
July 1 through 31, 2016 | 473,531 | $ | 73.63 | 354,000 | $ | 3,192 | ||||||||
August 1 through 31, 2016 | 2,934,010 | $ | 74.62 | 2,721,200 | $ | 2,989 | ||||||||
September 1 through 30, 2016 | 2,509,942 | $ | 73.08 | 2,390,000 | $ | 2,814 | ||||||||
Total | 5,917,483 | $ | 73.89 | 5,465,200 |
(1) | Includes share repurchases under the 2015 Program and those associated with certain employee elections under the Company’s compensation and benefit programs. |
(2) | The difference between the total number of shares purchased and the total number of shares purchased as part of publicly announced plans or programs is 452,283 shares, all of which relate to shares deemed surrendered to the Company to satisfy certain employee elections under the Company’s compensation and benefit programs. |
(3) | Includes approximate dollar value of shares that were available to be purchased under publicly announced plans or programs that were in effect as of September 30, 2016. |
Exhibit No. | Description | |
10 | Form of Nonqualified Option Award Agreement used in connection with grants under the 2013 Incentive Compensation Plan | |
12 | Computation of Ratio of Earnings to Fixed Charges. | |
31-A | Certificate of the Chairman of the Board, President and Chief Executive Officer of Colgate-Palmolive Company pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | |
31-B | Certificate of the Chief Financial Officer of Colgate-Palmolive Company pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | |
32 | Certificate of the Chairman of the Board, President and Chief Executive Officer and the Chief Financial Officer of Colgate-Palmolive Company pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. § 1350. | |
101 | The following materials from Colgate-Palmolive Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2016, formatted in eXtensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Income; (ii) the Condensed Consolidated Statements of Comprehensive Income; (iii) the Condensed Consolidated Balance Sheets; (iv) the Condensed Consolidated Statements of Cash Flows; and (v) Notes to Condensed Consolidated Financial Statements. |
COLGATE-PALMOLIVE COMPANY | |
(Registrant) | |
Principal Executive Officer: | |
October 27, 2016 | /s/ Ian Cook |
Ian Cook | |
Chairman of the Board, President and Chief Executive Officer | |
Principal Financial Officer: | |
October 27, 2016 | /s/ Dennis J. Hickey |
Dennis J. Hickey | |
Chief Financial Officer | |
Principal Accounting Officer: | |
October 27, 2016 | /s/ Victoria L. Dolan |
Victoria L. Dolan | |
Chief Transformation Officer and Corporate Controller |
Nine Months Ended September 30, 2016 | |||
Earnings: | |||
Income before income taxes | $ | 2,804 | |
Add: | |||
Fixed charges | 175 | ||
Less: | |||
Income from equity investees | (7 | ) | |
Capitalized interest | (6 | ) | |
Income as adjusted | $ | 2,966 | |
Fixed Charges: | |||
Interest on indebtedness and amortization of debt expense and discount or premium | $ | 115 | |
Portion of rents representative of interest factor | 54 | ||
Capitalized interest | 6 | ||
Total Fixed Charges | $ | 175 | |
Ratio of earnings to fixed charges | 16.9 |
1. | I have reviewed this quarterly report on Form 10-Q of Colgate-Palmolive 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; and |
(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. |
/s/ Ian Cook |
Ian Cook |
Chairman of the Board, President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Colgate-Palmolive 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; and |
(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. |
/s/ Dennis J. Hickey |
Dennis J. Hickey |
Chief Financial Officer |
(1) | the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016 (the “Periodic Report”) which this statement accompanies fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and |
(2) | information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of Colgate-Palmolive Company. |
/s/ Ian Cook |
Ian Cook |
Chairman of the Board, President and |
Chief Executive Officer |
/s/ Dennis J. Hickey |
Dennis J. Hickey |
Chief Financial Officer |
Document and Entity Information |
9 Months Ended |
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Sep. 30, 2016
shares
| |
Document and Entity Information [Abstract] | |
Entity Registrant Name | COLGATE PALMOLIVE CO |
Entity Central Index Key | 0000021665 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2016 |
Document Fiscal Year Focus | 2016 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Trading Symbol | CL |
Entity Common Stock, Shares Outstanding | 888,842,604 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
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Sep. 30, 2016
USD ($)
$ / shares
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Mar. 31, 2016
Dividend
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Sep. 30, 2015
USD ($)
$ / shares
|
Mar. 31, 2015
Dividend
|
Sep. 30, 2016
USD ($)
$ / shares
|
Sep. 30, 2015
USD ($)
$ / shares
|
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Income Statement [Abstract] | ||||||||
Net sales | $ 3,867 | $ 3,999 | $ 11,474 | $ 12,135 | ||||
Cost of sales | 1,543 | 1,652 | 4,598 | 5,029 | ||||
Gross profit | 2,324 | 2,347 | 6,876 | 7,106 | ||||
Selling, general and administrative expenses | 1,322 | 1,347 | 3,996 | 4,178 | ||||
Other (income) expense, net | (69) | (136) | (2) | 0 | ||||
Operating profit | 1,071 | 1,136 | 2,882 | 2,928 | ||||
Interest (income) expense, net | 25 | 5 | 78 | 19 | ||||
Income before income taxes | 1,046 | 1,131 | 2,804 | 2,909 | ||||
Provision for income taxes | 300 | 361 | 846 | 940 | ||||
Net income including noncontrolling interests | 746 | 770 | 1,958 | 1,969 | ||||
Less: Net income attributable to noncontrolling interests | 44 | 44 | 123 | 127 | ||||
Net income attributable to Colgate-Palmolive Company | $ 702 | $ 726 | $ 1,835 | $ 1,842 | ||||
Earnings per common share, basic (in dollars per share) | $ / shares | $ 0.79 | $ 0.81 | $ 2.05 | $ 2.04 | ||||
Earnings per common share, diluted (in dollars per share) | $ / shares | 0.78 | 0.80 | 2.04 | 2.02 | ||||
Dividends declared per common share (in dollars per share) | $ / shares | [1] | $ 0.39 | $ 0.38 | $ 1.55 | $ 1.50 | |||
Number of dividends declared per quarter (in dividends) | Dividend | 2 | 2 | ||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
[1] | ||
---|---|---|---|---|---|
Current Assets | |||||
Cash and cash equivalents | $ 1,298 | $ 970 | |||
Receivables (net of allowances of $66 and $59, respectively) | 1,560 | 1,427 | |||
Inventories | 1,193 | 1,180 | |||
Other current assets | 713 | 807 | |||
Total current assets | 4,764 | 4,384 | |||
Property, plant and equipment: | |||||
Cost | 8,309 | 8,059 | |||
Less: Accumulated depreciation | (4,472) | (4,263) | |||
Property, plant and equipment, net | 3,837 | 3,796 | |||
Goodwill | 2,181 | 2,103 | |||
Other intangible assets, net | 1,346 | 1,346 | |||
Deferred income taxes | 261 | 67 | |||
Other assets | 234 | 239 | |||
Total assets | 12,623 | 11,935 | |||
Current Liabilities | |||||
Notes and loans payable | 3 | 4 | |||
Current portion of long-term debt | 904 | 298 | |||
Accounts payable | 1,076 | 1,110 | |||
Accrued income taxes | 350 | 277 | |||
Other accruals | 2,322 | 1,845 | |||
Total current liabilities | 4,655 | 3,534 | |||
Long-term debt | 5,616 | 6,246 | |||
Deferred income taxes | 270 | 233 | |||
Other liabilities | 1,854 | 1,966 | |||
Total liabilities | 12,395 | 11,979 | |||
Shareholders’ Equity | |||||
Common stock | 1,466 | 1,466 | |||
Additional paid-in capital | 1,654 | 1,438 | |||
Retained earnings | 19,310 | 18,861 | |||
Accumulated other comprehensive income (loss) | (3,829) | (3,950) | |||
Unearned compensation | (3) | (12) | |||
Treasury stock, at cost | (18,731) | (18,102) | |||
Total Colgate-Palmolive Company shareholders’ equity | (133) | (299) | |||
Noncontrolling interests | 361 | 255 | |||
Total equity | 228 | (44) | |||
Total liabilities and equity | $ 12,623 | $ 11,935 | |||
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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 66 | $ 59 |
Basis of Presentation |
9 Months Ended |
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Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Financial Statements reflect all normal recurring adjustments which, in management’s opinion, are necessary for a fair statement of the results for interim periods. Results of operations for interim periods may not be representative of results to be expected for a full year. Certain prior year amounts have been reclassified to conform to the current year presentation. The Company adopted Accounting Standards Update (“ASU”) No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” on January 1, 2016. To conform to the current year’s presentation, debt issuance costs have been reclassified from Other assets and are now presented as a direct deduction to the carrying amount of the related debt balance at December 31, 2015. The reclassification had no further effect on the Company’s Consolidated Financial Statements. For a complete set of financial statement notes, including the significant accounting policies of Colgate-Palmolive Company (together with its subsidiaries, the “Company” or “Colgate”), refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission. |
Use of Estimates |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates Provisions for certain expenses, including income taxes, media advertising and consumer promotion, are based on full year assumptions and are included in the accompanying Condensed Consolidated Financial Statements in proportion with estimated annual tax rates, the passage of time or estimated annual sales. |
Recent Accounting Pronouncements |
9 Months Ended |
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Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On August 26, 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which clarifies how certain cash receipts and payments are to be presented in the Statement of cash flows. The guidance is effective for the Company on January 1, 2018 and early adoption is permitted. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. On March 30, 2016, the FASB issued ASU No. 2016-09, “Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends accounting for income taxes related to share-based compensation, the related classification in the statement of cash flows and share award forfeiture accounting. This guidance requires recognition of excess tax benefits and deficiencies (resulting from an increase or decrease in the fair value of an award from grant date to the vesting or exercise date) in the provision for income taxes as a discrete item in the quarterly period in which they occur. Currently, excess tax benefits are recognized in equity. In addition, these amounts will be classified as an operating activity in the Statement of cash flows instead of as a financing activity. For the years 2013 to 2015, the Company recognized excess tax benefits in equity in the range of approximately $50 to $60 per year. These amounts may not necessarily be indicative of future amounts that may be recognized subsequent to the adoption of this new standard, as any excess tax benefits recognized would be dependent on future stock prices, employee exercise behavior and applicable tax rates. The new guidance is effective for the Company beginning on January 1, 2017 and early adoption is permitted. On March 15, 2016, the FASB issued ASU No. 2016-07, “Investments–Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting,” which eliminates the requirement to retroactively adjust an investment that subsequently qualifies for equity method accounting (as a result of an increase in level of ownership interest or degree of influence) as if the equity method of accounting had been applied during all prior periods that the investment was held. The new standard requires that the investor add the cost of acquiring additional ownership interest in the investee to its current basis and prospectively adopt the equity method of accounting. Any unrealized gains or losses in an available-for-sale investment that subsequently qualifies as an equity method investment should be recognized in earnings at the date the investment qualifies as an equity method investment. The new guidance is effective for the Company beginning on January 1, 2017 and early adoption is permitted. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. On February 25, 2016, the FASB issued its final standard on lease accounting, ASU No. 2016-02, “Leases (Topic 842),” which supersedes Topic 840, “Leases.” The new accounting standard requires the recognition of right-of-use assets and lease liabilities for all long-term leases, including operating leases, on the balance sheet. The new standard also provides additional guidance on the measurement of the right-of-use assets and lease liabilities and will require enhanced disclosures about the Company’s leasing arrangements. This new standard is effective for the Company beginning January 1, 2019, with early adoption permitted. The standard requires a “modified retrospective” adoption, meaning the standard is applied to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact of the new standard on its Consolidated Financial Statements. On January 5, 2016, the FASB issued ASU No. 2016-01, “Financial Instruments–Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The updated guidance enhances the reporting model for financial instruments and includes amendments to address aspects of recognition, measurement, presentation and disclosure. The amendment to the standard is effective for the Company beginning on January 1, 2018. While the Company is currently assessing the impact of the new standard, it does not expect this new guidance to have a material impact on its Consolidated Financial Statements. On November 20, 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which simplifies the presentation of deferred income taxes. Under the new accounting standard, deferred tax assets and liabilities are required to be classified as noncurrent, eliminating the prior requirement to separate deferred tax assets and liabilities into current and noncurrent. As permitted, the Company adopted the new standard on March 31, 2016, on a prospective basis, and did not retrospectively adjust prior periods. On July 22, 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which simplifies the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out (“LIFO”) and the retail inventory method. The new guidance is effective for the Company beginning on January 1, 2017, with early adoption permitted. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. On May 28, 2014, the FASB and the International Accounting Standards Board issued their final converged standard on revenue recognition. The standard, issued as ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” by the FASB, provides a single, comprehensive revenue recognition model for all contracts with customers and supersedes current revenue recognition guidance. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The new standard also includes enhanced disclosures which are significantly more comprehensive than those in existing revenue standards. This new guidance is effective for the Company beginning January 1, 2018. On March 30, 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Principal versus Agent Considerations),” to clarify the implementation guidance on principal versus agent considerations. On April 14, 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Identifying Performance Obligations and Licensing),” to clarify the implementation guidance on identifying performance obligations and licensing. On May 9, 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Narrow-Scope Improvements and Practical Expedients),” to clarify the implementation guidance on assessing collectibility, presentation of sales taxes, noncash consideration and completed contracts and contract modifications at transition. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. While the Company is currently assessing the impact of the new standard, it does not expect this new standard will have a material impact on its Consolidated Financial Statements. |
Acquisitions and Divestitures |
9 Months Ended |
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Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Sale of Land in Mexico In September 2016, the Company’s Mexican subsidiary completed the sale to the United States of America of the Mexico City site on which its commercial operations, technology center and soap production facility were previously located and received $60 as the third and final installment of the sale price. The total sale price (including the third installment and the previously received first and second installments) was $120. The Company recognized a pretax gain of $97 ($63 aftertax gain) in the third quarter of 2016, net of costs primarily related to site preparation. |
Restructuring and Related Implementation Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Implementation Charges | Restructuring and Related Implementation Charges In the fourth quarter of 2012, the Company commenced a Global Growth and Efficiency Program (as expanded in 2014 and 2015 as described below, the “2012 Restructuring Program”) for sustained growth. The program’s initiatives are expected to help Colgate ensure continued solid worldwide growth in unit volume, organic sales and earnings per share and enhance its global leadership positions in its core businesses. On October 23, 2014, the Company’s Board of Directors (the “Board”) approved an expansion of the 2012 Restructuring Program to take advantage of additional savings opportunities. Recognizing the macroeconomic challenges around the world and the successful implementation of the 2012 Restructuring Program, on October 29, 2015, the Board approved the reinvestment of the funds from the sale of the Company’s laundry detergent business in the South Pacific to expand the 2012 Restructuring Program and extend it for one year through December 31, 2017. The Board approved the implementation plan for this expansion on March 10, 2016. Initiatives under the 2012 Restructuring Program will continue to fit within the program’s three focus areas of expanding commercial hubs, extending shared business services and streamlining global functions and optimizing the global supply chain and facilities. Cumulative pretax charges resulting from the 2012 Restructuring Program, once all phases are approved and implemented, are estimated to be $1,405 to $1,585 ($1,050 to $1,170 aftertax). The pretax charges resulting from the 2012 Restructuring Program are currently estimated to be comprised of the following categories: Employee-Related Costs, including severance, pension and other termination benefits (50%); asset-related costs, primarily Incremental Depreciation and Asset Impairments (10%); and Other charges, which include contract termination costs, consisting primarily of related implementation charges resulting directly from exit activities (20%) and the implementation of new strategies (20%). Over the course of the 2012 Restructuring Program, it is currently estimated that approximately 75% of the charges will result in cash expenditures. Anticipated pretax charges for 2016 are expected to approximate $270 to $310 ($200 to $230 aftertax). It is expected that substantially all charges resulting from the 2012 Restructuring Program will be incurred by December 31, 2017. It is expected that the cumulative pretax charges, once all projects are approved and implemented, will relate to initiatives undertaken in North America (15%), Europe (20%), Latin America (5%), Asia Pacific (5%), Africa/Eurasia (5%), Hill’s Pet Nutrition (10%) and Corporate (40%), which includes substantially all of the costs related to the implementation of new strategies, noted above, on a global basis. It is expected that, when it has been fully implemented, the 2012 Restructuring Program will contribute a net reduction of approximately 3,300–3,800 positions from the Company’s global employee workforce. For the three and nine months ended September 30, 2016 and 2015, restructuring and related implementation charges are reflected in the Condensed Consolidated Statements of Income as follows:
Restructuring and related implementation charges in the preceding table are recorded in the Corporate segment as these initiatives are predominantly centrally directed and controlled and are not included in internal measures of segment operating performance. Total charges incurred for the 2012 Restructuring Program relate to initiatives undertaken by the following reportable operating segments:
(1) The Company has recast its historical geographic segment information to conform to the reporting structure effective as of April 1, 2016. See Note 13, Segment Information for additional details. Since the inception of the 2012 Restructuring Program in the fourth quarter of 2012, the Company has incurred pretax cumulative charges of $1,156 ($853 aftertax) in connection with the implementation of various projects as follows:
The majority of costs incurred since inception relate to the following projects: the implementation of the Company’s overall hubbing strategy; the consolidation of facilities; the extension of shared business services and streamlining of global functions; the simplification and streamlining of the Company’s research and development capabilities and oral care supply chain, both in Europe; the closing of the Morristown, New Jersey personal care facility; and restructuring how the Company will provide future retirement benefits to substantially all of the U.S.-based employees participating in the Company’s defined benefit retirement plan by shifting them to the Company’s defined contribution plan. The following tables summarize the activity for the restructuring and related implementation charges discussed above and the related accruals:
Employee-Related Costs primarily include severance and other termination benefits and are calculated based on long-standing benefit practices, local statutory requirements and, in certain cases, voluntary termination arrangements. Employee-Related Costs also include pension and other retiree benefit enhancements amounting to $1 and $3 for the three and nine months ended September 30, 2016, respectively, which are reflected as Charges against assets within Employee-Related Costs in the preceding tables as the corresponding balance sheet amounts are reflected as a reduction of pension assets or an increase in pension and other retiree benefit liabilities (see Note 10, Retirement Plans and Other Retiree Benefits). Incremental Depreciation is recorded to reflect changes in useful lives and estimated residual values for long-lived assets that will be taken out of service prior to the end of their normal service period. Asset Impairments are recorded to write down assets held for sale or disposal to their fair value based on amounts expected to be realized. Charges against assets within Asset Impairments are net of cash proceeds pertaining to the sale of certain assets. Other charges consist primarily of charges resulting directly from exit activities and the implementation of new strategies as a result of the 2012 Restructuring Program. These charges for the three and nine months ended September 30, 2016 include third-party incremental costs related to the development and implementation of new business and strategic initiatives of $17 and $74, respectively, and contract termination costs and charges resulting directly from exit activities of $3 and $19, respectively, directly related to the 2012 Restructuring Program. These charges were expensed as incurred. Also included in Other charges for the three and nine months ended September 30, 2016 are other exit costs related to the consolidation of facilities of $0 and $1, respectively. |
Inventories |
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Inventory, Net, Items Net of Reserve Alternative [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories by major class are as follows:
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Shareholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders’ Equity Changes in the components of Shareholders’ Equity for the nine months ended September 30, 2016 are as follows:
Accumulated other comprehensive income (loss) includes cumulative translation losses of $3,001 and $3,087 at September 30, 2016 and December 31, 2015, respectively, and unrecognized retirement plan and other retiree benefits costs of $829 and $868 at September 30, 2016 and December 31, 2015, respectively. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share
For the three months ended September 30, 2016 and 2015, the average number of stock options and restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 1,980,457 and 4,389,790, respectively.
