COLGATE PALMOLIVE CO [CL] Filings

10-Q 1 cl-20220630.htm 10-Q cl-20220630

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 June 30, 2022


☐			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

0.500% Notes due 2026

CL26

New York Stock Exchange

0.300% Notes due 2029

CL29

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

834,120,172

June 30, 2022

PART I. FINANCIAL INFORMATION

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Income

(Dollars in Millions Except Per Share Amounts)

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net sales	$	4,484	$	4,260	$	8,883	$	8,604
Cost of sales	1,930		1,704		3,757		3,411
Gross profit	2,554		2,556		5,126		5,193
Selling, general and administrative expenses	1,657		1,568		3,298		3,173
Other (income) expense, net	13		(8)		84		20
Operating profit	884		996		1,744		2,000
Non-service related postretirement costs	12		18		50		36
Interest (income) expense, net	31		25		58		54
Income before income taxes	841		953		1,636		1,910
Provision for income taxes	202		212		394		441
Net income including noncontrolling interests	639		741		1,242		1,469
Less: Net income attributable to noncontrolling interests	36		38		80		85
Net income attributable to Colgate-Palmolive Company	$	603	$	703	$	1,162	$	1,384

Earnings per common share, basic	$	0.72	$	0.83	$	1.39	$	1.63

Earnings per common share, diluted	$	0.72	$	0.83	$	1.38	$	1.63

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Comprehensive Income

(Dollars in Millions)

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net income including noncontrolling interests	$	639	$	741	$	1,242	$	1,469
Other comprehensive income (loss), net of tax:
Cumulative translation adjustments	(146)		106		(66)		(52)
Retirement plans and other retiree benefit adjustments	13		16		28		18
Gains (losses) on cash flow hedges	61		(35)		102		8
Total Other comprehensive income (loss), net of tax	(72)		87		64		(26)
Total Comprehensive income including noncontrolling interests	567		828		1,306		1,443
Less: Net income attributable to noncontrolling interests	36		38		80		85
Less: Cumulative translation adjustments attributable to noncontrolling interests	(14)		—		(16)		(3)
Total Comprehensive income attributable to noncontrolling interests	22		38		64		82
Total Comprehensive income attributable to Colgate-Palmolive Company	$	545	$	790	$	1,242	$	1,361

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Balance Sheets

(Dollars in Millions)

(Unaudited)


	June 30, 2022		December 31, 2021
Assets
Current Assets
Cash and cash equivalents	$	858	$	832
Receivables (net of allowances of $71 and $78, respectively)	1,490		1,297
Inventories	2,012		1,692
Other current assets	800		576
Total current assets	5,160		4,397
Property, plant and equipment:
Cost	9,014		8,899
Less: Accumulated depreciation	(5,249)		(5,169)
	3,765		3,730
Goodwill	3,238		3,284
Other intangible assets, net	2,314		2,462
Deferred income taxes	188		193
Other assets	1,046		974
Total assets	$	15,711	$	15,040
Liabilities and Shareholders’ Equity
Current Liabilities
Notes and loans payable	$	16	$	39
Current portion of long-term debt	13		12
Accounts payable	1,507		1,479
Accrued income taxes	390		436
Other accruals	2,469		2,085
Total current liabilities	4,395		4,051
Long-term debt	7,957		7,194
Deferred income taxes	426		395
Other liabilities	2,375		2,429
Total liabilities	15,153		14,069
Shareholders’ Equity
Common stock, $1 par value (2,000,000,000 shares authorized, 1,465,706,360 shares issued)	1,466		1,466
Additional paid-in capital	3,402		3,269
Retained earnings	24,342		24,350
Accumulated other comprehensive income (loss)	(4,306)		(4,386)
Unearned compensation	—		(1)
Treasury stock, at cost	(24,736)		(24,089)
Total Colgate-Palmolive Company shareholders’ equity	168		609
Noncontrolling interests	390		362
Total equity	558		971
Total liabilities and equity	$	15,711	$	15,040

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Cash Flows

(Dollars in Millions)

(Unaudited)


	Six Months Ended
	June 30,
	2022		2021
Operating Activities
Net income including noncontrolling interests	$	1,242	$	1,469
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations:
Depreciation and amortization	276		274
Restructuring and termination benefits, net of cash	73		(15)
Stock-based compensation expense	45		58

Deferred income taxes	(16)		(65)

