x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Ohio | 1-434 | 31-0411980 | ||
(State of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
One Procter & Gamble Plaza, Cincinnati, Ohio | 45202 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | þ | Accelerated filer | ¨ | ||||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ | ||||
Emerging growth company | ¨ |
Item 1. | Financial Statements |
Three Months Ended December 31 | Six Months Ended December 31 | ||||||||||||||
Amounts in millions except per share amounts | 2018 | 2017 | 2018 | 2017 | |||||||||||
NET SALES | $ | $ | $ | $ | |||||||||||
Cost of products sold | |||||||||||||||
Selling, general and administrative expense | |||||||||||||||
OPERATING INCOME | |||||||||||||||
Interest expense | |||||||||||||||
Interest income | |||||||||||||||
Other non-operating income, net | |||||||||||||||
EARNINGS BEFORE INCOME TAXES | |||||||||||||||
Income taxes | |||||||||||||||
NET EARNINGS | |||||||||||||||
Less: Net earnings attributable to noncontrolling interests | |||||||||||||||
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE | $ | $ | $ | $ | |||||||||||
NET EARNINGS PER SHARE (1) | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | $ | $ | $ | $ | |||||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
(1) |
Three Months Ended December 31 | Six Months Ended December 31 | ||||||||||||||
Amounts in millions | 2018 | 2017 | 2018 | 2017 | |||||||||||
NET EARNINGS | $ | $ | $ | $ | |||||||||||
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | |||||||||||||||
Financial statement foreign currency translation | ( | ) | ( | ) | |||||||||||
Unrealized gains/(losses) on hedges | ( | ) | ( | ) | |||||||||||
Unrealized gains/(losses) on investment securities | ( | ) | ( | ) | |||||||||||
Unrealized gains/(losses) on defined benefit retirement plans | |||||||||||||||
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | ( | ) | ( | ) | |||||||||||
TOTAL COMPREHENSIVE INCOME | |||||||||||||||
Less: Total comprehensive income attributable to noncontrolling interests | |||||||||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE | $ | $ | $ | $ |
Amounts in millions | December 31, 2018 | June 30, 2018 | ||||||||||
Assets | ||||||||||||
CURRENT ASSETS | ||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||
Available-for-sale investment securities | ||||||||||||
Accounts receivable | ||||||||||||
INVENTORIES | ||||||||||||
Materials and supplies | ||||||||||||
Work in process | ||||||||||||
Finished goods | ||||||||||||
Total inventories | ||||||||||||
Prepaid expenses and other current assets | ||||||||||||
TOTAL CURRENT ASSETS | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | ||||||||||||
GOODWILL | ||||||||||||
TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET | ||||||||||||
OTHER NONCURRENT ASSETS | ||||||||||||
TOTAL ASSETS | $ | $ | ||||||||||
Liabilities and Shareholders' Equity | ||||||||||||
CURRENT LIABILITIES | ||||||||||||
Accounts payable | $ | $ | ||||||||||
Accrued and other liabilities | ||||||||||||
Debt due within one year | ||||||||||||
TOTAL CURRENT LIABILITIES | ||||||||||||
LONG-TERM DEBT | ||||||||||||
DEFERRED INCOME TAXES | ||||||||||||
OTHER NONCURRENT LIABILITIES | ||||||||||||
TOTAL LIABILITIES | ||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||
Preferred stock | ||||||||||||
Common stock – shares issued – | December 2018 | |||||||||||
June 2018 | ||||||||||||
Additional paid-in capital | ||||||||||||
Reserve for ESOP debt retirement | ( | ) | ( | ) | ||||||||
Accumulated other comprehensive income/(loss) | ( | ) | ( | ) | ||||||||
Treasury stock | ( | ) | ( | ) | ||||||||
Retained earnings | ||||||||||||
Noncontrolling interest | ||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | ||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | $ |
Three Months Ended December 31, 2018 | |||||||||||||||||||||||||||||
Dollars in millions; shares in thousands | Common Stock | Preferred Stock | Add-itional Paid-In Capital | Reserve for ESOP Debt Retirement | Accumu-lated Other Comp-rehensive Income/(Loss) | Treasury Stock | Retained Earnings | Non-controlling Interest | Total Share-holders' Equity | ||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||
BALANCE SEPTEMBER 30, 2018 | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | $ | $ | $ | |||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||
Other comprehensive income/(loss) | ( | ) | ( | ) | |||||||||||||||||||||||||
Dividends and dividend equivalents ($0.7172 per share): | |||||||||||||||||||||||||||||
Common | ( | ) | ( | ) | |||||||||||||||||||||||||
Preferred, net of tax benefits | ( | ) | ( | ) | |||||||||||||||||||||||||
Treasury stock purchases | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Employee stock plans | ( | ) | |||||||||||||||||||||||||||
Preferred stock conversions | ( | ) | |||||||||||||||||||||||||||
ESOP debt impacts | ( | ) | ( | ) | |||||||||||||||||||||||||
Noncontrolling interest, net | |||||||||||||||||||||||||||||
BALANCE DECEMBER 31, 2018 | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | $ | $ | $ |
Six Months Ended December 31, 2018 | |||||||||||||||||||||||||||||
Dollars in millions; shares in thousands | Common Stock | Preferred Stock | Add-itional Paid-In Capital | Reserve for ESOP Debt Retirement | Accumu-lated Other Comp-rehensive Income/(Loss) | Treasury Stock | Retained Earnings | Non-controlling Interest | Total Share-holders' Equity | ||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||
BALANCE JUNE 30, 2018 | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | $ | $ | $ | |||||||||||||||||
Impact of adoption of new accounting standards | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||
Other comprehensive income/(loss) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Dividends and dividend equivalents ($1.4344 per share): | |||||||||||||||||||||||||||||
Common | ( | ) | ( | ) | |||||||||||||||||||||||||
Preferred, net of tax benefits | ( | ) | ( | ) | |||||||||||||||||||||||||
Treasury stock purchases | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Employee stock plans | ( | ) | |||||||||||||||||||||||||||
Preferred stock conversions | ( | ) | |||||||||||||||||||||||||||
ESOP debt impacts | |||||||||||||||||||||||||||||
Noncontrolling interest, net | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
BALANCE DECEMBER 31, 2018 | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | $ | $ | $ |
Three Months Ended December 31, 2017 | |||||||||||||||||||||||||||||
Dollars in millions; shares in thousands | Common Stock | Preferred Stock | Add-itional Paid-In Capital | Reserve for ESOP Debt Retirement | Accumu-lated Other Comp-rehensive Income/(Loss) | Treasury Stock | Retained Earnings | Non-controlling Interest | Total Share-holders' Equity | ||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||
BALANCE SEPTEMBER 30, 2017 | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | $ | $ | $ | |||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||
Other comprehensive income/(loss) | |||||||||||||||||||||||||||||
Dividends and dividend equivalents ($0.6896 per share): | |||||||||||||||||||||||||||||
Common | ( | ) | ( | ) | |||||||||||||||||||||||||
Preferred, net of tax benefits | ( | ) | ( | ) | |||||||||||||||||||||||||
Treasury stock purchases | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Employee stock plans | |||||||||||||||||||||||||||||
Preferred stock conversions | ( | ) | |||||||||||||||||||||||||||
ESOP debt impacts | |||||||||||||||||||||||||||||
Noncontrolling interest, net | ( | ) | ( | ) | |||||||||||||||||||||||||
BALANCE DECEMBER 31, 2017 | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | $ | $ | $ |
Six Months Ended December 31, 2017 | |||||||||||||||||||||||||||||
Dollars in millions; shares in thousands | Common Stock | Preferred Stock | Add-itional Paid-In Capital | Reserve for ESOP Debt Retirement | Accumu-lated Other Comp-rehensive Income/(Loss) | Treasury Stock | Retained Earnings | Non-controlling Interest | Total Share-holders' Equity | ||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||
BALANCE JUNE 30, 2017 | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | $ | $ | $ | |||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||
Other comprehensive income/(loss) | |||||||||||||||||||||||||||||
Dividends and dividend equivalents ($1.3792 per share): | |||||||||||||||||||||||||||||
Common | ( | ) | ( | ) | |||||||||||||||||||||||||
Preferred, net of tax benefits | ( | ) | ( | ) | |||||||||||||||||||||||||
Treasury stock purchases | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Employee stock plans | |||||||||||||||||||||||||||||
Preferred stock conversions | ( | ) | |||||||||||||||||||||||||||
ESOP debt impacts | |||||||||||||||||||||||||||||
Noncontrolling interest, net | ( | ) | ( | ) | |||||||||||||||||||||||||
BALANCE DECEMBER 31, 2017 | $ | $ | $ | ($ | ) | ($ | ) | ($ | ) | $ | $ | $ |
Six Months Ended December 31 | |||||||
Amounts in millions | 2018 | 2017 | |||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | $ | $ | |||||
OPERATING ACTIVITIES | |||||||
Net earnings | |||||||
Depreciation and amortization | |||||||
Share-based compensation expense | |||||||
Deferred income taxes | ( | ) | |||||
Gain on sale of assets | ( | ) | ( | ) | |||
Changes in: | |||||||
Accounts receivable | ( | ) | ( | ) | |||
Inventories | ( | ) | ( | ) | |||
Accounts payable, accrued and other liabilities | |||||||
Other operating assets and liabilities | ( | ) | |||||
Other | |||||||
TOTAL OPERATING ACTIVITIES | |||||||
INVESTING ACTIVITIES | |||||||
Capital expenditures | ( | ) | ( | ) | |||
Proceeds from asset sales | |||||||
Acquisitions, net of cash acquired | ( | ) | ( | ) | |||
Purchases of short-term investments | ( | ) | ( | ) | |||
Proceeds from sales and maturities of short-term investments | |||||||
Change in other investments | ( | ) | |||||
TOTAL INVESTING ACTIVITIES | ( | ) | ( | ) | |||
FINANCING ACTIVITIES | |||||||
Dividends to shareholders | ( | ) | ( | ) | |||
Change in short-term debt | |||||||
Additions to long-term debt | |||||||
Reductions of long-term debt | ( | ) | ( | ) | |||
Treasury stock purchases | ( | ) | ( | ) | |||
Impact of stock options and other | |||||||
TOTAL FINANCING ACTIVITIES | ( | ) | ( | ) | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ( | ) | |||||
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $ | $ |
• | Beauty: Hair Care (Conditioner, Shampoo, Styling Aids, Treatments); Skin and Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care); |
• | Grooming: Shave Care (Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, Other Shave Care); Appliances |
• | Health Care: Oral Care (Toothbrushes, Toothpaste, Other Oral Care); Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Vitamins/Minerals/Supplements, Other Personal Health Care); |
• | Fabric & Home Care: Fabric Care (Fabric Enhancers, Laundry Additives, Laundry Detergents); Home Care (Air Care, Dish Care, P&G Professional, Surface Care); and |
• | Baby, Feminine & Family Care: Baby Care (Baby Wipes, Diapers and Pants); Feminine Care (Adult Incontinence, Feminine Care); Family Care (Paper Towels, Tissues, Toilet Paper). |
% of Net sales by Business Unit (1) | |||||||
Three Months Ended December 31 | Six Months Ended December 31 | ||||||
2018 | 2017 | 2018 | 2017 | ||||
Fabric Care | |||||||
Baby Care | |||||||
Home Care | |||||||
Skin and Personal Care | |||||||
Hair Care | |||||||
Family Care | |||||||
Oral Care | |||||||
Shave Care | |||||||
Feminine Care | |||||||
All Other | |||||||
Total |
(1) |
Three Months Ended December 31 | Six Months Ended December 31 | |||||||||||||||||||||||
Net Sales | Earnings/(Loss) Before Income Taxes | Net Earnings/(Loss) | Net Sales | Earnings/(Loss) Before Income Taxes | Net Earnings/(Loss) | |||||||||||||||||||
Beauty | 2018 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
2017 | ||||||||||||||||||||||||
Grooming | 2018 | |||||||||||||||||||||||
2017 | ||||||||||||||||||||||||
Health Care | 2018 | |||||||||||||||||||||||
2017 | ||||||||||||||||||||||||
Fabric & Home Care | 2018 | |||||||||||||||||||||||
2017 | ||||||||||||||||||||||||
Baby, Feminine & Family Care | 2018 | |||||||||||||||||||||||
2017 | ||||||||||||||||||||||||
Corporate | 2018 | ( | ) | ( | ) | ( | ) | |||||||||||||||||
2017 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Total Company | 2018 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
2017 |
Beauty | Grooming | Health Care | Fabric & Home Care | Baby, Feminine & Family Care | Total Company | ||||||||||||||||||
Goodwill at June 30, 2018 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Acquisitions and divestitures | |||||||||||||||||||||||
Translation and other | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Goodwill at December 31, 2018 | $ | $ | $ | $ | $ | $ |
Gross Carrying Amount | Accumulated Amortization | ||||||
Intangible assets with determinable lives | $ | $ | ( | ) | |||
Intangible assets with indefinite lives | |||||||
Total identifiable intangible assets | $ | $ | ( | ) |
Approximate Percent Change in Estimated Fair Value | |||||
+25 bps Discount Rate | -25 bps Growth Rate | ||||
Shave Care goodwill reporting unit | ( | )% | ( | )% | |
Gillette indefinite-lived intangible asset | ( | )% | ( | )% |
CONSOLIDATED AMOUNTS | Three Months Ended December 31 | Six Months Ended December 31 | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||
Less: Net earnings attributable to noncontrolling interests | |||||||||||||||
Net earnings attributable to P&G (Diluted) | |||||||||||||||
Preferred dividends, net of tax | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net earnings attributable to P&G available to common shareholders (Basic) | $ | $ | $ | $ | |||||||||||
SHARES IN MILLIONS | |||||||||||||||
Basic weighted average common shares outstanding | |||||||||||||||
Add: Effect of dilutive securities | |||||||||||||||
Conversion of preferred shares (1) | |||||||||||||||
Impact of stock options and other unvested equity awards (2) | |||||||||||||||
Diluted weighted average common shares outstanding | |||||||||||||||
NET EARNINGS PER SHARE (3) | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | $ | $ | $ | $ |
(1) |
(2) |
(3) |
Three Months Ended December 31 | Six Months Ended December 31 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Share-based compensation expense | $ | $ | $ | $ | |||||||||||
Net periodic benefit cost for pension benefits (1) | |||||||||||||||
Net periodic benefit cost/(credit) for other retiree benefits (1) | ( | ) | ( | ) | ( | ) | ( | ) |
(1) |
Fair Value Asset | |||||||
December 31, 2018 | June 30, 2018 | ||||||
Investments: | |||||||
U.S. government securities | $ | $ | |||||
Corporate bond securities | |||||||
Other investments | |||||||
Total | $ | $ |
Notional Amount | Fair Value Asset | Fair Value (Liability) | |||||||||||||||||||||
December 31, 2018 | June 30, 2018 | December 31, 2018 | June 30, 2018 | December 31, 2018 | June 30, 2018 | ||||||||||||||||||
DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | |||||||||||||||||||||||
Interest rate contracts | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS | |||||||||||||||||||||||
Foreign currency interest rate contracts | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||
TOTAL DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||
TOTAL DERIVATIVES AT FAIR VALUE | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) |
Amount of Gain/(Loss) Recognized in OCI on Derivatives | |||||||||||||||
Three Months Ended December 31 | Six Months Ended December 31 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2) | |||||||||||||||
Foreign exchange contracts | $ | $ | ( | ) | $ | $ | ( | ) |
(1) |
(2) |
Amount of Gain/(Loss) Recognized in Earnings | |||||||||||||||
Three Months Ended December 31 | Six Months Ended December 31 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | |||||||||||||||
Interest rate contracts | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | |||||||||||||||
Foreign currency contracts | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Changes in Accumulated Other Comprehensive Income/(Loss) by Component | |||||||||||||||||||
Hedges | Investment Securities | Pension and Other Retiree Benefits | Financial Statement Translation | Total AOCI | |||||||||||||||
Balance at June 30, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
OCI before reclassifications (1) | ( | ) | ( | ) | |||||||||||||||
Amounts reclassified from AOCI (2) | ( | ) | |||||||||||||||||
Net current period OCI | ( | ) | ( | ) | |||||||||||||||
Reclassification to retained earnings in accordance with ASU 2018-02 (3) | ( | ) | ( | ) | ( | ) | |||||||||||||
Less: Other comprehensive income/(loss) attributable to non-controlling interests | ( | ) | ( | ) | |||||||||||||||
Balance at December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(1) |
(2) |
(3) |
• | Investment securities: amounts reclassified from AOCI into Other non-operating income, net. |
• | Pension and other retiree benefits: amounts reclassified from AOCI into Other non-operating income, net and included in the computation of net periodic postretirement costs. |
