Colgate Palmolive Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

cl-20200930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________________________

FORM 10-Q

_________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from________ to________ .

Commission File Number: 1-644

COLGATE-PALMOLIVE COMPANY

(Exact name of registrant as specified in its charter)


Delaware			13-1815595
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

300 Park Avenue

New York,

New York

10022

(Address of principal executive offices)

(Zip Code)

(212) 310-2000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 par value

New York Stock Exchange

0.000% Notes due 2021

CL21A

New York Stock Exchange

0.500% Notes due 2026

CL26

New York Stock Exchange

1.375% Notes due 2034

CL34

New York Stock Exchange

0.875% Notes due 2039

CL39

New York Stock Exchange

NO CHANGES

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class

Shares Outstanding

Date

Common stock, $1.00 par value

857,168,831

September 30, 2020

PART I. FINANCIAL INFORMATION

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Income

(Dollars in Millions Except Per Share Amounts)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Net sales	$	4,153	$	3,928	$	12,147	$	11,678
Cost of sales	1,613		1,612		4,773		4,767
Gross profit	2,540		2,316		7,374		6,911
Selling, general and administrative expenses	1,518		1,429		4,386		4,163
Other (income) expense, net	4		31		72		125
Operating profit	1,018		856		2,916		2,623
Non-service related postretirement costs	15		27		56		79
Interest (income) expense, net	36		35		107		113
Income before income taxes	967		794		2,753		2,431
Provision for income taxes	222		167		585		586
Net income including noncontrolling interests	745		627		2,168		1,845
Less: Net income attributable to noncontrolling interests	47		49		120		121
Net income attributable to Colgate-Palmolive Company	$	698	$	578	$	2,048	$	1,724

Earnings per common share, basic	$	0.81	$	0.67	$	2.39	$	2.00

Earnings per common share, diluted	$	0.81	$	0.67	$	2.38	$	2.00

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Comprehensive Income

(Dollars in Millions)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Net income including noncontrolling interests	$	745	$	627	$	2,168	$	1,845
Other comprehensive income (loss), net of tax:
Cumulative translation adjustments	57		(111)		(230)		(60)
Retirement plans and other retiree benefit adjustments	54		5		84		30
Gains (losses) on cash flow hedges	1		4		(2)		(3)
Total Other comprehensive income (loss), net of tax	112		(102)		(148)		(33)
Total Comprehensive income including noncontrolling interests	857		525		2,020		1,812
Less: Net income attributable to noncontrolling interests	47		49		120		121
Less: Cumulative translation adjustments attributable to noncontrolling interests	12		(6)		(1)		(6)
Total Comprehensive income attributable to noncontrolling interests	59		43		119		115
Total Comprehensive income attributable to Colgate-Palmolive Company	$	798	$	482	$	1,901	$	1,697

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Balance Sheets

(Dollars in Millions)

(Unaudited)


	September 30, 2020		December 31, 2019
Assets
Current Assets
Cash and cash equivalents	$	989	$	883
Receivables (net of allowances of $88 and $76, respectively)	1,292		1,440
Inventories	1,578		1,400
Other current assets	508		456
Total current assets	4,367		4,179
Property, plant and equipment:
Cost	8,380		8,580
Less: Accumulated depreciation	(4,874)		(4,830)
	3,506		3,750
Goodwill	3,711		3,508
Other intangible assets, net	2,838		2,667
Deferred income taxes	208		177
Other assets	836		753
Total assets	$	15,466	$	15,034
Liabilities and Shareholders’ Equity
Current Liabilities
Notes and loans payable	$	9	$	260
Current portion of long-term debt	256		254
Accounts payable	1,225		1,237
Accrued income taxes	423		370
Other accruals	2,568		1,917
Total current liabilities	4,481		4,038
Long-term debt	6,971		7,333
Deferred income taxes	406		507
Other liabilities	2,535		2,598
Total liabilities	14,393		14,476
Shareholders’ Equity
Common stock	1,466		1,466
Additional paid-in capital	2,837		2,488
Retained earnings	23,052		22,501
Accumulated other comprehensive income (loss)	(4,421)		(4,273)
Unearned compensation	(1)		(2)
Treasury stock, at cost	(22,280)		(22,063)
Total Colgate-Palmolive Company shareholders’ equity	653		117
Noncontrolling interests	420		441
Total equity	1,073		558
Total liabilities and equity	$	15,466	$	15,034

