Retirement Plans and Other Retiree Benefits

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Retirement Plans and Other Retiree Benefits

Retirement Plans and Other Retiree Benefits

Components of Net periodic benefit cost for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30,
	Pension Benefits								Other Retiree Benefits
	United States				International
	2023		2022		2023		2022		2023		2022
Service cost	$	—	$	1	$	3	$	3	$	2	$	6
Interest cost	25		16		8		—		11		9
Expected return on plan assets	(21)		(27)		(5)		1		—		(1)
Amortization of actuarial loss (gain)	11		12		1		1		(4)		6
Net periodic benefit cost	$	15	$	2	$	7	$	5	$	9	$	20
Other postretirement charges	3		4		—		(2)		—		(7)
Total pension cost	$	18	$	6	$	7	$	3	$	9	$	13

	Six Months Ended June 30,
	Pension Benefits								Other Retiree Benefits
	United States				International
	2023		2022		2023		2022		2023		2022
Service cost	$	—	$	1	$	6	$	8	$	4	$	11
Interest cost	48		32		16		6		22		19
Expected return on plan assets	(41)		(52)		(9)		(5)		—		(1)
Amortization of actuarial loss (gain)	22		23		2		3		(8)		11
Net periodic benefit cost	$	29	$	4	$	15	$	12	$	18	$	40
Other postretirement charges	4		13		—		—		—		1
ERISA litigation matter	267		—		—		—		—		—
Total pension cost	$	300	$	17	$	15	$	12	$	18	$	41

Other postretirement charges for the three months ended June 30, 2023 included pension and other charges amounting to $3 and for the three months ended June 30, 2022 included an adjustment of $5, in each case incurred pursuant to the 2022 Global Productivity Initiative. Other postretirement charges for the six months ended June 30, 2023 and 2022 included pension and other charges of $4 and $14, respectively incurred pursuant to the 2022 Global Productivity Initiative.

For the three and six months ended June 30, 2023 and 2022, the Company made no voluntary contributions to its U.S. postretirement plans.

In the first quarter of 2023, the Company recorded a charge of $267 as a result of a decision of the United States Court of Appeals for the Second Circuit (the “Second Circuit”) affirming a grant of summary judgment to the plaintiffs in a lawsuit under the Employee Retirement Income Security Act seeking the recalculation of benefits and other relief associated with a 2005 residual annuity amendment to the Colgate-Palmolive Company Employees’ Retirement Income Plan (the “Retirement Plan”). The impact of the decision will result in an increase in the obligations of the Retirement Plan, which based on the current funded status of the Retirement Plan will require no immediate cash contribution by the Company. See Note 10, Contingencies for additional information.

In the third quarter of 2022, the Company amended its domestic postretirement plan to limit eligibility for certain existing employees and change the way medical coverage and subsidies are delivered for certain current and future retirees. As required, the Company remeasured the obligation for the domestic postretirement plan, which resulted in the reduction of the projected benefit obligation and a corresponding actuarial gain of $398. The reduction of the projected benefit obligation and actuarial gain were primarily due to an increase in the discount rate since December 31, 2021 and the impact

of the plan amendment. The actuarial gain was recorded in Accumulated other comprehensive income and is being amortized over future periods.