Colgate-Palmolive (CL) 10-Q 30 Jul 09 2009 Q2 Quarterly report Financial data

100 - Condensed Consolidated St

100 - Condensed Consolidated Statements of Income (USD $)
In Millions	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Net sales	$3,745	3964.8	7247.8	7677.8
Cost of sales	1543.8	1,725	3034.2	3338.2
Gross profit	2201.2	2239.8	4213.6	4339.6
Selling, general and administrative expenses	1295.7	1422.7	2481.4	2771.6
Other (income) expense, net	18.4	28.7	33.7	33.9
Operating profit	887.1	788.4	1698.5	1534.1
Interest expense, net	21.5	25.4	42.7	59.1
Income before income taxes	865.6	763	1655.8	1,475
Provision for income taxes	277.8	247.8	531.5	471.3
Net income including noncontrolling interests	587.8	515.2	1124.3	1003.7
Less: Net income attributable to noncontrolling interests	26.2	21.4	54.8	43.4
Net income	561.6	493.8	1069.5	960.3
Earnings per common share, basic	1.11	0.96	2.11	1.86
Earnings per common share, diluted	1.07	0.92	2.04	1.78
Dividends declared per common share	0	0	0.84	0.76

200 - Condensed Consolidated Ba

200 - Condensed Consolidated Balance Sheets (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
Assets
Cash and cash equivalents	$896	554.9
Receivables (net of allowances of $49.8 and $47.4, respectively)	1727.8	1591.9
Inventories	1223.8	1197.1
Other current assets	370.2	366.1
Total current assets	4217.8	3,710
Property, plant and equipment:
Cost	6251.6	5937.1
Less: Accumulated depreciation	-3006.2	-2817.6
Property, plant and equipment, net	3245.4	3119.5
Goodwill, net	2209.1	2,152
Other intangible assets, net	818.2	833.5
Other assets	239.6	164.3
Total assets	10730.1	9979.3
Liabilities
Notes and loans payable	86.5	107.2
Current portion of long-term debt	347.4	91
Accounts payable	1,038	1061.4
Accrued income taxes	254.5	272.4
Other accruals	1513.8	1421.3
Total current liabilities	3240.2	2953.3
Long-term debt	3367.9	3585.3
Deferred income taxes	127.9	81.9
Other liabilities	1295.1	1315.5
Total shareholders' equity
Preference stock	173.9	181
Common stock	732.9	732.9
Additional paid-in capital	1643.8	1609.7
Retained earnings	12392.4	11759.5
Accumulated other comprehensive income (loss)	-2277.7	-2477.3
Unearned compensation	-160.9	(187)
Treasury stock, at cost	-9964.1	-9696.7
Total Colgate-Palmolive Company shareholders’ equity	2540.3	1922.1
Noncontrolling interests	158.7	121.2
Total shareholders’ equity	2,699	2043.3
Total liabilities and shareholders’ equity	10730.1	9979.3

210 - Parenthetical Information

210 - Parenthetical Information for Condensed Consolidated Balance Sheet (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
Parenthetical Information
Allowance for receivables	49.8	47.4

300 - Condensed Consolidated St

300 - Condensed Consolidated Statements of Cash Flows (USD $)
In Millions	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Operating Activities
Net income	1069.5	960.3
Adjustments to reconcile net income to net cash provided by operations:
Restructuring, net of cash	(9)	-47.1
Depreciation and amortization	172.1	172.4
Stock-based compensation expense	55.7	42.7
Deferred income taxes	33.9	67
Cash effects of changes in:
Receivables	-86.1	-132.5
Inventories	1.8	-135.2
Accounts payable and other accruals	-61.6	59.8
Other non-current assets and liabilities	34.4	49
Net cash provided by operations	1210.7	1036.4
Investing Activities
Capital expenditures	-210.1	-216.7
Sale of property and non-core product lines	12.4	44.9
Other	(19)	0.8
Net cash used in investing activities	-216.7	(171)
Financing Activities
Principal payments on debt	-1514.9	-1380.8
Proceeds from issuance of debt	1607.8	1542.9
Dividends Paid	-454.1	-409.7
Purchases of treasury shares	-395.7	(542)
Proceeds from exercise of stock options and excess tax benefits	92.1	117.1
Net cash used in financing activities	-664.8	-672.5
Effect of exchange rate changes on Cash and cash equivalents	11.9	1.2
Net increase in Cash and cash equivalents	341.1	194.1
Cash and cash equivalents at beginning of period	554.9	428.7
Cash and cash equivalents at end of period	896	622.8
Supplemental Cash Flow Information
Income taxes paid	582.1	$399

