Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2023 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2023 |
Document Transition Report | false |
Entity File Number | 1-644 |
Entity Registrant Name | COLGATE-PALMOLIVE COMPANY |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 13-1815595 |
Entity Address, Address Line One | 300 Park Avenue |
Entity Address, City or Town | New York, |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10022 |
City Area Code | 212 |
Local Phone Number | 310-2000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 823,372,259 |
Entity Central Index Key | 0000021665 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Common Stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, $1.00 par value |
Trading Symbol | CL |
Security Exchange Name | NYSE |
0.500% Notes due 2026 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.500% Notes due 2026 |
Trading Symbol | CL26 |
Security Exchange Name | NYSE |
0.300% Notes due 2029 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.300% Notes due 2029 |
Trading Symbol | CL29 |
Security Exchange Name | NYSE |
1.375% Notes due 2034 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.375% Notes due 2034 |
Trading Symbol | CL34 |
Security Exchange Name | NYSE |
0.875% Notes due 2039 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.875% Notes due 2039 |
Trading Symbol | CL39 |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 4,915 | $ 4,455 | $ 14,507 | $ 13,338 |
Cost of sales | 2,038 | 1,907 | 6,131 | 5,664 |
Gross profit | 2,877 | 2,548 | 8,376 | 7,674 |
Selling, general and administrative expenses | 1,822 | 1,634 | 5,348 | 4,932 |
Other (income) expense, net | 26 | (33) | 116 | 51 |
Operating profit | 1,029 | 947 | 2,912 | 2,691 |
Non-service related postretirement costs | 15 | 15 | 338 | 65 |
Interest (income) expense, net | 58 | 40 | 170 | 98 |
Income before income taxes | 956 | 892 | 2,404 | 2,528 |
Provision for income taxes | 209 | 210 | 709 | 604 |
Net income including noncontrolling interests | 747 | 682 | 1,695 | 1,924 |
Less: Net income attributable to noncontrolling interests | 39 | 64 | 113 | 144 |
Net income attributable to Colgate-Palmolive Company | $ 708 | $ 618 | $ 1,582 | $ 1,780 |
Earnings per common share, basic (in dollars per share) | $ 0.86 | $ 0.74 | $ 1.91 | $ 2.12 |
Earnings per common share, diluted (in dollars per share) | $ 0.86 | $ 0.74 | $ 1.90 | $ 2.12 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income including noncontrolling interests | $ 747 | $ 682 | $ 1,695 | $ 1,924 |
Other comprehensive income (loss), net of tax: | ||||
Cumulative translation adjustments | (79) | (161) | (9) | (227) |
Retirement plans and other retiree benefit adjustments | 32 | 298 | 45 | 327 |
Gains (losses) on cash flow hedges | 5 | (26) | 1 | 75 |
Total Other comprehensive income (loss), net of tax | (42) | 111 | 37 | 175 |
Total Comprehensive income including noncontrolling interests | 705 | 793 | 1,732 | 2,099 |
Less: Net income attributable to noncontrolling interests | 39 | 64 | 113 | 144 |
Less: Cumulative translation adjustments attributable to noncontrolling interests | (3) | (16) | (44) | (32) |
Total Comprehensive income attributable to noncontrolling interests | 36 | 48 | 69 | 112 |
Total Comprehensive income attributable to Colgate-Palmolive Company | $ 669 | $ 745 | $ 1,663 | $ 1,987 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 951 | $ 775 |
Receivables (net of allowances of $83 and $70, respectively) | 1,577 | 1,504 |
Inventories | 1,931 | 2,074 |
Other current assets | 898 | 760 |
Total current assets | 5,357 | 5,113 |
Property, plant and equipment: | ||
Cost | 9,979 | 9,583 |
Less: Accumulated depreciation | (5,570) | (5,276) |
Property, plant and equipment, net | 4,409 | 4,307 |
Goodwill | 3,327 | 3,352 |
Other intangible assets, net | 1,861 | 1,920 |
Deferred income taxes | 202 | 135 |
Other assets | 887 | 904 |
Total assets | 16,043 | 15,731 |
Current Liabilities | ||
Notes and loans payable | 18 | 11 |
Current portion of long-term debt | 16 | 14 |
Accounts payable | 1,482 | 1,551 |
Accrued income taxes | 354 | 317 |
Other accruals | 2,732 | 2,111 |
Total current liabilities | 4,602 | 4,004 |
Long-term debt | 8,690 | 8,741 |
Deferred income taxes | 430 | 383 |
Other liabilities | 1,915 | 1,797 |
Total liabilities | 15,637 | 14,925 |
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 | 3,762 | 3,546 |
Retained earnings | 24,571 | 24,573 |
Accumulated other comprehensive income (loss) | (3,974) | (4,055) |
Unearned compensation | 0 | (1) |
Treasury stock, at cost | (25,834) | (25,128) |
Total Colgate-Palmolive Company shareholders’ equity | (9) | 401 |
Noncontrolling interests | 415 | 405 |
Total equity | 406 | 806 |
Total liabilities and equity | $ 16,043 | $ 15,731 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets | ||
Allowance for doubtful accounts receivable, current | $ 83 | $ 70 |
Shareholders’ Equity | ||
Common stock par value (in dollars per share) | $ 1 | $ 1 |
Common stock authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock issued (in shares) | 1,465,706,360 | 1,465,706,360 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities | ||
Net income including noncontrolling interests | $ 1,695 | $ 1,924 |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations: | ||
Depreciation and amortization | 417 | 410 |
ERISA litigation matter | 267 | 0 |
Restructuring and termination benefits, net of cash | (17) | 51 |
Stock-based compensation expense | 97 | 105 |
Gain on the sale of land | 0 | (47) |
Deferred income taxes | (109) | (13) |
Cash effects of changes in: | ||
Receivables | (62) | (171) |
Inventories | 150 | (422) |
Accounts payable and other accruals | 168 | 9 |
Other non-current assets and liabilities | 3 | 37 |
Net cash provided by (used in) operations | 2,609 | 1,883 |
Investing Activities | ||
Capital expenditures | (508) | (475) |
Purchases of marketable securities and investments | (324) | (239) |
Proceeds from sale of marketable securities and investments | 264 | 55 |
Payment for acquisitions, net of cash acquired | 0 | (817) |
Proceeds from the sale of land | 0 | 47 |
Other investing activities | (31) | 1 |
Net cash provided by (used in) investing activities | (599) | (1,428) |
Financing Activities | ||
Short-term borrowing (repayment) less than 90 days, net | (564) | (56) |
Principal payments of debt | (903) | (2) |
Proceeds from issuance of debt | 1,497 | 1,513 |
Dividends paid | (1,243) | (1,206) |
Purchases of treasury shares | (883) | (895) |
Proceeds from exercise of stock options | 325 | 398 |
Other financing activities | (30) | (38) |
Net cash provided by (used in) financing activities | (1,801) | (286) |
Effect of exchange rate changes on Cash and cash equivalents | (33) | (63) |
Net increase (decrease) in Cash and cash equivalents | 176 | 106 |
Cash and cash equivalents at beginning of the period | 775 | 832 |
Cash and cash equivalents at end of the period | 951 | 938 |
Supplemental Cash Flow Information | ||
Income taxes paid | 726 | 690 |
Interest paid | $ 243 | $ 104 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Unearned Compensation | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | [1] | Noncontrolling Interests | |
Beginning balance at Dec. 31, 2021 | $ 1,466 | $ 3,269 | $ (1) | $ (24,089) | $ 24,350 | $ (4,386) | $ 362 | |||
Changes in Shareholders' Equity [Roll Forward] | ||||||||||
Net income | $ 1,924 | 1,780 | 144 | |||||||
Other comprehensive income (loss), net of tax | 175 | 207 | (32) | |||||||
Dividends | [2] | (1,564) | (42) | |||||||
Stock-based compensation expense | 105 | |||||||||
Shares issued for stock options | 181 | 194 | ||||||||
Shares issued for restricted stock units | (39) | 39 | ||||||||
Treasury stock acquired | (895) | |||||||||
Other | 2 | 1 | 2 | (1) | ||||||
Ending balance at Sep. 30, 2022 | 1,466 | 3,518 | 0 | (24,749) | 24,566 | (4,179) | 431 | |||
Beginning balance at Jun. 30, 2022 | 1,466 | 3,402 | 0 | (24,736) | 24,342 | (4,306) | 390 | |||
Changes in Shareholders' Equity [Roll Forward] | ||||||||||
Net income | 682 | 618 | 64 | |||||||
Other comprehensive income (loss), net of tax | 111 | 127 | (16) | |||||||
Dividends | [2] | (394) | ||||||||
Stock-based compensation expense | 60 | |||||||||
Shares issued for stock options | 73 | 73 | ||||||||
Shares issued for restricted stock units | (16) | 16 | ||||||||
Treasury stock acquired | (104) | |||||||||
Other | (1) | 2 | (7) | |||||||
Ending balance at Sep. 30, 2022 | 1,466 | 3,518 | 0 | (24,749) | 24,566 | (4,179) | 431 | |||
Beginning balance at Dec. 31, 2022 | 806 | 1,466 | 3,546 | (1) | (25,128) | 24,573 | (4,055) | 405 | ||
Changes in Shareholders' Equity [Roll Forward] | ||||||||||
Net income | 1,695 | 1,582 | 113 | |||||||
Other comprehensive income (loss), net of tax | 37 | 81 | (44) | |||||||
Dividends | [2] | (1,584) | (59) | |||||||
Stock-based compensation expense | 97 | |||||||||
Shares issued for stock options | 145 | 152 | ||||||||
Shares issued for restricted stock units | (30) | 30 | ||||||||
Treasury stock acquired | (883) | |||||||||
Other | 4 | 1 | (5) | |||||||
Ending balance at Sep. 30, 2023 | 406 | 1,466 | 3,762 | 0 | (25,834) | 24,571 | (3,974) | 415 | ||
Beginning balance at Jun. 30, 2023 | 1,466 | 3,688 | 0 | (25,541) | 24,258 | (3,935) | 379 | |||
Changes in Shareholders' Equity [Roll Forward] | ||||||||||
Net income | 747 | 708 | 39 | |||||||
Other comprehensive income (loss), net of tax | (42) | (39) | (3) | |||||||
Dividends | [2] | (395) | 0 | |||||||
Stock-based compensation expense | 60 | |||||||||
Shares issued for stock options | 29 | 25 | ||||||||
Shares issued for restricted stock units | (16) | 16 | ||||||||
Treasury stock acquired | (332) | |||||||||
Other | 1 | (2) | ||||||||
Ending balance at Sep. 30, 2023 | $ 406 | $ 1,466 | $ 3,762 | $ 0 | $ (25,834) | $ 24,571 | $ (3,974) | $ 415 | ||
[1]Accumulated other comprehensive income (loss) includes cumulative translation losses of $3,458 at September 30, 2023 ($3,545 at September 30, 2022) and $3,381 at June 30, 2023 ($3,398 at June 30, 2022), respectively, and unrecognized retirement plan and other retiree benefits costs of $586 at September 30, 2023 ($717 at September 30, 2022) and $618 at June 30, 2023 ($1,015 at June 30, 2022), respectively.[2]Two dividends were declared in each of the first quarters of 2023 and 2022. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Parenthetical) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2023 USD ($) $ / shares | Mar. 31, 2023 dividend | Sep. 30, 2022 USD ($) $ / shares | Mar. 31, 2022 dividend | Sep. 30, 2023 USD ($) $ / shares | Sep. 30, 2022 USD ($) $ / shares | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Statement of Stockholders' Equity [Abstract] | ||||||||||
Dividends declared per common share (in dollars per share) | $ / shares | $ 0.48 | $ 0.47 | $ 1.91 | $ 1.86 | ||||||
Accumulated other comprehensive loss, cumulative translation losses | $ 3,458 | $ 3,545 | $ 3,458 | $ 3,545 | $ 3,381 | $ 3,491 | $ 3,398 | $ 3,349 | ||
Accumulated other comprehensive income (loss), unrecognized retirement plan and other retiree benefit costs | $ 586 | $ 717 | $ 586 | $ 717 | $ 618 | $ 631 | $ 1,015 | $ 1,044 | ||
Number of dividends declared per quarter | dividend | 2 | 2 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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, 2022, filed with the Securities and Exchange Commission (the “SEC”). |
Use of Estimates