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Cash Flows

(Dollars in Millions)

(Unaudited)


	Nine Months Ended
	September 30,
	2020		2019
Operating Activities
Net income including noncontrolling interests	$	2,168	$	1,845
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations:
Depreciation and amortization	400		386
Restructuring and termination benefits, net of cash	(66)		11
Stock-based compensation expense	85		83
Deferred income taxes	(124)		79
Voluntary benefit plan contributions	—		(113)
Cash effects of changes in:
Receivables	62		(65)
Inventories	(214)		(69)
Accounts payable and other accruals	468		(52)
Other non-current assets and liabilities	(23)		58
Net cash provided by (used in) operations	2,756		2,163
Investing Activities
Capital expenditures	(249)		(226)
Purchases of marketable securities and investments	(109)		(152)
Proceeds from sale of marketable securities and investments	42		14
Payment for acquisitions, net of cash acquired	(352)		(1,711)
Net cash provided by (used in) investing activities	(668)		(2,075)
Financing Activities
Principal payments on debt	(3,269)		(4,184)
Proceeds from issuance of debt	2,500		6,008
Dividends paid	(1,162)		(1,140)
Purchases of treasury shares	(578)		(1,024)
Proceeds from exercise of stock options	640		490
Purchases of non-controlling interests in subsidiaries	(99)		—
Net cash provided by (used in) financing activities	(1,968)		150
Effect of exchange rate changes on Cash and cash equivalents	(14)		(16)
Net increase (decrease) in Cash and cash equivalents	106		222
Cash and cash equivalents at beginning of the period	883		726
Cash and cash equivalents at end of the period	$	989	$	948
Supplemental Cash Flow Information
Income taxes paid	$	606	$	669

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Changes in Shareholders’ Equity

(Dollars in Millions)

(Unaudited)


Three Months Ended September 30, 2020
	Colgate-Palmolive Company Shareholders’ Equity
	Common Stock		Additional Paid-in Capital		Unearned Compensation		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)(1)		Noncontrolling Interests
Balance, June 30, 2020	$	1,466	$	2,666	$	(1)	$	(22,075)	$	22,731	$	(4,519)	$	464
Net income	—		—		—		—		698		—		47
Other comprehensive income (loss), net of tax	—		—		—		—		—		100		12
Dividends ($0.44 per share)	—		—		—		—		(379)		—		—
Stock-based compensation expense	—		53		—		—		—		—		—
Shares issued for stock options	—		130		—		132		—		—		—
Shares issued for restricted stock units	—		(13)		—		13		—		—		—
Treasury stock acquired	—		—		—		(350)		—		—		—
Noncontrolling interests acquired	—		—		—		—		—		—		(99)
Other	—		1		—		—		2		(2)		(4)
Balance, September 30, 2020	$	1,466	$	2,837	$	(1)	$	(22,280)	$	23,052	$	(4,421)	$	420


