Colgate Palmolive Earnings 2020-06-30

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

cl-20200630

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, 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

857,400,188

June 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						Six Months Ended
	June 30,						June 30,
	2020		2019		2020		2019
Net sales	$	3,897	$	3,866	$	7,994	$	7,750
Cost of sales	1,528		1,558		3,160		3,155
Gross profit	2,369		2,308		4,834		4,595
Selling, general and administrative expenses	1,395		1,369		2,868		2,734
Other (income) expense, net	28		51		68		94
Operating profit	946		888		1,898		1,767
Non-service related postretirement costs	20		27		41		52
Interest (income) expense, net	35		38		71		78
Income before income taxes	891		823		1,786		1,637
Provision for income taxes	216		205		363		419
Net income including noncontrolling interests	675		618		1,423		1,218
Less: Net income attributable to noncontrolling interests	40		32		73		72
Net income attributable to Colgate-Palmolive Company	$	635	$	586	$	1,350	$	1,146

Earnings per common share, basic	$	0.74	$	0.68	$	1.58	$	1.33

Earnings per common share, diluted	$	0.74	$	0.68	$	1.57	$	1.33

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,
	2020		2019		2020		2019
Net income including noncontrolling interests	$	675	$	618	$	1,423	$	1,218
Other comprehensive income (loss), net of tax:
Cumulative translation adjustments	68		25		(287)		51
Retirement plans and other retiree benefit adjustments	14		13		30		25
Gains (losses) on cash flow hedges	(21)		(2)		(3)		(7)
Total Other comprehensive income (loss), net of tax	61		36		(260)		69
Total Comprehensive income including noncontrolling interests	736		654		1,163		1,287
Less: Net income attributable to noncontrolling interests	40		32		73		72
Less: Cumulative translation adjustments attributable to noncontrolling interests	3		(5)		(13)		—
Total Comprehensive income attributable to noncontrolling interests	43		27		60		72
Total Comprehensive income attributable to Colgate-Palmolive Company	$	693	$	627	$	1,103	$	1,215

See Notes to Condensed Consolidated Financial Statements.

COLGATE-PALMOLIVE COMPANY

Condensed Consolidated Balance Sheets

(Dollars in Millions)

(Unaudited)


	June 30, 2020		December 31, 2019
Assets
Current Assets
Cash and cash equivalents	$	997	$	883
Receivables (net of allowances of $85 and $76, respectively)	1,231		1,440
Inventories	1,524		1,400
Other current assets	460		456
Total current assets	4,212		4,179
Property, plant and equipment:
Cost	8,197		8,580
Less: Accumulated depreciation	(4,714)		(4,830)
	3,483		3,750
Goodwill	3,628		3,508
Other intangible assets, net	2,787		2,667
Deferred income taxes	224		177
Other assets	807		753
Total assets	$	15,141	$	15,034
Liabilities and Shareholders’ Equity
Current Liabilities
Notes and loans payable	$	253	$	260
Current portion of long-term debt	255		254
Accounts payable	1,189		1,237
Accrued income taxes	500		370
Other accruals	2,383		1,917
Total current liabilities	4,580		4,038
Long-term debt	6,884		7,333
Deferred income taxes	400		507
Other liabilities	2,545		2,598
Total liabilities	14,409		14,476
Shareholders’ Equity
Common stock	1,466		1,466
Additional paid-in capital	2,666		2,488
Retained earnings	22,731		22,501
Accumulated other comprehensive income (loss)	(4,519)		(4,273)
Unearned compensation	(1)		(2)
Treasury stock, at cost	(22,075)		(22,063)
Total Colgate-Palmolive Company shareholders’ equity	268		117
Noncontrolling interests	464		441
Total equity	732		558
Total liabilities and equity	$	15,141	$	15,034