• |
Charges Previously Reported (Three Months Ended September 30, 2018) | Charges for the Three Months Ended December 31, 2018 | Six Months Ended December 31, 2018 | |||||||||||||||||||||
Reserve Balance June 30, 2018 | Cash Spent | Charges Against Assets | Reserve Balance December 31, 2018 | ||||||||||||||||||||
Separations | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||
Asset-related costs | ( | ) | |||||||||||||||||||||
Other costs | ( | ) | |||||||||||||||||||||
Total | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ |
Three Months Ended December 31, 2018 | Six Months Ended December 31, 2018 | ||||||
Beauty | $ | $ | |||||
Grooming | |||||||
Health Care | |||||||
Fabric & Home Care | |||||||
Baby, Feminine & Family Care | |||||||
Corporate (1) | |||||||
Total Company | $ | $ |
(1) |
Amounts in Millions | November 30, 2018 | ||
Current assets | $ | ||
Property, plant and equipment | |||
Intangible assets | |||
Goodwill | |||
Other non-current assets | |||
Total Assets Acquired | $ | ||
Current liabilities | $ | ||
Deferred income taxes | |||
Non-current liabilities | |||
Total Liabilities Acquired | $ | ||
Noncontrolling Interest (1) | $ | ||
Net Assets Acquired | $ |
(1) |
Amounts in Millions | Estimated Fair Value | Avg Remaining Useful Life | |||
Intangible Assets with Determinable Lives | |||||
Brands | $ | ||||
Patents and technology | |||||
Customer relationships | |||||
Total | $ | ||||
Intangible Assets with Indefinite Lives | |||||
Brands | |||||
Total Intangible Assets | $ |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
• | Overview |
• | Summary of Results – Six Months Ended December 31, 2018 |
• | Economic Conditions and Uncertainties |
• | Results of Operations – Three and Six Months Ended December 31, 2018 |
• | Business Segment Discussion – Three and Six Months Ended December 31, 2018 |
• | Liquidity and Capital Resources |
• | Reconciliation of Measures Not Defined by U.S. GAAP |
Reportable Segments | Product Categories (Sub-Categories) | Major Brands |
Beauty | Hair Care (Conditioner, Shampoo, Styling Aids, Treatments) | Head & Shoulders, Pantene, Rejoice |
Skin and Personal Care (Antiperspirant and Deodorant, Personal Cleansing, Skin Care) | Olay, Old Spice, Safeguard, SK-II | |
Grooming | Grooming (1) (Shave Care - Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, Other Shave Care; Appliances) | Braun, Fusion, Gillette, Mach3, Prestobarba, Venus |
Health Care | Oral Care (Toothbrushes, Toothpaste, Other Oral Care) | Crest, Oral-B |
Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Vitamins/Minerals/Supplements, Other Personal Health Care) | Metamucil, Prilosec, Vicks | |
Fabric & Home Care | Fabric Care (Fabric Enhancers, Laundry Additives, Laundry Detergents) | Ariel, Downy, Gain, Tide |
Home Care (Air Care, Dish Care, P&G Professional, Surface Care) | Cascade, Dawn, Febreze, Mr. Clean, Swiffer | |
Baby, Feminine & Family Care | Baby Care (Baby Wipes, Diapers and Pants) | Luvs, Pampers |
Feminine Care (Adult Incontinence, Feminine Care) | Always, Tampax | |
Family Care (Paper Towels, Tissues, Toilet Paper) | Bounty, Charmin, Puffs |
(1) | The Grooming product category is comprised of the Shave Care and Appliances Global Business Units. |
Three Months Ended December 31, 2018 | Six Months Ended December 31, 2018 | ||||||
Net Sales | Net Earnings | Net Sales | Net Earnings | ||||
Beauty | 20% | 24% | 20% | 25% | |||
Grooming | 9% | 12% | 9% | 11% | |||
Health Care | 13% | 16% | 12% | 14% | |||
Fabric & Home Care | 32% | 26% | 33% | 28% | |||
Baby, Feminine & Family Care | 26% | 22% | 26% | 22% | |||
Total Company | 100% | 100% | 100% | 100% |
• | Net sales were unchanged at $34.1 billion. Organic sales, which exclude the impacts of acquisitions and divestitures and foreign exchange, increased 4%. Organic sales increased 8% in Beauty, 5% in Health Care and Fabric & Home Care and 1% in Baby, Feminine & Family Care. Organic sales were unchanged in Grooming. |
• | Unit volume increased 2%, with organic volume up 3%. Volume increased mid-single digits in Fabric & Home Care, low single digits in Beauty, Health Care and Baby, Feminine & Family Care and was unchanged in Grooming. Excluding the impacts of the PGT Healthcare partnership dissolution and the Merck OTC acquisition, organic volume increased mid-single digits in Health Care. |
• | Net earnings were $6.4 billion, an increase of $996 million, or 18% versus the prior year due to a reduction in current year income tax expense (due primarily to the ongoing impacts of the U.S. Tax Act), a current year gain on the dissolution of the PGT Healthcare partnership and base period charges related to the transitional impacts of the U.S. Tax Act. |
• | Diluted net earnings per share increased 22% to $2.44 due primarily to the increase in net earnings and a reduction in shares outstanding due to share repurchases. |
• | Net earnings attributable to Procter & Gamble increased $1.0 billion or 20% versus the prior year period to $6.4 billion. |
• | Core net earnings attributable to Procter & Gamble, which represents net earnings excluding the current period gain on the dissolution of the PGT Healthcare partnership, incremental restructuring charges in both periods and the base period charges related to the transitional impacts of the U.S. Tax Act, increased 1% to $6.2 billion. Core net earnings per share increased 4% to $2.36 due to the increase in Core net earnings and the reduction in shares outstanding. |
• | Operating cash flow was $7.6 billion. Adjusted free cash flow, which is operating cash flow less capital expenditures and certain other impacts, was $6.0 billion. Adjusted free cash flow productivity was 99%. Adjusted free cash flow and adjusted free cash flow productivity are defined in the section entitled "Reconciliation of Measures not defined by U.S. GAAP." |
Three Months Ended December 31 | |||||
Amounts in millions, except per share amounts | 2018 | 2017 | % Chg | ||
Net sales | $17,438 | $17,395 | —% | ||
Operating income | 3,896 | 3,919 | (1)% | ||
Net earnings | 3,216 | 2,561 | 26% | ||
Net earnings attributable to Procter & Gamble | 3,194 | 2,495 | 28% | ||
Diluted net earnings per common share | 1.22 | 0.93 | 31% | ||
Core net earnings per common share | 1.25 | 1.19 | 5% | ||
Three Months Ended December 31 | |||||
COMPARISONS AS A PERCENTAGE OF NET SALES | 2018 | 2017 | Basis Pt Chg | ||
Gross profit | 48.9% | 49.9% | (100) | ||
Selling, general & administrative expense | 26.5% | 27.4% | (90) | ||
Operating income | 22.3% | 22.5% | (20) | ||
Earnings before income taxes | 22.5% | 23.2% | (70) | ||
Net earnings | 18.4% | 14.7% | 370 | ||
Net earnings attributable to Procter & Gamble | 18.3% | 14.3% | 400 |
Net Sales Change Drivers 2018 vs. 2017 (Three Months Ended December 31) (1) | |||||||||||||
Volume with Acquisitions & Divestitures | Volume Excluding Acquisitions & Divestitures | Foreign Exchange | Price | Mix | Other (2) | Net Sales Growth | |||||||
Beauty | 1% | —% | (4)% | 2% | 5% | —% | 4% | ||||||
Grooming | (4)% | (4)% | (5)% | 1% | —% | (1)% | (9)% | ||||||
Health Care | 3% | 4% | (3)% | 1% | —% | (1)% | —% | ||||||
Fabric & Home Care | 4% | 4% | (3)% | 1% | 1% | (1)% | 2% | ||||||
Baby, Feminine & Family Care | 1% | 1% | (4)% | 1% | 1% | —% | (1)% | ||||||
Total Company | 2% | 2% | (4)% | 1% | 1% | —% | —% |
• | a 90 basis point decline due to higher commodity costs, |
• | a 120 basis point decline from unfavorable product mix (primarily within segments due to the growth of lower margin products forms in certain categories and due to the disproportionate growth of the Fabric Care category which has lower than company-average margins) and other impacts and |
• | a 60 basis point decline from unfavorable foreign exchange |
• | a 1,550 basis-point reduction due to prior year transitional impacts from the U.S. Tax Act, |
• | a 410 basis-point reduction from the on-going impacts of U.S. Tax reform. The lower blended U.S. federal tax rate on current year earnings was partially offset by the impact of recording a year-to-date (6 month) impact in December 2017 upon passage of the tax reform. |
• | a 150 basis-point reduction from excess tax benefits from share-based compensation (170 basis points in the current year versus 20 basis points in the prior year), |
• | a 90 basis-point reduction from discrete impacts related to uncertain tax positions (90 basis points in the current year versus 0 basis points in the prior year), |
• | a 340 basis-point increase from unfavorable impacts from geographic mix of earnings. |
Six Months Ended December 31 | |||||
Amounts in millions, except per share amounts | 2018 | 2017 | % Chg | ||
Net sales | $34,128 | $34,048 | —% | ||
Operating income | 7,450 | 7,567 | (2)% | ||
Net earnings | 6,427 | 5,431 | 18% | ||
Net earnings attributable to Procter & Gamble | 6,393 | 5,348 | 20% | ||
Diluted net earnings per common share | 2.44 | 2.00 | 22% | ||
Core net earnings per common share | $2.36 | $2.28 | 4% | ||
Six Months Ended December 31 | |||||
COMPARISONS AS A PERCENTAGE OF NET SALES | 2018 | 2017 | Basis Pt Chg | ||
Gross profit | 49.0% | 50.1% | (110) | ||
Selling, general & administrative expense | 27.2% | 27.9% | (70) | ||
Operating income | 21.8% | 22.2% | (40) | ||
Earnings before income taxes | 23.0% | 22.9% | 10 | ||
Net earnings | 18.8% | 16.0% | 280 | ||
Net earnings attributable to Procter & Gamble | 18.7% | 15.7% | 300 |
Net Sales Change Drivers 2018 vs. 2017 (Six Months Ended December 31) (1) | |||||||||||||
Volume with Acquisitions & Divestitures | Volume Excluding Acquisitions & Divestitures | Foreign Exchange | Price | Mix | Other (2) | Net Sales Growth | |||||||
Beauty | 2% | 2% | (4)% | 2% | 4% | —% | 4% | ||||||
Grooming | —% | —% | (5)% | 1% | (1)% | —% | (5)% | ||||||
Health Care | 2% | 4% | (2)% | 1% | (1)% | (1)% | (1)% | ||||||
Fabric & Home Care | 4% | 5% | (2)% | —% | —% | —% | 2% | ||||||
Baby, Feminine & Family Care | 1% | 1% | (3)% | —% | —% | —% | (2)% | ||||||
Total Company | 2% | 3% | (3)% | —% | 1% | —% | —% |
• | a 100 basis point decline due to higher commodity costs, |
• | a 70 basis point decline from unfavorable product mix (primarily within segments due to the growth of lower margin products forms and club channels in certain categories and due to the disproportionate growth of the Fabric Care category which has lower than company-average margins) and other impacts and |
• | a 60 basis point decline from unfavorable foreign exchange |
• | an 810 basis-point reduction due to prior year transitional impacts from the U.S. Tax Act, |
• | a 490 basis-point reduction from the impact of the lower blended U.S. federal tax rate on current year earnings versus the prior year rate, |
• | an 80 basis-point reduction from the tax impact of the gain on the dissolution of the PGT Healthcare partnership, |
• | a 40 basis-point reduction from excess tax benefits from share-based compensation (110 basis points in the current year versus 70 basis points in the prior year), |
• | a 20 basis-point reduction from discrete impacts related to uncertain tax positions (20 basis points in the current year versus 0 basis points in the prior year), |
• | a 240 basis-point increase from unfavorable impacts from geographic mix of earnings. |
Three Months Ended December 31, 2018 | ||||||||||||||||||||
Net Sales | % Change Versus Year Ago | Earnings/(Loss) Before Income Taxes | % Change Versus Year Ago | Net Earnings/(Loss) | % Change Versus Year Ago | |||||||||||||||
Beauty | $ | 3,357 | 4 | % | $ | 964 | 13 | % | $ | 772 | 18 | % | ||||||||
Grooming | 1,617 | (9 | )% | 448 | (16 | )% | 378 | (11 | )% | |||||||||||
Health Care | 2,220 | — | % | 669 | — | % | 520 | 14 | % | |||||||||||
Fabric & Home Care | 5,557 | 2 | % | 1,134 | 3 | % | 860 | 20 | % | |||||||||||
Baby, Feminine & Family Care | 4,558 | (1 | )% | 930 | — | % | 707 | 18 | % | |||||||||||
Corporate | 129 | 2 | % | (229 | ) | N/A | (21 | ) | N/A | |||||||||||
Total Company | $ | 17,438 | — | % | $ | 3,916 | (3 | )% | $ | 3,216 | 26 | % |
Six Months Ended December 31, 2018 | ||||||||||||||||||||
Net Sales | % Change Versus Year Ago | Earnings/(Loss) Before Income Taxes | % Change Versus Year Ago | Net Earnings/(Loss) | % Change Versus Year Ago | |||||||||||||||
Beauty | $ | 6,646 | 4 | % | $ | 1,911 | 13 | % | $ | 1,531 | 19 | % | ||||||||
Grooming | 3,179 | (5 | )% | 865 | (8 | )% | 718 | (5 | )% | |||||||||||
Health Care | 4,065 | (1 | )% | 1,109 | (1 | )% | 852 | 12 | % | |||||||||||
Fabric & Home Care | 11,045 | 2 | % | 2,278 | — | % | 1,737 | 17 | % | |||||||||||
Baby, Feminine & Family Care | 8,948 | (2 | )% | 1,832 | (3 | )% | 1,399 | 14 | % | |||||||||||
Corporate | 245 | 4 | % | (139 | ) | N/A | 190 | N/A | ||||||||||||
Total Company | $ | 34,128 | — | % | $ | 7,856 | 1 | % | $ | 6,427 | 18 | % |
• | Volume in Hair Care was unchanged. Developed market volume was unchanged. Volume in developing regions decreased low single digits. Excluding the impact of minor brand divestitures, volume in developing markets was unchanged. Global market share of the Hair Care category was unchanged. |
• | Volume in Skin and Personal Care increased mid-single digits. Excluding the impact of minor brand acquisitions, organic volume increased low single digits. Volume increased low single digits in developed regions. Excluding the impact of minor brand acquisitions, developed regions volume declined low single digits due to price increases in the current period and higher retail inventory to support new product launches in the base period. Volume increased high single digits in developing regions due to premium innovation and increased marketing spending. Global market share of the Skin and Personal Care category increased slightly. |
• | Volume in Hair Care increased low single digits. Developed market volume was unchanged. Volume in developing regions increased low single digits due to market growth and product innovation. Global market share of the Hair Care category was unchanged. |
• | Volume in Skin and Personal Care increased mid-single digits. Developed regions volume increased low single digits. Excluding the impact of minor brand acquisitions, developed regions volume was unchanged. Volume increased high single digits in developing regions due to premium innovation, increased marketing spending and market growth. Global market share of the Skin and Personal Care category was unchanged. |
• | Shave Care volume decreased mid-single digits. Developed regions volume decreased low single digits due to competitive activity. Developing regions volume decreased mid-single digits due to devaluation related price increases and competitive activity. Global market share of the Shave Care category was unchanged. |
• | Volume in Appliances was unchanged. Volume decreased low single digits in developed regions due to competitive activity and lower trade inventories in certain countries. Volume increased low single digits in developing regions due to market growth. Global market share of the Appliances category decreased slightly. |
• | Shave Care volume was unchanged. Developed regions volume increased low single digits due to increased competitiveness following price reductions in prior quarters and an increase in consumer promotions. Developing regions volume decreased low single digits following devaluation related price increases and competitive activity. Global market share of the Shave Care category was unchanged. |
• | Volume in Appliances increased low single digits. Volume increased low single digits in both developed and developing regions due to market growth. Global market share of the Appliances category decreased nearly half a point. |
• | Oral Care volume increased mid-single digits. Volume increased mid-single digits in developed regions due to premium paste and power toothbrush innovation. Volume in developing regions increased mid-single digits due to innovation and base period trade inventory reductions. Global market share of the Oral Care category increased less than half a point. |
• | Volume in Personal Health Care was unchanged. Excluding the impact of the PGT Healthcare partnership dissolution and the Merck OTC consumer healthcare acquisition, organic volume increased low single digits. Developed regions volume decreased high single digits, while organic volume grew low single digits due to product innovation. Volume in developing regions increased double digits and mid-single digits on an organic basis, due to innovation and market growth. Global market share of the Personal Health Care category increased more than half a point. |
• | Oral Care volume increased low single digits. Volume increased mid-single digits in developed regions due to premium paste and power toothbrush innovation and lower pricing in the form of increased promotional spending. Volume in developing regions increased low single digits due to innovation and trade inventory reduction in the base period. Global market share of the Oral Care category increased less than half a point. |