Three Months Ended September 30, 2019
	Colgate-Palmolive Company Shareholders’ Equity
	Common Stock		Additional Paid-in Capital		Unearned Compensation		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)(1)		Noncontrolling Interests
Balance, June 30, 2019	$	1,466	$	2,338	$	(3)	$	(21,682)	$	21,653	$	(4,119)	$	337
Net income	—		—		—		—		578		—		49
Other comprehensive income (loss), net of tax	—		—		—		—		—		(96)		(6)
Dividends ($0.43 per share)	—		—		—		—		(370)		—		(2)
Stock-based compensation expense	—		49		—		—		—		—		—
Shares issued for stock options	—		93		—		128		—		—		—
Shares issued for restricted stock units	—		(14)		—		14		—		—		—
Treasury stock acquired	—		—		—		(360)		—		—		—
Noncontrolling interests assumed through acquisition	—		—		—		—		—		—		120
Other	—		—		2		—		(1)		—		—
Balance, September 30, 2019	$	1,466	$	2,466	$	(1)	$	(21,900)	$	21,860	$	(4,215)	$	498

(1) Accumulated other comprehensive income (loss) includes cumulative translation losses of $3,357 at September 30, 2020 ($3,209 at September 30, 2019) and $3,402 at June 30, 2020 ($3,104 at June 30, 2019), respectively, and unrecognized retirement plan and other retiree benefits costs of $1,054 at September 30, 2020 ($1,008 at September 30, 2019) and $1,108 at June 30, 2020 ($1,013 at June 30, 2019), respectively.

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Changes in Shareholders’ Equity

(Dollars in Millions)

(Unaudited)


Nine Months Ended September 30, 2020
	Colgate-Palmolive Company Shareholders’ Equity
	Common Stock		Additional Paid-in Capital		Unearned Compensation		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)(1)		Noncontrolling Interests
Balance, December 31, 2019	$	1,466	$	2,488	$	(2)	$	(22,063)	$	22,501	$	(4,273)	$	441
Net income	—		—		—		—		2,048		—		120
Other comprehensive income (loss), net of tax	—		—		—		—		—		(147)		(1)
Dividends ($1.75 per share)*	—		—		—		—		(1,503)		—		(37)
Stock-based compensation expense	—		85		—		—		—		—		—
Shares issued for stock options	—		290		—		329		—		—		—
Shares issued for restricted stock units	—		(30)		—		30		—		—		—
Treasury stock acquired	—		—		—		(578)		—		—		—
Noncontrolling interests acquired	—		—		—		—		—		—		(99)
Other	—		4		1		2		6		(1)		(4)
Balance, September 30, 2020	$	1,466	$	2,837	$	(1)	$	(22,280)	$	23,052	$	(4,421)	$	420


Nine Months Ended September 30, 2019
	Colgate-Palmolive Company Shareholders’ Equity
	Common Stock		Additional Paid-in Capital		Unearned Compensation		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)(1)		Noncontrolling Interests
Balance, December 31, 2018	$	1,466	$	2,204	$	(3)	$	(21,196)	$	21,615	$	(4,188)	$	299
Net income	—		—		—		—		1,724		—		121
Other comprehensive income (loss), net of tax	—		—		—		—		—		(27)		(6)
Dividends ($1.71 per share)*	—		—		—		—		(1,473)		—		(36)
Stock-based compensation expense	—		83		—		—		—		—		—
Shares issued for stock options	—		207		—		290		—		—		—
Shares issued for restricted stock units	—		(28)		—		28		—		—		—
Treasury stock acquired	—		—		—		(1,024)		—		—		—
Noncontrolling interests assumed through acquisition	—		—		—		—		—		—		120
Other	—		—		2		2		(6)		—		—
Balance, September 30, 2019	$	1,466	$	2,466	$	(1)	$	(21,900)	$	21,860	$	(4,215)	$	498

(1) Accumulated other comprehensive income (loss) includes cumulative translation losses of $3,357 at September 30, 2020 ($3,209 at September 30, 2019) and $3,128 at December 31, 2019 ($3,155 at December 31, 2018), respectively, and unrecognized retirement plan and other retiree benefits costs of $1,054 at September 30, 2020 ($1,008 at September 30, 2019) and $1,138 at December 31, 2019 ($1,038 at December 31, 2018), respectively.

