falsedesktopCL2020-09-30000002166520000026{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Title of each class\tTrading Symbol(s)\tName of each exchange on which registered\nCommon Stock $1.00 par value\tCL\tNew York Stock Exchange\n0.000% Notes due 2021\tCL21A\tNew York Stock Exchange\n0.500% Notes due 2026\tCL26\tNew York Stock Exchange\n1.375% Notes due 2034\tCL34\tNew York Stock Exchange\n0.875% Notes due 2039\tCL39\tNew York Stock Exchange\n", "q10k_tbl_1": "Large accelerated filer\t☒\tAccelerated filer\t☐\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_2": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nNet sales\t4153\t3928\t12147\t11678\nCost of sales\t1613\t1612\t4773\t4767\nGross profit\t2540\t2316\t7374\t6911\nSelling general and administrative expenses\t1518\t1429\t4386\t4163\nOther (income) expense net\t4\t31\t72\t125\nOperating profit\t1018\t856\t2916\t2623\nNon-service related postretirement costs\t15\t27\t56\t79\nInterest (income) expense net\t36\t35\t107\t113\nIncome before income taxes\t967\t794\t2753\t2431\nProvision for income taxes\t222\t167\t585\t586\nNet income including noncontrolling interests\t745\t627\t2168\t1845\nLess: Net income attributable to noncontrolling interests\t47\t49\t120\t121\nNet income attributable to Colgate-Palmolive Company\t698\t578\t2048\t1724\nEarnings per common share basic\t0.81\t0.67\t2.39\t2.00\nEarnings per common share diluted\t0.81\t0.67\t2.38\t2.00\n", "q10k_tbl_3": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nNet income including noncontrolling interests\t745\t627\t2168\t1845\nOther comprehensive income (loss) net of tax:\t\t\t\t\nCumulative translation adjustments\t57\t(111)\t(230)\t(60)\nRetirement plans and other retiree benefit adjustments\t54\t5\t84\t30\nGains (losses) on cash flow hedges\t1\t4\t(2)\t(3)\nTotal Other comprehensive income (loss) net of tax\t112\t(102)\t(148)\t(33)\nTotal Comprehensive income including noncontrolling interests\t857\t525\t2020\t1812\nLess: Net income attributable to noncontrolling interests\t47\t49\t120\t121\nLess: Cumulative translation adjustments attributable to noncontrolling interests\t12\t(6)\t(1)\t(6)\nTotal Comprehensive income attributable to noncontrolling interests\t59\t43\t119\t115\nTotal Comprehensive income attributable to Colgate-Palmolive Company\t798\t482\t1901\t1697\n", "q10k_tbl_4": "\tSeptember 30 2020\tDecember 31 2019\nAssets\t\t\nCurrent Assets\t\t\nCash and cash equivalents\t989\t883\nReceivables (net of allowances of $88 and $76 respectively)\t1292\t1440\nInventories\t1578\t1400\nOther current assets\t508\t456\nTotal current assets\t4367\t4179\nProperty plant and equipment:\t\t\nCost\t8380\t8580\nLess: Accumulated depreciation\t(4874)\t(4830)\n\t3506\t3750\nGoodwill\t3711\t3508\nOther intangible assets net\t2838\t2667\nDeferred income taxes\t208\t177\nOther assets\t836\t753\nTotal assets\t15466\t15034\nLiabilities and Shareholders' Equity\t\t\nCurrent Liabilities\t\t\nNotes and loans payable\t9\t260\nCurrent portion of long-term debt\t256\t254\nAccounts payable\t1225\t1237\nAccrued income taxes\t423\t370\nOther accruals\t2568\t1917\nTotal current liabilities\t4481\t4038\nLong-term debt\t6971\t7333\nDeferred income taxes\t406\t507\nOther liabilities\t2535\t2598\nTotal liabilities\t14393\t14476\nShareholders' Equity\t\t\nCommon stock\t1466\t1466\nAdditional paid-in capital\t2837\t2488\nRetained earnings\t23052\t22501\nAccumulated other comprehensive income (loss)\t(4421)\t(4273)\nUnearned compensation\t(1)\t(2)\nTreasury stock at cost\t(22280)\t(22063)\nTotal Colgate-Palmolive Company shareholders' equity\t653\t117\nNoncontrolling interests\t420\t441\nTotal equity\t1073\t558\nTotal liabilities and equity\t15466\t15034\n", "q10k_tbl_5": "\tNine Months Ended\t\n\tSeptember 30\t\n\t2020\t2019\nOperating Activities\t\t\nNet income including noncontrolling interests\t2168\t1845\nAdjustments to reconcile net income including noncontrolling interests to net cash provided by operations:\t\t\nDepreciation