Use of Estimates | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates | 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In October 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-06, “Disclosure Improvements-Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” This ASU modified the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations. This guidance is effective for the Company no later than June 30, 2027 and is not expected to have a material impact on the Company’s Consolidated Financial Statements. In August 2023, the FASB issued ASU No. 2023-05, “Business Combinations-Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement.” This ASU requires a joint venture to initially measure all contributions received upon its formation at fair value. This guidance is applicable to joint ventures with a formation date on or after January 1, 2025 and is not expected to have a material impact on the Company’s Consolidated Financial Statements. In March 2023, the FASB issued ASU No. 2023-01, “Leases (Topic 842): Common Control Arrangements.” This ASU clarified the accounting for leasehold improvements for leases under common control. The guidance is effective for the Company beginning on January 1, 2024 and is not expected to have a material impact on the Company’s Consolidated Financial Statements. In September 2022, the FASB issued ASU No. 2022-04, “Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” This ASU requires a buyer that uses supplier finance programs to make annual disclosures about the programs’ key terms, the balance sheet presentation of related amounts, the confirmed amount outstanding at the end of the period and associated roll-forward information. The Company adopted the guidance beginning on January 1, 2023, except for the roll-forward information, which is effective for the Company beginning on January 1, 2024. See Note 13, Supplier Finance Programs for additional information. In March 2022, the FASB issued 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 the year of origination for financing receivables. This guidance was effective for the Company beginning on January 1, 2023 and did not 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 was effective for the Company beginning on January 1, 2023 and did not have an 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 was effective for the Company beginning on January 1, 2023 and did not have an 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. In December 2022, the FASB issued ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” which defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief under Topic 848. The Company has completed its evaluation of significant contracts under this ASU. Certain of the reviewed contracts have been modified to apply a new reference rate, primarily the Secured Overnight Financing Rate (SOFR). The guidance has not had a material impact on the Company’s Consolidated Financial Statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Red Collar Pet Foods On September 30, 2022, the Company acquired a business that operates three dry pet food manufacturing plants in the United States from Red Collar Pet Foods Holdings, Inc. and Red Collar Pet Foods Holdings, L.P. (collectively, “Red Collar Pet Foods”) for cash consideration of $719 to further support the global growth of its Hill’s Pet Nutrition business. The acquisition was financed with a combination of debt and cash and was accounted for as a business combination in accordance with ASC 805. During the fourth quarter of 2022, the Company finalized its purchase price allocation and the final purchase price of $719 was allocated to the net assets acquired based on their respective estimated fair values as follows: Inventories $ 33 Property, plant and equipment 362 Goodwill 413 Current liabilities (5) Intangible liability (16) Deferred income taxes (68) Fair value of net assets acquired $ 719 Goodwill of $413 was allocated to the Pet Nutrition segment. Goodwill will not be deductible for tax purposes. Pro forma results of operations have not been presented as the impact on the Company’s Consolidated Financial Statements is not material. Nutriamo S.r.l. On April 28, 2022, the Company acquired a business that operates a pet food manufacturing plant from Nutriamo S.r.l., a canned pet food manufacturer based in Italy, which gives the Company additional capacity for the Hill’s wet pet nutrition diets, particularly in Europe. This acquisition was accounted for as a business combination in accordance with ASC 805. The impact of this acquisition on the Company’s Consolidated Financial Statements was not material. |
Restructuring and Related Imple
Restructuring and Related Implementation Charges | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Implementation Charges | 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 2024, 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 (80%); asset-related costs, primarily accelerated depreciation and asset write-downs (10%); 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 (10%), Hill’s Pet Nutrition (10%) and Corporate (15%). For the three months ended September 30, 2023, charges resulting from the 2022 Global Productivity Initiative were $2 pretax ($2 aftertax). For the three months ended September 30, 2022, charges resulting from the 2022 Global Productivity Initiative were $2 pretax ($2 aftertax). For the nine months ended September 30, 2023 and September 30, 2022, charges resulting from the 2022 Global Productivity Initiative are reflected in the income statement as follows: Nine Months Ended September 30, 2023 2022 Gross Profit $ 1 $ — Selling, general and administrative expenses 2 4 Other (income) expense, net 22 75 Non-service related postretirement costs 4 13 Total 2022 Global Productivity Initiative charges, pretax $ 29 $ 92 Total 2022 Global Productivity Initiative charges, aftertax $ 23 $ 72 Restructuring and related implementation charges in the preceding table were 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: Nine Months Ended September 30, Program-to-date 2023 2022 North America 14 % 11 % 11 % Latin America 1 % 16 % 15 % Europe 20 % 16 % 19 % Asia Pacific 21 % 9 % 11 % Africa/Eurasia 10 % 12 % 11 % Hill's Pet Nutrition 14 % 10 % 12 % Corporate 20 % 26 % 21 % Total 100 % 100 % 100 % Since the inception of the 2022 Global Productivity Initiative, the Company has incurred cumulative pretax charges of $139 ($110 aftertax) in connection with the implementation of various projects as follows: Cumulative Charges as of September 30, 2023 Employee-Related Costs $ 125 Incremental Depreciation — Asset Impairments 1 Other 13 Total $ 139 The following tables summarize the activity for the restructuring and related implementation charges discussed above and the related accruals: Nine Months Ended September 30, 2023 Employee-Related Incremental Asset Other Total Balance at December 31, 2022 $ 30 $ — $ 1 $ 3 $ 34 Charges 23 — — 6 29 Cash Payments (38) — — (8) (46) Charges against assets (4) — (1) — (5) Foreign exchange 5 — — — 5 Balance at September 30, 2023 $ 16 $ — $ — $ 1 $ 17 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Inventories | Inventories Inventories by major class were as follows: September 30, December 31, Raw materials and supplies $ 568 $ 666 Work-in-process 52 48 Finished goods 1,414 1,508 Total Inventories, net $ 2,034 $ 2,222 Non-current inventory, net $ (103) $ (148) Current Inventories, net $ 1,931 $ 2,074 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share For the three months ended September 30, 2023 and 2022, earnings per share were as follows: Three Months Ended September 30, 2023 September 30, 2022 Net income attributable to Colgate-Palmolive Company Shares Per Net income attributable to Colgate-Palmolive Company Shares Per Basic EPS $ 708 825.6 $ 0.86 $ 618 835.7 $ 0.74 Stock options and restricted stock units 1.7 2.8 Diluted EPS $ 708 827.3 $ 0.86 $ 618 838.5 $ 0.74 For the three months ended September 30, 2023 and 2022, the average number of stock options and restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 13,538,153 and 2,891,324, respectively. For the nine months ended September 30, 2023 and 2022, earnings per share were as follows: Nine Months Ended September 30, 2023 September 30, 2022 Net income attributable to Colgate-Palmolive Company Shares Per Net income attributable to Colgate-Palmolive Company Shares Per Basic EPS $ 1,582 828.8 $ 1.91 $ 1,780 837.7 $ 2.12 Stock options and restricted stock units 1.7 2.7 Diluted EPS $ 1,582 830.5 $ 1.90 $ 1,780 840.4 $ 2.12 For the nine months ended September 30, 2023 and 2022, the average number of stock options and restricted stock units that were anti-dilutive and not included in diluted earnings per share calculations were 13,504,588 and 3,709,818, 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. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the three months ended September 30, 2023 and 2022 were as follows: 2023 2022 Pretax Net of Tax Pretax Net of Tax Cumulative translation adjustments $ (46) $ (76) $ (93) $ (145) Retirement plans and other retiree benefits: Net actuarial gain (loss) and prior service costs arising during the period 40 27 379 291 Amortization of net actuarial loss, transition and prior service costs (1) 7 5 9 7 Retirement plans and other retiree benefit adjustments 47 32 388 298 Cash flow hedges: Unrealized gains (losses) on cash flow hedges 3 2 (28) (23) Reclassification of (gains) losses into net earnings on cash flow hedges (2) 4 3 (4) (3) Gains (losses) on cash flow hedges 7 5 (32) (26) Total Other comprehensive income (loss) $ 8 $ (39) $ 263 $ 127 (1) These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 9, Retirement Plans and Other Retiree Benefits for additional details. (2) These (gains) losses are reclassified into Cost of sales. See Note 12, 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 nine months ended September 30, 2023 and 2022 were as follows: 2023 2022 Pretax Net of Tax Pretax Net of Tax Cumulative translation adjustments $ 60 $ 35 $ (67) $ (195) Retirement plans and other retiree benefits: Net actuarial gain (loss) and prior service costs arising during the period 40 27 379 291 Amortization of net actuarial loss, transition and prior service costs (1) 23 18 46 36 Retirement plans and other retiree benefit adjustments 63 45 425 327 Cash flow hedges: Unrealized gains (losses) on cash flow hedges 3 2 113 88 Reclassification of (gains) losses into net earnings on cash flow hedges (2) (2) (1) (15) (13) Gains (losses) on cash flow hedges 1 1 98 75 Total Other comprehensive income (loss) $ 124 $ 81 $ 456 $ 207 (1) These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 9, Retirement Plans and Other Retiree Benefits for additional details. (2) These (gains) losses are reclassified into Cost of sales. See Note 12, Fair Value Measurements and Financial Instruments for additional details. There were no tax impacts on OCI attributable to Noncontrolling interests. |
Retirement Plans and Other Reti