* Two dividends were declared in each of the first quarters of 2020 and 2019

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

1. Basis of Presentation

The Condensed Consolidated Financial Statements reflect all normal recurring adjustments which, in management’s opinion, are necessary for a fair statement of the results for interim periods. Results of operations for interim periods may not be representative of results to be expected for a full year. Colgate-Palmolive Company (together with its subsidiaries, the “Company” or “Colgate”) reclassifies certain prior year amounts, as applicable, to conform to the current year presentation.

For a complete set of financial statement notes, including the Company’s significant accounting policies, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission (the “SEC”).

2. Use of Estimates

Provisions for certain expenses, including income taxes, advertising and consumer promotion, are based on full year assumptions and are included in the accompanying Condensed Consolidated Financial Statements in proportion with estimated annual tax rates, the passage of time or estimated annual sales, as applicable.

3. Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides optional expedients and exceptions for applying generally accepted accounting principles (“GAAP”) to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This new guidance was effective upon issuance of this ASU for contract modifications and hedging relationships on a prospective basis and is not expected to have a material impact on the Company’s Consolidated Financial Statements.

In March 2020, the FASB issued ASU No. 2020-03, “Codification to Financial Instruments.” This ASU improves and clarifies various financial instruments topics, including the current expected credit losses (“CECL”) standard issued in 2016. The ASU includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments related to Issue 1, Issue 2, Issue 4 and Issue 5 were effective upon issuance of this update. The amendments related to Issue 3, Issue 6 and Issue 7 were effective for the Company beginning on January 1, 2020. The new guidance did not have a material impact on the Company’s Consolidated Financial Statements.

In January 2020, the FASB issued ASU No. 2020-01, “Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323) and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The guidance provides clarification of the interaction of rules for equity securities, the equity method of accounting and forward contracts and purchase options on certain types of securities. This new guidance is effective for the Company beginning on January 1, 2021, with early adoption permitted. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements.

In December 2019, the FASB issued ASU No. 2019-12, “Income taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. This new guidance is effective for the Company beginning on January 1, 2021, with early adoption permitted. This new guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements.

In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825).” This ASU clarifies three topics related to financial instruments accounting. This new guidance was effective for the Company beginning on January 1, 2020. The new guidance did not have a material impact on the Company’s Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This new guidance removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure requirements. The new disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This new guidance was effective for the Company beginning on January 1, 2020 and did not have a material impact on the Company’s Consolidated Financial Statements.

In January 2017, the FASB issued ASU No. 2017-04, “Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” eliminating the requirement to calculate implied fair value, essentially eliminating step two from the goodwill impairment test. The new standard requires goodwill impairment to be based upon the results of step one of the impairment test, which is defined as the excess of the carrying value of a reporting unit over its fair value. Any impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard was effective for the Company on a prospective basis beginning on January 1, 2020 and did not have a material impact on the Company’s Consolidated Financial Statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326) Codification Improvements to Financial Instruments-Credit Losses (Topic 326).” Subsequent updates were released in November 2018 (ASU No. 2018-19), November 2019 (ASU No. 2019-10 and 2019-11) and February 2020 (ASU No. 2020-02) that provided additional guidance on this Topic. This ASU introduces the CECL model, which will require an entity to measure credit losses for certain financial instruments and financial assets, including trade receivables. Under this update, on initial recognition and at each reporting period, an entity will be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. The Company adopted the new standard, which primarily impacts the Company’s trade receivables and related methodology for assessing the collectability of its customer accounts, on January 1, 2020, on a “modified retrospective” basis. The adoption of this ASU did not have a material impact on the Company’s Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

4. Acquisitions

Hello Products LLC

On January 31, 2020, the Company acquired Hello Products LLC, an oral care business, for cash consideration of $351. The acquisition was financed with a combination of debt and cash. This acquisition is part of the Company’s strategy to focus on high growth segments within its Oral Care, Personal Care and Pet Nutrition businesses.