and amortization\t400\t386\nRestructuring and termination benefits net of cash\t(66)\t11\nStock-based compensation expense\t85\t83\nDeferred income taxes\t(124)\t79\nVoluntary benefit plan contributions\t0\t(113)\nCash effects of changes in:\t\t\nReceivables\t62\t(65)\nInventories\t(214)\t(69)\nAccounts payable and other accruals\t468\t(52)\nOther non-current assets and liabilities\t(23)\t58\nNet cash provided by (used in) operations\t2756\t2163\nInvesting Activities\t\t\nCapital expenditures\t(249)\t(226)\nPurchases of marketable securities and investments\t(109)\t(152)\nProceeds from sale of marketable securities and investments\t42\t14\nPayment for acquisitions net of cash acquired\t(352)\t(1711)\nNet cash provided by (used in) investing activities\t(668)\t(2075)\nFinancing Activities\t\t\nPrincipal payments on debt\t(3269)\t(4184)\nProceeds from issuance of debt\t2500\t6008\nDividends paid\t(1162)\t(1140)\nPurchases of treasury shares\t(578)\t(1024)\nProceeds from exercise of stock options\t640\t490\nPurchases of non-controlling interests in subsidiaries\t(99)\t0\nNet cash provided by (used in) financing activities\t(1968)\t150\nEffect of exchange rate changes on Cash and cash equivalents\t(14)\t(16)\nNet increase (decrease) in Cash and cash equivalents\t106\t222\nCash and cash equivalents at beginning of the period\t883\t726\nCash and cash equivalents at end of the period\t989\t948\nSupplemental Cash Flow Information\t\t\nIncome taxes paid\t606\t669\n", "q10k_tbl_6": "Three Months Ended September 30 2020\t\t\t\t\t\t\t\n\tColgate-Palmolive Company Shareholders' Equity\t\t\t\t\t\t\n\tCommon Stock\tAdditional Paid-in Capital\tUnearned Compensation\tTreasury Stock\tRetained Earnings\tAccumulated Other Comprehensive Income (Loss)(1)\tNoncontrolling Interests\nBalance June 30 2020\t1466\t2666\t(1)\t(22075)\t22731\t(4519)\t464\nNet income\t0\t0\t0\t0\t698\t0\t47\nOther comprehensive income (loss) net of tax\t0\t0\t0\t0\t0\t100\t12\nDividends ($0.44 per share)\t0\t0\t0\t0\t(379)\t0\t0\nStock-based compensation expense\t0\t53\t0\t0\t0\t0\t0\nShares issued for stock options\t0\t130\t0\t132\t0\t0\t0\nShares issued for restricted stock units\t0\t(13)\t0\t13\t0\t0\t0\nTreasury stock acquired\t0\t0\t0\t(350)\t0\t0\t0\nNoncontrolling interests acquired\t0\t0\t0\t0\t0\t0\t(99)\nOther\t0\t1\t0\t0\t2\t(2)\t(4)\nBalance September 30 2020\t1466\t2837\t(1)\t(22280)\t23052\t(4421)\t420\n", "q10k_tbl_7": "Three Months Ended September 30 2019\t\t\t\t\t\t\t\n\tColgate-Palmolive Company Shareholders' Equity\t\t\t\t\t\t\n\tCommon Stock\tAdditional Paid-in Capital\tUnearned Compensation\tTreasury Stock\tRetained Earnings\tAccumulated Other Comprehensive Income (Loss)(1)\tNoncontrolling Interests\nBalance June 30 2019\t1466\t2338\t(3)\t(21682)\t21653\t(4119)\t337\nNet income\t0\t0\t0\t0\t578\t0\t49\nOther comprehensive income (loss) net of tax\t0\t0\t0\t0\t0\t(96)\t(6)\nDividends ($0.43 per share)\t0\t0\t0\t0\t(370)\t0\t(2)\nStock-based compensation expense\t0\t49\t0\t0\t0\t0\t0\nShares issued for stock options\t0\t93\t0\t128\t0\t0\t0\nShares issued for restricted stock units\t0\t(14)\t0\t14\t0\t0\t0\nTreasury stock acquired\t0\t0\t0\t(360)\t0\t0\t0\nNoncontrolling interests assumed through acquisition\t0\t0\t0\t0\t0\t0\t120\nOther\t0\t0\t2\t0\t(1)\t0\t0\nBalance September 30 2019\t1466\t2466\t(1)\t(21900)\t21860\t(4215)\t498\n", "q10k_tbl_8": "Nine Months Ended September 30 2020\t\t\t\t\t\t\t\n\tColgate-Palmolive Company Shareholders' Equity\t\t\t\t\t\t\n\tCommon Stock\tAdditional Paid-in Capital\tUnearned Compensation\tTreasury Stock\tRetained Earnings\tAccumulated Other Comprehensive Income (Loss)(1)\tNoncontrolling Interests\nBalance December 31 2019\t1466\t2488\t(2)\t(22063)\t22501\t(4273)\t441\nNet income\t0\t0\t0\t0\t2048\t0\t120\nOther comprehensive income (loss) net of tax\t0\t0\t0\t0\t0\t(147)\t(1)\nDividends ($1.75 per share)*\t0\t0\t0\t0\t(1503)\t0\t(37)\nStock-based compensation expense\t0\t85\t0\t0\t0\t0\t0\nShares