Cash effects of changes in:
Receivables	(191)		(188)
Inventories	(332)		(39)
Accounts payable and other accruals	(167)		(254)
Other non-current assets and liabilities	(16)		(15)
Net cash provided by (used in) operations	914		1,225
Investing Activities
Capital expenditures	(300)		(237)
Purchases of marketable securities and investments	(126)		(80)
Proceeds from sale of marketable securities and investments	35		46
Payment for acquisition, net of cash acquired	(90)		—
Other investing activities	(1)		(18)
Net cash provided by (used in) investing activities	(482)		(289)
Financing Activities
Short-term borrowing (repayment) less than 90 days, net	988		451

Proceeds from issuance of debt	14		25
Dividends paid	(814)		(796)
Purchases of treasury shares	(791)		(713)
Proceeds from exercise of stock options	236		151

Other financing activities	(18)		(2)
Net cash provided by (used in) financing activities	(385)		(884)
Effect of exchange rate changes on Cash and cash equivalents	(21)		(3)
Net increase (decrease) in Cash and cash equivalents	26		49
Cash and cash equivalents at beginning of the period	832		888
Cash and cash equivalents at end of the period	$	858	$	937
Supplemental Cash Flow Information
Income taxes paid	$	477	$	542

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 June 30, 2022
	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, March 31, 2022	$	1,466	$	3,355	$	—	$	(24,401)	$	24,149	$	(4,248)	$	407
Net income	—		—		—		—		603		—		36
Other comprehensive income (loss), net of tax	—		—		—		—		—		(58)		(14)
Dividends ($0.47 per share)	—		—		—		—		(410)		—		(42)
Stock-based compensation expense	—		16		—		—		—		—		—
Shares issued for stock options	—		31		—		44		—		—		—
Shares issued for restricted stock units	—		(1)		—		1		—		—		—
Treasury stock acquired	—		—		—		(381)		—		—		—

Other	—		1		—		1		—		—		3
Balance, June 30, 2022	$	1,466	$	3,402	$	—	$	(24,736)	$	24,342	$	(4,306)	$	390


Three Months Ended June 30, 2021
	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 March 31, 2021	$	1,466	$	3,011	$	—	$	(23,384)	$	23,624	$	(4,455)	$	401
Net income	—		—		—		—		703		—		38
Other comprehensive income (loss), net of tax	—		—		—		—		—		87		—
Dividends ($0.45 per share)	—		—		—		—		(381)		—		(42)
Stock-based compensation expense	—		20		—		—		—		—		—
Shares issued for stock options	—		54		—		58		—		—		—
Shares issued for restricted stock units	—		(1)		—		1		—		—		—
Treasury stock acquired	—		—		—		(341)		—		—		—

Other	—		1		—		1		—		—		1
Balance, June 30, 2021	$	1,466	$	3,085	$	—	$	(23,665)	$	23,946	$	(4,368)	$	398

(1) Accumulated other comprehensive income (loss) includes cumulative translation losses of $3,398 at June 30, 2022 ($3,207 at June 30, 2021) and $3,269 at March 31, 2022 ($3,313 at March 31, 2021), respectively, and unrecognized retirement plan and other retiree benefits costs of $1,015 at June 30, 2022 ($1,160 at June 30, 2021) and $1,030 at March 31, 2022 ($1,176 at March 31, 2021), respectively.

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Statements of Changes in Shareholders’ Equity

(Dollars in Millions)

(Unaudited)


Six Months Ended June 30, 2022
	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, 2021	$	1,466	$	3,269	$	(1)	$	(24,089)	$	24,350	$	(4,386)	$	362
Net income	—		—		—		—		1,162		—		80
Other comprehensive income (loss), net of tax	—		—		—		—		—		80		(16)
Dividends ($1.39 per share)*	—		—		—		—		(1,170)		—		(42)
Stock-based compensation expense	—		45		—		—		—		—		—
Shares issued for stock options	—		108		—		121		—		—		—
Shares issued for restricted stock units	—		(23)		—		23		—		—		—
Treasury stock acquired	—		—		—		(791)		—		—		—

Other	—		3		1		—		—		—		6
Balance, June 30, 2022	$	1,466	$	3,402	$	—	$	(24,736)	$	24,342	$	(4,306)	$	390


Six Months Ended June 30, 2021
	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, 2020	$	1,466	$	2,969	$	(1)	$	(23,045)	$	23,699	$	(4,345)	$	358
Net income	—		—		—		—		1,384		—		85
Other comprehensive income (loss), net of tax	—		—		—		—		—		(23)		(3)
Dividends ($1.34 per share)*	—		—		—		—		(1,137)		—		(42)
Stock-based compensation expense	—		58		—		—		—		—		—
Shares issued for stock options	—		67		—		80		—		—		—
Shares issued for restricted stock units	—		(12)		—		12		—		—		—
Treasury stock acquired	—		—		—		(713)		—		—		—


Other	—		3		1		1		—		—		—
Balance, June 30, 2021	$	1,466	$	3,085	$	—	$	(23,665)	$	23,946	$	(4,368)	$	398

(1) Accumulated other comprehensive income (loss) includes cumulative translation losses of $3,398 at June 30, 2022 ($3,207 at June 30, 2021) and $3,349 at December 31, 2021 ($3,158 at December 31, 2020), respectively, and unrecognized retirement plan and other retiree benefits costs of $1,015 at June 30, 2022 ($1,160 at June 30, 2021) and $1,044 at December 31, 2021 ($1,178 at December 31, 2020), respectively.