Retirement Plans and Other Retiree Benefits | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Plans and Other Retiree Benefits | Retirement Plans and Other Retiree Benefits Components of Net periodic benefit cost for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended September 30, Pension Benefits Other Retiree Benefits United States International 2023 2022 2023 2022 2023 2022 Service cost $ — $ — $ 3 $ 2 $ 2 $ 5 Interest cost 20 16 6 8 7 11 Expected return on plan assets (20) (23) (5) (5) — — Amortization of actuarial loss (gain) 12 10 1 2 (6) (3) Net periodic benefit cost $ 12 $ 3 $ 5 $ 7 $ 3 $ 13 Other postretirement charges — (1) — — — — Total pension cost $ 12 $ 2 $ 5 $ 7 $ 3 $ 13 Nine Months Ended September 30, Pension Benefits Other Retiree Benefits United States International 2023 2022 2023 2022 2023 2022 Service cost $ — $ 1 $ 9 $ 10 $ 6 $ 16 Interest cost 68 48 22 14 29 30 Expected return on plan assets (61) (75) (14) (10) — (1) Amortization of actuarial loss (gain) 34 33 3 5 (14) 8 Net periodic benefit cost $ 41 $ 7 $ 20 $ 19 $ 21 $ 53 Other postretirement charges 4 12 — — — 1 ERISA litigation matter 267 — — — — — Total pension cost $ 312 $ 19 $ 20 $ 19 $ 21 $ 54 There were no other postretirement charges for the three months ended September 30, 2023. Other postretirement charges for the three months ended September 30, 2022 included an adjustment of $1 related to the 2022 Global Productivity Initiative. Other postretirement charges for the nine months ended September 30, 2023 and 2022 included pension and other charges of $4 and $13, respectively, incurred pursuant to the 2022 Global Productivity Initiative. For the three and nine months ended September 30, 2023 and 2022, the Company made no voluntary contributions to its U.S. postretirement plans. In the first quarter of 2023, the Company recorded a charge of $267 as a result of a decision of the United States Court of Appeals for the Second Circuit (the “Second Circuit”) affirming a grant of summary judgment to the plaintiffs in a lawsuit under the Employee Retirement Income Security Act seeking the recalculation of benefits and other relief associated with a 2005 residual annuity amendment to the Colgate-Palmolive Company Employees’ Retirement Income Plan (the “Retirement Plan”). The impact of the decision will result in an increase in the obligations of the Retirement Plan, which based on the current funded status of the Retirement Plan will require no immediate cash contribution by the Company. See Note 10, Contingencies for additional information. In the third quarter of 2022, the Company amended its domestic postretirement plan to limit eligibility for certain existing employees and change the way medical coverage and subsidies are delivered for certain current and future retirees. As required, the Company remeasured the obligation for the domestic postretirement plan, which resulted in the reduction of the projected benefit obligation and a corresponding actuarial gain of $398. The reduction of the projected benefit |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies As a global company serving consumers in more than 200 countries and territories, the Company is routinely subject to a wide variety of legal proceedings. These include disputes relating to intellectual property, contracts, product liability, marketing, advertising, foreign exchange controls, antitrust and trade regulation, as well as labor and employment, pension, data privacy and security, environmental and tax matters and consumer class actions. Management proactively reviews and monitors the Company’s exposure to, and the impact of, environmental matters. The Company is party to various environmental matters and, as such, may be responsible for all or a portion of the cleanup, restoration and post-closure monitoring of several sites. The Company establishes accruals for loss contingencies when it has determined that a loss is probable and that the amount of loss, or range of loss, can be reasonably estimated. Any such accruals are adjusted thereafter as appropriate to reflect changes in circumstances. The Company also determines estimates of reasonably possible losses or ranges of reasonably possible losses in excess of related accrued liabilities, if any, when it has determined that a loss is reasonably possible and it is able to determine such estimates. For those matters disclosed below for which the amount of any potential losses can be reasonably estimated, the Company currently estimates that the aggregate range of reasonably possible losses in excess of any accrued liabilities is $0 to approximately $250 (based on current exchange rates). The estimates included in this amount are based on the Company’s analysis of currently available information and, as new information is obtained, these estimates may change. Due to the inherent subjectivity of the assessments and the unpredictability of outcomes of legal proceedings, any amounts accrued or included in this aggregate range may not represent the ultimate loss to the Company. Thus, the Company’s exposure and ultimate losses may be higher or lower, and possibly significantly so, than the amounts accrued or the range disclosed above. Based on current knowledge, management does not believe that the ultimate resolution of loss contingencies arising from the matters discussed herein will have a material effect on the Company’s consolidated financial position or its ongoing results of operations or cash flows. However, in light of the inherent uncertainties noted above, an adverse outcome in one or more matters could be material to the Company’s results of operations or cash flows for any particular quarter or year. Brazilian Matters There are certain tax and civil proceedings outstanding, as described below, related to the Company’s 1995 acquisition of the Kolynos oral care business from Wyeth (the “Seller”). The Brazilian internal revenue authority has disallowed interest deductions and foreign exchange losses taken by the Company’s Brazilian subsidiary for certain years in connection with the financing of the Kolynos acquisition. The tax assessments with interest, penalties and any court-mandated fees, at the current exchange rate, are approximately $128. This amount includes additional assessments received from the Brazilian internal revenue authority in April 2016 relating to net operating loss carryforwards used by the Company’s Brazilian subsidiary to offset taxable income that had also been deducted from the authority’s original assessments. The Company has been disputing the disallowances by appealing the assessments since October 2001. In each of September 2015, February 2017, September 2018, April 2019 and August 2020, the Company lost an administrative appeal and subsequently challenged these assessments in the Brazilian federal courts. Currently, there are three lawsuits pending in the Lower Federal Court and two cases have progressed to the Federal Court of Appeals. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the disallowances are without merit and that the Company should ultimately prevail. The Company is challenging these disallowances vigorously. In July 2002, the Brazilian Federal Public Attorney filed a civil action against the federal government of Brazil, Laboratorios Wyeth-Whitehall Ltda. (the Brazilian subsidiary of the Seller) and the Company, as represented by its Brazilian subsidiary, in the 6th. Lower Federal Court in the City of São Paulo, seeking to annul an April 2000 decision by the Brazilian Board of Tax Appeals that found in favor of the Seller’s Brazilian subsidiary on the issue of whether it had incurred taxable capital gains as a result of the divestiture of Kolynos. The action seeks to make the Company’s Brazilian subsidiary jointly and severally liable for any tax due from the Seller’s Brazilian subsidiary. The case has been pending since 2002, and the Lower Federal Court has not issued a decision. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the Company should ultimately prevail in this action. The Company is challenging this action vigorously. In December 2005, the Brazilian internal revenue authority issued to the Company’s Brazilian subsidiary a tax assessment with interest, penalties and any court-mandated fees of approximately $56, at the current exchange rate, based on a claim that certain purchases of U.S. Treasury bills by the subsidiary and their subsequent disposition during the period 2000 to 2001 were subject to a tax on foreign exchange transactions. The Company had been disputing the assessment within the internal revenue authority’s administrative appeals process. However, in November 2015, the Superior Chamber of Administrative Tax Appeals denied the Company’s final administrative appeal, and the Company has filed a lawsuit in the Brazilian federal court. In the event the Company is unsuccessful in this lawsuit, further appeals are available within the Brazilian federal courts. Although there can be no assurances, management believes, based on the opinion of its Brazilian legal counsel, that the tax assessment is without merit and that the Company should ultimately prevail. The Company is challenging this assessment vigorously. Competition Matter Certain of the Company’s subsidiaries were historically subject to actions and, in some cases, fines, by governmental authorities in a number of countries related to alleged competition law violations. Substantially all of these matters also involved other consumer goods companies and/or retail customers. The Company’s policy is to comply with antitrust and competition laws and, if a violation of any such laws is found, to take appropriate remedial action and to cooperate fully with any related governmental inquiry. The status as of September 30, 2023 of such competition law matters pending against the Company during the nine months ended September 30, 2023 is set forth below. ▪ In July 2014, the Greek competition law authority issued a statement of objections alleging a restriction of parallel imports into Greece. The Company responded to this statement of objections. In July 2017, the Company received the decision from the Greek competition law authority in which the Company was fined $11. The Company appealed the decision to the Greek courts. In April 2019, the Greek courts affirmed the judgment against the Company’s Greek subsidiary, but reduced the fine to $10.5 and dismissed the case against Colgate-Palmolive Company. The Company’s Greek subsidiary and the Greek competition authority appealed the decision to the Greek Supreme Court. Talcum Powder Matters The Company has been named as a defendant in civil actions alleging that certain talcum powder products that were sold prior to 1996 were contaminated with asbestos and/or caused mesothelioma and other cancers. Many of these actions involve a number of co-defendants from a variety of different industries, including suppliers of asbestos and manufacturers of products that, unlike the Company’s products, were designed to contain asbestos. As of September 30, 2023, there were 271 individual cases pending against the Company in state and federal courts throughout the United States, as compared to 251 cases as of June 30, 2023 and 227 cases as of December 31, 2022. During the three months ended September 30, 2023, 33 new cases were filed and 13 cases were resolved by voluntary dismissal or settlement. During the nine months ended September 30, 2023, 136 new cases were filed and 92 cases were resolved by voluntary dismissal, settlement or dismissal by the court. The value of the settlements in the periods presented was not material, either individually or in the aggregate, to such periods’ results of operations. A significant portion of the Company’s costs incurred in defending and resolving these claims has been, and the Company believes that a portion of the costs will continue to be, covered by insurance policies issued by several primary, excess and umbrella insurance carriers, subject to deductibles, exclusions, retentions, policy limits and insurance carrier insolvencies. While the Company and its legal counsel believe that these cases are without merit and intend to challenge them vigorously, there can be no assurances regarding the ultimate resolution of these matters. ERISA Matter In June 2016, a lawsuit was filed in the United States District Court for the Southern District of New York (the “District Court”) against the Retirement Plan, the Company and certain individuals (the “Company Defendants”) claiming that residual annuity payments associated with a 2005 residual annuity amendment to the Retirement Plan were improperly calculated for certain Retirement Plan participants in violation of the Employee Retirement Income Security Act (“ERISA”). The relief sought included recalculation of benefits, pre- and post-judgment interest and attorneys’ fees. This action was certified as a class action in July 2017. In July 2020, the Court dismissed certain claims, and in August 2020 granted the plaintiffs' motion for summary judgment on the remaining claims. In September 2020, the Company appealed to the Second Circuit. In March 2023, the Second Circuit affirmed the grant of summary judgment to the plaintiffs. In light of the Second Circuit decision, the Company recorded a charge to earnings of $267 in the quarter ended March 31, 2023, which is comprised of the recalculation of benefits and interest. Possible additional charges associated with this matter are expected to be immaterial and, where estimable, are reflected in the range of reasonably possible losses disclosed above. The impact of the decision will result in an increase in the obligations of the Retirement Plan, which based on the current funded status of the Retirement Plan will require no immediate cash contribution by the Company. In June 2023, the Company filed a petition for certiorari to the United States Supreme Court requesting permission for an appeal to that court and that petition was denied in October 2023. Also in June 2023, the plaintiffs filed a motion to enter a revised final judgment in the District Court to address certain unresolved calculation issues, which the Company opposed. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition. The operations of the Oral, Personal and Home Care product segment are managed geographically in five reportable operating segments: North America, Latin America, Europe, Asia Pacific and Africa/Eurasia. The Company evaluates segment performance based on several factors, including Operating profit. The Company uses Operating profit as a measure of operating segment performance because it excludes the impact of Corporate-driven decisions related to interest expense and income taxes. The accounting policies of the operating segments are generally the same as those described in Note 2, Summary of Significant Accounting Policies to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Intercompany sales have been eliminated. Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs, restructuring and related implementation charges and gains and losses on sales of non-core product lines and assets. The Company reports these items within Corporate operations as they relate to Corporate-based responsibilities and decisions and are not included in the internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments. Net sales by segment were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net sales Oral, Personal and Home Care North America $ 990 $ 958 $ 2,926 $ 2,850 Latin America 1,194 997 3,447 2,970 Europe 725 632 2,053 1,925 Asia Pacific 682 709 2,084 2,131 Africa/Eurasia 266 287 822 809 Total Oral, Personal and Home Care 3,857 3,583 11,332 10,685 Pet Nutrition 1,058 872 3,175 2,653 Total Net sales $ 4,915 $ 4,455 $ 14,507 $ 13,338 Approximately two-thirds of the Company’s Net sales are generated from markets outside the U.S., with approximately 45% of the Company’s Net sales coming from emerging markets (which consist of Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe). The Company’s Net sales of Oral, Personal and Home Care and Pet Nutrition products accounted for the following percentages of the Company’s Net sales: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net sales Oral Care 43 % 44 % 42 % 44 % Personal Care 19 % 19 % 19 % 19 % Home Care 17 % 17 % 17 % 17 % Pet Nutrition 21 % 20 % 22 % 20 % Total Net sales 100 % 100 % 100 % 100 % Operating profit by segment was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Operating profit Oral, Personal and Home Care North America $ 231 $ 198 $ 651 $ 557 Latin America 372 289 1,050 818 Europe 162 127 412 410 Asia Pacific 193 185 564 556 Africa/Eurasia 66 66 196 160 Total Oral, Personal and Home Care 1,024 865 2,873 2,501 Pet Nutrition 201 201 575 617 Corporate (196) (119) (536) (427) Total Operating profit $ 1,029 $ 947 $ 2,912 $ 2,691 Corporate Operating profit (loss) for the three months ended September 30, 2023 included charges resulting from the 2022 Global Productivity Initiative of $2. Corporate Operating profit (loss) for the nine months ended September 30, 2023 included product recall costs of $25 and charges resulting from the 2022 Global Productivity Initiative of $25. Corporate Operating profit (loss) for the three and nine months ended September 30, 2022 included charges resulting from the 2022 Global Productivity Initiative of $3 and $79, respectively, and a gain on the sale of land in Asia Pacific of $47 and acquisition-related costs of $17 in both periods. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Instruments | Fair Value Measurements and Financial Instruments The Company uses available market information and other valuation methodologies in assessing the fair value of financial instruments. Judgment is required in interpreting market data to develop the estimates of fair value and, accordingly, changes in assumptions or the estimation methodologies may affect the fair value estimates. The Company is exposed to the risk of credit loss in the event of nonperformance by counterparties to financial instrument contracts; however, nonperformance is considered unlikely and any nonperformance is unlikely to be material, as it is the Company’s policy to contract only with diverse, credit-worthy counterparties based upon both strong credit ratings and other credit considerations. The Company is exposed to market risk from foreign currency exchange rates, interest rates and commodity price fluctuations. Volatility relating to these exposures is managed on a global basis by utilizing a number of techniques, including working capital management, sourcing strategies, selling price increases, selective borrowings in local currencies and entering into selective derivative instrument transactions, issued with standard features, in accordance with the Company’s treasury and risk management policies, which prohibit the use of derivatives for speculative purposes and leveraged derivatives for any purpose. It is the Company’s policy to enter into derivative instrument contracts with terms that match the underlying exposure being hedged. The Company’s derivative instruments include interest rate swap contracts, forward-starting interest rate swaps, foreign currency contracts, and commodity contracts. The Company utilizes interest rate swap contracts to manage its targeted mix of fixed and floating rate debt, and these swaps are valued using observable benchmark rates (Level 2 valuation). The Company utilizes forward-starting interest rate swaps to mitigate the risk of variability in interest rate for future debt issuances and these swaps are valued using observable benchmark rates (Level 2 valuation). The Company utilizes foreign currency contracts, including forward and swap contracts, option contracts, local currency deposits and local currency borrowings to hedge portions of its foreign currency purchases, assets and liabilities arising in the normal course of business and the net investment in certain foreign subsidiaries. These contracts are valued using observable market rates (Level 2 valuation). Commodity futures contracts are utilized to hedge the purchases of raw materials used in production. These contracts are measured using quoted commodity exchange prices (Level 1 valuation). The duration of foreign currency and commodity contracts generally does not exceed 12 months. The following table summarizes the fair value of the Company’s derivative instruments and other financial instruments which are carried at fair value in the Company’s Condensed Consolidated Balance Sheets at September 30, 2023 and December 31, 2022: Assets Liabilities Fair Value Account Fair Value Designated derivative instruments September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Foreign currency contracts Other current assets $ 47 $ 19 Other accruals $ 23 $ 15 Commodity contracts Other current assets — 4 Other accruals 2 — Total designated $ 47 $ 23 $ 25 $ 15 Other financial instruments Marketable securities Other current assets $ 247 $ 175 Total other financial instruments $ 247 $ 175 The carrying amount of cash, cash equivalents, marketable securities, accounts receivable and short-term debt approximated fair value as of September 30, 2023 and December 31, 2022. The estimated fair value of the Company’s long-term debt, including the current portion, as of September 30, 2023 and December 31, 2022, was $8,000 and $8,184, respectively, and the related carrying value was $8,706 and $8,755, respectively. In August 2022, the Company issued $500 of three-year Senior Notes at a fixed coupon rate of 3.100%, $500 of five-year Senior Notes at a fixed coupon rate of 3.100% and $500 of ten-year Senior Notes at a fixed coupon rate of 3.250%. In March 2023, the Company issued $500 of three-year Senior Notes at a fixed coupon rate of 4.800%, $500 of five-year Senior Notes at a fixed coupon rate of 4.600% and $500 of ten-year Senior Notes at a fixed coupon rate of 4.600%. The estimated fair value of long-term debt was derived principally from quoted prices on the Company’s outstanding fixed-term notes (Level 2 valuation). The following tables present the notional values as of: September 30, 2023 Foreign Currency Contracts Foreign Currency Debt Commodity Contracts Fair Value Hedges $ 1,404 $ — $ — $ 1,404 Cash Flow Hedges 864 — 42 906 Net Investment Hedges 409 4,137 — 4,546 December 31, 2022 Foreign Currency Contracts Foreign Currency Debt Commodity Contracts Fair Value Hedges $ 609 $ — $ — $ 609 Cash Flow Hedges 840 — 26 866 Net Investment Hedges 138 4,797 — 4,935 The following tables present the location and amount of gains (losses) recognized on the Company’s Condensed Consolidated Statements of Income: Three Months Ended September 30, 2023 2022 Cost of sales Selling, general and administrative expenses Interest (income) expense, net Cost of sales Selling, general and administrative expenses Interest (income) expense, net Interest rate swaps designated as fair value hedges: Derivative instrument $ — $ — $ — $ — $ — $ (12) Hedged items — — — — — 12 Foreign currency contracts designated as fair value hedges: Derivative instrument — (17) — — 17 — Hedged items — 17 — — (17) — Foreign currency contracts designated as cash flow hedges: Amount reclassified from OCI (5) — — 4 — — Commodity contracts designated as cash flow hedges: Amount reclassified from OCI (1) — — — — — Forward-starting interest rate swaps designated as cash flow hedges: Amount reclassified from OCI — — 2 — — — Total gain (loss) on hedges recognized in income $ (6) $ — $ 2 $ 4 $ — $ — Nine Months Ended September 30, 2023 2022 Cost of sales Selling, general and administrative expenses Interest (income) expense, net Cost of sales Selling, general and administrative expenses Interest (income) expense, net Interest rate swaps designated as fair value hedges: Derivative instrument $ — $ — $ — $ — $ — $ (6) Hedged items — — — — — 6 Foreign currency contracts designated as fair value hedges: Derivative instrument — 6 — — 31 — Hedged items — (6) — — (31) — Foreign currency contracts designated as cash flow hedges: Amount reclassified from OCI (2) — — 9 — — Commodity contracts designated as cash flow hedges: Amount reclassified from OCI (1) — — 6 — — Forward-starting interest rate swaps designated as cash flow hedges: Amount reclassified from OCI — — 5 — — — Total gain (loss) on hedges recognized in income $ (3) $ — $ 5 $ 15 $ — $ — The following table presents the location and amount of unrealized gains (losses) included in OCI: Three Months Ended September 30, 2023 2022 Foreign currency contracts designated as cash flow hedges: Gain (loss) recognized in OCI $ 5 $ 11 Forward-starting interest rate swaps designated as cash flow hedges: Gain (loss) recognized in OCI (2) (39) Commodity contracts designated as cash flow hedges: Gain (loss) recognized in OCI — — Foreign currency contracts designated as net investment hedges: Gain (loss) on instruments (37) 12 Gain (loss) on hedged items 37 (12) Foreign currency debt designated as net investment hedges: Gain (loss) on instruments 50 276 Gain (loss) on hedged items (50) (276) Total unrealized gain (loss) on hedges recognized in OCI $ 3 $ (28) Nine Months Ended September 30, 2023 2022 Foreign currency contracts designated as cash flow hedges: Gain (loss) recognized in OCI $ (4) $ 24 Forward-starting interest rate swaps designated as cash flow hedges: Gain (loss) recognized in OCI 13 85 Commodity contracts designated as cash flow hedges: Gain (loss) recognized in OCI (6) 4 Foreign currency contracts designated as net investment hedges: Gain (loss) on instruments (19) 15 Gain (loss) on hedged items 19 (15) Foreign currency debt designated as net investment hedges: Gain (loss) on instruments 90 636 Gain (loss) on hedged items (90) (636) Total unrealized gain (loss) on hedges recognized in OCI $ 3 $ 113 |