• | Volume in Personal Health Care decreased low single digits. Excluding the impact of the PGT Healthcare partnership dissolution and Merck OTC consumer healthcare acquisition, organic volume increased high single digits. Developed regions volume decreased mid-single digits, while organic volume grew low single digits due to product innovation. Volume in developing regions increased high single digits and double digits on an organic basis, due to innovation and market growth. Global market share of the Personal Health Care category increased more than half a point. |
• | Fabric Care volume increased mid-single digits. Volume in developed regions grew mid-single digits due to product innovation and lower pricing in the form of increased promotional spending. Volume in developing regions increased mid-single digits driven by product innovation. Global market share of the Fabric Care category increased slightly. |
• | Home Care volume increased low single digits. Volume in developed regions increased low single digits due to product innovation and market growth. Volume in developing regions decreased mid-single digits. Excluding the impact of minor brand divestitures, volume in developing regions decreased low single digits following devaluation related price increases. Global market share of the Home Care category increased more than a point. |
• | Fabric Care volume increased mid-single digits. Volume in developed regions grew mid-single digits due to product innovation and lower pricing in the form of increased promotional spending. Volume in developing regions increased low single digits. Excluding the impact of minor brand divestitures, developing regions volume increased mid-single digits driven by product innovation and market growth. Global market share of the Fabric Care category increased nearly half a point. |
• | Home Care volume increased mid-single digits. Volume in developed regions increased mid-single digits due to product innovation and market growth. Volume in developing regions decreased low single digits due to devaluation related price increases and category contraction in certain markets. Global market share of the Home Care category increased less than a point. |
• | Volume in Baby Care decreased mid-single digits. Volume in developed regions declined low single digits due to competitive activity. Volume in developing regions declined high single digits due to competitive activity, volume declines following devaluation related price increases and category contraction in certain markets. Global market share of the Baby Care category decreased nearly half a point. |
• | Volume in Feminine Care increased mid-single digits. Volume in developed regions increased low single digits due to product innovation and adult incontinence category growth. Volume increased mid-single digits in developing regions. Excluding the impact of minor brand divestitures, volume in developing regions increased high single digits driven by innovation. Global market share of the Feminine Care category increased less than half a point. |
• | Volume in Family Care, which is predominantly a North American business, increased mid-single digits driven by product innovation and distribution gains. In the U.S., all-outlet share of the Family Care category increased more than a point. |
• | Volume in Baby Care decreased mid-single digits. Volume in developed regions declined low single digits due to competitive pricing activity. Volume in developing regions declined high single digits due to competitive activity, volume declines following devaluation related price increases and category contraction in certain markets. Global market share of the Baby Care category decreased more than half a point. |
• | Volume in Feminine Care increased mid-single digits. Volume in developed regions increased low single digits due to product innovation and adult incontinence category growth. Volume increased mid-single digits in developing regions driven by innovation and lower pricing in the form of increased promotional spending. Global market share of the Feminine Care category increased less than half a point. |
• | Volume in Family Care, which is predominantly a North American business, increased mid-single digits driven by product innovation and distribution gains. In the U.S., all-outlet share of the Family Care category increased a point. |
Three Months Ended December 31, 2018 | Net Sales Growth | Foreign Exchange Impact | Acquisition & Divestiture Impact/Other (1) | Organic Sales Growth | |||
Beauty | 4% | 4% | —% | 8% | |||
Grooming | (9)% | 5% | 1% | (3)% | |||
Health Care | —% | 3% | 2% | 5% | |||
Fabric & Home Care | 2% | 3% | 1% | 6% | |||
Baby, Feminine & Family Care | (1)% | 4% | —% | 3% | |||
Total Company | —% | 4% | —% | 4% |
Six Months Ended December 31, 2018 | Net Sales Growth | Foreign Exchange Impact | Acquisition & Divestiture Impact/Other (1) | Organic Sales Growth | |||
Beauty | 4% | 4% | —% | 8% | |||
Grooming | (5)% | 5% | —% | —% | |||
Health Care | (1)% | 2% | 4% | 5% | |||
Fabric & Home Care | 2% | 2% | 1% | 5% | |||
Baby, Feminine & Family Care | (2)% | 3% | —% | 1% | |||
Total Company | —% | 3% | 1% | 4% |
Fiscal Year-to-Date, December 31, 2018 | |||||
Operating Cash Flow | Capital Spending | U.S. Tax Act Payments | Adjusted Free Cash Flow | ||
$7,574 | $(1,781) | $235 | $6,028 |
Fiscal Year-to-Date, December 31, 2018 | ||||||
Adjusted Free Cash Flow | Net Earnings | Gain on Dissolution of PGT Partnership | Adjusted Net Earnings | Adjusted Free Cash Flow Productivity | ||
$6,028 | $6,427 | $(353) | $6,074 | 99% |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Reconciliation of Non-GAAP Measures | |||||||||||||||
Three Months Ended December 31, 2018 | |||||||||||||||
AS REPORTED (GAAP) | INCREMENTAL RESTRUCTURING | ROUNDING | NON-GAAP (CORE) | ||||||||||||
COST OF PRODUCTS SOLD | $ | 8,919 | $ | (123 | ) | $ | — | $ | 8,796 | ||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE | 4,623 | 38 | (1 | ) | 4,660 | ||||||||||
OPERATING INCOME | 3,896 | 85 | 1 | 3,982 | |||||||||||
INCOME TAX | 700 | 17 | (2 | ) | 715 | ||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 3,194 | 77 | 1 | 3,272 | |||||||||||
Core EPS | |||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE (1) | $ | 1.22 | $ | 0.03 | $ | — | $ | 1.25 |
CHANGE VERSUS YEAR AGO | |||||||
CORE EPS | 5 | % |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Reconciliation of Non-GAAP Measures | |||||||||||||||||||
Three Months Ended December 31, 2017 | |||||||||||||||||||
AS REPORTED (GAAP) | INCREMENTAL RESTRUCTURING | TRANSITIONAL IMPACTS OF U.S. TAX REFORM | ROUNDING | NON-GAAP (CORE) | |||||||||||||||
COST OF PRODUCTS SOLD | $ | 8,709 | $ | (86 | ) | $ | — | $ | 1 | $ | 8,624 | ||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE | 4,767 | 19 | — | (1 | ) | 4,785 | |||||||||||||
OPERATING INCOME | 3,919 | 67 | — | — | 3,986 | ||||||||||||||
INCOME TAX | 1,472 | 21 | (628 | ) | — | 865 | |||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 2,495 | 51 | 628 | — | 3,174 | ||||||||||||||
Core EPS | |||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE (1) | $ | 0.93 | $ | 0.02 | $ | 0.24 | $ | — | $ | 1.19 |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Reconciliation of Non-GAAP Measures | |||||||||||||||||||
Six Months Ended December 31, 2018 | |||||||||||||||||||
AS REPORTED (GAAP) | INCREMENTAL RESTRUCTURING | GAIN ON DISSOLUTION OF PGT PARTNERSHIP | ROUNDING | NON-GAAP (CORE) | |||||||||||||||
COST OF PRODUCTS SOLD | $ | 17,403 | $ | (169 | ) | $ | — | $ | — | $ | 17,234 | ||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE | 9,275 | 10 | — | — | 9,285 | ||||||||||||||
OPERATING INCOME | 7,450 | 159 | — | — | 7,609 | ||||||||||||||
INCOME TAX | 1,429 | 23 | (2 | ) | (1 | ) | 1,449 | ||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 6,393 | 146 | (353 | ) | 1 | 6,187 | |||||||||||||
Core EPS: | |||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE (1) | $ | 2.44 | $ | 0.06 | $ | (0.14 | ) | $ | — | $ | 2.36 |
CHANGE VERSUS YEAR AGO | |||||||
CORE EPS | 4 | % |
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Reconciliation of Non-GAAP Measures | |||||||||||||||||||
Six Months Ended December 31, 2017 | |||||||||||||||||||
AS REPORTED (GAAP) | INCREMENTAL RESTRUCTURING | TRANSITIONAL IMPACTS OF U.S. TAX REFORM | ROUNDING | NON-GAAP (CORE) | |||||||||||||||
COST OF PRODUCTS SOLD | $ | 16,978 | $ | (186 | ) | $ | — | $ | 1 | $ | 16,793 | ||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE | 9,503 | 26 | — | (1 | ) | 9,528 | |||||||||||||
OPERATING INCOME | 7,567 | 160 | — | — | 7,727 | ||||||||||||||
INCOME TAX | 2,353 | 41 | (628 | ) | — | 1,766 | |||||||||||||
NET EARNINGS ATTRIBUTABLE TO P&G | 5,348 | 126 | 628 | — | 6,102 | ||||||||||||||
Core EPS: | |||||||||||||||||||
DILUTED NET EARNINGS PER COMMON SHARE (1) | $ | 2.00 | $ | 0.05 | $ | 0.23 | $ | — | $ | 2.28 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (3) | Approximate Dollar Value of Shares That May Yet Be Purchased Under Our Share Repurchase Program | ||||||
10/01/2018 - 10/31/2018 | 5,384,600 | $83.57 | 5,384,600 | (3) | ||||||
11/01/2018 - 11/30/2018 | 3,259,875 | $92.03 | 3,259,875 | (3) | ||||||
12/01/2018 - 12/31/2018 | — | — | — | (3) | ||||||
Total | 8,644,475 | $86.76 | 8,644,475 |
(1) | All transactions were made in the open market with large financial institutions. This table excludes shares withheld from employees to satisfy minimum tax withholding requirements on option exercises and other equity-based transactions. The Company administers cashless exercises through an independent third party and does not repurchase stock in connection with cashless exercises. |
(2) | Average price paid per share for open market transactions is calculated on a settlement basis and excludes commission. |
(3) | On January 23, 2019, the Company stated that in fiscal year 2019 the Company expects to reduce outstanding shares through direct share repurchases at a value of up to $5 billion, notwithstanding any purchases under the Company's compensation and benefit plans. Purchases may be made in the open market and/or private transactions and purchases may be increased, decreased or discontinued at any time without prior notice. The share repurchases are authorized pursuant to a resolution issued by the Company's Board of Directors and are expected to be financed by a combination of operating cash flows and issuance of long-term and short-term debt. |
Item 6. | Exhibits |
3-1 | Amended Articles of Incorporation (as amended by shareholders at the annual meeting on October 11, 2011 and consolidated by the Board of Directors on April 8, 2016) (Incorporated by reference to Exhibit (3-1) of the Company's Form 10-K for the year ended June 30, 2016) | ||
3-2 | Regulations (as approved by the Board of Directors on April 8, 2016, pursuant to authority granted by shareholders at the annual meeting on October 13, 2009) (Incorporated by reference to Exhibit (3-2) of the Company's Form 10-K for the year ended June 30, 2016) | ||
4-1 | Indenture, dated as of September 3, 2009, between the Company and Deutsche Bank Trust Company Americas, as Trustee (Incorporated by reference to Exhibit (4-1) of the Company Annual Report on Form 10-K for the year ended June 30, 2015) | ||
10-1 | The Procter & Gamble Performance Stock Program Summary * + | ||
10-2 | Summary of the Company’s Long-Term Incentive Program * + | ||
10-3 | Company’s Form of Separation Agreement and Release * + | ||
31.1 | Rule 13a-14(a)/15d-14(a) Certification – Chief Executive Officer + | ||
31.2 | Rule 13a-14(a)/15d-14(a) Certification – Chief Financial Officer + | ||
32.1 | Section 1350 Certifications – Chief Executive Officer + | ||
32.2 | Section 1350 Certifications – Chief Financial Officer + | ||
101.INS (1) | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||
101.SCH (1) | XBRL Taxonomy Extension Schema Document | ||
101.CAL (1) | XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.DEF (1) | XBRL Taxonomy Definition Linkbase Document | ||
101.LAB (1) | XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE (1) | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Compensatory plan or arrangement |
+ | Filed herewith |
(1) | Pursuant to Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 or 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections. |
THE PROCTER & GAMBLE COMPANY | ||||
January 23, 2019 | /s/ VALARIE L. SHEPPARD | |||
Date | (Valarie L. Sheppard) | |||
Senior Vice President, Comptroller and Treasurer |
Exhibit | ||
101.INS (1) | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH (1) | XBRL Taxonomy Extension Schema Document | |
101.CAL (1) | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF (1) | XBRL Taxonomy Definition Linkbase Document | |
101.LAB (1) | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE (1) | XBRL Taxonomy Extension Presentation Linkbase Document |
+ | Filed herewith |
(1) | Pursuant to Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 or 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections. |
III. | PERFORMANCE CATEGORIES |
· | Organic sales growth (percentile rank in the competitive peer group)* - 30% |
· | Constant currency core before-tax operating profit growth - 20% |
· | Core earnings per share (EPS) growth - 30% |
· | Adjusted free cash flow productivity - 20% |
• | Termination on Account of Death (except in France and the UK). The Award is immediately vested and will become deliverable on the Settlement Date or Agreed Settlement Date, whichever is applicable. |
• | Termination on Account of Death for awards granted in France or the UK. The consequences of death are determined by the local plan supplement, if applicable. |
• | Termination on Account of Retirement or Disability after June 30th of the fiscal year in which this Award was granted. PSUs are retained and will be delivered on the Settlement Date. |
• | Termination pursuant to a Written Separation Agreement that provides for retention of the Award, after June 30th of the fiscal year in which this Award was granted. PSUs are retained and will be delivered on the Settlement Date. |
• | Termination in connection with a divestiture or separation of any of the Company’s businesses, as determined by the Company’s Chief Human Resources Officer. PSUs are retained and will be delivered on the Settlement Date. |
• | CEO - The market analysis is reviewed and a final award value for the CEO is determined solely by the Committee. |
• | Principal Officers - Market target grant values for Principal Officers are authorized by the Committee. Final awards for Principal Officers are recommended by the CEO and approved directly by the Committee. |
• | Band 4-6 - The CEO authorizes market target grant values by band below Band 7. Individual employee award targets are determined based on the employee’s home country and job band. The final award values for Band 4-6 may be further adjusted by Business Unit leaders for individual performance. Final award amounts for employees Band 4-6 are approved by the CEO as delegated by the Committee. Awards for low performers are reduced or eliminated. |
• | Band 3 - The CEO authorizes market grant values, award mix, and participation rates at Band 3. The Business Unit leaders select the Band 3 participants within their organizations. The final award values for Band 3 are set based on home country and approved by the CEO as authorized by the Committee. |
• | Termination on Account of Death (except in France and the UK). The Vest Date for stock options and SARs becomes the date of death and the Award remains exercisable until the Expiration Date. For RSUs, the Award will be fully vested and payment will be made by the later of the end of the calendar year or two and a half months following the date of death. |
• | Termination on Account of Death for awards granted in France or the UK. The consequences of death are determined by the local plan supplement, if applicable. |
• | Termination on Account of Retirement or Disability after June 30th of the fiscal year in which this Award was granted. Stock options and SARs are retained and will be exercisable on the Vest Date and will expire on the Expiration Date. RSUs are retained and will be delivered on the Settlement Date. |
• | Termination pursuant to a Written Separation Agreement that provides for retention of the Award, after June 30th of the fiscal year in which this Award was granted. Stock options and SARS are retained and will become exercisable on the Vest Date and will expire on the Expiration Date. RSUs are retained and will be delivered on the Settlement Date. |
• | Termination in connection with a divestiture or separation of any of the Company’s businesses, as determined by the Company’s Chief Human Resource’s Officer. All outstanding Stock options and SARs are retained and will become exercisable on the Vest Date and will expire on the Expiration Date. All outstanding RSUs are retained and will be delivered on the Settlement Date. |