issued for stock options\t0\t290\t0\t329\t0\t0\t0\nShares issued for restricted stock units\t0\t(30)\t0\t30\t0\t0\t0\nTreasury stock acquired\t0\t0\t0\t(578)\t0\t0\t0\nNoncontrolling interests acquired\t0\t0\t0\t0\t0\t0\t(99)\nOther\t0\t4\t1\t2\t6\t(1)\t(4)\nBalance September 30 2020\t1466\t2837\t(1)\t(22280)\t23052\t(4421)\t420\n", "q10k_tbl_9": "Nine Months Ended September 30 2019\t\t\t\t\t\t\t\n\tColgate-Palmolive Company Shareholders' Equity\t\t\t\t\t\t\n\tCommon Stock\tAdditional Paid-in Capital\tUnearned Compensation\tTreasury Stock\tRetained Earnings\tAccumulated Other Comprehensive Income (Loss)(1)\tNoncontrolling Interests\nBalance December 31 2018\t1466\t2204\t(3)\t(21196)\t21615\t(4188)\t299\nNet income\t0\t0\t0\t0\t1724\t0\t121\nOther comprehensive income (loss) net of tax\t0\t0\t0\t0\t0\t(27)\t(6)\nDividends ($1.71 per share)*\t0\t0\t0\t0\t(1473)\t0\t(36)\nStock-based compensation expense\t0\t83\t0\t0\t0\t0\t0\nShares issued for stock options\t0\t207\t0\t290\t0\t0\t0\nShares issued for restricted stock units\t0\t(28)\t0\t28\t0\t0\t0\nTreasury stock acquired\t0\t0\t0\t(1024)\t0\t0\t0\nNoncontrolling interests assumed through acquisition\t0\t0\t0\t0\t0\t0\t120\nOther\t0\t0\t2\t2\t(6)\t0\t0\nBalance September 30 2019\t1466\t2466\t(1)\t(21900)\t21860\t(4215)\t498\n", "q10k_tbl_10": "Cash\t30\nReceivables\t53\nInventories\t70\nOther current assets\t18\nOther intangible assets\t1051\nGoodwill\t923\nOther current liabilities\t(67)\nDeferred income taxes\t(276)\nNoncontrolling interests\t(90)\nFair value of net assets acquired\t1712\n", "q10k_tbl_11": "\tThree Months Ended\tNine Months Ended\n\tSeptember 30 2019\tSeptember 30 2019\nCost of sales\t1\t9\nSelling general and administrative expenses\t28\t42\nOther (income) expense net\t(3)\t43\nNon-service related postretirement costs\t1\t4\nTotal Global Growth and Efficiency Program charges pretax\t27\t98\nTotal Global Growth and Efficiency Program charges aftertax\t22\t75\n", "q10k_tbl_12": "\tThree Months Ended September 30 2020\nBalance at June 30 2020\t64\nCharges (Benefits)\t(16)\nCash payments\t(15)\nCharges against assets\t0\nForeign exchange\t1\nOther\t0\nBalance at September 30 2020\t34\n", "q10k_tbl_13": "\tNine Months Ended September 30 2020\nBalance at December 31 2019\t100\nCharges (Benefits)\t(16)\nCash payments\t(50)\nCharges against assets\t0\nForeign exchange\t0\nOther\t0\nBalance at September 30 2020\t34\n", "q10k_tbl_14": "\tSeptember 30 2020\tDecember 31 2019\nRaw materials and supplies\t390\t305\nWork-in-process\t48\t49\nFinished goods\t1190\t1056\nTotal Inventories net\t1628\t1410\nNon-current inventory net\t(50)\t(10)\nCurrent Inventories net\t1578\t1400\n", "q10k_tbl_15": "\tThree Months Ended\t\t\t\t\t\n\tSeptember 30 2020\t\t\tSeptember 30 2019\t\t\n\tNet income attributable to Colgate-Palmolive Company\tShares (millions)\tPer Share\tNet income attributable to Colgate-Palmolive Company\tShares (millions)\tPer Share\nBasic EPS\t698\t859.0\t0.81\t578\t858.7\t0.67\nStock options and restricted stock units\t\t2.8\t\t\t2.5\t\nDiluted EPS\t698\t861.8\t0.81\t578\t861.2\t0.67\n", "q10k_tbl_16": "\tNine Months Ended\t\t\t\t\t\n\tSeptember 30 2020\t\t\tSeptember 30 2019\t\t\n\tNet income attributable to Colgate-Palmolive Company\tShares (millions)\tPer Share\tNet income attributable to Colgate-Palmolive Company\tShares (millions)\tPer Share\nBasic EPS\t2048\t857.7\t2.39\t1724\t860.1\t2.00\nStock options and restricted stock units\t\t1.8\t\t\t2.3\t\nDiluted EPS\t2048\t859.5\t2.38\t1724\t862.4\t2.00\n", "q10k_tbl_17": "\t2020\t\t2019\t\n\tPretax\tNet of Tax\tPretax\tNet of Tax\nCumulative translation adjustments\t5\t45\t(83)\t(105)\nRetirement plans and other retiree benefits:\t\t\t\t\nNet actuarial gain (loss) and prior service costs arising during the period\t53\t41\t(14)\t(10)\nAmortization of net actuarial loss transition and prior service costs (1)\t15\t13\t19\t15\nRetirement plans and other retiree benefits adjustments\t68\t54\t5\t5\nCash flow