The total purchase price consideration of $351 has been allocated to the net assets acquired based on their respective preliminary estimated fair values as follows:


Receivables	$	11
Inventories	13
Other assets and liabilities, net	(4)
Other intangible assets	160

Goodwill	171
Fair value of net assets acquired	$	351

Other intangible assets acquired include trademarks, valued at $115, which are considered to have a finite useful life of 25 years, and customer relationships valued at $45, which are considered to have a finite useful life of 17 years. Goodwill of $171 was allocated to the North America segment. The Company expects that goodwill will be deductible for tax purposes.

The preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed are subject to revisions, which may result in additional adjustments to the preliminary values discussed above. The Company expects to finalize the purchase price allocation no later than the first quarter of 2021.

Pro forma results of operations have not been presented as the impact on the Company’s Condensed Consolidated Financial Statements is not material.

Laboratoires Filorga Cosmétiques (“Filorga”)

On September 19, 2019, the Company acquired the Filorga skin health business ("Filorga") for cash consideration of €1,516 (approximately $1,674), which included interest on the equity purchase price, plus additional consideration of €32 (approximately $38), the majority of which related to repayment of loans from former shareholders of Filorga. Filorga is a premium anti-aging skin health brand focused primarily on facial care. This acquisition is part of the Company’s strategy to focus on high growth segments within its Oral Care, Personal Care and Pet Nutrition businesses, including by expanding its portfolio in premium skin health.

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

The total purchase price consideration of $1,712 has been allocated to the net assets acquired based on their respective preliminary estimated fair values as follows:


Cash	$	30
Receivables	53
Inventories	70
Other current assets	18
Other intangible assets	1,051
Goodwill	923
Other current liabilities	(67)
Deferred income taxes	(276)
Noncontrolling interests	(90)
Fair value of net assets acquired	$	1,712

Other intangible assets acquired include trademarks of $774, which are considered to have an indefinite useful life, and customer relationships of $277, which are considered to have a finite useful life of 14 years. Goodwill of $923 was allocated to the Europe segment. Goodwill will not be deductible for tax purposes.

In the third quarter of 2020, the Company completed the purchase of the outstanding non-controlling interest of Filorga’s joint venture based in Hong Kong and covering the Hong Kong and China markets, for approximately €85 (approximately $99) in cash.

Pro forma results of operations have not been presented as the impact on the Company’s Condensed Consolidated Financial Statements is not material.

Nigeria Joint Venture

On August 15, 2019, the Company acquired a 51% controlling interest in Colgate Tolaram Pte. Ltd., a joint venture which owns the Nigeria-based Hypo Homecare Products Limited, for $31.

Pro forma results of operations have not been presented as the impact on the Company’s Condensed Consolidated Financial Statements is not material.

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

5. Restructuring and Related Implementation Charges

The Company’s restructuring program (the “Global Growth and Efficiency Program”), which commenced in the fourth quarter of 2012, concluded on December 31, 2019. Initiatives under the Global Growth and Efficiency Program fit within the program’s three focus areas of expanding commercial hubs, extending shared business services and streamlining global functions and optimizing the global supply chain and facilities.

During the three months ended September 30, 2020, the Company adjusted the accrual balances related to certain projects approved prior to the conclusion of the Global Growth and Efficiency Program to reflect its revised estimate of remaining liabilities. This adjustment resulted in a reduction of $16 ($13 after-tax), of which $3 was recorded in Selling, general and administrative expenses and $13 was recorded in Other (income) expense, net. No new restructuring projects were approved for implementation during the nine months ended September 30, 2020.