Last Day of Employment: | Your last day of employment will be «Exit_Date», referred to as your “Last Day of Employment.” Unless otherwise noted below, your pay and benefits will cease as of your Last Day of Employment. |
Separation Payment: | As soon as administratively practical after your Last Day of Employment, P&G will provide you with a Separation Payment of «Total_Amount», less legally required withholdings and deductions. In no event will payment be made before expiration of the seven-day revocation period discussed below or later than the March 15th of the year following the year which includes your last day of employment. Amounts you owe to P&G as of your Last Day of Employment, including, but not limited to, wage and/or benefit overpayments and unpaid loans, will also be deducted from the Separation Payment. |
Payment for Unvested PST: | If you are not fully-vested in the Procter & Gamble Profit Sharing Trust and Employee Stock Ownership Plan (“PST”) as of your Last Day of Employment, as soon as administratively practical after your Last Day of Employment, but no later than the March 15th of the year following the year which includes your Last Day of Employment, you will receive a lump sum payment in an amount substantially equivalent to the non-vested credits in your account in the PST. |
STAR Awards: | As of your Last Day of Employment, if you were otherwise eligible for a STAR award and you worked at least 28 days (4 calendar weeks) during that fiscal year, you will receive a pro-rated STAR award for that fiscal year. Your STAR award will be pro-rated by dividing the number of calendar days during the fiscal year from July 1 through your Last Day of Employment by 365. Your STAR award will be paid in cash in the September (but no later than September 15th) immediately following the end of the fiscal year in which you terminate. |
Equity Awards (including Recognition Shares): | Your separation will be treated as a Special Separation for purposes of any outstanding equity awards granted under the Procter & Gamble 2009 Stock and Incentive Compensation Plan, the Procter & Gamble 2001 Stock and Incentive Compensation Plan, the Procter & Gamble 1992 Stock Plan, or the Gillette Company 2004 Long-Term Incentive Plan and as a result the awards will be retained subject to the original terms and conditions of the awards. Awards granted under the Procter & Gamble 2014 Stock & Incentive Compensation Plan are retained subject to the terms and conditions of the Awards. This agreement does not alter the rights and obligations that you may have under the Procter & Gamble 2014 Stock & Incentive compensation Plan, the Procter & Gamble 2009 Stock and Incentive Compensation Plan, the Procter & Gamble 2001 Stock and Incentive Plan, the Procter & Gamble 1992 Stock Plan, and the Gillette Company 2004 Long-Term Incentive Plan. |
Current Health, Dental, and Life Insurance Benefits: | If you are enrolled in P&G’s active health (including medical, prescription drug, and EAP coverage), active dental, and company-paid life insurance coverage, that coverage will continue under the same terms until «Benefits_End_Date». Note: Any life insurance coverage other than company-paid life insurance coverage will not continue during this time. When your extended coverage ends, you may be entitled to continue your health and dental coverage under COBRA. If you are entitled to COBRA continuation coverage, you will receive a notice of your right to elect COBRA. |
Retiree Medical and Dental Benefits: | If you were eligible for P&G retiree healthcare coverage on your Last Day of Employment, you will be eligible to enroll in P&G’s retiree medical and dental insurance coverage. You are eligible for P&G retiree healthcare coverage if you satisfy the regular retiree eligibility rules (i.e., you are a Regular Retiree) as of your Last Day of Employment. Under the terms of this Agreement, you also are eligible for P&G retiree healthcare coverage as a Special Retiree by satisfying the Rule of 70 as of your Last Day of Employment. You satisfy the Rule of 70 when your full years of age plus your full years of service equal 70. Special rules apply to Gillette Heritage Employees with regard to retiree medical eligibility and the retiree medical cost sharing under the retiree medical plan. If you are a Gillette Heritage Employee, you will receive a separate handout on your retiree medical eligibility. If you are eligible for P&G’s retiree healthcare coverage as either a Regular Retiree or a Special Retiree as of your Last Day of Employment, you should contact P&G Employee Care before your extension of coverage ends to request retiree healthcare enrollment information. For details regarding the terms and conditions of your retiree health coverage, please refer to and review the summary plan descriptions, available at PGOneLife and Career Important Note: If you become employed by a direct competitor of P&G (as determined by P&G’s Chief Human Resources Officer) in an officer and/or director capacity, you will not be eligible for coverage under P&G’s retiree healthcare coverage as long as you remain employed by such competitor. If you have questions, please contact P&G Employee Care at 1-833-441-4357. |
Outplacement Services: | P&G’s outplacement supplier, Right Management Consultants, will provide services to assist you in managing your transition to a new future, based on your interest. Services include pre-decision counseling, career transition programs, and job development opportunities. Right Management Consultants will also assist you in preparing for your job search, including résumé preparation, cover letters, other written materials and interview and networking training. After accepting this Agreement, and after obtaining your manager’s approval, you may begin utilizing outplacement services on a limited basis prior to your Last Day of Employment, consistent with the needs of the business and your responsibilities to complete and/or transition your work. Note that you must begin utilizing outplacement services within 45 days of your Last Day of Employment to be eligible for this benefit. |
Retraining: | You are eligible for reimbursement (up to $5,000) for the cost of tuition, registration and laboratory fees for courses taken at accredited colleges and universities, or at 2-year colleges, trade schools, or vocational schools approved by appropriate accrediting boards. Correspondence courses which result in credit towards diplomas, degrees, etc. may be acceptable if offered by eligible non-profit institutions. You must have courses approved in advance and submit proof of payment of covered fees and proof (such as a transcript) that the courses were completed successfully. Courses that are recreational in nature, such as golf lessons, will not be approved. All expenses for retraining must be incurred within twenty-four (24) months of your Last Day of Employment. The retraining reimbursement benefit is administered by Right Management Consultants. |
No Consideration Without Executing this Agreement: | You affirm that you understand and agree that you would not receive the separation payment and/or benefits specified in this Agreement without executing this Agreement and fulfilling the promises contained in it. Except as provided in this Agreement or under the terms and conditions of an applicable benefit plan or policy sponsored by P&G, you shall not be due any payments or benefits from P&G in connection with the termination of your employment. |
Continued Employment Through Your Last Day of Employment: | You agree to perform your work and responsibilities as an employee in a satisfactory manner up to and including your Last Day of Employment, including compliance with all provisions of this “Separation Agreement and Release.” If P&G determines that you have engaged in serious misconduct during your employment, you understand and agree that P&G may terminate your employment immediately and will not provide, nor will it be obligated to provide, you with the Separation payment, medical benefits, outplacement, retraining and other benefits described above. If you have already received any such pay or benefits, you agree to repay them to P&G upon demand. |
Nonadmission of Wrongdoing: | You affirm that you understand and agree that neither this Agreement nor the furnishing of the consideration for this Agreement, including the Separation Payment, shall be deemed or construed at any time for any purpose as an admission by P&G of wrongdoing or evidence of any liability or unlawful conduct of any kind. |
Release of Claims - Including Age Discrimination and Employment Claims: | In consideration of the Separation Payment and other benefits provided above to which you would not have been entitled under any existing P&G Policy, you release P&G from any and all claims you have against P&G. The term “P&G” includes «Company» and any of its present, former and future owners, parents, affiliates and subsidiaries, and its and their directors, officers, shareholders, employees, agents, servants, representatives, predecessors, successors and assigns and their employee benefit plans and programs and their administrators and fiduciaries. This release applies to claims about which you now know or may later discover, and includes but is not limited to: (1) claims arising under the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq.; (2) claims arising out of or relating in any way to your employment with P&G or the conclusion of that employment; (3) claims arising under any federal, state and local employment discrimination laws, regulations or ordinances or other orders that relate to the employment relationship and/or employee benefits; and (4) any other federal, state or local law, rule, regulation or ordinance, public policy, contract, tort or common law. This release does not apply to claims that may arise after the date you accept this Agreement or that may not be released under applicable law. You are not waiving any rights you may have to: (a) your own vested accrued employee benefits under the P&G health, welfare, or retirement benefit plans as of the Last Day of Employment; (b) benefits and/or the right to seek benefits under applicable workers’ compensation and/or unemployment compensation statutes; (c) pursue claims which by law cannot be waived by signing this Agreement; (d) enforce this Agreement; and/or (e) challenge the validity of this Agreement. You agree that the decision that your last day of employment would be on the Last Day of Employment was made prior to your accepting and executing this Agreement, and you agree that you are releasing any claim in connection with the separation of your employment. If any claim is not subject to release, to the extent permitted by law, you agree that you waive any right or ability to be a class or collective action representative or to otherwise participate in any putative or certified class, collective or multi-party action or proceeding based on such a claim in which P&G is a party. Governmental Agencies: Nothing in this Agreement prohibits or prevents you from filing a charge with or participating, testifying, or assisting in any investigation, hearing, or other proceeding before the U.S. Equal Employment Opportunity Commission, the National Labor Relations Board or a similar agency enforcing federal, state or local anti-discrimination laws. However, to the maximum extent permitted by law, you agree that if such an administrative claim is made to such an anti-discrimination agency, you shall not be entitled to recover any individual monetary relief or other individual remedies. Nothing in this Agreement, including but not limited to the “Release of Claims - Including Age Discrimination and Employment Claims” and the “Confidential, Proprietary, Trade Secret Information & Period of Non-Competition” sections of this Agreement, prohibits you from: (1) reporting possible violations of federal law or regulations, including any possible securities laws violations, to any governmental agency or entity, including but not limited to the U.S. Department of Justice, the U.S. Securities and Exchange Commission, the U.S. Congress, or any agency Inspector General; (2) making any other disclosures that are protected under the whistleblower provisions of federal law or regulations; or (3) otherwise fully participating in any federal whistleblower programs, including but not limited to any such programs managed by the U.S. Securities and Exchange Commission and/or the Occupational Safety and Health Administration. You understand you do not need the prior authorization from the Company to make any such reports or disclosures, and you are not required to notify the Company that you have made such reports or disclosures. Moreover, nothing in this Agreement prohibits or prevents you from receiving individual monetary awards or other individual relief by virtue of participating in such federal whistleblower programs. |
Confidential, Proprietary, Trade Secret Information & Period of Non-Competition: | Subject to the “Governmental Agencies” portion of the “Release of Claims - Including Age Discrimination and Employment Claims” above, you agree that you will not use or share any confidential, proprietary or trade secret information about any aspect of P&G’s business with any non-P&G employee or business entity at any time in the future. You further agree that you will not obtain or have in your possession any confidential, proprietary or trade secret information on or after your last day of employment. Confidential, proprietary or trade secret information includes, but is not limited to, marketing and advertising plans, pricing information, upstream plans, specific areas of research and development, project work, product formulation, processing methods, assignments of individual employees, testing and evaluation procedures, cost figures, construction plans, and special techniques or methods of any kind. Notwithstanding the requirements of confidentiality contained in this section, the federal Defend Trade Secrets Act of 2016 immunizes you against criminal and civil liability under federal or state trade secret laws for your disclosure of trade secrets that is made i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney solely for the purpose of reporting or investigating a suspected violation of law; ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; or iii) to your attorney for use in a lawsuit alleging retaliation for reporting a suspected violation of law, provided that any document containing the trade secret is filed under seal and you do not otherwise disclose the trade secret, except pursuant to court order. Additional non-compete obligation for management employees only: You understand and agree that, unless you have prior written consent from P&G, you will not engage in any activity or provide any services for a period of three (3) years following your Last Day of Employment in connection with the manufacture, development, advertising, promotion or sale of any product which is the same as, similar to, or competitive with any products of P&G or its subsidiaries (including both existing products as well as products in development which are known to you, as a consequence of your employment with P&G): With respect to which your work has been directly concerned at any time during the two (2) years preceding your Last Day of Employment; or With respect to which during that period of time you, as a consequence of your job performance and duties, acquired knowledge of trade secrets or other confidential information of P&G. For the purposes of this section, it shall be conclusively presumed that you have knowledge or information to which you were directly exposed through the actual receipt of memos or documents containing such information or through actual attendance at meetings at which such information was discussed or disclosed. The provisions of this section are not in lieu of, but are in addition to, your continuing obligation to not use or disclose P&G’s trade secrets and confidential information known to you until any particular trade secret or confidential information becomes generally known (through no fault of yours). Information regarding products in development, in test market or being marketed or promoted in a discrete geographic region, which information P&G is considering for a broader use, shall not be deemed generally known until such broader use is actually commercially implemented. Also, “generally known” means known throughout the domestic United States industry or, if you have job responsibilities outside of the United States, the appropriate foreign country or countries’ industry. If any restriction in this section is found by any court of competent jurisdiction or arbitrator to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it will be modified and interpreted to extend only over the maximum period of time, range of activities or geographic area so that it may be enforceable. If you are a participant in the 2009 Stock and Incentive Compensation Plan, the 2001 Stock and Incentive Compensation Plan, or the 1992 Stock Plan, you are also bound by the terms of Article F - Restrictions & Covenants of those plans, which are incorporated herein by reference. If you are a participant in the 2014 Stock & Incentive Compensation Plan, you are also bound by the terms of Article 6 - Restrictions and Covenants of this plan which are incorporated herein by reference. |