hedges:\t\t\t\t\nUnrealized gains (losses) on cash flow hedges\t(1)\t(1)\t6\t5\nReclassification of (gains) losses into net earnings on cash flow hedges (2)\t2\t2\t(1)\t(1)\nGains (losses) on cash flow hedges\t1\t1\t5\t4\nTotal Other comprehensive income (loss)\t74\t100\t(73)\t(96)\n", "q10k_tbl_18": "\t2020\t\t2019\t\n\tPretax\tNet of Tax\tPretax\tNet of Tax\nCumulative translation adjustments\t(288)\t(229)\t(33)\t(54)\nRetirement plans and other retiree benefits:\t\t\t\t\nNet actuarial gain (loss) and prior service costs arising during the period\t55\t42\t(15)\t(11)\nAmortization of net actuarial loss transition and prior service costs (1)\t55\t42\t54\t41\nRetirement plans and other retiree benefits adjustments\t110\t84\t39\t30\nCash flow hedges:\t\t\t\t\nUnrealized gains (losses) on cash flow hedges\t2\t1\t3\t2\nReclassification of (gains) losses into net earnings on cash flow hedges (2)\t(4)\t(3)\t(6)\t(5)\nGains (losses) on cash flow hedges\t(2)\t(2)\t(3)\t(3)\nTotal Other comprehensive income (loss)\t(180)\t(147)\t3\t(27)\n", "q10k_tbl_19": "\tThree Months Ended September 30 2020\t\t\t\t\t\n\tPension Benefits\t\t\t\tOther Retiree Benefits\t\n\tUnited States\t\tInternational\t\t\t\n\t2020\t2019\t2020\t2019\t2020\t2019\nService cost\t0\t1\t4\t3\t3\t4\nInterest cost\t20\t22\t5\t6\t10\t15\nExpected return on plan assets\t(29)\t(29)\t(6)\t(4)\t0\t(2)\nAmortization of actuarial loss (gain)\t10\t14\t2\t1\t3\t4\nNet periodic benefit cost\t1\t8\t5\t6\t16\t21\n", "q10k_tbl_20": "\tNine Months Ended September 30 2020\t\t\t\t\t\n\tPension Benefits\t\t\t\tOther Retiree Benefits\t\n\tUnited States\t\tInternational\t\t\t\n\t2020\t2019\t2020\t2019\t2020\t2019\nService cost\t0\t1\t11\t10\t14\t11\nInterest cost\t57\t68\t14\t16\t29\t35\nExpected return on plan assets\t(83)\t(78)\t(15)\t(13)\t(1)\t(3)\nAmortization of actuarial loss (gain)\t34\t39\t7\t6\t14\t9\nNet periodic benefit cost\t8\t30\t17\t19\t56\t52\n", "q10k_tbl_21": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nNet sales\t\t\t\t\nOral Personal and Home Care\t\t\t\t\nNorth America\t923\t869\t2801\t2568\nLatin America\t837\t881\t2531\t2700\nEurope\t712\t607\t2004\t1798\nAsia Pacific\t722\t690\t1980\t2035\nAfrica/Eurasia\t255\t248\t736\t732\nTotal Oral Personal and Home Care\t3449\t3295\t10052\t9833\nPet Nutrition\t704\t633\t2095\t1845\nTotal Net sales\t4153\t3928\t12147\t11678\n", "q10k_tbl_22": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nNet sales\t\t\t\t\nOral Care\t44%\t46%\t43%\t46%\nPersonal Care\t21%\t20%\t21%\t20%\nHome Care\t18%\t18%\t19%\t18%\nPet Nutrition\t17%\t16%\t17%\t16%\nTotal Net sales\t100%\t100%\t100%\t100%\n", "q10k_tbl_23": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nOperating profit\t\t\t\t\nOral Personal and Home Care\t\t\t\t\nNorth America\t242\t248\t753\t750\nLatin America\t250\t235\t728\t718\nEurope\t169\t153\t482\t452\nAsia Pacific\t222\t193\t559\t557\nAfrica/Eurasia\t61\t48\t174\t141\nTotal Oral Personal and Home Care\t944\t877\t2696\t2618\nPet Nutrition\t196\t169\t588\t501\nCorporate\t(122)\t(190)\t(368)\t(496)\nTotal Operating profit\t1018\t856\t2916\t2623\n", "q10k_tbl_24": "\tAssets\t\t\tLiabilities\t\t\n\tAccount\tFair Value\t\tAccount\tFair Value\t\nDesignated derivative instruments\t\tSeptember 30 2020\tDecember 31 2019\t\tSeptember 30 2020\tDecember 31 2019\nInterest rate swap contracts\tOther current assets\t0\t0\tOther accruals\t0\t0\nInterest rate swap contracts\tOther assets\t15\t4\tOther liabilities\t0\t0\nForward-starting interest rate swaps\tOther current assets\t0\t0\tOther accruals\t0\t0\nForward-starting interest rate swaps\tOther assets\t0\t0\tOther liabilities\t4\t0\nForeign currency contracts\tOther current assets\t14\t6\tOther accruals\t28\t15\nForeign currency contracts\tOther assets\t0\t0\tOther liabilities\t29\t14\nCommodity contracts\tOther current assets\t1\t0\tOther accruals\t0\t0\nTotal designated\t\t30\t10\t\t61\t29\nOther financial instruments\t\t\t\t\t\t\nMarketable securities\tOther current