Supplier Finance Programs
Supplier Finance Programs | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Supplier Finance Programs | Supplier Finance ProgramsThe Company has agreements to provide supplier finance programs which facilitate participating suppliers’ ability to finance payment obligations of the Company with designated third-party financial institutions. Participating suppliers may, at their sole discretion, elect to finance one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to finance amounts under these arrangements. The outstanding payment obligations under the Company’s supplier finance programs are included in Accounts Payable in the Condensed Consolidated Balance Sheets and were not material as of September 30, 2023 or December 31, 2022. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate was 21.9% for the third quarter of 2023 as compared to 23.5% for the third quarter of 2022. The primary driver of the decrease in the effective income tax rate is described below. The quarterly provision for income taxes is determined based on the Company’s estimated full year effective income tax rate adjusted by the amount of tax attributable to infrequent or unusual items that are separately recognized on a discrete basis in the income tax provision in the quarter in which they occur. The Company’s current estimate of its full year effective income tax rate before discrete period items is 23.7%, as compared to 23.8% in the comparable period of 2022. In the third quarter of 2023, the Internal Revenue Service (the “IRS”) issued a notice giving taxpayers temporary relief from the effects of certain U.S. tax regulations that were issued in December 2021, which place greater restrictions on foreign taxes that are creditable against U.S. taxes on foreign-source income. This notice allows taxpayers to defer the application of these new regulations until 2024 which is the primary driver of the decrease in the effective tax rate in the third quarter of 2023. In the second quarter of 2023, the Company reassessed with its legal and tax advisers certain tax deductions taken in prior years by one of its subsidiaries and concluded that it is more likely than not that the deductions would not be sustained by the courts in that jurisdiction. The value of the tax deductions was not material to the Company in any year in which they were taken. The cumulative effect of the change in tax position of $148 was reflected as a discrete item in the second quarter’s income tax expense, partially offset by the reversal of certain prior years’ withholding tax reserves of $22 that are no longer required. The tax liability was paid in the quarter ended September 30, 2023. The current year impact of these changes is included in the Company’s estimated full year effective income tax rate. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 708 | $ 618 | $ 1,582 | $ 1,780 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Use of Estimates (Policies)
Use of Estimates (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates | 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In October 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-06, “Disclosure Improvements-Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” This ASU modified the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations. This guidance is effective for the Company no later than June 30, 2027 and is not expected to have a material impact on the Company’s Consolidated Financial Statements. In August 2023, the FASB issued ASU No. 2023-05, “Business Combinations-Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement.” This ASU requires a joint venture to initially measure all contributions received upon its formation at fair value. This guidance is applicable to joint ventures with a formation date on or after January 1, 2025 and is not expected to have a material impact on the Company’s Consolidated Financial Statements. In March 2023, the FASB issued ASU No. 2023-01, “Leases (Topic 842): Common Control Arrangements.” This ASU clarified the accounting for leasehold improvements for leases under common control. The guidance is effective for the Company beginning on January 1, 2024 and is not expected to have a material impact on the Company’s Consolidated Financial Statements. In September 2022, the FASB issued ASU No. 2022-04, “Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” This ASU requires a buyer that uses supplier finance programs to make annual disclosures about the programs’ key terms, the balance sheet presentation of related amounts, the confirmed amount outstanding at the end of the period and associated roll-forward information. The Company adopted the guidance beginning on January 1, 2023, except for the roll-forward information, which is effective for the Company beginning on January 1, 2024. See Note 13, Supplier Finance Programs for additional information. In March 2022, the FASB issued 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 the year of origination for financing receivables. This guidance was effective for the Company beginning on January 1, 2023 and did not 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 was effective for the Company beginning on January 1, 2023 and did not have an 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 was effective for the Company beginning on January 1, 2023 and did not have an 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. In December 2022, the FASB issued ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” which defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief under Topic 848. The Company has completed its evaluation of significant contracts under this ASU. Certain of the reviewed contracts have been modified to apply a new reference rate, primarily the Secured Overnight Financing Rate (SOFR). The guidance has not had a material impact on the Company’s Consolidated Financial Statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | During the fourth quarter of 2022, the Company finalized its purchase price allocation and the final purchase price of $719 was allocated to the net assets acquired based on their respective estimated fair values as follows: Inventories $ 33 Property, plant and equipment 362 Goodwill 413 Current liabilities (5) Intangible liability (16) Deferred income taxes (68) Fair value of net assets acquired $ 719 |
Restructuring and Related Imp_2
Restructuring and Related Implementation Charges (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | For the nine months ended September 30, 2023 and September 30, 2022, charges resulting from the 2022 Global Productivity Initiative are reflected in the income statement as follows: Nine Months Ended September 30, 2023 2022 Gross Profit $ 1 $ — Selling, general and administrative expenses 2 4 Other (income) expense, net 22 75 Non-service related postretirement costs 4 13 Total 2022 Global Productivity Initiative charges, pretax $ 29 $ 92 Total 2022 Global Productivity Initiative charges, aftertax $ 23 $ 72 The following tables summarize the activity for the restructuring and related implementation charges discussed above and the related accruals: Nine Months Ended September 30, 2023 Employee-Related Incremental Asset Other Total Balance at December 31, 2022 $ 30 $ — $ 1 $ 3 $ 34 Charges 23 — — 6 29 Cash Payments (38) — — (8) (46) Charges against assets (4) — (1) — (5) Foreign exchange 5 — — — 5 Balance at September 30, 2023 $ 16 $ — $ — $ 1 $ 17 |
Schedule of Percent of Total Restructuring Charges Related To Segment for the period | Total charges incurred for the 2022 Global Productivity Initiative relate to initiatives undertaken by the following reportable operating segments: Nine Months Ended September 30, Program-to-date 2023 2022 North America 14 % 11 % 11 % Latin America 1 % 16 % 15 % Europe 20 % 16 % 19 % Asia Pacific 21 % 9 % 11 % Africa/Eurasia 10 % 12 % 11 % Hill's Pet Nutrition 14 % 10 % 12 % Corporate 20 % 26 % 21 % Total 100 % 100 % 100 % Since the inception of the 2022 Global Productivity Initiative, the Company has incurred cumulative pretax charges of $139 ($110 aftertax) in connection with the implementation of various projects as follows: Cumulative Charges as of September 30, 2023 Employee-Related Costs $ 125 Incremental Depreciation — Asset Impairments 1 Other 13 Total $ 139 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Schedule of Inventories by Major Class | Inventories by major class were as follows: September 30, December 31, Raw materials and supplies $ 568 $ 666 Work-in-process 52 48 Finished goods 1,414 1,508 Total Inventories, net $ 2,034 $ 2,222 Non-current inventory, net $ (103) $ (148) Current Inventories, net $ 1,931 $ 2,074 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | For the three months ended September 30, 2023 and 2022, earnings per share were as follows: Three Months Ended September 30, 2023 September 30, 2022 Net income attributable to Colgate-Palmolive Company Shares Per Net income attributable to Colgate-Palmolive Company Shares Per Basic EPS $ 708 825.6 $ 0.86 $ 618 835.7 $ 0.74 Stock options and restricted stock units 1.7 2.8 Diluted EPS $ 708 827.3 $ 0.86 $ 618 838.5 $ 0.74 For the nine months ended September 30, 2023 and 2022, earnings per share were as follows: Nine Months Ended September 30, 2023 September 30, 2022 Net income attributable to Colgate-Palmolive Company Shares Per Net income attributable to Colgate-Palmolive Company Shares Per Basic EPS $ 1,582 828.8 $ 1.91 $ 1,780 837.7 $ 2.12 Stock options and restricted stock units 1.7 2.7 Diluted EPS $ 1,582 830.5 $ 1.90 $ 1,780 840.4 $ 2.12 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Comprehensive Income (Loss) | Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the three months ended September 30, 2023 and 2022 were as follows: 2023 2022 Pretax Net of Tax Pretax Net of Tax Cumulative translation adjustments $ (46) $ (76) $ (93) $ (145) Retirement plans and other retiree benefits: Net actuarial gain (loss) and prior service costs arising during the period 40 27 379 291 Amortization of net actuarial loss, transition and prior service costs (1) 7 5 9 7 Retirement plans and other retiree benefit adjustments 47 32 388 298 Cash flow hedges: Unrealized gains (losses) on cash flow hedges 3 2 (28) (23) Reclassification of (gains) losses into net earnings on cash flow hedges (2) 4 3 (4) (3) Gains (losses) on cash flow hedges 7 5 (32) (26) Total Other comprehensive income (loss) $ 8 $ (39) $ 263 $ 127 (1) These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 9, Retirement Plans and Other Retiree Benefits for additional details. (2) These (gains) losses are reclassified into Cost of sales. See Note 12, Fair Value Measurements and Financial Instruments for additional details. Additions to and reclassifications out of Accumulated other comprehensive income (loss) attributable to the Company for the nine months ended September 30, 2023 and 2022 were as follows: 2023 2022 Pretax Net of Tax Pretax Net of Tax Cumulative translation adjustments $ 60 $ 35 $ (67) $ (195) Retirement plans and other retiree benefits: Net actuarial gain (loss) and prior service costs arising during the period 40 27 379 291 Amortization of net actuarial loss, transition and prior service costs (1) 23 18 46 36 Retirement plans and other retiree benefit adjustments 63 45 425 327 Cash flow hedges: Unrealized gains (losses) on cash flow hedges 3 2 113 88 Reclassification of (gains) losses into net earnings on cash flow hedges (2) (2) (1) (15) (13) Gains (losses) on cash flow hedges 1 1 98 75 Total Other comprehensive income (loss) $ 124 $ 81 $ 456 $ 207 (1) These components of Other comprehensive income (loss) are included in the computation of total pension cost. See Note 9, Retirement Plans and Other Retiree Benefits for additional details. (2) These (gains) losses are reclassified into Cost of sales. See Note 12, Fair Value Measurements and Financial Instruments for additional details. |