Acknowledgements and Affirmations: | Subject to the “Governmental Agencies” portion of the “Release of Claims - Including Age Discrimination and Employment Claims” above, you affirm that you have not filed, caused to be filed, or presently are a party to any claim against P&G. You affirm that you have been paid and/or have received all compensation, wages, bonuses, commissions, and/or benefits which are due and payable as of the date you sign this Agreement. To the extent that you are required to report hours worked, you affirm that you have reported all hours worked as of the date you sign this Agreement. You affirm that you have been granted any leave to which you were entitled under the Family and Medical Leave Act or related state or local leave or disability accommodation laws. You further affirm that you have no known workplace injuries or occupational diseases that have not been reported. |
Assignment of Intellectual Property: | You will promptly and fully disclose, transfer and assign to P&G all inventions and any other intellectual property (collectively “Intellectual Property”) made or conceived by you during your employment with P&G. You agree to fully cooperate in executing any papers required for establishing or protecting the Intellectual Property and for establishing P&G’s ownership, even if such cooperation is necessary after your Last Day of Employment. |
Return of P&G Property: | You agree that on or before your Last Day of Employment, you will return to P&G in good condition all of its equipment, materials and information that were in your possession, custody or control (including, but not limited to, computers, files, documents, credit cards, keys and identification badges). You further agree that you will provide your manager with all passwords to P&G electronic communication and data systems before your Last Day of Employment. You further agree that on or before your Last Day of Employment, you will return or if directed to do so by your immediate manager, delete (i.e., destroy all copies of) any and all P&G confidential, proprietary or trade secret information you have maintained in your possession, custody, or control in paper, electronic and/or digital formats, including but not limited to, any such confidential, proprietary, or trade secret information (e.g., files, documents, etc.) that you may have electronically or digitally processed or stored on P&G-issued or on personally-owned or maintained digital devices and/or service accounts. Such digital devices and/or service accounts may include, but are not limited to desktop and laptop computers, notebooks, tablets, iPads, mobile phones, smartphones, personal digital assistants (PDAs), USB and flash drives, external hard drives, CDs, DVDs, and/or external file processing or storage provided by cloud service providers such as box.net, dropbox, Google docs, etc. |
Ethics Compliance: | Subject to the “Governmental Agencies” portion of the “Release of Claims - Including Age Discrimination and Employment Claims” above, you agree that you provided P&G all information known to you regarding any violations of the Procter & Gamble Worldwide Business Conduct Manual and/or any other violations of P&G policy or the law. |
Agreement to Arbitrate Disputes: | Resolving any future differences we may have in the courts can take a long time and be expensive. You and P&G therefore agree that the only remedy for all disputes that are not released by this Agreement or that arise out of your employment with or separation from P&G, or any aspect of this Agreement, will be to submit any such disputes (with the exception noted at the end of this section) to final and binding arbitration in accordance with the National Rules for Resolution of Employment Disputes of the American Arbitration Association then in effect. You and P&G agree that the aggrieved party must send written notice of any claim to the other party by certified mail, return receipt requested. Written notice for P&G will be sent to: Secretary, One Procter & Gamble Plaza, Cincinnati, OH 45202, and to you at the most current address shown for you in P&G’s records. The arbitrator will apply Ohio law. At your written request, P&G will reimburse you for all fees and costs charged by the American Arbitration Association and its arbitrator to the extent they exceed the applicable fees and costs that would have been charged by a court of competent jurisdiction had your claim been filed in court. There is one exception to this section. P&G may seek injunctive relief in any court of competent jurisdiction if it has reason to believe that you have violated or are about to violate (1) the terms of the “Confidential, Proprietary, Trade Secret Information & Period of Non-Competition” section above, or (2) if you are a participant in the 2009 Stock and Incentive Compensation Plan, the 2001 Stock and Incentive Compensation Plan, or the 1992 Stock Plan, the terms of Article F - Restrictions & Covenants of those plans or (3) if you are a participant in the 2014 Stock and Incentive Compensation Plan, the terms of Article 6 - Restrictions & Covenants of that plan. |
Severability: | If any court of competent jurisdiction or arbitrator should later find that any portion of this Agreement is invalid, that invalidity will not affect the enforceability of any other portion of this Agreement. |
Employment References: | You understand that P&G’s historical policy is to not provide employment references to prospective employers. However, P&G is willing to waive that policy in your case on the following basis: You authorize your manager or human resources representative to provide an employment reference upon written or verbal request. In return, you release any claim against P&G and will not bring a lawsuit in court against P&G based upon that employment reference (or lack thereof). You agree that you will refer all reference inquiries to your manager or human resources representative only. You further understand that all disputes regarding employment references or the lack thereof must be resolved through the arbitration process described above. |
No Reliance: | This Agreement sets forth the entire agreement between you and P&G and fully supersedes any prior agreements or understanding between the parties except that if you are a participant in the 2009 Stock and Incentive Compensation Plan, the 2001 Stock and Incentive Compensation Plan, or the 1992 Stock Plan, the terms of Article F - Restrictions & Covenants of those plans remain in full force and effect and are incorporated herein by reference and if you are a participant in the 2014 Stock Plan, the terms of Article 6 - Restrictions & Covenants of the plan remain in full force and are in effect and are incorporated herein by reference. In deciding to accept this Agreement, you agree that you have not relied upon any statements or promises by P&G, its managers, agents or employees, other than those set forth in this Agreement. No other promises or agreements concerning the matters described in this Agreement shall be binding unless in a subsequent document signed by these parties. |
Your Attorney: | You acknowledge that you have been and hereby are advised to consult with legal counsel before accepting this Agreement and have either done so or have voluntarily declined to do so. |
Timing for Acceptance or Revocation: | You have forty-five (45) calendar days in which to consider this Agreement in which you waive important rights, including those under the Age Discrimination in Employment Act of 1967. If you choose to sign this Agreement, please do so by indicating your acceptance of this Agreement with your electronic signature in P&G’s electronic system. We advise you to consult with an attorney of your choosing prior to signing this Agreement. Further, you may within seven (7) calendar days following the date you accept this Agreement, cancel and terminate the Agreement by giving written notice of your intention to revoke the Agreement to your immediate manager, and by returning to P&G any remuneration or benefits that have been advanced to you in anticipation of your not revoking your Agreement and to which you are not entitled. If notice of your revocation is mailed, it must be postmarked within seven (7) calendar days after you sign this Agreement. You agree that any modifications, material or otherwise, made to this Agreement, do not restart or affect in any manner the original up to forty-five (45) calendar day consideration period. |
SEPARATION PAYMENT | If the Company offers you Separation Payment as part of your Negotiated Separation Agreement, the amount of the Separation Payment will be specified in the terms of your Negotiated Separation Agreement, but shall not exceed the percentage of your Annual Base Pay provided below, based on your full Years of Service. Years of Service % Annual Base Pay 0-2 25.00% 3-4 33.33% 5-9 54.17% 10-14 75.00% 15-19 95.83% 20+ 100.00% Separation Payments are payable in one lump sum, less tax withholding, and are issued as soon as administratively practical (typically, four to six weeks) after your Last Day of Employment. Separation Payments are not considered “compensation” for purposes of determining any benefits provided under any pension, savings, or other benefit plan sponsored by the Company. |
PAYMENT FOR UNVESTED PST | If you are not fully-vested in the Procter & Gamble Profit Sharing Trust and Employee Stock Ownership Plan (“PST”) as of your Last Day of Employment, as soon as administratively practical after your Last Day of Employment, but no later than the March 15th of the year following the year which includes your Last Day of Employment, you will receive a lump sum payment in an amount substantially equivalent to the non-vested credits in your account in the PST. |
EXTENSION OF MEDICAL, DENTAL, AND BASIC LIFE COVERAGE | If you are enrolled in medical, dental, or basic life insurance benefits on your Last Day of Employment, such benefits will be extended through the end of the month in which the Last Day of Employment occurs. If the Company offers you a further extension of these benefits as part of your Negotiated Separation Agreement, the extension period will begin on the day after your Last Day of Employment and last for the number of months specified in the terms of your Negotiated Separation Agreement, but such period shall not exceed the number of months provided below, based on your full Years of Service. Years of Service # Months 0-2 3 3-4 4 5-9 6 10-14 9 15+ 12 If the Company offers you a further extension of benefits, you are required to continue paying for those benefits at the same rate you paid while you were employed, but on an after-tax basis. COBRA: When your medical and dental benefits terminate after your Last Day of Employment (either at the end of that month or, if provided, at the end of your extension of benefits period) you may be eligible for continuation coverage under COBRA, which generally requires a greater premium payment for coverage. If you are a Regular Retiree or Special Retiree, in addition to COBRA, you will be eligible to enroll in retiree medical, dental, and life insurance coverage under The Procter & Gamble Retiree Welfare Benefits Plan. For more information, see definitions of Regular Retiree and Special Retiree. Surviving Spouse/Domestic Partner & Dependents: If you die during an extension of benefits period and your spouse/domestic partner and other dependents were enrolled in P&G medical or dental coverage at the time of your death, they may continue such coverage for 12 months after your death at the same rate on an after-tax basis. This 12-month continuation period begins on the first of the month following the month in which your death occurs. If you are Regular Retiree or Special Retiree, after the 12-month extension of benefits period, your spouse/domestic partner is eligible to enroll in the National Surviving Spouse Program for medical and dental coverage under The Procter & Gamble Retiree Welfare Benefits Plan. |
OUTPLACEMENT | Outplacement assistance (including pre-decision counseling, career transition programs, and job development services) is available for up to two years after your Last Day of Employment. |
TRAINING | You are eligible to receive reimbursement for the cost of tuition and registration/lab fees at accredited institutions, for up to $5,000 or two years after your Last Day of Employment, whichever comes first. All courses must be approved by Right Management Consultants who administers the benefit. |
(1) | I have reviewed this quarterly report on Form 10-Q of The Procter & Gamble Company; |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ DAVID S. TAYLOR |
(David S. Taylor) |
Chairman of the Board, President and Chief Executive Officer |
January 23, 2019 |
Date |
(1) | I have reviewed this quarterly report on Form 10-Q of The Procter & Gamble Company; |
(2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
(3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
(4) | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(5) | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ JON R. MOELLER |
(Jon R. Moeller) |
Vice Chairman and Chief Financial Officer |
January 23, 2019 |
Date |
(1) | The Quarterly Report on Form 10-Q of the Company for the quarterly period ended December 31, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in that Form 10-Q fairly presents, in all material respects, the financial conditions and results of operations of the Company. |
/s/ DAVID S. TAYLOR |
(David S. Taylor) |
Chairman of the Board, President and Chief Executive Officer |
January 23, 2019 |
Date |
(1) | The Quarterly Report on Form 10-Q of the Company for the quarterly period ended December 31, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in that Form 10-Q fairly presents, in all material respects, the financial conditions and results of operations of the Company. |
/s/ JON R. MOELLER |
(Jon R. Moeller) |
Vice Chairman and Chief Financial Officer |
January 23, 2019 |
Date |
DOCUMENT AND ENTITY INFORMATION |
6 Months Ended |
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Dec. 31, 2018
shares
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Document Information [Line Items] | |
Entity Registrant Name | PROCTER & GAMBLE Co |
Entity Central Index Key | 0000080424 |
Current Fiscal Year End Date | --06-30 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Trading Symbol | PG |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 2,501,579,709 |
Entity Emerging Growth Company | false |
Entity Small Business | false |
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | |||||||
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Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Net Sales | $ 17,438 | $ 17,395 | $ 34,128 | $ 34,048 | |||||
Cost of Products Sold | 8,919 | 8,709 | 17,403 | 16,978 | |||||
Selling, General and Administrative Expense | 4,623 | 4,767 | 9,275 | 9,503 | |||||
Operating Income | 3,896 | 3,919 | 7,450 | 7,567 | |||||
Interest Expense | 138 | 122 | 267 | 237 | |||||
Interest Income | 63 | 66 | 116 | 115 | |||||
Other Non-operating Income/(Loss), Net | 95 | 170 | 557 | 339 | |||||
Earnings/(Loss) from Continuing Operations Before Income Taxes | 3,916 | 4,033 | 7,856 | 7,784 | |||||
Income Taxes on Continuing Operations | 700 | 1,472 | 1,429 | 2,353 | |||||
Net Earnings | 3,216 | 2,561 | 6,427 | 5,431 | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 22 | 66 | $ 34 | 83 | |||||
Net Earnings Attributable to Procter & Gamble | $ 2,495 | $ 5,348 | |||||||
Basic Net Earnings Per Common Share | |||||||||
Basic Net Earnings Per Common Share | [1],[2] | $ 1.25 | $ 0.96 | $ 2.51 | $ 2.05 | ||||
Diluted Net Earnings Per Common Share | |||||||||
Diluted Net Earnings Per Common Share | [1],[2] | $ 1.22 | $ 0.93 | $ 2.44 | $ 2.00 | ||||
Diluted Weighted Average Common Shares Outstanding | 2,623.0 | 2,669.6 | 2,617.6 | 2,680.1 | |||||
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CONDOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Net Earnings | $ 3,216 | $ 2,561 | $ 6,427 | $ 5,431 |
Financial Statement Translation | (370) | 188 | (586) | 1,028 |
Unrealized Gains/(Losses) on Hedges | 192 | (167) | 199 | (630) |
Unrealized Gains/(Losses) on Investment Securities | 58 | (61) | 53 | (65) |
Unrealized Gains/(Losses) on Defined Benefit Retirement Plans | 98 | 161 | 250 | 128 |
Total Other Comprehensive Income (Loss), Net of Tax | (22) | 121 | (84) | 461 |
Total Comprehensive Income/(Loss) | 3,194 | 2,682 | 6,343 | 5,892 |
Less: Total Comprehensive Income Attributable to Noncontrolling Interest | 23 | 66 | 31 | 83 |
Total Comprehensive Income/(Loss) Attributable to Procter & Gamble | $ 3,171 | $ 2,616 | $ 6,312 | $ 5,809 |