assets\t80\t23\t\t\t\nTotal other financial instruments\t\t80\t23\t\t\t\n", "q10k_tbl_25": "\tSeptember 30 2020\tDecember 31 2019\nLong-term debt:\t\t\nCarrying amount of hedged item\t414\t403\nCumulative hedging adjustment included in the carrying amount\t15\t4\n", "q10k_tbl_26": "\tSeptember 30 2020\t\t\t\t\t\n\tForeign Currency Contracts\tForeign Currency Debt\tInterest Rate Swaps\tForward-Starting Interest Rate Swaps\tCommodity Contracts\tTotal\nFair Value Hedges\t586\t0\t400\t0\t0\t986\nCash Flow Hedges\t797\t0\t0\t300\t16\t1113\nNet Investment Hedges\t585\t3487\t0\t0\t0\t4072\n", "q10k_tbl_27": "\tDecember 31 2019\t\t\t\t\t\n\tForeign Currency Contracts\tForeign Currency Debt\tInterest Rate Swaps\tForward-Starting Interest Rate Swaps\tCommodity Contracts\tTotal\nFair Value Hedges\t388\t0\t400\t0\t0\t788\nCash Flow Hedges\t761\t0\t0\t0\t20\t781\nNet Investment Hedges\t478\t3856\t0\t0\t0\t4334\n", "q10k_tbl_28": "\tThree Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n\tCost of sales\tSelling general and administrative expenses\tInterest (income) expense net\tCost of sales\tSelling general and administrative expenses\tInterest (income) expense net\nGain (loss) on hedges recognized in income:\t\t\t\t\t\t\nInterest rate swaps designated as fair value hedges:\t\t\t\t\t\t\nDerivative instrument\t0\t0\t2\t0\t0\t(2)\nHedged items\t0\t0\t(2)\t0\t0\t2\nForeign currency contracts designated as fair value hedges:\t\t\t\t\t\t\nDerivative instrument\t0\t(10)\t0\t0\t0\t0\nHedged items\t0\t10\t0\t0\t0\t0\nForeign currency contracts designated as cash flow hedges:\t\t\t\t\t\t\nAmount reclassified from OCI\t(1)\t0\t0\t1\t0\t0\nCommodity contracts designated as cash flow hedges:\t\t\t\t\t\t\nAmount reclassified from OCI\t(1)\t0\t0\t0\t0\t0\nTotal gain (loss) on hedges recognized in income\t(2)\t0\t0\t1\t0\t0\n", "q10k_tbl_29": "\tNine Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n\tCost of sales\tSelling general and administrative expenses\tInterest (income) expense net\tCost of sales\tSelling general and administrative expenses\tInterest (income) expense net\nGain (loss) on hedges recognized in income:\t\t\t\t\t\t\nInterest rate swaps designated as fair value hedges:\t\t\t\t\t\t\nDerivative instrument\t0\t0\t(11)\t0\t0\t(15)\nHedged items\t0\t0\t11\t0\t0\t15\nForeign currency contracts designated as fair value hedges:\t\t\t\t\t\t\nDerivative instrument\t0\t29\t0\t0\t10\t0\nHedged items\t0\t(29)\t0\t0\t(10)\t0\nForeign currency contracts designated as cash flow hedges:\t\t\t\t\t\t\nAmount reclassified from OCI\t6\t0\t0\t5\t0\t0\nCommodity contracts designated as cash flow hedges:\t\t\t\t\t\t\nAmount reclassified from OCI\t(2)\t0\t0\t1\t0\t0\nTotal gain (loss) on hedges recognized in income\t4\t0\t0\t6\t0\t0\n", "q10k_tbl_30": "\tThree Months Ended\t\t\nSeptember 30\t\t\n2020\t\t2019\nForeign currency contracts designated as cash flow hedges:\t\t\t\nGain (loss) recognized in OCI\t(7)\t\t7\nForward-starting interest rate swaps designated as cash flow hedges:\t\t\t\nGain (loss) recognized in OCI\t4\t\t0\nCommodity contracts designated as cash flow hedges:\t\t\t\nGain (loss) recognized in OCI\t2\t\t(1)\nForeign currency contracts designated as net investment hedges:\t\t\t\nGain (loss) on instruments\t(21)\t\t23\nGain (loss) on hedged items\t21\t\t(23)\nForeign currency debt designated as net investment hedges:\t\t\t\nGain (loss) on instruments\t(171)\t\t100\nGain (loss) on hedged items\t171\t\t(100)\nTotal unrealized gain (loss) on hedges recognized in OCI\t(1)\t\t6\n", "q10k_tbl_31": "\tNine Months Ended\t\t\nSeptember 30\t\t\n2020\t\t2019\nForeign currency contracts designated as cash flow hedges:\t\t\t\nGain (loss) recognized in OCI\t6\t\t2\nForward-starting interest rate swaps designated as cash flow hedges:\t\t\t\nGain (loss) recognized in OCI\t(4)\t\t0\nCommodity contracts designated as cash flow hedges:\t\t\t\nGain (loss) recognized in OCI\t0\t\t1\nForeign currency contracts designated as net investment hedges:\t\t\t\nGain (loss) on instruments\t(8)\t\t22\nGain (loss) on hedged items\t8\t\t(22)\nForeign currency debt designated as net investment hedges:\t\t\t\nGain (loss) on instruments\t(174)\t\t105\nGain (loss) on hedged items\t174\t\t(105)\nTotal unrealized gain (loss) on hedges recognized in OCI\t2\t\t3\n", "q10k_tbl_32": "\tThree Months Ended September 30\t\n\t2020\t2019\nGross profit GAAP\t2540\t2316\nGlobal Growth and Efficiency Program\t0\t1\nGross profit non-GAAP\t2540\t2317\n", "q10k_tbl_33": "\tThree Months Ended September 30\t\t\n\t2020\t2019\tBasis Point Change\nGross profit margin GAAP\t61.2%\t59.0%\t220\nGlobal Growth and Efficiency Program\t0\t0\t\nGross profit margin non-GAAP\t61.2%\t59.0%\t220\n", "q10k_tbl_34": "\tThree Months Ended September 30\t\n\t2020\t2019\nSelling general and administrative expenses GAAP\t1518\t1429\nGlobal Growth and Efficiency Program\t3\t(28)\nSelling general and administrative expenses non-GAAP\t1521\t1401\n", "q10k_tbl_35": "\tThree Months Ended September 30\t\t\n\t2020\t2019\tBasis Point Change\nSelling general and administrative expenses as a percentage of Net sales GAAP\t36.6%\t36.4%\t20\nGlobal Growth and Efficiency Program\t0\t(0.7)\t\nSelling general and administrative expenses as a percentage of Net sales non-GAAP\t36.6%\t35.7%\t90\n", "q10k_tbl_36": "\tThree Months Ended September 30\t\t\n\t2020\t2019\t% Change\nOperating profit GAAP\t1018\t856\t19%\nGlobal Growth and Efficiency Program\t(16)\t26\t0\nAcquisition-related costs\t0\t18\t0\nOperating profit non-GAAP\t1002\t900\t11%\n", "q10k_tbl_37": "\tThree Months Ended September 30\t\t\n\t2020\t2019\tBasis Point Change\nOperating profit margin GAAP\t24.5%\t21.8%\t270\nGlobal Growth and Efficiency Program\t(0.4)\t0.7\t0\nAcquisition-related costs\t0\t0.4\t0\nOperating profit margin non-GAAP\t24.1%\t22.9%\t120\n", "q10k_tbl_38": "\tThree Months Ended September 30 2020\t\t\t\n\tIncome Before Income Taxes\tProvision For Income Taxes(1)\tNet Income Including Noncontrolling Interests\tNet Income Attributable To Colgate-Palmolive Company\t\t\t\tDiluted Earnings Per Share(2)\t\t\nAs Reported GAAP\t967\t222\t745\t698\t\t\t\t0.81\t\t\nGlobal Growth and Efficiency Program\t(16)\t(3)\t(13)\t(13)\t\t\t\t(0.02)\t\t\nNon-GAAP\t951\t219\t732\t685\t\t\t\t0.79\t\t\n", "q10k_tbl_39": "\tThree Months Ended September 30 2019\t\t\t\n\tIncome Before Income Taxes\tProvision For Income Taxes(1)\tNet Income Including Noncontrolling Interests\tNet Income Attributable To Colgate-Palmolive Company\t\t\t\tDiluted Earnings Per Share(2)\t\t\nAs Reported GAAP\t794\t167\t627\t578\t\t\t\t0.67\t\t\nGlobal Growth and Efficiency Program\t27\t5\t22\t22\t\t\t\t0.03\t\t\nAcquisition-related costs\t18\t4\t14\t14\t\t\t\t0.01\t\t\nNon-GAAP\t839\t176\t663\t614\t\t\t\t0.71\t\t\n", "q10k_tbl_40": "\tThree Months Ended September 30\t\t\t\n\t2020\t2019\tChange\t\nNet sales\t923\t869\t6.5\t%\nOperating profit\t242\t248\t(2)\t%\n% of Net sales\t26.2%\t28.5%\t(230)\tbps\n", "q10k_tbl_41": "\tThree Months Ended September 30\t\t\t\n\t2020\t2019\tChange\t\nNet sales\t837\t881\t(5.0)\t%\nOperating profit\t250\t235\t6\t%\n% of Net sales\t29.9%\t26.7%\t320\tbps\n", "q10k_tbl_42": "\tThree Months Ended September 30\t\t\t\n\t2020\t2019\tChange\t\nNet sales\t712\t607\t17.0\t%\nOperating profit\t169\t153\t10\t%\n% of Net sales\t23.7%\t25.2%\t(150)\tbps\n", "q10k_tbl_43": "\tThree Months Ended September 30\t\t\t\n\t2020\t2019\tChange\t\nNet sales\t722\t690\t4.5\t%\nOperating profit\t222\t193\t15\t%\n% of Net sales\t30.7%\t28.0%\t270\tbps\n", "q10k_tbl_44": "\tThree Months Ended September 30\t\t\t\n\t2020\t2019\tChange\t\nNet sales\t255\t248\t2.5\t%\nOperating profit\t61\t48\t27\t%\n% of Net sales\t23.9%\t19.4%\t450\tbps\n", "q10k_tbl_45": "\tThree Months Ended September 30\t\t\t\n\t2020\t2019\tChange\t\nNet sales\t704\t633\t11.0\t%\nOperating profit\t196\t169\t16\t%\n% of Net sales\t27.8%\t26.7%\t110\tbps\n", "q10k_tbl_46": "\tNine Months Ended September 30\t\n\t2020\t2019\nNet sales\t\t\nOral Personal