For the nine months ended September 30, 2016 and 2015, the average number of stock options and restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 1,212,685 and 3,515,898, respectively. Basic and diluted earnings per share are computed independently for each quarter and any year-to-date period presented. As a result of changes in shares outstanding during the year and rounding, the sum of the quarters’ earnings per share may not necessarily equal the earnings per share for any year-to-date period. |
Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the three months ended September 30, 2016 and 2015 were as follows:
(1) These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 10, Retirement Plans and Other Retiree Benefits for additional details. (2) These (gains) losses are reclassified into Cost of sales. See Note 14, Fair Value Measurements and Financial Instruments for additional details. There were no tax impacts on Other comprehensive income (loss) attributable to Noncontrolling interests. Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the nine months ended September 30, 2016 and 2015 were as follows:
(1) These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 10, Retirement Plans and Other Retiree Benefits for additional details. (2) These (gains) losses are reclassified into Cost of sales. See Note 14, Fair Value Measurements and Financial Instruments for additional details. There were no tax impacts on Other comprehensive income (loss) attributable to Noncontrolling interests. |
Retirement Plans and Other Retiree Benefits |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans and Other Retiree Benefits | Retirement Plans and Other Retiree Benefits Components of Net periodic benefit cost for the three and nine months ended September 30, 2016 and 2015 were as follows:
For the nine months ended September 30, 2016, the Company made voluntary contributions of $53 to its U.S. postretirement plans. For the nine months ended September 30, 2015, the Company did not make any voluntary contributions to its U.S. postretirement plans. |
Income Taxes |
9 Months Ended |
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Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Since 2002, the Company has taken a tax position in a foreign jurisdiction that has been challenged by the tax authorities. In May 2015, the Company became aware of several Supreme Court rulings in the foreign jurisdiction disallowing certain tax deductions which had the effect of reversing prior decisions. The Company had taken deductions in prior years similar to those disallowed by the Court. As a result, as required, the Company reassessed its tax position and increased its unrecognized tax benefits by $15 in the quarter ended June 30, 2015. During the quarter ended June 30, 2016, the Supreme Court in the foreign jurisdiction decided the matter in the Company’s favor for the years 2002 through 2005 and, as a result, the Company recorded a net tax benefit of $13 including interest. During the quarter ended September 30, 2016, the Administrative Court in the foreign jurisdiction decided the matter in the Company’s favor for the years 2008 through 2011 by acknowledging the Supreme Court’s ruling for the years 2002 through 2005, which eliminated the possibility of future appeals. As a result, the Company recorded a tax benefit of $17, including interest, in the quarter ended September 30, 2016. The tax benefit of deductions related to this tax position taken for the years 2006 through 2007 and 2012 through 2014 totals approximately $14 at current exchange rates. These deductions are currently being challenged by the tax authorities in the foreign jurisdiction either in the lower courts or at the administrative level and, if resolved in the Company’s favor, will result in the Company recording additional tax benefits, including interest. |
Contingencies |
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Sep. 30, 2016 | |||||||||||||||||
Loss Contingency [Abstract] | |||||||||||||||||
Contingencies | Contingencies As a global company serving consumers in more than 200 countries and territories, the Company is routinely subject to a wide variety of legal proceedings. These include disputes relating to intellectual property, contracts, product liability, marketing, advertising, foreign exchange controls, antitrust and trade regulation, as well as labor and employment, environmental and tax matters and consumer class actions. Management proactively reviews and monitors the Company’s exposure to, and the impact of, environmental matters. The Company is party to various environmental matters and, as such, may be responsible for all or a portion of the cleanup, restoration and post-closure monitoring of several sites. The Company establishes accruals for loss contingencies when it has determined that a loss is probable and that the amount of loss, or range of loss, can be reasonably estimated. Any such accruals are adjusted thereafter as appropriate to reflect changes in circumstances. The Company also determines estimates of reasonably possible losses or ranges of reasonably possible losses in excess of related accrued liabilities, if any, when it has determined that a loss is reasonably possible and it is able to determine such estimates. For those matters disclosed below, the Company currently estimates that the aggregate range of reasonably possible losses in excess of any accrued liabilities is $0 to approximately $250 (based on current exchange rates). The estimates included in this amount are based on the Company’s analysis of currently available information and, as new information is obtained, these estimates may change. Due to the inherent subjectivity of the assessments and the unpredictability of outcomes of legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to the Company. Thus, the Company’s exposure and ultimate losses may be higher or lower, and possibly significantly so, than the amounts accrued or the range disclosed above. Based on current knowledge, management does not believe that the ultimate resolution of loss contingencies arising from the matters discussed herein will have a material effect on the Company’s consolidated financial position or its ongoing results of operations or cash flows. However, in light of the inherent uncertainties noted above, an adverse outcome in one or more matters could be material to the Company’s results of operations or cash flows for any particular quarter or year. Brazilian Matters There are certain tax and civil proceedings outstanding, as described below, related to the Company’s 1995 acquisition of the Kolynos oral care business from Wyeth (the “Seller”). The Brazilian internal revenue authority has disallowed interest deductions and foreign exchange losses taken by the Company’s Brazilian subsidiary for certain years in connection with the financing of the Kolynos acquisition. The tax assessments with interest, at the current exchange rate, are approximately $142. This amount includes additional assessments received from the Brazilian internal revenue authority in April 2016 relating to net operating loss carryforwards used by the Company’s Brazilian subsidiary to offset taxable income that had also been deducted from the authority’s original assessments. The Company has been disputing the disallowances by appealing the assessments since October 2001. Numerous appeals are currently pending at the administrative level. In the event the Company is ultimately unsuccessful in its administrative appeals, further appeals are available within the Brazilian federal courts. In September 2015, the Company lost one of its appeals at the administrative level, and has filed a lawsuit in Brazilian federal court. In the event the Company is unsuccessful in this filing, further appeals are available within the Brazilian federal courts. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the disallowances are without merit and that the Company should ultimately prevail. The Company is challenging these assessments vigorously. In July 2002, the Brazilian Federal Public Attorney filed a civil action against the federal government of Brazil, Laboratorios Wyeth-Whitehall Ltda. (the Brazilian subsidiary of the Seller) and the Company, as represented by its Brazilian subsidiary, in the 6th. Lower Federal Court in the City of São Paulo, seeking to annul an April 2000 decision by the Brazilian Board of Tax Appeals that found in favor of the Seller’s Brazilian subsidiary on the issue of whether it had incurred taxable capital gains as a result of the divestiture of Kolynos. The action seeks to make the Company’s Brazilian subsidiary jointly and severally liable for any tax due from the Seller’s Brazilian subsidiary. The case has been pending since 2002, and the Lower Federal Court has not issued a decision. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the Company should ultimately prevail in this action. The Company is challenging this action vigorously. In December 2005, the Brazilian internal revenue authority issued to the Company’s Brazilian subsidiary a tax assessment with interest and penalties of approximately $59, at the current exchange rate, based on a claim that certain purchases of U.S. Treasury bills by the subsidiary and their subsequent disposition during the period 2000 to 2001 were subject to a tax on foreign exchange transactions. The Company had been disputing the assessment within the internal revenue authority’s administrative appeals process. However, in November 2015, the Superior Chamber of Administrative Tax Appeals denied the Company’s final administrative appeal and the Company has filed a lawsuit in Brazilian federal court. In the event the Company is unsuccessful in this filing, further appeals are available within the Brazilian federal courts. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the tax assessment is without merit and that the Company should ultimately prevail. The Company is challenging this assessment vigorously. Competition Matters European Competition Matters Certain of the Company’s subsidiaries in Europe have been subject to investigations, and, in some cases, fines, by governmental authorities in a number of European countries related to potential competition law violations. The Company understands that substantially all of these matters also have involved other consumer goods companies and/or retail customers. The status of the various pending matters is discussed below. The Company’s policy is to comply with antitrust and competition laws and, if a violation of any such laws is found, to take appropriate remedial action and to cooperate fully with any related governmental inquiry. Competition and antitrust law investigations often continue for several years and can result in substantial fines for violations that are found and associated private actions for damages. While the Company cannot predict the final financial impact of these competition law issues, as these matters may change, the Company evaluates developments in these matters quarterly and accrues liabilities as and when appropriate. Fines have been imposed on the Company in the following matter, although, as noted below, the Company has appealed each of these fines:
Currently, the following formal claim of violations is pending against the Company:
Since December 31, 2015, the following matters have been resolved:
Australian Competition Matter In December 2013, the Australian competition law authority instituted civil proceedings in the Sydney registry of the Federal Court of Australia alleging that three consumer goods companies, including the Company’s Australian subsidiary, a retailer and a former employee of the Company’s Australian subsidiary violated the Australian competition law by coordinating the launching and pricing of ultra concentrated laundry detergents. In 2015, the Company recognized a charge of $14 in connection with this matter. In March 2016, the Company and the Australian competition law authority reached an agreement to settle these proceedings for a total of $14, which includes a fine and cost reimbursement to the competition law authority. The former employee of the Company also reached an agreement to settle. The settlement agreements were approved by the court in May 2016. Talcum Powder Matters The Company is a defendant in a number of civil actions alleging that certain talcum powder products that were sold prior to 1996 were contaminated with asbestos. As of September 30, 2016, there were 101 individual cases pending against the Company in state and federal courts throughout the United States, 27 of which were filed against the Company during the quarter ended September 30, 2016. On July 21, 2016, a jury rendered a verdict in the Company’s favor in one of the cases following a trial in California, and the case was subsequently settled for an amount that is not material to the Company’s results of operations. In addition to the pending cases, as of September 30, 2016, 29 cases filed against the Company had been voluntarily dismissed and/or had final judgment entered in favor of the Company, and the Company had settled 20 cases for amounts that are not material to the Company’s results of operations. A number of the pending cases have gone, or are expected to go, to trial in 2016. While the Company and its legal counsel believe that these cases are without merit and intend to challenge them vigorously, there can be no assurances of the outcome at trial. Since the amount of any potential losses from these cases currently cannot be reasonably estimated, the range of reasonably possible losses in excess of accrued liabilities disclosed above does not include any amount relating to these cases. N8 The Company is a defendant in a lawsuit pending in Utah federal court brought by N8 Medical, Inc. (“N8 Medical”), Brigham Young University (“BYU”) and N8 Pharmaceuticals, Inc. (“N8 Pharma”). The complaint, originally filed in November 2013, alleges breach of contract and other torts arising out of the Company’s evaluation of a technology owned by BYU and licensed, at various times, to Ceragenix Pharmaceuticals, Inc., now in bankruptcy, N8 Medical and N8 Pharma. In the third quarter of 2016, the court indicated that the claims brought by N8 Pharma would be dismissed in their entirety and the Company and BYU agreed to resolve BYU’s claims for an amount that is not material to the Company’s results of operations. The Company and its legal counsel believe the remaining claims of N8 Medical, which have been significantly reduced, are without merit and are vigorously challenging them and defending this case on its merits. If the case reaches a trial, the trial is expected to occur in 2017. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition. Effective April 1, 2016, the operations of the Oral, Personal and Home Care product segment are managed geographically in five reportable operating segments: North America, Latin America, Europe, Asia Pacific and Africa/Eurasia. Through March 31, 2016, the Oral, Personal and Home Care product segment included the North America, Latin America, Europe/South Pacific, Asia and Africa/Eurasia geographic operating segments. As a result of management changes effective April 1, 2016, the Company realigned the geographic structure of its Europe/South Pacific and Asia reportable operating segments. Management responsibility for the South Pacific operations was transferred from Europe/South Pacific management to Asia management. Accordingly, commencing with the Company’s financial reporting for the quarter ended June 30, 2016, the results of the South Pacific operations are reported in the Asia Pacific reportable operating segment. The Company has recast its historical geographic segment information to conform to the new reporting structure. These changes have no impact on the Company’s historical consolidated financial position, results of operations or cash flows. The Company evaluates segment performance based on several factors, including Operating profit. The Company uses Operating profit as a measure of operating segment performance because it excludes the impact of Corporate-driven decisions related to interest expense and income taxes. The accounting policies of the operating segments are generally the same as those described in Note 2, Summary of Significant Accounting Policies to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs, restructuring and related implementation costs and gains and losses on sales of non-core product lines and assets. The Company reports these items within Corporate operations as they relate to Corporate-based responsibilities and decisions and are not included in the internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments. Net sales and Operating profit by segment were as follows:
Approximately 75% of the Company’s Net sales are generated from markets outside the U.S., with approximately 50% of the Company’s Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe). For the three months ended September 30, 2016, Corporate Operating profit (loss) included charges of $42 resulting from the 2012 Restructuring Program, a charge of $6 for a previously disclosed litigation matter and a gain of $97 on the sale of land in Mexico. For the nine months ended September 30, 2016, Corporate Operating profit (loss) included charges of $156 resulting from the 2012 Restructuring Program, a charge of $6 for a previously disclosed litigation matter and a gain of $97 on the sale of land in Mexico. For the three months ended September 30, 2015, Corporate Operating profit (loss) included charges of $46 resulting from the 2012 Restructuring Program, a charge of $18 related to the remeasurement of the Company’s Venezuelan subsidiary’s local currency-denominated net monetary assets as a result of an effective devaluation and a gain of $187 on the sale of the Company’s laundry detergent business in the South Pacific. For the nine months ended September 30, 2015, Corporate Operating profit (loss) included charges of $198 resulting from the 2012 Restructuring Program, a charge of $34 related to the remeasurement of the Company’s Venezuelan subsidiary’s local currency-denominated net monetary assets as a result of an effective devaluation and a gain of $187 on the sale of the Company’s laundry detergent business in the South Pacific. For further information regarding the 2012 Restructuring Program, refer to Note 5, Restructuring and Related Implementation Charges. |
Fair Value Measurements and Financial Instruments |
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Financial Instruments and Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Financial Instruments | Fair Value Measurements and Financial Instruments The Company uses available market information and other valuation methodologies in assessing the fair value of financial instruments. Judgment is required in interpreting market data to develop the estimates of fair value and, accordingly, changes in assumptions or the estimation methodologies may affect the fair value estimates. The Company is exposed to the risk of credit loss in the event of nonperformance by counterparties to financial instrument contracts; however, nonperformance is considered unlikely and any nonperformance is unlikely to be material, as it is the Company’s policy to contract only with diverse, credit-worthy counterparties based upon both strong credit ratings and other credit considerations. The Company is exposed to market risk from foreign currency exchange rates, interest rates and commodity price fluctuations. Volatility relating to these exposures is managed on a global basis by utilizing a number of techniques, including working capital management, sourcing strategies, selling price increases, selective borrowings in local currencies and entering into selective derivative instrument transactions, issued with standard features, in accordance with the Company’s treasury and risk management policies, which prohibit the use of derivatives for speculative purposes and leveraged derivatives for any purpose. It is the Company’s policy to enter into derivative instrument contracts with terms that match the underlying exposure being hedged. Hedge ineffectiveness, if any, is not material for any period presented. The Company’s derivative instruments include interest rate swap contracts, foreign currency contracts and commodity contracts. The Company utilizes interest rate swap contracts to manage its targeted mix of fixed and floating rate debt, and these swaps are valued using observable benchmark rates (Level 2 valuation). The Company utilizes foreign currency contracts, including forward and swap contracts, option contracts, local currency deposits and local currency borrowings to hedge portions of its foreign currency purchases, assets and liabilities arising in the normal course of business and the net investment in certain foreign subsidiaries. These contracts are valued using observable market rates (Level 2 valuation). Commodity futures contracts are utilized to hedge the purchases of raw materials used in production. These contracts are measured using quoted commodity exchange prices (Level 1 valuation). The duration of foreign currency and commodity contracts generally does not exceed 12 months. The following table summarizes the fair value of the Company’s derivative instruments and other financial instruments at September 30, 2016 and December 31, 2015:
The carrying amount of cash, cash equivalents, accounts receivable and short-term debt approximated fair value as of September 30, 2016 and December 31, 2015. The estimated fair value of the Company’s long-term debt, including the current portion, as of September 30, 2016 and December 31, 2015, was $6,941 and $6,767, respectively, and the related carrying value was $6,520 and $6,544, respectively. The estimated fair value of long-term debt was derived principally from quoted prices on the Company’s outstanding fixed-term notes (Level 2 valuation). Fair Value Hedges The Company has designated all interest rate swap contracts and certain foreign currency forward and option contracts as fair value hedges, for which the gain or loss on the derivative and the offsetting gain or loss on the hedged item are recognized in current earnings. The impact of foreign currency contracts is primarily recognized in Selling, general and administrative expenses and the impact of interest rate swap contracts is recognized in Interest (income) expense, net. Activity related to fair value hedges recorded during the three and nine months ended September 30, 2016 and 2015 was as follows:
Cash Flow Hedges All of the Company’s commodity contracts and certain foreign currency forward contracts have been designated as cash flow hedges, for which the effective portion of the gain or loss is reported as a component of Other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Activity related to cash flow hedges recorded during the three and nine months ended September 30, 2016 and 2015 was as follows:
The net gain (loss) recognized in OCI for both foreign currency contracts and commodity contracts is expected to be recognized in Cost of sales within the next twelve months. Net Investment Hedges The Company has designated certain foreign currency forward and option contracts and certain foreign currency-denominated debt as net investment hedges, for which the gain or loss on the instrument is reported as a component of Cumulative translation adjustments within OCI, along with the offsetting gain or loss on the hedged items. Activity related to net investment hedges recorded during the three and nine months ended September 30, 2016 and 2015 was as follows:
Derivatives Not Designated as Hedging Instruments Derivatives not designated as hedging instruments for each period consist of a cross-currency swap that serves as an economic hedge of a foreign currency deposit, for which the gain or loss on the instrument and the offsetting gain or loss on the hedged item are recognized in Other (income) expense, net for each period. Activity related to these contracts during the three and nine months ended September 30, 2016 and 2015 was as follows:
Other Financial Instruments Other financial instruments are classified as Other current assets or Other assets. Other financial instruments classified as Other current assets include marketable securities consisting of bank deposits of $188 with original maturities greater than 90 days (Level 1 valuation) and the current portion of bonds issued by the Argentinian government in the amount of $57. The long-term portion of these bonds in the amount of $4 is included in Other assets. Through its subsidiary in Argentina, the Company has invested in U.S. dollar-linked, devaluation-protected bonds issued by the Argentinian government. These bonds are considered held-to-maturity and are carried at amortized cost. As of September 30, 2016, the amortized cost of these bonds was $61 and their approximate fair value was $93 (Level 2 valuation). |
Use of Estimates (Policies) |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates Provisions for certain expenses, including income taxes, media advertising and consumer promotion, are based on full year assumptions and are included in the accompanying Condensed Consolidated Financial Statements in proportion with estimated annual tax rates, the passage of time or estimated annual sales. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On August 26, 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which clarifies how certain cash receipts and payments are to be presented in the Statement of cash flows. The guidance is effective for the Company on January 1, 2018 and early adoption is permitted. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. On March 30, 2016, the FASB issued ASU No. 2016-09, “Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends accounting for income taxes related to share-based compensation, the related classification in the statement of cash flows and share award forfeiture accounting. This guidance requires recognition of excess tax benefits and deficiencies (resulting from an increase or decrease in the fair value of an award from grant date to the vesting or exercise date) in the provision for income taxes as a discrete item in the quarterly period in which they occur. Currently, excess tax benefits are recognized in equity. In addition, these amounts will be classified as an operating activity in the Statement of cash flows instead of as a financing activity. For the years 2013 to 2015, the Company recognized excess tax benefits in equity in the range of approximately $50 to $60 per year. These amounts may not necessarily be indicative of future amounts that may be recognized subsequent to the adoption of this new standard, as any excess tax benefits recognized would be dependent on future stock prices, employee exercise behavior and applicable tax rates. The new guidance is effective for the Company beginning on January 1, 2017 and early adoption is permitted. On March 15, 2016, the FASB issued ASU No. 2016-07, “Investments–Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting,” which eliminates the requirement to retroactively adjust an investment that subsequently qualifies for equity method accounting (as a result of an increase in level of ownership interest or degree of influence) as if the equity method of accounting had been applied during all prior periods that the investment was held. The new standard requires that the investor add the cost of acquiring additional ownership interest in the investee to its current basis and prospectively adopt the equity method of accounting. Any unrealized gains or losses in an available-for-sale investment that subsequently qualifies as an equity method investment should be recognized in earnings at the date the investment qualifies as an equity method investment. The new guidance is effective for the Company beginning on January 1, 2017 and early adoption is permitted. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. On February 25, 2016, the FASB issued its final standard on lease accounting, ASU No. 2016-02, “Leases (Topic 842),” which supersedes Topic 840, “Leases.” The new accounting standard requires the recognition of right-of-use assets and lease liabilities for all long-term leases, including operating leases, on the balance sheet. The new standard also provides additional guidance on the measurement of the right-of-use assets and lease liabilities and will require enhanced disclosures about the Company’s leasing arrangements. This new standard is effective for the Company beginning January 1, 2019, with early adoption permitted. The standard requires a “modified retrospective” adoption, meaning the standard is applied to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact of the new standard on its Consolidated Financial Statements. On January 5, 2016, the FASB issued ASU No. 2016-01, “Financial Instruments–Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The updated guidance enhances the reporting model for financial instruments and includes amendments to address aspects of recognition, measurement, presentation and disclosure. The amendment to the standard is effective for the Company beginning on January 1, 2018. While the Company is currently assessing the impact of the new standard, it does not expect this new guidance to have a material impact on its Consolidated Financial Statements. On November 20, 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which simplifies the presentation of deferred income taxes. Under the new accounting standard, deferred tax assets and liabilities are required to be classified as noncurrent, eliminating the prior requirement to separate deferred tax assets and liabilities into current and noncurrent. As permitted, the Company adopted the new standard on March 31, 2016, on a prospective basis, and did not retrospectively adjust prior periods. On July 22, 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which simplifies the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out (“LIFO”) and the retail inventory method. The new guidance is effective for the Company beginning on January 1, 2017, with early adoption permitted. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. On May 28, 2014, the FASB and the International Accounting Standards Board issued their final converged standard on revenue recognition. The standard, issued as ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” by the FASB, provides a single, comprehensive revenue recognition model for all contracts with customers and supersedes current revenue recognition guidance. The revenue standard contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The new standard also includes enhanced disclosures which are significantly more comprehensive than those in existing revenue standards. This new guidance is effective for the Company beginning January 1, 2018. On March 30, 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Principal versus Agent Considerations),” to clarify the implementation guidance on principal versus agent considerations. On April 14, 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Identifying Performance Obligations and Licensing),” to clarify the implementation guidance on identifying performance obligations and licensing. On May 9, 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Narrow-Scope Improvements and Practical Expedients),” to clarify the implementation guidance on assessing collectibility, presentation of sales taxes, noncash consideration and completed contracts and contract modifications at transition. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. While the Company is currently assessing the impact of the new standard, it does not expect this new standard will have a material impact on its Consolidated Financial Statements. |
Restructuring and Related Implementation Charges (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | For the three and nine months ended September 30, 2016 and 2015, restructuring and related implementation charges are reflected in the Condensed Consolidated Statements of Income as follows:
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Schedule of Percent of Total Restructuring Charges Related To Segment for the period | Total charges incurred for the 2012 Restructuring Program relate to initiatives undertaken by the following reportable operating segments:
(1) The Company has recast its historical geographic segment information to conform to the reporting structure effective as of April 1, 2016. See Note 13, Segment Information for additional details. |
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Schedule of Restructuring and Related Costs Incurred to Date | Since the inception of the 2012 Restructuring Program in the fourth quarter of 2012, the Company has incurred pretax cumulative charges of $1,156 ($853 aftertax) in connection with the implementation of various projects as follows:
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Schedule of Restructuring Reserve by Type of Cost | The following tables summarize the activity for the restructuring and related implementation charges discussed above and the related accruals:
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Inventories (Tables) |
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Inventory, Net, Items Net of Reserve Alternative [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories By Major Class | Inventories by major class are as follows:
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Shareholders' Equity (Tables) |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Changes in the components of Shareholders’ Equity for the nine months ended September 30, 2016 are as follows:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted |
For the three months ended September 30, 2016 and 2015, the average number of stock options and restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 1,980,457 and 4,389,790, respectively.