BASIS OF PRESENTATION |
6 Months Ended |
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Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of PresentationThese statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018 and the Form 8-K filed October 22, 2018 to update the Form 10-K to revise disclosures to reflect the adoption of the Financial Accounting Standards Board (FASB) ASU 2017-07 and 2016-18. For additional details on the impacts of adoption, see Note 2. In the opinion of management, the accompanying unaudited Consolidated Financial Statements of The Procter & Gamble Company and subsidiaries (the "Company," "Procter & Gamble," "P&G," "we" or "our") contain all adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods reported. However, the results of operations included in such financial statements may not necessarily be indicative of annual results. |
NEW ACCOUNTING PRONOUNCEMENTS AND POLICIES |
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Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | New Accounting Pronouncements and Policies and U.S. Tax Reform On July 1, 2018, we adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." This guidance outlines a single, comprehensive model of accounting for revenue from contracts with customers. We adopted the standard using the modified retrospective transition method, under which prior periods were not revised to reflect the impacts of the new standard. Our revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer. Accordingly, the timing of revenue recognition is not materially impacted by the new standard. Trade promotions, consisting primarily of customer pricing allowances, in-store merchandising funds, advertising and other promotional activities, and consumer coupons, are offered through various programs to customers and consumers. The adoption of the new standard impacts the accrual timing for certain portions of our customer and consumer promotional spending, which resulted in a cumulative adjustment to Retained earnings of $534, net of tax, on the date of adoption. The provisions of the new standard also impact the classification of certain payments to customers, moving an immaterial amount of such payments from expense to a deduction from net sales. Had this standard been effective and adopted during fiscal 2018, the impact would have been to reclassify $157 from Selling, General and Administrative expense (SG&A) to a reduction of Net sales for the six months ended December 31, 2017 and $309 for the year ended June 30, 2018, with no impact to operating profit. This guidance included practical expedients, none of which are material to our Consolidated Financial Statements. This new guidance does not have any other material impacts on our Consolidated Financial Statements, including financial disclosures. On July 1, 2018, we adopted ASU 2017-07, "Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Topic 715)." This guidance requires an entity to disaggregate the current service cost component from the other components of net benefit costs in the face of the income statement. It requires the service cost component to be presented with other current compensation costs for the related employees in the operating section of the income statement, with other components of net benefit cost presented outside of income from operations. We adopted the standard retrospectively, using the practical expedient which allows entities to use information previously disclosed in their pension and other postretirement benefit plans footnote as the basis to apply the retrospective presentation requirements. As such, prior periods’ results have been revised to report the other components of net defined benefit costs, previously reported in Cost of products sold and SG&A, in Other non-operating income, net. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows: Restricted Cash (Topic 230)." This guidance requires the Statement of Cash Flows to present changes in the total of cash, cash equivalents and restricted cash. Prior to the adoption of this ASU, the relevant accounting guidance did not require the Statement of Cash Flows to include changes in restricted cash. We adopted the standard retrospectively on July 1, 2018. We currently have no significant restricted cash balances. Historically, we had restricted cash balances and changes related to divestiture activity. Such balances were presented as Current assets held for sale on the balance sheets, with changes presented as Investing activities on the Statements of Cash Flow. In accordance with ASU 2016-08, such balances are now included in the beginning and ending balances of Cash, cash equivalents and restricted cash for all periods presented. In February 2018, the FASB issued ASU 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220)." This guidance permits companies to make an election to reclassify stranded tax effects from the recently enacted U.S. Tax Cuts and Jobs Act included in Accumulated other comprehensive income (AOCI) to Retained earnings. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company elected to early adopt this guidance in the quarter ended September 30, 2018. The reclassification from the adoption of this standard resulted in an increase of $326 to Retained earnings and a decrease of $326 to AOCI. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity transfers of Assets other than Inventory." The standard eliminates the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. We have adopted this standard effective July 1, 2018 on a modified retrospective basis. The adoption of ASU 2016-16 did not have a material impact on our Consolidated Financial Statements, including the cumulative effect adjustment required upon adoption. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) Targeted Improvements”. The updated guidance provides an optional transition method, which allows for the application of the standard as of the adoption date with no restatement of prior period amounts. We plan to adopt the standard on July 1, 2019 under the optional transition method described above. We are currently in the process of implementing lease accounting software as well as assessing the impact that the new standard will have on our Consolidated Financial Statements, which will consist primarily of a balance sheet gross up of our operating leases to show equal and offsetting lease assets and lease liabilities. In January 2017, the FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The standard simplifies the accounting for goodwill impairment by requiring a goodwill impairment to be measured using a single step impairment model, whereby the impairment equals the difference between the carrying amount and the fair value of the specified reporting units in their entirety. This eliminates the second step of the current impairment model that requires companies to first estimate the fair value of all assets in a reporting unit and measure impairments based on those fair values and a residual measurement approach. It also specifies that any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We will adopt the standard no later than July 1, 2020. The impact of the new standard will be dependent on the specific facts and circumstances of future individual impairments, if any. No other new accounting pronouncement issued or effective during the fiscal year had, or is expected to have, a material impact on our Consolidated Financial Statements. U.S. Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "U.S. Tax Act"). The U.S. Tax Act significantly revises the future ongoing U.S. corporate income tax by, among other things, lowering the U.S. corporate income tax rates and implementing a hybrid territorial tax system. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ended June 30, 2018, and 21% for subsequent fiscal years. However, the U.S. Tax Act eliminates the domestic manufacturing deduction and moves to a hybrid territorial system, which also largely eliminates the ability to credit certain foreign taxes that existed prior to enactment of the U.S. Tax Act. There are also certain transitional impacts of the U.S. Tax Act. As part of the transition to the new hybrid territorial tax system, the U.S. Tax Act imposed a one-time repatriation tax on deemed repatriation of historical earnings of foreign subsidiaries. In addition, the reduction of the U.S. corporate tax rate caused us to adjust our U.S. deferred tax assets and liabilities to the lower federal base rate of 21%. These transitional impacts resulted in a provisional net charge of $602 million for the fiscal year ended June 30, 2018, and $628 million for the three months ended December 31, 2017 (the quarter of enactment), comprised of an estimated repatriation tax charge of $3.8 billion (comprised of U.S. repatriation taxes and foreign withholding taxes) and an estimated net deferred tax benefit of $3.2 billion. We have finalized our assessment of the transitional impacts of the U.S. Tax Act, which did not have a significant impact on tax expense during the six months ended December 31, 2018. Any legislative changes, including the final Section 965 transition tax regulations issued on January 15, 2019, whose impact is currently being assessed due to the complexity and interdependency of the legislative provisions, as well as any other new or proposed Treasury regulations, which have yet to be issued, may result in additional income tax impacts which could be material in the period any such changes are enacted.
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SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | Segment Information Under U.S. GAAP, our Global Business Units (GBUs) are aggregated into five reportable segments: 1) Beauty, 2) Grooming, 3) Health Care, 4) Fabric & Home Care and 5) Baby, Feminine & Family Care. Our five reportable segments are comprised of:
Our business units are comprised of similar product categories. Nine business units individually accounted for 5% or more of consolidated net sales as follows:
Following is a summary of reportable segment results:
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GOODWILL AND OTHER INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets Goodwill is allocated by reportable segment as follows:
Goodwill from current year acquisitions primarily reflects the acquisition of the over-the-counter (OTC) healthcare business of Merck KGaA (Merck OTC) in the Health Care reportable segment (see Note 11), along with other minor acquisitions in the Beauty and Fabric & Home Care reportable segments. Goodwill increases due to acquisitions was partially offset by the divestiture of the Teva portion of the PGT business in the Health Care reportable segment and currency translation. Identifiable intangible assets at December 31, 2018 were comprised of:
Intangible assets with determinable lives consist of brands, patents, technology and customer relationships. The intangible assets with indefinite lives consist of brands. The amortization expense of intangible assets for the three months ended December 31, 2018 and 2017 was $81 and $75, respectively. For the six months ended December 31, 2018 and 2017, the amortization expense of intangible assets was $154 and $152, respectively. Goodwill and indefinite lived intangible assets are not amortized, but are tested annually for impairment. The test to evaluate goodwill for impairment is a two-step process. In the first step, we compare the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit is less than its carrying value, we perform a second step to determine the implied fair value of the reporting unit's goodwill. The second step of the impairment analysis requires a valuation of a reporting unit's tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the resulting implied fair value of the reporting unit's goodwill is less than its carrying value, that difference represents an impairment. The business unit valuations used to test goodwill and intangible assets for impairment are dependent on a number of significant estimates and assumptions, including macroeconomic conditions, overall category growth rates, competitive activities, cost containment, margin expansion and Company business plans. We believe these estimates and assumptions are reasonable. However, future changes in the judgments, assumptions and estimates that are used in our impairment testing for goodwill and indefinite-lived intangible assets, including discount and tax rates or future cash flow projections, could result in significantly different estimates of the fair values. Our annual impairment testing for goodwill and indefinite lived intangible assets occurs during the 3 months ended December 31. Most of our goodwill reporting units are comprised of a combination of legacy and acquired businesses and as a result have fair value cushions that, at a minimum, exceed two times their underlying carrying values. Certain of our goodwill reporting units, in particular Shave Care and Appliances, are comprised entirely of acquired businesses and as a result, have fair value cushions that are not as high. Both of these wholly acquired reporting units have fair value cushions that currently equal or exceed the underlying carrying values. However, the overall Shave Care goodwill cushion has been reduced in recent years, with the fair value in the current year being reduced to an amount that approximates the reporting unit's carrying value. The related Gillette indefinite-lived intangible asset cushion has also been reduced to below 5%. These reductions are due in large part to an increased competitive market environment in the U.S. and certain other markets, a deceleration of category growth caused by changing grooming habits and significant currency devaluations in a number of countries relative to the U.S. dollar, which collectively have resulted in reduced cash flow projections. The current year reduction in the fair value was primarily caused by further currency devaluations, along with competitive activities. As a result of these factors and the reduction in the fair values and related cushions, goodwill for the Shave Care reporting unit and the related indefinite-lived intangible asset are more susceptible to impairment risk. The most significant assumptions utilized in the determination of the estimated fair values of Shave Care reporting unit and the Gillette indefinite-lived intangible asset are the net sales and earnings growth rates (including residual growth rates) and discount rate. The residual growth rate represents the expected rate at which the reporting unit and Gillette brand are expected to grow beyond the shorter-term business planning period. The residual growth rate utilized in our fair value estimates is consistent with the reporting unit and brand operating plans, and approximates expected long term category market growth rates. The residual growth rate is dependent on overall market growth rates, the competitive environment, inflation, relative currency exchange rates and business activities that impact market share. As a result, the residual growth rate could be adversely impacted by a sustained deceleration in category growth, grooming habit changes, devaluation of currencies against the U.S. dollar or an increased competitive environment. The discount rate, which is consistent with a weighted average cost of capital that is likely to be expected by a market participant, is based upon industry required rates of return, including consideration of both debt and equity components of the capital structure. Our discount rate may be impacted by adverse changes in the macroeconomic environment, volatility in the equity and debt markets or other country specific factors, such as further devaluation of currencies against the U.S. dollar. Spot rates as of the fair value measurement date are utilized in our fair value estimates for cash flows outside the U.S. While management can and has implemented strategies to address these events, changes in operating plans or adverse changes in the future could reduce the underlying cash flows used to estimate fair values and could result in a decline in fair value that would trigger future impairment charges of the reporting unit's goodwill and indefinite-lived intangibles. As of December 31, 2018, the carrying values of Shave Care goodwill and the Gillette indefinite-lived intangible asset were $19.4 billion and $15.7 billion, respectively. The table below provides a sensitivity analysis for the Shave Care reporting unit and the Gillette indefinite lived intangible asset, utilizing reasonably possible changes in the assumptions for the shorter term and residual growth rates and the discount rate, to demonstrate the potential impacts to the estimated fair values. The table below provides, in isolation, the estimated fair value impacts related to a 25 basis point increase to discount rate or a 25 basis point decrease to our shorter-term and residual growth rates, both of which would result in impairment charges.