* Two dividends were declared in each of the first quarters of 2022 and 2021.

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, 2021, 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 2022, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.”

This ASU eliminates the accounting guidance for troubled debt restructurings by creditors while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors made to borrowers experiencing financial difficulty. The amendments also require disclosure of current-period gross write-offs by year of origination for financing receivables. This guidance is effective for the Company beginning on January 1, 2023 and is not expected to have a material impact on the Company’s Consolidated Financial Statements.

In March 2022, the FASB issued ASU No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging-Portfolio Layer Method.” This ASU clarifies the accounting and promotes consistency in reporting for hedges where the portfolio layer method is applied. This guidance is effective for the Company beginning on January 1, 2023 and is not expected to have an impact on the Company’s Consolidated Financial Statements.

In November 2021, the FASB issued ASU No. 2021-10, “Government Assistance (Topic 832).” This ASU requires increased disclosure on an annual basis about transactions with domestic, foreign, local, regional and national governments, including entities related to those governments and intergovernmental organizations, that are accounted for by applying a grant or contribution accounting model by analogy to other accounting guidance. This guidance was effective for the Company beginning on January 1, 2022 and did not have a material impact on the Company’s Consolidated Financial Statements.

In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This ASU requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606).” This guidance is effective for the Company beginning on January 1, 2023 and is not expected to have a material impact on the Company’s Consolidated Financial Statements.

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which 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. In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope,” which clarified that certain optional expedients and exceptions in Topic 848 apply to derivatives that are affected by the discounting transition due to reference rate reform. These ASUs were effective upon issuance and can be applied prospectively for contract modifications and hedging relationships through December 31, 2022. The guidance has not had and is not expected to 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. Restructuring and Related Implementation Charges

On January 27, 2022, the Company’s Board of Directors (the “Board”) approved a targeted productivity program (the “2022 Global Productivity Initiative”). The program is intended to reallocate resources towards the Company’s strategic priorities and faster growth businesses, drive efficiencies in the Company’s operations and streamline the Company’s supply chain to reduce structural costs.

Implementation of the 2022 Global Productivity Initiative, which is expected to be substantially completed by mid-year 2023, is estimated to result in cumulative pretax charges, once all phases are approved and implemented, in the range of $200 to $240 ($170 to $200 aftertax), which is currently estimated to be comprised of the following: employee-related costs, including severance, pension and other termination benefits (75%); asset-related costs, primarily accelerated depreciation and asset write-downs (15%); and other charges (10%), which include contract termination costs, consisting primarily of implementation-related charges resulting directly from exit activities and the implementation of new strategies. It is estimated that approximately 80% to 90% of the charges will result in cash expenditures.

It is expected that the cumulative pretax charges, once all projects are approved and implemented, will relate to initiatives undertaken in North America (5%), Latin America (10%), Europe (45%), Asia Pacific (5%), Africa/Eurasia (15%), Hill’s Pet Nutrition (5%) and Corporate (15%).

For the three months ended June 30, 2022, charges resulting from the 2022 Global Productivity Initiative, were $8 pretax ($5 aftertax).

For the six months ended June 30, 2022, charges resulting from the 2022 Global Productivity Initiative are reflected in the income statement as follows:


	Six Months Ended June 30,
		2022

Selling, general and administrative expenses		3
Other (income) expense, net		73
Non-service related postretirement costs		14
Total 2022 Global Productivity Initiative charges, pretax		$	90

Total 2022 Global Productivity Initiative charges, aftertax		$	70

Restructuring and related implementation charges in the preceding table are recorded in the Corporate segment as these initiatives are predominantly centrally directed and controlled and are not included in internal measures of segment operating performance. Total charges incurred for the 2022 Global Productivity Initiative relate to initiatives undertaken by the following reportable operating segments:


	Six Months Ended June 30,
	2022
North America	10	%
Latin America	17	%
Europe	16	%
Asia Pacific	10	%
Africa/Eurasia	11	%
Hill's Pet Nutrition	10	%
Corporate	26	%
Total	100	%

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

The following table summarizes the activity for the restructuring and related implementation charges discussed above and the related accruals:


	Six Months Ended June 30, 2022
	Employee-Related Costs		Incremental Depreciation		Asset Impairments		Other		Total
Balance at December 31, 2021	$	—	$	—	$	—	$	—	$	—
Charges	88		—		—		2		90
Cash Payments	(13)		—		—		(1)		(14)
Charges against assets	(14)		—		—		—		(14)
Foreign exchange	(1)		—		—		—		(1)
Balance at June 30, 2022	$	60	$	—	$	—	$	1	$	61

Employee-Related Costs primarily include severance and other termination benefits and are calculated based on long-standing benefit practices, written severance policies, local statutory requirements and, in certain cases, voluntary termination arrangements. Employee-Related Costs also include pension enhancements of $14 for the six months ended June 30, 2022, which are reflected as Charges against assets within Employee-Related Costs in the preceding tables as the corresponding balance sheet amounts are reflected as a reduction of pension assets or an increase in pension liabilities.

5. Inventories

Inventories by major class were as follows:


	June 30, 2022		December 31, 2021
Raw materials and supplies	$	559	$	505
Work-in-process	53		39
Finished goods	1,510		1,248
Total Inventories, net	$	2,122	$	1,792
Non-current inventory, net	$	(110)	$	(100)
Current Inventories, net	$	2,012	$	1,692

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

6. Earnings Per Share

For the three months ended June 30, 2022 and 2021, earnings per share were as follows:


	Three Months Ended
	June 30, 2022					June 30, 2021
	Net income attributable to Colgate-Palmolive Company		Shares (millions)	Per Share		Net income attributable to Colgate-Palmolive Company		Shares (millions)	Per Share
Basic EPS	$	603	836.8	$	0.72	$	703	845.6	$	0.83
Stock options and restricted stock units			2.6					3.8
Diluted EPS	$	603	839.4	$	0.72	$	703	849.4	$	0.83

For the three months ended June 30, 2022 and 2021, the average number of stock options and restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 3,835,115 and 1,634,728, respectively.

For the six months ended June 30, 2022 and 2021, earnings per share were as follows:


	Six Months Ended
	June 30, 2022					June 30, 2021
	Net income attributable to Colgate-Palmolive Company		Shares (millions)	Per Share		Net income attributable to Colgate-Palmolive Company		Shares (millions)	Per Share
Basic EPS	$	1,162	838.7	$	1.39	$	1,384	847.0	$	1.63
Stock options and restricted stock units			2.8					3.4
Diluted EPS	$	1,162	841.5	$	1.38	$	1,384	850.4	$	1.63

For the six months ended June 30, 2022 and 2021, the average number of stock options and restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 4,136,899 and 2,453,048, respectively.

Basic and diluted earnings per share are computed independently for each quarter and any year-to-date period presented. As a result of changes in the number of shares outstanding during the year and rounding, the sum of the quarters’ earnings per share may not necessarily equal the earnings per share for any year-to-date period.

COLGATE-PALMOLIVE COMPANY

Notes to Condensed Consolidated Financial Statements (continued)

(Dollars in Millions Except Share and Per Share Amounts)

(Unaudited)

7. Other Comprehensive Income (Loss)

Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the three months ended June 30, 2022 and 2021 were as follows:


	2022				2021
	Pretax		Net of Tax		Pretax		Net of Tax
Cumulative translation adjustments	$	(70)	$	(132)	$	71	$	106
Retirement plans and other retiree benefits:
Net actuarial gain (loss) and prior service costs arising during the period	—		—		(3)		(1)
Amortization of net actuarial loss, transition and prior service costs (1)	19		13		20		17
Retirement plans and other retiree benefits adjustments	19		13		17		16
Cash flow hedges:
Unrealized gains (losses) on cash flow hedges	83		66		(49)		(38)
Reclassification of (gains) losses into net earnings on cash flow hedges (2)	(6)		(5)		4		3
Gains (losses) on cash flow hedges	77		61		(45)		(35)
Total Other comprehensive income (loss)	$	26	$	(58)	$	43	$	87

(1) These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 8, Retirement Plans and Other Retiree Benefits for additional details.

(2) These (gains) losses are reclassified into Cost of sales. See Note 11, Fair Value Measurements and Financial Instruments for additional details.

There were no tax impacts on Other comprehensive income (loss) (“OCI”) attributable to Noncontrolling interests.

Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the six months ended June 30, 2022 and 2021 were as follows:


	2022				2021
	Pretax		Net of Tax		Pretax		Net of Tax
Cumulative translation adjustments	$	26	$	(50)	$	(28)	$	(49)
Retirement plans and other retiree benefits:
Net actuarial gain (loss) and prior service costs arising during the period	—		—		(22)		(