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Other Comprehensive Income (Loss) (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Comprehensive Income (Loss) | Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the three months ended September 30, 2016 and 2015 were as follows:
(1) These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 10, Retirement Plans and Other Retiree Benefits for additional details. (2) These (gains) losses are reclassified into Cost of sales. See Note 14, Fair Value Measurements and Financial Instruments for additional details. Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the nine months ended September 30, 2016 and 2015 were as follows:
(1) These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 10, Retirement Plans and Other Retiree Benefits for additional details. (2) These (gains) losses are reclassified into Cost of sales. See Note 14, Fair Value Measurements and Financial Instruments for additional details. |
Retirement Plans and Other Retiree Benefits (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Net Periodic Benefit Cost | Components of Net periodic benefit cost for the three and nine months ended September 30, 2016 and 2015 were as follows:
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Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales and Operating Profit by Segment | Net sales and Operating profit by segment were as follows:
|
Fair Value Measurements and Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative instruments | The following table summarizes the fair value of the Company’s derivative instruments and other financial instruments at September 30, 2016 and December 31, 2015:
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Activity related to fair value hedges | Activity related to fair value hedges recorded during the three and nine months ended September 30, 2016 and 2015 was as follows:
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Activity related to cash flow hedges | Activity related to cash flow hedges recorded during the three and nine months ended September 30, 2016 and 2015 was as follows:
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Activity related to net investment hedges | Activity related to net investment hedges recorded during the three and nine months ended September 30, 2016 and 2015 was as follows:
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Activity related to derivatives not designated as hedging instruments | Activity related to these contracts during the three and nine months ended September 30, 2016 and 2015 was as follows:
|
Recent Accounting Pronouncements (Details) $ in Millions |
36 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Excess tab benefits recognized | $ 50 |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Excess tab benefits recognized | $ 60 |
Acquisitions and Divestitures - Divestitures (Details 1) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Sep. 30, 2016 |
Jun. 30, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from the sale of land in Mexico | $ 60 | $ 0 | ||
Gain on sale of land in Mexico | 97 | $ 0 | ||
MEXICO | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from the sale of land in Mexico | $ 60 | $ 120 | ||
Gain on sale of land in Mexico | 97 | $ 97 | ||
Gain on sale of land in Mexico, net of tax | $ 63 |
Restructuring and Related Implementation Charges (Details) - 2012 Restructuring Program $ in Millions |
9 Months Ended | |
---|---|---|
Oct. 29, 2015 |
Sep. 30, 2016
USD ($)
position
|
|
Restructuring Cost and Reserve [Line Items] | ||
Duration of extension of the restructuring program | 1 year | |
Expected percent of total charges resulting in cash expenditure | 75.00% | |
Hill’s Pet Nutrition | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected percent of total restructuring charges related to segment for the duration of the program | 10.00% | |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected percent of total restructuring charges related to segment for the duration of the program | 40.00% | |
North America | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected percent of total restructuring charges related to segment for the duration of the program | 15.00% | |
Europe | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected percent of total restructuring charges related to segment for the duration of the program | 20.00% | |
Latin America | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected percent of total restructuring charges related to segment for the duration of the program | 5.00% | |
Asia Pacific | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected percent of total restructuring charges related to segment for the duration of the program | 5.00% | |
Africa/Eurasia | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected percent of total restructuring charges related to segment for the duration of the program | 5.00% | |
Employee-Related Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated percent of total cumulative pretax charges of implementing restructuring program by category | 50.00% | |
Incremental Depreciation And Asset Impairment | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated percent of total cumulative pretax charges of implementing restructuring program by category | 10.00% | |
Charges Resulting Directly From Exit Activities | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated percent of total cumulative pretax charges of implementing restructuring program by category | 20.00% | |
Implementation Of New Strategies | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated percent of total cumulative pretax charges of implementing restructuring program by category | 20.00% | |
Minimum | Expected Completion Date 2017 | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring program expected cost before tax | $ 1,405 | |
Restructuring program expected cost after tax | $ 1,050 | |
Restructuring and related cost, expected number of positions eliminated (in positions) | position | 3,300 | |
Minimum | Expected Completion Date 2016 | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring program expected cost before tax | $ 270 | |
Restructuring program expected cost after tax | 200 | |
Maximum | Expected Completion Date 2017 | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring program expected cost before tax | 1,585 | |
Restructuring program expected cost after tax | $ 1,170 | |
Restructuring and related cost, expected number of positions eliminated (in positions) | position | 3,800 | |
Maximum | Expected Completion Date 2016 | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring program expected cost before tax | $ 310 | |
Restructuring program expected cost after tax | $ 230 |
Restructuring and Related Implementation Charges (Details 1) - 2012 Restructuring Program - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Total 2012 Restructuring Program charges, pretax | $ 42 | $ 46 | $ 156 | $ 198 |
Total 2012 Restructuring Program charges, aftertax | 32 | 35 | 114 | 142 |
Cost of sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total 2012 Restructuring Program charges, pretax | 11 | 3 | 31 | 11 |
Selling, general and administrative expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total 2012 Restructuring Program charges, pretax | 9 | 15 | 49 | 44 |
Other (income) expense, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total 2012 Restructuring Program charges, pretax | $ 22 | $ 28 | $ 76 | $ 143 |
Restructuring and Related Implementation Charges (Details 2) - 2012 Restructuring Program |
3 Months Ended | 9 Months Ended | 48 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
|
Hill’s Pet Nutrition | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 5.00% | (3.00%) | 8.00% | 5.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 8.00% | ||||
Corporate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 27.00% | 53.00% | 25.00% | 55.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 42.00% | ||||
North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 30.00% | 21.00% | 32.00% | 17.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 15.00% | ||||
Latin America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 3.00% | 7.00% | 5.00% | 3.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 4.00% | ||||
Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 19.00% | 17.00% | 10.00% | 12.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 22.00% | ||||
Asia Pacific | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 4.00% | 0.00% | 6.00% | 4.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 3.00% | ||||
Africa/Eurasia | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Percent of Total Restructuring Charges Related to Segment | 12.00% | 5.00% | 14.00% | 4.00% | |
Percent of Restructuring Charges Related to Segment, Program-to-date Accumulated Charges | 6.00% |
Restructuring and Related Implementation Charges (Details 3) - 2012 Restructuring Program $ in Millions |
Sep. 30, 2016
USD ($)
|
---|---|
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | $ 1,156 |
Aftertax charges related to the Restructuring Program to date | 853 |
Employee-Related Costs | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | 452 |
Incremental Depreciation | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | 77 |
Asset Impairments | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | 15 |
Other | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the Restructuring Program to date | $ 612 |
Restructuring and Related Implementation Charges (Details 4) - 2012 Restructuring Program - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 217 | $ 215 | ||