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | Earnings Per Share Basic net earnings per common share are calculated by dividing Net earnings attributable to Procter & Gamble less preferred dividends (net of related tax benefits) by the weighted average number of common shares outstanding during the period. Diluted net earnings per common share are calculated using the treasury stock method on the basis of the weighted average number of common shares outstanding plus the dilutive effect of stock options and other stock-based awards and the assumed conversion of preferred stock. Net earnings per share were as follows:
(3) Net earnings per share are calculated on Net earnings attributable to Procter & Gamble.
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SHARE-BASED COMPENSATION AND POSTRETIREMENT BENEFITS |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Employee Benefit Plans [Text Block] | Share-Based Compensation and Postretirement Benefits The following table provides a summary of our share-based compensation expense and postretirement benefit costs:
(1) The components of the total net periodic benefit cost for both pension benefits and other retiree benefits for those interim periods, on an annualized basis, do not differ materially from the amounts disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2018, as revised by the Form 8-K filed October 22, 2018 to update the Form 10-K to revise disclosures to reflect the adoption of the Financial Accounting Standards Board (FASB) ASU 2017-07 and 2016-18.
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RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS |
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Risk Management Activities and Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Management And Fair Value [Text Block] | Risk Management Activities and Fair Value Measurements As a multinational company with diverse product offerings, we are exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. There have been no significant changes in our risk management policies or activities during the six months ended December 31, 2018. The Company has not changed its valuation techniques used in measuring the fair value of any financial assets and liabilities during the period. The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. There were no transfers between levels during the periods presented. Also, there was no significant activity within the Level 3 assets and liabilities during the periods presented. There were no significant assets or liabilities that were remeasured at fair value on a non-recurring basis for the six months ended December 31, 2018. The following table sets forth the Company’s financial assets as of December 31, 2018 and June 30, 2018 that are measured at fair value on a recurring basis during the period:
Investment securities are presented in Available-for-sale investment securities and Other noncurrent assets. The amortized cost of U.S. government securities with maturities less than one year was $1,601 as of December 31, 2018 and $2,003 as of June 30, 2018. The amortized cost of U.S. government securities with maturities between one and five years was $3,657 as of December 31, 2018 and $3,659 as of June 30, 2018. The amortized cost of Corporate bond securities with maturities of less than a year was $1,525 as of December 31, 2018 and $1,291 as of June 30, 2018. The amortized cost of Corporate bond securities with maturities between one and five years was $1,760 as of December 31, 2018 and $2,503 as of June 30, 2018. The Company's investments measured at fair value are generally classified as Level 2 within the fair value hierarchy. There are no material investment balances classified as Level 1 or Level 3 within the fair value hierarchy, or that used net asset value as a practical expedient. Fair values are generally estimated based upon quoted market prices for similar instruments. The fair value of long-term debt was $24,602 and $23,402 as of December 31, 2018 and June 30, 2018, respectively. This includes the current portion of debt instruments ($2,301 and $1,769 as of December 31, 2018 and June 30, 2018, respectively). Certain long-term debt (debt tied to derivatives designated as a fair value hedge) is recorded at fair value. All other long-term debt is recorded at amortized cost, but is measured at fair value for disclosure purposes. We consider our debt to be Level 2 in the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments. Disclosures about Financial Instruments The notional amounts and fair values of financial instruments used in hedging transactions as of December 31, 2018 and June 30, 2018 are as follows:
All derivative assets are presented in Prepaid expenses and other current assets or Other noncurrent assets. All derivative liabilities are presented in Accrued and other liabilities or Other noncurrent liabilities. The fair value of the interest rate derivative asset/liability directly offsets the cumulative amount of the fair value hedging adjustment included in the carrying amount of the underlying debt obligation. The carrying amount of the underlying debt obligation, which includes the unamortized discount or premium and the fair value adjustment, was $4,623 and $4,639 as of December 31, 2018 and June 30, 2018, respectively. In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $17,092 and $15,012 as of December 31, 2018 and June 30, 2018, respectively. All of the Company's derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. Before tax gains/(losses) on our financial instruments in hedging relationships are categorized as follows:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | Accumulated Other Comprehensive Income/(Loss) The table below presents the changes in Accumulated other comprehensive income/(loss) (AOCI), including the reclassifications out of Accumulated other comprehensive income/(loss) by component:
The below provides additional details on amounts reclassified from AOCI into the Consolidated Statements of Earnings:
• Financial statement translation: amounts reclassified from AOCI into SG&A.
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RESTRUCTURING PROGRAM |
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Restructuring and Related Activities Disclosure [Text Block] | Restructuring Program The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before-tax costs incurred under the ongoing program have generally ranged from $250 to $500 annually. In fiscal 2017, the Company announced specific elements of a multi-year productivity and cost savings plan to further reduce costs in the areas of supply chain, certain marketing activities and overhead expenses. This program is expected to result in incremental enrollment reductions, along with further optimization of the supply chain and other manufacturing processes. Restructuring costs incurred consist primarily of costs to separate employees, asset-related costs to exit facilities and other costs. For the three and six month periods ended December 31, 2018, the Company incurred total restructuring charges of $177 and $314, respectively. Of these charges incurred, $25 and $97 were recorded in SG&A and $143 and $207 were recorded in Cost of products sold, respectively. The remainder of these charges were recorded in Other non-operating income, net. The following table presents restructuring activity for the six months ended December 31, 2018:
Separation Costs Employee separation charges for the three and six month periods ended December 31, 2018 relate to severance packages for approximately 500 employees and 970 employees, respectively. The packages were predominantly voluntary and the amounts were calculated based on salary levels and past service periods. Severance costs related to voluntary separations are generally charged to earnings when the employee accepts the offer. Asset-Related Costs Asset-related costs consist of both asset write-downs and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or disposal. These assets were written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period. These assets relate primarily to manufacturing consolidations and technology standardizations. The asset-related charges will not have a significant impact on future depreciation charges. Other Costs Other restructuring-type charges are incurred as a direct result of the restructuring program. Such charges primarily include asset removal and termination of contracts related to supply chain optimization. Consistent with our historical policies for ongoing restructuring-type activities, the restructuring program charges are funded by and included within Corporate for both management and segment reporting. Accordingly, all of the charges under the program are included within the Corporate reportable segment. However, for informative purposes, the following table summarizes the total restructuring costs related to our reportable segments:
(1) Corporate includes costs related to allocated overheads, including charges related to our Sales and Market Operations, Global Business Services and Corporate Functions activities.
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Litigation The Company is subject to various legal proceedings and claims arising out of our business which cover a wide range of matters such as antitrust, trade and other governmental regulations, product liability, patent and trademark, advertising, contracts, environmental, labor and employment and tax. With respect to these and other litigation and claims, while considerable uncertainty exists, in the opinion of management and our counsel, the ultimate resolution of the various lawsuits and claims will not materially affect our financial position, results of operations or cash flows. We are also subject to contingencies pursuant to environmental laws and regulations that in the future may require us to take action to correct the effects on the environment of prior manufacturing and waste disposal practices. Based on currently available information, we do not believe the ultimate resolution of environmental remediation will materially affect our financial position, results of operations or cash flows. Income Tax Uncertainties The Company is present in approximately 150 taxable jurisdictions and, at any point in time, has 40 – 50 jurisdictional audits underway at various stages of completion. We evaluate our tax positions and establish liabilities for uncertain tax positions that may be challenged by local authorities and may not be fully sustained, despite our belief that the underlying tax positions are fully supportable. Uncertain tax positions are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, developments in case law and closing of statutes of limitations. Such adjustments are reflected in the tax provision as appropriate. We have tax years open ranging from 2008 and forward. We are generally not able to reliably estimate the ultimate settlement amounts until the close of the audit. While we do not expect material changes, it is possible that the amount of unrecognized benefit with respect to our uncertain tax positions could increase or decrease within the next 12 months. At this time, we are not able to make a reasonable estimate of the range of impact on the balance of uncertain tax positions or the impact on the effective tax rate related to these items. Additional information on the Commitments and Contingencies of the Company can be found in our Annual Report on Form 10-K for the year ended June 30, 2018.
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ACQUISITION |
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Business Combination Disclosure [Text Block] | Merck Acquisition On November 30, 2018, we completed our acquisition of the over the counter (OTC) healthcare business of Merck KGaA (Merck OTC) for $3.7 billion (based on exchange rates at the time of closing) in an all-cash transaction. This business primarily sells OTC consumer healthcare products, mainly in Europe, Latin America and Asia markets. The results of Merck OTC, which are not material to the Company, are reported in our consolidated financial statements beginning December 1, 2018. Total sales for Merck OTC’s most recently completed fiscal year ended December 31, 2017 were approximately $1 billion. The following table presents the preliminary allocation of purchase price related to the Merck OTC business as of the date of acquisition. The preliminary allocation of the purchase price is based on the best estimates of management and is subject to revision based on final determination of fair values of the assets and liabilities acquired, which will be completed as we complete our analysis of the underlying assets and acquired liabilities, such as pensions, litigation cases, environmental issues, and tax positions.
The acquisition resulted in $2.0 billion in goodwill, of which approximately $180 million is expected to be deductible for tax purposes. All of this goodwill was allocated to the Health Care Segment. The goodwill is primarily attributable to the assembled workforce and synergies we expect to generate by combining the Merck OTC business with the Company’s existing personal health care business. We have preliminarily estimated the fair value of Merck OTC’s identifiable intangible assets as $2.1 billion. The preliminary allocation of identifiable intangible assets and their average useful lives is as follows:
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SEGMENT INFORMATION (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Following is a summary of reportable segment results:
(1) % of Net sales by business unit excludes sales held in Corporate.
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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | Goodwill is allocated by reportable segment as follows:
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Schedule of Intangible Assets and Goodwill [Table Text Block] | Identifiable intangible assets at December 31, 2018 were comprised of:
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Schedule of Potential Impacts to Estimated Fair Values [Table Text Block] | The table below provides, in isolation, the estimated fair value impacts related to a 25 basis point increase to discount rate or a 25 basis point decrease to our shorter-term and residual growth rates, both of which would result in impairment charges.
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EARNINGS PER SHARE (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Net earnings per share were as follows:
(3) Net earnings per share are calculated on Net earnings attributable to Procter & Gamble.
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SHARE-BASED COMPENSATION AND POSTRETIREMENT BENEFITS (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Employee Benefit Plans [Table Text Block] | The following table provides a summary of our share-based compensation expense and postretirement benefit costs:
(1) The components of the total net periodic benefit cost for both pension benefits and other retiree benefits for those interim periods, on an annualized basis, do not differ materially from the amounts disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2018, as revised by the Form 8-K filed October 22, 2018 to update the Form 10-K to revise disclosures to reflect the adoption of the Financial Accounting Standards Board (FASB) ASU 2017-07 and 2016-18.
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RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS (Tables) |
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Risk Management Activities and Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table sets forth the Company’s financial assets as of December 31, 2018 and June 30, 2018 that are measured at fair value on a recurring basis during the period:
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Schedule of Derivative Instruments [Table Text Block] | The notional amounts and fair values of financial instruments used in hedging transactions as of December 31, 2018 and June 30, 2018 are as follows:
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Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | Before tax gains/(losses) on our financial instruments in hedging relationships are categorized as follows:
(2) In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in AOCI for such instruments was $228 and $(176), for the three months ended December 31, 2018 and 2017, respectively. The amount of gain/(loss) recognized in AOCI for such instruments was $241 and $(745), for the six months ended December 31, 2018 and 2017, respectively.
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Derivative Instruments, Gain (Loss) [Table Text Block] |
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
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Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The table below presents the changes in Accumulated other comprehensive income/(loss) (AOCI), including the reclassifications out of Accumulated other comprehensive income/(loss) by component:
(3) Adjustment made to early adopt ASU 2018-02: "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," as discussed in Note 2.