400 - Basis of Presentation

400 - Basis of Presentation
	6 Months Ended Jun. 30, 2009
Basis of Presentation
Basis of Presentation	The Condensed Consolidated Financial Statements reflect all normal recurring adjustments which, in managements 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. Certain prior year amounts have been reclassified to conform to the current year presentation.The Company adopted Financial Accounting Standards Board (FASB) Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements - An Amendment of ARB No. 51 (SFAS 160), on January 1, 2009.To conform to the current years presentation, net income attributable to noncontrolling interests in less-than-wholly owned subsidiaries has been reclassified from Other (income) expense, net to a new line below Operating profit called Net income attributable to noncontrolling interests.The reclassification had no effect on Net income or Earnings per common share. Additionally, prior period balances of accumulated undistributed earnings relating to noncontrolling interests in less-than-wholly owned subsidiaries have been reclassified from Other liabilities to a component of Shareholders Equity.For further information regarding the impact of these reclassifications on segments, refer to Note 10. Refer to the Annual Report on Form 10-K of Colgate-Palmolive Company (together with its subsidiaries, the Company or Colgate) for the year ended December 31, 2008, filed with the Securities and Exchange Commission, for a complete set of financial notes including the Companys significant accounting policies.

410 - Use of Estimates

410 - Use of Estimates
	6 Months Ended Jun. 30, 2009
Use of Estimates
Use of Estimates	Provision for certain expenses, including income taxes, media 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.There have been no material events subsequent to the balance sheet date through July 30, 2009, the filing date of this report, that would have affected these estimates.

420 - Recently Issued Accountin

420 - Recently Issued Accounting Pronouncements
	6 Months Ended Jun. 30, 2009
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements	In December 2008, the FASB issued FASB Staff Position (FSP) No. FAS 132(R)-1, Employers Disclosures about Postretirement Benefit Plan Assets (FSP FAS 132(R)-1). FSP FAS 132(R)-1 amends FASB Statement No. 132 (revised 2003), Employers Disclosures about Pensions and Other Postretirement Benefits, to provide guidance on an employers disclosures about plan assets of a defined benefit pension or other postretirement plan. FSP FAS 132(R)-1 requires an employer to disclose information on the investment policies and strategies as well as on the significant concentrations of risk in plan assets. An employer must also disclose the fair value of each major category of plan assets as of each annual reporting date together with the information on the inputs and valuation techniques used to develop such fair value measurements. FSP FAS 132(R)-1 will be effective for the Companys financial statements as of December 31, 2009 and will have no impact on the Companys financial position or results of operations.

430 - Inventories

430 - Inventories
	6 Months Ended Jun. 30, 2009
Inventories
Inventories	Inventories by major class are as follows: June30, 2009 December31, 2008 Raw materials and supplies $ 292.6 $ 297.0 Work-in-process 49.0 41.5 Finished goods 882.2 858.6 Total Inventories $ 1,223.8 $ 1,197.1

440 - Comprehensive Income

440 - Comprehensive Income
	6 Months Ended Jun. 30, 2009
Comprehensive Income
Comprehensive Income	The following are components of comprehensive income: Three Months Ended Six Months Ended June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008 Net income $ 561.6 $ 493.8 $ 1,069.5 $ 960.3 Other comprehensive income (loss) Foreign currency translation adjustments 277.9 97.1 166.6 191.4 Unrecognized pension and other retiree benefit cost adjustments 10.8 3.3 21.7 8.5 Gains (losses) on cash flow hedges (0.3 ) 17.9 11.3 1.7 Other - (5.3 ) - (4.7 ) Total comprehensive income $ 850.0 $ 606.8 $ 1,269.1 $ 1,157.2 Accumulated other comprehensive income (loss), as reflected in the Condensed Consolidated Balance Sheets, primarily consists of cumulative foreign currency translation adjustments and unrecognized pension and other retiree benefit costs.