Retirement Plans and Other Re_2
Retirement Plans and Other Retiree Benefits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | Components of Net periodic benefit cost for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended September 30, Pension Benefits Other Retiree Benefits United States International 2023 2022 2023 2022 2023 2022 Service cost $ — $ — $ 3 $ 2 $ 2 $ 5 Interest cost 20 16 6 8 7 11 Expected return on plan assets (20) (23) (5) (5) — — Amortization of actuarial loss (gain) 12 10 1 2 (6) (3) Net periodic benefit cost $ 12 $ 3 $ 5 $ 7 $ 3 $ 13 Other postretirement charges — (1) — — — — Total pension cost $ 12 $ 2 $ 5 $ 7 $ 3 $ 13 Nine Months Ended September 30, Pension Benefits Other Retiree Benefits United States International 2023 2022 2023 2022 2023 2022 Service cost $ — $ 1 $ 9 $ 10 $ 6 $ 16 Interest cost 68 48 22 14 29 30 Expected return on plan assets (61) (75) (14) (10) — (1) Amortization of actuarial loss (gain) 34 33 3 5 (14) 8 Net periodic benefit cost $ 41 $ 7 $ 20 $ 19 $ 21 $ 53 Other postretirement charges 4 12 — — — 1 ERISA litigation matter 267 — — — — — Total pension cost $ 312 $ 19 $ 20 $ 19 $ 21 $ 54 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales and Operating Profit by Segment | Net sales by segment were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net sales Oral, Personal and Home Care North America $ 990 $ 958 $ 2,926 $ 2,850 Latin America 1,194 997 3,447 2,970 Europe 725 632 2,053 1,925 Asia Pacific 682 709 2,084 2,131 Africa/Eurasia 266 287 822 809 Total Oral, Personal and Home Care 3,857 3,583 11,332 10,685 Pet Nutrition 1,058 872 3,175 2,653 Total Net sales $ 4,915 $ 4,455 $ 14,507 $ 13,338 The Company’s Net sales of Oral, Personal and Home Care and Pet Nutrition products accounted for the following percentages of the Company’s Net sales: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net sales Oral Care 43 % 44 % 42 % 44 % Personal Care 19 % 19 % 19 % 19 % Home Care 17 % 17 % 17 % 17 % Pet Nutrition 21 % 20 % 22 % 20 % Total Net sales 100 % 100 % 100 % 100 % Operating profit by segment was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Operating profit Oral, Personal and Home Care North America $ 231 $ 198 $ 651 $ 557 Latin America 372 289 1,050 818 Europe 162 127 412 410 Asia Pacific 193 185 564 556 Africa/Eurasia 66 66 196 160 Total Oral, Personal and Home Care 1,024 865 2,873 2,501 Pet Nutrition 201 201 575 617 Corporate (196) (119) (536) (427) Total Operating profit $ 1,029 $ 947 $ 2,912 $ 2,691 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Derivative Instruments and Other Financial Instruments | The following table summarizes the fair value of the Company’s derivative instruments and other financial instruments which are carried at fair value in the Company’s Condensed Consolidated Balance Sheets at September 30, 2023 and December 31, 2022: Assets Liabilities Fair Value Account Fair Value Designated derivative instruments September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Foreign currency contracts Other current assets $ 47 $ 19 Other accruals $ 23 $ 15 Commodity contracts Other current assets — 4 Other accruals 2 — Total designated $ 47 $ 23 $ 25 $ 15 Other financial instruments Marketable securities Other current assets $ 247 $ 175 Total other financial instruments $ 247 $ 175 |
Schedule of Notional Values | The following tables present the notional values as of: September 30, 2023 Foreign Currency Contracts Foreign Currency Debt Commodity Contracts Fair Value Hedges $ 1,404 $ — $ — $ 1,404 Cash Flow Hedges 864 — 42 906 Net Investment Hedges 409 4,137 — 4,546 December 31, 2022 Foreign Currency Contracts Foreign Currency Debt Commodity Contracts Fair Value Hedges $ 609 $ — $ — $ 609 Cash Flow Hedges 840 — 26 866 Net Investment Hedges 138 4,797 — 4,935 |
Schedule of Gains (Losses) Recognized in Statements of Income | The following tables present the location and amount of gains (losses) recognized on the Company’s Condensed Consolidated Statements of Income: Three Months Ended September 30, 2023 2022 Cost of sales Selling, general and administrative expenses Interest (income) expense, net Cost of sales Selling, general and administrative expenses Interest (income) expense, net Interest rate swaps designated as fair value hedges: Derivative instrument $ — $ — $ — $ — $ — $ (12) Hedged items — — — — — 12 Foreign currency contracts designated as fair value hedges: Derivative instrument — (17) — — 17 — Hedged items — 17 — — (17) — Foreign currency contracts designated as cash flow hedges: Amount reclassified from OCI (5) — — 4 — — Commodity contracts designated as cash flow hedges: Amount reclassified from OCI (1) — — — — — Forward-starting interest rate swaps designated as cash flow hedges: Amount reclassified from OCI — — 2 — — — Total gain (loss) on hedges recognized in income $ (6) $ — $ 2 $ 4 $ — $ — Nine Months Ended September 30, 2023 2022 Cost of sales Selling, general and administrative expenses Interest (income) expense, net Cost of sales Selling, general and administrative expenses Interest (income) expense, net Interest rate swaps designated as fair value hedges: Derivative instrument $ — $ — $ — $ — $ — $ (6) Hedged items — — — — — 6 Foreign currency contracts designated as fair value hedges: Derivative instrument — 6 — — 31 — Hedged items — (6) — — (31) — Foreign currency contracts designated as cash flow hedges: Amount reclassified from OCI (2) — — 9 — — Commodity contracts designated as cash flow hedges: Amount reclassified from OCI (1) — — 6 — — Forward-starting interest rate swaps designated as cash flow hedges: Amount reclassified from OCI — — 5 — — — Total gain (loss) on hedges recognized in income $ (3) $ — $ 5 $ 15 $ — $ — |
Schedule of Gains (Losses) Included in Other Comprehensive Income | The following table presents the location and amount of unrealized gains (losses) included in OCI: Three Months Ended September 30, 2023 2022 Foreign currency contracts designated as cash flow hedges: Gain (loss) recognized in OCI $ 5 $ 11 Forward-starting interest rate swaps designated as cash flow hedges: Gain (loss) recognized in OCI (2) (39) Commodity contracts designated as cash flow hedges: Gain (loss) recognized in OCI — — Foreign currency contracts designated as net investment hedges: Gain (loss) on instruments (37) 12 Gain (loss) on hedged items 37 (12) Foreign currency debt designated as net investment hedges: Gain (loss) on instruments 50 276 Gain (loss) on hedged items (50) (276) Total unrealized gain (loss) on hedges recognized in OCI $ 3 $ (28) Nine Months Ended September 30, 2023 2022 Foreign currency contracts designated as cash flow hedges: Gain (loss) recognized in OCI $ (4) $ 24 Forward-starting interest rate swaps designated as cash flow hedges: Gain (loss) recognized in OCI 13 85 Commodity contracts designated as cash flow hedges: Gain (loss) recognized in OCI (6) 4 Foreign currency contracts designated as net investment hedges: Gain (loss) on instruments (19) 15 Gain (loss) on hedged items 19 (15) Foreign currency debt designated as net investment hedges: Gain (loss) on instruments 90 636 Gain (loss) on hedged items (90) (636) Total unrealized gain (loss) on hedges recognized in OCI $ 3 $ 113 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions | 3 Months Ended | ||
Sep. 30, 2022 USD ($) plant | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,352 | $ 3,327 | |
Red Collar Pet Foods | |||
Business Acquisition [Line Items] | |||
Dry pet food manufacturing plants | plant | 3 | ||
Payments to acquire business | $ 719 | ||
Total purchase price | 719 | ||
Goodwill | 413 | ||
Red Collar Pet Foods | Pet Nutrition | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 413 |
Acquisitions - Schedule of Reco
Acquisitions - Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||
Goodwill | $ 3,327 | $ 3,352 |
Red Collar Pet Foods | ||
Business Acquisition [Line Items] | ||
Inventories | 33 | |
Property, plant and equipment | 362 | |
Goodwill | 413 | |
Current liabilities | (5) | |
Intangible liability | (16) | |
Deferred income taxes | (68) | |
Fair value of net assets acquired | $ 719 |
Restructuring and Related Imp_3
Restructuring and Related Implementation Charges - Narrative (Details) - Global Productivity Initiative - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total 2022 Global Productivity Initiative charges, pretax | $ 2 | $ 2 | $ 29 | $ 92 |
Total 2022 Global Productivity Initiative charges, aftertax | $ 2 | $ 2 | 23 | $ 72 |
Employee related costs include pension | $ 4 | |||
Hill's Pet Nutrition | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated cumulative pretax charges (percent) | 10% | |||
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated cumulative pretax charges (percent) | 15% | |||
North America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated cumulative pretax charges (percent) | 5% | |||
Latin America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated cumulative pretax charges (percent) | 10% | |||
Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated cumulative pretax charges (percent) | 45% | |||
Asia Pacific | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated cumulative pretax charges (percent) | 5% | |||
Africa/Eurasia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated cumulative pretax charges (percent) | 10% | |||
Employee-Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost, percentage | 80% | 80% | ||
Asset Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost, percentage | 10% | 10% | ||
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost, percentage | 10% | 10% | ||
Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring program cost before tax | $ 200 | $ 200 | ||
Restructuring program cost, after tax | $ 170 | $ 170 | ||
Minimum | Charges Resulting in Cash Expenditures | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related Cost, estimated to settle through cash, percentage | 80% | 80% | ||
Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring program cost before tax | $ 240 | $ 240 | ||
Restructuring program cost, after tax | $ 200 | $ 200 | ||
Maximum | Charges Resulting in Cash Expenditures | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related Cost, estimated to settle through cash, percentage | 90% | 90% |
Restructuring and Related Imp_4