For the three and nine months ended September 30, 2019 restructuring and implementation-related charges are reflected in the income statement as follows:


	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Cost of sales	$	1	$	9
Selling, general and administrative expenses	28		42
Other (income) expense, net	(3)		43
Non-service related postretirement costs	1		4
Total Global Growth and Efficiency Program charges, pretax	$	27	$	98

Price	73.26	EPS	3
Shares	862	P/E	25
MCap	63,179	P/FCF	29
Net Debt	6,700	EBIT	3,074
TEV	69,879	TEV/EBIT	23
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-10-30
10-Q	2020-06-30	Filed 2020-07-31
10-Q	2020-03-31	Filed 2020-05-01
10-K	2019-12-31	Filed 2020-02-21
10-Q	2019-09-30	Filed 2019-11-01
10-Q	2019-06-30	Filed 2019-07-26
10-Q	2019-03-31	Filed 2019-04-26
10-K	2018-12-31	Filed 2019-02-21
10-Q	2018-09-30	Filed 2018-10-26
10-Q	2018-06-30	Filed 2018-07-27
10-Q	2018-03-31	Filed 2018-04-27
10-K	2017-12-31	Filed 2018-02-15
10-Q	2017-09-30	Filed 2017-10-27
10-Q	2017-06-30	Filed 2017-07-21
10-Q	2017-03-31	Filed 2017-04-28
10-K	2016-12-31	Filed 2017-02-23
10-Q	2016-09-30	Filed 2016-10-27
10-Q	2016-06-30	Filed 2016-07-28
10-Q	2016-03-31	Filed 2016-04-28
10-K	2015-12-31	Filed 2016-02-18
10-Q	2015-09-30	Filed 2015-10-30
10-Q	2015-06-30	Filed 2015-07-30
10-Q	2015-03-31	Filed 2015-04-30
10-K	2014-12-31	Filed 2015-02-19
10-Q	2014-09-30	Filed 2014-10-24
10-Q	2014-06-30	Filed 2014-07-31
10-Q	2014-03-31	Filed 2014-04-25
10-K	2013-12-31	Filed 2014-02-20
10-Q	2013-09-30	Filed 2013-10-24
10-Q	2013-06-30	Filed 2013-07-25
10-Q	2013-03-31	Filed 2013-04-25
10-K	2012-12-31	Filed 2013-02-21
10-Q	2012-09-30	Filed 2012-10-25
10-Q	2012-06-30	Filed 2012-07-26
10-Q	2012-03-31	Filed 2012-04-26
10-K	2011-12-31	Filed 2012-02-23
10-Q	2011-09-30	Filed 2011-10-27
10-Q	2011-06-30	Filed 2011-07-28
10-Q	2011-03-31	Filed 2011-04-28
10-K	2010-12-31	Filed 2011-02-24
10-Q	2010-09-30	Filed 2010-10-28
10-Q	2010-06-30	Filed 2010-07-29
10-Q	2010-03-31	Filed 2010-04-29
10-K	2009-12-31	Filed 2010-02-25

8-K	2020-11-18
8-K	2020-10-30
8-K	2020-10-30
8-K	2020-07-31
8-K	2020-05-14
8-K	2020-05-01
8-K	2020-03-11
8-K	2020-01-31
8-K	2019-11-01
8-K	2019-09-19
8-K	2019-07-26
8-K	2019-07-11
8-K	2019-06-18
8-K	2019-05-10
8-K	2019-04-26
8-K	2019-03-14
8-K	2019-02-26
8-K	2019-02-21
8-K	2019-02-11
8-K	2019-01-25
8-K	2018-10-26
8-K	2018-10-10
8-K	2018-09-13
8-K	2018-07-27
8-K	2018-07-11
8-K	2018-06-18
8-K	2018-05-11
8-K	2018-05-04
8-K	2018-04-27
8-K	2018-03-19
8-K	2018-03-07
8-K	2018-01-26

EX-10.A	exhibit10-a093020q32020.htm
EX-31.A	exhibit31a093020q32020.htm
EX-31.B	exhibit31b093020q32020.htm
EX-32	exhibit32093020q32020.htm

CL 10Q Quarterly Report

Colgate Palmolive Earnings 2020-09-30