Charges | 42 | $ 46 | 156 | $ 198 |
Cash payments | (52) | (157) | ||
Charges against assets | (9) | (17) | ||
Foreign exchange | 0 | 1 | ||
Ending Balance | 198 | 198 | ||
Employee-Related Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 76 | 84 | ||
Charges | 14 | 48 | ||
Cash payments | (17) | (58) | ||
Charges against assets | (1) | (3) | ||
Foreign exchange | 0 | 1 | ||
Ending Balance | 72 | 72 | ||
Incremental Depreciation | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | 0 | ||
Charges | 3 | 6 | ||
Cash payments | 0 | 0 | ||
Charges against assets | (3) | (6) | ||
Foreign exchange | 0 | 0 | ||
Ending Balance | 0 | 0 | ||
Asset Impairments | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 0 | 0 | ||
Charges | 5 | 8 | ||
Cash payments | 0 | 0 | ||
Charges against assets | (5) | (8) | ||
Foreign exchange | 0 | 0 | ||
Ending Balance | 0 | 0 | ||
Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 141 | 131 | ||
Charges | 20 | 94 | ||
Cash payments | (35) | (99) | ||
Charges against assets | 0 | 0 | ||
Foreign exchange | 0 | 0 | ||
Ending Balance | 126 | 126 | ||
Third party Incremental Cost | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | 17 | 74 | ||
Contract Termination | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | 3 | 19 | ||
Land and Building | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | $ 0 | $ 1 |
Inventories (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |||||
Raw materials and supplies | $ 259 | $ 261 | |||
Work-in-process | 44 | 45 | |||
Finished goods | 890 | 874 | |||
Total Inventories | $ 1,193 | $ 1,180 | [1] | ||
|
Shareholders' Equity (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|||
Changes in Shareholders' Equity [Roll Forward] | |||||||
Beginning balance | [1] | $ (44) | |||||
Net income | $ 746 | $ 770 | 1,958 | $ 1,969 | |||
Other comprehensive income (loss), net of tax | 16 | (318) | 118 | (587) | |||
Ending balance | 228 | 228 | |||||
Accumulated other comprehensive income (loss), cumulative translation losses | 3,001 | 3,001 | $ 3,087 | ||||
Accumulated other comprehensive income (loss), unrecognized retirement plan and other retiree benefits costs | 829 | 829 | $ 868 | ||||
Common Stock | |||||||
Changes in Shareholders' Equity [Roll Forward] | |||||||
Beginning balance | 1,466 | ||||||
Ending balance | 1,466 | 1,466 | |||||
Additional Paid-in Capital | |||||||
Changes in Shareholders' Equity [Roll Forward] | |||||||
Beginning balance | 1,438 | ||||||
Stock-based compensation expense | 102 | ||||||
Shares issued for stock options | 119 | ||||||
Shares issued for restricted stock units | (57) | ||||||
Other | 52 | ||||||
Ending balance | 1,654 | 1,654 | |||||
Unearned Compensation | |||||||
Changes in Shareholders' Equity [Roll Forward] | |||||||
Beginning balance | (12) | ||||||
Other | 9 | ||||||
Ending balance | (3) | (3) | |||||
Treasury Stock | |||||||
Changes in Shareholders' Equity [Roll Forward] | |||||||
Beginning balance | (18,102) | ||||||
Shares issued for stock options | 227 | ||||||
Shares issued for restricted stock units | 57 | ||||||
Treasury stock acquired | (913) | ||||||
Ending balance | (18,731) | (18,731) | |||||
Retained Earnings | |||||||
Changes in Shareholders' Equity [Roll Forward] | |||||||
Beginning balance | 18,861 | ||||||
Net income | 1,835 | ||||||
Dividends | (1,386) | ||||||
Ending balance | 19,310 | 19,310 | |||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Changes in Shareholders' Equity [Roll Forward] | |||||||
Beginning balance | (3,950) | ||||||
Other comprehensive income (loss), net of tax | 14 | $ (309) | 121 | $ (578) | |||
Ending balance | (3,829) | (3,829) | |||||
Noncontrolling Interests | |||||||
Changes in Shareholders' Equity [Roll Forward] | |||||||
Beginning balance | 255 | ||||||
Net income | 123 | ||||||
Other comprehensive income (loss), net of tax | (3) | ||||||
Dividends | (14) | ||||||
Ending balance | $ 361 | $ 361 | |||||
|
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Net income attributable to Colgate-Palmolive Company | ||||
Basic EPS | $ 702 | $ 726 | $ 1,835 | $ 1,842 |
Diluted EPS | $ 702 | $ 726 | $ 1,835 | $ 1,842 |
Shares | ||||
Basic EPS (in shares) | 891,900,000 | 900,100,000 | 893,200,000 | 904,100,000 |
Stock options and restricted stock units (in shares) | 7,300,000 | 6,800,000 | 7,000,000 | 7,700,000 |
Diluted EPS (in shares) | 899,200,000 | 906,900,000 | 900,200,000 | 911,800,000 |
Per Share | ||||
Basic EPS (in dollars per share) | $ 0.79 | $ 0.81 | $ 2.05 | $ 2.04 |
Diluted EPS (in dollars per share) | $ 0.78 | $ 0.80 | $ 2.04 | $ 2.02 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,980,457 | 4,389,790 | 1,212,685 | 3,515,898 |
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total Other comprehensive income (loss), net of tax | $ 16 | $ (318) | $ 118 | $ (587) |
Cumulative translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), Pretax | (10) | (352) | 76 | (628) |
Total Other comprehensive income (loss), net of tax | (2) | (341) | 86 | (626) |
Retirement plans and other retiree benefits adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before reclassifications, Pretax | 9 | 14 | 9 | 13 |
Reclassification from AOCI, Pretax | 15 | 22 | 47 | 66 |
Other comprehensive income (loss), Pretax | 24 | 36 | 56 | 79 |
Other comprehensive income (loss), before reclassifications, Net of Tax | 7 | 9 | 7 | 8 |
Reclassification from AOCI, Net of Tax | 9 | 16 | 32 | 44 |
Total Other comprehensive income (loss), net of tax | 16 | 25 | 39 | 52 |
Available-for-sale securities: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before reclassifications, Pretax | 0 | (7) | 0 | (27) |
Reclassification from AOCI, Pretax | (1) | 7 | (1) | 14 |
Other comprehensive income (loss), Pretax | (1) | 0 | (1) | (13) |
Other comprehensive income (loss), before reclassifications, Net of Tax | 0 | (5) | 0 | (18) |
Reclassification from AOCI, Net of Tax | (1) | 5 | (1) | 10 |
Total Other comprehensive income (loss), net of tax | (1) | 0 | (1) | (8) |
Cash flow hedges: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before reclassifications, Pretax | 1 | 16 | (6) | 17 |
Reclassification from AOCI, Pretax | 1 | (5) | 1 | (12) |
Other comprehensive income (loss), Pretax | 2 | 11 | (5) | 5 |
Other comprehensive income (loss), before reclassifications, Net of Tax | 0 | 11 | (4) | 12 |
Reclassification from AOCI, Net of Tax | 1 | (4) | 1 | (8) |
Total Other comprehensive income (loss), net of tax | 1 | 7 | (3) | 4 |
Total Other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), Pretax | 15 | (305) | 126 | (557) |
Total Other comprehensive income (loss), net of tax | $ 14 | $ (309) | $ 121 | $ (578) |
Retirement Plans and Other Retiree Benefits (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Pension Benefits, United States | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 0 | $ 0 | $ 1 | $ 1 |
Interest cost | 27 | 25 | 80 | 75 |
ESOP offset | 0 | 0 | 0 | 0 |
Expected return on plan assets | (27) | (29) | (82) | (87) |
Amortization of transition and prior service costs (credits) | 0 | 0 | 0 | 0 |
Amortization of actuarial loss (gain) | 10 | 12 | 30 | 36 |
Net periodic benefit cost | 10 | 8 | 29 | 25 |
Voluntary benefit plan contribution | 53 | 0 | ||
Pension Benefits, International | ||||
Components of net periodic benefit cost | ||||
Service cost | 4 | 4 | 12 | 14 |
Interest cost | 7 | 6 | 19 | 21 |
ESOP offset | 0 | 0 | 0 | 0 |
Expected return on plan assets | (6) | (6) | (17) | (20) |
Amortization of transition and prior service costs (credits) | 0 | 1 | 0 | 2 |
Amortization of actuarial loss (gain) | 2 | 3 | 6 | 8 |
Net periodic benefit cost | 7 | 8 | 20 | 25 |
Other Retiree Benefits | ||||
Components of net periodic benefit cost | ||||
Service cost | 4 | 5 | 10 | 13 |
Interest cost | 10 | 11 | 32 | 34 |
ESOP offset | 0 | 0 | (1) | (1) |
Expected return on plan assets | 0 | (1) | 0 | (2) |
Amortization of transition and prior service costs (credits) | 0 | 0 | 0 | 0 |
Amortization of actuarial loss (gain) | 3 | 6 | 11 | 20 |
Net periodic benefit cost | $ 17 | $ 21 | $ 52 | $ 64 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Increase in unrecognized tax benefits | $ 15 | ||
Tax benefit from foreign Supreme Court decision | $ 17 | $ 13 | |
Tax benefit from prior year tax positions | $ 14 |
Contingencies (Details) $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|---|
Jul. 21, 2016
case
|
Mar. 31, 2016
USD ($)
|
Sep. 30, 2015
appeal
|
Sep. 30, 2016
USD ($)
case
|
Sep. 30, 2016
USD ($)
case
country_and_territory
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2010
USD ($)
|
Dec. 31, 2009
USD ($)
|
|
Loss Contingencies [Line Items] | |||||||||
Minimum number of countries and territories serving consumers (more than) (in countries and territories) | country_and_territory | 200 | ||||||||
Brazilian internal revenue authority, matter 1 | $ 142 | $ 142 | |||||||
Loss contingency, number of appeals lost (in appeals) | appeal | 1 | ||||||||
Brazilian internal revenue authority, matter 2 | $ 59 | $ 59 | |||||||
Fine imposed french competition authority | $ 57 | ||||||||
Fine imposed french competition authority - as a result of Sanex acquisition | $ 25 | ||||||||
European competition matters - Swiss competition law authority | $ 6 | ||||||||
European competition matters - Italian competition law authority | $ 3 | ||||||||
Loss contingency accrual, period increase (decrease) | $ 14 | ||||||||
Litigation settlement, fine, amount | $ 14 | ||||||||
Loss contingency, pending claims, number (in cases) | case | 101 | 101 | |||||||
Loss contingency, new claims filed, number (in cases) | case | 27 | ||||||||