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,
	2020		2019
Operating Activities
Net income including noncontrolling interests	$	1,423	$	1,218
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations:
Depreciation and amortization	266		256
Restructuring and termination benefits, net of cash	(35)		21
Stock-based compensation expense	32		34
Deferred income taxes	(147)		53
Voluntary benefit plan contributions	—		(102)
Cash effects of changes in:
Receivables	121		(178)
Inventories	(176)		(63)
Accounts payable and other accruals	347		(14)
Other non-current assets and liabilities	(37)		24
Net cash provided by operations	1,794		1,249
Investing Activities
Capital expenditures	(159)		(146)
Purchases of marketable securities and investments	(48)		(80)
Proceeds from sale of marketable securities and investments	42		14
Payment for acquisitions, net of cash acquired	(352)		—
Net cash used in investing activities	(517)		(212)
Financing Activities
Principal payments on debt	(2,102)		(3,105)
Proceeds from issuance of debt	1,620		3,368
Dividends paid	(784)		(770)
Purchases of treasury shares	(228)		(664)
Proceeds from exercise of stock options	353		267
Net cash provided by (used in) financing activities	(1,141)		(904)
Effect of exchange rate changes on Cash and cash equivalents	(22)		4
Net increase (decrease) in Cash and cash equivalents	114		137
Cash and cash equivalents at beginning of the period	883		726
Cash and cash equivalents at end of the period	$	997	$	863
Supplemental Cash Flow Information
Income taxes paid	$	349	$	463

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, 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, March 31, 2020	$	1,466	$	2,623	$	(1)	$	(22,104)	$	22,481	$	(4,578)	$	454
Net income									635				40
Other comprehensive income (loss), net of tax											58		3
Dividends ($0.44 per share)									(386)				(33)
Stock-based compensation expense			16
Shares issued for stock options			27				33
Shares issued for restricted stock units			(2)				2
Treasury stock acquired							(8)
Other			2				2		1		1
Balance, June 30, 2020	$	1,466	$	2,666	$	(1)	$	(22,075)	$	22,731	$	(4,519)	$	464


Three Months Ended June 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, March 31, 2019	$	1,466	$	2,241	$	(3)	$	(21,532)	$	21,436	$	(4,160)	$	342
Net income									586				32
Other comprehensive income (loss), net of tax											41		(5)
Dividends ($0.43 per share)									(369)				(32)
Stock-based compensation expense			17
Shares issued for stock options			81				113
Shares issued for restricted stock units			(1)				1
Treasury stock acquired							(265)
Other							1
Balance, June 30, 2019	$	1,466	$	2,338	$	(3)	$	(21,682)	$	21,653	$	(4,119)	$	337

⁽¹⁾Accumulated other comprehensive income (loss) includes cumulative translation losses of $3,402 at June 30, 2020 ($3,104 at June 30, 2019) and $3,467 at March 31, 2020 ($3,134 at March 31, 2019), respectively, and unrecognized retirement plan and other retiree benefits costs of $1,108 at June 30, 2020 ($1,013 at June 30, 2019) and $1,122 at March 31, 2020 ($1,026 at March 31, 2019), 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, 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									1,350				73
Other comprehensive income (loss), net of tax											(247)		(13)
Dividends ($1.31 per share)*									(1,124)				(37)
Stock-based compensation expense			32
Shares issued for stock options			160				197
Shares issued for restricted stock units			(17)				17
Treasury stock acquired							(228)
Other			3		1		2		4		1
Balance, June 30, 2020	$	1,466	$	2,666	$	(1)	$	(22,075)	$	22,731	$	(4,519)	$	464


Six Months Ended June 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									1,146				72
Other comprehensive income (loss), net of tax											69
Dividends ($1.28 per share)*									(1,103)				(34)
Stock-based compensation expense			34
Shares issued for stock options			114				162
Shares issued for restricted stock units			(14)				14
Treasury stock acquired							(664)
Other							2		(5)
Balance, June 30, 2019	$	1,466	$	2,338	$	(3)	$	(21,682)	$	21,653	$	(4,119)	$	337

⁽¹⁾Accumulated other comprehensive income (loss) includes cumulative translation losses of $3,402 at June 30, 2020 ($3,104 at June 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 $1,108 at June 30, 2020 ($1,013 at June 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)

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	2020-06-30	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	2020-07-31	Earnings, Exhibits
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-31.A	exhibit31a063020q22020.htm
EX-31.B	exhibit31b063020q22020.htm
EX-32	exhibit32063020q22020.htm

CL 10Q Quarterly Report

Colgate Palmolive Earnings 2020-06-30