450 - Earnings Per Share

450 - Earnings Per Share
	6 Months Ended Jun. 30, 2009
Earnings Per Share
Earnings Per Share	Three Months Ended June 30, 2009 June 30, 2008 Income Shares Per Share Income Shares Per Share Net income $ 561.6 $ 493.8 Preferred dividends (7.3 ) (6.9 ) Basic EPS 554.3 500.1 $ 1.11 486.9 507.1 $ 0.96 Stock options and restricted stock 3.3 6.4 Convertible preference stock 7.3 21.5 6.9 23.1 Diluted EPS $ 561.6 524.9 $ 1.07 $ 493.8 536.6 $ 0.92 Six Months Ended June 30, 2009 June 30, 2008 Income Shares Per Share Income Shares Per Share Net income $ 1,069.5 $ 960.3 Preferred dividends (14.8 ) (14.1 ) Basic EPS 1,054.7 500.8 $ 2.11 946.2 508.1 $ 1.86 Stock options and restricted stock 2.9 6.5 Convertible preference stock 14.8 21.7 14.1 23.4 Diluted EPS $ 1,069.5 525.4 $ 2.04 $ 960.3 538.0 $ 1.78

460 - Restructuring And Related

460 - Restructuring And Related Implementation Charges
	6 Months Ended Jun. 30, 2009
Restructuring and Related Implementation Charges
Restructuring and Related Implementation Charges	The Companys four-year restructuring and business-building program (the 2004 Restructuring Program) to enhance the Companys global leadership position in its core businesses was finalized as of December 31, 2008 and there were no charges incurred in the first half of 2009.The restructuring accrual decreased from $32.7 at December 31, 2008 to $23.7 at June 30, 2009 primarily due to cash payments for termination benefits, exit activities and the implementation of new strategies. For the three and six months ended June 30, 2008 restructuring and implementation-related charges are reflected in the income statement as follows: Three Months Ended June 30, Six Months Ended June 30, 2008 2008 Cost of sales $ 11.0 $ 36.9 Selling, general and administrative expenses 20.7 33.9 Other (income) expense, net 7.2 6.5 Total 2004 Restructuring Program charges, pretax $ 38.9 $ 77.3 Total 2004 Restructuring Program charges, aftertax $ 29.5 $ 50.7 Restructuring and implementation-related charges in the preceding table were recorded in the Corporate segment as these decisions were predominantly centrally directed and controlled and were not included in internal measures of segment operating performance. Charges for the three months ended June 30, 2008 relate to the 2004 Restructuring Program in North America (41%), Europe/South Pacific (7%), Latin America (1%), Greater Asia/Africa (22%), Pet Nutrition (1%) and Corporate (28%). Charges for the six months ended June 30, 2008 relate to the 2004 Restructuring Program in North America (36%), Europe/SouthPacific (17%), Latin America (1%), Greater Asia/Africa (12%), Pet Nutrition (7%) and Corporate (27%).