Restructuring and Related Implementation Charges - Schedule of Restructuring and Related Costs (Details) - Global Productivity Initiative - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total 2022 Global Productivity Initiative charges, pretax | $ 2 | $ 2 | $ 29 | $ 92 |
Total 2022 Global Productivity Initiative charges, aftertax | $ 2 | $ 2 | 23 | 72 |
Gross Profit | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total 2022 Global Productivity Initiative charges, pretax | 1 | 0 | ||
Selling, general and administrative expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total 2022 Global Productivity Initiative charges, pretax | 2 | 4 | ||
Other (income) expense, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total 2022 Global Productivity Initiative charges, pretax | 22 | 75 | ||
Non-service related postretirement costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total 2022 Global Productivity Initiative charges, pretax | $ 4 | $ 13 |
Restructuring and Related Imp_5
Restructuring and Related Implementation Charges - Schedule of Restructuring Charges Incurred, by Segment (Details) - Global Productivity Initiative | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Percent of total restructuring charges related to segment | 100% | 100% |
Program-to-date Accumulated Charges | 1 | |
Hill's Pet Nutrition | ||
Restructuring Cost and Reserve [Line Items] | ||
Percent of total restructuring charges related to segment | 14% | 10% |
Program-to-date Accumulated Charges | 0.12 | |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Percent of total restructuring charges related to segment | 20% | 26% |
Program-to-date Accumulated Charges | 0.21 | |
North America | ||
Restructuring Cost and Reserve [Line Items] | ||
Percent of total restructuring charges related to segment | 14% | 11% |
Program-to-date Accumulated Charges | 0.11 | |
Latin America | ||
Restructuring Cost and Reserve [Line Items] | ||
Percent of total restructuring charges related to segment | 1% | 16% |
Program-to-date Accumulated Charges | 0.15 | |
Europe | ||
Restructuring Cost and Reserve [Line Items] | ||
Percent of total restructuring charges related to segment | 20% | 16% |
Program-to-date Accumulated Charges | 0.19 | |
Asia Pacific | ||
Restructuring Cost and Reserve [Line Items] | ||
Percent of total restructuring charges related to segment | 21% | 9% |
Program-to-date Accumulated Charges | 0.11 | |
Africa/Eurasia | ||
Restructuring Cost and Reserve [Line Items] | ||
Percent of total restructuring charges related to segment | 10% | 12% |
Program-to-date Accumulated Charges | 0.11 |
Restructuring and Related Imp_6
Restructuring and Related Implementation Charges - Schedule of Restructuring Charges, Cumulative to Date (Details) - Global Productivity Initiative $ in Millions | Sep. 30, 2023 USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the restructuring program to date | $ 139 |
Restructuring and related cost incurred cost to date after tax | 110 |
Employee-Related Costs | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the restructuring program to date | 125 |
Incremental Depreciation | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the restructuring program to date | 0 |
Asset Impairments | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the restructuring program to date | 1 |
Other | |
Restructuring Cost and Reserve [Line Items] | |
Pretax charges related to the restructuring program to date | $ 13 |
Restructuring and Related Imp_7
Restructuring and Related Implementation Charges - Schedule of Restructuring Activity and Related Accruals (Details) - Global Productivity Initiative $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance | $ 34 |
Charges | 29 |
Cash Payments | (46) |
Charges against assets | (5) |
Foreign exchange | 5 |
Balance | 17 |
Employee-Related Costs | |
Restructuring Reserve [Roll Forward] | |
Balance | 30 |
Charges | 23 |
Cash Payments | (38) |
Charges against assets | (4) |
Foreign exchange | 5 |
Balance | 16 |
Incremental Depreciation | |
Restructuring Reserve [Roll Forward] | |
Balance | 0 |
Charges | 0 |
Cash Payments | 0 |
Charges against assets | 0 |
Foreign exchange | 0 |
Balance | 0 |
Asset Impairments | |
Restructuring Reserve [Roll Forward] | |
Balance | 1 |
Charges | 0 |
Cash Payments | 0 |
Charges against assets | (1) |
Foreign exchange | 0 |
Balance | 0 |
Other | |
Restructuring Reserve [Roll Forward] | |
Balance | 3 |
Charges | 6 |
Cash Payments | (8) |
Charges against assets | 0 |
Foreign exchange | 0 |
Balance | $ 1 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories by Major Class (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Raw materials and supplies | $ 568 | $ 666 |
Work-in-process | 52 | 48 |
Finished goods | 1,414 | 1,508 |
Total Inventories, net | 2,034 | 2,222 |
Non-current inventory, net | (103) | (148) |
Current Inventories, net | $ 1,931 | $ 2,074 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net income attributable to Colgate-Palmolive Company | ||||
Basic EPS | $ 708 | $ 618 | $ 1,582 | $ 1,780 |
Diluted EPS | $ 708 | $ 618 | $ 1,582 | $ 1,780 |
Shares (millions) | ||||
Basic EPS (in shares) | 825,600,000 | 835,700,000 | 828,800,000 | 837,700,000 |
Stock options and restricted stock units (in shares) | 1,700,000 | 2,800,000 | 1,700,000 | 2,700,000 |
Diluted EPS (in shares) | 827,300,000 | 838,500,000 | 830,500,000 | 840,400,000 |
Per Share | ||||
Basic EPS (in dollars per share) | $ 0.86 | $ 0.74 | $ 1.91 | $ 2.12 |
Diluted EPS (in dollars per share) | $ 0.86 | $ 0.74 | $ 1.90 | $ 2.12 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 13,538,153 | 2,891,324 | 13,504,588 | 3,709,818 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Schedule of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total Other comprehensive income (loss), net of tax | $ (42) | $ 111 | $ 37 | $ 175 | |
Total Other comprehensive income (loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | 8 | 263 | 124 | 456 | |
Other comprehensive income (loss), pretax | 8 | 263 | 124 | 456 | |
Total Other comprehensive income (loss), net of tax | [1] | (39) | 127 | 81 | 207 |
Cumulative translation adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | (46) | (93) | 60 | (67) | |
Other comprehensive income (loss), pretax | (46) | (93) | 60 | (67) | |
Total Other comprehensive income (loss), net of tax | (76) | (145) | 35 | (195) | |
Retirement plans and other retiree benefit adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | 47 | 388 | 63 | 425 | |
Other comprehensive income (loss), before reclassifications, pretax | 40 | 379 | 40 | 379 | |
Reclassification from AOCI, pretax | 7 | 9 | 23 | 46 | |
Other comprehensive income (loss), pretax | 47 | 388 | 63 | 425 | |
Other comprehensive income (loss), before reclassifications, net of tax | 27 | 291 | 27 | 291 | |
Reclassification from AOCI, net of tax | 5 | 7 | 18 | 36 | |
Total Other comprehensive income (loss), net of tax | 32 | 298 | 45 | 327 | |
Gains (losses) on cash flow hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | 7 | (32) | 1 | 98 | |
Other comprehensive income (loss), before reclassifications, pretax | 3 | (28) | 3 | 113 | |
Reclassification from AOCI, pretax | 4 | (4) | (2) | (15) | |
Other comprehensive income (loss), pretax | 7 | (32) | 1 | 98 | |
Other comprehensive income (loss), before reclassifications, net of tax | 2 | (23) | 2 | 88 | |
Reclassification from AOCI, net of tax | 3 | (3) | (1) | (13) | |
Total Other comprehensive income (loss), net of tax | $ 5 | $ (26) | $ 1 | $ 75 | |
[1]Accumulated other comprehensive income (loss) includes cumulative translation losses of $3,458 at September 30, 2023 ($3,545 at September 30, 2022) and $3,381 at June 30, 2023 ($3,398 at June 30, 2022), respectively, and unrecognized retirement plan and other retiree benefits costs of $586 at September 30, 2023 ($717 at September 30, 2022) and $618 at June 30, 2023 ($1,015 at June 30, 2022), respectively. |
Retirement Plans and Other Re_3
Retirement Plans and Other Retiree Benefits - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Components of net periodic benefit cost | |||||
ERISA litigation matter | $ 267,000,000 | $ 0 | |||
Employee-Related Costs | Global Productivity Initiative | |||||
Components of net periodic benefit cost | |||||
Other postretirement charges | $ 0 | $ 1,000,000 | 4,000,000 | 13,000,000 | |
Other Retiree Benefits | |||||
Components of net periodic benefit cost | |||||
Service cost | 2,000,000 | 5,000,000 | 6,000,000 | 16,000,000 | |
Interest cost | 7,000,000 | 11,000,000 | 29,000,000 | 30,000,000 | |
Expected return on plan assets | 0 | 0 | 0 | (1,000,000) | |
Amortization of actuarial loss (gain) | (6,000,000) | (3,000,000) | (14,000,000) | 8,000,000 | |
Net periodic benefit cost | 3,000,000 | 13,000,000 | 21,000,000 | 53,000,000 | |
Other postretirement charges | 0 | 0 | 0 | 1,000,000 | |
ERISA litigation matter | 0 | 0 | |||
Total pension cost | 3,000,000 | 13,000,000 | 21,000,000 | 54,000,000 | |
International | Pension Benefits | |||||
Components of net periodic benefit cost | |||||
Service cost | 3,000,000 | 2,000,000 | 9,000,000 | 10,000,000 | |
Interest cost | 6,000,000 | 8,000,000 | 22,000,000 | 14,000,000 | |
Expected return on plan assets | (5,000,000) | (5,000,000) | (14,000,000) | (10,000,000) | |
Amortization of actuarial loss (gain) | 1,000,000 | 2,000,000 | 3,000,000 | 5,000,000 | |
Net periodic benefit cost | 5,000,000 | 7,000,000 | 20,000,000 | 19,000,000 | |
Other postretirement charges | 0 | 0 | 0 | 0 | |
ERISA litigation matter | 0 | 0 | |||
Total pension cost | 5,000,000 | 7,000,000 | 20,000,000 | 19,000,000 | |
United States | |||||
Components of net periodic benefit cost | |||||
Amortization of actuarial loss (gain) | (398,000,000) | ||||
United States | Pension Benefits | |||||
Components of net periodic benefit cost | |||||
Service cost | 0 | 0 | 0 | 1,000,000 | |
Interest cost | 20,000,000 | 16,000,000 | 68,000,000 | 48,000,000 | |
Expected return on plan assets | (20,000,000) | (23,000,000) | (61,000,000) | (75,000,000) | |
Amortization of actuarial loss (gain) | 12,000,000 | 10,000,000 | 34,000,000 | 33,000,000 | |
Net periodic benefit cost | 12,000,000 | 3,000,000 | 41,000,000 | 7,000,000 | |
Other postretirement charges | 0 | (1,000,000) | 4,000,000 | 12,000,000 | |
ERISA litigation matter | $ 267,000,000 | 267,000,000 | 0 | ||
Total pension cost | 12,000,000 | 2,000,000 | 312,000,000 | 19,000,000 | |
Voluntary benefit plan contribution | $ 0 | $ 0 | $ 0 | $ 0 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Apr. 30, 2019 USD ($) | Sep. 30, 2023 USD ($) case country_and_territory | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) case country_and_territory | Sep. 30, 2022 USD ($) | Jun. 30, 2023 case | Dec. 31, 2022 case | Jul. 31, 2017 USD ($) | Dec. 31, 2005 USD ($) | |
Loss Contingencies [Line Items] | |||||||||
Number of countries in which entity operates (more than) | country_and_territory | 200 | 200 | |||||||
Brazilian internal revenue authority, matter 1 | $ 128 | $ 128 | |||||||
Loss contingency, number of cases pending in lower federal count | case | 3 | ||||||||
Loss contingency, number of cases on appeal | case | 2 | ||||||||
Brazilian internal revenue authority, matter 2 | $ 56 | ||||||||
Fine imposed by Greek competition authority | $ 11 | ||||||||
Increase (decrease) in fine imposed by Greek competition authority | $ 10.5 | ||||||||
Loss contingency, pending claims, number (in cases) | case | 271 | 271 | 251 | 227 | |||||
Loss contingency, new claims filed, number (in cases) | case | 33 | 136 | |||||||
Loss contingency, claims dismissed or settled, number (in cases) | case | 13 | 92 | |||||||
ERISA litigation matter | $ 267 | $ 0 | |||||||
United States | Pension Benefits | |||||||||
Loss Contingencies [Line Items] | |||||||||
ERISA litigation matter | $ 267 | 267 | $ 0 | ||||||