Loss contingency, claims settled and dismissed, number (in cases) | case | 1 | ||||||||
Loss contingency, claims dismissed, number (in cases) | case | 29 | ||||||||
Loss contingency, claims settled, number (in cases) | case | 20 | ||||||||
Minimum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Range of reasonably possible losses | $ 0 | $ 0 | |||||||
Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Range of reasonably possible losses | $ 250 | $ 250 |
Segment Information (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Apr. 01, 2016
segment
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
segment
|
Sep. 30, 2015
USD ($)
|
|
Segment Reporting [Abstract] | |||||
Number of product segments (in segments) | segment | 2 | ||||
Number of operating segments (in segments) | segment | 5 | ||||
Number of reportable segments (in segments) | segment | 5 | ||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | $ 3,867 | $ 3,999 | $ 11,474 | $ 12,135 | |
Total Operating profit | 1,071 | 1,136 | 2,882 | 2,928 | |
Charge for a previously disclosed litigation matter | 6 | 6 | |||
Gain on sale of land in Mexico | 97 | 0 | |||
Pretax remeasurements charge | 0 | 34 | |||
Gain on sale of South Pacific laundry detergent business | 0 | 187 | |||
CP Venezuela | |||||
Segment Reporting Information [Line Items] | |||||
Pretax remeasurements charge | 18 | 34 | |||
2012 Restructuring Program | |||||
Segment Reporting Information [Line Items] | |||||
Total 2012 Restructuring Program charges, pretax | $ 42 | 46 | $ 156 | 198 | |
Sales Revenue, Net | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of consolidated Net sales represented by sales outside US | 75.00% | 75.00% | |||
Percentage of consolidated Net sales coming from emerging markets | 50.00% | 50.00% | |||
MEXICO | |||||
Segment Reporting Information [Line Items] | |||||
Gain on sale of land in Mexico | $ 97 | $ 97 | |||
South Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Gain on sale of South Pacific laundry detergent business | 187 | 187 | |||
Operating Segments | Oral, Personal and Home Care | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | 3,306 | 3,453 | 9,789 | 10,499 | |
Total Operating profit | 1,009 | 1,003 | 2,834 | 2,898 | |
Operating Segments | Oral, Personal and Home Care | North America | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | 800 | 791 | 2,393 | 2,360 | |
Total Operating profit | 273 | 258 | 762 | 699 | |
Operating Segments | Oral, Personal and Home Care | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | 924 | 1,064 | 2,710 | 3,277 | |
Total Operating profit | 298 | 300 | 829 | 929 | |
Operating Segments | Oral, Personal and Home Care | Europe | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | 609 | 617 | 1,803 | 1,829 | |
Total Operating profit | 158 | 172 | 437 | 466 | |
Operating Segments | Oral, Personal and Home Care | Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | 723 | 735 | 2,163 | 2,279 | |
Total Operating profit | 230 | 229 | 668 | 676 | |
Operating Segments | Oral, Personal and Home Care | Africa/Eurasia | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | 250 | 246 | 720 | 754 | |
Total Operating profit | 50 | 44 | 138 | 128 | |
Operating Segments | Pet Nutrition | |||||
Segment Reporting Information [Line Items] | |||||
Total Net sales | 561 | 546 | 1,685 | 1,636 | |
Total Operating profit | 162 | 157 | 479 | 450 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating profit | $ (100) | $ (24) | $ (431) | $ (420) |
Fair Value Measurements and Financial Instruments (Details 1) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Designated derivative instruments | ||
Derivative assets, designated | $ 101 | $ 138 |
Derivative liabilities, designated | 25 | 5 |
Derivatives not designated | ||
Derivative assets not designated | 0 | 13 |
Derivative liabilities not designated | 0 | 0 |
Total derivative instruments, Assets | 101 | 151 |
Total derivative instruments, Liabilities | 25 | 5 |
Other financial instruments | ||
Total other financial instruments | 188 | 61 |
Other current assets | ||
Other financial instruments | ||
Marketable securities | 188 | 61 |
Other current assets | Interest rate swap contracts | ||
Designated derivative instruments | ||
Derivative assets, designated | 2 | 0 |
Other current assets | Foreign currency contracts | ||
Designated derivative instruments | ||
Derivative assets, designated | 92 | 131 |
Other current assets | Commodity contracts | ||
Designated derivative instruments | ||
Derivative assets, designated | 0 | 0 |
Other assets | Interest rate swap contracts | ||
Designated derivative instruments | ||
Derivative assets, designated | 7 | 7 |
Other assets | Foreign currency contracts | ||
Designated derivative instruments | ||
Derivative assets, designated | 0 | 0 |
Derivatives not designated | ||
Derivative assets not designated | 0 | 13 |
Other accruals | Interest rate swap contracts | ||
Designated derivative instruments | ||
Derivative liabilities, designated | 0 | 0 |
Other accruals | Foreign currency contracts | ||
Designated derivative instruments | ||
Derivative liabilities, designated | 24 | 5 |
Other accruals | Commodity contracts | ||
Designated derivative instruments | ||
Derivative liabilities, designated | 1 | 0 |
Other liabilities | Interest rate swap contracts | ||
Designated derivative instruments | ||
Derivative liabilities, designated | 0 | 0 |
Other liabilities | Foreign currency contracts | ||
Designated derivative instruments | ||
Derivative liabilities, designated | 0 | 0 |
Derivatives not designated | ||
Derivative liabilities not designated | $ 0 | $ 0 |
Fair Value Measurements and Financial Instruments (Details 2) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Carrying Value | ||
Debt Instrument [Line Items] | ||
Carrying value of long-term debt | $ 6,520 | $ 6,544 |
Fair Value, Inputs, Level 2 | ||
Debt Instrument [Line Items] | ||
Estimated fair value of long-term debt | $ 6,941 | $ 6,767 |
Fair Value Measurements and Financial Instruments (Details 3) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Foreign Currency Contracts | Derivatives Not Designated as Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | $ 6 | $ 102 | $ 6 | $ 102 |
Activity related to derivatives not designated as hedging instruments [Abstract] | ||||
Gain (loss) on instruments | 0 | 9 | 5 | 9 |
Gain (loss) on hedged items | 0 | (3) | (5) | (2) |
Fair Value Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 1,489 | 2,337 | 1,489 | 2,337 |
Activity related to fair value hedges [Abstract] | ||||
Gain (loss) on derivatives | (5) | 6 | (1) | 5 |
Gain (loss) on hedged items | 5 | (6) | 1 | (5) |
Fair Value Hedges | Foreign Currency Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 239 | 899 | 239 | 899 |
Activity related to fair value hedges [Abstract] | ||||
Gain (loss) on derivatives | 1 | (1) | (4) | (4) |
Gain (loss) on hedged items | (1) | 1 | 4 | 4 |
Fair Value Hedges | Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 1,250 | 1,438 | 1,250 | 1,438 |
Activity related to fair value hedges [Abstract] | ||||
Gain (loss) on derivatives | (6) | 7 | 3 | 9 |
Gain (loss) on hedged items | 6 | (7) | (3) | (9) |
Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 698 | 745 | 698 | 745 |
Activity related to cash flow hedges [Abstract] | ||||
Gain (loss) recognized in OCI | 1 | 16 | (6) | 17 |
Gain (loss) reclassified into Cost of sales | (1) | 5 | (1) | 12 |
Cash Flow Hedges | Foreign Currency Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 690 | 735 | 690 | 735 |
Activity related to cash flow hedges [Abstract] | ||||
Gain (loss) recognized in OCI | 3 | 17 | (6) | 18 |
Gain (loss) reclassified into Cost of sales | (1) | 5 | (1) | 13 |
Cash Flow Hedges | Commodity Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 8 | 10 | 8 | 10 |
Activity related to cash flow hedges [Abstract] | ||||
Gain (loss) recognized in OCI | (2) | (1) | 0 | (1) |
Gain (loss) reclassified into Cost of sales | 0 | 0 | 0 | (1) |
Net Investment Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 2,107 | 1,529 | 2,107 | 1,529 |
Activity related to net investment hedges [Abstract] | ||||
Gain (loss) on instruments | (17) | 29 | (56) | 87 |
Gain (loss) on hedged items | 17 | (30) | 56 | (88) |
Net Investment Hedges | Foreign Currency Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 917 | 729 | 917 | 729 |
Activity related to net investment hedges [Abstract] | ||||
Gain (loss) on instruments | (4) | 31 | (20) | 64 |
Gain (loss) on hedged items | 4 | (32) | 20 | (65) |
Net Investment Hedges | Foreign Currency Debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional value | 1,190 | 800 | 1,190 | 800 |
Activity related to net investment hedges [Abstract] | ||||
Gain (loss) on instruments | (13) | (2) | (36) | 23 |
Gain (loss) on hedged items | $ 13 | $ 2 | $ 36 | $ (23) |
Fair Value Measurements and Financial Instruments (Details 4) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Other current assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities | $ 188 | $ 61 |
Assets | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held-to-maturity Securities | 61 | |
Held-to-maturity Securities, Fair Value | 93 | |
Fair Value, Inputs, Level 1 | Other current assets | Deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities | 188 | |
Fair Value, Inputs, Level 2 | Other current assets | Bonds Issued By Argentinian Government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities | 57 | |
Fair Value, Inputs, Level 2 | Other assets | Bonds Issued By Argentinian Government | Estimate of Fair Value Measurement | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities | $ 4 |
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