470 - Retirement Plans and Othe

470 - Retirement Plans and Other Retiree Benefits
	6 Months Ended Jun. 30, 2009
Retirement Plans and Other Retiree Benefits
Retirement Plans and Other Retiree Benefits	Components of net periodic benefit cost for the three and six months ended June 30, 2009 and 2008 were as follows: Pension Benefits Other Retiree Benefits United States International Three Months Ended June 30, 2009 2008 2009 2008 2009 2008 Service cost $ 11.0 $ 10.2 $ 4.0 $ 7.5 $ 3.3 $ 2.5 Interest cost 23.9 23.9 8.9 11.8 9.3 8.0 Annual ESOP allocation - - - - (2.0 ) (2.1 ) Expected return on plan assets (22.8 ) (28.5 ) (5.8 ) (12.3 ) (0.5 ) (0.6 ) Amortization of transition prior service costs (credits) 0.9 0.9 0.1 0.3 0.1 (0.1 ) Amortization of actuarial loss 11.3 1.8 1.2 0.5 3.2 2.2 Net periodic benefit cost $ 24.3 $ 8.3 $ 8.4 $ 7.8 $ 13.4 $ 9.9 Pension Benefits Other Retiree Benefits United States International Six Months Ended June 30, 2009 2008 2009 2008 2009 2008 Service cost $ 22.3 $ 20.2 $ 7.8 $ 12.1 $ 6.6 $ 5.2 Interest cost 48.1 47.4 17.0 21.2 18.2 17.0 Annual ESOP allocation - - - - (4.0 ) (4.5 ) Expected return on plan assets (45.5 ) (57.0 ) (11.0 ) (19.6 ) (1.0 ) (1.3 ) Amortization of transition prior service costs (credits) 1.9 1.8 0.5 0.5 - (0.1 ) Amortization of actuarial loss 22.9 3.1 2.5 1.4 6.5 4.5 Net periodic benefit cost $ 49.7 $ 15.5 $ 16.8 $ 15.6 $ 26.3 $ 20.8

480 - Contingencies

480 - Contingencies
	6 Months Ended Jun. 30, 2009
Contingencies
Contingencies	The Company is contingently liable with respect to lawsuits, environmental matters, taxes and other matters arising in the normal course of business. Management proactively reviews and monitors the Companys 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. In June 2009, a Consent Decree was entered by the United States District Court for the District of New Jersey with respect to a superfund site associated with a prior acquisition, which accounted for the majority of the Companys potential liability for environmental matters.Substantially all of the Companys liability with respect to that site was covered by the Companys insurance carriers, which have made all their required payments. As a matter of course, the Company is regularly audited by the IRS and other tax authorities around the world in countries where it conducts business. In this regard, the IRS has completed its examination of the Companys federal income tax returns through 2005. The amount of additional tax involved as a result of assessments arising from the IRS examination did not have a material impact on the financial position, results of operations or cash flows of the Company.Estimated incremental tax payments related to potential disallowances for subsequent periods are insignificant. In December 2006, a subsidiary of the Company received an income tax assessment from the Mexican tax authorities for the year 1999 totaling approximately $164, at the current exchange rate, including interest and penalties, challenging the transfer pricing on transactions between that subsidiary and another of the Companys subsidiaries located in the United States. In April 2008, the same subsidiary of the Company received a similar income tax assessment from the Mexican tax authorities for the years 2000 and 2001 totaling approximately $599, at the current exchange rate, including interest and penalties. The Company, through its subsidiary, requested and received in 1999 a written advance ruling from the Mexican tax authorities for income tax matters on which the Company relied in subsequently claiming on its returns the income tax treatment to which these assessments relate. Although the Company believes, based on the advice of outside counsel, that its income tax filings are in full compliance with the written advance ruling and applicable tax law and regulations, in June 2009, the Company entered into a settlement agreement with the Mexican tax authorities which resolves the transfer pricing disputes for the years 1999-2001, as well as any potential disputes which could arise for 2002-2007. As part of the settlement, the Mexican tax authorities withdrew the assessments of tax and interest for the years 1999-2001 and the Company made a payment of tax and interest related to the years 2002-2007. The net impact of the settlement is not material and approximates reserves previously taken by the Company for this matter. In 2001, the Central Bank of Brazil sought to impose a substantial fine on th