and Home Care\t\t\nNorth America\t2801\t2568\nLatin America\t2531\t2700\nEurope\t2004\t1798\nAsia Pacific\t1980\t2035\nAfrica/Eurasia\t736\t732\nTotal Oral Personal and Home Care\t10052\t9833\nPet Nutrition\t2095\t1845\nTotal Net sales\t12147\t11678\nOperating profit\t\t\nOral Personal and Home Care\t\t\nNorth America\t753\t750\nLatin America\t728\t718\nEurope\t482\t452\nAsia Pacific\t559\t557\nAfrica/Eurasia\t174\t141\nTotal Oral Personal and Home Care\t2696\t2618\nPet Nutrition\t588\t501\nCorporate\t(368)\t(496)\nTotal Operating profit\t2916\t2623\n", "q10k_tbl_47": "\tNine Months Ended September 30\t\n\t2020\t2019\nGross profit GAAP\t7374\t6911\nAcquisition-related costs\t4\t0\nGlobal Growth and Efficiency Program\t0\t9\nGross profit non-GAAP\t7378\t6920\n", "q10k_tbl_48": "\tNine Months Ended September 30\t\t\n\t2020\t2019\tBasis Point Change\nGross profit margin GAAP\t60.7%\t59.2%\t150\nAcquisition-related costs\t0\t0\t\nGlobal Growth and Efficiency Program\t0\t0.1\t\nGross profit margin non-GAAP\t60.7%\t59.3%\t140\n", "q10k_tbl_49": "\tNine Months Ended September 30\t\n\t2020\t2019\nSelling general and administrative expenses GAAP\t4386\t4163\nGlobal Growth and Efficiency Program\t3\t(42)\nSelling general and administrative expenses non-GAAP\t4389\t4121\n", "q10k_tbl_50": "\tNine Months Ended September 30\t\t\n\t2020\t2019\tBasis Point Change\nSelling general and administrative expenses as a percentage of Net sales GAAP\t36.1%\t35.6%\t50\nGlobal Growth and Efficiency Program\t0\t(0.3)\t\nSelling general and administrative expenses as a percentage of Net sales non-GAAP\t36.1%\t35.3%\t80\n", "q10k_tbl_51": "\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\nOperating profit GAAP\t2916\t2623\t11%\nGlobal Growth and Efficiency Program\t(16)\t94\t\nAcquisition-related costs\t6\t18\t\nOperating profit non-GAAP\t2906\t2735\t6%\n", "q10k_tbl_52": "\tNine Months Ended September 30\t\t\n\t2020\t2019\tBasis Point Change\nOperating profit margin GAAP\t24.0%\t22.5%\t150\nGlobal Growth and Efficiency Program\t(0.1)\t0.8\t\nAcquisition-related costs\t0\t0.1\t\nOperating profit margin non-GAAP\t23.9%\t23.4%\t50\n", "q10k_tbl_53": "\tThree Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n\tIncome Before Income Taxes\tProvision For Income Taxes(1)\tEffective Income Tax Rate(2)\tIncome Before Income Taxes\tProvision For Income Taxes(1)\tEffective Income Tax Rate(2)\nAs Reported GAAP\t967\t222\t23.0%\t794\t167\t21.0%\nGlobal Growth and Efficiency Program\t(16)\t(3)\t0\t27\t5\t(0.1)\nAcquisition-related costs\t0\t0\t0\t18\t4\t0.1%\nNon-GAAP\t951\t219\t23.0%\t839\t176\t21.0%\n", "q10k_tbl_54": "\tNine Months Ended September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\n\tIncome Before Income Taxes\tProvision For Income Taxes(1)\tEffective Income Tax Rate(2)\tIncome Before Income Taxes\tProvision For Income Taxes(1)\tEffective Income Tax Rate(2)\nAs Reported GAAP\t2753\t585\t21.2%\t2431\t586\t24.1%\nGlobal Growth and Efficiency Program\t(16)\t(3)\t0\t98\t23\t0\nSubsidiary and operating structure initiatives\t0\t71\t2.7\t0\t0\t0\nAcquisition-related costs\t6\t2\t0\t18\t4\t0\nNon-GAAP\t2743\t655\t23.9%\t2547\t613\t24.1%\n", "q10k_tbl_55": "\tNine Months Ended September 30 2020\t\t\t\n\tIncome Before Income Taxes\tProvision For Income Taxes(1)\tNet Income Including Noncontrolling Interests\tNet Income Attributable To Colgate-Palmolive Company\t\t\t\tDiluted Earnings Per Share(2)\t\t\nAs Reported GAAP\t2753\t585\t2168\t2048\t\t\t\t2.38\t\t\nGlobal Growth and Efficiency Program\t(16)\t(3)\t(13)\t(13)\t\t\t\t(0.02)\t\t\nSubsidiary and operating structure initiatives\t0\t71\t(71)\t(71)\t\t\t\t(0.08)\t\t\nAcquisition-related costs\t6\t2\t4\t4\t\t\t\t0.01\t\t\nNon-GAAP\t2743\t655\t2088\t1968\t\t\t\t2.29\t\t\n", "q10k_tbl_56": "\tNine Months Ended September 30 2019\t\t\t\n\tIncome Before Income Taxes\tProvision For Income Taxes(1)\tNet Income Including Noncontrolling Interests\tNet Income Attributable To Colgate-Palmolive