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RESTRUCTURING PROGRAM (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table presents restructuring activity for the six months ended December 31, 2018:
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Restructuring and Related Costs [Table Text Block] | However, for informative purposes, the following table summarizes the total restructuring costs related to our reportable segments:
(1) Corporate includes costs related to allocated overheads, including charges related to our Sales and Market Operations, Global Business Services and Corporate Functions activities.
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ACQUISITION - ALLOCATION OF PURCHASE PRICE (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The preliminary allocation of the purchase price is based on the best estimates of management and is subject to revision based on final determination of fair values of the assets and liabilities acquired, which will be completed as we complete our analysis of the underlying assets and acquired liabilities, such as pensions, litigation cases, environmental issues, and tax positions.
(1) Represents a 48% minority ownership interest in the Merck India company.
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ACQUISITION - FAIR VALUE OF INTANGIBLES (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The preliminary allocation of identifiable intangible assets and their average useful lives is as follows:
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NEW ACCOUNTING PRONOUNCEMENTS AND POLICIES - U.S. TAX REFORM (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
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Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jan. 01, 2018 |
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Income Tax Expense (Benefit) | $ 700 | $ 1,472 | $ 1,429 | $ 2,353 | |||
U.S. Tax Cuts and Jobs Act, Effective 2018 | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 28.00% | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Base Rate, Percent | 21.00% | ||||||
Income Tax Expense (Benefit) | $ 628 | $ 602 | |||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 3,800 | ||||||
Deferred Federal Income Tax Expense (Benefit) | $ 3,200 | ||||||
U.S. Tax Cuts and Jobs Act, Effective 2018 | Scenario, Forecast | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
GOODWILL AND OTHER INTANGIBLE ASSETS - IDENTIFIABLE INTANGIBLE ASSETS (Details) $ in Millions |
Dec. 31, 2018
USD ($)
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Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | $ 31,198 |
Accumulated Amortization | (5,251) |
Intangible Assets with Indefinite Lives | |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 22,618 |
Accumulated Amortization | 0 |
Intangible Assets with Determinable Lives | |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 8,580 |
Accumulated Amortization | $ (5,251) |
GOODWILL AND OTHER INTANGIBLE ASSETS - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions |
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Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Jun. 30, 2018 |
|
Other Significant Noncash Transactions [Line Items] | |||||
Amortization of Intangible Assets | $ 81 | $ 75 | $ 154 | $ 152 | |
Goodwill | 46,932 | 46,932 | $ 45,175 | ||
Shave Care | |||||
Other Significant Noncash Transactions [Line Items] | |||||
Goodwill | $ 19,400 | $ 19,400 | |||
Intangible Assets with Indefinite Lives | Gillette | |||||
Other Significant Noncash Transactions [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 5.00% | 5.00% | |||
Intangible Assets, Net (Including Goodwill) | $ 15,700 | $ 15,700 |
GOODWILL AND OTHER INTANGIBLE ASSETS - ADDITIONAL INFORMATION OTHER (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Other Significant Noncash Transactions [Line Items] | ||||
Amortization of Intangible Assets | $ 81 | $ 75 | $ 154 | $ 152 |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
||||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||||||
Net Earnings | $ 3,216 | $ 2,561 | $ 6,427 | $ 5,431 | |||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 22 | 66 | 34 | 83 | |||||||||
Net Earnings/(Loss) Attributable to P&G (Diluted) | 3,194 | 2,495 | 6,393 | 5,348 | |||||||||
Dividends, Preferred Stock | (65) | (62) | (131) | (124) | |||||||||
Net Earnings/(Loss) Attributable to P&G Available to Common Shareholders (Basic) | $ 3,129 | $ 2,433 | $ 6,262 | $ 5,224 | |||||||||
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |||||||||||||
Basic Weighted Average Common Shares Outstanding | 2,499.7 | 2,533.9 | 2,497.8 | 2,542.2 | |||||||||
Effect of Dilutive Securities | |||||||||||||
Conversion of Preferred Shares | [1] | 90.7 | 95.5 | 91.3 | 96.0 | ||||||||
Exercise of Stock Options and Other Unvested Equity Awards | [2] | 32.6 | 40.2 | 28.5 | 41.9 | ||||||||
Diluted Weighted Average Common Shares Outstanding | 2,623.0 | 2,669.6 | 2,617.6 | 2,680.1 | |||||||||
Basic Net Earnings/(Loss) Per Common Share | [3],[4] | $ 1.25 | $ 0.96 | $ 2.51 | $ 2.05 | ||||||||
Diluted Net Earnings/(Loss) Per Common Share | [3],[4] | $ 1.22 | $ 0.93 | $ 2.44 | $ 2.00 | ||||||||
|
EARNINGS PER SHARE - ANTIDILUTIVE SECURITIES (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|||
Employee Stock Option | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | [1] | 23 | 24 | 35 | 22 | |
|
SHARE-BASED COMPENSATION AND POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||
Allocated Share-based Compensation Expense | $ 79 | $ 73 | $ 181 | $ 157 | |||
Pension Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | [1] | 36 | 52 | 64 | 103 | ||
Other Postretirement Benefit Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | [1] | $ (42) | $ (38) | $ (83) | $ (76) | ||
|
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS (Details) - USD ($) $ in Millions |
Dec. 31, 2018 |
Jun. 30, 2018 |
---|---|---|
Fair Value Asset | $ 8,584 | $ 9,422 |
U.S. Government Securities | ||
Fair Value Asset | 5,177 | 5,544 |
Corporate Bond Securities | ||
Fair Value Asset | 3,244 | 3,737 |
Other Investments | ||
Fair Value Asset | $ 163 | $ 141 |
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - DERIVATIVE NOTIONAL AMOUNTS AND FAIR VALUE (Details) - USD ($) $ in Millions |
Dec. 31, 2018 |
Jun. 30, 2018 |
---|---|---|
Derivative [Line Items] | ||
Notional Amount | $ 13,430 | $ 13,793 |
Derivative Asset | 188 | 196 |
Derivative Liability | (116) | (184) |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Notional Amount | 7,025 | 7,358 |
Derivative Asset | 49 | 30 |
Derivative Liability | 29 | 56 |
Derivatives in Fair Value Hedging Relationships | Interest Rate Contracts | ||
Derivative [Line Items] | ||
Notional Amount | 4,550 | 4,587 |
Derivative Asset | 118 | 125 |
Derivative Liability | 28 | 53 |
Derivatives in Net Investment Hedging Relationships | ||
Derivative [Line Items] | ||
Notional Amount | 1,855 | 1,848 |
Derivative Asset | 21 | 41 |
Derivative Liability | 59 | 75 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional Amount | 6,405 | 6,435 |
Derivative Asset | 139 | 166 |
Derivative Liability | $ 87 | $ 128 |
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - GAIN (LOSS) ON DERIVATIVE INSTRUMENTS (EFFECTIVE PORTION) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|||||
Foreign Exchange Contract | Derivatives in Net Investment Hedging Relationships | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gain (Loss) on Derivative Used in Net Investment Hedge, after Tax | [1],[2] | $ 23 | $ (89) | $ 19 | $ (262) | |||
|
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - GAIN (LOSS) ON DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Not Designated as Hedging Instrument | Foreign Currency Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Earnings | $ (5) | $ (1) | $ (7) | $ (2) |
Derivatives in Fair Value Hedging Relationships | Interest Rate Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in Earnings | $ 42 | $ (38) | $ 18 | $ (41) |
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - AMOUNT OF GAINS AND LOSSES ON OUTSTANDING DERIVATIVES - ADDITIONAL INFORMATION (Details) (Details) - Derivatives in Net Investment Hedging Relationships - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 13 | $ 42 | $ 27 | $ 73 |
Accumulated Other Comprehensive Income, Gain (Loss) | $ 228 | $ (176) | $ 241 | $ (745) |
RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS - NOTIONAL AMOUNTS AND FAIR VALUES OF QUALIFYING AND NON-QUALIFYING FINANCIAL INSTRUMENTS USED IN HEDGING TRANSACTIONS - ADDITIONAL INFORMATION (Details) (Details) - Underlying, Other - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2018 |
Jun. 30, 2018 |
|
Derivatives in Fair Value Hedging Relationships | ||
Derivative [Line Items] | ||
Underlying Debt Obligation, Carrying Amount | $ 4,623 | $ 4,639 |
Derivatives in Net Investment Hedging Relationships | ||
Derivative [Line Items] | ||
Underlying Debt Obligation, Carrying Amount | $ 17,092 | $ 15,012 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - NET OF TAX EXPENSE (BENEFIT) (Details) $ in Millions |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2018
USD ($)
| ||||||
Accumulated Other Comprehensive Income (Loss), Derivative Qualifying as Hedge, Excluded Component, Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | $ 61 | [1] | ||||
Reclassification from AOCI, Current Period, Tax | 0 | [2] | ||||
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 0 | [1] | ||||
Reclassification from AOCI, Current Period, Tax | 0 | [2] | ||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest | ||||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 38 | [1] | ||||
Reclassification from AOCI, Current Period, Tax | $ 32 | [2] | ||||
|
RESTRUCTURING PROGRAM - ADDITIONAL INFORMATION (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Dec. 31, 2018
USD ($)
employee
|
Sep. 30, 2018
USD ($)
employee
|
Dec. 31, 2018
USD ($)
|
|
Restructuring Charges | $ 177 | $ 137 | $ 314 |
Minimum | |||
Restructuring and Related Cost, Amounts Historically Incurred | 250 | ||
Maximum | |||
Restructuring and Related Cost, Amounts Historically Incurred | 500 | ||
Selling, General and Administrative Expense | |||
Restructuring Charges | 25 | 97 | |
Cost of Products Sold | |||
Restructuring Charges | 143 | $ 207 | |
Separations | |||
Restructuring Charges | $ 56 | $ 53 | |
Restructuring and Related Cost, Number of Severance Packages Executed | employee | 970 | 500 |
RESTRUCTURING PROGRAM - RESTRUCTURING RESERVE BY TYPE OF COSTS (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Dec. 31, 2018 |
|
Restructuring Reserve [Roll Forward] | |||
Reserve Balance June 30, 2018 | $ 513 | $ 513 | |
Restructuring Charges | $ 177 | 137 | 314 |
Cash Spent | (295) | ||
Charges Against Assets | (50) | ||
Reserve Balance December 31, 2018 | 482 | 482 | |
Separations | |||
Restructuring Reserve [Roll Forward] | |||
Reserve Balance June 30, 2018 | 259 | 259 | |
Restructuring Charges | 56 | 53 | |
Cash Spent | (115) | ||
Charges Against Assets | 0 | ||
Reserve Balance December 31, 2018 | 253 | 253 | |
Asset-related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Reserve Balance June 30, 2018 | 0 | 0 | |
Restructuring Charges | 22 | 28 | |
Cash Spent | 0 | ||
Charges Against Assets | (50) | ||
Reserve Balance December 31, 2018 | 0 | 0 | |
Other Costs | |||
Restructuring Reserve [Roll Forward] | |||
Reserve Balance June 30, 2018 | 254 | 254 | |
Restructuring Charges | 99 | $ 56 | |
Cash Spent | (180) | ||
Charges Against Assets | 0 | ||
Reserve Balance December 31, 2018 | $ 229 | $ 229 |
RESTRUCTURING PROGRAM - RESTRUCTURING COSTS PER SEGMENT (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Dec. 31, 2018 |
||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 177 | $ 137 | $ 314 | |||
Beauty | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 17 | 27 | ||||
Grooming | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 25 | 31 | ||||
Health Care | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 4 | 12 | ||||
Fabric & Home Care | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 18 | 31 | ||||
Baby, Feminine & Family Care | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 70 | 91 | ||||
Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 43 | $ 122 | [1] | |||
|
COMMITMENTS AND CONTINGENCIES - ADDITIONAL INFORMATION (Details) |
6 Months Ended |
---|---|
Dec. 31, 2018
audit
taxable_jurisdiction
| |
Loss Contingencies [Line Items] | |
Number of Taxable Jurisdictions | taxable_jurisdiction | 150 |
Minimum | |
Loss Contingencies [Line Items] | |
Number of Audits Typically Underway | 40 |
Maximum | |
Loss Contingencies [Line Items] | |
Number of Audits Typically Underway | 50 |
ACQUISITION - ALLOCATION OF PURCHASE PRICE (Details) - USD ($) $ in Millions |
Dec. 31, 2018 |
Nov. 30, 2018 |
Jun. 30, 2018 |
||
---|---|---|---|---|---|
Business Acquisition [Line Items] | |||||
Goodwill | $ 46,932 | $ 45,175 | |||
PHC-MERCK ACQUISITION [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 393 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 122 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2,111 | ||||
Goodwill | 2,010 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 143 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 4,779 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 233 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 661 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | 60 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 954 | ||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | [1] | 169 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 3,656 | ||||
|
ACQUISITION ACQUISITION - FAIR VALUE OF INTANGIBLES (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Nov. 30, 2018 |
|
Other Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |
PHC-MERCK ACQUISITION [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 1,165 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2,111 | |
PHC-MERCK ACQUISITION [Member] | Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 701 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | |
PHC-MERCK ACQUISITION [Member] | Patents and Developed Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 118 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | |
PHC-MERCK ACQUISITION [Member] | Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 346 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | |
PHC-MERCK ACQUISITION [Member] | Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 946 |
ACQUISITION - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|---|
Nov. 30, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Jun. 30, 2018 |
|
Business Acquisition [Line Items] | |||||||
Goodwill | $ 46,932 | $ 46,932 | $ 46,932 | $ 45,175 | |||
Net Sales | $ 17,438 | $ 17,395 | $ 34,128 | $ 34,048 | |||
PHC-MERCK ACQUISITION [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Payments to Acquire Businesses, Gross | $ 3,700 | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 48.00% | ||||||
Goodwill | $ 2,010 | ||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 180 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 2,111 | ||||||
Net Sales | $ 1,000 | ||||||
Trade Names [Member] | PHC-MERCK ACQUISITION [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | ||||||
Trade Names [Member] | Minimum | PHC-MERCK ACQUISITION [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||||
Trade Names [Member] | Maximum | PHC-MERCK ACQUISITION [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | ||||||
Patents and Developed Technology [Member] | PHC-MERCK ACQUISITION [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||||
Customer Relationships [Member] | PHC-MERCK ACQUISITION [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years |
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