490 - Segment Information

490 - Segment Information
	6 Months Ended Jun. 30, 2009
Segment Information
Segment Information	The Company evaluates segment performance based on several factors, including Operating profit.The Company uses Operating profit as a measure of the operating segment performance because it excludes the impact of corporate-driven decisions related to interest expense and income taxes. Corporate operations include restructuring and related implementation costs, stock-based compensation related to stock options and restricted stock awards, research and development costs, Corporate overhead costs, 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 in order to measure the underlying performance of the business segments. The Company adopted FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements - An Amendment of ARB No. 51 (SFAS 160), on January 1, 2009.To conform to the current years presentation, the amounts of Net income attributable to noncontrolling interests in less-than-wholly owned subsidiaries of $21.4and $43.4 for the three and six months ended June 30, 2008, respectively, which were previously deducted from Greater Asia/Africa Operating profit, have been reclassified to a new line below Operating profit. Net sales and Operating profit by segment were as follows: Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 Net sales Oral, Personal and Home Care North America $ 734.4 $ 715.1 $ 1,464.1 $ 1,424.6 Latin America 1,050.0 1,065.1 1,961.0 2,010.6 Europe/South Pacific 790.5 966.7 1,509.6 1,866.7 Greater Asia/Africa 640.2 670.4 1,276.8 1,325.2 Total Oral, Personal and Home Care 3,215.1 3,417.3 6,211.5 6,627.1 Pet Nutrition 529.9 547.5 1,036.3 1,050.7 Total Net sales $ 3,745.0 $ 3,964.8 $ 7,247.8 $ 7,677.8 Operating profit Oral, Personal and Home Care North America $ 199.5 $ 169.8 $ 391.1 $ 333.9 Latin America 334.9 294.5 641.1 574.5 Europe/South Pacific 177.2 202.1 320.3 394.5 Greater Asia/Africa 144.8 126.5 296.4 254.2 Total Oral, Personal and Home Care 856.4 792.9 1,648.9 1,557.1 Pet Nutrition 139.4 129.9 271.1 257.3 Corporate (108.7 ) (134.4 ) (221.5 ) (280.3 ) Total Operating profit $ 887.1 $ 788.4 $ 1,698.5 $ 1,534.1

500 - Fair Value Measurements a

500 - Fair Value Measurements and Financial Instrument
	6 Months Ended Jun. 30, 2009
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 credit loss in the event of nonperformance by counterparties to financial instrument contracts; however, nonperformance is considered unlikely as it is the Companys policy to contract with highly rated diverse counterparties. Derivative Instruments The Companys derivative instruments include interest rate swap contracts, 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). Foreign currency contracts consist of forward and swap contracts utilized to hedge a portion of the Companys foreign currency purchases, assets and liabilities created in the normal course of business as well as the net investment in certain foreign subsidiaries. These contracts are valued using observable forward rates (Level 2 valuation). Commodity contracts are utilized to hedge the purchases of raw materials used in the Companys operations. These contracts are measured using quoted commodity exchange prices (Level 1 valuation). The duration of foreign currency and commodity contracts generally does not exceed 18 months. It is the Companys policy to enter into derivative instrument contracts with terms that match the underlying exposure being hedged. As such, the Companys derivative instruments are considered highly effective. Hedge ineffectiveness, if any, is not material for any period presented. Financial Statement Classification The Company holds derivative instruments that are designated as hedging instruments as well as certain instruments not so designated.The following table discloses the fair value as of June 30, 2009 for both types of derivative instruments: Asset Derivatives Liability Derivatives Account Fair Value Account Fair Value Designated derivative instruments Interest rate swap contracts Other assets $ 13.0 Other liabilities $ - Foreign currency contracts Other current assets 13.5 Other accruals 29.8 Commodity contracts Other current assets 0.5 Other accruals - Total designated $ 27.0 $ 29.8 Derivatives not designated Foreign currency contracts Other current assets $ 0.7 Other accruals $ - Total not designated $ 0.7 $ - Total $ 27.7 $ 29.8 Derivatives not designated as hedging instruments consists of a cross-currency swap which serves as an economic hedge of a foreign currency deposit.The cross-currency swap outstanding at the previous balance sheet date was settled during the quarter, resulting in a realized gain of $20.8. A new cross-currency swap with similar terms and an underlying foreign currency deposit was entered into during June 2009.The n

Document Information

Document Information
	6 Months Ended Jun. 30, 2009
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	2009-06-30
Amendment Flag	false

Entity Information

Entity Information (USD $)
In Billions, except Share data	6 Months Ended Jun. 30, 2009	Jun. 30, 2008
Entity Information [Line Items]
Entity Registrant Name	Colgate
Entity Central Index Key	0000021665
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$34
Entity Common Stock, Shares Outstanding	498,427,355