Minimum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Range of reasonably possible losses | $ 0 | 0 | |||||||
Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Range of reasonably possible losses | $ 250 | $ 250 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of product segments (in segments) | segment | 2 | |||
Number of operating segments (in segments) | segment | 5 | |||
Gain (loss) on sale of land | $ 0 | $ 47 | ||
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Gain (loss) on sale of land | $ 47 | 47 | ||
Corporate | Included in Operating profit (loss) | Global Productivity Initiative | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring costs | $ 2 | 3 | 25 | 79 |
Corporate | Included in Operating profit (loss) | Product Recall Cost | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring costs | $ 25 | |||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition related costs | $ 17 | $ 17 | ||
Net Sales | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of consolidated Net sales coming from emerging markets | 45% | 45% | ||
Percentage of consolidated Net sales represented by sales outside US | 66.67% | 66.67% |
Segment Information - Schedule
Segment Information - Schedule of Net Sales and Operating Profit by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total Net sales | $ 4,915 | $ 4,455 | $ 14,507 | $ 13,338 |
Operating profit (loss) | $ 1,029 | $ 947 | $ 2,912 | $ 2,691 |
Product Concentration Risk | Net Sales | ||||
Segment Reporting Information [Line Items] | ||||
Percent of net sales | 100% | 100% | 100% | 100% |
Product Concentration Risk | Net Sales | Oral Care | ||||
Segment Reporting Information [Line Items] | ||||
Percent of net sales | 43% | 44% | 42% | 44% |
Product Concentration Risk | Net Sales | Personal Care | ||||
Segment Reporting Information [Line Items] | ||||
Percent of net sales | 19% | 19% | 19% | 19% |
Product Concentration Risk | Net Sales | Home Care | ||||
Segment Reporting Information [Line Items] | ||||
Percent of net sales | 17% | 17% | 17% | 17% |
Product Concentration Risk | Net Sales | Pet Nutrition | ||||
Segment Reporting Information [Line Items] | ||||
Percent of net sales | 21% | 20% | 22% | 20% |
Operating Segments | Oral, Personal and Home Care | ||||
Segment Reporting Information [Line Items] | ||||
Total Net sales | $ 3,857 | $ 3,583 | $ 11,332 | $ 10,685 |
Operating profit (loss) | 1,024 | 865 | 2,873 | 2,501 |
Operating Segments | Pet Nutrition | ||||
Segment Reporting Information [Line Items] | ||||
Total Net sales | 1,058 | 872 | 3,175 | 2,653 |
Operating profit (loss) | 201 | 201 | 575 | 617 |
Operating Segments | North America | Oral, Personal and Home Care | ||||
Segment Reporting Information [Line Items] | ||||
Total Net sales | 990 | 958 | 2,926 | 2,850 |
Operating profit (loss) | 231 | 198 | 651 | 557 |
Operating Segments | Latin America | Oral, Personal and Home Care | ||||
Segment Reporting Information [Line Items] | ||||
Total Net sales | 1,194 | 997 | 3,447 | 2,970 |
Operating profit (loss) | 372 | 289 | 1,050 | 818 |
Operating Segments | Europe | Oral, Personal and Home Care | ||||
Segment Reporting Information [Line Items] | ||||
Total Net sales | 725 | 632 | 2,053 | 1,925 |
Operating profit (loss) | 162 | 127 | 412 | 410 |
Operating Segments | Asia Pacific | Oral, Personal and Home Care | ||||
Segment Reporting Information [Line Items] | ||||
Total Net sales | 682 | 709 | 2,084 | 2,131 |
Operating profit (loss) | 193 | 185 | 564 | 556 |
Operating Segments | Africa/Eurasia | Oral, Personal and Home Care | ||||
Segment Reporting Information [Line Items] | ||||
Total Net sales | 266 | 287 | 822 | 809 |
Operating profit (loss) | 66 | 66 | 196 | 160 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit (loss) | $ (196) | $ (119) | $ (536) | $ (427) |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments - Narrative (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Aug. 31, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Derivative, term of contract | 12 months | |||
Three year notes at 3.1 percent | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt instrument, term | 3 years | |||
Debt instrument, interest rate (percentage) | 3.10% | |||
Five year notes at 3.1 percent | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt instrument, term | 5 years | |||
Debt instrument, interest rate (percentage) | 3.10% | |||
Ten year notes at 3.25 percent | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt instrument, term | 10 years | |||
Debt instrument, interest rate (percentage) | 3.25% | |||
Three-year Bonds at 4.80% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt instrument, term | 3 years | |||
Bonds at 4.80% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (percentage) | 4.80% | |||
Five-year Bonds at 4.60% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt instrument, term | 5 years | |||
Bonds at 4.60% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate (percentage) | 4.60% | |||
Ten-year Bonds at 4.60% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt instrument, term | 10 years | |||
Carrying Value | ||||
Debt Instrument [Line Items] | ||||
Carrying value of long-term debt | $ 8,706,000,000 | $ 8,755,000,000 | ||
Fair Value, Inputs, Level 2 | ||||
Debt Instrument [Line Items] | ||||
Estimated fair value of long-term debt | $ 8,000,000,000 | $ 8,184,000,000 |
Fair Value Measurements and F_4
Fair Value Measurements and Financial Instruments - Schedule of Fair Value of Derivative Instruments and Other Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Designated derivative instruments | ||
Derivative assets | $ 47 | $ 23 |
Derivative liabilities | $ 25 | $ 15 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | Other current assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other accruals | Other accruals |
Other financial instruments | ||
Total other financial instruments | $ 247 | $ 175 |
Foreign currency contracts | ||
Designated derivative instruments | ||
Derivative assets | 47 | 19 |
Derivative liabilities | 23 | 15 |
Commodity contracts | ||
Designated derivative instruments | ||
Derivative assets | 0 | 4 |
Derivative liabilities | 2 | 0 |
Other current assets | ||
Other financial instruments | ||
Marketable securities | $ 247 | $ 175 |
Fair Value Measurements and F_5
Fair Value Measurements and Financial Instruments - Schedule of Notional Values (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional values | $ 1,404 | $ 609 |
Fair Value Hedges | Foreign Currency Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional values | 1,404 | 609 |
Fair Value Hedges | Foreign Currency Debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional values | 0 | 0 |
Fair Value Hedges | Commodity Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional values | 0 | 0 |
Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional values | 906 | 866 |
Cash Flow Hedges | Foreign Currency Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional values | 864 | 840 |
Cash Flow Hedges | Foreign Currency Debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional values | 0 | 0 |
Cash Flow Hedges | Commodity Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional values | 42 | 26 |
Net Investment Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional values | 4,546 | 4,935 |
Net Investment Hedges | Foreign Currency Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional values | 409 | 138 |
Net Investment Hedges | Foreign Currency Debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional values | 4,137 | 4,797 |
Net Investment Hedges | Commodity Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional values | $ 0 | $ 0 |
Fair Value Measurements and F_6
Fair Value Measurements and Financial Instruments - Schedule of Gain (Loss) on Hedges Recognized in Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) on hedges recognized in income | $ (6) | $ 4 | $ (3) | $ 15 |
Cost of sales | Interest Rate Swaps | Fair Value Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instrument | 0 | 0 | 0 | 0 |
Gain (loss) on hedged items | 0 | 0 | 0 | 0 |
Cost of sales | Foreign Currency Contracts | Fair Value Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instrument | 0 | 0 | 0 | 0 |
Gain (loss) on hedged items | 0 | 0 | 0 | 0 |
Cost of sales | Foreign Currency Contracts | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from OCI | (5) | 4 | (2) | 9 |
Cost of sales | Commodity contracts | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from OCI | (1) | 0 | (1) | 6 |
Cost of sales | Forward-starting interest rate swaps | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from OCI | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) on hedges recognized in income | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | Interest Rate Swaps | Fair Value Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instrument | 0 | 0 | 0 | 0 |
Gain (loss) on hedged items | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | Foreign Currency Contracts | Fair Value Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instrument | (17) | 17 | 6 | 31 |
Gain (loss) on hedged items | 17 | (17) | (6) | (31) |
Selling, general and administrative expenses | Foreign Currency Contracts | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from OCI | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | Commodity contracts | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from OCI | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | Forward-starting interest rate swaps | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from OCI | 0 | 0 | 0 | 0 |
Interest (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) on hedges recognized in income | 2 | 0 | 5 | 0 |
Interest (income) expense, net | Interest Rate Swaps | Fair Value Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instrument | 0 | (12) | 0 | (6) |
Gain (loss) on hedged items | 0 | 12 | 0 | 6 |
Interest (income) expense, net | Foreign Currency Contracts | Fair Value Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instrument | 0 | 0 | 0 | 0 |
Gain (loss) on hedged items | 0 | 0 | 0 | 0 |
Interest (income) expense, net | Foreign Currency Contracts | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from OCI | 0 | 0 | 0 | 0 |
Interest (income) expense, net | Commodity contracts | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from OCI | 0 | 0 | 0 | 0 |
Interest (income) expense, net | Forward-starting interest rate swaps | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount reclassified from OCI | $ 2 | $ 0 | $ 5 | $ 0 |
Fair Value Measurements and F_7
Fair Value Measurements and Financial Instruments - Schedule of Gain (Loss) Included in OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flow hedges [Abstract] | ||||
Gain (loss) recognized in OCI | $ 3 | $ (28) | $ 3 | $ 113 |
Foreign Currency Contracts | ||||
Cash flow hedges [Abstract] | ||||
Gain (loss) recognized in OCI | 5 | 11 | (4) | 24 |
Net investment hedges [Abstract] | ||||
Gain (loss) on instruments | (37) | 12 | (19) | 15 |
Gain (loss) on hedged items | 37 | (12) | 19 | (15) |
Forward-starting interest rate swaps | ||||
Cash flow hedges [Abstract] | ||||
Gain (loss) recognized in OCI | (2) | (39) | 13 | 85 |
Commodity Contracts | ||||
Cash flow hedges [Abstract] | ||||
Gain (loss) recognized in OCI | 0 | 0 | (6) | 4 |
Foreign Currency Debt | ||||
Net investment hedges [Abstract] | ||||
Gain (loss) on instruments | 50 | 276 | 90 | 636 |
Gain (loss) on hedged items | $ (50) | $ (276) | $ (90) | $ (636) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate (percent) | 21.90% | 23.50% | |||
Effective income tax rate, full year (percent) | 23.70% | 23.80% | |||
Cumulative effect of change in tax position | $ 148 | ||||
Withholding tax reserves, prior year reversals | $ 22 | ||||
Estimated tax plus interest | $ 145 |