Company\t\t\t\tDiluted Earnings Per Share(2)\t\t\nAs Reported GAAP\t2431\t586\t1845\t1724\t\t\t\t2.00\t\t\nGlobal Growth and Efficiency Program\t98\t23\t75\t75\t\t\t\t0.09\t\t\nAcquisition-related costs\t18\t4\t14\t14\t\t\t\t0.01\t\t\nNon-GAAP\t2547\t613\t1934\t1813\t\t\t\t2.10\t\t\n", "q10k_tbl_57": "Three Months Ended September 30 2020\tNet Sales Growth (GAAP)\tForeign Exchange Impact\tAcquisitions and Divestments Impact\tOrganic Sales Growth (Non-GAAP)\nOral Personal and Home Care\t\t\t\t\nNorth America\t6.5%\t-%\t1.5%\t5.0%\nLatin America\t(5.0)%\t(16.5)%\t-%\t11.5%\nEurope\t17.0%\t4.5%\t9.5%\t3.0%\nAsia Pacific\t4.5%\t-%\t-%\t4.5%\nAfrica/Eurasia\t2.5%\t(10.5)%\t1.0%\t12.0%\nTotal Oral Personal and Home Care\t4.5%\t(4.5)%\t2.5%\t6.5%\nPet Nutrition\t11.0%\t-%\t-%\t11.0%\nTotal Company\t5.5%\t(4.0)%\t2.0%\t7.5%\n", "q10k_tbl_58": "Nine Months Ended September 30 2020\tNet Sales Growth (GAAP)\tForeign Exchange Impact\tAcquisitions and Divestments Impact\tOrganic Sales Growth (Non-GAAP)\nOral Personal and Home Care\t\t\t\t\nNorth America\t9.0%\t(0.5)%\t1.5%\t8.0%\nLatin America\t(6.0)%\t(14.5)%\t-%\t8.5%\nEurope\t11.5%\t-%\t9.0%\t2.5%\nAsia Pacific\t(2.5)%\t(1.5)%\t-%\t(1.0)%\nAfrica/Eurasia\t0.5%\t(8.5)%\t1.5%\t7.5%\nTotal Oral Personal and Home Care\t2.0%\t(5.5)%\t2.0%\t5.5%\nPet Nutrition\t13.5%\t(1.0)%\t-%\t14.5%\nTotal Company\t4.0%\t(4.5)%\t2.0%\t6.5%\n", "q10k_tbl_59": "Month\tTotal Number of Shares Purchased(1)\tAverage Price Paid per Share\tTotal Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)\tApproximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs(3) (in millions)\nJuly 1 through 31 2020\t27155\t73.68\t0\t3074\nAugust 1 through 31 2020\t1822418\t77.56\t1795000\t2934\nSeptember 1 through 30 2020\t2968503\t76.78\t2888380\t2713\nTotal\t4818076\t77.06\t4683380\t\n", "q10k_tbl_60": "Exhibit No.\tDescription\n10-A\t364-day Credit Agreement dated as of August 21 2020 among Colgate-Palmolive Company as Borrower Citibank N.A. as Administrative Agent and Arranger and the Lenders party thereto.*\n31-A\tCertificate of the Chairman of the Board President and Chief Executive Officer of Colgate-Palmolive Company pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.*\n31-B\tCertificate of the Chief Financial Officer of Colgate-Palmolive Company pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.*\n32\tCertificate of the Chairman of the Board President and Chief Executive Officer and the Chief Financial Officer of Colgate-Palmolive Company pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. § 1350.**\n101\tThe following materials from Colgate-Palmolive Company's Quarterly Report on Form 10-Q for the period ended September 30 2020 formatted in Inline eXtensible Business Reporting Language (Inline XBRL): (i) the Condensed Consolidated Statements of Income; (ii) the Condensed Consolidated Statements of Comprehensive Income; (iii) the Condensed Consolidated Balance Sheets; (iv) the Condensed Consolidated Statements of Cash Flows; (v) Condensed Consolidated Statements of Changes in Shareholders' Equity and (vi) Notes to Condensed Consolidated Financial Statements.\n104\tCover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).*\n"}{"bs": "q10k_tbl_4", "is": "q10k_tbl_2", "cf": "q10k_tbl_5"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
OR
☐
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
CL
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.
2
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.
3
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.
4
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.
5
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.
6
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.
7
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.
8
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.
9
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.
10
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.
11
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